16 February 2009
Private home sales down in January but more units launched
By Wong Siew Ying/ Ng Baoying, Channel NewsAsia

SINGAPORE: Private home sales further slowed in January, according to
the latest Urban Redevelopment Authority (URA) figures. Some 107
deals were completed last month, compared to 131 in December.

Property agents said this was the lowest level recorded in the last
two years - even lower than last October when global stock markets
slumped.

Even so, developers placed more projects on the market, with 204
units released in January. This was slightly higher than the 157
private homes released a month earlier, which had been the lowest
level since June 2007.

Despite these gloomy numbers, real estate agency Propnex Realty
expects a brighter February. The firm said this is because there has
been good take-up from some recent launches this month.

For instance, the new developments Alexis and Caspian had enjoyed
strong take-up with over 750 units sold.

CEO of PropNex Realty, Mohamed Ismail, said: "February has been a
good month and is likely to post a record number of transactions, far
exceeding the peak of last year - close to 800 over units." This will
be about eight times the number sold in January.

According to property consultant Colliers, potential buyers would
have been waiting for the Budget announcement before making any
purchase, and were also occupied with preparing for the Lunar New
Year.

But while sales were seen picking up, analysts said one trend would
likely persist throughout the year.

Director of consultancy and research at Knight Frank, Nicholas Mak,
said: "Most units launched and sold by developers last month were in
the suburban areas. Launch and sales activities by developers in the
prime district almost came to a halt. Less than 10 units were
transacted."

Mohamed Ismail said: "The appetite for many consumers today is when
the property price, the overall quantum is less than S$800,000. There
are many people willing to buy.

"Not only from the perspective of consumers, even financial
institutions and the banks are very comfortable to lend to people for
property that are below a million because the risk and spread for the
bank is so much better."

Thus analysts expect most upcoming launches to fall under this
category. They said developers may ride the new wave of sales and
launch more units in the second half of February.

They said as many as 1,000 units may be launched next month, a level
not seen since July 2008.

And to support sales, analysts said that going forward, developers
are likely to work with banks on financing schemes. For example, two
recent developments launched - Alexis and Caspian - have interest-
absorption schemes.

16 February 2009
Residential rentals set to slide further as companies cut costs
By Wong Siew Ying, Channel NewsAsia

SINGAPORE: Market watchers expect private home rentals in Singapore
to slide a further 5 per cent in the first quarter of this year.

That is partly due to falling numbers of expatriate staff based in
the city state and lower housing budgets allocated to them.

Singapore plays home to many foreigners working here. But the numbers
could fall as firms cut costs to cope with the global recession.

Real estate agency ERA told Channel NewsAsia that its corporate
clients have been affected by the downturn.

Eugene Lim, associate director of ERA Asia Pacific, said: "... about
20 per cent of the corporate leases that we have are actually looking
for some replacement tenants, because these rentals were signed last
year and now that the expats are leaving, they are still locked in
the tenancy period."

There are worries that the movement of staff out of Singapore could
destablise the rental market.

Nicholas Mak, Knight Frank's director for consultancy & research,
said: "If there is a huge outflow of expatriate tenants and at the
same time in the next few years... the number of private condominiums
that are going to be completed would also increase... if we have a
very sharp decrease in demand over a very short span of time, this
could actually disrupt the market quite drastically."

Observers say some expatriates are also moving out of more expensive
apartments, as their companies slash housing budgets.

Market players project that some 10,000 units of private apartments
will be completed this year. Of these, 3,000 units could be put up
for rent. And with demand softening, they expect rentals to fall by
10 to 20 per cent for 2009.

Frail market sentiments affected the private residential rental
market, which saw a 5.3 per cent drop in rentals in the fourth
quarter of 2008.

Still, observers say recent rule changes that allow the renting out
of unsold units will help to improve the developers' cashflow.

ERA Asia Pacific's Eugene Lim said: "It can also be packaged as an
investment unit, where you can sell it with an existing tenancy.
There are always ready buyers for this kind of unit where they do not
want the hassle of finding a tenant when it's already tenanted.

