Singapore Real Estate Properties

Asia real estate navigating storm

The confluence of economic uncertainty brought on by the deepening subprime crisis has posed a real risk of a systemic financial event and a prolonged global economic slowdown. This, coupled with another round of de-leveraging in the structured credit market has led to further pressure and deterioration in real estate prices, predominantly in the US and Europe. Given that the pendulum swung as far as it could in the direction of reckless mortgage lending, it will now swing back towards the quaint notion of buyers being lent only the amount they can reasonably be expected to pay back. Whilst the rout has largely been confined to markets outside Asia, we see considerable softening in real estate markets with high foreign participation and in certain high-end segments. Opportunistic investors are pulling back from Asian property given more scope for acquiring distressed assets in their home markets, and loans remain elusive in Japan and Singapore, one of their favourite markets.

Hedge funds have stopped dabbling in property in the region, and although private equity players will continue to develop property in India and China, they are more likely to buy buildings cheaply in Western countries than in Asia. We expect values for US commercial real estate to fall by 23 percent in the next five years from their 2007 peak, causing losses of about $1,600 billion, including those on commercial mortgage-backed securities. London office values have dropped 12 percent from a peak in the middle of last year, and will be under further pressure from forecasts of a 15% decline in rental values through 2009.

In 2007, total direct investment in Asia jumped 27 percent to $121 billion — a sixth of the global total — with approximately half invested in Japan  and Singapore. Real estate stock in Asia currently stands at $9.5tln, growing on average by 6 percent-7 percent pa except in China which grew by 15 percent pa.). China and India make up 50 percent and 12 percent of the total stock respectively while Japan constitutes 20 percent of the total. The demand for real estate is dependent on the health of the economy, which in turn is affected by financial markets. In 2008, we expect prospects for Asia’s real estate to remain lukewarm, especially in traditional FDI led markets like Singapore. The global economy still faces major uncertainties in regards to how a further unraveling of the credit crisis will affect the availability of credit and asset pricing. The resilience of Asian economies and the real estate market will be truly tested in 2008. Buoyant domestic consumption is expected to help the region weather a substantial economic slowdown as weaker global demand impacts Asian exports.

Overall, despite the risks inherent in the region, we believe opportunities remain in Asia’s real estate market, driven by sound GDP growth (projected at 8.0 percent y-o-y) underpinned by sustained private consumption, higher public and private investments; a re-rating of property as an asset class, sustained domestic demand and on-going infrastructure development. We remain bullish on India and Vietnam, with a cautious view on China, Malaysia and Singapore. more...

Global Property Prices: The Winners And Losers

Economic uncertainty has deflated house price inflation in the west, while returns in emerging countries have bounded ahead, figures show.

Global house price inflation in quarter four of 2007 stood at an annualised 8.2 percent, down from 9.7 percent a year ago, the Knight Frank global house price index shows.

Bulgaria topped the index with growth of 33.7 percent, followed by Russia at 30 percent.

In the Far East, Singapore and Hong Kong also outperformed the market, with annual growth of 31.3 percent and 22.3 percent respectively, as did China, where prices grew 10.5 percent overall and by 20 percent in some cities.

However, Estonia, where prices dropped 14.5 percent, took bottom place -- a sharp reversal on a year ago when prices climbed 23.8 percent.

Ireland, Latvia, Germany and the U.S. also recorded negative year-on-year growth of 7.3 percent, 7.1 percent, 4.3 percent and 0.3 percent respectively.

House prices in Britain grew 5.2 percent, down from 8.4 percent a year ago.

Liam Bailey, head of residential research at Knight Frank, said: "While property prices in Europe and America appear to be suffering from the downturn in economic conditions; prices in Asia and elsewhere -- notably Singapore and Hong Kong -- are performing very well."

One of the most "outstanding" features of the latest figures, he said, was Bulgaria's continued strong showing against an "astonishing reversal of fortune" witnessed in three Baltic countries.

While property prices in Latvia and Estonia fell, those in Lithuania managed growth of just 0.9 percent. A year ago, they were all high fliers, recording annualised growth rates of 66.6 percent, 23.8 percent and 23 percent respectively.

