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Business Times
05-08-2025
- Business
- Business Times
Hong Leong grows with the nation
GROWING with the nation in the past 60 years, Hong Leong Group is a household name and a home-grown conglomerate with a sprawling global portfolio. Real estate, hospitality, finance and industrials are key sectors where it makes its mark. Amid fast-paced economic transformation, Hong Leong's diversified companies are investing in their Singaporean core, even as they compete on the world stage. 'Much like Singapore, Hong Leong Group stands as a testament to what vision, resilience, and innovation can achieve over time,' Hong Leong Group executive chairman Kwek Leng Beng tells The Business Times, pointing to a legacy and record 'shaped by performance, adaptability, and trust'. Pioneering success The Singapore River has undergone a massive evolution since independence, with shophouses and godowns making room for scores of modern skyscrapers. Crucially, 'the 1970s and 80s saw a frenzy of private sector building construction in the Golden Shoe area', National Library Board publication BiblioAsia has reported. One example that the article cites: Hong Leong Holdings' redevelopment of 28 shophouses in the Raffles Quay area into a new office tower. Today, Hong Leong Building is a landmark in the central business district (CBD), and among the flagship projects in property developer Hong Leong Holdings' commercial stable, while its sister company City Developments Limited (CDL) counts nearby Republic Plaza – one of Singapore's tallest skyscrapers – as a jewel in the crown of its Grade A office portfolio. Listed on the Singapore Exchange, CDL – a pioneering Singapore developer established in 1963 – has grown alongside the nation, shaping the city's skyline with numerous residential, commercial, hotel and retail properties. CDL has been part of the Hong Leong Group since 1972, after the group became its controlling shareholder. Since then, the company has developed more than 53,000 homes and owns around 23 million square feet of gross floor area in residential for lease, commercial and hospitality assets globally. The 280-metre, 66-storey Republic Plaza, which was completed in 1996 and refurbished in 2019, has been honoured by architecture's prestigious FIABCI Prix d'Excellence, and has also racked up accolades for sustainability and eco-friendliness. Republic Plaza. Hong Leong Holdings' 80 Robinson Road and CDL's The Sail @ Marina Bay – launched in 2004 as Singapore's tallest residential project – are some other downtown gems. In fact, 80 Robinson Road is home to a co-working hub set up with the Monetary Authority of Singapore and Singapore Fintech Association to promote collaboration among fintech firms. These edifices are just some of the contributions to the skyline made over the decades by Hong Leong companies, including sister developers Hong Realty and TID Pte Ltd. Founded by the late Kwek Hong Png as a building materials trading company in 1941, the Hong Leong Group still counts the real estate industry as central to its corporate portfolio. Incorporated in 1963, urban solutions provider Hong Leong Asia grew in tandem with Singapore's public housing in the post-independence years. Today, Housing and Development Board (HDB) projects are the mainstay for Hong Leong Asia's pre-cast concrete business, which specialises in the design and manufacture of prefabricated building components. The business counts the 50-storey public housing landmark Pinnacle@Duxton as a signature build. Meanwhile, ready-mix concrete supplier Island Concrete has also been integral to several major public infrastructure works since its formation in 1970. These include Changi Airport Terminal 1 in the 1970s, the first Mass Rapid Transit line in the 1980s, the iconic Marina Bay Sands in 2010, and the Marina Coastal Expressway, which opened in 2013 and is Singapore's first highway to include an undersea road along its route. In fact, Hong Leong Group has provided not just the raw materials for nation building, through Hong Leong Asia, but also the capital needed to get local entrepreneurs off the ground. Hong Leong Finance – founded in 1961 and listed on the Singapore bourse in 1974 – is Singapore's largest finance company. Hong Leong Finance. It serves individuals and small- and medium-sized enterprises (SMEs) alike, offering deposits, savings, loans, and advisory services at its 28 branches and 12 SME Centres islandwide. SMEs make up a strategic segment of the clientele for the financial services firm, which is also the only finance company in Singapore with full sponsorship status for the Singapore Exchange's Catalist board. Representing the nation Beyond forging local partnerships, Hong Leong Group has also cast a wide net in international waters. Significant overseas investments include Hong Leong Asia's acquisition of Malaysia's cement producer Tasek Corporation Berhad in the 1970s. The company also entered powertrain solutions manufacturing and distribution in the 1990s with its 48.7 per cent stake in New York-listed China Yuchai International. This powertrain solutions business contributed almost S$3.6 billion in revenue in 2024, or more than four-fifths of Hong Leong Asia's top line. Similarly, Hong Leong Group's private developer arm, Hong Leong Holdings, entered the mainland Chinese market early, launching the Beijing Riviera luxury residential project in 1993. The developer is still active in China, where its joint ventures have built mixed-use developments in major hubs such as Chengdu and Chongqing. CDL's China arm has likewise built a strong portfolio across key Tier 1 and Tier 2 cities, including Shanghai, Suzhou, Chongqing and Shenzhen, since its setup in 2010. CDL has expanded its property development and asset management operations in major overseas markets, like Britain, Japan and Australia, and a sizeable living sector portfolio. Hong Leong Group's international reach also comes on the back of its vibrant hospitality arm, which has helped to fly the Singapore flag in global cities like New York and London. The group's strategic hotel expansion took off in the 1990s, when an earlier CDL hotel unit built on its Asian footprint to begin a string of acquisitions in the West. One watershed transaction was the purchase of the Plaza Hotel in New York for S$455 million. Those deals paved the way for the London listing of Millennium & Copthorne Hotels plc (M&C) in 1996 – which made M&C the first Singapore-controlled company to trade on the London Stock Exchange. 