"So if it is packaged very effectively, viz-a-viz the rent versus the
price, then you get an attractive rental return, then it makes the
unit marketable."

Despite falling rentals, market watchers are hoping to see a recovery
in the private residential rental market as early as the second half
of this year.

Office rents may plunge 30-40% in 2009: Savills

(SINGAPORE) Grade A office rents here could fall 30-40 per cent this year and another 20-25 per cent in 2010, based on new research from Savills.

Rents here fell 1.9 per cent in 2008, the property firm said. Savills' research, which also forecasted rents at competing markets Hong Kong and Shanghai, shows that Singapore will be the worst-hit - in terms of rental declines for Grade A office space - in 2009 and 2010.
Grade A office rents here stood at $13.70 per square foot per month (psf pm) at end 2008, Savills said. This is expected to fall to $8-9 psf by end 2009, and $6-7 psf by end 2010.
Grade A rents in Hong Kong are forecast to fall by a smaller 30 per cent this year and 10 per cent in 2010. In 2008, Grade A office rents in Hong Kong grew 3.3 per cent.
Savills' data showed that Grade A rents were around HK$59.80 psf pm at the end of 2008. Savills forecasts that this will fall to HK$42 psf by end 2009 and HK$38 psf by end 2010.
As a consequence, Grade A office rents here are likely to be about 20 per cent lower than in Hong Kong by end-2010. In the second half of 2007 and early 2008, Grade A office rents in Singapore were higher than in Hong Kong as rents shot up here in 2007 and 2006.
Property firms have said in December 2008 that Singapore's Grade A office rents nearly doubled in 2007 after growing by more than 50 per cent in 2006.
But now, rents in Hong Kong are higher again as rentals here took a big hit in 2008. According to CB Richard Ellis, for example, Grade A rents fell to an average $15 psf pm in Q4 2008 - a fall of 12.5 per cent from end-2007. CBRE and Savills use different baskets of properties to calculate market rents. But both firms expect rents to fall further in 2009 and 2010 on the back of new supply.
Singapore and Hong Kong rushed to develop offices for their rapidly expanding financial services sectors in the last few years. Now, with the global downturn, an excess of unwanted space is depressing rents.
But Hong Kong's rents are expected to take less of a hit as new office supply there was rolled out earlier than in Singapore.
'With a minimum of a four year lead time for any significant office development, Hong Kong's core supply arrived in the nick of time to satisfy the burgeoning demand whilst Singapore has been caught by the unforeseen credit crisis,' said Chris Marriott, Savills Asia-Pacific's regional head of commercial.
Some 5.5 million square feet of new prime office space is due to come up in Singapore from 2009 to 2011 - about 30 per cent of existing supply, Savills said.
By contrast, Hong Kong has a smaller 4.52 million sq ft of office space coming up, which will add 6 per cent to the total stockpile.
Mr Marriott expects Hong Kong to see the quickest recovery among the three markets studied. For Singapore, rental recovery could be seen from 2012 onwards, he said. But investor interest is expected to pick up by early 2010.
There are a number of new funds with allocations for Asia which are already targeting assets regionally. Mr Marriott said: 'These institutions are already focusing on prime assets in core markets at discounts.'
In particular, they are looking at Australia, Japan, Korea, Hong Kong and Singapore, and will start buying once vendors reduce their prices, he said.

22 Feb, 2009
Long-time Dempsey Village tenants move out
New landlord raises rent by 150%, driving out nearly a third of the
antique and furniture businesses
By Huang Huifen

They have been tenants for as long as 15 years, but they are shifting
out of Dempsey Village.

The trigger point for about 10 companies which sell antiques,
carpets, furniture and wine?

Higher rentals.

The businesses are housed in nine blocks in the sprawling, rustic
area, once home to a British military base.