"Uncertain employment conditions, rising interest rates and household indebtedness are all identified as contributory factors in this turnaround," said Bailey.

Source: Javno.com

Singapore's most luxurious property gets Dubai showcase

As Singapore continues to be one of the most sought after cities to live, work and play in Asia, new luxury property developers are looking to the UAE to offer their upscale developments in the speeding Asian metropolis.

Most recently, Hayden Properties - a joint venture between KOP Capital and Emirates Investment Group unit Emirates Tarian Capital - announced that it would be launching a campaign in Dubai to promote its exclusive Ritz-Carlton Residences in Singapore beginning in the first week of March. The 36-storey tower will offer 56 condominiums and two penthouses, and is situated in Cairnhill, one of Singapore's most exclusive neighbourhoods.

The Ritz-Carlton Residences, Singapore, Cairnhill is the first full strata titled luxury residential project launched in Asia, equipped with the legendary amenities and service excellence of the Ritz-Carlton Hotel Company.

Renowned for its exceptional levels of service delivery, the Ritz-Carlton will fully train and manage the ladies and gentlemen who will deliver a wide array of services to include housekeeping, a 24-hour dedicated concierge, sommeliers and doormen.

Kunalan Sivapuniam, Director at Hayden Properties, said, 'There is so much in common between Singapore and the UAE, particularly Dubai. The two countries are witnessing phenomenal growth, ambitious development plans, and joint competition towards making stellar achievements.'

Mr. Kunalan added that Hayden Properties will be showcasing The Ritz-Carlton Residences to a select group of invitees. 'We have invited an exclusive list of parties that have expressed their interest in the Ritz-Carlton Residences, and we are confident in the impression that will be left on those who appreciate this level of luxury,' he said. more...

Singapore Real Estate - Star Project

The vast majority (more than 80%) of Singaporeans live in public housing. These homes are located in housing estates, where most are developed neighbourhoods with schools, supermarkets, clinics, food centres and recreational facilities. Popular neighborhood estates include names like Ang Mo Kio Town, Toa Payoh, Clementi, Yishun, Bishan, Hougang, Simei, Woodlands, Punggol, Bukit Batok,Tampines and others to the name. In short, they are called HDB.

Owning a home, a property in these places is a satisfaction. However, a buyer must consider factors before buying properties. It is the decision of the buyer to engage with real estate agents to handle transactions. Advantages of hiring the best real estate agents depend on its accreditation. STAR PROjECT is a member of The Singapore Accredited Estate Agencies (SAEA) Scheme was introduced in November 2005 to ensure that accredited agencies and agents are competent and proficient in their field, and are equipped with the necessary knowledge and skill to give advice and carry out property transactions and deals.

The scheme was initiated by the Singapore Institute of Surveyors and Valuers and the Institute of Estate Agents and is supported by the Ministry of Finance, the Housing Development Board and the Inland Revenue Authority of Singapore.

Individual agents must either have a degree or diploma in real estate studies, or passed a professional examination called the Common Examination for House Agents (CEHA).

And STAR PROjECT also possess a valid house agent’s licence issued by the Inland Revenue Authority of Singapore.

Aside from availing themselves to professional advice, clients of accredited agents will also have an avenue for dispute resolution (at the SISV Mediation Centre) should they encounter problems during transactions.

For more information visit Star Project's site http://www.starproject.com.sg...

Singapore jumps into most expensive office market league

Singapore - Singapore has moved into the top ten most expensive office markets for the first time as a result of a severe shortage, a survey said on Thursday. The city-state jumped 10 places to the seventh spot in the survey by real estate consultancy Cushman & Wakefield after prime rents shot up an average 78 per cent.

London topped the 2008 rankings published in The Straits Times, followed by Hong Kong, Tokyo, Mumbai, Moscow and Paris.

Office rents rose 40 per cent on average in the top 10 office locations, said the survey of 58 countries.

Dubai was ranked eighth, followed by Dublin and New York.

Office occupancy costs in London hit an annual average of 311.58 US dollars per square foot. The corresponding cost for Hong Kong was 238.58 dollars, 210.12 dollars for Tokyo and 166.04 dollars for Mumbai.

