Singapore developer appetites for more redevelopment projects will be tested in the coming weeks as another set of condo owners band together to market their homes, despite a number of failed tenders in recent weeks. Also in the news today, Frasers Property prices a set of green bonds and Malaysia’s Parkson continues to sell down its mainland China holdings with the sale of properties in Qingdao.
Euro-Asia Park, a condo complex in Singapore’s District 13, will be put up for collective sale via public tender on Tuesday (Sep 13) with a guide price of S$500 million ($358 million), said exclusive marketing agent OrangeTee Advisory on Monday.
The low-rise development was built in 1996 and has a total of 163 units. It has a land area of about 129,793 square feet (sq ft) and is zoned for residential use with a gross plot ratio of 2.8 under the Urban Redevelopment Authority Master Plan 2019. Read more>>
Frasers Property late on Thursday priced up to S$420 million ($300.7 million) of its 5-year green notes at 4.49 per cent under its S$5 billion multicurrency debt issuance programme, with an upsize option to increase the offer to a maximum amount of S$650 million in the event of oversubscription.
This comes after the group earlier in the day announced plans to offer up to S$375 million of the green notes due 2027. The higher initial offer size will comprise a public offering of up to S$300 million to retail investors, as well as a placement of up to S$120 million to institutional investors and others. Each tranche represents 71.4 per cent or 28.6 per cent of the initial offer size of the notes, respectively. Read more>>
Parkson Retail Group Ltd is selling commercial properties with an aggregate construction area of 76,013 square metres in Qingdao, China for RMB 280 million ($40.4 million).
The department store operating on the properties has been suffering losses due to the weakening spending power of local residents as well as the adverse effects of Covid-19 mitigation policies on the retail business, PRG said in an announcement on Friday (Sept 9) that was filed with Bursa Malaysia by Parkson. Read more>>
The interest rates Hong Kong’s banks charge each other for borrowing money have hit new highs and are expected to drive up their funding costs.
The one-month Hong Kong Interbank Offered Rate (Hibor) – the benchmark for mortgage loans – rose to 2.01 per cent on Friday, a 29-month high, according to mortgage broker mReferral. The three-month Hibor, the benchmark for corporate loans, climbed to 2.79 per cent, nearing a 14-year high. Read more>>
Singapore’s High Court has on Monday (Sep 12) asked the trustee of Laguna National Golf and Country Club to give evidence before the court so it can assess whether the trustee had acted according to its fiduciary duty in looking after debenture holders’ interest.
The British and Malayan Trustees have 1 month to file an affidavit, if they wish, addressing whether they were aware that the club was in default before it failed to redeem the unsecured notes; and if so, what steps they were going to take. Read more>>
China is increasingly counting on its banks to step up mortgage lending and help boost a sinking housing market. But there is a problem: Lenders are stuck with many mortgages from boom times that are at higher risk of not being repaid.
Chinese property developers wrote at least $300 billion of mortgage guarantees over the past few years for partially built apartments that they presold, according to regulatory filings. The real-estate firms promised that they would cover home buyers’ interest and principal payments to banks if the borrowers defaulted before their apartments were completed and delivered. Read more>>
Lily Gao, a designer in an architectural firm in Shanghai, never thought that the news about defaulting property developers and mortgage boycotts would affect her life.
“I thought that since I did not even buy a home or invest in any of the wealth management products, those news stories were just other people’s desperate stories,” the 27-year-old said. “Apparently, I was too naive.” Now, the distressed property market could end up costing Gao about 90,000 yuan (US$13,000). Read more>>
More young Singaporeans, compared with older age groups, are considering renting and flat sharing as they find current property prices too high. Even then, most still intend to buy a home within the next two years, a consumer sentiment study released by real estate portal PropertyGuru last week showed.
While one in three respondents said they feel the pinch of rising rents, two in three of those aged 22 to 29 said they have chosen to rent instead of buy a home due to their lack of savings. Read more>>