'The listing opened doors to opportunities and built investor confidence. It gave us access to global capital, enhanced governance standards, and strengthened our brand positioning in international markets,' Kwek muses. M&C was privatised into a wholly owned CDL subsidiary in 2019 and its role as a hotel operator and long-term asset owner is 'still selling' the Singapore brand, Kwek notes. Today, CDL operates a stable of global properties under its Millennium Hotels and Resorts (MHR) brand. Kwek has touted MHR's hotel ownership model as a deliberate decision to 'ensure control over the guest experience and protect long-term value'. MHR serves both business and leisure travellers with 145 properties in 80 locations – including London, New York, Paris, Dubai, Beijing, Tokyo, Auckland and, of course, Singapore. The youngest of the group's 12 brands is trendy M Social, which debuted in 2016 to woo a new generation of tech-savvy, design-conscious guests with its smart tech-enabled rooms. M Social Resort Penang. Some MHR hotels are owned by mainboard-listed CDL Hospitality Trusts (CDLHT), a stapled group which comprises the first hotel real estate investment trust on the Singapore Exchange and had about S$3.5 billion in assets under management as at end-March. CDLHT has more than 4,900 hotel rooms worldwide, with its portfolio anchored by strategic locations in gateway cities. A substantial portion of its portfolio value is concentrated in central Singapore, with the upcoming Moxy Singapore Clarke Quay slated to add 475 keys to CDLHT's presence in Singapore. The trust also marked its foray into the living asset class in 2021 and achieved two milestones in 2024 with the opening of its build-to-rent residential project, The Castings in Manchester, and the acquisition of a purpose-built student accommodation building, Benson Yard in Liverpool. The Castings in Manchester. The addition of these longer-stay assets is expected to enhance CDLHT's income resilience and reinforce the benefits of a diversified lodging portfolio. Charting new paths Having been part of the national backbone for six decades, Hong Leong Group continues to make its mark in Singapore and the world. In fact, the group is actively pursuing environmental sustainability goals across the board, with business units working to reduce greenhouse gas and carbon emissions by 2030. For example, CDL has been pioneering green buildings and sustainable development over the past 30 years and has gained global recognition for its leadership in sustainability and climate action. It has consistently been ranked among the Global 100 Most Sustainable Corporations in the World by media and research firm Corporate Knights since 2010 and continues to invest in green and innovative building methods. In Singapore, CDL is rejuvenating the skyline with new-generation mixed-use and integrated developments in the Singapore River precinct and CBD. The upcoming CanningHill Piers and CanningHill Square, at the former Liang Court; Newport Plaza, at the former Fuji Xerox Towers; and Union Square, where Central Mall and Central Square used to be, will all transform the cityscape and infuse their neighbourhoods with new energy when completed. Hong Leong Holdings has been moving to finance projects with green loans, starting with the nature-centric private mixed-use residential project in Tengah, while Hong Leong Asia is revolutionising its core industries with lower-carbon and circular economy solutions. MHR and CDLHT hotels have adopted digital practices to streamline the guest experience, and tapping technology also delivers eco-friendly operational efficiency for the business. For instance, MHR is the first hotel company to enter the Metaverse and install voice-enabled technology. It also utilises analytics to optimise energy consumption and resources. MHR and CDLHT have also introduced waste reduction programmes in their properties, including cutting single-use plastics and deploying food waste digestors where possible. On the industrial front, Hong Leong Asia has made significant investments in recent years to transform construction processes. Notably, it developed the HL-Sunway Prefab Hub, a state-of-the-art manufacturing facility that streamlines the production of precast building components. The company also established a fully automated batching plant at the Ready-Mixed Concrete Ecosystem at Jurong Port, enhancing operational efficiency and productivity. HL-Sunway Prefab Hub. Meanwhile, Hong Leong Finance's transformation and digitalisation efforts have enhanced customer experience, operational efficiency and business growth. Its digital platform for vehicle loans saw over 300 per cent increase in new electric vehicle (EV) loans to S$314 million in 2024 – up from S$73 million in the year before – as Singapore guns for EV adoption. The HLF Digital App also enables customers to manage a range of services including fund transfers and placing of fixed deposits. Across all these business divisions, Hong Leong Group continues to strive for excellence. 'In the face of global challenges, market shifts, and even a pandemic, we have remained steadfast,' Kwek tells BT. 'Our true strength lies not only in solid foundations, but in our ability to reinvent, adapt, and lead with purpose.' In the years to come, 'we remain firmly committed to shaping a smarter, greener, and more sustainable Singapore, and building a future worthy of our past', he adds.
