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Thread: Citigroup sees 30-40% home rents hike in 2007

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    Default Citigroup sees 30-40% home rents hike in 2007

    Published April 24, 2007

    Citigroup sees 30-40% home rents hike in 2007

    Occupancy hitting record highs; home prices also seen rising 12-15%

    By UMA SHANKARI


    DELIVERING a bullish outlook on Singapore's property market, Citigroup's research team yesterday said residential rents could rise 30-40 per cent this year as occupancy hits record highs.

    'Taking into account the recent en bloc sales, we believe real occupancy is already at a record high of 95.7 per cent (as opposed to the official figure of 93.9 per cent),' said Citigroup analyst Wendy Koh, who covers the Singapore property market.

    And on the back of good demand, residential property prices could go up by another 12-15 per cent this year, outstripping last year's 10.2 per cent increase.

    The increase is due to a supply shortfall. Just 5,000 units will be completed this year, and Ms Koh predicts that demand will be substantially higher. Last year, demand for new homes hit 9,000. And over the past 10 years, demand for homes has averaged about 8,000 units a year.

    The shortage is expected to continue into 2008, when just 7,000 new homes will become available.

    Ms Koh said the luxury market will see a 10-15 per cent price upside in 2007, while prices in the mid-tier segment will grow by 10-20 per cent.

    Citigroup is also bullish on the HDB resale market - which has long been stagnant - seeing a 5-10 per cent upside for resale prices of HDB flats. 'The HDB resale market will likely pick up in both volume and prices, which would in turn help support the mass market segment,' said the bank in its latest research note. Ms Koh predicted that mass market prices will climb by about 10 per cent this year.

    Office rents will also similarly rise, she said. Rents could hit $14.50 psf by end-2007 and $18.50 psf by 2008.

    The bank recommended that investors buy shares of City Developments, Wing Tai, Allgreen Properties and Keppel Land.

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    Default Re: Citigroup sees 30-40% home rents hike in 2007

    S'pore residential property prices to rise 30% by 2008: Citigroup

    By Daryl Loo, Channel NewsAsia | Posted: 23 April 2007 2042 hrs


    SINGAPORE : Home prices in Singapore are expected to rise much more than those in Hong Kong, over the next two years, according to Citigroup.

    Speaking at an Asia Pacific property conference in Singapore on Monday, Citigroup analysts say they see Singapore residential prices jumping by as much as 30 percent by 2008 compared to just 10 percent for Hong Kong.

    Price tags for private homes in Singapore will be on the rise for at least the next two years, according to Citigroup.

    It sees Singapore as being in the early stages of a cyclical upswing.

    This is in contrast to Hong Kong, where the cycle is on the downtrend - and expected to end by 2009.

    They say that Singapore prices are being driven by high occupancy rates, which have hit a record peak of 95.7 percent, and set to even climb higher over the next two years.

    Wendy Koh, Director, Asia Pacific Equity Research, Citigroup, said: "If you look at the residential sector, occupancy rate right now is about 93.9 percent as at the end of 2006. If we take into account the completion this year which is only about 5,000 units, and last year's demand was about 9,000, and on annual basis the last 10-year average was about 8,000, occupancy rates should continue to rise.

    "And if you take into account the 3,500 units that were sold en bloc last year, occupancy rate is actually closer to 95.5 percent last year. That is a record high as we have not seen that sort of levels before."

    Citigroup expects occupancy to rise further to 96.8 percent this year, and 97.1 percent in 2008, as the level of demand far outstrips supply.

    Over in the office sector, it is predicting rentals to rise 56 percent to $18.50 per square foot by the end of 2008, up from $11.80 currently.

    And despite the recent run-up in property counters, Citigroup sees further upside in some choice picks.

    Ms Koh said: "We like City Developments, Wing Tai, Allgreen. We also like Keppel Land for office play. For the first three stocks, it's more the residential exposure. If you look at City Dev and Wing Tai, they have been replenishing their land bank, and riding the upswing in the residential market."

