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Straits Times
23-07-2025
- Business
- Straits Times
Local buyers are key to recovery of prime district condo market
Find out what's new on ST website and app. The strong weekend showing also comes after two years of tepid sales of new prime district condos, which plummeted to a record low of 46 units sold in the second quarter of 2025. SINGAPORE – When Malaysia's IOI Properties began pre-sales for its 683-unit, 99-year leasehold condo W Residences Marina View in Singapore's Central Business District on July 13, only two units were reportedly booked. It was a sign of how foreign buyers, deterred by hefty taxes on their property purchases, were still giving the luxury housing segment a miss. But just a week later, two new prime district condos, UpperHouse at Orchard Boulevard and The Robertson Opus in Unity Street – the only 999-year residential project launch in District 9 this year – collectively sold 303 units over their July 19 launch weekend. This is above the 253 new units sold in the third quarter of 2023 after foreign buyers were slapped with a 60 per cent additional buyer's stamp duty (ABSD) in April 2023. The strong weekend showing also comes after two years of tepid sales of new prime district condos, which plummeted to a record low of 46 units sold in the second quarter of 2025, according to PropNex. The dry spell afflicting prime district condos appears to be lifting, with UpperHouse and The Robertson Opus poised to boost prime district transactions to a two-year quarterly high in the third quarter this year. These units have become more appealing as the price gap between prime district condos and those in the city fringe has narrowed substantially. As a result, they offer better value to local buyers, who were primarily behind the weekend's strong showing at the two launches. The gap between the median price per square foot (psf) of new homes in the prime district and city fringe areas has narrowed from a high of 56.5 per cent in 2018 to a mere 1.9 per cent in the first half of 2025, Huttons Asia chief executive Mark Yip noted. Furthermore, the three-month compounded Singapore Overnight Rate Average, or Sora rates, have dipped below 2 per cent in July 2025, lowering borrowing costs, he added. An artist's illustration of The Robertson Opus in Unity Street. PHOTO: FRASERS PROPERTY, SEKISUI HOUSE As a result, more than 93 per cent of new non-landed private homes in the prime district in the first half of the year were bought by Singapore Permanent Residents and Singaporeans. PropNex chief executive Kelvin Fong noted that the average $3,350 psf price transacted at UpperHouse is among the most competitive prices for a luxury condo launch in the prime Orchard Road area. In comparison, the 54-unit freehold Park Nova luxury condo in Tomlinson Road recorded a median price of $4,979 psf when it first launched in May 2021. On a quantum basis, transacted prices of UpperHouse's one-bedders began at nearly $1.4 million, while two-bedders ranged from $2.1 million to $2.7 million. At The Robertson Opus, some 41 per cent of its 348 units were sold on July 20. The units fetched an average price of $3,360 psf. Transacted prices of its one-bedders (495 sq ft) ranged from $1.59 million to $1.67 million, while two-bedders (689 to 721 sq ft) sold for between $2.17 million and $2.63 million, according to PropNex. In comparison, W Residences – which will sit atop the 360-room five-star W Singapore hotel – said it is offering selected units at special preview prices starting from just above $3,20 0 psf. That means prices of the cheapest one-bedroom units (538 sq ft to 570 sq ft) start at above $1.8 million. When asked how it plans to boost demand, IOI Properties said on July 22 that 'interest has been encouraging, with units already reserved or under negotiation'. A spokesman added that further release plans will be evaluated when the preview ends. With several more prime district and centrally located projects expected to be launched in the coming months, developers may become more strategic in their marketing plans and pricing, ERA key executive officer Eugene Lim said. This can be seen in the starting prices for River Green in the prime district of River Valley, and the nearby city fringe condo Promenade Peak at Zion Road. River Green's starting price of $2,846 psf and Promenade Peak's starting price of $2,680 psf appear to be a sweet spot for buyers of centrally located new launches. Both projects, which will launch on Aug 2, saw robust demand during July previews. Two more centrally located condos could begin pre-sales in October: prime district project Skye at Holland, and Zyon Grand at Zion Road, a city fringe project. Whether the rebound in new prime district condo sales can be sustained will depend on the take-up rates of the upcoming prime district and centrally located new launches. Mr Nicholas Mak, chief research officer at said this also hinges on whether prices of the new prime district launches are within 'an acceptable price range' – which appears to be the lower end of the $3,000 psf range for 99 year-leasehold launches, and between $3,250 and $3,500 psf for freehold developments. With the hefty ABSD still in place for residential property purchases by foreign buyers, the only way to keep local buyers interested in prime district properties is to ensure that prices are accessible to them , especially in the face of growing economic uncertainty.
