Singapore's property glut could take years to clear

(Dec 9): Singapore has a property glut that could take years to clear, threatening to kill a nascent price recovery amid an already uncertain economic outlook.

The city-state had an overhang of 31,948 units as of Sept 30, according to the Urban Redevelopment Authority. Sales have averaged about 2,500 homes per quarter this year, and at that rate it will take almost four years to clear the backlog, according to Christine Li, head of research for Singapore and Southeast Asia at Cushman & Wakefield.

Property and banking sectors stable amid economic slowdown, but concerns remain, says MAS

SINGAPORE (Dec 2): The Financial Stability Review (FSR) released by the Monetary Authority of Singapore on Nov 28 highlights the risk of an economic slowdown, but this has not caused systemic problems and unemployment remains in check. Still, given slowing GDP growth this year, MAS says labour demand could moderate in the near term.


Further upside to property-related companies on the way, says KGI

SINGAPORE (Oct 21): In September, new home sales reached the highest monthly sales since July 2018, when the latest round of property cooling measures came into effect.

According to data released by the Urban Redevelopment Authority (URA), developers sold a total of 1,270 private residential units, which represented a 13% m-o-m and 36% y-o-y increase.

Top Global to acquire 43 units in Thong Teck Building for $170 mil

SINGAPORE (Sept 2): Top Global, the property developer and hospitality and facility manager, will acquire 23 freehold commercial strata-titled lots with 43 property addresses in Thong Teck Building at 15 Scotts Road.  

The total purchase consideration of $170 million will be funded fully in cash, through a combination of bank financing and internal cash resources.

Wing Tai FY19 earnings down 79% to $46.8 million on lower revenue and contributions from development properties

SINGAPORE (Aug 27): Property group Wing Tai holdings reported FY19 earnings of $46.8 million, down 79% from $225.2 million recorded at the end of FY18.

Group revenue for the year fell 10% to $322.6 million from $360.4 million the preceding year, due primarily to lower contributions from development properties. FY19 revenue was bolstered by the additional units sold in Le Nouvel Ardmore in Singapore and the increase in property sales in Malaysia.

In line with the above, gross profit for the year fell 20% to $147.8 million from $183.7 million the previous year.  

REIT managers welcome MAS consultation paper, question hangs over classification of perpetual securities

(July 15): On July 2, the Monetary Authority of Singapore published a consultation paper to consider raising the regulatory gearing limit (debt-to-asset ratio) for real estate investment trusts from the current 45%, and to introduce a minimum interest coverage ratio (ICR). 


Thakral adds another Osaka office building to portfolio

SINGAPORE (July 1): Thakral Corporation has acquired another commercial property in Osaka, Japan – the Nikke Yotsubashi building.

The latest investment increases Thakral’s portfolio of real estate investments in Japan to 11 properties. The properties cover three hotels and eight commercial/office buildings in Osaka, the second biggest metropolis.

The big threat to Hong Kong's property billionaires

SINGAPORE (June 10): Can Hong Kong’s billionaire heirs keep their grip on the city? Given Beijing’s increasing assertiveness in the territory, it is a question worth asking. For the past five decades, Hong Kong’s family dynasties have controlled the city’s riches, largely thanks to their hold on some of the world’s most expensive real estate. Hong Kong has more ultra-rich individuals than any other city in the world — and eight of its 10 richest men (yes, they are all men) are directly involved in the property sector.


OCBC says Soilbuild REIT has undemanding valuations, but still lacks catalysts

SINGAPORE (May 31): OCBC Investment Research is maintaining “hold” on Soilbuild Business Space REIT (SB REIT) with an unchanged fair value of 62 cents as the REIT continues to await rent payment due from its master lease tenant, NK Ingredients.

To recap, the distressed lanolin manufacturer is in the midst of restructuring.

Why RHB remains positive on APAC Realty despite 1Q earnings miss

SINGAPORE (May 29): RHB Research is reiterating its “buy” call on APAC Realty while lowering its target price on the stock to 67 cents from 72 cents previously after cutting FY19-21F earnings to account for reduced private resale volume assumptions.

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