Author: PropInvestSG

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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Business as usual for OUE commercial REIT

The following is an excerpt of a research report from CIMB. 2Q/1H18 DPU of 1.06 Scts/2.18 Scts was in line with our estimates, at 24%/49% of our FY18 forecast. Slight dip in committed portfolio occupancy to 95.2%. OUEB and LP enjoyed positive rental reversion on the back of rising spot rents. Maintain Hold with unchanged TP of S$0.75. OUECT reported a 2.6% yoy decline in 2Q18 revenue to S$43.1m dragged by lower committed portfolio occupancy of 95.2% and negative rental reversions at One Raffles Place (ORP). Distributable income fell a greater 7.5% yoy to S$16.5m, further eroded by higher...

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Property news round up 22 Jul 2018

Latest curbs could see developers lower prices up to 10% DEVELOPERS may trim prices of new launches by as much as 10 per cent from their earlier indications in response to the latest round of property cooling measures, with high-end homes likely to see bigger adjustments, analysts say. In downgrading their stock ratings across several developers, some have started pricing in a 5-10 per cent reduction in average selling prices (ASP) in their forecasts, though they note that it is too early for any developer to consider writedowns on their projects yet. Maybank Kim Eng property analyst Derrick Heng,...

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Property news round up 15 July 2018

MILLENNIUM & Copthorne (M&C) will continue its core strategy of owning hotels, says the company’s new group chief executive. Speaking to The Business Times days into her new role, Jennifer Fox said growth for the London-listed hotel chain will be powered by acquisitions, management contracts and improving hotel performance. M&C is also looking into acquiring hotels in what are yet untapped markets for the group, such as Australia and parts of the United Kingdom, as well as key American gateway markets such as Miami. THE timing of the additional cooling measures came as a surprise on Thursday, as developers...

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Increase in non-landed and HDB resale flat prices in 2Q2018

The URA and HDB released flash estimates of property price changes for the second quarter 2018. URA reported that the private residential property price index rose to 149 from 144.1 in the previous quarter, or a 3.4% growth. The increase for non-landed private properties was highest compared to the previous quarter in the Rest of Central Region (RCR) at 5.7%, followed by the Outside Central Region (OCR) at 2.9% and 1.4% in the Core Central Region. Overall, non-landed prices rose 3.3% compared to the previous quarter. Compared to the same quarter last year, non-landed CCR prices rose 8.6%, RCR...

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Property news round up 1 July 2018

GLOBAL real estate giants JLL and Lendlease are partnering to launch an accelerator in Singapore to kickstart innovation in real estate, an industry said to have been slow to tech advancements. But unless both companies commit to a substantial investment and a long-term plan to “transform legacy businesses”, the accelerator will yield limited benefits, observers said. Propell Asia – described as the first Singapore-based regional property technology (proptech) accelerator – opens for applications on Monday. SOLAR panels are set to be installed in blocks of public flats managed by the West Coast and Choa Chu Kang town councils, in...

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CapitaLand Commercial Trust’s sale of Twenty Anson for S$516m

CapitaLand Commercial Trust (CCT) announced this week their sale of Twenty Anson, at 20 Anson Road Singapore 079912, to an unrelated third party. At a price of S$516 million, the property is 19.2% above the property’s valuation of S$433 million. The sale price represents S$2,503 psf on the building’s net lettable area of approximately 206,000 sqft. This represents a sizable profit to CCT, considering the purchase of the property was less than 10 years ago, in 2012. On 22 Feb 2012, CCT announced the acquisition of Twenty Anson which was valued at S$431 million. Even though the absolute profit...

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Recent en bloc deals in the Singapore market

The en bloc market continues its run with a number of projects being marketed, latest of which is Dalvey Court which is up for S$160m. The reserve price of S$160m for the 32 unit apartment in District 10 represents a land rate of about S$2,009 per sqft per plot ratio. The project’s gross floor area of 7,401 sqm or 79,660 sqft can be redeveloped into an apartment with 93 units, each of which is assumed to have a unit size of 70 sqm. Located close to Botanic Gardens, Dalvey Court is near a stretch of high-profile schools such as...

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Property news round up 24 June 2018

ASCENDAS Hospitality Trust has on June 15 entered into an agreement with ES-CON Japan via Ascendas Hospitality Real Estate Investment Trust (A-HReit) to acquire three hotels in Japan’s Osaka city for a purchase consideration of 10.29 billion Japanese yen (S$126.1 million). The manager of the hospitality trust said that the acquisition of the three hotels – Hotel WBF Kitasemba West, Hotel WBF Kitasemba East and Hotel WBF Honmachi – will deepen its presence in Osaka, Japan’s third-largest city with a population of 2.7 million people. The total acquisition cost is about 11.24 billion yen, comprising the purchase consideration, 102.9...

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Increase in new private home sales in May

The number of new private homes sold in May jumped 53.1% compared to April and 7.9% compared to the same month last year, according to information released by the Urban Redevelopment Authority (URA) on Monday, 18 June. Developers sold 1,121 private homes in May 2018, excluding executive condominiums, compared with 732 units in April. The number of units sold was also the highest since August 2017, when 1,246 new private homes were sold. Including ECs, 1,257 units were sold in May, a slight drop from 1,328 sold in April and lower than 1,416 sold in the same month last...

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Property news round up 17 June 2018

EL Development has signed a memorandum of understanding with Accor for the French hotel chain to manage a new hotel that the Singapore property developer will build in Hill Street. Accor will manage the hotel under its Pullman brand – this will be the first Pullman in Singapore, EL Development managing director Lim Yew Soon told The Business Times in a recent interview. “Singapore is one of the major cities left in Asia where Accor has yet to have a Pullman… when Singapore is its Asia-Pacific headquarters,” he noted. MALAYSIA will investigate the Battersea Power Station deal and other...

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SRX: Non-landed private rents and HDB rents increase 0.2% in May 2018

According to SRX, the rental index for non-landed private residential units rose 0.2% in May 2018 compared to April 2018. In terms of rental volume of private non-landed residential units, overall numbers have fallen to 4,674 in May 2018 compared to the previous month (4,831) and the same month last year (4,929). The average number private non-landed residential leases inked over the last 12 months is approximately 4,880 per month. Also read: APAC Realty a good stock to invest in? The highest number of rental deals continue to be inked in the Outside Central Region (1,610 in May 2018),...

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Review of APAC Realty Limited

APAC Realty is one of the leading players in the real estate brokerage industry in Asia. APAC Realty operates three main business segments – the real estate brokerage services; franchise agreements; and training, valuation and other ancillary services. In this post, I share more about the business model, recent developments related to the company and my views on the stock. Basic information APAC Realty traded at S$0.89 as of 8 June 2018. The peak was at S$1.26 on 9 Mar 2018 and was priced at S$0.78 during IPO on 29 Sept 2017. The present share price is 14% higher than...

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Property news round up 10 June 2018

TWO property launches in Serangoon over the weekend garnered good response, testament to the still-improving sentiments in the residential property market, despite the fact that both projects were located just couple of hundred metres apart from each other. Affinity at Serangoon by Oxley Holdings, to be constructed on the former HUDC estate Serangoon Ville site, sold 112 units out of the 300 that were launched in its phase one. Oxley’s director of marketing and sales Eugene Lim said that the transacted units were spread evenly across various configurations – from one-bedders to four-bedders-plus-study apartments. AFFINITY at Serangoon, a development...

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