Forbes
20-07-2025
- Business
- Forbes
UOL Sells 54% Of Upscale Singapore Housing Project Despite New Property Curbs
The Marina Bay Sands hotel and casino in Singapore. UOL Group—controlled by the family of the late banking and real estate tycoon Wee Cho Yaw—sold more than half of an upscale residential project even as the government recently introduced new measures to curb housing prices in one of the world's most expensive property government earlier this month raised the stamp duty for investors who sell their private homes within four years, with those selling their property within Earlier this month, the government raised the stamp duty on homebuyers who sell their property within one year of purchase to 16% tax from 12% previously. The holding period for homes that will incur the stamp duty has also been extended to four years from three years previously. Undaunted by the fresh property curbs, UOL started selling the Upperhouse, a 35-story residential tower in the Orchard Road shopping district, on Saturday. The launch of Upperhouse follows recent launches of several upscale projects within the Singapore central business district such as W Residences, a 683-unit project being built by Malaysia's IOI Properties in Marina Bay, and Robertson Opus, a 348-unit development along the Singapore River by Frasers Property and Japan's Sekisui House. UOL said it sold 162 of the 301-unit residential skyscraper on Saturday at an average selling price of S$3,350 ($2,610) per square foot. A high floor unit was sold at about S$7.66 million or around S$3,724 per square foot, it added. 'The strong take-up at Upperhouse at Orchard Boulevard's private preview reflects buyers' confidence in its location in the Orchard Road precinct,' Yvonne Tan, chief corporate and development officer at UOL Group, said in an emailed statement. 'It also affirms that buyers are drawn to launches with strong product and locational attributes.' The 99-year leasehold site was acquired by UOL and its subsidiary Singapore Land in a government land auction in February 2024 for S$428 million. The property is adjacent to the Orchard Boulevard MRT station and right across Park Nova, the most expensive residential condominium in the city-state developed by billionaire Pansy Ho's Shun Tak Holdings. UOL, along with United Overseas Bank, is among the assets left by billionaire Wee Cho Yaw—who passed away in February last year at age 95—to his family. With a net worth of $7.8 billion, the Wee family is among the wealthiest in Singapore. The late tycoon's three sons—Ee Cheong, Ee Chao and Ee Lim—joined the Forbes billionaires list in April this year. Ee Cheong is the vice chairman and CEO of UOB, while Ee Lim is chairman of UOL.