Moscow reached 158.72 dollars, Paris 141.57 dollars and Singapore, 130.48 dollars.

Ho Chi Minh City, a fast-rising Asian centre, was in the 17th spot, with occupancy costs at 75.81 dollars per square foot a year, ahead of Sydney, Seoul and Shanghai.

"Last year saw the fastest level of growth in office occupancy costs in many of the world's top locations since the turn of the property cycle in 2001, with the strongest demand coming from the financial sector," Elaine Rossall, the firm's head of business space research, was quoted as saying.

"We are unlikely to know the full effects of the current credit squeeze on the world's main office locations until further into 2008," she said.

Source: EarthTimes.org

Analysts say properties will see boost from MRT expansion plans

SINGAPORE: Property prices are expected to rise around ten to 15 per cent around the 100 new MRT stations to be built, analysts said.

The government announced Friday that it would pump S$20 billion to double the rail network by 2020.

Properties are going to be hot around the new 100 stations, with malls and public facilities expected to draw crowds to the stations.

Property consultants are forecasting price increases of ten to 15 per cent.

But with the new MRT lines to be completed only by 2020, they said the impact on the property market will not kick in until the next five to ten years.

Savills' director of corporate business and residential Ku Swee Yong said, "Generally, properties that are (within) 200 metres of an MRT station do trade at what about ten to 15% premium over properties that are less accessible but still within the same neighbour hood. It is too early to speculate because the government hasn't announced exactly where the line is going to pass through."

The rail plans include pushing forward opening dates for announced projects and extending existing lines. Two new lines will also be built, the first in the Thomson area, which goes up as far north as Woodlands, and the second along the East Coast, starting from Marina Bay.

Property analysts said properties along the Eastern Region Line will see the largest benefit as MRT coverage will be extended to those areas for the first time.

But until the new lines are fully operational, analysts said residents living near the new lines may experience inconvenience because of the construction works and government land acquisitions involved in the projects. - CNA/ac

Source: Channel News Asia

Singapore investment house and Israeli company to invest in Vietnam

Singapore - One of Asia's fastest growing investment houses has signed an agreement with Israel's Alony Hetz to set up a fund investing in Vietnamese real estate, the partners said on Tuesday. The Singapore-based Pacific Star Group and Alony Hetz expect to raise 200 million US dollars from institutional investors by July.

Alony Hetz, listed on the Tel Aviv Stock Exchange and one of Israel's largest real estate holdings, recently invested 40 million US dollars in a fund in India.

Under the deal, Pacific Star and Alony Herz will both manage the fund through a joint venture company that has yet to be established.

"Pacific Star has extensive ... experience in Asia and is an excellent partner for our entry into the region," said Nathan Hetz, founder and chief executive officer of Alony Hetz in a statement.

"The overall outlook of the Vietnamese property market remains bright owing to the accelerated economic growth in the country," Hetz said.

Source: EarthTimes.org

Tenants respond well to HDB flats managed by private property agent

When to Buy and When to Rent

Given a limited budget, and the rising cost of singapore property rentals, it may be time to consider buying the singapore hdb or singapore condo instead of continually renting it.

For one the banks offer very low loan rates. If the loan rates are lower than the appreciation rate, then it may also provide you with an investment vehicle.

The Sunday Times on Nov 18.2007 interviewd Mr Chris Firth, chief executive of Wealth Management firm DollarDEX and he believes that buying a home remains a good idea as there is an upside in the residential property market.

Ms Evelyn Wu has been renting for 6 years now but is now considering buying her own place. Due to the sudden and unexpected rise in rental rates of Singapore properties.

Look to a good singapore real estate agent to provide you with more options.

S’pore Land sales programme for 1H08 draws good reviews

S’pore Land sales programme for 1H08 draws good reviews

Large supply of mass market homes but govt holds back on office sites
By UMA SHANKARI
THE government will release a batch of suburban residential land parcels in the first half of next year but property analysts are divided as to whether there will be enough takers for the homes coming up on the sites.
And on the back of reports that Singapore could see an oversupply of office space come 2010, the government is releasing just one site for office use in its confirmed list in its land sales programme for the first half of next year.

