Author: PropInvestSG

Quoting the Urban Redevelopment Authority’s (URA) fourth quarter 2018 housing statistics, Morgan Stanley reports that unsold inventory rose, but they think it is temporary. While vacancies fell faster than they expected, it did not translate into higher rents. Home prices fell 0.1% QoQ in 4Q18. The fall in home prices on a quarterly basis is unchanged following an earlier release on 2 Jan 2019. Non-landed suburb and city fringe prices grew 1% and 2% respectively, in the quarter. Full year 2018 home prices growth was 7.9% and Morgan Stanley thinks it can grow another 5% in 2019 Unsold inventory rose. Unsold...

Singapore’s 3Q18 GDP grew at a slower 2.2% pace, below economists’ expectations of 2.4%, as the manufacturing and services sectors disappointed. The growth figure was also revised downwards from advance estimates of 2.6% and was lower than the 4.1% growth in 2Q18. Manufacturing grew 3.5% in 3Q18, moderating from 10.7% in 2Q18, while services expanded by 2.4% (2Q18: 2.8%). Construction continued its contraction, falling by 2.3% (2Q18:-4.2%). The Ministry of Trade and Industry (MTI) is projecting that the economy will grow by 1.5 – 3.5% in 2019 (2018: 3.0 – 3.5%), with the main growth driver to shift from...

Co-working is not just a new, niche sub-sector. Its rise is a reflection of a changing world of employment, writes Christopher O’Dea “The nature of work is changing. Recruitment, retention, innovation, and productivity now require not just coffee, but also yoga, not just printers, but also art installations.” The above is taken from the homepage of WeWork’s website. The core appeal of co-working is simple: let us handle that for you – front-office reception, utilities, and all the chores related to maintaining office space – so you can focus on your business. The popularity of flexible office concepts in...

In a report by CBRE on third quarter 2018 hotel activity, investment transaction volume was observed to decline as activity was constrained by lack of stock for sale. In summary Korea investment activity recovered as several mid-range hotels change hands amid heightened interest from local and foreign investors Both local and foreign investors see Thailand as an interesting investment destination Shortage of assets for sale in Japan resulted in few small and medium related party deals Quality assets remain tightly held in Hong Kong, resulting in few transactions Sentiment is strengthening in Singapore as hotel performance came in solidly...

Long term interest rates are a key driver of property prices, and a recent report by CBRE in Sept 2018 show a close relationship between real interest rates and property yields. In the report, the authors claim that concerns about rising real and nominal long-term interest rates are overblown. Increase in rates will likely be below the consensus of economic forecasters and they will level off well below pre-GFC levels. Noting a downward trend in property yields for the US since the mid-1990’s, the fall has been closely liked to the fall in real interest rates. CBRE makes a...

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...

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...

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...

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...