    Private home prices in Singapore rose 10.2 percent last year, and an estimated 4.6 percent in the first quarter of this year. - CNA/ch

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    Default Residential market in initial stage of upswing: Citigroup

    April 24, 2007

    Residential market in initial stage of upswing: Citigroup

    By Joyce Teo, Property Correspondent


    DESPITE benchmark prices at recent property launches, the upswing in Singapore home prices is only just beginning, according to an analyst at banking giant Citigroup.

    Yesterday, Ms Wendy Koh told reporters that the residential market is still in an 'early phase' of a cyclical upswing.

    The property market recovery starting this year is across the board, she said.

    Prior to a pickup in the mid-market segment in the second half of last year, the upturn was clearly visible only in the luxury home sector.

    According to Ms Koh, demand continues to outweigh supply and occupancy rates are likely to reach new highs.

    Taking into account recent collective sales, real occupancy is already at a record high of 95.7 per cent versus the reported 93.9 per cent, and it will rise further, she said.

    That means home prices are expected to keep rising this year and next, she said. The luxury home market will continue to rise by another 10 per cent to 15 per cent this year.

    The mid-market segment may go up by 10 to 20 per cent, the mass market by 10 per cent and the Housing Board (HDB) market by 5 to 10 per cent, she said.

    The HDB market is helped by the lessening supply of unsold but completed HDB flats, she said. There are now 4,000 such flats, dramatically down from 25,000 units a few years ago.

    Ms Koh also said the office market will be strong, with prime Grade A rentals rising from $11.80 per sq ft to $14.50 psf by the end of the year and to $18.50 psf by the end of next year.

    She was speaking yesterday at a media conference held alongside the Citigroup Asia Pacific Property Conference, which was closed to the media.

    Trade and Industry Minister Lim Hng Kiang made the opening speech, distributed to the media.

    He said: 'Singapore can play an important role as a gateway for global investors to access Asian opportunities via our capital markets.'

    A property derivatives market is a potentially exciting area for innovation, he added. If such a market were developed, Singapore would need 'transparent, reliable and well-followed' direct property indexes.

    Industry players are currently studying the construction of such indexes, he said. These indexes would enhance information on Singapore's property market and provide benchmarks for structuring property derivatives and other innovative products.

    Derivatives are instruments taking their value from another underlying asset, such as a stock or even a stock index.

    Generally positive sentiment suggests that this year and the years ahead will be exciting for Asia and its property sector, Mr Lim concluded.

    'I am certain that with judicious planning and sound execution, the sector will see strong growth, sustained by liquidity from the capital markets,' he said.

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    Default Re: Residential market in initial stage of upswing: Citigroup

    Quote Originally Posted by mr funny
    April 24, 2007

    Residential market in initial stage of upswing: Citigroup

    By Joyce Teo, Property Correspondent


    DESPITE benchmark prices at recent property launches, the upswing in Singapore home prices is only just beginning, according to an analyst at banking giant Citigroup.

    Yesterday, Ms Wendy Koh told reporters that the residential market is still in an 'early phase' of a cyclical upswing.

    The property market recovery starting this year is across the board, she said.

    Prior to a pickup in the mid-market segment in the second half of last year, the upturn was clearly visible only in the luxury home sector.

    According to Ms Koh, demand continues to outweigh supply and occupancy rates are likely to reach new highs.

    Taking into account recent collective sales, real occupancy is already at a record high of 95.7 per cent versus the reported 93.9 per cent, and it will rise further, she said.

    That means home prices are expected to keep rising this year and next, she said. The luxury home market will continue to rise by another 10 per cent to 15 per cent this year.

    The mid-market segment may go up by 10 to 20 per cent, the mass market by 10 per cent and the Housing Board (HDB) market by 5 to 10 per cent, she said.

    The HDB market is helped by the lessening supply of unsold but completed HDB flats, she said. There are now 4,000 such flats, dramatically down from 25,000 units a few years ago.

