Author: PropInvestSG

Property news round up 18 Feb 2018

SASSEUR Group, a Shanghai-based developer and operator of outlet malls, which last year pushed back plans for a Reit listing here, has begun gauging investor interest again with plans to list Sasseur Reit in March. The initial public offering (IPO) could raise between S$500 million and S$600 million, and Sasseur Reit would have a market cap of S$1 billion upon its debut, according to a term sheet seen by The Business Times. Based on the latest indicative timeline, the IPO prospectus will be lodged on March 1, ahead of the listing on March 29. THE freehold Pei Fu Industrial...

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Non landed residential prices grow 1%

Singapore’s non-landed residential house prices grew 1% in Jan 2018 compared to Dec 2017, based on SRX’s price index. Compared to the same period last year, non-landed residential prices in Jan 2018 grew 6.3%, continuing to build on a housing market recovery and strong momentum. Rest of central region prices grew fastest Broken down into regions, prices in the Rest of Central Region grew fastest compared to the previous month of Dec 2017 at 1.4%. This was followed by 1.2% in the Core Central Region and 0.6% in the Outside Central Region. Also read: Proptech taking over the industry Compared...

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Singapore office market rents grow 3.4%

Based on research on the Singapore office market by Cushman & Wakefield, rents have grown 3.4% on a quarterly basis to S$9.2 psf per month. This was supported by Singapore’s economy growing 5.2% in 3Q2017 compared to the same period last year. This is higher than 2Q2017’s growth of 2.9% compared to the same period last year. A further look into the components of GDP growth show that the finance & insurance sector grew 5.9%, driving the country’s overall GDP growth. The office market is now in the landlord’s favour with newly completed projects enjoying high occupancy rates. Major...

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Rental recovery in Singapore’s prime office market

Based on Knight Frank’s fourth quarter report in 2017, prime grade office rents have risen for three consecutive quarters on the back of active leasing activity. Grade A+ office space rents increase 1.7% on a quarterly basis in the Raffles Place / Marina Bay precinct measured by Knight Frank. Landlords are gradually adjusting rents upwards in view of the limited new supply of prime offices being completed up to 2020. Gross effective monthly rents in S$ psf per month basis are recorded between S$9.3 to S$9.8. In the Raffles Place / Marina Bay Grade A segment, rents also increased...

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Mixed performance of Asia pacific’s residential market

Based on JLL’s fourth quarter 2017 report on the luxury residential market in Asia Pacific, there was a mixed performance. Of the eight markets covered by JLL, only three saw quarterly price growth in excess of 1.0%. In Shanghai, sales volume in the high end market contracted in the quarter as higher mortgage rates and down payments reined in demand. In Beijing, sales in new projects bolstered luxury sales. Overall however, the tight policy environment is persisting. In China, initiatives to promote greater housing affordability and development of the leasing market remained a central theme. Some governments offered land...

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Decline in new home sales reported by OrangeTee

According to OrangeTee, new residential home sales for the month of December was down 45.3%. The main reason was due to seasonal factors and the absence of major launches. However, volumes for the month are still higher on a yearly basis, up 17.4% compared to 2017’s full year volume. Symphony Suites was the top seller for December, moving 50 units at a median price of S$1,027 psf. Parc Riviera came in second with 44 units transacted at a median price of S$1,223 psf. Private residential developer sales   Looking forward, OrangeTee foresees primary sales volume to increase in January...

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Increasing number of property agents

According to CEA, there has been an increase in the number of property agents from 2017 to 2018. As at Jan 2017, there were 28,397 property agents. The number rose to 28,571 as at Jan 2018 or a 0.6% increase. On the other hand, the number of estate agencies declined from 1,286 as at Jan 2017 to 1,269 as at Jan 2018. This is a 1.3% decline. In the face of real estate market that has slowed over the last 5 years, the number of agents declined between Jan 2016 and Jan 2017. I think the recent uptick is...

