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SINGAPORE - Prime office rents are expected to rise this year thanks to improving economic sentiments, Cushman & Wakefield has said in its latest report.
The leasing market was active in the first quarter of this year with the number of enquiries in the market at a generally healthy level, the real estate firm said.
With the limited supply of prime grade A office space in the market, the average grade A overall rent was marginally higher at $9.90 per square foot per month (psf/mo) in the first quarter of 2014, up by 5.5 per cent from the previous quarter. Compared to the same quarter a year ago, the average grade A effective monthly rent was up by a firm 10.1 per cent.
[SINGAPORE] Singapore's office rents are set to rise as much as 15 per cent this year on increased demand and a dearth of new developments, said Lynette Leong, chief executive officer of CapitaCommercial Trust Management Ltd.
Global companies including Cargill Inc, the biggest US agricultural firm, and Bordier & Cie, a Swiss private bank's local subsidiary, are driving the recovery as they set up offices in the central business district, said Ms Leong, whose company manages the biggest office trust in Asia outside Japan.
A CONSORTIUM that includes private equity group KOP is believed to be doing exclusive due diligence on a potential purchase of Keppel Reit's majority stake in Prudential Tower.
Sources say the pricing could be in the region of $2,340 per square foot (psf) of net lettable area (NLA). Based on the 221,241 sq ft net lettable area or 92.8 per cent share of the building that Keppel Reit owns, the deal size would work out to nearly $520 million.
SINGAPORE - CapitaGreen the newest 40-storey Grade A office building in Singapore's central business district (CBD), has secured its first three tenants.
Commodities trading giant Cargill has signed on for 51,000 sq ft, and the Singapore unit of Swiss private bank Bordier & Cie is leasing more than 12,000 sq ft.
The third tenant will be an international gym operator which plans to launch a new club and lifestyle concept at CapitaGreen with 18,000 sq ft, said the development's joint venture partners - CapitaLand, CapitaCommercial Trust and Mitsubishi Estate Asia - on Tuesday.
Announced by Prime Minister Lee Hsien Loong in his National Day Rally speech in August last year, Project Jewel at Changi Airport will become another iconic international attraction when it opens in 2018. It will cement Singapore’s position as a top tourist destination and also better serve domestic consumers.
Project Jewel will also join other recent retail developments in Singapore, namely Westgate and Jem in Jurong East and Bedok Mall. With the iconic Orchard Road area and the many heartland malls already in existence, it begs the question: Does Singapore need so many malls? The answer is yes.
THE government will make more factory and shop space available over the next three years to ensure there is enough supply for businesses as they plan for the long term.
Minister of State for Trade and Industry Teo Ser Luck said in Parliament yesterday that an average of 500,000 sq m of multiple-user factory space will come on-stream each year for the next three years.
As the housing market moves into the peak rental season, the Core Central Region (CCR) continues to struggle to regain the rents it commanded before the global financial crisis.
According to the Singapore Real Estate Exchange’s (SRX) Rental Price Index for non-landed private homes, rents in the CCR are now down 1.9 per cent from their pre-crisis peak. The CCR consists of the city centre including high-end areas such as Orchard, River Valley, Bukit Timah, Holland Road, Harbourfront and Sentosa Cove. In contrast, rents in the Rest of Central Region (RCR), or city fringes, and the Outside Core Region (OCR), or suburbs, have exceeded their pre-crisis price peaks by more than 8 per cent.
Singapore's non-oil exports rebounded strong in December, smashing consensus expectations. Economists told CNBC this jump could help propel the economy's recovery this year.
Non-oil domestic exports (Nodx), which include sectors such as electronics and pharmaceuticals, were up 6 percent in December from a year earlier, a sharp rebound on the 8.9 percent contraction in the previous month, and well above consensus expectations for a 1.7 percent rise.
Recent alarmist commentary may have stirred up concerns about Singapore's economy, but in the midst of the emerging market rout, safe-haven seekers' faith appeared unshaken as they scooped up its currency.
"We have noted its safe-haven status within the Asian region is getting stronger in past years. So when you have a broad risk off, in general the Singapore dollar will outperform," said Ju Wang, senior foreign-exchange strategist at HSBC.
The U.S. Federal Reserve's massive bond-buying program to stimulate the U.S. economy has long sparked fears that it was inflating property prices. But now the Fed has started to wind down its purchases, concerns are rising that "tapering" could generate new risks for global property markets.
The Fed's $85 billion of bond purchases every month had pumped extra liquidity into the world's financial system. All these extra funds encouraged investors to pile into riskier assets – such as property.
This in turn contributed to dramatic house price rises across a number of emerging markets. In 2013, Indonesian house prices rose by 13.5 percent, Turkey's increased by 12.5 percent and Brazil's were 11.9 percent higher, according to global property consultancy Knight Frank's Global House Price Index.
Singapore's famously efficient government faces a challenge that has stymied many a country before: safely guiding its toppish property market to a soft landing as interest rates rise.
Property prices in the city-state have surged over 60 percent since 2009, propelled by rock-bottom global interest rates and quantitative easing in developed economies, even as Singapore's government has enacted a series of cooling measures to prevent a bubble from forming.
Singapore's property market has entered a standoff between bargain-seeking buyers and developers sticking to their pricing guns, with March's new home sales dropping 83 percent from a year earlier.
"Buyers think they can have their cake and eat it," said Alan Cheong, senior director for Singapore at Savills Research. "They are expecting the other side to lose money on their behalf. That idea doesn't work if you have an economy that's fully functioning," he said, citing the city-state's unemployment rate of only 1.5 percent.
Prime residential development land prices in Singapore fell 1.4 percent over the period of December 2011 to December 2013, according to the Knight Frank Prime Asia Development Land Index, which was launched today.
This page aims at giving an overview of the current regulations regarding residential property transactions in Singapore, result of the 8 rounds of cooling measures made by the authorities since 2009.
Should local players be scared?
According to BNP Paribas, in the past few years, it has seen foreign developers, especially the Chinese developers, making an effort to gain market share, possibly for scale effect, and for beefing up their pipeline to sustain their business operations in Singapore.
Here's more:
CapitaLand Ltd , Southeast Asia's biggest property developer, said it has offered S$3.06 billion (1.46 billion pounds) to buy out minority shareholders in its 65-percent owned CapitaMalls Asia Ltd business.
In a deal that would simplify its corporate structure and taking advantage of a discount valuation at the unit, CapitaLand said on Monday it's offering S$2.22 per share in CapitaMalls, a shopping malls operator. That represents a 23 percent premium to last Friday's CapitaMalls closing share price of S$1.80.
Trading in both CapitaMalls and CapitaLand, 39-percent-owned by Singapore sovereign investor Temasek Holdings , was halted from the start of trading on Monday pending an announcement.
Despite headwinds in the market.
According to Knight Frank, more international investors are venturing into Singapore real estate market. The chart illustrates the estimated investment volume ploughed in by REITs as well as local and international investors in 2012 and 2013. Local investors continued to dominate the investment sales landscape in Singapore despite the growing trend of venturing into overseas markets.
Despite the headwinds in the market, there are still signs of optimism as shown by the growing number of overseas investors in Singapore. Overseas investments in Singapore surged by more than 90.2 per cent from $3.4 billion in 2012 to $6.4 billion in 2013.
Not any more.