Tag Archives: Economy

Residential en-bloc market on the decline

Statistics from the Urban Redevelopment Authority (URA) show that the total transaction value of residential en-bloc properties for the first half of this year has plunged by 80 per cent compared to the same period last year.

And there were fewer en-bloc property transactions.

Real estate analysts believe that this is due to the global economic slowdown, and the government cooling measures introduced late 2011.

In the first half of last year, 28 en-bloc residential properties were successfully transacted.

But this fell to just eight in the same period this year.

Among them was Nam Peng Centre in Upper Serangoon Road.

Between January and June this year, the total transaction value of residential en-bloc properties fell to about S$250 million, from almost S$1.6 billion in the same period last year.

Analysts said the additional buyer’s stamp duty introduced by the government in December last year has curbed speculative demand for properties.

In addition, developers who buy en-bloc projects are now required to build and sell all units on the residential site within five years of acquiring the land.

Otherwise, they have to pay an additional 10 per cent in stamp duty.

So developers have been extra cautious before they enter the market.

Director of Ascendant Assets Pte Ltd, Getty Goh, said: “In the past, developers can buy certain pieces of land and sit on it almost indefinitely. These days with all these additional constraints, it would definitely make a developer think twice before proceeding with an en-bloc transaction.”

And with more land sites released through the Government Land Sales programme (GLS), this gives developers more choice, which in turn, pushed down the transaction price of en-bloc projects.

Goh said: “About 14 land parcels have been awarded via the GLS programme. However, the highest that has been transacted at was about S$400 million. Naturally, this puts a price pressure on the en-bloc market.”

The value of en-bloc deals for the first half of this year is merely 9 per cent of the total transaction value for the whole of last year.

Analysts feel that while the market may pick up in the second half of this year, it is unlikely to top last year’s numbers.

But, if the price for en-bloc projects in mature estates is not too high, developers would still be keen on them.

Source : Channel NewsAsia – 29 Jul 2012

 

 

 

CapitaMalls Asia Q2 net profit up 40.7% on-year

Shopping mall developer CapitaMalls Asia has posted S$232 million in net profit for the second quarter of the year, up 40.7 per cent from the same period last year.

CapitaMalls Asia attributed the rise in net profit to portfolio gains from its injection of two of its China assets into a private fund, as well as contributions from newly-acquired properties in Japan and China.

Group revenue for the three months ended June 30 climbed 18.7 per cent on-year to S$74.6 million.

Meanwhile, net profit for the first half of its fiscal year climbed 39.6 per cent to S$298.8 million, while revenue climbed 28.7 per cent in the same period to S$145.5 million.

The company had announced an interim dividend of 1.625 Singapore cents per share, 8.3 per cent higher than last year’s interim dividend of 1.5 Singapore cents.

Mr Liew Mun Leong, chairman of CapitaMalls Asia said in a statement that the board expects total dividend payout for the full-year to be at least 3.0 Singapore cents per share.

“To further grow our shopping mall business, we will continue to pursue selective acquisitions in our key markets of Singapore, China and Malaysia, as well as any other good opportunities that give us income and potential for growth,” chief executive Lim Beng Chee said.

CapitaMalls Asia holds a portfolio of 98 shopping malls geographically diversified across 51 cities in five Asian countries, including Singapore, China, Malaysia, Japan and India.

Its portfolio has a combined property value of S$30.4 billion.

Source : Channel NewsAsia – 26 Jul 2012