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Proptech taking over the property industry

The CEA put out a press release on 8 Feb announcing that the real estate agency industry will be further regulated. The key point in the announcement is the publishing of property agents’ transaction records. This will be done in phases. Transactions for HDB flats will be the first phase to be completed by end 2018 while private property transactions will be available by the end of 2019. I think this is a big wake up call to property agents as the collective power of the consumer will be used to police them. I think it likely that rogue...

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SRX HDB price report for the month of January

SRX figures show that resale volume in the HDB market has dipped from 1,587 units transacted in Dec 2017 to 1,089 in Jan, based on flash estimates. This represents a 31.4% decline, the largest in magnitude over the last 12 months. The resale price index has also fallen to 132.6 in Jan 2018 from 133.2 in Dec 2017. This represents a month on month decline of 0.5%. Compared to a year ago when the resale price index was 135.1, prices have fallen 1.9%. The trend of declining HDB resale flat prices continues. With prices and volume both declining, it...

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How to read a REITs financial results presentation

How do I read the financial results of REITs? Many investors have such a question and it is legitimate. Nobody wants to part with their hard earned money without understanding what they are investing in Furthermore, with the proliferation of REITs on Singapore’s stock exchange, there has never been a better time to invest in a REIT than now. Spoilt for choice, investors can choose among REITs that invest only in Singapore, across Asia, only in China, only in the USA, only in Data Centres and many other asset classes and geographies. So what are the few things an...

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Singapore property price changes for new sale non-landed properties over the last 10 years

Just out of curiosity, I wanted to see how the prices of new sales (developer launches) have moved across different districts in Singapore over the last 10 years. The product of that short but tedious exercise of compiling charts has produced the following. All the information was obtained from Squarefoot research. The charts show Average prices of non-landed residential new sales Number of units sold in each month Over the last 10 years For some districts such as 6 (High Street, Beach Road, City Hall and Clarke Quay), there weren’t many new launches over the last 10 years so...

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Property news round up 4 Feb 2018

Rail Mall owners seeking buyers RAIL Mall, a stretch of shopping and dining outlets in a rustic part of Upper Bukit Timah Road, has been put on the market. Besides 43 road-fronting units, the 105,561 sq ft site also comes with 95 carpark lots. Ku Swee Yong, chief executive of International Property Advisor, said the development could be worth S$30 million, or about S$300 psf of land area. According to newspaper advertisements put up last week, it has a lettable floor area of 49,766 sq ft and comes with 28 years left on its lease. The property is held...

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Buying property in Singapore as a foreigner

So you’ve decided to head to the little red dot that is Singapore to work, settle down and stay for the foreseeable future. If you’re looking to buy a house, that might be a good choice if you’re staying for more than a few years. With the money put into an appreciating asset, you would save more than, as they say in Singapore, coffee money over a period of a few years. But where do you get started since you’re not a Singaporean? What rules, regulations and laws do you need to observe? Here’s a quick guide on what...

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How is the SIBOR determined, calculated and set?

The SIBOR rate is one of the most widely followed interest rate benchmark in Singapore due to the fact that practically all mortgage loans are priced off it. A small move up or down in the SIBOR rate has the potential to impact not just a few hundreds of millions of Singapore dollar denominated loans but a few billion. Here’s a quick primer on the calculation methodology for those who are interested in knowing how the SIBOR is really set, and I’m sure the Monetary Authority of Singapore (MAS) keeps tabs on the banks to make sure none of...

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HDB resale prices continue falling

HDB released their fourth qurater 2017 property market information and the Resale Price Index tracked by them showed a fall of 0.2% on a quarter on quarter basis and a fall of 1.5% on a year basis. The quarterly decline is less negative than the -0.7% registered in 3Q2017, but the decline of 1.5% on a yearly basis is the most severe since 4Q2015 when prices fell 1.6% y-o-y. Between 4Q2013 and 4Q2017, there has been only one quarter of positive yearly increase in 3Q2016, and that was for only 0.1%. Between the peak index reading of 149.4 in...

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