    Ms Koh also said the office market will be strong, with prime Grade A rentals rising from $11.80 per sq ft to $14.50 psf by the end of the year and to $18.50 psf by the end of next year.

    She was speaking yesterday at a media conference held alongside the Citigroup Asia Pacific Property Conference, which was closed to the media.

    Trade and Industry Minister Lim Hng Kiang made the opening speech, distributed to the media.

    He said: 'Singapore can play an important role as a gateway for global investors to access Asian opportunities via our capital markets.'

    A property derivatives market is a potentially exciting area for innovation, he added. If such a market were developed, Singapore would need 'transparent, reliable and well-followed' direct property indexes.

    Industry players are currently studying the construction of such indexes, he said. These indexes would enhance information on Singapore's property market and provide benchmarks for structuring property derivatives and other innovative products.

    Derivatives are instruments taking their value from another underlying asset, such as a stock or even a stock index.

    Generally positive sentiment suggests that this year and the years ahead will be exciting for Asia and its property sector, Mr Lim concluded.

    'I am certain that with judicious planning and sound execution, the sector will see strong growth, sustained by liquidity from the capital markets,' he said.
    The recent boom in asia provids so much opportunities for smart investors to make money. If you compare stock to property markete (esp the one in SIngapore and Shanghai) for example, you can tell property market is a very difficult and challenging type of investment because of two big disadvantages of investing in property: capital and labour intensive

    Sure, not every stock rises up rapidly even in the boom market, but so as property. Many of the "shrewd" investor mop up property with "en bloc" potential, but discovered that many type of complications can surface to
    prevent a successful deal to go thru.

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    Default Re: Citigroup sees 30-40% home rents hike in 2007

    Generally positive sentiment suggests that this year and the years ahead will be exciting for Asia and its property sector, Mr Lim concluded.

    'I am certain that with judicious planning and sound execution, the sector will see strong growth, sustained by liquidity from the capital markets,' he said.

    I hope when the " judicious planning and sound execution " is done, my head will not roll. I have just invested on a too expensive launch project. My regret to to have bought into the hype. Hopefully i can sell before 2 years is up, if not i will really be financially executed. I really hope the Gov backs up this hype, if not thousands of people will go into bankruptcy.

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    Default Re: Citigroup Sees 30-40% Home Rents Hike In 2007

    Quote Originally Posted by mr funny
    Singapore Residential Property Prices To Rise 30% By 2008: Citigroup
    Daryl Loo
    Channel NewsAsia
    23 April 2007 2042 hrs

    Home prices in Singapore are expected to rise much more than those in Hong Kong, over the next two years, according to Citigroup.

    Speaking at an Asia Pacific property conference in Singapore on Monday, Citigroup analysts say they see Singapore residential prices jumping by as much as 30% by 2008 compared to just 10% for Hong Kong.

    Price tags for private homes in Singapore will be on the rise for at least the next two years, according to Citigroup.

    It sees Singapore as being in the early stages of a cyclical upswing.

    This is in contrast to Hong Kong, where the cycle is on the downtrend - and expected to end by 2009.

    They say that Singapore prices are being driven by high occupancy rates, which have hit a record peak of 95.7%, and set to even climb higher over the next two years.

    Wendy Koh, Director, Asia Pacific Equity Research, Citigroup, said: "If you look at the residential sector, occupancy rate right now is about 93.9% as at the end of 2006. If we take into account the completion this year which is only about 5,000 units, and last year's demand was about 9,000, and on annual basis the last 10-year average was about 8,000, occupancy rates should continue to rise.

    "And if you take into account the 3,500 units that were sold en bloc last year, occupancy rate is actually closer to 95.5% last year. That is a record high as we have not seen that sort of levels before."

    Citigroup expects occupancy to rise further to 96.8% this year, and 97.1% in 2008, as the level of demand far outstrips supply.

