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Analysts are optimistic about CapitaLand Ascott Trust (CLAS) The CLASfollowing the announcement of results for the 1HFY2023 year that which ended in June with optimism for the portfolio amid the recovery of tourism.

CGS-CIMB research analysts Natalie Ong and Lock Mun Yee keep an “add” to CLAS in the note of July 28 with an unchanged price target of $1.27 CLAS is an 15.5% upside. “CLAS is our number one pick within the industry because its balanced and diverse portfolio gives stability and potential upside risk to the sector of hospitality and potential opportunities for reconstitution of portfolios.”

Lentor Hills Residences Condo Yio Chu Kang is located in one of the most attractive areas exclusively set for residential.

CLAS’s 2QFY2023 end-June revenue per unit of available units (RevPAU) was 99.98% of pre-pandemic or 2QFY2019, levels calculated in local currency terms.

2QFY2023’s RevPAU and 1HFY2023’s by 20% as well as 44% year-on-year up to $139 and $138, respectively with 2QFY2023’s RevPAU rising to the 98% of the pre-Covid-19 proforma RevPAU and portfolio occupancy for 1HFY2023 was 75%.

On an same-store basis six of CLAS’s 8 major markets were over pre-Covid-19 levels. Note ong as well as Lock.

CLAS’s 1HFY2023 income as well as net property earnings (NPI) increased by 30% and 31% in both cases% over the previous year up to $346.9 millions and $154.4 million respectively. This is largely due to improvements in the operational efficiency of the properties along with the addition of fourteen more-long-stay assets in FY2022 as well as 2QFY2023.

Inclusion of the distribution of gains from exchanges that are realized one-time the distribution for stapled securities (DPS) rose 19% year-on-year at 2.78 cents.

Additionally, the rising interest rate and the negative yield spread has led many S-REITs change their strategies to focus on organic growth by implementing assets enhancement programs (AEIs) and put goals for acquisitions on hold The CGS-CIMB analysts write.

The size and diversity allows it to implement strategies to optimize portfolios and assets including divestments forward purchase acquisitions, and opportunities for redevelopment.

In the briefing for results on July 28th, CLAS announced that it has signed an agreement to purchase and sell to sell the four properties located in France in exchange for EUR44.4 millions ($63.4 millions). The price of the sale is approximately 63% over book value, leading to an exit return of around 4% as well as unlocking net profits that amount to EUR0.2 million.

The management expects that the sale will be completed by the end of 4QFY2023.

CLAS is still holding $300 million in divestment profits that are yet to be utilized. It also has AIEs on five properties between 1Q2023 and 2Q2024 and is developing Somerset Liang Court and is scheduled to be completed in 2H2025.

Benefits of reopening “decelerating”

In the meantime, Maybank Securities analyst Krishna Guha reports that they hosted CLAS’s management at a lunch with a selected number of investment professionals. “Questions included the viability in RevPAU growth, the impact of cost pressures and the outlook for investments. Management has stated that rates for hotel rooms are higher than the pre-pandemic level in many markets in addition, forward bookings through 2HFY2023 have been steady.”

Guha remains a “buy” for CLAS with a reaffirmed price goal of $1.20.

CLAS’s RevPAU offers more upsides because occupancy is increasing to previous peak levels, but the most important is restoring flight capacities Guha writes in a note dated July 30. “Further the demand for corporate services is able to withstand changes in corporate mix. The pressure on costs is mitigated by lower requirements for manpower in assets with long-stay or only a few services. As such, operating jaws remain positive. Management is looking for value-added possibilities in prime areas, or brownfield projects that are priced at a reasonable price.”

Guha said that CLAS’s management stated that assets are in good places. This could be due to maturing private funds, a change in ownership of the business line of the current owners as well as the need to reposition assets. The comments of management suggest that market depth is an appealing aspect that is a draw for this US market.

While the demand for Australian accommodation for students is high however, prices are extremely tight and the market isn’t as deep as it is in US He says. “[CLAS’smanagement reaffirmed its goal of 25-30% of its assets being in the category of long-stay. The management, however, is open to other categories of hospitality if they are able to.”

Guha reduces his DPS FY2023/2024 to 3% as well as 1% and 1%, respectively after incorporating the impact of new developments as well as the the acquisition of two rental assets in Japan and Japan, the reduction in margins is offset by the higher cost of borrowing.

The benefits of reopening are diminishing according to him until the recovery of China outbound tourism picks up speed. “That said, a strong schedule of events, the full year contribution of prior acquisitions and the finalization on AEI located at Riverside Hotel Robertson Quay [in Singaporeas well as the development of Standard at Columbia is expected to lead to DPS expansion.”

