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Business Times
23-05-2025
- Business
- Business Times
The best is yet to be for Tengah property prices, say DBS analysts
[SINGAPORE] Property developers such as GuocoLand could benefit from a potential rise in home prices near popular primary schools, particularly in emerging areas like Tengah New Town. Still, DBS Group Research cautioned in a report, titled 'Primary school premium: Fact or Fiction?', that price appreciation also depends on factors such as transport access, tenure, and project attributes. DBS analysts Tabitha Foo and Derek Tan said in the report, published on Thursday (May 22), that some primary schools are more popular than others because of historical ties valued by parents who are alumni, or their specialised programmes, the school culture, or proximity to home. Under Singapore's school balloting system, children living nearer oversubscribed schools are given higher priority for admission, which has prompted some parents to buy homes nearby to boost their child's chances of a place, they added. 'This 'proximity advantage' could make nearby properties more attractive to parents seeking to maximise their admission priority,' they said. However, while properties within 1 or 2 km of such schools generally appreciate more in price than their district averages, the trend is not consistent across all locations, the analysts noted. 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 For instance, the analysts said that a study of a sample of popular schools found that homes near Catholic High School and CHIJ St Nicholas Girls' School registered compound annual growth rates that were generally over 5 per cent – higher than their respective district averages. In contrast, properties near Singapore Chinese Girls' School and Rosyth School recorded more mixed results; some projects near these schools underperformed their surrounding districts. The analysts said that while moving closer to a popular school is 'one of the key factors driving potential price appreciation', it is also important to consider other factors. These include entry timing and price, proximity to MRT stations, lease tenure, the age of the project, the availability of multiple primary schools, and other development attributes. These considerations, they noted, may explain the variation in price trends across different school zones, despite similar proximity advantages. Looking ahead, the analysts said the upcoming Tengah New Town could be a development to watch, particularly with Anglo-Chinese School (Primary) School planning to relocate there by 2030. While the analysts said it is still early to quantify the impact the school's relocation will have on property prices in Tengah, they observed that the town is rapidly developing with numerous Build-To-Order launches, as well as the award of multiple Executive Condominium sites. DBS' report cited the awarding of a recent private condominium land parcel in Tengah to GuocoLand, Hong Leong Holdings and CSC Land Group in January under the Government Land Sales programme. The 25,458.4-square-metre site on Tengah Garden Avenue is zoned 'Residential with Commercial at 1st storey', and can potentially yield about 860 residential units. GuocoLand, which announced its results in February for its first half-year ended Dec 31, 2024, noted steady demand for its residential developments in Singapore. The property developer reported a net profit of S$74.6 million for H1, up 13 per cent from S$66.2 million in the year-ago period. The group attributed the improved performance to its main business engines: property investment and property development.
Business Times
23-05-2025
- Business
- Business Times
School proximity may boost home prices – but not everywhere: DBS report
[SINGAPORE] Property developers such as GuocoLand could benefit from a potential rise in home prices near popular primary schools, particularly in emerging areas like Tengah New Town. Still, DBS Group Research cautioned in a report, titled 'Primary school premium: Fact or Fiction?', that price appreciation also depends on factors such as transport access, tenure, and project attributes. DBS analysts Tabitha Foo and Derek Tan said in the report, published Thursday (May 22), that some primary schools are more popular than others because of historical ties valued by parents who are alumni, or their specialised programmes, the school culture, or proximity to home. Under Singapore's school balloting system, children living nearer oversubscribed schools are given higher priority for admission, which has prompted some parents to buy homes nearby to boost their child's chances of a place, they added. 'This 'proximity advantage' could make nearby properties more attractive to parents seeking to maximise their admission priority,' they said. However, while properties within 1 or 2 km of such schools generally appreciate more in price than their district averages, the trend is not consistent across all locations, the analysts noted. 