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Business Times
4 hours ago
- Business
- Business Times
S$15.8 million deal at Leedon Residence tops Q2 resale gains with seller earning S$3.3 million profit
[SINGAPORE] A 8,051-square foot (sq ft) unit at Leedon Residence was sold for S$15.8 million in June, earning the seller a tidy S$3.3 million in profit after eight years – making it the most profitable transaction by quantum in the second quarter of 2025. The first-floor unit at the freehold luxury condominium in the prime District 10 was bought for S$12.5 million, or S$1,553 per square foot (psf), back in February 2017, according to data crunched for The Business Times by real estate consultancy Cushman & Wakefield. On a psf basis, the unit went at SS$1,962 psf in June 2025. With a holding period of 8.4 years, the annualised profit works out to 2.8 per cent, with the seller's gross gain amounting to about 26 per cent. Notably, resales at Leedon Residence have recently proved to be highly profitable, coming out on top in the last two quarters. In Q1, two of the five most profitable transactions were from the development, with a 6,125 sq ft unit topping the list with the sale price of S$16 million, with a gross gain of S$4 million. Prior to that, in Q4 2024, another two Leedon Residence units were among the five biggest winners, with profits ranging from S$2.6 million to S$3 million. Cushman's Q2 data also showed that the five biggest money-making transactions by quantum in the recent quarter were either freehold properties or those with a 999-year leasehold title, located in the prime Core Central Region (CCR) or Rest of Central Region (RCR). Such units tend to command a premium, noted Cushman & Wakefield research head Wong Xian Yang. 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 In terms of percentage gains, executive condominium (EC) transactions proved yet again to be the most profitable in Q2, continuing a trend that emerged in Q1 2023. Of the top five winners, four were units at the Hundred Palms Residences EC along Yio Chu Kang Road. These apartments were held for an average of just under eight years before being sold for an 'attractively high profit' of 130 to 139 per cent, said Wong. He pointed out that 74 units have been sold since the development reached its five-year minimum occupation period in December 2024, with the majority seeing capital gains of more than 100 per cent. The most profitable EC transaction in Q2 was for a 2,121 sq ft unit at the 99-year leasehold The Tampines Trilliant. It was sold for S$2.9 million (S$1,362 psf) in June, up 143 per cent from the seller's original price of S$1.2 million (S$561 psf) in January 2012. Given a holding period of 13.4 years, this works out to an annualised profit of 6.8 per cent and the seller netting S$1.7 million in profit. Excluding ECs, the top five resale gainers by percentage were found in the city fringe and suburbs, with gross gains ranging from 92 to 119 per cent. Topping the list was a 1,098 sq ft unit at 284 Joo Chiat Road in District 15. The freehold unit was sold for S$1.9 million (S$1,717 psf) in May, more than double its original price of S$860,000 (S$783 psf) in February 2017. This works out to an annualised profit of 10 per cent over a holding period of 8.2 years. Biggest losses Cushman & Wakefield's data also tracks the biggest loss-making transactions on a quarterly basis. The deal that spilled the most red ink in Q2, in terms of both quantum and percentage, was a 2,056 sq ft unit at the 99-year leasehold Marina Bay Suites in District 1. It changed hands for S$4.1 million (S$1,985 psf) in June, about a third lower than its original price of S$6.1 million (S$2,985 psf) in December 2012. Based on a holding period of 12.4 years, this translates to annualised losses of 3.2 per cent. All the biggest losers in the quarter were located in the prime CCR and purchased during varying periods of the market cycle, Wong added. For its study, Cushman & Wakefield examined caveats for non-landed private homes that were transacted in Q2 2025 with a prior purchase history between January 2012 and June 2025. The analysis excluded transaction costs and taxes, such as buyer's stamp duty and seller's stamp duty. Overall, prime CCR properties accounted for 62 per cent of loss-making deals in Q2 of this year, caveat data of landed and non-landed private homes showed. The RCR accounted for 30 per cent of such deals; and the Outside Central Region, 9 per cent. While the CCR saw a larger share of loss-making deals, Wong noted that the majority of resale transactions in the region – at 79 per cent – were still profitable. On the other hand, the proportion of loss-making deals for landed and non-landed homes inched up to 3.3 per cent in Q2, from 2.7 per cent in the previous quarter. Still, the figure remains relatively low, hovering at this level over the past two years, after declining from its peak of 21.8 per cent in Q2 2020. Wong attributed the low levels of loss-making deals to homeowners' strong holding power as well as resilient upgrading demand for private homes amid still-low unemployment rates and strong household balance sheets. Government flash estimates indicated that growth in public housing resale prices had slowed to 0.9 per cent quarter on quarter in Q2, after prices rose 1.6 per cent in Q1, following their 9.6 per cent gain for the year of 2024. Given the growing resale prices, this may enable more Housing and Development Board flat owners to channel the proceeds of a sale to upgrade to a private home. Wong reckons that private residential prices are likely to rise around 2 to 3 per cent for the whole of 2025, easing slightly from the 3.9 per cent price growth in 2024. 'Barring new cooling measures and unforeseen economic shocks, the overall levels of loss-making deals are expected to remain low,' he added.
