S'pore properties could grab US$20b of funds in 2007: DTZ
S'pore properties could grab US$20b of funds in 2007: DTZ
By Daryl Loo, Channel NewsAsia | Posted: 30 March 2007 1605 hrs
SINGAPORE: At least US$20 billion in global funds could be invested into properties in Singapore this year.
This is according to a report by the global office of property consultancy DTZ.
That is about 10 percent of the US$200 billion that DTZ expects will be channelled into properties in the Asia Pacific in 2007.
At US$200 billion, this amount of money is a jump of some two thirds from 2006.
And according to DTZ, the bulk will come from global investment funds.
They are seen as targeting all property sectors – residential, offices, retail and industrial – as real estate has been performing better than equities in recent years.
Joe Valente, Director, Head of Research, DTZ UK, said: "There is a huge wave of worldwide capital waiting and wishing to invest in real estate worldwide. There are all sorts of reasons for that, but we would estimate that at the moment there is something close to US$2.5 trillion looking to be invested in real estate, and probably around 30 to 40 percent of that is looking for a home in the Asia Pacific.
"The key problem in all of this is actually finding sufficient investment grade stock in good locations that are expected to outperform."
Japan will snap up about half of the money coming into Asia-Pacific.
But Singapore is among the top five destinations in the region – along with Australia, China and Hong Kong.
"We're expecting Singapore to capture 10 to 12 percent market share of the total amount of capital that is looking for a home within Asia markets. That hasn't changed quite significantly over the last two or three years. And much of that has to do with the liquidity and transparency of Singapore, which makes it a much more mature market compared with other emerging markets in Asia," said Mr Valente.
In Singapore, DTZ expects residential and office properties to do particularly well.
But it said the retail and industrial sectors would lag behind their counterparts in Japan and China.
The Head of Research said: "On a global basis, the level of performance that I would expect to get in retail within Singapore, and in industrials within Singapore are far in excess of the sort of returns that I would expect to find in European markets or in US markets. So that's a positive point for Singapore.
"However, in relative terms, there are one or two, or three or four other markets in Asia which are likely to outperform Singapore's performance, so all else being equal, that's where I would go for those particular sectors."
Overall property investment sales in Singapore hit over US$6 billion in the first three month of this year.
- CNA/so
Re: S'pore properties could grab US$20b of funds in 2007: DTZ
Quote:
Originally Posted by mr funny
S'pore properties could grab US$20b of funds in 2007: DTZ
Daryl Loo
Channel NewsAsia
30 March 2007
At least US$20 billion (S$30.2 billion) in global funds could be invested into properties in Singapore this year.
This is according to a report by the global office of property consultancy DTZ.
That is about 10% of the US$200 billion that DTZ expects will be channelled into properties in the Asia Pacific in 2007.
At US$200 billion, this amount of money is a jump of some two thirds from 2006.
And according to DTZ, the bulk will come from global investment funds.
They are seen as targeting all property sectors – residential, offices, retail and industrial – as real estate has been performing better than equities in recent years.
Joe Valente, Director, Head of Research, DTZ UK, said: "There is a huge wave of worldwide capital waiting and wishing to invest in real estate worldwide. There are all sorts of reasons for that, but we would estimate that at the moment there is something close to US$2.5 trillion looking to be invested in real estate, and probably around 30 to 40 percent of that is looking for a home in the Asia Pacific.
"The key problem in all of this is actually finding sufficient investment grade stock in good locations that are expected to outperform."
Japan will snap up about half of the money coming into Asia-Pacific.
But Singapore is among the top five destinations in the region – along with Australia, China and Hong Kong.
"We're expecting Singapore to capture 10 to 12 percent market share of the total amount of capital that is looking for a home within Asia markets. That hasn't changed quite significantly over the last two or three years. And much of that has to do with the liquidity and transparency of Singapore, which makes it a much more mature market compared with other emerging markets in Asia," said Mr Valente.
In Singapore, DTZ expects residential and office properties to do particularly well.
