Monday, December 30, 2013
Property: 2013 wrap. Singapore’s developers posted the worst performance on the STI this year after recording the biggest gains in 2012 as property curbs drove home sales lower and slowed price gains. Property stocks in Singapore, ranked the most-expensive city to buy a luxury home in Asia after Hong Kong, may further languish next year after the government took measures to cool prices. Home sales may decline 10% in 2014 while prices are expected to drop for the first time in two years, according to broker Chesterton Singapore. Higher borrowing costs, falling public housing resale prices, slower population growth and a record number of apartment completions are key factors that could cause residential demand to wane. The property curbs, which included stamp duties and other taxes on home purchases, led Citigroup and UBS to rate the city’s residential developers underweight in the past two months. CapitaLand (-18% ytd) and City Dev (-25%), the nation’s two biggest listed developers, were among the three worst performers on the index after being in the top 10 last year. Four of the 10 poorest performers on the benchmark were property companies. The Singapore property index, which tracks 50 developers in the city, slid 10% this year, after surging 48% in 2012. The Straits Times looks at the top developers to watch in 2014: M+S (unlisted) The company is a 40:60 JV between Temasek and Khazanah Nasional. Fresh off the strong sales of Duo Residences at Bugis last month (87% of the 540 units released sold at $2,000 psf ASP), M+S is riding high. It is expected to launch the much-awaited Marina One, a 3.67m gfa mixed use development, within the next six months. Consultants say homes there could go for around $2,800 to $3,000 psf. CITY DEV Another major project that will hit the market next year is South Beach, a mixed-use development located between Raffles Hotel and Suntec City and next to the Esplanade MRT station. South Beach is developed by City Dev and IOI Corp. The 190 homes at South Beach Residences are expected to go on sale at ~$3,000 psf. No launch date announced, but the project is expected to begin sales by the end of Mar. City Dev and its joint venture partners, Hong Leong and Hong Realty, also plan to launch a 944-unit residential project in Pasir Ris and an 845-unit development in Commonwealth Avenue in 1H14. FRASERS CENTREPOINT Having been infused with fresh cash for acquisitions and a new spirit of daring, Frasers Centrepoint (FCL) could shake up the market next year. FCL is expected to be spun off from its parent company, F&N, and listed on SGX on Jan 9. OXLEY HOLDINGS CEO Ching Chiat Kwong has grand plans for Oxley, which made its maiden foray overseas this year. The local developer has been on an acquisition spree, and now has ventures in Malaysia, Cambodia and China. Last month, it bought Royal Wharf, a 16.2ha mixed-use site on the banks of the River Thames in London, for ~$419m. Oxley plans to transform the site into an entirely new district with residential units as well as commercial, retail, leisure and educational facilities. Oxley is also redeveloping the site of the Pines country club in Stevens Road, which it bought from motoring tycoon Peter Kwee for $318m. The company moved from the Singapore Exchange's Catalist board to the mainboard in Feb.