Tag Archives: Singapore Real Estate

CapitaLand to buy Orchard area property for S$359m

Posted on 10 Jul 2012 | Comments Off on CapitaLand to buy Orchard area property for S$359m

CapitaLand said it will buy an Orchard area property from its associate, Ascott REIT, for S$359 million.

It will redevelop the property, Somerset Grand Cairnhill, into an integrated development comprising serviced residences (with hotel licence) and high-end residential properties.

CapitaLand is expected to sell the redeveloped serviced residences (with hotel licence) back to Ascott REIT for S$405 million in 2017.

Sales of the 200 to 250 high-end residential units, which should comprise 60 per cent of the development, are slated for launch next year.

Ascott, the serviced residences arm of CapitaLand, said it will be using part of gains from two divestments for investment opportunities in Europe.

These include divesting serviced residences The Ascott Raffles Place and the entire interest in Ascott Guangzhou to Ascott REIT for S$220 million and S$63.6 million, respectively.

Chong Kee Hiong, CEO of The Ascott Ltd, said: “I think selling to the REIT is in line with the price that the tender results have shown. Of course, we own 49 per cent of Ascott REIT — all things being the same, our preference obviously is to sell to Ascott REIT than to sell to third party.”

CapitaLand said the new Cairnhill serviced residences component is neither profitable nor loss-making, and analysts predict the upside will mainly come from the selling price of future residential units.

Source : CNA – 2012 Jul 10

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Posted in Office / Retail / Industrial, Property Market / Real Estate

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Private houses bought by foreigners and companies fall sharply

Posted on 10 Jul 2012 | Comments Off on Private houses bought by foreigners and companies fall sharply

The proportion of private residential properties bought by foreigners and companies has fallen sharply – from about 20 per cent in 2011 to 7 per cent in the first half of this year.

Short-term property speculation has also fallen sharply, as indicated by the relatively low volume of sub-sales.

And private home prices moderated significantly, rising marginally by 0.3 per cent in the first half of 2012 compared to the 6 per cent increase for the whole of 2011.

National Development Minister Khaw Boon Wan said the Additional Buyer’s Stamp Duty (ABSD), together with the earlier rounds of cooling measures and the ramp up in both public and private housing supply, has produced “encouraging results”.

The ABSD was introduced last December to moderate investment demand for private residential property and to promote a more stable and sustainable market.

In particular, a higher ABSD rate for foreign buyers and companies was introduced, in view of the large pool of liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market.

Mr Khaw said these measures have helped the home buyers, including those at the middle and low-end of the market.

For mass market private housing outside the central region, prices have moderated with a slower pace of increase of 0.4 per cent in the second quarter of 2012, compared to the 1.1 per cent increase in the previous quarter.

For the public housing market, the significant ramp up in new flat supply has enabled most first-timers a chance to select a BTO flat if they apply for one.

These are positive signs that the market is moving towards a stable and more sustainable path.

Mr Khaw said the government will continue to monitor the market closely, and remain ready to revise and enhance the policy, if and when the situation demands it.

Mr Khaw was responding in a written answer to a parliamentary question tabled by Nominated MP Tan Su Shan on Monday.

Source : Channel NewsAsia – 10 Jul 2012

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Posted in Property Market / Real Estate

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