Business Times
18-07-2025
- Business
- Business Times
CBD homes can be the dark horse that shines
When the 1,111 unit 99-year leasehold The Sail @ Marina Bay - the first major condo project in the Central Business District (CBD) - was launched for sale in 2004, demand was brisk. Fast forward to today, buyers appear to be fairly lukewarm to private homes in the CBD. Some units of developments with initial land leases of 99 years such as Marina Bay Suites, One Shenton and V on Shenton have been transacted recently at below S$2,000 per square foot (psf) - lower than that of prices fetched by some resale condo units further out from the city centre in Tiong Bahru and Queenstown. The tough Additional Buyer's Stamp Duty regime is hurting buying of multiple homes by Singapore citizens and permanent residents (PRs) as well as the purchase of any home by non-PR foreigners. The ABSD rates for buying a second or subsequent home are 20-30 per cent for a local and 30-35 per cent for a PR. A non-PR homebuyer pays 60 per cent ABSD. ABSD does not apply to a local buying a first home, while a PR purchasing a first home pays 5 per cent ABSD. Indeed, with a private housing market now dominated by Singaporeans buying their first homes, some new condo launches in the suburbs and city fringe have flourished. Key selling points for projects that have seen strong take-up include proximity to MRT stations, retail amenities and reputable schools. 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 Potential buyers might do well to pay greater attention to CBD homes. After all, the Urban Redevelopment Authority has in recent years been moving away from a downtown dominated by offices, to one which is more mixed use and lively after office hours. Today, a home dweller in the CBD can easily access public transport, shops, F&B outlets, hawker centres, parks, cultural amenities, conserved shophouses and so forth. W Residences Marina View Amid a flurry of new condo launches, might a project in the vicinity of Marina Bay - the centrepiece of Singapore's urban transformation - such as W Residences Marina View - Singapore be a dark horse that shines? The developer IOI Properties is part of Kuala Lumpur-listed IOI group, one of Malaysia's biggest conglomerates, and has been steadily growing its Singapore footprint. In the Marina Bay area, it also built IOI Central Boulevard Towers, a mixed-use development with two Grade-A office towers and a seven-storey retail podium. The 99-year leasehold luxury W branded residence project is now in the early phase of private previews, with 'special preview prices' from just over S$3,200 psf for a limited number of units. In perspective, two upcoming new condo launches in the River Valley area have prices that are not far off the above price. Prices for Wing Tai Holdings' River Green start from S$2,846 psf, while prices for Allgreen Properties' Promenade Peak could be around S$3,000 psf. The 683-unit W Residences Marina View, with easy access to the Shenton Way MRT station on the Thomson-East Coast Line, has 171 one-bedders, 310 two-bedders, 103 three-bedders, 32 four-bedders, 64 five-bedders, and three penthouses. Part of a 51-storey mixed-use development, the homes will be perched atop the new 360-room five-star W Singapore – Marina View hotel. CBD housing demand There are first-time local private homebuyers who buy mainly for investment, such as a person whose spouse owns their owner-occupied home and a young adult living with parents. For this profile of buyers, a one-bedder or two-bedder at W Residences Marina View could make sense. Rental demand for CBD homes is supported by easy access to Grade A CBD offices, which are the option of choice for many leading businesses across diverse sectors as well as the increasing liveability of the CBD. An added edge for a landlord of a unit at W Residences Marina View could come from the residences being operated by Marriott International. The project's residents will have access a high level of services for their lifestyle needs. In addition, smaller configuration condo homes in the CBD, especially in developments that are well crafted and have great common facilities, may attract owner-occupiers who are high-earning singles or couples without children. Meanwhile, some owner-occupiers might be drawn to living in large premium condo homes in the Marina Bay vicinity and other parts of the CBD. Think of wealthy PR households who may not be able to buy landed housing here and need not live close to sought-after local schools. Or older well-heeled local couples whose children have grown up and moved out from their home, who could be moving from say a landed home to a large format centrally-located condo unit with ample space for entertainment and hobbies. In short, a four-bedroom unit of about 2,250 square feet (sq ft) or a five-bedder of about 2,809 sq ft at W Residences Marina View might appeal to affluent homebuyers looking for a high quality abode to live in. Sure, CBD living is not everyone's cup of