There are risks, including slow recovery of Chinese tourist arrivals, as well as flight capacity as well as lower margins as well as higher rates of interest the analyst states.

“Leave the party-poppers until the very end’

DBS Group Research, meanwhile seems more cautious, indicating an U-shaped recovery rather than V-shaped ones.

“We find a multitude of reasons that could increase the Singapore tourism industry in 2HFY2023,” note DBS’s analysts on the 28th of July. “While China’s runway for recovery has been questioned over in the last few months, recent statistics show that China has been able to travel outbound even though it’s not in line with investors’ expectations of an upward-sloping recovery.”

Top China markets for outbound trade in Hong Kong and Macau have improved beyond 60% threshold in the most recent month data set for June. Singapore is optimistically positioned in its Asia-Pacific (APAC) group as they say in addition, it is “well-positioned” to take advantage of recovering in the shape of a U.

“Nonetheless we are aware that the focus of attention for international events in the coming months will be focused on the Singapore’s Formula 1 weekend and the opening of concerts in order to provide an increase on this MICE front, which gives a lot of potential for a higher season in 2H2023,” they note. MICE is the term used to describe meetings incentives, conferences, and trade shows.

Thus, DBS stays “buy” on CLAS with an estimated price of $1.30 which is the highest of the three brokerages that are featured.

Singapore properties continue to outperform counterparts in Singapore’s APAC market, with the numbers higher in CLAS’s management contracts hotels, like Citadines Mount Sophia, which is generating rents of 20% over 2QFY2019 levels.

DBS’s analysts anticipate further value in the local market, as CLAS is looking to unlock more rent increases that are variable through the conversion of Ascott Orchard into master leases at the end of 2022.

CLAS is still offering 200 rooms available following its Liang Court redevelopment to add to the portfolio by FY 2025, “an exciting development line-up for the Singapore market” CLAS says.

As of 11.59am at 11.59am, the units in CapitaLand Ascott Trust are trading in a flat price of $1.10.

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Singapore-based property technology firm Showsuite has partnered together with Rajah & Tann Technologies (RTTech) which is which is a subsidiary of the legal company Rajah & Tann Singapore, to offer property developers the ability to automate money laundering (AML) checking services.

The partnership complies with the latest URA regulations that came into effect on June 28, as part of a strengthened anti-money laundering and countering financing of terrorist activities (AML-CFT) system. According to the rules, property developers must conduct due diligence (CDD) examinations of prospective and current property buyers in order to detect and stop terrorist financing and money laundering actions.

“The new AML standards are very stringent, as they can be costly and burdensome for property developers,” says Showsuite CEO Karamjit Singh. “As Showsuite digitises the expressions of interest as well as the bookings process, we stand a the unique chance to assist our clients automate and integrate CDD screenings into this process.”

The digitization of the CDD process can reduce the human cost and time along with real estate and paper storage costs. “We are thrilled about our collaboration with RTTech which includes API connectivity, ensuring that the whole scheduling and CDD process is smooth sleek and seamless,” Singh adds.

Raymond Lum, the group chief executive officer of RTTech and Showsuite, says that the collaboration with Showsuite is part of the company’s digital risk management service. “Leveraging AML-CFT tools for managing compliance is among our digital solutions that focus on regulatory and legal issues across all industries.”

Showsuite – its clients include GuocoLand, Far East Organization, Hong Leong Holdings, CEL Development, EL Development and Sim Lian Group — provides a live digital platform for transactions on new properties. More than 7,500 real estate agents from Singapore have registered of Showsuite’s platform. It is used in a number of new projects such as the recent launch of The Reserve Residences, Blossoms by the Park, and The Botany at Dairy Farm.

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For the 11 first months in 2022 there was 6,981 brand new homes sold, according to URA information as of December 15. Many experts are forecasting that new home sales will close this year with a 7250-7,000 units. “It’s in the lower part of our estimate of 7,500-8,000 units sold in 2022.” declares Ismail Gafoor who is the PropNex’s CEO. PropNex.

Comparatively to the 13,027 new homes that were sold in 2021, this represents 43% up to 44% year-over-year decrease in the volume of private home sales.

The number of launches that will be launched in 2022 was 17 private residential projects as well as three executive condominiums (ECs). The number of private residential units (excluding ECs) launched totalled between 4500 to 5,000 unitsthis is the lowest figure since June 2007, when URA started publishing developers sales statistics for their monthly reports as per Lee Sze Teck, senior director of research at Huttons Asia. The figure is also 53% less than the 10,496 units that were launched in 25 new developments in 2021. Lee adds.

