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Posted by on in New Launches

The new 2-room Flexi Scheme is unlikely to affect the chances of single applicants looking to get a new flat, reported The Straits Times, citing the Housing Board.

The 2-room Flexi combines and replaces the previous studio and 2-room flat schemes.

Of the combined supply, 40 percent in each Build-To-Order (BTO) project will be reserved for applicants aged 55 and above, announced Prime Minister Lee Hsien Loong during the recent National Day Rally.

However, it wasn’t clear at the time what it meant for non-elderly single applicants, who were previously offered half of all new 2-room flats within non-mature estates.

Responding to media queries, HDB explained that the remaining 60 percent and those not taken up by the elderly in non-mature estates would be split among families and non-elderly singles.

This implies that at least 30 percent of the 2-room Flexi supply in non-mature estates would be reserved for non-elderly singles. In fact, they may even get more since flats not taken up by families and the elderly will also be offered to them.

Moreover, elderly buyers within mature estates are likely to buy new flats within the same area, which means less competition for non-elderly singles who cannot afford new flats within mature estates.

“Based on past application trends, we thus do not expect significant impact on non-elderly singles’ chances of getting a 2-room Flexi flat,” said an HDB spokesman.

Non-elderly singles are even expected to get most of the flats since 2-room flats and studio apartments have been undersubscribed by families and elderly applicants.

The BTO exercise in November 2014, for instance, saw fewer family applicants for 2-room flats than available units – no more than 0.7 second-timer families for each unit and no more than 0.2 first-timer families.

While the HDB does not expect this trend to change, it will still monitor the take-up rate for such units by different groups and adjust the quota if necessary.

credits:propertyguru

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Prices of non-landed private homes in Singapore fell 3.2 percent in the second quarter of 2015 from the same period last year, according to the latest Knight Frank Global House Price Index.

The report tracked 56 countries and ranked them according to the annual percentage change in home prices. Singapore placed 49th on the list.

Since 2009, the government has introduced several rounds of property cooling measures to slow down the pace of sales and push prices down.

Like Singapore, Hong Kong also introduced measures to cool its red-hot property market, but mainstream prices have shot up 20.7 percent year-on-year, the highest globally.

“Increasing liquidity and the continual flow of wealthy mainland Chinese investors into Hong Kong’s residential sector meant the number of new homes sold in the first half of 2015 exceeded 8,700,” said Knight Frank.

Globally, the Index rose marginally by 0.1 percent in the year to June 2015, its weakest rate of growth since Q4 2011.

“Of the 56 housing markets tracked, 27 percent recorded an annual decline in prices, but back in 2011, 44 percent of housing markets fell into this bracket,” added the report.

credits: propertyguru

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Posted by on in New Launches

The government has spent around $7 million to transform a 400-metre stretch along Kallang River into a beautiful community space, according to a Channel NewsAsia report.

Among the new changes to the area, which is situated between Potong Pasir Avenue 1 and St Andrew’s Junior College, is the creation of an open plaza capable of accommodating about 750 people.

The authorities also installed new seats and four lookout decks along the riverside where the public can relax and relish the breath-taking scenery.

With the help of students from St Andrew’s Secondary School, rain gardens were also planted along the stretch in June, while swales were dug out and seeded with plants. Both features are intended to improve the quality of rainwater runoff flowing into the river by filtering out sediments.

“If you look at our election manifesto in 2006, 10 years ago, we had a dream to create this ABC Kallang River park that will cater to our residents and will cater to the morning joggers and people who walk in the evening. I’m very happy and proud to say that this dream has now become a reality,” said Potong Pasir MP Sitoh Yih Pin, who unveiled the revamped waterfront.

“The bigger plan is to connect the ABC water project from Upper Pierce all the way to barrage at Marina. Going forward for all of us, we want to continue on what we had begun and complete it, so we hope that residents can give their support,” he added.

