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Business Times
14 hours ago
- Business
- Business Times
CDL places S$1,132 psf ppr top bid for plot next to Lakeside MRT station
[SINGAPORE] City Developments has placed the top bid for a 99-year leasehold site next to Lakeside MRT station in the Jurong West area. Its bid of S$608 million, which works out to about S$1,132 per square foot per plot ratio (psf ppr), was the highest of six bids received for the site at a state tender that closed on Tuesday (Jun 3). The plot, in Lakeside Drive, is zoned residential with commercial at first storey. It can be developed to a maximum gross floor area (GFA) of 537,065 sq ft. The plot can yield about 575 private homes. The commercial component is capped at 10,764 sq ft GFA, of which a minimum 7,535 sq ft has to be for supermarket use. The second-highest bid at the tender, from a partnership between Frasers Property and Mitsubishi Estate, came in at S$550.56 million (or S$1,025 psf ppr). Also bidding for the site was a tie-up between units of CapitaLand Development and Sing Holdings, which offered S$529 million or S$985 psf ppr. 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 Wee Hur Development bid S$938 psf ppr. Intrepid Investments and TID Residential offered S$922 psf ppr. The lowest bid, from Sim Lian Land and Sim Lian Development, was S$909 psf ppr. The plot is a stone's throw from Jurong Lake Gardens; it is also near schools such as Rulang Primary School, Shuqun Primary School, Yuhua Secondary School and Yuan Ching Secondary School.
Business Times
18 hours ago
- Business
- Business Times
Hong Leong-led consortium secures S$692 million green loan from DBS, OCBC for Tengah's first private mixed-use project
[SINGAPORE] A consortium led by Hong Leong Holdings has secured a S$692 million green loan to finance the development of Tengah's first nature-centric private mixed-use residential project. DBS , the anchor lender and sole green advisor for the deal, will contribute S$484 million to the green loan, the bank said on Tuesday (Jun 3). OCBC will provide the remaining S$208 million. Structured in line with internationally recognised Green Loan Principles, the financing will support the consortium's investments in green infrastructure and ecological integration. The consortium includes joint venture partners GuocoLand and CSC Land Group. Chew Chong Lim, DBS' group head of real estate and shipping, aviation, logistics and transportation, institutional banking, noted that climate change is accelerating, and changing the way residents live, work and play. 'In this evolving landscape, integrating nature into urban development is of growing importance to build more sustainable and resilient townships where people can thrive and enjoy nature,' he said. The project is located on a 25,458.4-square-metre site at Tengah Garden Avenue. It can potentially yield around 860 homes with integrated retail amenities, and is slated for launch in 2026. 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 It will feature biodiversity-friendly design, native landscaping, and smart construction technologies to enhance ecological integration, reduce environmental impact and support sustainable urban living. Hong Leong Holdings' general manager for projects, Loke Kee Yeu, said the group aims to anchor an eco-conscious private housing community in Tengah while embedding responsible green practices in line with the shift towards a low-carbon economy. The project aligns with national plans to develop Tengah – Singapore's first new Housing Board town since Punggol more than 20 years ago – as an eco-friendly, car-lite 'forest' town When fully developed, Tengah is expected to offer about 42,000 homes set within a 100 metre-wide and five kilometre-long forest corridor.
Business Times
2 days ago
- Business
- Business Times
Trump's tariffs, ‘big beautiful Bill' may do more for the Singapore market than the MAS review group
[SINGAPORE] When news broke early last Thursday (May 29) morning that a US federal court had struck down most of President Donald Trump's sweeping tariffs, I was almost done selling a portfolio of US stocks that I had held since the global financial crisis. With a tinge of seller's remorse, I watched markets in Asia react positively and waited for what I assumed would be a strong rally in the S&P 500 when the US market opened. The rally never really came. The S&P 500 closed on Thursday at 5,912.17, just 0.4 per cent higher than the previous day's close of 5,888.55. On Friday, the benchmark US stock index closed less than 0.01 per cent lower at 5,911.69. One possible reason for the muted market reaction is that many investors were already expecting that Trump would somehow suspend the tariffs as soon as they begin causing significant damage to the US economy and corporate sector. Indeed, Trump has repeatedly postponed or pulled back tariffs he has announced since his inauguration, causing the market to quickly rebound after big sell-offs. Market watchers have recently begun referring to this as the 'Taco trade', where Taco means 'Trump always chickens out'. One could also argue that the ruling by the US court that most of Trump's tariffs are illegal, rather than being positive for the corporate sector and investors, actually creates more uncertainty for them. 