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12-09-13, 15:01
http://www.straitstimes.com/premium/money/story/spore-real-estate-still-attractive-foreign-players-20130912
HEATING UP
S'pore real estate 'still attractive' to foreign players
Govt plans for certain areas draw interest from developers, investors
Published on Sep 12, 2013
By Melissa Tan
FOREIGN developers and investors are still very keen on buying Singapore real estate, the head of the property developers' industry body said yesterday.
"Interest from foreigners for land remains unabated. It's not just developers, there are also some private equity funds," said Mr Chia Boon Kuah, president of the Real Estate Developers' Association of Singapore (Redas).
"They have done their sums... Obviously the future of Singapore in the medium and long term is, to them, very promising."
Speaking on the sidelines of a Redas mid-autumn lunch held at the Fullerton Hotel, he said upcoming projects such as the expansion of Changi Airport would drive demand for space.
Mr Chia, who is also chief operating officer at Far East Organization, said in a speech at the lunch that the Government's plans to develop certain areas of Singapore have "opened up tremendous economic and business opportunities" for developers.
In particular, Tanjong Pagar and Paya Lebar will be "the biggest blank slates for Redas members to work on since Marina Bay", he said. He also cited existing projects such as a "vertical kampung" planned in Woodlands that will integrate homes, shops, clinics and other amenities in one building.
He also told reporters that the vibrancy of Tanjong Pagar and the older parts of the Central Business District would get a lift.
He cited the development of a 99-year leasehold plot between Cecil and Telok Ayer streets won by a Frasers Centrepoint unit last month through a public tender.
"Cecil Street is really quite exciting. That place will grow, and that will push (growth) further south to Tanjong Pagar."
Mr Chia also said strong interest from foreigners for land here was not at odds with his earlier statement made at a Redas seminar in July that Singapore was "approaching an important inflection point in the real estate cycle".
"When I said it was an inflection point, that was more for the purchasing market of the end product and the rental market," he said. "But for the land market, as it has been proven, the appetite is still quite robust."
Foreign developers, especially some from China, have been active in state land tenders recently.
For instance, the second-highest bid for a plum plot at Mount Sophia on Tuesday was lodged by a unit of Chinese developer Fantasia Holdings Group and Singapore-based private equity firm F&H Fund Management.
Its bid of $442 million for the 99-year leasehold site was just 0.06 per cent below the top bid of $442.3 billion from a consortium of Hoi Hup Realty, Sunway Developments and SC Wong Holdings.
Other foreign investment include Wen Way Investments' purchase of all 22 retail units at The Sail @ Marina Bay in July. The Singapore-incorporated company is controlled by Chinese interests.
Park Regis Singapore, a 203-room hotel and seven-storey office block with about 42,000 sq ft of net lettable area, was sold to an unnamed Chinese buyer for about $250 million in June.
[email protected]
HEATING UP
S'pore real estate 'still attractive' to foreign players
Govt plans for certain areas draw interest from developers, investors
Published on Sep 12, 2013
By Melissa Tan
FOREIGN developers and investors are still very keen on buying Singapore real estate, the head of the property developers' industry body said yesterday.
"Interest from foreigners for land remains unabated. It's not just developers, there are also some private equity funds," said Mr Chia Boon Kuah, president of the Real Estate Developers' Association of Singapore (Redas).
"They have done their sums... Obviously the future of Singapore in the medium and long term is, to them, very promising."
Speaking on the sidelines of a Redas mid-autumn lunch held at the Fullerton Hotel, he said upcoming projects such as the expansion of Changi Airport would drive demand for space.
Mr Chia, who is also chief operating officer at Far East Organization, said in a speech at the lunch that the Government's plans to develop certain areas of Singapore have "opened up tremendous economic and business opportunities" for developers.
In particular, Tanjong Pagar and Paya Lebar will be "the biggest blank slates for Redas members to work on since Marina Bay", he said. He also cited existing projects such as a "vertical kampung" planned in Woodlands that will integrate homes, shops, clinics and other amenities in one building.
He also told reporters that the vibrancy of Tanjong Pagar and the older parts of the Central Business District would get a lift.
He cited the development of a 99-year leasehold plot between Cecil and Telok Ayer streets won by a Frasers Centrepoint unit last month through a public tender.
"Cecil Street is really quite exciting. That place will grow, and that will push (growth) further south to Tanjong Pagar."
Mr Chia also said strong interest from foreigners for land here was not at odds with his earlier statement made at a Redas seminar in July that Singapore was "approaching an important inflection point in the real estate cycle".
"When I said it was an inflection point, that was more for the purchasing market of the end product and the rental market," he said. "But for the land market, as it has been proven, the appetite is still quite robust."
Foreign developers, especially some from China, have been active in state land tenders recently.
For instance, the second-highest bid for a plum plot at Mount Sophia on Tuesday was lodged by a unit of Chinese developer Fantasia Holdings Group and Singapore-based private equity firm F&H Fund Management.
Its bid of $442 million for the 99-year leasehold site was just 0.06 per cent below the top bid of $442.3 billion from a consortium of Hoi Hup Realty, Sunway Developments and SC Wong Holdings.
Other foreign investment include Wen Way Investments' purchase of all 22 retail units at The Sail @ Marina Bay in July. The Singapore-incorporated company is controlled by Chinese interests.
Park Regis Singapore, a 203-room hotel and seven-storey office block with about 42,000 sq ft of net lettable area, was sold to an unnamed Chinese buyer for about $250 million in June.
[email protected]