mr funny
18-05-07, 04:41
Published May 18, 2007
MCL cheers immigration drive
SINGAPORE'S drive to boost its population through immigration will boost the earnings of residential property developer MCL Land for years to come, the firm's finance chief said yesterday.
The firm, 77 per cent owned by Hongkong Land, expects demand for its mass- to mid-market condominiums will be fuelled by the government's plan to woo more skilled foreign workers and boost the country's population to 6.5 million from 4.5 million.
'The long-term prospect for Singapore's property market is good. You need to house that additional two million,' Steve Chu, MCL Land's chief financial officer, said.
Singapore generated over 90 per cent of MCL Land's earnings last year with the remainder coming from Malaysia.
Though private home prices in Singapore are at their highest levels in seven years, many of MCL Land's rival developers such as CapitaLand and Keppel Land are diversifying out of the country by building apartments, malls and offices in markets such as China and India.
But Mr Chu said the risk-returns of venturing beyond MCL Land's main markets of Singapore and Malaysia would not be attractive for a small firm that had a staff of about 30.
'The current boom in Singapore has two to three more years to go before it eases off,' Mr Chu said, adding that private home prices could rise a further 15-20 per cent this year.
Mr Chu said MCL Land plans to spend up to $600 million this year to grow its current landbank of about 1.6 million square feet of gross floor area.
'We are actively looking for sites, particularly along the fringes of the core central area,' he said. - Reuters
MCL cheers immigration drive
SINGAPORE'S drive to boost its population through immigration will boost the earnings of residential property developer MCL Land for years to come, the firm's finance chief said yesterday.
The firm, 77 per cent owned by Hongkong Land, expects demand for its mass- to mid-market condominiums will be fuelled by the government's plan to woo more skilled foreign workers and boost the country's population to 6.5 million from 4.5 million.
'The long-term prospect for Singapore's property market is good. You need to house that additional two million,' Steve Chu, MCL Land's chief financial officer, said.
Singapore generated over 90 per cent of MCL Land's earnings last year with the remainder coming from Malaysia.
Though private home prices in Singapore are at their highest levels in seven years, many of MCL Land's rival developers such as CapitaLand and Keppel Land are diversifying out of the country by building apartments, malls and offices in markets such as China and India.
But Mr Chu said the risk-returns of venturing beyond MCL Land's main markets of Singapore and Malaysia would not be attractive for a small firm that had a staff of about 30.
'The current boom in Singapore has two to three more years to go before it eases off,' Mr Chu said, adding that private home prices could rise a further 15-20 per cent this year.
Mr Chu said MCL Land plans to spend up to $600 million this year to grow its current landbank of about 1.6 million square feet of gross floor area.
'We are actively looking for sites, particularly along the fringes of the core central area,' he said. - Reuters