REVIEW OF OPERATIONS

SINGAPORE

RESIDENTIAL

New Launches

Cluny Hill

As part of the Company’s direction to unlock value, Keppel Land launched for sale the bungalow plots in the exclusive good class bungalow enclave at Cluny Hill in 2001. The 303,697 sf (28,214 sm) site, when redeveloped, will yield a net saleable land area of 249,790 sf.

The freehold site provides the most prestigious address in prime District 10. Perched on a hilltop overlooking magnificent greenery of the Botanic Gardens, it is close to the embassy row and the Orchard Road shopping belt.

Buyers are able to purchase plots with land area ranging from 15,070 sf to more than 30,000 sf to build their own dream homes. Keppel Land will also provide architectural design and project management services for the entire process from conceptualisation to completion for buyers who prefer to have pre-designed homes and wish to avoid the hassle of having to project-manage the construction. For those who wish to engage design services, three experienced architects specialising in good class bungalows have been commissioned.

The 16 proposed bungalows would be architecturally unique and also exude grandeur as well as elegance. Each of the bungalows will have a plot size of at least 15,070 sf and a gross floor area of about 8,500 sf.

To date, six of the 16 plots have been sold, generating $44.6 million net profit.

Overwhelming response at Amaranda Gardens’ launch resulted in almost all units sold.

Amaranda Gardens

Located along Serangoon Avenue 3, this 189-unit condominium development comprises of 2-, 3-, 4-bedroom apartment units and penthouses. Unit sizes range from 990 to 3,864 sf. Amaranda Gardens is near the upcoming Serangoon Central Mass Rapid Transit (MRT) station and renowned schools like St Gabriel’s Primary School, Rosyth School, Nanyang Junior College and the future Australian International School.

Facilities include tennis courts, a basketball practice court, a free-form swimming pool, barbecue pits and jogging paths. It also boasts an adventure park complete with a tree-house, rope pyramid platform, slide tower, net walkway and monkey bridge.

To date, all units have been sold save for a few penthouses.

M A R K E T R E V I E W

RESIDENTIAL Market Subdued by Economic Downturn but Demand Picked up Towards Year End The Singapore residential property market was relatively subdued in 2001, due mainly to the economic downturn which was exacerbated by the September 11 attacks in the US. The Singapore economy contracted by 2% in 2001, after achieving 10% growth in 2000. Based on the URA residential property price index, prices of residential properties fell by 11.7% in 2001. In view of the economic downturn, the Government had, in the second off-budget measures in October 2001, announced a series of land/property-related measures which include: Suspension of land sales for the rest of 2001 and 2002. Instead, unsold parcels are put in a reserve list to be activated if there is interest. Removal of capital gains tax on property sales within 3 years of purchase. Lifting of restrictions on foreigners obtaining housing loans in Singapore dollars. Exemption of property tax for land under development till October 2003. In November 2001, there was further relaxation of the 20% cash downpayment ruling, allowing developers to defer half of the downpayment i.e.10% till the issue of the Temporary Occupation Permit (TOP). This helped to spur buying interest as witnessed by the successful launches of The Edgewater and Amaranda Gardens by Keppel Land in late November and early December 2001, for which the deferred payment scheme was implemented. Several other projects launched around the same period were also well received by the market. A total of 2,839 new private homes were sold in the primary market in 4Q 2001, nearly double the sales volume in 3Q 2001. Going forward, the residential market is expected to improve in 2002, with pick-up in demand and signs of economic recovery. The Ministry of Trade & Industry has in February 2002 revised Singapore’s 2002 growth forecast to 1-3%, up from the previous forecast of -2 to +2%, made in October 2001.