Despite the small number of new projects that were launched during 2022 “buyers enjoyed the advantage of choosing units from inventory that was not sold and which was carried across from 2021” Gafoor says. Gafoor. “Most unsold inventory came from earlier projects that were priced lower than the 2022 launches.” For example Normanton Park, which had 1,862 units Normanton Park was sold out by July 2022, at an average price of $1,865 per square footwhich is less expensive than the median of over $2,100 per square foot which recent Outside Central Region (OCR) projects launched this year, for instance Amo Residences, Sky Eden@Bedok and Lentor Modern.

Stock that is not sold is expected to range between 15,500 and 16,500 by 2022. “It is well below the average for 10 years of 27,000 units that are not sold which is putting upward pressure on prices” Lee adds. Huttons’ Lee.

In the end, Huttons is projecting private property prices to increase by 10% throughout the year 2022, which is similar to 2021’s 10.6% y-o-y surge in 2021.

PropNex predicts that overall the private property market will experience an increase of 9% to 10% increase in 2022. Then, it will see a moderate 5-6% increase in 2023. JLL’s forecasts are lower , with an 8%-9% growth in 2022, and a rise of 2%-4% for 2023. The ERA forecast is for a 10%-12% price increase in 2022. Then, the more moderate 5-6% for 2023.

Prepared to take off
With the year coming to an end, developers are fine-tuning their new projects that are scheduled to be launched in 2023. The majority of consultants and agents are placing their bets that Sceneca Residence being the sole project that will be launched in the days before Chinese New Year.

Sceneca Residence is a 268-unit development. Sceneca Residence is located on the top of a 21,528 square foot retail podium, which includes 19 retail units. The entire development will be connected to the Tanah Merah MRT Station on the East-West Line. The project was jointly developed through Chinese developer MCC Land, Malaysian developer Ekovest Development and Singapore-listed Chinese investment company The Place Holdings in a 51:29:20 split.

El Development’s 275-unit Blossoms at the Park located at Slims Barracks Rise in one-north Sim Lian’s 368 unit Botany At Dairy Farm Botany at Dairy Farm, are likely to be the next to arrive on the runway ready to departure following Chinese new year. Year.

Botany At Dairy Farm Botany At Dairy Farm is close to the Dairy Farm Residences, which comprises 460 units. Dairy Farm Residences built by developer United Engineers. The project was launched in November of 2019. the development was sold out in January 2022.

Similar to that, Blossoms by the Park follows the opening of One-North Eden through TID (a joint venture that is owned by Hong Leong Holdings and Mitsui Fudosan) in which all 165 units of the project were completely completed within 11 months from the time of opening in April 2021.

“Projects that have attractive geographical and product characteristics will gain the approval of home buyers,” says Chia Siew Chuin, Singapore head of residential research at JLL.

She cites projects that are currently in development, including The 271-unit Terra Hill (the previously Flynn Park condominium) located at Yew Siang Road by Hoi Hup Realty and Sunway Development; the 740-unit The Reserve Residences located at The Jalan The Reserve Residences integrated development developed by Far East Organization and Sino Group and Sino Group; and the new development of 520 units on the Pine Grove Parcel A Government Land Sale (GLS) site jointly-venture with partners UOL Group and Singapore Land Group.

Forty new projects totalling estimates of 10,000-12,000 units are planned to launch in 2023, according to Huttons’ Lee. Based on the number of units included in the projects 20% are located in the Core Central Region (CCR) 50% are in the Core Central Region (CCR)% within the Rest of Central Region (RCR) and 30% in the OCR.

Three major projects of immense size in District 15’s prime area.
More than 40 new developments are planned to be launched from 2023 onwards “one out of 4 is an exclusive development that has less then 200 apartments” Gafoor says. “Based on our experiences as well as our observations, we have observed that sales in smaller developments don’t move more quickly than larger developments, that have many condominium options that appeal for families.”

The unsold inventory carried over between 2022 and 2023 is expected to be at a low level, says Gafoor. “Those who are looking to purchase a house in 2023 will need to select between units from the older launches and those carried over which will have 2023’s updated benchmark prices.”

PropNex anticipates mid-sized and large-scale developments in RCR or OCR to be well-received by homeowners due to the decreasing number of un-sold units in these areas, especially those in OCR or suburban regions. “We expect that the majority of these projects will be able to attain an average of 50% occupancy rate once they go live,” says Gafoor.

