Singapore property sector

This research house has an unbearish view of local residential property market

SINGAPORE (Feb 11): Jefferies expects Singapore’s non-landed private residential price index to stay flat this year given rents are expected to improve about 2%, the supply pipeline is half of what the sector saw back in 2013 and resident population growth has been steady and the economy is witnessing net job additions.

Property launches continue unabated despite new curbs

SINGAPORE (Oct 23): Despite the new property development policies, City Developments and Oxley debuted their latest properties, Whistler Grand and Kent Ridge Hill Residences respectively, last weekend.

The two projects are targeted to launch officially on Nov 3. As at 1.20pm, shares in City Developments are trading at $8.15, while shares in Oxley are trading at 30 cents.

In a DBS report on Tuesday, The Whistler Grand at West Coast is expected to have an average price of $1,380 psf, while Kent Ridge Hill at Pasir Panjang is expected to cost about $1,700 psf.

RHB remains 'neutral' on Singapore property sector on expected slower volumes

SINGAPORE (Aug 16): RHB is remaining “neutral” on the Singapore property sector on muted growth in property price in the coming months, impacted by the recent cooling measures. 

The research house has a “buy” call on its top pick, CapitaLand with a target price of $3.95, as it remains minimally impacted by the recent cooling measures, and benefits from the continued build-up in its recurring income base and diversified exposure.

Singapore property market may be strong, but how about developer stocks?

SINGAPORE (Apr 18): According to Deutsche Bank, the Singapore property market continues to show strength.

The research house has picked City Developments (CDL) and UOL Group as its top buys.

On Apr 12, Yanlord announced that the group and Hong Kong Land Holdings’ MCL Land have jointly won the tender for the en bloc sale of Tulip Garden with a bid of $906.9 million.

Private residential prices, REITs to see strong sequential growth ahead: Jefferies

SINGAPORE (Apr 4): Singapore’s property sector will see a strong growth, especially in its private residential prices and real estate investment trusts (REIT), according to Jeffries.

The Urban Redevelopment Authority (URA) estimates that the private residential property price index increased 4.3 points from 138.7 points in 4Q17 to 143.0 points in 1Q18, representing an increase of 3.1%, compared to the 0.8% increase in the previous quarter.

This recovery is led by prices of prime properties.

Lower primary home sales volume in Feb no cause for worry, says CIMB

SINGAPORE (Mar 16): CIMB Research is keeping its “overweight” rating on the Singapore property sector, despite primary home sales volume tumbling 61% to 377 units in Feb 2018, from 469 units a year ago.

“We think this was largely due to the lack of new launches amid the [Chinese New Year] lull,” says analyst Lock Mun Yee in a report on Thursday. The Lunar New Year festivities fell in mid-February in 2018, compared to late-January last year.

Will higher land sales translate to higher home prices?

SINGAPORE (Nov 8): Lawrence Wong, Minister of National Development said on Monday that a surge in en bloc sales and higher prices achieved from land sales does not necessarily lead to higher selling home prices.

Instead, this will depend on the supply and demand factors when the projects hit the market.

Wong also says that an additional Buyer Stamp Duty (ABSD) will be payable if developers do not manage to sell their project within five years.

Home sharing may be why Singapore hotel receipts aren't growing in tandem with tourist arrivals

(Oct 12): Sizing up the home-sharing industry in Singapore has become the economist’s puzzle as the aspiring “Smart Nation” grapples with resistance to next-door strangers.

Despite government rules restricting the likes of Airbnb operating in Singapore, there are signs that home-sharing has become more prolific in the city state. Residents’ complaints about short-term rentals for private homes have climbed this year, while a surge in tourist arrivals isn’t being mirrored in hotel receipts, indicating more visitors may be staying in private homes.

En bloc sale committee, your window of opportunity won't last long, says Donald Han

SINGAPORE (Oct 6): Donald Han, a veteran property consultant and managing director of Hospitality Strategies Asia Pacific, has noticed lots of “old and smart money” pouring into prime property in Districts 9 and 10 recently.

This implies a growing expectation that property prices in Singapore have hit bottom after 15 straight quarters of decline.

By Han’s reckoning, there are 10 to 12 developers at any given time that can raise more than $1 billion each to pursue development sites.

Increased DC rates reduce profitability for recent en bloc transactions

SINGAPORE (Sept 12): The Singapore government in September raised the development charge (DC) rates for non-landed residential by 18.8% on average due to the euphoria seen in land transactions, according to DBS.

All except two sectors have already increased their rates by 6-29%.

In a Tuesday report, analyst Rachel Tan says, “We believe the higher rates might impact en bloc transactions which have not been granted Provisional Permit (PP) before September 1, 2017, thus raising land costs.”

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