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Riding on the positive propertymarket, The Sixth AvenueResidences was sold out withintwo weeks of its preview.The Sixth Avenue Residencesover the last six years and such a trend is expected tocontinue as more foreigners are drawn to Singapore.The development of the new downtown into aninternational business and financial hub and the twointegrated resorts at Marina Bay and Sentosa Island willreinforce Singapore’s position as a must-visit destinationin Asia and a vibrant cosmopolitan city to live, work andplay. These developments and their economic spin-offswill play an instrumental role in stimulating the propertymarket and fuelling demand for housing.In addition, Singapore’s affluence level is growing fast.According to Merrill Lynch-Capgemini’s wealth report,the number of high-net-worth individuals in Singapore hasrisen 13.4% year-on-year to 55,000 in 2005 and about17% of their assets are invested in real estate. Continuedeconomic expansion and a growing wealth managementsector will have a positive bearing on the property market,especially the high-end and luxury residential segments.Beyond the rich and wealthy, household incomes of thegeneral population have also been rising, underpinnedby a buoyant economy and a better job market. A studyby the Department of Statistics revealed that averagemonthly income of Singapore resident households fromwork rose 6.2% year-on-year to $5,730 in 2006. Withrising income and improved consumer sentiment,upgrading demand is expected to increase, especiallyfor mass market residential developments.The Singapore residential property market is expectedto remain buoyant in 2007. Property consultants expectprices for new projects in the high-end and luxury-endsegments to increase by about 10% to as high as 25%in 2007 and will have spillover effects on the mid-tiermarket segment. Overall, residential property prices areprojected to increase by 5% to 8% in 2007.In 2007, Keppel Land has in its stable one of themost-awaited residential project launches in Singapore,Reflections at Keppel Bay. This is a unique iconic projectdesigned by the internationally-acclaimed architectDaniel Libeskind. This 1,129-unit development will havesix glass towers of 24 storeys and 41 storeys as well as11 villa blocks of six storeys to eight storeys high. Thedevelopment is part of the Keppel Bay precinct, whichoffers a truly waterfront lifestyle with a marina.Residential 2006 2005 % ChangeDemand (no. of new units sold) 11,147 8,955 24.5Supply (no. of new units available) 11,069 8,201 35.0Average condominium price ($ psf)– Islandwide 99-year leasehold 500 470 6.4– Islandwide freehold 590 535 10.3– Prime 950 780 21.8– Luxury 1,750 1,550 12.9– Luxury (under construction) 2,200 1,400 57.1Source: Urban Redevelopment Authority and CB Richard EllisOperations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006107