Property outlook remains muted

Posted on 16 May 2015 | Comments Off on Property outlook remains muted

The outlook for the private housing market remains muted, although there are still opportunities for well-priced and well-placed developments, revealed Frasers Centrepoint and reported in the media.

Group CEO Lim Ee Seng noted that projects with good pricing and location continue to attract buyers as demonstrated by North Park Residences, its latest residential development in Yishun.

“We do believe in the long-term stability of the Singapore residential market so we will continue to participate, but selectively and opportunistically, in whatever is available in the market,” he said during the company’s quarterly results briefing on Monday.

In Q2 ended-March, Frasers Centrepoint saw its net profit grow more than double from last year to $143 million, primarily due to fair value gains of $44 million from a joint venture. Revenue held firm at $442 million.

But revenue from its property development segment fell 41 percent to $91 million, due to lower contribution from Singapore developments and the tapering off of revenue recognition from the Riverside Quarter project in the UK.

Looking ahead, the group plans to continue to grow its business and asset portfolio in a balanced manner across geographies and property segments, it said in a statement.

In Singapore, Frasers Centrepoint will selectively acquire sites to replenish its landbank.

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Experts warn against flipping Iskandar homes

Posted on 16 May 2015 | Comments Off on Experts warn against flipping Iskandar homes

Singaporeans should purchase homes in Johor’s Iskandar region only if they intend to occupy them since gains from real estate flipping will be hard to achieve, revealed property consultants quoted in the media.

The Iskandar housing market has been dominated by speculators in the last few years, but the surge in supply has resulted in a slowdown since mid-2014.

“In 2012 and 2013, it was a free-for-all and speculation was rife. Even Singaporeans were coming in, buying blindly, and that encouraged developers to launch bigger numbers of units,” said PA International Property Consultants executive director V. Sivadas.

But transactions have moderated since the Malaysian government rolled out property cooling measures and stricter bank lending rules.

The fierce competition among property firms has also raised the risk of first-time developers abandoning their projects, Sivadas noted.

The high-rise residential market is particularly risky as oversupply looms largest in that segment.

On Monday, Monetary Authority of Singapore (MAS) board member Lawrence Wong expressed concern over the 335,838 private homes in the pipeline in Iskandar, which is more than the overall number of private units in Singapore.

Tan Ka Leong, director of property consultant WTW Johor Baru, said oversupply may be a real threat in the state of Johor over the next two to three years.

As such, consultants are advising investors to only shop for property in Iskandar if their pockets are deep enough to withstand a down market.

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Posted in Overseas Property

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