A tender for a master landlord for the nine blocks attracted 14 bids
in a tender last year. The Singapore Land Authority awarded the
tender to Country City Investment (CCI), which put in a bid of
$378,300 a month.

The latter is already the master landlord of Dempsey Hill and Dempsey
Hill Green in the area which has been turned into a hip food and
beverage (F&B) hub since 2007.

The tenants whom The Sunday Times spoke to said rental has increased
by as much as 150 per cent.

According to a pioneer tenant who wished to remain anonymous, rental
charged by the former master landlord Tanglin Warehouse ranged from
$2.50 to $3 per square foot (psf) in the past 12 years. It has now
risen to $6.50 psf.

'The rental has gone beyond our commercial sustainability,' said Ms
Darika Suter, owner of Eastern Discoveries Antiques. It is moving out
after 15 years in Dempsey.

Ms Anita Sam, owner of furniture store Journey East, is also
relocating after 15 years there.

'I would rather pass on the savings in not paying a high rental, to
customers,' she added.

Another pioneer tenant, Mr Hadi Nishaburi, owner of Oriental carpets
and rugs store Jehan Gallery, said: 'I don't want to increase prices
or bring down the quality of our goods due to higher rental.'

He, together with Ms Sam, Ms Suter and Ms Winnie Chua of Red House
Carved Furnitures Co, are shifting to the Tan Boon Liat Building in
Outram Road at the end of this month.

At least five of the 27 tenants in the nine affected blocks are
downsizing.

Lotto Carpets, for example, is moving to a unit in Block 26, which is
half the size of its current 5,000 sq ft premises in Block 15.

The tenants who are staying put said they are positive about the
business prospects in Dempsey.

'There's a spillover from the F&B crowd and our customers are
familiar with our location,' said Mr Imran Abid Mir of Lotto.

Mr Nicholas Ng, general manager of CCI, said its rentals 'are still
more attractive than those in other commercial districts such as
nearby Holland Village'. He added: 'Existing tenants have also been
given preferential rates as they have been there for many years.'

While rent is a big issue, some tenants who are leaving said the
development of Dempsey into an F&B sanctuary was also not in their
best interests.

'The new crowd has created traffic but they are not our type of
customers who are serious art and furniture buyers,' said Mr
Nishaburi of the folk in their mid-20s to 40s who patronise the pubs
and restaurants.

'More than 40 per cent of our customers have been driven away,' he
noted.

Said a CCI spokesman: 'If the wrong crowd is the reason, why did the
pioneer tenants also bid in the tender?'

About 17 pioneer tenants - including some of those who are moving
out - formed Dempsey Properties and put in a bid for $213,000 a
month.

Mr Bob Hoe, one of the founders of Dempsey Properties, said the
tenants put in a bid because they wanted to ensure a 'sustainable
rent for business and to keep the retail mix'.

He is also the owner of Pasardina Fine Living, one of the pioneer
stores in Dempsey.

But he is not relocating despite having to pay more in monthly rent.

'The location is within the boundaries of the expatriate market and
the F&B offerings also draw the

middle- and upper-class crowds. Hopefully, that will enhance and
maintain our business,' he said.

Feb 22, 2009
Keen to cash in on mortgagee sales?
Expect to wait as banks are more likely to restructure loans than
force-sell homes
By Joyce Teo, Property Correspondent

More people are showing a keen interest in monitoring auction sales
of properties in order to bag a distressed sale.

But the mortgagee sales that many are waiting for have yet to surface
in any significant manner, property consultants said.

A mortgagee sale takes place when a bank force-sells a property at an
auction after foreclosing on a mortgage. But auctions are also
conducted for sales made by owners.

Last year, only $83.67 million worth of properties were sold through
auctions - most of them were owners' sales, down from $407.43 million
the year before. It marked the lowest point for the auction market in
more than a decade.

Things could improve slightly this year. Consultants have said they
expect to see a rise in loan defaults and forced or mortgagee sales
this year.