The 21 residential sites on the list will yield 8,250 private homes, including executive condos. This compares to a supply of 8,000 private homes for the second half of 2007.

Eight of these sites - with the capacity for 2,840 homes - are on the confirmed list. The other 13 sites are on the reserve list.

Read more...click here

Gulf Cooperation Council countries offer SMEs business opportunities

SINGAPORE : There is much room for Singapore-based companies to find opportunities and partnerships in the booming Gulf Cooperation Council (GCC) infrastructure landscape.

This is according to IE Singapore at a seminar to promote investments to the United Arab Emirates and Oman today.

Small and medium enterprises from Singapore looking to break into the markets in the GCC countries have a wealth of opportunities.

While firms are most familiar with the United Arab Emirates, IE Singapore believes they have room to venture further into that region.

Ted Tan, Deputy CEO, IE Singapore, says: "(Planned and committed) investment in the GCC is currently about US$1.5 trillion, out of which the construction sector is about US$1 trillion. UAE alone congregate about US$700 million, so I think that there are huge mega infrastructure projects for companies."

But IE Singapore says the UAE is not just about Dubai.

Abu Dhabi is emerging as a regional economic power in its own right.

It has started committing significant resources to catch up with Dubai, especially in real estate and tourism development.

At last count, about US$200 billion worth of infrastructure development projects are being planned in Abu Dhabi.

Companies like SembCorp Utilities, CapitaLand and Keppel Land have already made inroads there.

IE Singapore says it also sees opportunities in Oman.

Mr Tan says: "The attractiveness for Oman is that the infrastructure projects are small in size so it is more manageable...and fully attractive for many of our SMEs."

Even banks like Standard Chartered are getting in on the action.

It wants to do business with SMEs by being a bridge for their business through its presence in the UAE and Singapore.

Sandeep Bose, SME Banking - Middle East and South Asia, Standard Chartered Bank, says: "What it basically does is it is creating an infrastructure. And when we talk about a corridor, it basically the bank being on both the sides - there is a UAE side, there is a Singapore side. With the bank being on both the sides, it saves the clients from having to find new partners. It has the partners and it has the support."

Stanchart says it will also help companies to establish themselves in Dubai by linking them up with its local partners. - CNA/ch

Source: Channel News Asia

S'pore will continue to grow even if recession hits: MM Lee

SINGAPORE: Minister Mentor Lee Kuan Yew said Singapore would continue to grow even if the world economy slows down in the coming years.

Speaking at a community event at Tanjong Pagar GRC on Sunday, he said there are enough foreign investments in Singapore, such as the two upcoming integrated resorts and next year's Formula One race, to make sure that Singaporeans have jobs.

For many Singaporeans, older generation leaders like MM Lee have laid a strong foundation for the country.

But Mr Lee said it may not be all plain sailing ahead for Singapore in the years to come.

He said: "There's a real possibility that next year or a year down the road, prices will go out of control. America goes into recession and stops buying so much. China stops exporting so much. India stops exporting, and we will also stop exporting.

"Don't just believe everything will go up. Those who have lived long enough know that this is not true. So please remember to diversify your assets."

Read more on Channel News Asia...

Real estate fund manager ARA to sell 205m shares in IPO

Singapore Ascott Group Ltd invests in two properties in Beijing & Tianjin, China

Singapore-listed company, The Ascott Group Ltd., which deals in serviced residence units, announced that it has acquired two new properties in China for RMB 768.7 million inclusive of development costs.

The two properties – one in Beijing and the other in Tianjin – will add 422 units to Ascott’s existing portfolio in China bringing the company’s total number of units to over 3,400 in 18 properties. Ascott plans to triple its portfolio in China to reach 10,000 units by the year 2010.

“Since Ascott’s entry into China about 10 years ago, we have made an accumulated investment of over RMB 3.2 billion. The additional investment in these two new properties brings our total investment in China close to RMB 4 billion,” Ascott Managing Director and CEO Cameron Ong said in a press release.

Singapore drawing more foreign investors

SINGAPORE: When real estate developers visit new markets around the world, they generally view the trip as an investment in the future rather than an effort to actually sell anything.