Singapore developer showrooms were lonely places in August.
Singapore’s shift from a housing boom to a condo sale bust leads the region’s real estate headlines today as sales of new, private homes in the city-state dropped by nearly two-thirds in August. Also, making the news, JLL thinks the Hong Kong government’s determination to build more homes may make for fewer offices, and there’s much more if you keep reading.
SG Sales of New Private Homes Dropped 64% in September
Developers in Singapore sold 616 private homes last month, making for a 64.3 per cent fall from the 1,724 units they moved in July and a 50.6 per cent drop from the 1,246 units booked in August last year.
The decline comes on the back of a double whammy of property cooling measures that took effect on July 6 and the Hungry Ghost Festival last month, when some would avoid entering into property deals. Read more>>
More Affordable HK Homes May Mean More Expensive Offices
Hong Kong is facing a chronic shortage of grade A office supply that could spell doom for its status as a regional business hub, unless the government accelerates the release of land supply for the commercial sector, according to international property consultants.
JLL said in a report on Tuesday that failing to ensure adequate land supply for office space was a risk as the government shifted its policy focus towards the residential sector. Read more>>
OUE Agrees to Buy Manager of SG-Listed First REIT
Main Board-listed integrated property developer OUE Limited and its listed subsidiary, OUE Lippo Healthcare Limited today announced the proposed acquisition of a 60 percent and 40 percent stake respectively in Bowsprit Capital Corporation Limited (“Bowsprit”), the manager of SGX Main Board-listed First REIT.
The property portfolio managed by Bowsprit was valued at approximately S$1.3 billion as at 30 June 2018. OUE currently through its two REITs, OUE Commercial REIT and OUE Hospitality REIT, has total assets under management (“AUM”) of approximately S$5.7 billion as at 30 June 2018. Read more>>
DBS Kicks Off Coverage of Sasseur REIT With Buy Recommendation
DBS is initiating coverage on Sasseur REIT with a “buy” recommendation and a target price of 91 cents. Sasseur REIT is the first Singapore REIT (S-REIT) with exposure to the fast growing Chinese outlet mall industry, which is expected to grow at a CAGR of 24% between 2016-2021.
Initially, the REIT’s portfolio consists of four outlet malls in China, namely in Chongqing, Bishan,, Hefei and Kunming. Read more>>
Condo Owners in SG’s District 9 Try for S$1.48B Collective Sale
Laguna Park launched its mega collective sale yesterday with a reserve price of $1.48 billion, while two prime freehold residential sites in District 9 near Orchard Road are taking another stab at a collective sale.
The two freehold sites are Grange Heights in St Thomas Walk, which will be put up for public tender for $820 million, and Cairnhill Astoria in Cairnhill Rise, to go for $196 million, said Colliers International. Read more>>
China’s CCCC Hits Roadblocks Along the Belt and Road
China’s CCCC and its subsidiaries have left a trail of controversy in many of the countries where they operate. The company was blacklisted by the World Bank in 2009 for alleged fraudulent bidding practices on a highway contract in the Philippines.
Malaysia halted two rail projects this year amid corruption suspicions. In Australia, a government investigation published in March said that a CCCC-owned company may have been lax in supervising construction of a children’s hospital, where the water supply was tainted with lead and a subcontractor installed asbestos-filled panels—problems CCCC said weren’t its fault. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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