    Over in the office sector, it is predicting rentals to rise 56% to $18.50 psf by the end of 2008, up from $11.80 currently.

    And despite the recent run-up in property counters, Citigroup sees further upside in some choice picks.

    Ms Koh said: "We like City Developments, Wing Tai, Allgreen. We also like Keppel Land for office play. For the first three stocks, it's more the residential exposure. If you look at City Dev and Wing Tai, they have been replenishing their land bank, and riding the upswing in the residential market."

    Private home prices in Singapore rose 10.2% last year, and an estimated 4.6% in the first quarter of this year. - CNA

    Wow! This is great news indeed!
    My properties have an average 53% gain now!
    Just imagine adding another 30% in the next 2 years!
    Keep it up!

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    Default 外来人才纷纷落户 私宅租金水涨船高

    林婉诗
    2007-04-24

    外来人才纷纷落户新加坡,带动本地私人公寓的租赁需求和租金水平。今年第一季,黄金地区私人公寓租金的涨势,已逐渐蔓延到市区外的私人公寓,及一部分地点优越的政府组屋。

    房地产顾问公司第一太平戴维斯(Savills)提供给本报的资料显示,第9、10及11邮区的私人公寓平均租金在今年第一季达每平方英尺2.95元,已超越2000年的高峰水平;其中,高档私人公寓每月租金已上升到每平方英尺5.12元。

    资料显示,西部地区(5、21及23邮区)的公寓租金,季对季平均涨幅达10%左右;东北地区(19邮区)的私人公寓则呈现大约9%季对季涨幅。经过这轮上涨,西部和东北地区的两、三睡房式公寓租金将达到一个月2000元到3000元左右。

    地点好组屋 租金也升20-40%

    与此同时,由于私人公寓租金不断上涨,一些租户也把注意力转向政府组屋单位。第一太平戴维斯的资料显示,地点讨好的政府组屋租金同比上升了20%到40%左右。

    由于租金上涨,有报道指出,部分雇主因此调高了在本地工作外籍人士的住宿津贴,调高幅度介于20%到30%。

    目前,一个位于9、10或11邮区的一睡房式公寓,月租至少2500元到3500元;四睡房式公寓月租介于1万元到1万2000元。这个地区的有地住宅月租达至少9000元到1万3000元。

    第一太平戴维斯说,在新加坡中部地区公寓租金不断上扬的情况下,加上这些地区的公寓供应量基于集体出售活动热潮而渐渐减少,因此东部、东北部及西部的私人公寓租赁交易状况有稳健增加的趋势。

    西部的某些新公寓如The Jade、The Linear及The Warren越来越受到外籍人士的青睐,尤其是在国际商业园、 裕廊工业区及启奥生物医药园(Biopolis)工作的外籍人士。

    喜欢住得靠近中央商业区及及地铁站的人士,则看好位于中峇鲁及女皇镇一带的公寓;例如,中峇鲁的City Regency及女皇镇的Queens由于交通便利,便吸引了许多潜在租户的租赁询问。

    西部地区的公寓得到强劲需求,部分也因为本地的外国学生人数也增多了。去年本地有大约8万个外国学生,比前年增加11.6%左右。由于本地国际学生人数在2015年预料可增加到15万人,外国学生仍会对私人公寓租赁市场持续带来推动力。

    由于接下来的需求仍然会是强劲的,第一太平戴维斯预料,本地住宅租金市场接下来仍会呈现良好的表现。随着新加坡朝金融枢纽的方向发展,不少外国金融公司纷纷到新加坡扩充业务。因此,来自外国的金融业专业人士人数预料将增多。

    去年,在本地工作的外国人有75万6300人,同比增加了12.6%。这个数字可能会继续增加,因为接下来五年内,新加坡将制造出的45万个新工作,有一半预料将由外国人填满。

    配合这个趋势,新加坡接下来五年预料会添加20万个永久居民及4万个公民,这会带动本地住宅市场的需求。

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