Singapore Clarke Quay (Small)

Clarke Quay Singapore


” Landlords Grow Rich In Their Sleep”John Stuart Mill

Shares of Singapore-listed property players are poised to achieve their highest annual gain in five years, with experts believing that the good times would continue, reported Bloomberg. So far this year, developers and property trusts, including UOL Group and City Developments Limited, account for five out of 10 top-performing shares on Straits Times Index.

In fact, the index tracking 42 Singapore property stocks increased by 16 percent, leading to its biggest annual gain since 2012. Comparatively, the city-state’s benchmark gauge only rose by 12 percent year-to-date. This comes after the government rolled back several property cooling measures in March. This resulted in home sales doubling on an annual basis during the same month and it soared to its highest level in nearly four years, based on data from the Urban Redevelopment Authority (URA).

“We’re in a recovery phase at this point. There are a number of macro prudential measures that are still weighing on the real estate market but we are definitely up from the bottom we saw early last year,” noted Morgan Stanley equity strategist Sean Gardiner. According to Desmond Loh from JPMorgan Asset Management, the second top-performing fund here this year, the housing market is witnessing a marked improvement in sentiment.

This would benefit property players that have starting acquiring land for new developments, he shared, adding that vacancy levels are forecasted to drop in the next few years. Andrew Gillan, head of equities for Asia excluding Japan at Janus Henderson Group, shared that the recovery bodes well for earnings of developers, particularly those that have amassed landbank at “reasonable” prices.

Notably, developers have recently started to accumulate land for their developments. For instance, a Chinese consortium bought a residential site under the government land sales programme last month for a record price of S$1 billion. Other developers turned to en-bloc sales to beef up their land, spending a total of S$1.5 billion on four of such deals so far this year.

However, the rebound in residential sales hasn’t been consistent. Official statistics revealed last week that transactions declined by 34 percent in May as fewer new projects were launched. Moreover, a significant rise in home sales may force the authorities to impose more cooling measures or slow the pace of easing.

The risk is “if volume really start to pick up quite strongly, then we will see more measures from the Monetary Authority of Singapore. That’s something I can’t rule out, it’s certainly a possibility,” added Nomura Southeast Asian equity strategist Mixo Das.

NewLauchOnline.Sg Credits ( Article By Denise Djong)

18Sep 2015

Throughout recent years, Mixed Developments in Singapore are seeing a higher pick up rate among the New Launches. A steady increase of investors and home seekers alike are turning their attention towards Mixed Development ( Residential & Commercial ). Many might be asking what’s the difference between a normal condominium development and a Mixed Development. […]

21Sep 2015

Earlier on in this year’s National Day Rally Speech, Prime Minister Lee Hsien Loong made the announcement.     The Straits Times (24th Aug 2015) Overall summary of the new schemes and subsidies. 1) Singapore household income ceiling for HDB Build-to-Order(BTO) has been increased from $10,000 to $12,000 and the Executive Condominium ceiling has been increased […]

05Oct 2015
Image of Thomson Line

  Available from 2019 onwards, the land transport authority has announced that the new Thomson East Coast MRT (TEL) has begun construction. Extending through an amazing 43 Kilometers, she will provide connectivity to the East West Line, North South Line, Downtown Line, Cricle Line, and North East Line. A total of 31 new stations will […]

16Oct 2015
Main Facade Vista Verde

    Vista Verde New Launch condo in Vietnam Ho Chi Minh City by CapitalLand. We have recently observed spikes in Overseas real estate investments. Introducing the latest Overseas project launch by our renowned developer. She is the most highly anticipated project and the first ever luxury condo launch in Vietnam by CapitalLand. Vista Verde […]

23Oct 2015
URA Property PRice Index

Singapore private property prices fell another 1.3% in quarter three of 2015 after seeing a 0.9% dip in the 2nd quarter. URA released the information on friday  showing that this is the eighth consecutive quarter that has seen price declination with the Private Property Index at the lowest since Quarter 1 of 2011. Majority of […]

Real Time Web Analytics