Business Times
15 hours ago
- Business
- Business Times
South-east Asia's IPO market shows signs of revival after subdued H1
[SINGAPORE] Initial public offering (IPO) activity across South-east Asia remained subdued in the first half of 2025 amid ongoing geopolitical and macroeconomic uncertainty, but market observers say signs of recovery are emerging for H2. The number of IPOs on major South-east Asian exchanges – in Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam – declined compared to the same period last year. Based on a recent Deloitte report, 53 listings were recorded in H1 2025, down from 64 in H1 2024. Ben Charoenwong, associate professor of finance at Insead, told The Business Times that the slowdown was driven not only by a reduced appetite to list but also by a widening valuation gap, fuelled by tariff uncertainty and global trade tensions. He described South-east Asia's IPO activity in H1 2025 as 'a classic supply-demand mismatch story' – where companies that proceeded with listings often accepted significantly smaller capital raises and longer timelines than initially planned. Prof Charoenwong said: 'Companies needed capital, but investors simply weren't willing to pay the prices that issuers expected. Yet, the private market has also dried up.' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Still, signs of recovery are becoming evident. Stephen Bates, partner and head of deal advisory at KPMG in Singapore, noted that while large IPOs remain rare, smaller sector-focused listings – particularly in technology, fintech and renewable energy – are gaining momentum. He added that this rebound is supported by easing macroeconomic conditions and sector-specific growth drivers, such as the rapid expansion of tech and artificial intelligence (AI)-driven businesses, increased demand for renewables and infrastructure, and growing activity in consumer and healthcare sectors. Tay Hwee Ling, transactions accounting support leader at Deloitte South-east Asia, said renewed investor confidence is also reflected in the uptick of IPO activity in the consumer and real estate sectors, alongside a gradual reopening of capital markets for larger issuers. She pointed to a notable increase in sizeable mainboard IPO prospectuses lodged on South-east Asian bourses in June 2025 as an encouraging indicator. 'This signals positive market sentiments, and positions the region for a more vibrant second-half performance.' Bates also observed that the region's regulatory reforms and government initiatives – including improved market transparency, streamlined listing processes, International Financial Reporting Standards adoption and tax incentives – have bolstered sentiment and helped attract new listings. 'Companies increasingly favour local exchanges over international ones due to regulatory support and growing domestic investor interest,' he said. He added that strong foreign direct investment inflows into South-east Asia's digital and green sectors, amid supportive policies for IPOs in these areas, have further benefited the region. 'Cautious optimism' This year, global markets have become notably more upbeat. 'Investor sentiment has shifted from caution in 2024 to cautious optimism in the first half of 2025,' said Bates. Jimmy Seet, capital markets partner at PwC Singapore, observed that while macroeconomic fundamentals such as inflation and growth are showing signs of improvement, heightened geopolitical tensions continue to temper market enthusiasm. 'In this environment, investors are increasingly selective, gravitating towards high-quality issuers with proven profitability and operating in resilient sectors,' he added. Prof Charoenwong highlighted that investor caution intensified, following US President Donald Trump's 'Liberation Day' tariffs on Apr 2. He said: 'When US tariffs hit 145 per cent in April and regional indices dropped 10 per cent, we saw a complete freezing of IPO windows. And despite the US market recovering from that shock, the increased uncertainty also means that CFOs (chief financial officers) are holding off more, part of the option value of waiting to proceed with projects in the future.' In contrast, Bates said that geopolitical tensions have actually