04 Dec 2007

SINGAPORE (Thomson Financial) - The Singapore property sector has attracted 8.8 billion Singapore dollars in foreign investments so far this year, said Grace Fu, Minister of State for National Development.

'This represents an increase of 66 percent over the 2006 full-year volume of about 5.3 billion dollars. This dramatic increase reflects the optimistic economic outlook and development potential in Singapore,' Fu said at the signing of the 1.7 billion Singapore dollar South Beach development project between the government and a consortium led by property developer City Developments (other-otc: CDEVY.PK - news - people ).

Foreign investments in Singapore's property sector have grown significantly from 800 million dollars in 2004 to 4.1 billion dollars the following year and to 5.3 billion dollars in 2006.

Singapore ranks second only to Shanghai in having the best real estate investment prospects in Asia-Pacific next year, based on the latest assessment of the Urban Land Institute and consultancy firm Pricewaterhouse Coopers, she said.

City Developments has partnered with Dubai group Istithmar and US-based Elad Group to develop South Beach, which covers 3.5 hectares of land zoned for commercial use.

The project was awarded to the consortium on September 10 and will include office, hotel and retail development.

'This South Beach project marks the first participation of Istithmar and Elad, two major international investors, in a government land tender in Singapore,' said Fu. 'We look forward to seeing a development that will become a new landmark in Singapore.'