The makeover is in line with the Active, Beautiful, Clean Waters programme of the Public Utilities Board (PUB) which aims to turn canals, drains and reservoirs into scenic rivers and lakes that complement the surrounding parks and spaces.

credits:propertyguru

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The Brownstone, City Development Limited’s (CDL) executive condominium (EC) project at Canberra Drive in Sembawang opens for applications from today to 20 July, with bookings to be conducted on 25 July.

Designed as a luxury EC, the 638-unit project is being developed jointly with TID Pte Ltd. It comprises eight blocks of up to 12 storeys, offering a good mix of apartment types, with unit sizes ranging from 732 sq ft for a two-bedroom to 1,711 sq ft for a five-bedroom penthouse.

The Brownstone is strategically located next to the upcoming Canberra MRT station along the North-South Line and near various major shopping malls such as Sun Plaza, Sembawang Shopping Centre and Causeway Point. It is also close to restaurants and cafes as well as recreational facilities like Sembawang Park, Orto and Yishun Park.

Plenty of schools are also nearby while the area is served by Khoo Teck Puat Hospital. It will be joined in the coming years by the Yishun Community Hospital and Admiralty Medical Centre.

“The Brownstone has an excellent location just next to the future Canberra MRT station. The north of Singapore is poised for a new burst of life. Near The Brownstone is the up-and-coming Jalan Legundi lifestyle enclave with vibrant new cafes. There are plans to build an integrated wildlife park in Mandai and transform Woodlands into a buzzing commercial hub. Adding to the EC’s outstanding connectivity are the upcoming Yishun transport hub, North-South expressway and a proposed Rapid Transit System connecting Woodlands to Johor Bahru,” said CDL group general manager Chia Ngiang Hong.

“Given the development’s strong locational attributes, we expect keen interest for The Brownstone,” he added.

Credits : property guru

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Posted by on in New Launches

There were no signs of declining interest in Thailand properties from Singapore buyers and investors last weekend when close to 100 people attended a one-day Thailand property exhibition featuring Circle Sukhumvit 31, the first time its developer Fragrant Group had showcased this project in the city-state.

Sophia Leung, Country Manager of the Singapore Business Unit of Fragrant Group, said: “There is robust interest in Thailand Properties in Singapore. That is why our parent company (Fragrant Group) decided to set up a branch in Singapore last year to better serve our expanding clientele in Singapore and extend our reach.

“In addition, Thailand is a Popular Property Investment and Tourist Destination and it will continue to remain so, especially with AEC coming into force at the end of this year, as well as the push for several Infrastructure Development projects such as the multi-billion International Railway Projects being planned with China and Japan.

“With these Infrastructure Developments, it will have the potential to become a major Transportation Hub of Asia”, she added.

Christian Glanville, Chief Executive Officer of Limcharoen Legal, was also on hand to provide legal answers to questions from potential buyers and investors.

When completed in 2016 Circle Sukhumvit 31 will offer its residents an urban living and eco-innovative lifestyle on Bangkok’s Sukhumvit – a prime location with one of the fastest-rising land prices anywhere Thailand.

The area is popular with both international investors and Thais, and is located near the Phrom Phong mass transit BTS station as well as the EM District and Japan Town.

Designed for smart city-living, Circle Sukhumvit 31 reflects the pinnacle of contemporary living in harmony with nature. Features will include fully-multi-functional furniture, solar shield, underwater aquasonic speakers for the swimming Pool, heat recovery and water recycling systems.

 

Taken Property GUru

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Posted by on in Commercial

Leading Indonesian property portal Rumah.com has appointed Rafael Jeffry Sani as Country Manager, where he will be responsible of spearheading Rumah.com's growth and strengthening the local management team.

He said: "I look forward to be part of this company and can't wait to lead Rumah.com as well as contribute to its business development in Indonesia. With my knowledge and experience, I want to give Rumah.com new perspectives, ideas, and innovations to reach its glory," Sani stated in the press release.

The appointment of Sani is the second strategic decision that Rumah.com has made in several weeks. The first one was a partnership with Emtek Group to strengthen its position in Indonesia's market.