But it said the retail and industrial sectors would lag behind their counterparts in Japan and China.
The Head of Research said: "On a global basis, the level of performance that I would expect to get in retail within Singapore, and in industrials within Singapore are far in excess of the sort of returns that I would expect to find in European markets or in US markets. So that's a positive point for Singapore.
"However, in relative terms, there are one or two, or three or four other markets in Asia which are likely to outperform Singapore's performance, so all else being equal, that's where I would go for those particular sectors."
Overall property investment sales in Singapore hit over US$6 billion in the first three month of this year.
How many buildings can S$30 billions buy in 2007?
Re: S'pore properties could grab US$20b of funds in 2007: DTZ
Quote:
Originally Posted by Curious
How many buildings can S$30 billions buy in 2007?
Go down to Suntec City and attend the City Scape Asia 2007 conference. You will find the answers among the many investors and funds there.
www.cityscapeasia.com
http://www.cityscapeasia.com/Images/...yscapeasia.png
Minister Mah: Property Sector Doing Well Across All Sectors, Foreign Demand Strong
Frederick Lim
Channel NewsAsia
10 April 2007
The Singapore property market has been performing well on a broad front across all sectors over the last two years to three years.
And according to National Development Minister Mah Bow Tan, a good part of it is due to strong foreign investment in Singapore's real estate.
Speaking at the Cityscape Asia property exhibition, he cited private sector figures which showed that Singapore's property market attracted a five-fold increase in foreign investment to S$5.4 billion last year, compared with 2004.
The Minister also said that the government is furthering its efforts to make Singapore more vibrant and exciting to attract even more overseas real estate investors.
Figures showed Singapore's property market is on the roll.
In the office sector, demand for space hit a six-year high in 2006.
Demand for shop space last year also grew by the highest annual increase since 1993.
And in the private housing market, a total of 10,300 uncompleted residential units were sold by developers in 2006 - a historical high surpassing the previous record of 9,800 set in 1994.
Of these, a quarter was bought by foreigners, including permanent residents.
And, foreign companies poured S$5.4 billion into Singapore's real estate market last year compared to just S$900 million in 2004.
National Development Minister Mah Bow Tan said: "More than just a good place to do business, I believe the other reason why we have been successful in attracting investments is that Singapore is, I submit, a great place to live in. We welcome people from different cultures, we offer a good quality living environment."
Mr Mah said that the government would continue to make Singapore's cityscape more beautiful and exciting so as to attract even more overseas property investors.
Singapore's city planner, the Urban Redevelopment Authority, says it is approaching this on two fronts.
URA's Chief Executive, Cheong Koon Hean, said: "What we now need to do is to add the vibrancy, give more variety. And I think we have to leverage on our strengths. Two things we need to capitalise on. The fact that we are an island, so we capitalise on water - the use of the water. And let water bring value and enhancement to the city. The second thing is our tropical-ness. Because our weather plants grow very well, we are already a garden city. But we can do better to make ourselves a city in a garden."
The URA has been releasing more land sites in the city to cater for greater demand for office, hotel, residential and mixed development use.
And these will be targeted at transforming the city into a better work-live-play environment.
Re: Minister Mah: Property Sector Doing Well Across All Sectors, Foreign Demand Strong
Quote:
Originally Posted by Frederick Lim
Frederick Lim
Channel NewsAsia
10 April 2007
The Singapore property market has been performing well on a broad front across all sectors over the last two years to three years.
And according to National Development Minister Mah Bow Tan, a good part of it is due to strong foreign investment in Singapore's real estate.
Speaking at the Cityscape Asia property exhibition, he cited private sector figures which showed that Singapore's property market attracted a five-fold increase in foreign investment to S$5.4 billion .......... URA has been releasing more land sites in the city to cater for greater demand for office, hotel, residential and mixed development use.
And these will be targeted at transforming the city into a better work-live-play environment.
Like that what are we waiting for?
Go grab yourself something now.