boosted IPO activity, as investors increase exposure to the region amid global uncertainties. Malaysia leads Amid global market jitters, Malaysia's stock exchange outshone its regional peers with a surge in IPO activity. According to the Deloitte report, the number of listings in Malaysia increased about 48 per cent year on year to 32, with proceeds raised increasing by some 109 per cent to US$940 million. This was accompanied by an uptick in total IPO market capitalisation by about 165 per cent to US$4.04 billion, accounting for over two-thirds of total proceeds raised across the South-east Asian region. Market watchers attributed this strong performance to regulatory reforms, including a faster IPO approval process. Prof Charoenwong noted that Bursa Malaysia's new framework, which cuts approval timelines from six months to three months, enables companies to respond more swiftly to market conditions. The Leap Market Transfer Framework has further added agility, allowing firms to pivot across market segments without being stalled by lengthy procedures. Seet also pointed to stabilising macroeconomic indicators, such as improved gross domestic product growth and moderating inflation, as additional drivers of market liquidity. These conditions made it easier for Malaysia to respond effectively to shifting global market conditions. 'When markets became volatile in March, Malaysian issuers could delay or accelerate based on conditions, while companies stuck in other jurisdictions' slower systems missed their windows entirely,' said Prof Charoenwong. He added that other government incentives further supported this agility. For the opposite reason, another standout IPO market for Prof Charoenwong was Thailand. 'Instead of high-conviction government policies aimed at supporting a vibrant stock market, Thailand was hit with both an earthquake and the tariffs, amid an already slowing economy and further political turmoil,' he said. On the Singapore Exchange (SGX), the IPO market has shown signs of renewed momentum. Seet attributed this to recent reforms in the listing framework and supportive initiatives by the Monetary Authority of Singapore, which have sparked increased interest in listing on the bourse. 'Although only one IPO was completed in H1 2025, the outlook for H2 is promising, with several offerings already announced,' he said. The IPO of NTT DC Reit, for example, marks a notable milestone, given it is the first real estate investment trust listing on the SGX in nearly four years. Looking ahead IPOs are expected to perform better across South-east Asia in H2, supported by strong growth and key reforms, though risks persist. 'Ongoing regulatory reforms across the region are expected to sustain interest in new listings,' said Seet, adding that escalating trade tensions could pose headwinds to broader IPO activity. Similarly, Bates noted that potential issuers will need to manage challenges arising from the uncertain geopolitical environment. 'New tariffs, the ongoing US-China trade decoupling and supply chain disruptions create IPO delays and valuation challenges.' He explained that regional currency swings and shocks like the April 2025 sell-off make it harder to time listings and attract foreign investors. Varying regulations across Asean, global tax reforms and stricter listing standards also increase compliance burdens and preparation time. Additionally, Bates sees the financial and operational demands of preparing for an IPO – including legal, accounting and management time – posing significant challenges, particularly for smaller firms in less developed markets. Against this backdrop, Prof Charoenwong said companies that can tap into the AI-driven momentum in the US and Chinese markets stand to benefit, especially if positioned as diversification plays away from dominant incumbents. In a related trend, Seet noted that the continued underperformance of and waning investor interest in China's A-shares market may prompt more Chinese companies to pursue offshore listings. He believes SGX is well-positioned to capture this interest, given its reputation as an international capital-raising hub and a strategic gateway for Chinese firms seeking access to South-east Asian investors.