Right now, they said the banks are restructuring the loans of
potential defaulters, who may be offered interest-free holidays or
allowed to stretch the loan period.

DTZ's senior director for investment advisory services and auction,
Mr Shaun Poh, said that based on general feedback from banks and past
experience, he expects to see more mortgagee sales surface in five to
six months' time.

Indeed, the market could see a pickup in mortgagee sales in four to
six months' time, said Knight Frank's executive director, Ms Mary
Sai.

But contrary to expectations, there may not necessarily be a lot more
of these sales because banks are open to working out a deal with
their customers, she said.

Banks are unlikely to want to take back too many properties when they
may not recoup their losses, consultants said.

Nevertheless, many potential buyers are already getting ready. 'We
have been getting five to six requests a day from people asking to be
put on our auction mailing list,' said Mr Poh.

For most of last year until October, his firm received just one to
two requests a month.

It is the same at Colliers International. 'The demand is very strong.
We can get up to 20, 30 people calling us on some days this year,
compared with one to two calls a day last year,' said its deputy
managing director and auctioneer, Ms Grace Ng.

'They want to be on the mailing list. They are just waiting for the
market to bottom out.'

Ms Sai said potential buyers are 'coming in floods', asking to be on
her company's list or calling about properties on offer.

'But it is very difficult for us to strike a deal because the buyers
are putting in very low offers. They want to go only for a killing,'
she said.

Ms Ng said her company has also yet to see fire-sale prices. Most
properties on offer are sales by owners, not banks.

Nevertheless, if the owners are putting their properties up for sale
in these times, they are obviously serious about selling, consultants
said. 'They know the market and are willing to consider reasonable
offers reflective of the current market,' said Ms Sai.

While there may not be a lot of mortgagee sales yet, some popular
projects have surfaced recently.

For instance, a posh bungalow in 99-year leasehold Sentosa Cove and a
swish St Regis Residences apartment in Tanglin Road are among the
properties included in DTZ's auction on Thursday.

The guide price for the Sentosa Cove bungalow, which comes with a
swimming pool, is between $12 million and $13 million, which works
out to $1,449 per sq ft (psf) to $1,570 psf.

While the absolute sum is high, this is lower than the $17 million
that another owner of a similar- sized house had asked for last
month, and which had failed to attract any buyers.

The 3,757 sq ft unit at the 999-year leasehold St Regis has an
indicative price of $2,400 psf, or about $9 million. Some units at
this condo had previously sold for more than $3,000 psf.

At Jones Lang LaSalle's auction on Friday, there is an uncompleted
condo for sale - a four-bedder at The Regency at Tiong Bahru.

Among the mortgagee sales this week is a one-bedder at uncompleted
condo The Clift in McCallum Street at DTZ's auction, and a freehold
Regency Park unit in district 9 and a Costa Rhu ground-floor
apartment at Knight Frank's Tuesday auction.

Indicative prices are $1,500 psf for the 506 sq ft unit at The Clift
and between $1.5 million and $1.6 million for the 1,722 sq ft Costa
Rhu unit in Tanjong Rhu. Knight Frank withdrew the latter from its
auction last month as there were no takers at $1.55 million.

The indicative price for the 2,260 sq ft Regency Park unit in Nathan
Road is $1,000 psf to $1,200 psf, said Ms Sai. It comes with a $9,500-
a-month tenancy which will expire in January next year. A bigger
3,175 sq ft unit was sold at $1,036 psf last month.

'Compared with last year, there are more attractively priced
properties put up for auction this year,' said Mr Poh.

As he said earlier, there could be more mortgagee sales five to six
months down the road.

February 24, 2009
Developers' home sales top 1,000 units in Feb
GuocoLand sells some 160 units at The Quartz after last week's price
cut
By KALPANA RASHIWALA

(SINGAPORE) Developers have achieved an 18-month high in private
homes sold in a month, with the 1,000-unit mark having already been
breached so far in February.