People who are looking to invest in the city-fringe zone that is located on the East Coast in prime District 15 will have three major projects to select between in 2023. There’s the Continuum which is an 807-unit freehold condominium at Thiam Siew Avenue developed by frequent joint venture with partners Hoi Hup Realty and Sunway Developments. There is also The 638-unit Tembusu Grand situated on in the Jalan Tembusu GLS site, situated next to Canadian International School (Tanjong Katong Campus) through an alliance between City Developments Ltd (CDL) and MCL Land. The largest is SingHaiyi’s 1,008-unit development situated on the GLS site located at Dunman Road, which is close to the park connector as well as the Geylang River, and is just a short walk from and the Dakota MRT Station.

“Some intriguing RCR projects currently in the pipeline are Dunman Road, Jalan Tembusu and Pine Grove GLS sites, that were offered at rates of more than $1,300 per plot ratio” Gafoor of PropNex.

Lentor Hills estate, Jurong Lake District
Within the Lentor Hills area, Hong Leong Holdings and GuocoLand are in the process of preparing Lentor Hills Residences to launch around 1Q2023. The development comes off the back of the popularity of GuocoLand’s 605 unit Lentor Modern mixed-use development integrated with the Lentor MRT Station. More than 85% of the units in Lentor Modern, which were launched on September 20, 2022 are filled with.

Five98 units of Lentor Hills Residences located in Lentor Hills is situated within a 300m distance from the Lentor MRT Station through an enclosed walkway. It is located just 1.2km from CHIJ St Nicholas Girls’ School, among the top desired Schools in Singapore.

“We believe that Lentor Hills Residences to be well-received by buyers of homes,” says Nicholas Mak director of the research and consulting department, ERA Singapore. “It could appeal to those who are upgrading from the north region, as well as residents of Yio Chu Kang. Yio Chu Kang landed housing estate who might be looking to buy as a way to invest or to be used by the next generation.”

Another development that is expected to draw interest could be Wing Tai Holdings’ upcoming Lake Garden Residences. The leasehold for 306 units, 99 years development is a revamp of the old Lakeside Apartments, which Wing Tai bought in a single transaction at $273.9 millions in the month of May of last year.

The last condo that was privately owned within Jurong West Jurong West neighbourhood was more than six years ago, back in July of 2016. The 710 unit 99-year leasehold condominium, Lake Grande by MCL Land. The development is sold out and is scheduled to be completed in the year 2019.

The spotlight is back on Jurong Lake District, with the government launching the 6.8ha white site in the 1H2023 GLS program. The site is situated near Jurong East MRT Interchange Station. Jurong East MRT Interchange Station and will be made available as a tender offer to an owner developer.

Seletar Hills, CBD and Upper Bukit Timah
If you’re looking to own a land-based property and within the neighborhood that is part of the Seletar Hills Estate The upcoming Pollen Collection by Bukit Sembawang Estates. The 132-unit land-based housing project is located on the end of the Mimosa Landed housing estate in the Seletar Hills Estate. Pollen Collection is scheduled for the launch in 1H2023.

This follows on from the success of the launch of Bukit Sembawang’s last stage of Luxus Hills, located off Ang Mo Kio Avenue 5. It was launched in February of 2020, and all 39 homes were sold during a weekend. At the adjacent Belgravia Drive the number of houses sold was 77 of from 85 strata landed homes in Belgravia Ace went on sale the very first day of its launch in January of this year. The Belgravia Ace, which is 107 units Belgravia Ace includes 104 semi-detached homes and three terraced houses, was created in partnership with the Teo family-owned Tong Eng Group and the family that owns the famous Yeap Holdings.

In the neighborhood located in Bukit Panjang, located just across Upper Bukit Timah Road, is a development planned by CDL. The 408-unit condo is scheduled to open around the second quarter of 2023. CDL is well-versed in the area, having constructed the neighboring 596-unit, 999 year leasehold Cashew Heights 32 years ago. 22 years ago, CDL’s parent firm, Hong Leong Holdings, developed the 696-unit leasehold Hazel Park Condo which is located near the development that is scheduled to begin at Upper Bukit Timah Road.

Within the CCR The CBD region will witness two mixed-use developments that will soon include homes at CDL’s two-46-unit Newport Residences on the site of the former Fuji Xerox Towers on Anson Road and IOI Properties’ 685-unit condo located at Marina View. Scheduled for release in the coming months is the revamp of the old AXA Tower located at 8. Shenton Way. With a height of 305m the 63-storey tower will be the tallest building in Singapore and will be a mixed-use project with luxurious residences.

Be wary of projections
Despite the more extensive list of new developments scheduled to the coming year, Gafoor’s prediction is for sales of new homes in 2023 to be around 8,000-9,000 units.

The ERA’s Mak estimates about 7,500-8,500 new private homes that will be sold by 2023, and JLL’s Chia is more cautious with an estimate of 7,700 to 8,000 new house sales for the year ahead.