Steve Melhuish, PropertyGuru Group's Founder and Chief Executive Officer, said that he is optimistic that Sani is the right one to lead Rumah.com to the top.

He added that Rumah.com has actually led the market, reflected from the number of downloads the platform gets which has doubled from last year's figure, and the fact that the platform has more than 8,800 property agents actively posting their property ads.

He said: "Rumah.com is obviously leading Indonesia's online property search market. Sani will bring in his experience as a businessman as well as leader to lead the company. With his proven capability of managing a fleet of different brands, Sani is the right man for Rumah.com's success."

Rumah.com, as one of PropertyGuru Group's property portals, is the biggest property portal in Indonesia. It has more than 2,000,000 visitors per month and provides more than 290,000 property listings.

As of the end of 2013 the associated App had received more than 1.3 million downloads.

Credits: Property Guru

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It's a 5,000-bed workers dormitory.

Centurion Corporation continues its expansion in Malaysia with its first acquisition outside of Johor.

The Group has acquired a piece of land located at Seberang Perai Selatan in Penang, Malaysia for SGD2.45m.

In a media release, Centurion reveals that the plot of land is strategically located at the fringe of Bukit Minyak Industrial Park, which houses notable multinational companies like Flextronics Technology and JCY HDD Technology. The proposed acquisition is subject to receipt of consent from the State of Penang, and is expected to be completed in 4Q14. Post seeking approval to convert the land from its current agricultural purpose to workers accommodation development, Centurion intends to build a 5,000 bed workers dormitory managed under the Westlite brand. Construction period is expected to take about 2 years.

Credits: Singapore Business Review

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She will be an alternate director to Mr Yang Dehe being his daughter.

SingHaiyi Group announced the appointment of Yang Manlin as alternate director to Yang Dehe.

Ms Yang, 23, is currently director at Hai Run Pte. since 2011, according to a SingHaiyi Group report.

Credits: Singapore Business Review

Tagged in: property investment
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Investment is pegged at $24 million.

Wee Hur Holdings Ltd has entered into two agreements with four individuals to invest in two property development projects in China.

In a report by RHB, the development of each project comprises two phases, with Phase 1 approximately 70%-sold to date and Phase 2 expected to commence in the second half of 2014 and complete in 2016.

RHB says that under the joint venture, Huirui and Wee Hur International shall each hold 63% and 37% stake in a joint venture company to be set up in Singapore, which will in turn ultimately own the entire stake in the existing project.

The existing project, known as Huifeng Central Square, consists of retail, office and residential units, and has a total gross floor area ("GFA") of approximately 143,700 square metres.

Credits: Singapore Business Review

 

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Posted by on in Trends

It will give PropNex greater access to local and overseas projects.

PropNex Realty, the flagship subsidiary of P&N Holdings, today revealed that it has entered into a partnership with international property consultancy JLL. Under this partnership, JLL has acquired 20 per cent of PropNex International, another subsidiary of P&N Holdings and the project marketing arm of PropNex Realty.

PropNex International was formed in 2007 and has grown to dominate the Singapore new private home sales, currently marketing 40 local and International new projects in the luxury, mass market and executive condominium segments. PropNex Realty will remain 100 per cent owned by P&N Holdings.

"With this new partnership, PropNex salespersons will have greater opportunities with more local and overseas projects. They can also expect to market JLL's clients seeking to lease their properties or investing in the commercial sector with the sale of strata-titled offices, industrial and retail units," PropNex stated in a press release.

Credits: Singapore Business Review

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It's the first Europe-based portfolio.

IREIT Global, Singapore's first pure-play REIT with freehold office assets in Germany has registered its final prospectus in the SGX Mainboard late yesterday.

In a release, financial consultancy group Citigate reveals that the IPO is projected to yield 8.0% for year 2015 and the initial portfolio of four freehold properties in Germany are valued at approximately $478.3 million.

Strategically located in the key German cities of Bonn, Darmstadt, Münster and Munich, the area is measured to be 121,506 sq m with 2,945 car park spaces.