Forbes
16-06-2025
- Business
- Forbes
Billionaire Brothers' IOI Properties Explore Options For Singapore, Malaysia Assets
The South Beach, located in the Singapore central business district, houses the JW Marriott Hotel ... More and an office block. IOI Properties—controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng—is weighing its options on how it could monetize its commercial real estate in Singapore and Malaysia, worth almost $9 billion based on analyst estimates. The Kuala Lumpur-listed company has been expanding its property footprint in Singapore where it recently agreed to take full ownership of South Beach—a mixed use property housing the JW Marriott Hotel and an office tower—in a deal valuing the complex at S$2.75 billion ($2.1 billion) by acquiring the 50.1% stake of City Developments, which is controlled by billionaire Kwek Leng Beng and his family. 'With its stable cash flows and prime location, South Beach is well-positioned to anchor IOI Properties' planned asset monetization exercise via a Singapore REIT listing,' Tan Kai Shuen, an analyst at Hong Leong Investment Bank in Kuala Lumpur, wrote in a recent research note. The Singapore REIT—comprising the South Beach complex and the newly completed IOI Central Boulevard Towers in Marina Bay—could be listed by 2027 with assets worth as much as S$8 billion, Tan wrote. IOI Properties is also developing yet another Singapore landmark, a W Residences Marina View, comprising a hotel and a residential condominium. Tan said IOI Properties could separately list a Malaysian REIT with assets worth as much as 8 billion ringgit ($2.4 billion) as soon as next year. The group's assets in Malaysia include the IOI City commercial complex in Putrajaya, outside Kuala Lumpur. The flagship property comprises a shopping mall (the biggest in the country with a gross floor area of about 2.5 million square feet), office towers and hotels. The company did not confirm nor deny the listing plans for the two REITs when asked to comment on Hong Leong Investment Bank's report. 'IOI Properties Group will strategically consider and review various possibilities in regards to monetizing our assets as we look to ensure the group's sustained growth ahead, both in Malaysia and Singapore,' the company said in an emailed statement. 'We are keeping our options open for any opportunities by leveraging and optimising our position in creating additional value for our stakeholders and strengthening our diverse offerings.' With a combined net worth of $5.2 billion, the Lee brothers are among the wealthiest in Malaysia. They are the sons of the late Lee Shin Ying, who built a thriving palm oil and property business until his death in 2019. Lee Yeow Chor runs the palm oil business under separately listed IOI Corp, while his younger brother Yeow Seng helms the real estate company.
Straits Times
15-06-2025
- Business
- Straits Times
Malaysia's IOI Properties targets potential Singapore Reit listing in 2027
The acquisition will give IOI Properties full ownership of South Beach, which comprises South Beach Tower (pictured), South Beach Avenue and the JW Marriott Hotel Singapore South Beach. ST PHOTO: KUA CHEE SIONG SINGAPORE - Malaysia's IOI Properties Group is planning to list a real estate investment trust (Reit) in Singapore by 2027, as part of a plan to monetise its assets and cut debt, according to a Malaysia investment bank. The Reit will include Singapore properties such as the South Beach mixed development and IOI Central Boulevard, which have an estimated combined valuation of $7 billion to $8 billion, wrote Hong Leong Investment Bank analyst Tan Kai Shuen in a June 11 report. Citing intel from a meeting with IOI Properties chief executive Lee Yeow Seng, Mr Tan noted that the Singapore Reit listing is part of a two-pronged monetisation strategy that also includes a Malaysia Reit listing targeted for mid-2026, with assets valued at RM7 billion (S$2.11 billion) to RM8 billion. Both listings are expected to improve cash flow and reduce IOI Properties' net gearing, which could rise to around 0.93 times following its recent acquisition of partner City Developments' (CDL) stake in South Beach. CDL on June 4 agreed to sell its 50.1 per cent stake in South Beach to IOI Properties for about $834.2 million in a deal valuing the complex at about $2.75 billion. It first bought the site for nearly $1.69 billion in 2007 in partnership with a unit of state-owned Dubai World Corp and El-Ad Group. The two partners later exited the project and IOI Properties took a stake in 2011. The acquisition, expected to be complete in the third quarter, will give IOI Properties full ownership of South Beach, which comprises South Beach Tower, South Beach Avenue and the JW Marriott Hotel Singapore South Beach. It is expected to be included in IOI Properties' Singapore Reit, together with IOI Central Boulevard. The flagship office property opened in 2024 in the Marina Bay area, eight years after IOI Properties put up a $2.57 billion bid for the site in a November 2016 government land sale tender. The Reit, targeted to list in 2027, is expected to help IOI Properties lighten its debt load as it expands its presence in the Singapore Central Business District, Mr Tan noted in his report. Besides South Beach and IOI Central Boulevard, IOI Properties is also the developer of Marina View, after acquiring the site for $1.5 billion in September 2021. It is now building a new mixed-use development on the site that will house a W Singapore luxury hotel as well as new branded residences. In late 2024, Mr Lee in his personal capacity also acquired Shenton House at Shenton Way for $538 million in a collective sale transaction. He told the media that the intention is to redevelop Shenton House into a mixed-use development with premier office space and luxury branded serviced residences. Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
