Author: PropInvestSG

Blog: How to upgrade from your HDB to a executive condominium (EC)?

Rivercove Residences balloting day In this blog series, we invite real estate industry professionals to share their personal experiences. Names and identifying details have been changed to protect the privacy of individuals. In December 2017, I received an enquiry from a client by the name of Claire. She and her husband had just met their 5 year minimum occupancy (HDB) at their HDB in Fernvale and wanted to upgrade from their HDB to a condo. Eventually after much deliberation, they decided to try for Rivercove Residences. In the context of Singapore public housing, an executive condominium caters to a...

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5 reasons why the upcoming 2019 Punggol EC on Sumang Link will be another sell-out

Sumang Link EC is near the Punggol Waterway Sumang Link EC Land Parcel details The top bid of S$509.37 million for the Sumang Link EC site was won by City Development (CDL) and TID Residential. This works out to a record S$583 per square foot per plot ratio, which translates to a selling price of above S$1,000 per square foot. Launching in 2019, it is likely to be the only executive condominium (EC) to be launching in 2019. We explain the 5 reasons why it will be another sell-out like Rivercove Residences, which was fully sold out in a...

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Blog: Can divorcees purchase BTO/executive condominium (EC)?

Can divorcess get an EC/BTO? In this blog series, we invite real estate industry professionals to share their personal experiences. Names and identifying details have been changed to protect the privacy of individuals. As a real estate agent, I face different client scenarios daily. I had a client by the name of Ms C, who approached me in January 2017. She was initially rather secretive at first but after much follow up, she revealed that she is going through a divorce and has intention to sell her share of her current HDB flat to her ex-spouse. At that point...

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Frasers property €285m logistics acquisition and Sydney mansion’s record breaking A$100m price

Frasers Property Ltd. completed the acquisition of a 94% stake in AI Gewerbepark Tamm GmbH, marking the closing of a €285.2 million deal signed in February for a portfolio of properties in Germany and Austria. The first phase of the acquisition closed in July, involving the 100% stake in Alpha Industrial GmbH & Co. KG and half of the 22 assets included in the agreement. Also read: Frasers recurring income supporting the stock AI Gewerbepark Tamm GmbH’s investment property is located in the German municipality of Tamm and covers 39,220 square meters of gross leaseable area, according to a...

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Capitaland and Ascott make major acquisitions in Tauzia and US multifamily properties

CapitaLand (CAPL) acquires US$835m (S$1.14b) US multi-family portfolio of 3,787 multifamily apartments (average price: US$220,000/unit) across suburban communities in Seattle, Portland, Greater Los Angeles and Denver. The acquisition is in-line with CAPL’s strategy to diversify outside Singapore and China to developed markets and to grow new businesses. CAPL also anticipates value enhancement to the properties. The consideration would be funded by CAPL’s internal resources. Pro-forma impact to EPS and NAV/sh is not expected to be material. Potential upside from the portfolio growth include the option to spin off the assets into investments vehicles and partnerships, and also to build...

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Slow new condominium sales in August 2018 (CIMB)

Aug private home sales showed selective buying post cooling measures, in our view. We think that fast asset turn and good sell-through rates are key to margin preservation. Stay sector Neutral. Our sector top picks are City Dev, UOL and HoBee Land. Aug monthly private home sales came in at 639 units (616 units excluding executive condominiums), down 60% yoy and 64% mom, reflecting a much quieter residential market post cooling measures. New launches such as The Tre Ver garnered 22% sales (out of a total of 729 units) within the first month of launch at an average of...

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Myanmar’s failed property boom: what really happened

“If I could put all my money into Myanmar, I would,” veteran U.S. investor Jim Rogers declared in 2012. Rogers, who co-founded the Quantum Fund with hedge fund billionaire George Soros, has lived in Asia for many years and knows a bargain when he sees one. When Myanmar opened up to the world after decades of military rule, hopes were high that democracy would be restored and the economy invigorated. From tourism to telecoms, business opportunities abound as industries that had long languished in the absence of private competition were roused out of their slumber. Local consumption soared amid...

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HDB resale prices rise 0.1% in Aug compared to July 2018

According to SRX’s price index, HDB resale prices rose 0.1% on month in August compared to July 2018. The increase marks a reversal of 2 months of decline (-0.2% in May to June and -0.3% in June to July). Nevertheless, resale prices are down 1.6% in Aug 2018 compared to the same period last year (2017 Aug index: 134, 2018 Aug index: 131.8), on the back of cooling measures imposed on the private property market which has hit sentiment in the entire housing market. On a flash basis, HDB resale volume has also dropped in Aug 2018 compared to...

