SINGAPORE (BLOOMBERG) – Singapore home prices have reached a bottom and will rebound, while Hong Kong’s “crazy” housing market will continue to defy gravity, according to BNP Paribas.
“Very significant” income growth will drive the first leg of a recovery in home prices in Singapore, where property ownership as a proportion of household assets is near a record low, BNP’s Asia-Pacific head of research for financial institutions and property Wee Liat Lee said in an interview while visiting the city-state. That will boost prices by 10 per cent to 15 per cent over the next 12 to 15 months, in turn luring foreign buyers, especially from China, Lee said.
Singapore property prices have declined for 15 quarters – the longest slide since data was first published in 1975 – as the government rolled out a series of curbs. Home values have dropped 12 per cent from their 2013 peak, while Hong Kong prices reached record highs earlier this year. Continue reading
The development charge (DC) rates for landed and non-landed homes have been raised amid collective sale fever and rising property sales.
The increase was highest for non-landed homes. DC rates for this segment was hiked by 13.8 per cent on average, with one sector – the Tampines Road, Hougang, Punggol and Sengkang area – receiving a 29 per cent rise.
The charges are levied by the Government for enhancing the use of some sites or building bigger projects on them. They are revised on a half-yearly basis by the Ministry of National Development (MND), in consultation with the chief valuer. Continue reading
Comments from CapitaLand’s chief executive officer Lim Ming Yan last week that there are signs the private residential market could be bottoming out made market watchers sit up for its positive tone from Singapore’s largest property player.
The comments jive with a range of data pointing to an uptick in the market. The latest second-quarter numbers from the Urban Redevelopment Authority (URA) show that prices fell 0.1 per cent, less than the 0.4 per cent in the second quarter. But is the market bottoming out to remain flat, or could Singapore even be embarking on a fresh property cycle?
While no other major developer has been as outspoken recently as Mr Lim, their bids have done the talking for them in two ways. Continue reading
THE capital flight to greener pastures abroad from Singapore has slowed to a trickle, amid a turnaround in the property market at home.
Data compiled by Real Capital Analytics and Knight Frank Research shows that the number of outbound investment deals dwindled to 34 in the first half of 2017. The figure was 144 for last year, and 503 in 2015.
The transaction value of deals done in the first half of the year also slid – to S$6.7 billion, from S$14.6 billion last year and S$37.7 billion in 2015. Continue reading
The protracted downtrend in Singapore’s property market is poised to end next year, with home prices set to double by 2030, Morgan Stanley said in a Wednesday note.
“Property market bears expect slower population growth, an ageing population, and a structural growth slowdown to weigh on the long-term property market outlook,” the note said. “We disagree and believe home prices will double by 2030.”
That implies a 5 to 6 percent increase per annum and would mark a reversal from a long downtrend in home prices. Continue reading
Australian developer Lendlease is jumping on the co-working bandwagon and taking its employees along with it.
About 100 of its 550 staff here will be moving into a co-working space at OUE Downtown in the Central Business District, partially in preparation for similar zones at its own upcoming office towers at the Paya Lebar Quarter (PLQ).
Co-working spaces are working environments shared by people employed by different companies. Continue reading
SINGAPORE – It is now a disused rubber factory converted into a warehouse. But Kallang Distripark along Geylang Bahru Road could in years be teeming with activities, with sportsmen kayaking in the nearby Kallang River and residents cycling along park connectors.
The 15-ha private industrial estate has been identified as a potential site, among several others, that can be redeveloped as part of the Urban Redevelopment Authority’s (URA) ambitious plan to turn the areas along Kallang River into a lifestyle hub.
URA’s ideas for the areas around the 10km-long river are on display at the URA Centre at Maxwell Road, in the A River Runs Through It exhibition, which was launched by Minister for National Development Lawrence Wong on Wednesday (March 29). The agency hopes to get feedback on its ideas from the public. Continue reading