Most of the developers who are prepared to pare their price
expectations to more affordable levels continue to be rewarded. A
near 10 per cent price chop was all it took for GuocoLand to sell off
almost 90 per cent of the 182 units at The Quartz condo in Buangkok
relaunched last week.

The Singapore-listed property arm of Malaysian tycoon Quek Leng Chan
has found buyers for about 160 units since last Tuesday's price cut.
This means the 625-unit project is now left with only around 20
units, compared with 182 units prior to the relaunch.

GuocoLand trimmed the 99-year-leasehold project's average price to
$595 per square foot (psf), compared with $650 psf during the height
of the market in 2007.

Besides the more competitive pricing, market watchers attributed the
successful outcome to the fact that The Quartz will be ready for
occupation soon. Temporary Occupation Permit (TOP) for the condo is
expected in a couple of months.

The bulk of buyers are believed to have bought for their own
occupation. About 98 per cent of buyers are Singaporeans, 80 per cent
of whom live in the vicinity, mainly with HDB addresses, a GuocoLand
spokeswoman said.

'They like the design, layout and location of the development, which
is near Buangkok MRT Station and also accessible by Kallang-Paya
Lebar Expressway,' she added.

The bulk of the 182 units were three-bedroom apartments. On average,
a typical three-bedder of slightly under 1,100 sq ft costs around
$650,000, BT understands.

Over at Jurong Lake District, Frasers Centrepoint found buyers for
another 35 units for its Caspian condo over the weekend, raising
total sales in the 99-year-leasehold project to 515 units.

The overall average price achieved is just over $600 psf, reflecting
the sale of better-facing units in the past week. About 32 per cent
of Caspian's buyers have opted for an interest absorption scheme;
they will pay 3 per cent more in exchange for not having to foot
beyond the 20 per cent initial payment until the project receives
TOP. On average, three-bedroom units at Caspian cost $700,000 to
$750,000.

At River Valley Road, Fortune Development found buyers for another
six units at RV Suites over the weekend. Half the 96 units in the
freehold project have been sold. The project comprises mostly units
of 500-550 sq ft, and the average price is about $1,300 psf. East
Coast Properties sold another four units over the weekend for its
D'Chateau @ Shelford, which is priced at $1,000-$1,100 psf on average.

Market watchers note that over at Livia in Pasir Ris, some of the 30
units released at $620 psf on average on Valentine's Day weekend are
still available. Units are relatively large (a typical three-bedder
is about 1,259 sq ft), resulting in a bigger unit price quantum of at
least $750,000 for a three-bedroom unit. Potential buyers may also be
waiting for new projects to be launched in the area before deciding
on their purchase.

Seasoned property consultants say that for mass-market projects to
move today, they should be priced at around $600 psf at most, and the
unit price should not exceed $700,000, in order for them to be
affordable to HDB upgraders.

February 18, 2009
Soilbuild posts 60Percent Q4 profit jump
By OH BOON PING

SOILBUILD Group has reported a 60 per cent year-on-year jump in net
profit to $30.5 million for the fourth quarter ended Dec 31, 2008.

Revenue for the three months ended Dec 31, 2008, rose 46 per cent to
nearly $50 million while earnings per share were 14.36 cents - up
from 9.21 cents a year ago.

On a full-year basis, its net income went up 44 per cent to $75.17
million, while revenue jumped 126 per cent to $238 million.

During the quarter, the group's gross profit rose 61 per cent to
$18.6 million, a reason being the additional recognition of revenue
and gross profit contributions from the Leonie Parc View residential
property project as it had reached 34 per cent completion.

Additional recognition of revenue and gross profit contributions from
the fully-sold Montebleu residential property project, which had
reached 35 per cent completion, was also cited.

Contributions also came from fully-sold Centrio residential property,
fully-sold Espa residential property project and maiden recognition
of revenue and gross profit from the Tuas Lot business space
factories.

During the quarter, the group also saw continued recurrent rental
income contributions from Eightrium@Changi Business Park, the three
remaining units at Senoko Food Connection, and seven units at the
Kranji Linc factories, as well as the sub-lease of SB Building.