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 The Trump administration has said it will fight the ruling, and indicated that it may ultimately have to take the matter to the US Supreme Court. In the meantime, a federal appeals court has allowed Trump's tariffs to remain in place. This puts America's trading partners in a tricky situation. Should they quickly offer concessions to get the US to lower its 'reciprocal' tariffs? Or should they slow-walk the negotiations in the hope that the courts eventually force a full rollback of the tariffs? For companies, this uncertainty could complicate long-term decision making. Should companies exporting to the US market take immediate steps to cope with the tariffs, perhaps by downsizing or relocating their business operations? Should US companies turn to alternative, but less efficient, global supply chains? Or should they all just wait for their respective governments to sort everything out? The way I see it, protracted uncertainty surrounding Trump's tariffs may end up causing just as much harm to companies than the tariffs themselves, by paralysing spending and investing decisions. Taco trade crowded While I firmly believe in long-term investing, unloading most of the US stocks I owned over the past couple of weeks was a no-brainer. In the first place, the S&P 500 had rebounded strongly from its post-'Liberation Day' lows, thanks in large part to Trump pausing his tariffs only hours after they had gone into effect, plainly demonstrating that he did not have the stomach for the economic and financial market fallout that would have followed. The benchmark US stock index is now more than 4.2 per cent above its Apr 2 close, and only 3.8 per cent below its 52-week high of 6,147.43. There could well be more volatility ahead as Trump continues his tariff antics. In the past week alone, he has walked back his threat to slap a 50 per cent tariff on the European Union; proposed to double tariffs on steel and aluminium to 50 per cent; and grumbled that China is violating its trade truce with the US. Given the extent of S&P 500's recovery, however, the notion that Trump's tariffs will ultimately be watered down may not drive the benchmark index much higher. The Taco acronym might only just have gone viral, but the Taco trade is already looking very crowded. Another factor that could cap further gains in the S&P 500 is growing concern about the rising level of US government debt. Trump is pushing a tax and spending Bill through the US Congress that will add more than US$3 trillion to the federal government's debt levels over 10 years. This could exacerbate upward pressure on US Treasury bond yields, especially after Moody's cut its credit rating on the US last month, from 'Aaa' to 'Aa1'. Then, there is the risk of the Trump administration hitting global investors with higher taxes on their US assets – either to gain leverage in trade negotiations or to simply reduce its debt costs. Over the past week, some market watchers have been pointing out that Trump's 'big, beautiful Bill' includes a small, ugly clause that would allow the US government to raise tax rates on interest and dividends earned by investors from countries with 'discriminatory' tax policies. Penalising foreign investors in this manner makes about as much sense as threatening one's trading partners with punitive tariffs, of course. But it is consistent with the 'America first' philosophy of the Trump administration – with voters at home baying for tax cuts as well as wider social safety nets, surely it is time for foreign investors to take a haircut. A more vibrant Asia? Is there an alternative to the US market for nervous investors? This column has previously said that dysfunction in the US is encouraging the flow of global capital to Europe and Asia. My instinct is that sustained increased investor demand in these markets will gradually fuel a virtuous cycle of capital raising and stronger growth. This trend could dovetail nicely with the efforts of the equities market review group formed by the Monetary Authority of Singapore (MAS). While there has been no let-up in the pace of Singapore-listed companies going private, the overall tone of the market has been turning increasingly positive. The Straits Times Index (STI) is up 2.8 per cent so far this year. Leading it higher are companies reporting solid financial numbers and taking steps to deliver shareholder value – including ST Engineering (up 67.8 per cent), Singtel (up 23.7 per cent), Sembcorp Industries (up 19.9 per cent), DFI Retail (up 19.5 per cent), and Hongkong Land (up 16.2 per cent). Even among counters that have lagged the STI this year, positive news has not gone unnoticed. Notably, Sats rose 3.7 per cent last week after reporting strong results for its financial year to March 2025. The STI climbed 0.3 per cent during the week. CapitaLand Ascendas Reit ended last week up 2.3 per cent, following a S$500 million placement that was 4.1 times subscribed, to fund the acquisition of a data centre in Tai Seng and a building in Science Park. As Trump's tariffs and the 'big, beautiful Bill' continue to frighten investors out of US financial assets, he might end up doing more for the Singapore market than the MAS review group.