Here's more from Citigate:

Mr. Itzhak Sella, Founder and Chief Executive Officer ("CEO") of the Manager, said: "We are deeply enthused by the strong response from investors to our IPO, which is a reflection of the market's interest and confidence in our Europe-centric asset office investment strategy. IREIT will give the investing community a unique opportunity to participate in the growth and strength of Germany's economy, the largest economy in the Eurozone."

Ms. Adina Cooper, Chief Investment Officer ("CIO") and Asset Manager of the Manager, said: "With an initial portfolio comprising well-connected and quality freehold office properties in 4 key German cities with a strong tenant base and long WALE, we believe that IREIT offers an attractive investment opportunity with strong organic growth opportunities from potential rental uplifts via German CPI-linked rental adjustments."

Credits: Singapore Business Review

 

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But office rents are expected to spike.

Retailers are scratching their heads over weak sales, even as tourist spending growth continues to moderate. The future remains challenging for domestic retail and hospitality REITs, a report by Moody's Investors Service revealed today.

Moody's revealed that while a healthy operating environment and manageable refinancing risk continue to support the stable outlook for the Singapore Real Estate Investment Trust sector, certain segments will continue to face headwinds this year.

In the retail segment, for instance, weaker tenant sales and a lack of demand will slow the take-up rate for new retail space, creating a challenging environment for upcoming supply.

Meanwhile, the increasing supply pipeline in the hotel segment in 2014 and 2015, coupled with moderating growth in Singapore's tourist arrivals and tourism spending, will cap growth in average room rates.

But a rosy outlook awaits developers of office space, as Moody's expects the tight supply of new office
space in the core central business district will improve occupancy rates. The limited supply also provides landlords with greater pricing power, which will likely increase monthly rental rates.

"The outlook reflects our view that the sector's EBITDA will grow by 4% in 2014, supported by a larger asset base and some positive rental revisions," says Jacintha Poh, a Moody's Assistant Vice President and Analyst, speaking at the Property Market Update Seminar 2014.

Here's more from Moody's:

Business and science parks will also see sizeable space additions in 2014 and 2015, but Moody's expects rental rates will remain broadly stable, owing to the strong take-up.

Moody's sees potential weakness in the warehousing segment, where a spike in the supply of new warehouse space will pressure occupancy and rental rates. Nevertheless, Moody's estimates at least 60% of upcoming space has been pre-committed by end-users.

Funding costs will increase with the rising interest rate environment, but Moody's notes the rated S-REITs are insulated as more than half of their outstanding debt is tied to fixed interest rates.

Finally, the sector's debt maturity profile is also healthy as majority of debt will be maturing in five calendar years and beyond. Moody's notes that sector's debt maturity profile is now well staggered, such that no more than 30% of debt needs refinancing in any single year.

Credits: Singapore Business Review

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venues also dip 10.6%.

Mainboard-listed integrated property developer OUE Limited's profits plunged 69.9% in Q2, as the developer raked in $4.4m compared to $14.6m in the same period last year.

The decrease was due mainly to lower contribution from Mandarin Gallery and Mandarin Orchard Singapore held via the Group's equity interest in OUE Hospitality Trust, offset partially by lower finance expenses.

A recorded revenue of S$100.2 million for 2Q14, represented a 10.6% decline as compared to the corresponding period in the preceding financial year..

According to OUE, the lower revenue was attributed to the lacklustre Singapore residential property market sentiment and the absence of contribution from the China hotels which were divested in September 2013.

However, positive contributions from U.S. Bank Tower and Lippo Plaza which were acquired in June 2013 and January 2014 respectively. On the whole, the Group's earnings before interest and tax decreased 15.8% quarter-on-quarter to S$32.8 million.

Here's more from OUE:
At post-tax level, the Group's net attributable profit was S$4.4 million in 2Q 2014The Group registered a healthy balance sheet as at 30 June 2014 with net asset value per share increasing 27.0% from S$3.18 as at 31 December 2013 to S$4.04. The Group ended the quarter with a cash balance of S$449.3 million after paying down debt of S$385.0 million and is well-positioned to capitalise on new growth opportunities.