Business Times
2 days ago
- Business
- Business Times
Making property agents do better by consumers
Singapore has over 36,000 property agents. That's a lot of name cards. But are they all really adding value or just inflating costs? In this episode of PropertyBT, a podcast of BT Correspondents from The Business Times, senior correspondent Leslie Yee sits down with Professor Sing Tien Foo, provost chair at NUS Business School, to dig into the sharp edges of Singapore's real estate agency scene. From eyebrow-raising commissions to the rise of a few market giants, this episode pulls no punches. What exactly are you paying for when you engage an agent and should more be done to keep the industry honest? Why listen? Because buying a home shouldn't feel like playing poker blind Professor Sing breaks down what really happens behind the sales pitch and why the incentives in the current system don't always work in your favour. Because new launch commissions are quietly off the charts 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 In a hot market, some agents barely need to break a sweat to close a deal. So why are fees climbing to 5% and beyond? Because five firms dominate nearly 90 per cent of the market That's not competition. So is it consolidation? And it raises real questions about pricing power, choice, and whether the little guys stand a chance. Because too many agents don't actually transact If you're wondering why productivity's an issue, consider this: nearly half of all licensed agents don't close a single deal a year. So why are they still in the game? And because HDB resale is big business Should the government step in and play matchmaker to cut out the middleman? Professor Sing says maybe. At least for those who want a DIY option with fewer headaches and fewer fees. Listen now for a clear-eyed look at the people and policies shaping your biggest financial decision—buying your home. PropertyBT is a podcast of BT Correspondents. Look out for the next episode featuring senior correspondent Ben Paul. And if you have any thoughts or questions, feel free to reach out to us at btpodcasts@ --- Written and hosted by: Leslie Yee (lyee@ With Prof Sing Tien Foo, provost's chair professor, Department of Real Estate, NUS Business School Edited by: Emily Liu & Claressa Monteiro Produced by: Leslie Yee, Emily Liu & Chai Pei Chieh A podcast by BT Podcasts, The Business Times, SPH Media --- Follow BT Correspondents: Channel: Amazon: Apple Podcasts: Spotify: YouTube Music: Website: Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice. --- Discover more BT podcast series: BT Money Hacks: BT Podcasts: BT Market Focus: BT Branded Podcasts: BT Lens On:
Business Times
2 days ago
- Business
- Business Times
Bugatti, bodyguards and a Greek alias: Journalists claim Malaysian fugitive Jho Low is living large in Shanghai
[KUALA LUMPUR] In what could be the strongest lead yet in the hunt for fugitive Jho Low, journalist and Billion Dollar Whale co-author Tom Wright said he has passed fresh intelligence to the Malaysian authorities, alleging that the mastermind behind one of the world's biggest money laundering scandals could now be holed up in a gated enclave of Tudor-style villas in Shanghai, living under a Greek alias and travelling on a forged Australian passport. Wright told The Business Times he recently messaged the Malaysian authorities, including Prime Minister Anwar Ibrahim, via X (formerly Twitter), to share the newly uncovered details on the whereabouts of Low, one of the world's most wanted men accused of embezzling billions of dollars from Malaysia's state-owned fund 1Malaysia Development Berhad (1MDB). 'We haven't really located him yet. But the search is very much alive,' Wright said in a phone interview with BT on Monday (Jul 21). 'But we hope to continue to receive more information. All the information we receive is verified to high journalistic standards.' In a livestream by Project Brazen titled 'Finding Jho Low' released on Jul 18, Wright and co-author Bradley Hope reveal they have received tips and documents suggesting that the Penang-born Low, whose full name is Low Taek Jho, is living in Green Hills in Shanghai. The upscale enclave, often associated with corporate elites, is just a 15-minute drive from the Shanghai World Financial Centre, where, the duo say, Low maintains an office. 'What we have learned from a variety of sources, he is actually back in business in a big way,' said Wright in the programme. Low is also said to own a fleet of luxury cars, including a Bugatti, and is routinely accompanied by at least two security personnel, whom they believe to be government employees. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up They also claim to have uncovered that Low is allegedly operating under the alias 'Constantinos Achilles Veis' and using a forged Australian passport to mask his identity. Jho Low is wanted in both Malaysia and the US for allegedly embezzling some US$4.5 billion from the fund. The pair hope that their findings will reignite global interest in Low's case. They have turned to unconventional methods, including launching a YouTube channel, a satirical website and even a meme coin to incentivise whistle-blowers. Their cryptocurrency, $JHOLOW, serves as a reward mechanism for individuals who provide verifiable information about Low's whereabouts or evidence related to the 1MDB scandal. Wright said: 'We're using meme coins as an incentive to encourage people to share more information, helping us uncover the truth. We see this as a tool for investigative journalism, and it's effective. We have received a significant amount of information, which is helping us corroborate and verify leads.' Tips submitted through the pair's YouTube channel have included what appears to be a recent passport photo of Low under the alias, and claims that he has opened an office in Shanghai. Wright said they are now verifying each lead. Low is wanted in both Malaysia and the US for allegedly embezzling some US$4.5 billion from 1MDB; an Interpol Red Notice has been in effect since 2018. Despite repeated efforts by Malaysian enforcement agencies to track him down, his whereabouts have remained unknown. Since taking office, Anwar has said that locating Low is a priority. As recently as in 2024, then-Inspector General of Police Razarudin Husain said there were still no concrete leads. On Jul 19, Anwar told reporters that Malaysia had not received any information regarding the claims of Low's presence in China. 'I have no information; we have yet to receive anything. I have read (the media reports), let me check. I need to verify with the Home Minister,' he was quoted by Bernama as having said. Wright and Hope, both former Wall Street Journal reporters, played key roles in helping to shed light on the 1MDB scandal. The mammoth fraud ultimately contributed to the downfall of Malaysia's long-ruling Barisan Nasional government and former prime minister Najib Razak. After the 2018 publication of Billion Dollar Whale, their book that exposed one of history's most notorious fraud cases, Wright and Hope co-founded Project Brazen in 2021. This platform focuses on producing investigative content with a global scope, rather than limiting it to a single country. They also aim to monetise their investigative work by adapting their findings into documentaries, television shows, and films. Najib's 1MDB trial nears end, Jho Low still elusive Former Malaysian Prime Minister Najib Razak is currently standing trial for 25 charges of money laundering and abuse of power involving RM2.3 billion from 1MDB. Former Malaysian Prime Minister Najib Razak established 1MDB in 2009, but was later accused of channelling over RM2.6 billion from the fund into his personal accounts while overseeing 1MDB as head of its advisory board. Najib lost office in 2018 amid the scandal, and was convicted in 2020 for misappropriating RM42 million from SRC International, a 1MDB subsidiary, leading to a six-year prison sentence after a royal pardon. He is now standing trial for 25 charges of money laundering and abuse of power involving RM2.3 billion from 1MDB, with closing arguments set for end-October. Jho Low is considered a crucial witness in the 1MDB trial because of his alleged central role in orchestrating fund flows and operations. Key witnesses and investigators have testified that 1MDB officials often treated his instructions as coming directly from Najib. They have also said his actions are closely linked to the billions misappropriated from the fund. His testimony is therefore critical in terms of offering crucial insights into Najib's alleged involvement and the broader mechanics of the 1MDB scandal.
Business Times
2 days ago
- Business
- Business Times
Ong Beng Seng's pre-trial conference rescheduled to Jul 28
[SINGAPORE] Property tycoon Ong Beng Seng, who was expected to appear in court on Wednesday (Jul 23) for a case involving former transport minister S Iswaran had his court hearing rescheduled to next week. Checks by The Business Times showed that a request to reschedule the pre-trial conference to Jul 28 was approved by the court. Court hearings can be rescheduled for various reasons including scheduling conflicts or more time required by parties to submit or compile documents. BT has contacted the State Courts for more details. Previously, an Attorney-General's Chambers spokesperson said Ong's further mention for a guilty plea 'will be refixed for a later date'. This was after Ong, who was initially expected to plead guilty on Jul 3, had his court hearing adjourned. Ong, former managing director of Hotel Properties Ltd, is widely known for bringing the Formula 1 night race to Singapore in 2008. He owns the rights to the Singapore Grand Prix (GP). 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 He faces one charge of abetting offences under Section 165 of the Penal Code – which forbids public servants from accepting gifts from people involved with them in an official capacity – and one charge of abetting the obstruction of justice. The first charge, for abetting an offence under Section 165, relates to flights and a hotel stay. Ong allegedly offered Iswaran a trip to Doha in December 2022, and arranged for his private jet to fly him there. The flight was worth US$7,700. The second charge was for allegedly instructing Singapore GP director Mok Chee Liang, in May 2023, to bill Iswaran for the business-class ticket from Doha to Singapore – an action that would have obstructed the course of justice. Those found guilty of offences under Section 165 can be jailed for up to two years, fined, or both. Abetting an offence would result in the same punishment, if the offence is committed as a consequence of the abetment. The maximum penalty for obstructing the course of justice is jail time of up to seven years, a fine, or both.