tea. And even as the CBD transforms into a more vibrant live, work and play destination, its undoubted strength is as a host of premier work spaces for leading businesses. Nonetheless, don't underestimate the appeal of homes in the CBD. The unique selling points of such homes include their easy access to luxury shopping at The Shoppes at Marina Bay Sands, top attractions like Gardens by the Bay and Marina Bay Sands, great recreational spaces like Marina Barrage as well as leading arts venues and museums. Moreover, a CBD that is quieter at nights and on weekends relative to the bustle of weekday mornings and afternoons could be a plus for residential dwellers who are largely at home during weekday nights and weekends. Ultimately, in a resilient and steady Singapore private housing market, betting on a dark horse in CBD homes may deliver relative outperformance in the long run.
AsiaOne
08-06-2025
- Business
- AsiaOne
The biggest misconceptions about buying property in Singapore's CCR in 2025, Money News
Singapore's Core Central Region (CCR) is as straightforward as HDB eligibility rules. Everyone thinks they have a good idea of how it works, until questions are asked and they look deeper. Then suddenly there are 50 exceptions to every rule, a dozen gaps in the online information, and a stunning realisation that you've been wrong all your life about something. This is pretty much how it works with CCR properties: on the surface, you think you know the region: it's that place with all the rich expats, tech moguls, and one old uncle who has holes in his singlet but owns a GCB in Tanglin. But with the Singapore property market pivoting more toward this mysterious region (and I assure you, the CCR is a mystery,) it's time to take a more nuanced look; and to realise that quite often, much of the "property knowledge" you've been told about the CCR is wrong, or grossly oversimplified: For those not in the know: What is the CCR? The CCR is the region that houses Singapore's most expensive real estate options, like The Sail, Marina One, Ardmore Park, and various other condos that are basically a property agent's retirement fund. Historically, this is an area favoured by high-net-worth individuals, foreign buyers, and investors, and it's not necessarily about money either. Investors may also buy "cultural capital" or clout, by owning prestige properties here. Projects here are usually freehold or 999-year leasehold. Districts include: District 1: Raffles Place, Marina Bay, Cecil District 2: Chinatown, Tanjong Pagar District 6: City Hall, Clarke Quay District 9: Orchard, Cairnhill, River Valley District 10: Tanglin, Holland, Bukit Timah District 11: Newton, Novena Sentosa: Not geographically central, but it's lumped into the CCR due to its high-end positioning. Why should we regular folks be paying attention to the CCR in 2025? I've linked the relevant article in the intro, but to quickly recap: around 22 launches remain for the year of 2025, and of these, around 14 will be in the CCR. If you missed out on the non-central launches like Parktown Residence, Emerald of Katong, ELTA, etc., then consider me the bearer of luxury news: your next new launch option is likely going to be in Singapore's high-end CCR. Even before this happened, back in 2023, I'd pointed out that Rest of Central Region (RCR) prices were narrowing with CCR prices. This was partly due to the 60 per cent Additional Buyers Stamp Duty (ABSD), which removed a good number of wealthy foreign buyers from the CCR market. Moving forward to today, the price gap between the CCR and RCR is at an all-time low of 4.5 per cent. Given that over half the upcoming new launches are going to be in the CCR, consider this early preparation of the sales pitch: we're going to hear, over and over again, that this is a "big opportunity" to own a CCR property; especially if you already have a Rest of Central Region (RCR) property to upgrade from. So here are the oversimplified beliefs to address about the CCR, before we're neck-deep in it this year: The CCR is the most prime region, you won't go wrong here CCR properties are all top luxury properties Freehold status makes CCR properties better The best amenities are in the CCR 1. The CCR is the most prime region, you won't go wrong here This has the same energy as "WeWork is so huge it can't fail at this point." The glamour and high quantum properties packed into the CCR do give the impression that everything there is infallible, but in reality, it's quite the opposite. I feel it's the cheaper Outside of Central Region (OCR) where it's often harder to make a mistake, as you're starting with lower initial costs. The CCR isn't just high quantum, it's possibly the most volatile of the three regions — and you need to be more careful when buying here, not less. The CCR isn't rock-solid and infallible: we saw this just last year. At year-end 2024, I pointed out that the CCR saw an 11.8 per cent price decline, as opposed to a 9.8 per cent increase in the OCR. And yes, this was due