The Directors have proposed an interim tax-exempt dividend of 1 Singapore cent per share.

During the quarter under review, the Group's Hospitality division registered revenue of S$49.3 million. Excluding the contribution from the two disposed China hotels, hospitality revenue increased 1.0% year-on-year.

Revenue generated from the Group's Property Investment Division increased to S$37.3 million due to the inclusion of revenue from Lippo Plaza and the U.S. Bank Tower.

In addition, the Group recognised revenue of S$10.9 million from the sale of residential units for Twin Peaks in 2Q 2014.

Credits: Singapore Business Review

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Trends solidify this not-so-sunny forecast.

With interim results coming soon for China property, it is believed that they will be generally lackluster, due to various trends that have led to the forecast.

According to a research note from Maybank Kim Eng, these trends are: higher gearing HoH due to slower-than-expected cash collection ratio, and most developers maintaining contract sales targets for 2014 w/ a few exceptions (potentially Hopson, Sino-Ocean).

Further, another trend was also noted in the form of lower margin guidance for some that have not guided down.

The report said that it must be recalled that Agile, CG and Shimao already guided lower GPMs before blackout.

Here's more from Maybank Kim Eng:

Est 5-8% YoY profit growth for 1H: For the sector, we expect 5-8% YoY growth in underlying profit for 1H14, with COLI, KWG, and Shimao to post highest YoY core earnings growth.

So far, a few developers including COGO (81 HK, NR) and Greenland (337 HK, NR) announced negative profit warnings.

We believe the interim earnings represent more backward looking sales and might not represent full year's picture if there are some outlier projects being delivered.

In our view, future margin outlook and the cashflow situations are key.

A good number of China developers under our coverage would have to guide more negative operating cashflow for this year and likely to slow down either new landbanking or new starts GFA to maintain healthy cashflows.

Margin-wise, we see there could be some downside risks to consensus for Yuexiu Prop and Agile.

Our 2014F earnings for Sunac, Franshion, and Agile are 5% or more above Bloomberg consensus while 8% lower for Yuexiu Prop and 7% lower for Sino-Ocean.

Over 1M, property stocks under our coverage rose an average 21%.

There should be better stock entry points given some lackluster results pending in August.

Credits: Singapore Business Review

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Other countries can't handle their housing bubbles.

Singapore has lowered down housing prices by 3.7% over the past 12 months, as other cities like London, Manhattan and Sydney struggle to keep their housing prices from surging.

Bloomberg says that Singapore and Hong Kong did not even break a sweat as it reined in home prices by imposing measures including mortgage caps, taxes on property flippers, and levies on foreign buyers as high as 15%.

The report, however, says that the ease with which Singapore and Hong Kong cooled down their property market could be due to the cities' island geographies, preponderance of public housing resulting in two-tier housing markets and citizens willing to tolerate government directives. London and New York have nowhere near the same level of control over their economies and the behavior of their residents.

Here's more from Bloomberg:

Singapore and Hong Kong, as a special administrative region of China, have governments with policy-making power over their entire geographic areas, where they are relatively free of political opposition from neighborhood groups or borough councils that stymie directives or mitigate their effectiveness. The Asian cities control the land supply and are the biggest landlords.

That allows them to implement decisive policy measures. For example, in January 2013, the Monetary Authority of Singapore, effectively the central bank and chief regulator, cut the mortgage ratio allowable on purchases of second homes while more than doubling minimum down payments from 10 percent to 25 percent. The banks had no choice but to follow.

The dominance of the private sector in the housing markets of New York and London also leaves them with less leverage than their counterparts in Asia. More than 80 percent of Singapore residents live in government-built flats, according to the city's Housing & Development Board.

Of those living in Singapore's public housing, more than 90 percent own their apartments, the result of government policy promoting home ownership through a combination of cheap loans, housing grants and a program that allows buyers to use accumulated government pension contributions for purchases.

Public housing doesn't carry a stigma in Singapore, where most is located in master-planned towns, with schools, sports and medical facilities in landscaped surroundings.

