For residential sales, the portion of the value in excess of S$1.5 million will be taxed at least 5 percent
In today’s roundup of regional news headlines, Singapore enacts a fresh round of tax hikes on property purchases to raise extra revenue for the city-state’s coffers, and sovereign fund GIC reportedly has second thoughts about private investments in China.
Singapore Raises Buyer’s Stamp Duty for Property Purchases
Singapore on Wednesday will introduce a higher marginal buyer’s stamp duty for higher-value residential and non-residential properties, Finance Minister Lawrence Wong said in his Tuesday budget speech.
For residential, the portion of the value of the property in excess of S$1.5 million ($1.1 million) and up to S$3 million will be taxed at 5 percent, while that in excess of S$3 million will be taxed at 6 percent, up from the current rate of 4 percent. For non-residential, the portion of the value of the property in excess of S$1 million and up to S$1.5 million will be taxed at 4 percent, while that in excess of S$1.5 million will be taxed at 5 percent, up from the current rate of 3 percent. Read more>>
GIC Rethinks China Strategy After Significant Pullback
Singaporean sovereign wealth fund GIC has put the brakes on private investments in China as it steps up scrutiny of risks in the world’s second-biggest economy.
GIC, one of the world’s largest investors in private equity funds, has scaled back commitments to China-focused private equity and venture capital funds over the past year, five people with knowledge of the matter said. It has also significantly slowed the pace of its direct investments in private Chinese companies. Read more>>
Hong Kong Property Stocks Sink Over New Security Clause in Land Auctions
Hong Kong’s leader defended the inclusion of a national security clause into the city’s land sales, saying it was the duty of the whole city to protect the country’s interests.
News that the government had added security law requirements to land auctions helped roil shares of major property developers on Monday, with New World Development sinking almost 7 percent. A buyer or the buyer’s parent firms can be disqualified if they engage in activities that endanger national security or affect public order, according to official tender documents. Read more>>
Warburg Pincus Moves Closer to Buying Stake in Chinese Fund Zhong Ou
Warburg Pincus is moving closer to buying a stake in Zhong Ou Asset Management from Intesa Sanpaolo, according to exchange filings and a source, underscoring the US private equity giant’s unabated interest in China’s $3.8 trillion mutual fund industry.
Italian banking group Intesa Sanpaolo disclosed in its 2021 annual report that its board had approved the sale of a 23.3 percent stake in Zhong Ou to Warbug Pincus. It said in the report that the stake was held by former UBI Banca, which Intesa Sanpaolo took over in 2020. Read more>>
GuocoLand Malaysia Posts Higher Net Profit in Q2
GuocoLand Malaysia will continue to focus on monetising its inventories and progressing its development projects for timely completion, it said in a filing with Bursa Malaysia.
The developer said new product launches will be phased according to prevailing market conditions: “The group remains alert to seek out opportunities to increase its landbank.” Read more>>
Paragon REIT Sees Recovery in Tenant Sales to Near Pre-Pandemic Levels
With the easing of COVID-19 restrictions, Singapore-listed Paragon REIT saw a strong recovery in tenant sales to near pre-COVID levels, its manager said in a business update on Monday.
Previously known as SPH REIT, the trust declared a distribution per unit of 1.72 Singapore cents for the four months ended 31 December 2022, unchanged from a year ago. Read more>>
Tokyo Condo Market Shows Early Cooling Signs on BOJ Policy Risks
Tokyo’s condo market is showing early signs of cooling after policy tweaks by the Bank of Japan spurred speculation that mortgage burdens may rise, prompting some homebuyers to think twice before purchasing.
The number of existing apartments up for sale in central Tokyo’s popular bay area rose for two straight weeks in January — the first back-to-back increases since April, according to real estate broker Wangan Mansion Kakaku Navi. Read more>>
Web Werks-Iron Mountain JV Launches Greenfield Data Centre in Mumbai
A joint venture of Web Werks and Iron Mountain on Monday announced the inauguration of its first greenfield data centre in Navi Mumbai, dubbed MUM-2.
Iron Mountain entered into a joint venture agreement with Web Werks in 2021. Read more>>
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