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 For instance, the analysts said that a study of a sample of popular schools found that homes near Catholic High School and CHIJ St Nicholas Girls' School registered compound annual growth rates that were generally over 5 per cent – higher than their respective district averages. In contrast, properties near Singapore Chinese Girls' School and Rosyth School recorded more mixed results; some projects near these schools underperformed their surrounding districts. The analysts said that while moving closer to a popular school is 'one of the key factors driving potential price appreciation', it is also important to consider other factors. These include entry timing and price, proximity to MRT stations, lease tenure, the age of the project, the availability of multiple primary schools, and other development attributes. These considerations, they noted, may explain the variation in price trends across different school zones, despite similar proximity advantages. Looking ahead, the analysts said the upcoming Tengah New Town could be a development to watch, particularly Anglo-Chinese School (Primary) School planning to relocate there by 2030. While the analysts said it is still early to quantify the impact the school's relocation will have on property prices in Tengah, they observed that the town is rapidly developing with numerous Build-To-Order launches, as well as the award of multiple Executive Condominium sites. DBS' report cited the awarding of a recent private condominium land parcel in Tengah to GuocoLand, Hong Leong Holdings and CSC Land Group in January under the Government Land Sales programme. The 25,458.4 sq m site on Tengah Garden Avenue is zoned 'Residential with Commercial at 1st storey', and can potentially yield about 860 residential units. GuocoLand, which announced its results in February for its first half-year ended Dec 31, 2024, noted steady demand for its residential developments in Singapore. The property developer reported a net profit of S$74.6 million for H1, up 13 per cent from S$66.2 million in the year-ago period. The group attributed the improved performance to its main business engines: property investment and property development.
Business Times
16-05-2025
- Business
- Business Times
DBS Group Research upgrades SIA Engineering to a buy on ‘compelling growth,' raises target price
[SINGAPORE] DBS Group Research upgraded SIA Engineering's (SIAEC) stock to a 'buy' from a 'hold', citing limited exposure to tariff-related factors, growth ahead, among other factors. The group's price target was increased to S$2.80 from S$2.50. '(The upgrade reflects) SIA contract repricing upside, compelling growth narrative, and limited exposure to trade-related disruptions,' the research house said its note on Thursday (May 15). Given its parent company's strategy to maintain a young, technologically advanced fleet of airplanes, SIAEC is usually quick to gain expertise in maintaining new aircraft types and can win third-party business relating to these new age aircraft, DBS Group Research noted. It has the 'technology edge and strong captive business volumes owing to SIA parentage; (and is) well-positioned for long-term MRO (maintenance, repair and operations) demand growth, given its established partnerships with leading OEMs (original equipment manufacturers)', analyst Jason Sum wrote. The group's strategic partnerships with leading OEMs such as Safran and Rolls-Royce position it favourably for long-term growth in services, the note added. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For the full financial year 2024/25, SIAEC's net profit grew 43.8 per cent to S$139.6 million. It said the increase was supported by stable growth in the demand for aircraft MRO. The group's total revenue for the year increased by 13.8 per cent to S$1.2 billion, from S$1.1 billion. While group expenditure also grew, it rose at a slower pace of 12.7 per cent, with the increase largely due to higher manpower costs and increased material consumption. SIAEC is poised to capitalise on burgeoning air travel demand in the region, said Sum. In addition to its own operations in Singapore, Japan and the Philippines, SIAEC's broader network of associates and joint ventures is primarily concentrated in Asia, positioning the group's earnings for growth alongside the normalisation of traffic in the region. Furthermore, the group's facilities are better suited to servicing widebody aircraft used for longer distance international flights. Over the next few years, SIAEC has multiple levers in place to drive growth, including developing new engine capabilities and base maintenance operations in Subang this year, according to the note. Additionally, the group was recently selected to be Air India's strategic MRO partner and is poised to capitalise on the promising long-term growth outlook of the Indian aviation market. 'This reflects our upward earnings revision and greater conviction in the group's trajectory toward stronger core operating performance,' said Sum. 'We also favour its relative insulation from tariff-related risks, which reinforces the quality of its earnings outlook,' he added. SIAEC shares were trading at S$2.44 at 4 pm on Friday, up 1.3 per cent or S$0.03.