Credits: Singapore Business Review

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Prices slipped in all three regions.

Homeowners who are thinking of re-selling their property must brace themselves for thinner and thinner profits. Overall resale prices of non-landed private homes continued their steady decline in June, reaching an 18-month low as prices fell islandwide.

According to the Singapore Real Estate Exchange's Private Residential Flash Report, private resale prices fell by 1.4% month on month in June, a record low since December 2012. But compared to the recent price peak in Jan 2014, June prices are 4.7% lower.

15 out of 24 of districts also saw negative median transaction over x-values. This means that majority of the non-landed private property buyers last month in these districts purchased their units below what other buyers who came before them paid for in similar units.

For districts with more than 10 resale transactions in the month of June, district 15 (Katong, Joo Chiat, Amber Road) and 10 (Bukit Timah, Holland Rd, Tanglin) had the lowest median TOX at -$50,000 and -$37,000 respectively.

"An estimated 452 resale transactions were registered in the month of June, a 7.9% increase month-on-month. On a year-on-year basis, resale volume posted a 23.8% drop compared to 593 units resold in the same month of last year. Compared to the peak when 2050 units were resold in April 2010, the volume was still down by 78.0%. Since beginning of the year, resale volume has gone up by 53.7%," the SRX noted.

Here's more from the report:

On a regional basis, prices fell in all 3 regions. Rest of Central Region (RCR) led the fall by a 3.2% decrease, followed by prices in Core Central Region (CCR) and Outside Central Region (OCR) which dropped 1.7% and 0.3% respectively.

District 9 and 11 saw highest median TOX. Among districts with more than 10 resale transactions in June, district 9 (Orchard, Cairnhill, River Valley) and 11 (Watten Estate, Novena, Thomson) posted highest positive TOX values of $30,000 and $9,000 respectively.

This means that majority of the non-landed private property buyers last month in these districts purchased their units above what other buyers who came before them paid for in similar units.

Credits: Singapore Business Review

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We're fully regulated by Singaporean law, the group asserts.

Brazilian property development firm EcoHouse yesterday issued a scathing reply to the fact that it had been listed under the MAS' Investor Alert List.

The company reiterated that the MAs list does not imply that EcoHouse Group has contravened any Singaporean laws.

"We are somewhat surprised that some individuals had the impression that the company was under MAS regulation and welcome and clarification provided by the MAS list. EcoHouse Group is, and has always been, fully regulated as required by Singaporean law," the group stated.

Here's more from EcoHouse

Furthermore, MAS publicly announced that EcoHouse had been added to the Investor Alert List in April 2014, therefore it seems extremely strange to see this news surface in some circles of the press three months later and being portrayed as a new development.

We can only conclude that this resurfacing of old news is driven by those with an agenda against the company, who wish to impede EcoHouse Groups's work in delivering quality homes to Brazilian families and market leading returns to investors.

To reiterate, the MAS list does not imply that EcoHouse Group has contravened any Singaporean regulations, or that there has been anything improper in the company's marketing and promotions.

Nor is the list intended to advise anyone against investing against the companies featured on it. Conversely, some of the leading real estate companies in Singapore also feature on the list as they are unregulated by the MAS.

Credits: Singapore Business Review

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Resale prices continue their 5-month slide.

The government's property cooling measures are really working out, judging by the two-year low in HDB's price index in june. According to the Singapore Real Estate Exchange (SRX), HDB prices have dropped by 6.1% prices have dropped from June 2013.

The SRX HDB Flash Report for June 2014 showed that prices have dropped by 6.8% compared to peak levels in Apr 2013. Resale volume remained flat and rental prices dropped by 1.1%, while rental volume also fell by 2%.

"Overall, HDB resale prices slipped 0.6% in June compared to May. The price drop is evident in 3,4,5-room flats which saw a decline of 0.6%, 0.8%, and 0,3% respectively. Executive flats on the other hand experienced a 1.3% increase in price. However, compared to its peak in Feb 2013, Executive flats showed a decline of 5.1%," the report stated.