to the ABSD hike as mentioned above, but that demonstrates the point: Why didn't other regions see a big stumble from the ABSD hike? Because the OCR — and to a smaller extent the RCR — have their values tied to everyday Singaporean homeowners. The CCR is packed with investors, wealthy foreigners, and a more exotic demographic. Buyer and seller behaviours here are not as predictable as those of regular HDB upgraders. This also goes for rental: as of Q1 2025, the vacancy rate for completed private residential units in the CCR stood at 10.3 per cent, higher than the RCR's 6.6 per cent and the OCR's 4.7 per cent. For the first nine months of last year (2024), median rent for condos in the CCR declined by a chunky 3.5 per cent, unlike a small 1.4 per cent in the OCR, and a 0.4 per cent increase in the RCR. Why? Because when the wider economy is in turmoil, companies like to trim the number of pricey expats they hire, or shrink housing allowances. In the OCR, where expats or landlords are fewer in number, the effect is more muted. The RCR may even see a small boost, as expats move from the CCR into the city fringe as the next alternative. It's the CCR that's most subject to fluctuations in the wider economy. This doesn't mean the CCR isn't investment-worthy, but it does mean that you need to pick your properties with even greater care than elsewhere. So the opposite of the saying is true: a low-cost OCR property is usually where you can afford to make a mistake, but still recover. The CCR is much more punishing toward bad choices, and you absolutely can go wrong. 2. CCR properties are all top luxury properties For the newer properties in the CCR, sure. But for resale… Look, I say this with all respect, and I don't want to disparage any properties, but let's accept that age and time have somewhat changed the definition of "top luxury." How many of you have seen, say, The Claymore, Orchard Court, Lien Towers, or any one of the many older properties in the CCR? Even the ones near highly prestigious areas like Orchard Road? These projects can still be expensive because of their location, freehold status, and large floor plates. But if you were to compare facilities, there are 10-year-old condos in the OCR that make some of these "prime freehold" properties look like budget office buildings. This is a real problem that parts of the CCR — especially Districts 9 and 10 — will face over the coming years. At some point, buyers are going to look at the peeling walls of 1980s squash courts, then back at the price, and start wondering why Treasure at Tampines or some OCR mega-development won't be better. Simply put, "CCR = luxury" is a misconception. You might find mass-market, OCR projects today that are both cheaper and better for your lifestyle. 3. Freehold status makes CCR properties better Let's put it this way: no one on a pro-basketball team talks about their height much. Because when everyone else has that quality, it's far less special. In the same vein, freehold status can matter when it's rare in an area, such as one freehold condo amidst leasehold counterparts. But freehold is the norm in the CCR, and a freehold condo surrounded by others is little more than the baseline. So this shouldn't be a particularly big selling point, even on the brochures. 4. The best amenities are in the CCR A bit of personal opinion here: from the 1980s when I was growing up, through to around the mid-2000s, the CCR was truly the centre of Singapore. The malls here had brands you couldn't find in heartland malls, there were restaurants and eateries we'd travel all the way just to visit, and HMV was a big deal because we needed to fill half our room with physical CDs. This died around 2009, when Uniqlo opened its flagship store in Tampines instead of somewhere in Orchard. URA's aggressive decentralisation has created multiple hubs of amenities, and the CCR is no longer the centre of our universe. Ask around: most Singaporeans will tell you that whatever they can find in Orchard, they can find in their neighbourhood mall, be it NEX, Clementi Mall, JEM, etc. Now, there are parts of the CCR which are still arguably unique, like the Holland V identity node. But as Singapore decentralises further, we may one day reach a point where "superior amenities" are no longer a defining trait of many CCR neighbourhoods. It's worth thinking about, for long-term investors. So if you're looking at CCR properties in 2025, remember: prestige doesn't pay your mortgage, and clout doesn't cover vacancy. The only thing worse than overpaying for a "prime" unit is realising too late that you were buying into the idea more than an actual, viable asset. Again, this isn't to shut down the CCR as an investment prospect or a home; it's worked for many people. My intent is just to point out that, thanks to years of conditioning and sales pitches, we may have dangerously oversimplified a very complex region, going through some very big changes. [[nid:718515]] This article was first published in Stackedhomes .
