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Business Times
27-05-2025
- Business
- Business Times
Bukit Sembawang H2 earnings up 13% at S$51.4 million; company proposes higher special dividend
[SINGAPORE] Property developer Bukit Sembawang Estates reported a net profit after tax of S$51.4 million for the second half of its financial year ending Mar 31, a 13 per cent increase from S$45.6 million over the same period last year. The increase was mainly due to higher profits being recognised for residential development projects Pollen Collection, Liv@MB and Fraser Residence Orchard, said the property developer via a bourse filing on Monday (May 26). However, revenue fell 24 per cent to S$225.9 million from S$297.7 million over the same period mainly due to the absence of revenue contribution from a completed project call The Atelier, which had its revenue fully recognised in the previous half-year reporting period. Cost of sales was down 34 per cent at S$166.5 million. However, gross profit rose 32 per cent to S$59.4 million in H2 FY2025. As a result, earnings per share increased to S$0.1984 from S$0.1762 over the same period. While higher profits were recognised from the property development segments, there were lower profits from the hospitality segment. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up This was due to lower impairment loss on property, plant and equipment at Fraser Residence Orchard. The company said that the cooling measures implemented in April 2023 – when the government hiked Additional Buyer's Stamp Duty rates to 60 per cent for foreigners – continue to dampen property demand, particularly from foreign buyers as well as investment-driven purchases by Singaporeans and permanent residents. 'At the same time, a cautious economic outlook, both globally and locally, is weighing on investor sentiment. Within this context, the residential property market remains challenging, with elevated construction and development costs continuing to put pressure on margins,' the group said. 'The group will continue to monitor the progress of construction of our ongoing projects to ensure timely completion. It will also adopt a prudent and measured approach in calibrating the timing of upcoming launches of residential projects, in alignment with prevailing market conditions and buyer sentiment,' it added. For the full year, earnings surged 61 per cent to S$114 million on a 2 per cent dip in revenue to S$550 million. The group has proposed a final dividend of 4 cents and special dividend of 16 cents a share; compared with 4 and 12 cents the year before. Shares of Bukit Sembawang Estates fell 0.3 per cent, or S$0.01 to close at S$3.92 on Monday.
Business Times
26-05-2025
- Business
- Business Times
Bukit Sembawang Estates H2 FY2025 earnings up 13% at S$51.4 million
[SINGAPORE] Property developer Bukit Sembawang Estates reported a net profit after tax of S$51.4 million for the second half of its financial year ending Mar 31, a 13 per cent increase from S$45.6 million over the same period last year. The increase was mainly due to higher profits being recognised for residential development projects Pollen Collection, Liv@MB and Fraser Residence Orchard, said the property developer via a bourse filing on Monday (May 26). However, revenue fell 24 per cent to S$225.9 million from S$297.7 million over the same period mainly due to the absence of revenue contribution from a completed project call The Atelier, which had its revenue fully recognised in the previous half-year reporting period. Cost of sales was down 34 per cent at S$166.5 million. However, gross profit rose 32 per cent to S$59.4 million in H2 FY2025. As a result, earnings per share increased to S$0.1984 from S$0.1762 over the same period. While higher profits were recognised from the property development segments, there were lower profits from the hospitality segment. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up This was due to lower impairment loss on property, plant and equipment at Fraser Residence Orchard. The company said that the cooling measures implemented in April 2023 – when the government hiked Additional Buyer's Stamp Duty rates to 60 per cent for foreigners – continue to dampen property demand, particularly from foreign buyers as well as investment-driven purchases by Singaporeans and permanent residents. 'At the same time, a cautious economic outlook, both globally and locally, is weighing on investor sentiment. Within this context, the residential property market remains challenging, with elevated construction and development costs continuing to put pressure on margins,' the group said. 'The group will continue to monitor the progress of construction of our ongoing projects to ensure timely completion. It will also adopt a prudent and measured approach in calibrating the timing of upcoming launches of residential projects, in alignment with prevailing market conditions and buyer sentiment,' it added. Shares of Bukit Sembawang Estates fell 0.3 per cent, or S$0.01 to close at S$3.92 on Monday.
