Singapore Home Sales Doubled in September and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Singapore’s home sales rebound to the second-highest level this year, while Sweden’s EQT completes the acquisition of Hong Kong-based Baring Private Equity Asia. At the same time, Chinese junk bonds set a record low, as the mainland property debt crisis shows few signs of a turnaround.

Singapore Home Sales Double Ahead of Latest Property Curbs

Singapore home sales rebounded in September to climb to the second highest this year, bucking economic headwinds that are roiling property markets worldwide.

Purchases of new private apartments surged to 987 units last month, Urban Redevelopment Authority figures showed Monday. That was more than double the two-year low in August, when only 437 units were sold due to a lack of new home launches. Read more>>

EQT Completes Acquisition of Baring Private Equity Asia 

EQT AB has completed the acquisition of Hong Kong-based Baring Private Equity Asia, as the Swedish investment firm looks to capture the region’s bright prospects.

The deal combines the two firms’ Asia private equity teams to create BPEA EQT, while Baring’s real estate business will be integrated into EQT’s, according to a statement confirming a Bloomberg News report. The cash and stock transaction was worth €6.8 billion ($6.7 billion) when it was announced in March, making it the biggest takeover of a private equity firm by another in the sector. Read more>>

Chinese Junk Bonds Set Record Low as Property Crisis Spreads

Chinese junk dollar bonds have dropped to a record low, as a property debt crisis sparked by a crackdown on excessive borrowing and a slide in home sales show few signs of turning around.

Average prices of the notes, dominated by real estate firms, fell 1-2 cents on the dollar Tuesday, according to credit traders. That drags them below a record low of 55.7 cents marked Monday. Read more>>

Fosun Nears Deal to Sell Stake in Nanjing Iron & Steel for $2.1B

Fosun International, the owner of the Club Med chain of resorts, is reportedly selling its stake in Nanjing Iron & Steel for 15 billion yuan (US$2.1 billion), as the heavily indebted group seeks to raise cash to trim its borrowings.

Fosun is selling its assets in Nanjing Iron & Steel to Jiangsu Shagang Group, according to a source close to the deal. The two sides are finalising the agreement, the person added. Read more>>

Sembcorp Wins License to Develop Vietnam Industrial Park

Sembcorp has, through its wholly-owned subsidiary Sembcorp Development, obtained an investment licence to develop a new industrial park in Can Tho City, it said in a bourse filing on Monday (17 October).

Can Tho City is located in the Mekong Delta region of Vietnam. Its central government recently announced a new master plan outlining Can Tho as a centre for trade and services in the region by 2023, along with infrastructure investments. Read more>>

Sinarmas Land and K2 Data Centres to Develop Indonesia Data Centres

K2 DATA Centres, a subsidiary of the Kuok Group, has entered into a joint venture with Sinarmas Land to develop and operate hyperscale data centres in Indonesia.

Hyperscale data centres that both companies are developing should exceed 5,000 servers and 10,000 square feet (929 square metres). Read more>>

Prime Retail Rents on the Rise in Singapore

Retail rents recorded the strongest quarter-on-quarter growth in Singapore’s prime shopping belt, gaining 2.9 percent to average S$38.40 ($27.03) per square foot a month for Orchard/Scotts Road ground floor space in the third quarter this year, data from Edmund Tie on Monday (17 October) showed.

Rents in other submarkets also rose as shopper traffic returned, though more slowly. Average monthly retail rents in other city areas chalked up a 1.1 percent increase to S$19 per square foot, while fringe/suburban area rents went up 2.2 percent to S$32.60 per square foot, going by Edmund Tie data. Read more>>

APAC Real Estate Investment Growth Dips in Q3

Real estate investment volumes for the third quarter of 2022 have softened from a year ago under the influence of a variety of macroeconomic factors which have prompted investors to adopt a more cautious approach to capital deployment.

According to a report by real estate services firm JLL on Tuesday (18 October), investment volumes were down 29 percent on-year at $28 billion in the third quarter. Read more>>

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