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Thread: Redas chief sees bright future for property sector

  1. #1
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    Default S'pore real estate 'still attractive' to foreign players

    http://www.straitstimes.com/premium/...ayers-20130912

    HEATING UP

    S'pore real estate 'still attractive' to foreign players

    Govt plans for certain areas draw interest from developers, investors

    Published on Sep 12, 2013

    By Melissa Tan


    FOREIGN developers and investors are still very keen on buying Singapore real estate, the head of the property developers' industry body said yesterday.

    "Interest from foreigners for land remains unabated. It's not just developers, there are also some private equity funds," said Mr Chia Boon Kuah, president of the Real Estate Developers' Association of Singapore (Redas).

    "They have done their sums... Obviously the future of Singapore in the medium and long term is, to them, very promising."

    Speaking on the sidelines of a Redas mid-autumn lunch held at the Fullerton Hotel, he said upcoming projects such as the expansion of Changi Airport would drive demand for space.

    Mr Chia, who is also chief operating officer at Far East Organization, said in a speech at the lunch that the Government's plans to develop certain areas of Singapore have "opened up tremendous economic and business opportunities" for developers.

    In particular, Tanjong Pagar and Paya Lebar will be "the biggest blank slates for Redas members to work on since Marina Bay", he said. He also cited existing projects such as a "vertical kampung" planned in Woodlands that will integrate homes, shops, clinics and other amenities in one building.

    He also told reporters that the vibrancy of Tanjong Pagar and the older parts of the Central Business District would get a lift.

    He cited the development of a 99-year leasehold plot between Cecil and Telok Ayer streets won by a Frasers Centrepoint unit last month through a public tender.

    "Cecil Street is really quite exciting. That place will grow, and that will push (growth) further south to Tanjong Pagar."

    Mr Chia also said strong interest from foreigners for land here was not at odds with his earlier statement made at a Redas seminar in July that Singapore was "approaching an important inflection point in the real estate cycle".

    "When I said it was an inflection point, that was more for the purchasing market of the end product and the rental market," he said. "But for the land market, as it has been proven, the appetite is still quite robust."

    Foreign developers, especially some from China, have been active in state land tenders recently.

    For instance, the second-highest bid for a plum plot at Mount Sophia on Tuesday was lodged by a unit of Chinese developer Fantasia Holdings Group and Singapore-based private equity firm F&H Fund Management.

    Its bid of $442 million for the 99-year leasehold site was just 0.06 per cent below the top bid of $442.3 billion from a consortium of Hoi Hup Realty, Sunway Developments and SC Wong Holdings.

    Other foreign investment include Wen Way Investments' purchase of all 22 retail units at The Sail @ Marina Bay in July. The Singapore-incorporated company is controlled by Chinese interests.

    Park Regis Singapore, a 203-room hotel and seven-storey office block with about 42,000 sq ft of net lettable area, was sold to an unnamed Chinese buyer for about $250 million in June.

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  2. #2
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    Malls many many at tanjong pagar area starting with 100am then the tangjong pagar centre and the dbs building mall revamp and 160k sqft of potential mall for the new cecil bid which can link straight to mrt. Not to mention the food in the hawker n along the shop houses. When TP extend down to the port area touted as singapore last waterfront city frontier should have many interesting developments

  3. #3
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    Default Redas chief sees bright future for property sector

    http://www.businesstimes.com.sg/prem...ector-20130912

    Published September 12, 2013

    Redas chief sees bright future for property sector

    By Kalpana Rashiwala [email protected]


    [SINGAPORE] The head of the property developers' body yesterday said the future shines bright with exciting possibilities, even as the property market takes its course through the cycle of business.

    Speaking at the Real Estate Developers' Association of Singapore's (Redas) mid-autumn celebration, its president, Chia Boon Kuah, also said Redas planned to increase its public engagement in several areas including offering ideas to the authorities on new plans for Tanjong Pagar and Paya Lebar.

