Commercial property deals in Singapore crash 50%
Commercial and hotel property deals in Singapore slumped 50 per cent in the first half of 2013, totaling $3.7 billion as opposed to $7.4 billion the the second half of 2012,data provided by real estate firm Knight Frank show.
While the company predicts that the sector will remain “active” for the rest of the “as both local and foreign investors show continuing interest”, compressed yields on the back of high selling prices, coupled with limited commercial properties available for sale, continue as “key obstacles for the conclusion of successful deals.”
Knight Frank said instead some of the local investors are expanding their foothold in other Asian countries in view of more available developments in the market and the potentially more attractive yields.
As for investment into residential property, recent government initiatives to moderate land bid prices and to promote financial prudence by property purchasers with the new Total Debt Service Ratio (TDSR) framework are being blamed for an expected decline in sales for the rest of 2013.
The 10 largest commercial investment deals in the first half of 2013 in Singapore were:
1. 22 retail units at The Sail@Marina Bay sold to Wen Way Investment for $105 million
2. CEL Property Investment, a subsidiary of Chip Eng Seng Corporation Ltd purchased San Center, a 12-storey office building located along Chin Swee Road, for $113 million.
3. The Kum family sold it 241-room Ibis Novena at Irrawaddy Road for $155 million to property funds managed by Keppel Land unit Alpha Investment Partners.
4. A 14-storey freehold office block 135 Cecil Street (Former LKN Building) was sold to Indonesian tycoon Tahir for $182 million.
5. Australian developer Lend Lease has sold its 25 per cent stake in new suburban mall Jem in Jurong East for $227 million.
6. 2HR at Havelock Road, a seven-storey retail complex, was sold to Singaporean property developer Guthrie for an estimated $282.88 million.
7. The Park Hotel Clarke Quay at Unity Street was sold to the Trust Company (Asia), as trustee of Ascendas Hospitality Real Estate Investment Trust (A-HREIT) for $300 million.
8. Pines Club in Stevens Road was sold to a unit of developer Oxley holdings for $318 million on a 103-year lease.
9. Insurer NTUC Income now fully owns the 37-storey 999-year leasehold 16 Collyer Quay, also known as Hitachi Tower, after buying the remaining 51 per cent stake. The buildig is valued at $660 million.
10. PoMo, a retail complex with a 99-year lease, was sold to BS Capital Pte , Enviro Holdings Ltd for $336.6 million.
Commercial and hotel property deals in Singapore slumped 50 per cent in the first half of 2013, totaling $3.7 billion as opposed to $7.4 billion the the second half of 2012,data provided by real estate firm Knight Frank show. While the company predicts that the sector will remain "active" for the rest of the "as both local and foreign investors show continuing interest", compressed yields on the back of high selling prices, coupled with limited commercial properties available for sale, continue as "key obstacles for the conclusion of successful deals." Knight Frank said instead some of the local investors are expanding...
Commercial and hotel property deals in Singapore slumped 50 per cent in the first half of 2013, totaling $3.7 billion as opposed to $7.4 billion the the second half of 2012,data provided by real estate firm Knight Frank show.
While the company predicts that the sector will remain “active” for the rest of the “as both local and foreign investors show continuing interest”, compressed yields on the back of high selling prices, coupled with limited commercial properties available for sale, continue as “key obstacles for the conclusion of successful deals.”
Knight Frank said instead some of the local investors are expanding their foothold in other Asian countries in view of more available developments in the market and the potentially more attractive yields.
As for investment into residential property, recent government initiatives to moderate land bid prices and to promote financial prudence by property purchasers with the new Total Debt Service Ratio (TDSR) framework are being blamed for an expected decline in sales for the rest of 2013.
The 10 largest commercial investment deals in the first half of 2013 in Singapore were:
1. 22 retail units at The Sail@Marina Bay sold to Wen Way Investment for $105 million
2. CEL Property Investment, a subsidiary of Chip Eng Seng Corporation Ltd purchased San Center, a 12-storey office building located along Chin Swee Road, for $113 million.
3. The Kum family sold it 241-room Ibis Novena at Irrawaddy Road for $155 million to property funds managed by Keppel Land unit Alpha Investment Partners.
4. A 14-storey freehold office block 135 Cecil Street (Former LKN Building) was sold to Indonesian tycoon Tahir for $182 million.
5. Australian developer Lend Lease has sold its 25 per cent stake in new suburban mall Jem in Jurong East for $227 million.
6. 2HR at Havelock Road, a seven-storey retail complex, was sold to Singaporean property developer Guthrie for an estimated $282.88 million.
7. The Park Hotel Clarke Quay at Unity Street was sold to the Trust Company (Asia), as trustee of Ascendas Hospitality Real Estate Investment Trust (A-HREIT) for $300 million.
8. Pines Club in Stevens Road was sold to a unit of developer Oxley holdings for $318 million on a 103-year lease.
9. Insurer NTUC Income now fully owns the 37-storey 999-year leasehold 16 Collyer Quay, also known as Hitachi Tower, after buying the remaining 51 per cent stake. The buildig is valued at $660 million.
10. PoMo, a retail complex with a 99-year lease, was sold to BS Capital Pte , Enviro Holdings Ltd for $336.6 million.
