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Thread: Singapore's property values rise most in world

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    Default Singapore's property values rise most in world

    July 19, 2007

    Singapore's property values rise most in world



    In the prime Raffles Place area, office values rose by US$804 (S$1,216) per sq ft in the last 12 months, boosted by a supply crunch and soaring rentals. -- ST PHOTO: CHRISTOPHER LOH

    SINGAPORE'S office buildings have risen more in value over the last year than anywhere else in the world.

    These soaring values, as well as an inrush of investment capital into Singapore, have made the property market here the world's hottest.

    This was revealed by property firm Jones Lang LaSalle (JLL) on Monday, ahead of a fuller report on global real estate investment due out next month. It will track property deals above US$5 million worldwide, most of which are of commercial real estate, such as offices and shops.

    JLL's head of Asia capital markets, Mr Stuart Crow, elaborated on the preliminary findings on Thursday. He told The Straits Times that capital values of property in Singapore - particularly those of offices - have risen the most in nominal terms compared to the rest of the world.

    In the prime Raffles Place area, office values rose by US$804 per sq ft (psf) in the last 12 months, boosted by a supply crunch and soaring rentals.

    This is more than double the increase in Hong Kong's central district, where offices rose about US$280 psf in value on average, said Mr Crow.

    In percentage terms, Singapore's office values jumped a staggering 105 per cent in a year to reach $1,568.50 psf last month.

    In Hong Kong, values rose only 16.7 per cent in the same period to hit US$1,958.60 psf. But Mumbai's growth beat Singapore's in percentage terms - values there grew 123 per cent to US' $1,166.20 psf.

    The surge in real estate values here has been boosted by buzzing investor interest in Singapore, said Mr Crow.

    Read the full report by property reporter Fiona Chan in Friday's edition of The Straits Times.

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    Default Re: Singapore's property values rise most in world

    July 19, 2007, 5.25 pm (Singapore time)

    S'pore is 'world's hottest property market'


    SINGAPORE - Singapore has emerged as the world's 'hottest' property market this year, with Japan and China also among the top favourites of real estate investors, an international consultancy said on Thursday.

    Capital values of prime property in the city-state soared 50 per cent in the first six months of 2007, Jones Lang LaSalle said in a press statement.

    Globally, the value of property bought or sold for investment totalled a record US$382 billion in the first half, up 16.6 per cent from the year before, it said.

    Global real estate investment expanded for the 16th consecutive quarter, with the Americas, Europe and the Asia Pacific seeing record volumes, it added.

    Property investment in the Asia Pacific jumped 12 per cent to US$55 billion, mainly bolstered by cross-border investments, the consultancy said.

    'Japan, China and Singapore represented the strongest real estate markets in the region,' it said.

    'Singapore became 2007's hottest global market, with prime capital values increasing by 50 per cent (in the first half) fueled by astounding rental growth and yield compression.' Singapore's property market is heating up after years of weakness following a regional financial crisis in 1997.

    A strong domestic economy and efforts by the island-nation to raise its competitiveness, including a decision to build two massive integrated resorts, have helped perk up the property market.

    Stuart Crow, head of Asia capital markets at Jones Lang LaSalle, said Asia remains attractive to investors due to its strong economies, improved liquidity through real estate investment trusts and better transparency.

    'Cross border investment is at an all-time high, yet is likely to increase further in the next 12 months, particularly in the most sought after markets of Japan, Singapore, India and China,' he said.

    In the Americas, total investment was up 32 per cent to US$170.7 billion and investment in Europe climbed 4.0 per cent to US$156.6 billion, with the UK, Germany and France accounting for more than two thirds of the volume, it said. -- AFP

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    Default Re: Singapore's property values rise most in world

    July 20, 2007

    Rise in value of office space here is highest in the world

    By Fiona Chan, Property Reporter


    SINGAPORE'S office buildings have shot up in value by more than anywhere else in the world over the past year.

    These soaring values, as well as a rush of investment capital into Singapore, have made the property market here the world's hottest.

    This was revealed by property firm Jones Lang LaSalle (JLL) earlier this week, ahead of a fuller report on global real estate investment due out next month. It will track property deals above US$5 million (S$6.5 million) worldwide, most of which involve commercial real estate, such as offices and shops.

    JLL's head of Asia capital markets, Mr Stuart Crow, elaborated on the preliminary findings yesterday.

    He told The Straits Times that capital values of property in Singapore, particularly offices, have risen the most in the world in terms of a straight monetary increase rather than a percentage rise.

    In the prime Raffles Place area, office values rose by US$804 per sq ft (psf) in the last 12 months, boosted by a supply crunch and soaring rentals. This is more than double the increase in Hong Kong's central district, where offices rose about US$280 psf in value on average, he said.

    In percentage terms, Singapore's office values jumped a staggering 105 per cent in a year to reach $1,568.50 psf last month.

    In Hong Kong, values rose only 16.7 per cent in the same period to hit US$1,958.60 psf. But Mumbai's growth beat Singapore's in percentage terms - up 123 per cent to US$1,166.20 psf.

    Office values in Singapore have been driven up by an acute supply crunch as well as soaring demand from expanding businesses. But some experts have warned that rising office prices and rent could hurt the Republic's competiveness.

    The surge in real estate values here has also been boosted by buzzing investor interest in Singapore, said Mr Crow.

    In the first half of this year, US$3.7 billion worth of real estate changed hands here - a 40 per cent jump from a year earlier and the fourth highest figure in the Asia-Pacific region, behind Japan, Australia and China.

    Mr Crow believes property investments here will double in the next six months to reach about US$8 billion for the whole year. 'We're still in the early stages. Next year, investment flows may strengthen even further.'

    He said many new foreign players have arrived in Singapore's real estate market, adding that it has been transformed from an 'opportunistic' destination to a 'core market'.

    Of the last 18 major office transactions in Singapore, 16 have involved foreign buyers, noted Mr Crow. About 11 of these were making their first acquisition in Singapore; for some, their first in Asia.

    British-based property fund Develica, for one, bought its first Asian building last month, 1 Finlayson Green, for $231 million.

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