Business Times
3 days ago
- Business
- Business Times
New home prices in China rise on policy hope, private survey shows
[BEIJING] The average price of new homes across 100 cities in China climbed 0.30 per cent in May, suggesting supportive policies could be yielding some effect, according to a private survey released by property researcher China Index Academy on Sunday (Jun 1). The increase was almost double the last month's rate of increase at 0.14 per cent. New home prices have been under pressure even as Chinese policymakers plough in efforts since last year to stabilise the sector with supportive measures, including most recently lowering lending rates to spur real estate purchases. 'Overall, the current macro policy support for the property market has been increasing,' the real estate research institute said in a report posted on its WeChat account. New home prices in first- and second-tier cities were surveyed rising from a month ago, with Shanghai topping the list of 100 cities. On a year-on-year basis, the average prices for new homes rose faster at 2.56 per cent, versus 2.50 per cent in April. 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 China's statistics bureau will release the official data for home prices on June 16. The market continued to see a persistently high volume of listings for second-hand residential units, keeping prices lower in that segment, it said. Prices of second-hand properties fell 0.71 per cent from a month ago, and 7.24 per cent year-on-year. That compared with April's declines of 0.69 per cent and 7.23 per cent, respectively. The property market, accounting for roughly a quarter of economic activity at its peak, is where some 70 per cent of China's household wealth is invested. Any signs of relief could help cushion China's economy from the stresses of a yet-unresolved trade war with the United States. REUTERS
Business Times
6 days ago
- Business
- Business Times
HDB launches Sembawang executive condo site, Hougang mixed-use plot for tender; to yield over 1,000 homes
[SINGAPORE] The government released two plots for housing in Sembawang and Hougang for tender on Thursday (May 29), to yield a total of some 1,100 new homes. The Sembawang Road site for an executive condominium (EC) development spans 18,968 sq m (sq m), with a maximum gross floor area of 26,556 sq m for 265 homes. In Hougang Central, a 46,898 sq m mixed-use parcel with maximum gross floor area of 117,245 sq m is expected to provide 835 condo units and 40,000 sq m of commercial space. Market watchers expect strong demand for the new EC project, given the lack of supply of EC units in the north and high take-up rate of new launches. Mark Yip, chief executive of Huttons Asia, noted that recent EC project launches have seen 'very strong demand', pointing to Aurelle of Tampines which sold out in a month. It sold 682 of its 760 units on the first day of its launch in March, at an average selling price of S$1,766 per square foot. 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 Yip reckons the Sembawang site will attract up to eight bidders and a top bid between S$600 and S$700 per square foot per plot ratio (psf ppr). Demand for the project on the Sembawang EC site will likely come from Housing and Development Board (HDB) upgraders in Yishun, Sembawang and Woodlands, which have seen a shortage of EC developments in recent years, said ERA Singapore key executive officer Eugene Lim. He expects about 3,500 HDB flats in Yishun and Sembawang to fulfil their minimum occupancy period between 2026 and 2029. 'This should create a healthy supply of potential upgraders for the launch of the future project.' ECs have consistently been popular among upgraders due to more accessible pricing, even as its prices have climbed to new benchmarks. In 2024, new homes ranging from 900 to 1,000 square feet (sq ft) in the Outside Central Region (OCR) recorded a 42 per cent difference in median prices between ECs (S$1.48 million) and private condos (S$2.1 million). 'This gap highlights the value proposition of ECs, particularly for HDB upgraders who meet the income ceiling of S$16,000. Hence buyers, particularly HDB upgraders, see value in ECs,' said Lim. He noted that North Gaia, the most recent EC development in the north, sold out all of its units earlier this year. 'For the rest of the EC market, stock remains low, with only a few available units at Novo Place up for grabs,' he said. However, Lim expects developers' interest may be diluted, with other OCR sites also on the table. Two sites were offered earlier in Woodlands and Bukit Panjang. 'These two sites share similar attributes to the Sembawang EC site, being located in burgeoning estates in the OCR.' Moreover, the tender for the Sembawang site closes on Sep 11, the same date as another government land sale (GLS) tender closing for a large mixed-use site in Chencharu Close, also in the Yishun/Sembawang area. 'This batch closing could moderate developers' interest, as both are extremely attractive potential developments within a similar location in the north region,' said Lim. The Hougang Central site marks the first GLS site offered for bidding in this area since the sale of an Upper Serangoon Road site in 2014. It is Hougang's first new launch since 2019, said Marcus Chu, ERA Singapore's chief executive. Given the lack of new launches in Hougang for nearly five years, Chu expects the project to count on demand from HDB upgraders, as well as from residents living in nearby landed enclaves looking to rightsize. The site is directly above Hougang MRT station and will yield about 40,000 sq m of commercial space – nearly double Hougang Mall's gross floor area of around 21,000 sq m, said Chu. He added that the Urban Redevelopment Authority's master plan points to more housing in Hougang, with two nearby plots zoned for residential use, which can support future retail demand. Huttons' Yip also noted that the mixed-use development will be the first major mall to serve the Hougang estate, and such projects sell well on launch weekends. For instance, Parktown Residence in Tampines sold like hotcakes during its launch in February, with buyers snapping up more than 87 per cent of its 1,193 units. Both Yip and Chu expect joint ventures from developers to bid for this site, given its large gross floor area of more than one million sq ft. Yip reckons the top bid could come in at S$800 and S$900 psf ppr. The tender for the Hougang site closes on Dec 16. HDB said three facilities in Hougang will close in phases to make way for the development of the Hougang mixed-use site. They are the HDB Hougang Branch, which closes on Sep 1; the adjacent sheltered atrium, which closes end-September; and the surface car park at Hougang Avenue 10 that will close end-March 2026. A new round-the-clock e-Lobby will open from Sep 1, after the closure of HDB's Hougang branch. The e-Lobby is equipped with self-help machines, such as HDB e-service kiosks and an AXS machine for residents to complete transactions. The two parcels in Sembawang and Hougang, both 99-year-leasehold sites tendered by HDB, are on the confirmed list under the GLS programme for the first half of 2025.