Straits Times
23-05-2025
- Business
- Straits Times
Ultra-luxury condo sales in Singapore see uptick in Q1 2025 despite economic headwinds
SINGAPORE – The ultra-luxury condominium market in the Republic appears to be regaining some traction, with 17 sales recorded in the first three months of 2025. This is more than double the seven units sold in the same period in 2024, and more than both the 15 units sold in the first quarter of 2023 and the 14 sold in the same period in 2022, before the Additional Buyer's Stamp Duty (ABSD) on foreign buyers was hiked to 60 per cent in April 2023. Urban Redevelopment Authority data showed that from January to May 22, there were 24 ultra-luxury condos – defined as units priced at $10 million and above in the Core Central Region (CCR) – sold, already exceeding the 17 units transacted in the first half of 2024. Among the standout transactions in 2025 was a penthouse at Park Nova, which changed hands for $38.888 million or $6,593 per square foot (psf) – the second-highest psf achieved. The highest psf record still belongs to a 3,089 sq ft unit at The Marq on Paterson Hill, which was sold for $6,650 psf in November 2011. Four deals exceeding $20 million each were recorded at 21 Anderson, a new freehold development by Kheng Leong, the real estate arm of the Wee Cho Yaw family. These high-end deals come as the economic outlook remains subdued . Singapore's gross domestic product (GDP) growth forecast for 2025 remains at a modest 0 to 2 per cent, reflecting broader global uncertainties. OCBC Bank chief economist and head of treasury research and strategy Selena Ling noted that the ultra-rich may have different priorities when it comes to property investment. 'They will likely prioritise macroeconomic and political stability, currency and capital appreciation potential, as well as ability to transact smoothly (both purchase and sale), so short-term slower economic growth forecasts may not matter that much since the purchases are not funded by ongoing earned income but by stock of wealth,' said Ms Ling. Ms Ling also pointed to de-dollarisation as a market theme that is gaining traction. With investors looking into potentially moving away from US dollar assets, top-tier currencies like the Japanese yen, Swiss franc and Singapore dollar are becoming more attractive. 'At the end of the day, Singapore's attractiveness is the Singapore dollar appreciation, limited land resources, affordable funding conditions, and role as a financial hub,' said Ms Ling. Still, market watchers cautioned it is too early to call this a rebound in the ultra-luxury condo market, although the uptick in sales signals renewed interest in ultra-luxury homes. 'Recent data points to a pickup in ultra-luxury transactions, but it's more a function of selective demand for standout projects than a broad-based recovery,' said Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI). Mr Sandrasegeran cited sales at Park Nova and 21 Anderson as examples of how well-located, prestigious projects continue to attract high-net-worth individuals and investors. ERA Singapore chief executive Marcus Chu made similar observations, noting that many buyers in this segment often seek out specific features: freehold tenure, large floor areas and multiple bedrooms. This demand is being further fuelled by scarcity. Only 78 new units were launched in the CCR in the first three months of 2025, said Mr Sandrasegeran. He added that upcoming projects such as W Residences – Marina View, Robertson Opus, and River Green could further invigorate interest in the second half of the year. Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, believes the ongoing global volatility may drive more capital into Singapore's luxury homes. Despite the recent 90-day tariff pause between the United States and China, investors remain wary of renewed volatility. 'It depends on how the macroeconomic conditions evolve over the next few months, especially after the 90-day truce period. If the macroeconomic landscape remains uncertain due to increased global trade challenges arising from the tariff policies enacted by the United States, then demand for luxury units may continue to rise,' said Ms Sun. 