Soilbuild said that the outlook for the property sector, particularly
the residential and business space segments, is likely to remain
muted.

'Furthermore, the tight credit and capital markets and the poor
employment outlook will continue to adversely affect sentiments.'

Soilbuild said it will continue to remain focused on managing its
cash flows and its capital in a prudent manner.

In particular, it will continue to focus on completing its
residential property projects that have been fully or substantially
sold, and on boosting its recurrent income further by leasing its
completed business space properties.

'In addition, the group will actively engage financial institutions
to strengthen its relationships with them and to ensure that it
remains well-supported.'

February 26, 2009
Koh Brothers '08 net profit drops 30percent
By UMA SHANKARI

CONSTRUCTION and property group Koh Brothers yesterday reported a 30
per cent fall in 2008 net profit to $27.7 million, from $39.7
million in 2007.

The decline was mainly due to the absence of any revaluation gain in
2008. In 2007, there was a revaluation gain of $39.3 million for
investment properties. However, the absence of the revaluation gain
was partly mitigated by a gain of $21.3 million from the sale of
Changi Hotel in 2008.

The group also experienced a 24 per cent decline in revenue to
$215.8 million - from $285.8 million in the previous corresponding
period - mainly due to lower recognition of construction projects
completed. Earnings per share were lower at 5.78 cents a share,
compared to 8.28 cents a share in 2007.

The directors have recommended a special dividend of 0.1 cent per
ordinary share and a final dividend of 0.2 cent per ordinary share.
Last year, Koh Brothers paid out a first and final dividend of 0.3
cent a share.

Looking ahead, chief executive Francis Koh said that the company
will continue to monitor the market for its real estate division,
and launch projects on hand at the appropriate time. 'We are in the
midst of a challenging period,' he said.

The company has the prime Lincoln Lodge site at Khiang Guan Avenue,
off Newton Road in District 11, in its landbank. Koh Brothers
acquired the site with Heeton Holdings, KSH Holdings and Lian Beng
Group in June 2007 at the height of the property boom.

Mr Koh added he was confident that the company's contracts-in-hand
of over $600 million from its construction and building materials
segment would contribute positively to the group in FY2009 and the
years ahead. Koh Brothers' stock closed at 13 cents on Feb 19, the
last day shares were traded.

February 26, 2009
More mass market projects to launch
By UMA SHANKARI

(SINGAPORE) Developers are planning to launch more mass market
projects this weekend to take advantage of a recent surge in buying
interest.

Hiap Hoe Group, a niche developer, will officially launch its 118-
unit The Beverly, located at Toh Tuck Road, this Saturday. The
starting selling price is $648 per square foot (psf), which Hiap Hoe
says is an 'attractive starting selling price'.

'We have designed The Beverly for those looking for affordable, high-
quality residential developments in a good location,' said Teo Ho
Beng, the company's managing director.

The Beverly's two, three and four-bedroom apartments range from 1,120
sq ft to 4,187 sq ft, while its double-storey penthouses range from
2,099 sq ft to 3,757 sq ft and are each outfitted with a private roof
garden and pool.

On the other side of the island at Pasir Ris, Sustained Land Pte Ltd
will also officially launch Coastal Breeze Residences come this
weekend. Two and three-bedroom units at the 63-unit development will
sell for $610-$660 psf.

Sustained Land has sold 13 units in Coastal Breeze Residences since
the start of 2008 in a soft launch. The units, which were mostly
prime apartments on higher floors, went at an average price of $690
psf.

The remaining units are mostly three-bedders between 1159 sq ft and
1356 sq ft in size and there are also duplex penthouses. In terms of
absolute value, for example, the price for a three-room 1159 sq ft
unit starts at $712,000.

Meanwhile, the UOL Group is expected to launch its 646-unit Double
Bay Residences in Simei sometime next week. Market talk has it that
the project could be launched at $650-680 psf.