“We believe that market slowdown and macroeconomic uncertainty to continue to impact the market through 2023.” Chia says. Chia. “Nonetheless there is confidence in the long-term potential capital appreciation of Singapore properties as well as the health of household liquidity as well as low unemployment and aspirations to homeownership will continue to drive homebuying demand.”

She says that demand driven by supply from major projects that are being launched and “needs-motivated purchase of homes like those upgrading from a previous property or who are right-sizing their home to a smaller house” Demand will help the market.

ERA’s Mak believes that the new prices for launch “stabilise and increase at a sustainable pace” in 2023, as homeowners adjust their expectations. “In the wake of increasing interest rates as well as the current chilling measures, some potential buyers might be hesitant to make a decision to purchase the property,” he says. “Also the recent mass layoffs within the tech industry as well as the prospect of economic uncertainty could lead to an increase in demand for homes.”

In the coming year, the prices of new launches under the OCR are predicted to remain “similar to 2022’s” According to PropNex’s Gafoor. He also predicts that benchmark prices being set within the RCR.

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Pan Pacific Hotels Group, part of the Mainboard-listed UOL Group, has showcased its flagship hotel Pan Pacific Orchard, Singapore.

The design was created by the renowned WOHA Architects, the design of the newly renovated hotel property is a lush open-air architecture, as well as high-volume open-air terraces. It is located on Orchard Road, the exterior appearance of the hotel is expected to bring a lush greenery to the top shopping area.

“We provide a completely new luxury experience for those who are discerning and change the look of Singapore’s famous Orchard Road,” says Marcel NA Holman, general manager of Pan Pacific Orchard and vice director of the operations department for China, Japan and Indonesia.

Four outdoor terraces, dubbed Forest, Beach, Garden and Cloud. These green spaces will be populated with more than 78.548 square feet of greenery, which is about 200% of the hotel’s land. Each guest room will feature views of the green landscape of the terrace or the cityscape.

For instance for instance, The Forest Terrace envelops the lobby area and is awash with verdant greenery as well as cascading water features. The space’s high volume is highlighted by a 120m-long green column of curving plants and flowers that covers the top three floors of the hotel.

If you’re looking to book rooms that are situated between the fifth and tenth floors the at Pan Pacific Orchard’s Beach Terrace is designed like an oasis located in the middle of the city. The pool is outdoor and runs through the fifth storey, and is surrounded by beaches and tropical vegetation which resembles a beach getaway.

The 11th through 16th floors are highlighted by their Garden Terrace, an outdoor lawn that is a part of guests’ rooms. The Garden Terrace is surrounded by private cabanas. this Garden Terrace offers a serene and beautiful space to host customised occasions and relaxing.

The top floor, called the Cloud Terrace covers the 18 to 23 floors. A ballroom without pillars on the 18th floor has the capacity of 420 seats and the space for events is perfect for parties with the city’s natural landscape as the background.

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Singapore, Tokyo, and Sydney are among the top three markets for investors. Singapore was benefited by the transfer of capital that could otherwise have been devoted towards assets within Mainland China and Hong Kong.

In the meantime, Tokyo continues to enjoy an environment of zero interest rates that results in lower cost of borrowing as well as a favorable spread over what debt costs.

These are the results of The 17th Edition of the Emerging Trends in Real Estate Asia Pacific Report published by PwC. Urban Land Institute and PwC. It was published on November 24, 2014.

This report was based on a poll that included 233 property experts along with 101 meetings with investment professionals, developers, property company representatives, and broker for lenders.

The report overall showed a decrease in investor confidence amid worries about the increasing cost of borrowing, the rise in inflation, and a possible recession. Many investors suspending purchasing activities until projections of rate hikes across the globe are made more apparent.

“Rising rates of interest and the weakening of the global economy is starting to affect regional asset valuations and altering the way investors evaluate deals that are on the table,” says David Faulkner the ULI Asia Pacific’s president. ULI Asia Pacific.

The gloomy mood was evident in the 38% decrease in the volume of transactions in the third quarter of 2022 in the region to US$32.6 billion. It was the lowest volume in 3Q for the past decade in the region, according to the report.

Investors must take a cautious approach to buying new assets in some Asian markets and shift their attention away from traditional assets to a range of niches that have a better prospects according to the report and adds that this could include defensive havens as well as emerging-economy concepts.

The respondents to the survey of real estate professionals identified hotels, multifamily as well as senior living as well as logistics properties as safe refuges. In addition, properties that are considered to be defensive will have favorable characteristics like rent indexation, a shorter lease term, and consistent recurring income.