Wall Street Journal
13-03-2025
- Business
- Wall Street Journal
Asian Currencies Consolidate Amid Rising Global Trade Tensions
0203 GMT — Asian currencies consolidate against the dollar in the morning session amid rising global trade tensions. 'Elevated trade uncertainty has now become a negative for business confidence, for investment, and for growth,' DBS Group Research's Chang Wei Liang says in a commentary. The outlook for U.S. economic exceptionalism could be fading, the FX & credit strategist says. The Dollar Index is consolidating around the mid-103s, getting little boost from escalating trade concerns, the strategist adds. USD/KRW edges 0.1% lower to 1,450.07; USD/SGD is little changed at 1.3326; USD/CNH is steady at 7.2396. (
Yahoo
12-02-2025
- Business
- Yahoo
Gen Z and Millennials lag in retirement savings
Singapore's younger generations are falling behind in retirement savings, with Gen Z and millennial investors aged 25 to 44 investing the least among all pre-retirement age groups, according to DBS study. Despite having a longer investment horizon, they allocate only 15% to 17% of their salaries to investments, with over half directed toward lower-yield fixed-income assets. The sixth edition of DBS' Financial Wellness series, which analysed data from two million retail customers, highlighted the financial strain younger generations face due to liabilities such as home, car, and credit card loans. Those aged 35 to 44 are particularly stretched, with debts slightly outweighing their liquid assets. Balancing responsibilities like raising children, supporting ageing parents, and career progression often leads them to prioritise immediate financial needs over long-term retirement planning. However, DBS emphasises that younger investors still have time to build their nest egg. By 2030, the bank recommends a retirement savings target of SGD550,000 ($406,477) for those with conservative needs and up to SGD1.3m for those with more aspirational goals. Retirement Planning in Singapore: Key Findings Retirees aged 65 and older have a stable financial position, with CPF payouts covering 55% of their expenses, but rising healthcare costs remain a significant concern. According to the 2023 Household Expenditure Survey, healthcare accounts for 11% of expenses for retirees, compared to 6.7% for the general population. Strategies for a Secure Retirement DBS recommends several strategies for younger investors to strengthen their financial position: CPF LIFE payouts are crucial for retirement, but individuals can increase their savings by setting aside the Full Retirement Sum (FRS) or Enhanced Retirement Sum (ERS). Younger investors are encouraged to diversify their investments by investing more in equities through unit trusts, ETFs, or insurance plans for higher returns. Generating multiple income streams, such as rental income, annuities, and home equity monetisation through lease buy-back schemes or equity products. DBS sees a surge in retail investment activity, with nearly one million customers actively investing and insuring, and a doubled year-on-year increase in Regular Savings Plans. Said Derek Tan, Head of Regional Property Research, DBS Group Research stated: 'Across generations, the question of whether SGD 1 million is enough for retirement remains a hot topic. Our study has revealed that early financial planning for a well-structured nest egg can enable individuals to navigate immediate financial priorities while preparing for a fulfilling retirement. However, seniors will need to address the dual challenge of managing rising healthcare costs while ensuring their wealth continues to support a comfortable lifestyle in their golden years.' The Role of Property in Retirement Homeownership remains a key advantage for Singaporean retirees, as property accounts for nearly half of household wealth. DBS found that 99.7% of its retired customers have fully paid off their mortgages by age 65, offering them an opportunity to unlock liquidity if needed. Taking Charge of Financial Future DBS has reduced the minimum investment sum for three of its digiPortfolios, starting with SGD 100, and reduced fund house fees for its SaveUp and Retirement digiPortfolios. Additionally, DBS has introduced a "decumulation" feature in its Retirement digiPortfolio, enabling retirees to set up regular withdrawals while ensuring they do not outlive their savings. As financial pressures mount for younger generations, early and strategic planning will be key to achieving a secure and comfortable retirement. Lorna Tan, Head of Financial Planning Literacy, DBS Bank shared: 'Financial planning doesn't have to be daunting – it's about taking small, achievable steps to build a more secure future. At DBS, our role is to cut through the clutter and empower Singaporeans with the right tools, insights, and expert advice to navigate their journey with confidence. We have supplemented this process with four essential money habits: Save, Protect, Grow, and Retire, and their respective rules of thumb. For instance, by adopting the 'Pay Yourself First' guideline, setting aside savings before spending, and leveraging the power of compounding through investments, individuals can steadily work towards their retirement goals. This is in addition to CPF – a robust social security savings scheme the government has in place – that will help boost the retirement adequacy among Singaporeans.' "Gen Z and Millennials lag in retirement savings" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