'This is because many investors consider these luxury properties to be safe haven assets that can help preserve their wealth during economic uncertainties. Therefore, more investors may park their money in luxury homes, especially if there is fresh turmoil in the equities market,' she added. The luxury segment is also seeing a shift in buyer demographics. Prior to the ABSD hike in 2023, foreign buyers dominated top-tier condo purchases. Now, local buyers – both citizens and permanent residents (PRs) – are playing a more prominent role in this segment. Of the 17 super luxury condos sold in the first three months of 2025, five units were purchased by Singapore citizens while eight were bought by PRs , noted Ms Sun. The numbers showed that there is a mix of local and foreigners supporting the ultra-luxury market, she said. Mr Chu of ERA said: 'We have seen a notable increase in the number of Singapore Permanent Residents purchasing luxury homes this year. It is likely that some of them are newly minted PRs entering the market and would take advantage of the lower ABSD payable.' Permanent residents pay 5 per cent ABSD on their first property, while citizens face 20 per cent ABSD only on their second property. Buyers from the US, Iceland, Liechtenstein, Norway and Switzerland do not need to pay ABSD for their first residential home in Singapore. Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
21-05-2025
- Business
- Business Times
Steady buyer demand seen supporting stream of private home launches in H2 2025
[SINGAPORE] A bumper crop of private homes is set to hit the market in the second half of 2025, with projects large and small putting more than 9,000 units in the pipeline for the rest of the year. A Citi Research note released on May 15 indicated that 35 upcoming projects, including landed homes and executive condominiums, could be launched over the rest of the year, yielding a total of 9,339 units. A total of 5,320 new condos were marketed in 10 launches since January. Of the launches being lined up, 19 projects offering 5,487 units are in the Core Central Region (CCR), 10 launches with 1,157 units are in the Rest of Central Region (RCR), and six Outside Central Region (OCR) projects will launch 2,695 units, Citi's research found. Demand is expected to hold steady, though take-up is likely to vary across projects, Lee Nai Jia, head of real estate intelligence at PropertyGuru, told The Business Times. Buyers are becoming more selective, he said, and cited proximity to schools, MRT stations and daily amenities as being among the top priorities among home buyers. With macroeconomic uncertainty stemming from US President Donald Trump's tariffs, buyer sentiment has turned more cautious. Lee noted that following the tariff announcements, users on the PropertyGuru listings platform have gravitated towards private homes priced at around S$1.9 million, and HDB resale flats at about S$740,000. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'They have reached a kind of resistance level, and we should see that tension between buyer and seller expectations play out in the coming months,' he said. 'Transaction activity will probably still go on, but slow down a bit in the second and third quarters, depending on Trump's policies.' Lee, referring to the bulk of launches expected in the CCR in the second half, said their locations were generally attractive, but that those that lacked connectivity or nearby amenities may face slower sales. Developments coming up in the Central Business District area are expected to encounter relatively subdued demand, given the lack of amenities and fewer foreign buyers snapping up units following the imposing of stricter cooling measures. The government doubled the Additional Buyer's Stamp Duty (ABSD) for foreigners buying residential property to 60 per cent in April 2023, knocking the wind out of the high-end market. BT previously reported that there were only 14 foreign buyers of new condos in the CCR in Q1 this year, a significant tumble from the 92 in Q1 2023, before the ABSD hike. Including resales and sub-sales in the CCR, foreigners made up 4 per cent of the total of 733 transactions in Q1 2025. In Q1 2023, this group made up nearly 16 per cent of buyers in 1,027 transactions. Still, Lee reckons that slower projects may gain traction over time as surrounding neighbourhoods evolve through rezonings, or the launch of adjacent developments. Huttons Asia's chief executive Mark Yip observed that the market has 'settled into a more relaxed pace' in Q2, after a sharp increase in activities in the luxury non-landed homes market in Q1. Based on caveats lodged, 72 luxury non-landed units were sold in Q1, the highest in two years. This is 63.6 per cent higher quarter on quarter, and 35.8 per cent higher year on year, Huttons' data showed. The total value of luxury non-landed homes sold in Q1 was S$611.4 million, 64.2 per cent higher than in Q4 2024 and 59.9 per cent higher on year. 