Posts tagged property
Indonesia got a visit from New York property behemoth the Trump Organization this week, with its executive vice president and heir to the famous name Donald Trump Jr. impressed at what he sees as a “potential property gold mine” as the regional economy grows.
Donald Jr. was on a research mission to Indonesia with plans to set up a base, holding talks with local property interests Lippo Group and Bakrie Group. While he said it was too early to discuss numbers or partnerships, he confessed that the scene in Indonesia was “totally different” to what he imagined it would be, with a growing wealthy class and a “robust domestic market forming”.
In this interview with the Jakarta Globe, Trump also said his organization was “very bullish” about Asia in general and that they would go wherever wealthy classes were growing the fastest. The Trump Organization, an American institution in the real estate, retail, commercial property, hotel and golf worlds, has been looking outside North America to Asia and Eastern Europe as its home market still struggles to regain confidence after the 2008 financial crisis.
As for Indonesia’s growing number of wealthy, an additional 7 million were joining the middle classes every year and the combined wealth of the country’s 150 richest individuals jumped 75% from last year to US$107.9 billion. The national per capita income, currently $3005 a year, should reach $5000 a year on current projections.
source & articles: The Jakarta Globe
Vietnam’s official devaluation of its currency, the dong, by 9.3% may have been larger than most expected, but Maybank Investment Bank Research says the impact on Malaysian companies in Vietnam will be minimal, according to The Edge Malaysia. Property developers would benefit from higher selling prices in future, denominated in US dollars.
Among the Malaysian property developers doing business in Vietnam are Gamuda, WCT, SP Setia, Ireka and Berjaya Land. Gamuda’s current projects are RM800 million (US$262 million) worth of infrastructure construction at Yenso in Hanoi it is providing in return for land, and a RM277 million ($90.7 million), 60% stake in a development at Tan Thang in Ho Chi Minh City.
Other Malaysian companies likely to be affected by the devaluation are financiers Maybank, Public Bank, CIMB, RHB and Hong Leong Bank, plus consumer based companies QL Resources and Malayan Flour Mills. AirAsia and Malaysia Airlines also fly regularly to Hanoi and Ho Chi Minh City.
The Singapore government has taken further steps to curb rising property prices and cool the market, after initial measures had only a minor effect on real estate buyers’ mood.
The new rules, effective from today, include stamp duty charges on all properties resold within four years of purchase (previously three), and individual investors servicing an existing loan will only be able to borrow 60% of the value of a new property (previously 70%). Corporate investors are restricted to 50%.
Singapore property prices reached record levels in 2010, with private home prices rising 17.6%. With liquidity in the sector still quite high and money coming in from overseas, the government feared an asset bubble. Hong Kong and China faced a similar situation, with their governments introducing even tougher measures to curb the excitement such as a 15% Hong Kong tax on properties held for less than six months.
source & article: Reuters via The Edge Property
Maybank is taking advantage of the Malaysian ringgit’s current higher value against the pound sterling, setting up a facility to allow customers to take ringgit loans to buy property in London.
The ‘Overseas Mortgage Loan Scheme’ expects a takeup of RM60 million ($19.7 million) as Malaysians buy commercial and residential properties in prime London locations like The City, Kensington, Westminster, Knightsbridge and Chelsea. Malaysia-based financing will be available for up to 85% of purchases with flexible payments and terms of up to 30 years or 70 years of a customer’s age (whichever comes first).
Until now, Malaysians interested in UK property had to take pound loans through UK-based banks, subjecting themselves to the risks of currency value volatility and were limited to purchasing ‘buy-to-let’ properties, rather than own occupation.
Maybank said it expects applications to peak early in the year, as the UK would institute a new 5% property tax on properties over 1 million pounds from April. The ringgit’s improved value and lower real estate prices have seen a recent surge in interest among high net worth Malaysians looking to buy in western European properties, either as investments or as housing for children studying overseas.
source & article: The Edge Malaysia
Suburban retail rents, like many other property-associated prices in Singapore, have been rising in recent years. That growth is likely to slow down as around a million sq ft of new space became available in 2010 and another 800,000 sq ft will come online over the coming year.
That suburban addition makes up about 60% of all new retail space available in Singapore. The new supply has increased suburban prices and narrowed the gap between rents in local malls and those in prime central shopping areas like Orchard Road, which have been falling. At the beginning of 2010 the difference was 12.6% and now stands at only 3.6%.