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Key takeaways from Dasin Retail Trust’s Phillip Capital presentation

Dasin Retail Trust, a China retail focused real estate trust, recently held an investor presentation for clients of Phillip Capital. Here are the key takeaways from the presentation. Geographic focus Dasin Retail Trust’s focus is on the Guangdong-Hong Kong-Macau Great Bay Area. According to the REIT manager, this bay area is comparable to the San Francisco bay area, New York City bay area and Tokyo Bay area. At a GDP growth of 7.9% in 2016, the Guangdong-Hong Kong-Macau Great bay area has the greatest growth among the four bay areas. In addition, the bay area is one of China’s...

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Frasers Property recurring income supporting the stock

FPL’s 3QFY18 core PATMI of S$157m (-13% YoY) came in above estimates, due to faster-than-expected recognition of development profits in Singapore. Net gearing improved 6%pts QoQ but remains high at 89% and suggests that more properties are likely to be injected into its listed S-REITs. Also read: Parc Esta new launch cond (former Eunosville) up for sale On the residential front, volumes jumped 35% QoQ to 897 units. The recurring-income segments posted a mixed performance this quarter, with Singapore office seeing negative reversions and Hospitality SBU posting a 2nd quarter of net loss but solid occupancies in its Singapore...

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Capitaland 2Q2018 results

Capitaland released a respectable set of results for 2Q2018. The following are excerpts from various equity research houses on the company’s performance. CapitaLand reported 2Q18 net profits of S$605.5m, EPS of 14.4cts, +5.1% YoY. Core net profit of S$196.0m (-5.6% YoY) was below our expectation of S$226m, due mainly to lower residential profit recognition. Result highlights. Core profits was underpinned by higher contribution from newly acquired or opened malls and offices. Active asset recycling, with S$1.8bn of new investments and S$3.1bn of divestments (which surpassed the S$3bn target for this FY). Net revaluation gains lifted book value +4.1% to...

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Tre Ver likely to spearhead recovery for UOL group

UOL’s 2Q18 core PATMI of S$94.1m (-6% YoY) came in slightly below projections/consensus, which is attributed to the uneven recognition of profits from development property. We estimate that sold residential units surged 5x QoQ, to 145 units, helped by solid sales at 62%-sold Amber 45. Despite cooling measures, UOL has not changed its launch schedule for the three upcoming projects, which we believe is due to their competitive cost. While the contribution from OneKM fell, the proposed AEI should reposition it as one of the beneficiaries of the rejuvenation of Paya Lebar Regional Centre, spearheaded by the upcoming Paya...

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Keppel corp tie up with Vicinity, Manulife REIT DPU declines, LOGOS acquisition of an industrial building

Keppel Corporation’s (KEP) 100%-owned asset management arm, Keppel Capital Holdings (KCH), has entered into an MOU with leading Australian retail property group, Vicinity Centres (VCX), to establish a new retail-focused private fund, which intends to invest in an initial A$1b portfolio of Australian retail properties across five Australian states currently owned by VCX. KCH and VCX will manage the fund via a 50:50 JV, while each party is expected to initially hold up to a 10% equity stake in the fund, which is targeted to close by 1Q19. The fund’s investment strategy is to own, acquire and grow a...

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Tre Ver sold about 140-150 units over the weekend

The second project to be launched after 5-Jul-18’s cooling measures, The Tre Ver, sold 140-150 units during its first weekend of launch, with average pricing of S$1,500-1,600 psf in line with our estimates and should yield a solid PBT margin of 17-22% for UOL. However, we are slightly disappointed at the take-up, given over 300 cheques collected beforehand and its competitive pricing vs. recently launched Park Colonial. We believe prospective buyers are maintaining their wait-and-see approach, with an eye on two upcoming nearby launches (Jadescape and Jui Residences) which have a lower land cost and imply an even lower...

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Singapore property intelligence report

The following is an excerpt from JP Morgan’s daily property intelligence report covering key developments in the property market. The Competition & Consumer Commission of Singapore (CCCS) has issued a proposed infringement decision (PID) against the owners and operators of certain hotels in Singapore, in relation to the alleged discussion and exchange of confidential, customer-specific and commercially sensitive information (in connection with the provision of hotel room accommodation in Singapore to corporate customers) with intention to reduce competitive pressures on prices and contract terms. The infringement took place before 30-Jun-15 and the parties have six weeks from 2-Aug-18 to...

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