'Some buyers are making opportunistic offers, but there is little sign of distress in the resale luxury non-landed market at the moment,' said Yip in the quarterly Huttons Prestige Report released on May 14. ETC (formerly Edmund Tie & Company) expects residential prices to moderate. 'Overall housing supply rises with the ramp-up of Government Land Sales (GLS) – a trend that should help support market stability and sustain healthy transaction activity.' That said, PropertyGuru's Lee expects developers to be more selective when bidding for sites, as material and labour costs may rise and sales slow; he cited the recent GLS tender for Parcel B in Media Circle, which had no takers. In recent months, new home sales have slowed from the quickening that the market underwent in the last quarter of 2024 and in Q1 of this year. Citi analyst Brandon Lee also expects lower land bids in the near future. He wrote in a report that the slower home sales 'could result in more attractive land prices for eight upcoming government tenders from May to September'. Apart from site-specific factors, developers are also cautious on the back of the US tariff announcements. The tender for the Media Circle plot which drew no takers was the first to close since the US announced its import tariff hikes. Developers were also said to be discouraged by the lacklustre performance this month at the nearby Bloomsbury Residences, which sold just a quarter of its total 358 units at an average price of S$2,474 per square foot. The cool response to Bloomsbury Residence aside, a further supply of about 325 private homes is slated to come up on the nearby Media Circle Parcel A, which was awarded in March to another Qingjian-Forsea-led tie-up at S$1,037 psf per plot ratio. PropertyGuru's Lee expects developers to maintain their selling prices. 'If they price (the units) overly high – especially with more launches coming in the second half – they risk pricing out consumers or the sector. 'If they lower their prices, they are also in danger: when costs increase, their margins may be further reduced.' Citi projects average monthly primary sales to hover at between 500 and 700 units, supported by soft mortgage rates. This is a decline from the 1,000-to-1,600-unit level in January and February.
Business Times
18-05-2025
- Business
- Business Times
Fewer property flippers in condo sub-sale market, but deals in Q1 still ‘highly profitable'
[SINGAPORE] Sub-sale volumes in Singapore's private housing market – where buyers can 'flip' a new unit before the project is completed – are on the decline, with speculative buying dampened by cooling measures and wider economic uncertainty now exacerbated by tariff-induced volatility. Even so, the majority of such transactions remained highly profitable. Sellers earned a median gross gain of S$257,000, data from local property portal showed. According to statistics from URA Realis, there were 292 sub-sale transactions in the first quarter of 2025 – down 26 per cent from a recent peak of 393 units in Q4 2023. The past year also saw a gradual decline in sub-sale volumes since Q4 2023. Quarterly numbers are, nevertheless, well above levels seen during the pandemic years of 2019 to 2021, when the new launch pipeline dried up and sub-sales averaged just 82 units per quarter. A sub-sale is recorded when a buyer resells a property bought directly from the developer, before the project is completed. It is typically seen as a proxy for speculative buying behaviour, and is a barometer of market confidence. On an annual basis, sub-sales rose by 4 per cent year on year to 1,315 transactions in 2024. In comparison, 2023 saw a 77 per cent jump, from 713 to 1,265 units. The surge followed pandemic-related construction delays, which prolonged project completions and drove buyers to the sub-sale market. