Singapore’s condo market suffered from a lack of visitors under COVID restrictions
Slower home sales in Singapore lead today’s collection of real estate headlines from around Asia, as COVID-19 restrictions gave the city’s condo resale market the chills during May.
Highly leveraged mainland developer China Evergrande also continues to get attention as the company promises to pay up on overdue debts, and Lawrence Ho’s Melco is hoping to cash in on a car-park boom in Hong Kong.
SG Secondary Condo Sales Fell 11% in May as COVID Restrictions Bite
Fewer home viewings resulting from tighter restrictions during Singapore’s heightened alert period saw condominium resale volumes slide 11.4 per cent month on month in May, property analysts noted on Tuesday.
About 1,722 units changed hands in the month, compared with 1,944 units resold in April 2021, according to flash figures from real estate portal SRX Property. Read more>>
Evergrande Says It Is Arranging Payment for Unpaid Commercial Paper
China’s most indebted property developer Evergrande Group said on Monday that it was arranging payment for some of its project companies’ commercial paper that had not been repaid on time.
In a statement, Evergrande said the amounts involved were “very small”, but that it attached great importance to the matter and was arranging payment. Evergrande’s debt problem has become a major investor concern since a leaked document in September showed the developer sought government help to avert a cash crunch. Read more>>
Evergrande Promotes Leftover Homes to Raise Cash
Debt-ridden real estate developer China Evergrande yesterday clarified that its recent promotions were only available for leftover stocks, adding that the group’s operations were going well.
The preferential deals offered during the annual 5.11 House Buying Festival were limited to large units, bottom and top floors, shops and other products that had a single-building sales rate of more than 95 percent, according to the developer. No adjustments were made to the selling prices, discounts and payment methods of all conventional products, it added. Read more>>
Suntec REIT’s $113.3M Perpetual Notes Priced at 4.25%
The trustee of Suntec REIT has priced S$150 million of subordinated perpetual securities at 4.25 per cent per annum, for five years from June 15, the Reit manager announced in a Monday night bourse filing.
After the first reset date of June 15, 2026, the new rate will be equivalent to the Swap Offer Rate, its successor rate, or if there is no successor rate, an alternative reference rate, with respect to the reset date plus the initial spread of 3.29 per cent. Read more>>
ULI APAC Forecast Sees Strong Economic Rebound in 2021
The Asia Pacific region’s key real estate markets are likely to witness a sustainable and resilient recovery in the next three years, bouncing back from recent weakness triggered by the spread of COVID-19, according to the inaugural ULI Real Estate Economic Forecast report for the region.
China is forecast to lead the pack with 8.75 percent growth in its real gross domestic product (GDP) in 2021, followed by Singapore (6.1 percent), Hong Kong (4.7 percent), and Japan (3.0 percent). While economies in the region are expected to grow at a slightly slower pace in 2022 and 2023, signs of continuing recovery remain as unemployment rates are expected to continue trend Read more>>
Lawrence Ho’s Melco Puts Hong Kong Car Park on the Market for $64.5MÂ
Melco International Development, the owner of the iconic Jumbo Kingdom floating restaurants, is seeking to sell an eight-storey car park in Hong Kong, as renewed speculative interest in vehicle parking bays amid record prices created a second chance to divest the asset.
The Jumbo Court Carpark, owned by Melco’s subsidiary Aberdeen Restaurant Enterprises and attached to a residential building near the Wong Chuk Hang subway station, has the capacity for 509 cars. Melco, chaired by Lawrence Ho Yau-lung of the Macau clan that dominates the world’s largest casino market, has set a guidance price of HK$500 million (US$64.5 million), according to the sole sales agent Savills on Monday. Read more>>
Retailers Lock In Hong Kong Leases at Cheaper Rents
Retail rents in some of Hong Kong’s main shopping districts have fallen to levels last seen in 2003 – and this has prompted some to lock in long-term leases for street shops.
Rents in Central, Causeway Bay, Tsim Sha Tsui and Mong Kok, four of Hong Kong’s major shopping areas, have returned to 2003 levels, when the city’s retail sector largely relied on local spending. Read more>>
Cromwell E-REIT Acquires Czech Republic Logistics Asset for US$12.29M
Cromwell European Real Estate Investment Trust has acquired a Czech logistics asset from an affiliate company of its sponsor for 10.1 million euros (S$16.4 million).
The freehold single-storey logistics building with a two-storey office section is less than three years old. It spans 8,382 square metres on a site area of 31,557 square metres, with its external areas accommodating 168 outdoor parking spaces, the manager said in a bourse filing on Monday. Read more>>
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