The three projects are coming hot on the heels of two successful
launches earlier this month. Units at Frasers Centrepoint's Caspian
condominium near Jurong Lake and Alexis @ Alexandra, a project by
joint venture partners Yi Kai Group and Fission Group, sold quickly
upon the projects' launches.

One market insider said that developers are taking pricing cues from
each other, and making sure their newly launched projects are priced
to sell. 'There is a sense that people will only be willing to buy
projects in the $600-plus psf range, and also only units that don't
cost too much in total. People don't really want to pay more than
$600,000 or $700,000-plus in these times,' he said.

Developers are also throwing in more upmarket features into their
mass market offerings to entice buyers. Each of The Beverly's 118
apartments is served by private lifts that open into the lobby of its
interior. UOL's Double Bay Residences will also offer extras such as
full-length windows in the kitchen, the company has said.

February 27, 2009
Retailers seek rental rebates for 'survival'
Squeeze could lead to big job cuts, says SRA; CapitaLand
to 'customise' solutions
By UMA SHANKARI

(SINGAPORE) Up to 20,000 retail employees - 20 per cent of the
sector's workforce - could be retrenched unless store rents are
slashed, the Singapore Retailers Association (SRA) said yesterday
after an emergency meeting.

Members' income has dived 20-30 per cent in the past few months, said
SRA, which represents close to 300 retailers.

The main issue - and of critical concern - is high rents demanded by
landlords 'who apparently lack an understanding of the plight
retailers are facing', SRA said. But CapitaLand, which is Singapore's
biggest retail landlord, listed out the steps it had taken to help
retailers and said it would work with its tenants individually to
customise solutions for them.

SRA, meanwhile, said that occupancy costs have climbed 50-80 per cent
over the past three years. But with sales margins shrinking,
landlords have been slow to acknowledge or respond.

'Initiatives offered to date are inadequate as they do not address
the main concern of the retailers - that of cost containment in these
difficult times,' SRA said.

Rent cuts of at least 20-30 per cent are an 'absolute necessity', it
said in a statement. 'The industry is asking only for this, as the
bare minimum, to ensure survival.

'Landlords and tenants exist symbiotically. It has to be understood
that a strong partnership is necessary to ensure the survival of all
parties in this current period, so there is a future to look forward
to.'

Members' margins are now 'almost negligible, if not negative', the
SRA statement said. 'With such a contraction, the industry is
seriously concerned about the possibility of store closures. Unless
occupancy costs are reduced, we are fearful that up to 20 per cent of
our employees may be retrenched as a result of store closures.

'This could mean 20,000 people out of work - a major concern for
retailers, and Singapore, and something the industry would not want
to happen.'

SRA said other industries that feed off the retail sector - such as
the media, food and beverage, and advertising - could also face job
losses as a result of retailers' woes.

SRA said its members have agreed to share information more frequently
and more openly - as a 'result of landlords' continuing reluctance to
accede to the retail industry's pleas for rental rebates, with some
even proposing rent increases'.

Misinformation has resulted in some retailers committing to lease
agreements they otherwise would have thought about twice, or even
three times, SRA said.

The shared information is expected to make retailers more aware of
what their peers are doing.

A spokesman for CapitaLand pointed out, meanwhile, that after this
year's Budget, the group had committed to pass on the 40 per cent
property tax rebate to CapitaLand Retail and CapitaMall Trust tenants
in full. A part of staff bonus was paid in the form of shopping
vouchers to support tenants across 12 CapitaLand malls.

The spokesman also said that the most scientific way to look at
sustainable rent was to look at each retailer's occupancy cost
(rent/gross revenue).

'As a landlord, we are mindful that it is important that our tenants
do a viable business so as to create a win-win situation. Thus all
renewals are reviewed on an individual basis, based on their
sustainable occupancy cost,' the spokesman said. 'We continue to stay
close to our retailers, work with them individually to better
understand the specific issues that they are facing, so that we can
customise a solution jointly with them.'