TODAY'S HEADLINE

PROPERTY PRICES TO RIDE HIGH ON THOMSON LINE  

Consultants expect a jump in prices of developments close to upcoming stations.
Residents in the northern region of Singapore can expect the announcement of the upcoming Thomson MRT Line to boost property prices almost immediately, say consultants, although they di'er on the extent of the rise.

Savills research head, Alan Cheong expects residents living in the Springleaf, Seletar, and Lentor area to see the most bene't from the Thomson Line given that they are currently underserved by the public transport system.

Broadly speaking, consultants BT spoke with expect home prices to spike closer to the completion of the line.

According to HSR's senior manager for investment sales, Gabriel Goh, properties near the planned MRT stations might see a gradual increase of 3'5 per cent in the short term, and later enjoy a 20'30 per cent premium over properties that are not as close to the stations.

Senior manager for training, research and consultancy at DWG, Lee Sze Teck expects a near term price increase of 5'10 per cent, with a price appreciation in the range of 20'30 per cent when the MRT line is completed.

That being said, prices of properties close to major construction work sites may take a momentary dip to the tune of 5'15 per cent, said DTZ's head of Asia Paci'c research Chua Chor Hoon.

Ms Chua said she expects the area spanning Woodlands to Upper Thomson to see the largest increase in price given that they bene't most from the reduction in travelling time to town.

The Thomson MRT Line will be launched progressively in three stages from the north to the south, with three stations from Woodlands North to Woodlands South ready by 2019, six stations from Springleaf to Caldecott  ready in 2020, and 13 stations from Mount Pleasant to the Gardens by the Bay fully operational by 2021.

NEWS BUZZ

Otto Marine (S$0.086) 
Secures charter contract  
Otto Marine has won a long'term  time'charter contract that comes with an extension option to deploy its landing craft in Western Australia. The contract is expected to generate about US$15.1mil for the minimum scheduled period of the charter, and up to US$18.5mil with options.

Noble Group (S$1.20) and Olam International (S$1.90) 
Forbes Asia's Fab 50 list  
Noble Group and Olam International are in in this year's Forbes Asia Fabulous 50 list. Noble Group for the seventh straight  time and Olam International for the third time and the 'rst since 2010.

Saizen REIT (S$0.16) 
O'oads Japan property for 86m yen  
Saizen Real Estate Investment Trust has divested its property Rise Kojo Horibata in Kumamoto, Japan for 86.0mil yen (S$1.4mil). It entered into and completed the sale and purchase agreement with an independent private investor. A valuation by Le Futur Corporation on June 30, 2012, pegged the property's value at 73.3mill yen using the direct capitalisation and discounted cash 'ow analysis method. The sale consideration re'ects a 17.3% premium over the valuation.

The group does not expect the sale to have any material impact on its 'nancial position. The proceeds may be used for Saizen Reit's working capital and/or property acquisitions. The manager is entitled to a 0.3 per cent divestment fee.
Source: The Business Times

Source: AmFraser