09-06-2025
- Business
- Yahoo
Top Stock Market Highlights of the Week: City Developments Limited, GlobalFoundries and Mapletree Investments
Welcome to this week's edition of top stock market highlights. City Developments Limited, or CDL, and IOI Properties Group Berhad (KLSE: 5249) announced a share sale agreement for their joint venture South Beach mixed-use development. Under this agreement, IOI will acquire CDL's 50.1% stake in South Beach based on an agreed property value of S$2.75 billion. This value is a 3% premium over South Beach's latest valuation of S$2.67 billion as of 31 December 2024. Based on CDL's share, the sales consideration amounts to S$834.2 million. Both CDL and IOI have been joint venture partners in South Beach since 2011. The property comprises Grade A office space, a 634-room hotel, restaurants, cafes, and South Beach Residences, which consist of 190 luxury apartments and penthouses. CDL expects that the disposal will result in a gain of approximately S$465 million when the transaction is completed by the third quarter of this year. The blue-chip property group believes that this divestment represents a strategic opportunity to unlock value from South Beach and will provide it with enhanced financial flexibility to redeploy the proceeds. The sale also allows CDL to crystallise gains in the property, and proceeds will be used to reduce borrowings to improve its net gearing ratio. The cash can also be used for new acquisitions, investing in new development projects, or to optimise its capital management. Such divestments remain a key pillar of CDL's strategy and involve capital recycling activities that promise to unlock value for its shareholders. GlobalFoundries is the latest company to announce plans to spend money to bolster its US production. The Malta-based company manufactures essential chips for semiconductors and electronics makers that handle vital but mundane tasks such as controlling power and managing the flow of data inside devices. The artificial intelligence (AI) boom increased demand for a variety of chips, boosting the need for power-efficient chips used in data centres and communication equipment. GlobalFoundries, which is majority-owned by the government of Abu Dhabi, will commit US$13 billion to expand its existing plants in New York and Vermont. The company will also make a US$3 billion spending commitment to research into advanced packaging and other technologies in the US. However, CEO Tim Breen did not give a specific timeline on when this amount will be spent, citing the company's need to be flexible in managing the supply-demand balance. The investment is driven by higher demand from chip customers who are seeking more local production in an attempt to reduce reliance on suppliers that are concentrated in just one location. This diversification is a direct effect of Trump's tariff announcement as companies seek to rejig or re-adjust their supply chains to avoid paying higher taxes. Mapletree Investments Pte Ltd, or MIPL, reported a strong turnaround for its fiscal 2025 (FY2025) ending 31 March 2025. The investment firm announced a net profit of S$227.2 million, reversing the net loss of S$577.2 million in FY2024, largely due to revaluation losses. Recurring net profit, however, fell by close to 11% year on year to S$637.4 million. MIPL's FY2025 revenue stood at S$2.2 billion, lower than the prior year's S$2.8 billion, because of the deconsolidation of Mapletree Logistics Trust (SGX: M44U). Despite the lower core net profit, the investment company's assets under management (AUM) grew from S$77.5 billion to end FY2025 at S$80.3 billion. The increase was due to a larger number of acquisitions and development projects. The company acquired Derby DC1 and Verda Park in the UK, marking its first foray into the country. MIPL also purchased a portfolio of 10 logistics assets in Spain. Meanwhile, the firm is also marketing its Mapletree Emerging Growth Asia Logistics Development Fund, which focuses on Malaysia, India, and Vietnam. This fund, which is targeted to close this year, will comprise development assets with AUM of up to US$1.8 billion. MIPL is also the fourth-largest student housing owner in the UK, rising from seventh place last year. The group owns 30,000 student beds in the UK and the US. Another area of growth is data centres, with MIPL set to complete the construction of its first data centre development in Hong Kong in the second half of this year. It is also exploring acquisition opportunities in locations such as London, Milan, Madrid, Japan, and South Korea. As it builds up its data centre portfolio, there is a chance that these assets could be injected into Mapletree Industrial Trust (SGX: ME8U), another REIT that MIPL sponsors. We've found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want consistency in an uncertain world, start here. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Mapletree Industrial Trust. The post Top Stock Market Highlights of the Week: City Developments Limited, GlobalFoundries and Mapletree Investments appeared first on The Smart Investor.