Suburban retail rents grew 2.8% to S$29.10 per sq ft last year. More space will continue to be added this year and in 2012, most notably from locations like Clementi Mall, CapitaLand’s JCube and Frasers Centrepoint’s Changi City Point.
source & article: PropertyGuru via Yahoo! Singapore
Condo developments aimed at the mass market (under S$1,000 per sq ft) will likely drive Singapore’s property demand this year, as more look for ‘safer’ investments amid low borrowing rates and rapidly increasing real estate values.
In a move to cool the market somewhat, the government banned private property owners from simultaneously owning a government Housing & Development Board (HDB) flat in August last year. This move, plus an influx of foreign workers looking for either investments or just more affordable housing, should see increased interest in the cheaper properties.
It’s also a sign that foreign investors see some risk in the higher end of the market, yet still retain enough confidence that some Singapore prices will rise further. Other speculators’ favorites in the region, like Hong Kong, have introduced tougher cooling measures like a 15% stamp duty on properties sold within six months of purchase.
source & article: Channel NewsAsia
Efforts in China to cool the local property market are serving up bargains to Singapore investors, according to TodayOnline. Increased interest rates and suspension of mortgages on third homes, plus rumors of new property taxes, have stalled or even lowered prices. Prime sites in the most attractive Chinese cities are now available to foreign investors who might otherwise have stayed out.
Singaporean companies like CapitaMalls Asia (CMA) and City Developments (CDL) have seized the chance. CMA bought a 66% stake in a S$747.2 million (US$578.5 million), 24,000 sq m Shanghai retail and office complex in November, then followed up in December with its announcement of a joint venture with Chinese developer CapitaLand China (and others) to build Shanghai’s second Raffles City complex for S$1.6 billion (US$1.24 billion). CMA now has S$7.3 billion invested in China with plans for a further S$2 billion, and a goal of 100 shopping malls over the next five years.
CDL is focusing on the residential market through its subsidiary CDL China, with a $45.7 million, 27,000 sq m residential complex in Chongqing. The company has big plans for China, and has identified 12 cities as targets for expansion.
source & article: TodayOnline
Indonesia’s banks are salivating at the prospect of a overseas-led property boom as restrictions on foreign ownership are hopefully relaxed next year. Some are estimating inflows of US$3 to 6 billion in property investment should parliament vote in favor.
In this article, Bank Tabungan Negara (BTN) CEO Iqbal Latanro sees a chance for Indonesian banks to begin a rapid expansion, as property prices in the cities increase and the economy grows to allow more people to access loans. BTN is the smallest of four state-owned banks but is the country’s largest mortgage provider. To back up that confidence, It is planning to open 200 new branches next year and is looking to raise Rp2 trillion (US$222 million) through bonds and Rp1 trillion by asset securitization.
BTN’s expects to make a Rp790 billion ($87.5 million) in 2010 — a big jump from its Rp490.45 billion ($54 million) in 2009. Should things continue to go well, Latanro projects profits will rise another 50% to Rp1.2 trillion. The bank has raised Rp1.9 trillion since going public a year ago, and shares have risen 94% since then.
source & article: Reuters via The Jakarta Globe
Another proposed development has been added to the Iskandar Malaysia project near the southern border in Johor state. A Singapore-Malaysia partnership called Azea Properties has announced plans for a RM500 million (US$158.8 million) waterfront and commercial project at Danga Bay, one of Iskandar Malaysia’s ‘key flagship zones’.
The RM150 million Singapore portion of the investment will come from Imperial Marina Pte Ltd., a firm created especially to explore opportunities at Iskandar. A joint venture named Para Impiana Sdn Bhd will include Malaysian developers Danga Bay Sdn Bhd (37%) and civil engineers Pembinaan Sahabatjaya Sdn Bhd (33%). Both companies have participated in more than RM1.3 billion ($413 million) worth of projects in the past decade.
Azea Properties will consist of 700 serviced apartments in several tower blocks over 1.68 hectares. There will also be room for retail space.
source & article: PropertyGuru via Yahoo! Singapore
The Singapore government is selling off more land for commercial use and much more will follow, thanks to increasing demand for office space and a large expansion of the Central Business District.
About 98,120 sq meters has been confirmed for sale under the Government Land Sales Programme (GLS) at Paya Lebar Road/Eunos Rd 8 and Robinson Road/Cecil St. A further 102,180 sq meters is on the reserve list. Six new plots of land will be jointly developed at Marina Bay and Ophir Rd / Rochor Rd by M+S Pte Ltd under a recent agreement with Malaysia (potentially 500,000 sq m). Over the next few years, the government plans to continue releasing parcels of land and develop support infrastructure in the Marina Bay area, including extensions to transit lines, tunnels and expressway construction.
source & article: Straits Times