    Mr Chia later told reporters that despite the policy measures affecting the property market that were introduced this year, interest from foreign players - not just developers but also private equity investors - in buying development land in Singapore "remains unabated".

    "They have done their sums,. . . their study and they believe in the future of Singapore.

    "They still see value in real estate in Singapore. They still see that it's worth their while to invest here. Obviously, the future of Singapore - medium term and long term - is to them very promising. And that has been articulated by the Prime Minister in that bold vision," said Mr Chia, referring to Prime Minister Lee Hsien Loong's National Day Rally speech.

    Mr Lee had outlined plans for the new Southern Waterfront City that will come up in Tanjong Pagar when the existing container port facilities move to Tuas; the expansion of Changi Airport; and the relocation of Paya Lebar Airbase to Changi, which will free up 800 ha for new developments.

    Yesterday, Mr Chia also highlighted that new developments are coming up in the old CBD. For instance, the commercial site at Telok Ayer Street/Cecil Street sold by the state recently means that part of town will "grow and then push further south to the Tanjong Pagar new waterfront city". In the Marina South location, the International Cruise Terminal and M+S' Marina One project will also help create new buzz, he added.

    In Changi Airport, the development of The Jewel, new terminals and a new runway will have a "multiplier effect on business and finally on the property market", said Mr Chia.

    Transactions for private homes have slowed drastically. Buyers, especially investors, have been hit by the additional buyer's stamp duty, lower loan-to-value limits and stricter approval for property loans under the Total Debt Servicing Ratio (TDSR) framework. Sellers, on the other hand, may be slapped with steep seller's stamp duty rates depending on the holding period for the property.

    Many in the industry highlight the problem for would-be upgraders thinking of moving from an HDB flat to a private property, or even moving from one private home to another as they will be hit by the TDSR.

    For this, OrangeTee managing director Steven Tan has a suggestion: "Developers could provide assistance to genuine buyers who need to offload existing properties by helping them with interim accommodation during the construction period of their new homes."

    Even well-heeled property buyers not affected much by the TDSR are holding back their purchases of private homes in anticipation of price cuts. Some developers have stated that they are launching new projects at prices below their initial expectations. Analysts say it is just a matter of time before developers of existing projects, where sales have stalled, may also chop prices to move units.

    Giving a different take, Suntec Real Estate Consultants director (research and consultancy) Colin Tan argues that there is still a lot of liquidity in the system. However, property investors - who made up a significant portion of demand for private homes, pre-TDSR - are affected by sentiment.

    "A key concern is whether the QE tapering (in the United States) will be gradual and not noticeable, or whether things will go awry," he added.

    Some market observers believe that response to private residential launches in coming months may be patchy. "Locations where there has not been much new supply in recent years may see better take-up, whereas those with several launches in the past couple of years may see slower take-up. So things will be more micro-market-driven going ahead," said a market watcher.

  4. #4
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    some say mkt good some say mkt bad aiyo
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

  5. #5
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    Chia is trying to sell snake oil to MND.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

  6. #6
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    Of course bright future. If I am a major shareholder of company xxx, will I say xxx has lousy future and the stock is over valued? Dumb right?

  7. #7
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    Should be $442.3 millions, not billion. Small typo error.

  8. #8
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    Quote Originally Posted by dtrax View Post
    Malls many many at tanjong pagar area starting with 100am then the tangjong pagar centre and the dbs building mall revamp and 160k sqft of potential mall for the new cecil bid which can link straight to mrt. Not to mention the food in the hawker n along the shop houses. When TP extend down to the port area touted as singapore last waterfront city frontier should have many interesting developments

    my friend runs a small eatery in TG ..

    she said that 100AM took away a lot of her clients ....


    what will happen to all the old shops when more malls are up and running ?

  9. #9
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    Yes, we are aware our property sector has bright prospect, to feed and for our bright children to run; We do not welcome foreigners buying/frying up our property prices! Let's write away foreign players on our soil.

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