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Thread: S'pore slips in property investment rankings

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    Default S'pore slips in property investment rankings

    http://www.businesstimes.com.sg/sub/...62989,00.html?

    Published December 9, 2009

    S'pore slips in property investment rankings

    By EMILYN YAP


    (SINGAPORE) Singapore's property market is looking relatively less attractive to investors as they worry about oversupply and overdevelopment on the island.

    According to a joint survey by PricewaterhouseCoopers (PwC) and the US-based Urban Land Institute (ULI), Singapore is fifth in a ranking of Asia-Pacific cities' property investment prospects, falling three notches from a year ago. In another ranking of development prospects, Singapore took 11th spot, down from seventh.

    For the Emerging Trends in Real Estate Asia Pacific 2010 study, PwC and ULI gathered the views of more than 270 real estate investors, developers and other players from mid-September to early November. The report notes that sentiment across the region has improved but also warns against complacency, 'with the prospects for Western economies precarious'.

    One concern participants brought up about the Singapore market is the large supply of property coming on stream. For the residential sector, Urban Redevelopment Authority (URA) data in Q3 showed 59,700 private homes were in the pipeline and that, of these, 34,120 were unsold.

    On the commercial front, CB Richard Ellis estimated last month that 7.72 million square feet of office space could be completed between Q4 this year and 2014.

    Still, Singapore is one of the top five markets in the region to invest in, said Choo Eng Beng, PwC assurance real estate leader for Singapore. 'This shows that despite issues with oversupply in Singapore, we are still recognised as a property investment hub.'

    And while Singapore's ranking dropped, its absolute rating actually improved marginally from 5.4 to 5.5 on a scale of one to 9.

    Respondents were most optimistic about investing in the residential sector here, with 36.6 per cent of them believing at the time of the survey that it was time to buy. The hotel sector had the fewest supporters, with 21.9 per cent of respondents making a 'sell' call.

    In the ranking of investment prospects, Shanghai jumped four notches to the top of the table, followed by Hong Kong, Beijing and Seoul.

    But PwC and ULI noted that 'the key driver for outperformance in Shanghai, and indeed in China generally, is the government's decision to inject liquidity into the economy, leading to a surge in bank lending to the property sector and a sharp rebound in commercial property prices'.

    Singapore also slipped in the table of development prospects, reflecting concerns about overdevelopment, the report said.

    ULI finance senior fellow Stephen Blank suggested another reason for the drop: foreign developers may find it hard to break into the local market, which is 'dominated by a number of large public and private owners and developers who have a long historical relationship with the city'.

    Shanghai also took top spot in the development prospects ranking, with Mumbai and Ho Chi Minh City in second and third places.


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    http://www.straitstimes.com/Money/St...ry_464294.html

    Dec 9, 2009

    Real estate investors pick China over S'pore

    Experts cautiously optimistic about S'pore, which ranks fifth among Asia-Pacific cities

    By Sylvia Paik


    SINGAPORE'S popularity as one of Asia's top real estate investment destinations has slipped, according to a new survey of institutional investors by the Urban Land Institute and PricewaterhouseCoopers (PwC).

    The report put the Republic in fifth place in the latest rankings of Asia-Pacific cities with the best property investment prospects. It came in second the last time.

    The top three cities, overtaking Singapore in the investment league table, are Shanghai, Hong Kong and Beijing respectively, with Seoul in fourth place.

    Mr Choo Eng Beng, PwC's assurance real estate leader, said the results came as no surprise in the light of the remarkable resilience of the Chinese economy.

    And Mr Stephen Blank, senior research fellow of finance at the Urban Land Institute, said Singapore's drop should be put into context, given that the difference between the third, fourth and fifth places was minor.

    About 270 industry experts from across the region - including investors, developers, property companies, lenders, brokers and consultants - were questioned about their views on the outlook of the property sector for the survey.

    Concern about an oversupply of property in Singapore over the next two years dented the city's ranking among developers. Experts placed Singapore 11th, compared with seventh last year.

    Respondents seemed most bullish about investment prospects for the residential property sector here, whereas other categories, such as retail and office, were placed in the 'hold' category.

    Almost 37 per cent of those polled believed that it was time to buy residential, while 45 per cent favoured 'hold' positions.

    This contrasts with the figures last year, when 11.6 per cent of respondents believed it was time to buy and 65.1 per cent urged investors to hold.

    But the survey warned that because residential prices rose a record 15.9 per cent in the third quarter over those in the previous period, the ideal moment for buying 'appears to have passed and most analysts are now concerned about prospects for the sector'.

    Mr Choo said the overall sentiment of respondents was cautiously optimistic. 'There continues to be confidence in terms of the strong fundamentals in Singapore,' he added.

    'This shows that despite issues with oversupply in Singapore, we are still recognised as a property investment hub.

    'Investors, however, are watching carefully as there are concerns about the city's development prospects across most asset classes. It would be prudent to tread cautiously going into 2010.'

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    Quote Originally Posted by mr funny
    http://www.businesstimes.com.sg/sub/...62989,00.html?

    Published December 9, 2009

    S'pore slips in property investment rankings

    By EMILYN YAP

    ..........
    ..........

    Respondents were most optimistic about investing in the residential sector here, with 36.6 per cent of them believing at the time of the survey that it was time to buy. The hotel sector had the fewest supporters, with 21.9 per cent of respondents making a 'sell' call.

    ..........
    ..........
    Quote Originally Posted by overlorden, SkyscraperCity, 9 December 2009 1.43 pm
    36.6%...outnumbers sellers by 2:1 margin...
    Quote Originally Posted by baby, SkyscraperCity, 9 December 2009 1.57 pm
    Senior civil servants and MPs started buying liao....... anti-speculation smoke to public, but buying behind...ha ha...
    What about ministers?

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