Here's more from SRX:

According to HDB resale data compiled by SRX, 1,315 HDB flats were sold in June's resale market. June's volume remained relatively flat from May's 1,320 transacted units.

On a year-on-year basis, June's resale volume is also relatively flat compared with 1,325 units resold in the same month of last year. Comparing to the peak where 3,649 units were resold in May 2010, the volume is still down by 64.0%.

An estimated 1,590 HDB flats were rented in June 2014, a 2.0% decrease from May's 1,622 units. On a year-on-year basis, June's rental volume was 0.9% higher than the same month of last year in which 1,576 units were rented.

Overall HDB rental prices decreased by 1.1% in June compared to May, reaching a new low since Jan 2012. 4,5-room flats and executive flats softened by 1.7%, 1.3% and 1.1% respectively, while 3-room flats saw a slight 0.1% price increase.

On a year-on-year basis, overall rental prices in June 2014 are down 3.4% from the same period last year.

Credits: Singapore Business Review

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The bidding race has been won.

Singapore's Frasers Centrepoint Ltd (FCL), has reached a deal to buy Australia's Australand Property Group (ALZ.AX) for about AUD2.6 billion or $2.46 billion.

Frasers Centrepoint is backed by Thai billionaire Charoen Sirivadhanabhakdi, whose appetite is growing for acquisitions outside Thailand after he took over conglomerate Fraser and Neave in an $11 billion deal last year.

FCL trumped competitor Stockland Corp Ltd, who offered AUD2.5 billion and owns 15.7% of Australand.

Here's more from Reuters:

Australand said a statement on Tuesday it has entered into an agreement with FCL under which the Singapore firm's wholly-owned subsidiary will make an offer to buy Australand's stapled securities for A$4.48 each.

The deal has to be approved by at least half of Australand's shareholders and Australia's Foreign Investment Review Board.

Australand directors have unanimously recommended FCL's offer.

FCL was spun off from F&N and listed in Singapore in January and this month a hospitality trust backed by Charoen's real estate units is raising nearly $300 million in a Singapore initial public offering.

The Singapore firm is 59 percent owned by Charoen's investment company TCC Assets Ltd and 29 percent owned by his Thai Beverage PCL.

Deutsche Bank and Standard Chartered Bank are the financial advisers to FCL.

Australand was being advised by Fort Street Advisers, Macquarie Capital and King & Wood Mallesons.

Credits: Singapore Business Review

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Household and mortgage loans are trekking north.

Banks are becoming more exposed to property market as buyers turn to them in their plight against the house measures.

According to DBS, the TDSR is one of the macro prudential measures employed by the MAS to curb excessive lending and mitigate the risk exposure of the banking system to the real estate sector.

Here's more from DBS:

Financial institutions are not allowed to extend additional loans to borrowers whose total monthly debt repayments exceed 60% of monthly income.

The aim is to limit consumer leverage and cool demand for loans, particularly large-ticket mortgage loans.

The property market is showing signs of moderation due to the series of cooling measures. This has led some to suggest that the MAS may unwind some of the earlier measures.

We suspect that will not happen soon, as the easing in property prices was the raison d'etre of the cooling measures. Absent a sharp fall in prices and / or rise in negative home equity, policymakers will likely allow the market to self-adjust over time.

The focus of monetary policy remains on managing overall leverage within the economy.

The household debt-to-GDP ratio rose to 75% in 2013 and appears to be continuing north. The mortgage loan-to-GDP ratio is at historical high of 45% while the LDR has continued to rise towards its historical peak almost a year after the introduction of the TDSR.

We suspect that these various measures against leverage will show little unwinding until interest rates begin to rise.

For most people, investment in property is a long-term commitment. Hence, it is important for potential home buyers to take into account the negative impact of interest rates on property prices, as well as to do the necessary "stress testing" to prepare for the higher interest rates that will eventually come.

This will help home owners determine whether their properties will remain affordable under higher rate scenarios.

Credits: Singapore Business Review

Tagged in: property investment
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