Daily Archives: 4 Aug 2009

The two Singaporean real estate funds to buy now

By Cris Sholto Heaton

Back in March, I wrote about the outstanding opportunities the global panic was creating in the Singapore Reit sector: It’s time to get back into property – Asian property.

At the time, fears that the credit crunch would make it impossible for many of them to refinance had hammered the sector to the point where almost every Reit sported a double-digit yield. This looked like an outstanding opportunity: the best of the bunch were very attractive income plays, with the bonus of the inflation protection that comes through owning real estate.

This turned out to be one of my better short-term calls. The sector is up an average 88% since, beating the local Straits Times Index (80%) and thrashing the FTSE (30%). I know from my emails that some of you bought into the sector Continue reading

Steepest fall in office occupancy cost here

Some firms may expand as rents fall and the economy stabilises

A plunge in Grade A office rents has raised Singapore’s competitive edge somewhat. According to Colliers International, office occupancy costs here were the fourth-highest among 26 Asia-Pacific cities in Q2 this year – down a notch from a quarter ago.

As rents stay weak while the economy stabilises, property consultants also expect some companies to take advantage of the situation to expand.

Colliers noted that monthly gross rents for Grade A offices in Singapore’s central business district (CBD) posted the sharpest fall in Q2, compared with other major cities in the region. Rents slid 26.2 per cent quarter-on-quarter, averaging at $6.73 psf per month in Q2. Continue reading