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up However, this was still a far cry from the 5,283 transactions recorded in 2007, before cooling measures such as the Additional Buyer's Stamp Duty, Seller's Stamp Duty (SSD) and loan curbs, were introduced. These measures were rolled out between 2009 and 2013 to curb market speculation, following the global financial crisis of 2008. The number of sub-sales as a proportion of all non-landed private home sales (excluding executive condos) has also waned over time. In Q1 2025, just 4.3 per cent of all deals were sub-sales – less than half of the 13-year high in Q4 2023, at 9.8 per cent. Sub-sale levels hit an all-time high of 35.3 per cent of all sales in Q2 1995, well before the introduction of SSD. Driven by hot projects chief research officer Nicholas Mak attributed the recent easing of sub-sales to fresh cooling measures in 2023, which saw steep hikes in stamp duty rates curbing demand, and the elevated interest rate environment then. Activity in the sub-sale market is often driven by demand for hot-selling projects in popular locations. Mogul's analysis shows that between 2020 and 2025, two projects in particular – Gem Residences in Toa Payoh and Riverfront Residences in Hougang – had high sub-sale activity. The 578-unit Gem Residences had 149 sub-sale deals, 25.8 per of units in the project, while Riverfront Residences saw 379 sub-sale deals – also 25.8 per cent of its 1,472 units. While new home sales slumped after cooling measures kicked in 2023, primary sales picked up in the later part of 2024 with the launch of several high-profile condominiums. During the last quarter of 2024, Chuan Park sold over 60 per cent of its units at an average of S$2,579 per square foot (psf) when it launched in November, while Emerald of Katong moved nearly 99 per cent of its units at S$2,621 psf that same month. New projects marketed in Q1 this year were pitched at benchmark prices – notably The Orie in Toa Payoh at S$2,704 psf and Parktown Residences in Tampines at S$2,360 psf. Both projects saw strong sales and are now about 90 per cent sold. But with new project pricing at current levels, the potential for price appreciation has flattened, Mak noted. Seller's stamp duties also erode gains – those selling new units within a year of purchase are subject to the highest SSD rate of 12 per cent. The rate tapers to 8 per cent for units held for one to two years, and 4 per cent for those held for two to three years. New condo buyers now have less of a 'profit motivation' to sell their unit as a sub-sale, said Mak. 'Instead, they may decide to wait and hold to see if prices rise any further. Some of them have only one bullet, so they want to sell (the unit) at the most optimal price.' Making a pretty penny Still, the vast majority of sub-sale transactions in the past year were profitable, Mak noted. Just around 0.5 per cent of deals were unprofitable, and even fewer at 0.2 per cent simply broke even. Sellers also saw larger gross gains by both quantum and percentage. Mogul's analysis does not include taxes, fees, stamp duties (such as the SSD), agent's commission and mortgage interest payments. From Q1 2024 to Q1 2025, the median profit for a sub-sale was S$257,000 with a median holding period of just under four years. This was nearly 30 per cent higher than that of deals done between Q3 2020 to Q4 2023, with sellers raking in a median of S$200,000 in profit with about the same holding period. The median gross profit for a sub-sale was also 20.2 per cent over the last year, with annualised profits of 4.6 per cent. This was slightly higher than the 18.6 per cent median gross profit and 4.3 per cent annualised profit of the earlier period. The higher gains in the face of dwindling sub-sale deals were mainly due to the higher value of transactions, said Mak. Though there were more transactions in the earlier 2020 to 2023 period, the median price of a sub-sale then was S$1.33 million, versus S$1.54 million in 2024. Data from also showed that there were nine 'double sub-sales' – that is, a sub-sale that is subsequently sold as another sub-sale – since Q3 2020. Of the nine deals, all but one made a profit, Mak noted. He pointed out that the tally of 'double flips' used to be significantly higher – with more than 600 of such transactions every year – before SSD was introduced in February 2010. Despite the restrictions in place, sub-sales can be fairly profitable if the property is held for more than three years so that it is not subject to SSD. Investors can 'enjoy tax-free capital gain' that way, said Mak. The median profit made from a sub-sale transaction from Q3 2020 to Q1 2025 was S$220,000, or 19.2 per cent of the property's acquisition price. But with sentiment fragile amid tariff anxiety and hiring freezes across various industries, Mak reckoned that sub-sale volumes will gradually dwindle for the rest of the year. Sub-sale activity in the short term could still be supported by a relatively tight inventory of unsold new private homes, he said. Unsold stock of uncompleted private homes stood at just 7,144 units in Q1. This could be cleared in just over a year, based on developers' sales of 6,469 units in 2024.
