Singapore - Comm Properties & REITS 02 (Jan 13 - Jan 19)

[behappyalways]

Why the investment outlook for Singapore property markets may be grim
http://www.cnbc.com/2017/01/26/why-the- ... -grim.html

[behappyalways]

For Singapore REITs, Mate or Die
https://www.bloomberg.com/gadfly/articl ... ate-or-die

[winston]

From luxury villas to office space, Hong Kong investors pile into depressed Singapore property market

A growing number of Hong Kong investors are on the hunt for office buildings and shopping malls in Singapore with the belief that property prices in the city-state have bottoming out, according to real estate consultancy CBRE.

The firm says it has recorded S$880 million worth of Singaporean properties purchases by Hong Kong investors this year – that’s more than three times the S$250 million for the whole of last year.

It also contrasts sharply with the sluggish S$40 million that has came from mainland China this year.

Source: Today

http://www.todayonline.com/business/pro ... e-property

[behappyalways]

Chart of the Day: How Marina One's completion will impact office supply
http://sbr.com.sg/commercial-property/n ... ice-supply

[behappyalways]

Office rents took a steep fall in 1Q2017
https://www.theedgeproperty.com.sg/cont ... all-1q2017

[winston]

not vested

We anticipate supply led recovery within the business park and hospitality space, and recommend OVERWEIGHT on the REITs sector.

Regional yield spreads remain the most attractive for Singapore REITs with upcycle spreads indicating over 23% upside potential.

We prefer deep-value and diversified REITs such as Ascendas REIT, CapitaLand Commercial Trust, and Frasers Logistics Trust as our top picks.

Source: UOBKH

[winston]

not vested

We anticipate supply led recovery within the business park and hospitality space, and recommend OVERWEIGHT on the REITs sector.

Regional yield spreads remain the most attractive for Singapore REITs with upcycle spreads indicating over 23% upside potential.

We prefer deep-value and diversified REITs such as Ascendas REIT, CapitaLand Commercial Trust, and Frasers Logistics Trust as our top picks.

Source: UOBKH

[behappyalways]

Singapore Office Rents Drop to 7-Year Low as Vacancies Climb
https://www.theedgeproperty.com.sg/cont ... cies-climb

[winston]

Singapore REITs: Continued strong momentum for industrial data points

Singapore’s industrial production which was released recently for the month of Jul saw robust YoY growth of 21.0%, blowing away economists’ expectations for a 12.9% increase (based on a Bloomberg median survey) and also grew at a faster pace as compared to Jun (+13.1%).

This strong momentum was also reflected in the PMI readings. For the month of Jul, manufacturing PMI and electronics PMI were 51.0 and 52.2, signalling the eleventh and twelfth consecutive month of expansion, respectively.

Notwithstanding these positive data points, we expect industrial rents in Singapore to remain sluggish in the near-term given supply pressures.

Maintain NEUTRAL on the broader S-REITs sector.

Our top pick within the industrial REITs space is Frasers Logistics & Industrial Trust [BUY; FV: S$1.22], which is also one of our overall top recommendations for the S-REITs sector.

Our other preferred sector picks are Frasers Centrepoint Trust [BUY; FV: S$2.28], Keppel DC REIT [BUY; FV: S$1.39] and OUE Hospitality Trust [BUY; FV: S$0.82].

Source: OCBC

[winston]

Singapore Snub Spoils Office Party

By Andy Mukherjee

Malaysian billionaire Quek Leng Chan's Guocoland Ltd. snagged the Beach Road site for a record S$1.62 billion ($1.2 billion), beating four suitors, out of which another three were foreign.

Tellingly, cousin Kwek Leng Beng's City Developments Ltd. didn't bother to join the contest. Nor, as broker Cushman & Wakefield notes, did other prominent Singapore builders like CapitaLand Ltd. or Keppel Corp.

The lone Singaporean bid, by brothers Robert and Philip Ng's Far East Organization Pte, was also the lowest at S$1.295 billion.

With rents in central areas still 25 percent lower than on the eve of the 2008 financial crisis, who's going to trudge up to Beach Road?

This time around, Kwek doesn't seem to be buying into the vision of a bustling new office district in Beach Road. If he's passing it up to his Malaysian cousin, who's paying 60 percent more than what Kwek's City Developments did for the nearby South Beach land parcel at the peak of the office market in 2007, then investors should perhaps also tone down their optimism by a notch or two.

Source: Bloomberg

https://www.bloomberg.com/gadfly/articl ... ty-revival