Archive for category: Real Estate

The Singapore Residential Price Index (SRPI) rose by 1% per month in July, but it slowed down over that 1.2% m-o-m growth recorded in June Based on estimates from flash data that were released on the 29th of August.

Lentor Hills Residences condo price is equivalent to S$1 060 per square foot per plot ratio (psf ppr).

The SRPI which is monitored by the Institute of Real Estate and Urban Studies (IREUS) located at NUS. National University of Singapore (NUS) is a measure of price fluctuations of residential private properties located in Singapore. In particular, the index tracks 759 residential residential projects owned by private individuals which were completed between the month of October 2003 between September 2021 and October 2003.

Prices for properties which exclude small units and small units, across each of the Central and non-Central regions have seen m-o-m growth. The most desirable properties located in central areas of the Central region, which are located within Districts 1, 4, and 9-11 and 9 through 11, recorded a one% increase m-o-m during July, less then those who saw a 1.9% increase recorded in June. However, properties in non-Central areas were able to record an 1.1% increase m-o-m, more that those who experienced 0.8% growth logged the prior month.

In contrast, the prices of small properties were able to record an 0.6% increase m-o-m in July, in contrast with an increase of 0.1% 0.7% increase that was recorded in June. IREUS define small units as those with the floor area of 506 square feet or less.

The global hospitality giant Hilton is adding six brand new luxurious hotels to its portfolio within Asia Pacific (Apac).

Lentor Hills Residences by Guocoland Hong Leong district 20 property, is located in one of the most attractive areas exclusively set for residential.

Two hotels that are being built, inside the Chinese cities of Xi’an as well as Shanghai city, are set to operate operated under the Waldorf Astoria Hotels & Resorts brand. It will be making their Malaysian as well as Australian debuts with properties located in Kuala Lumpur and Sydney, respectively.

The remaining hotels include the Conrad Hotels & Resorts property in Nagoya, Japan, and an LXR Hotels & Resorts property in Bali, Indonesia, which will be the first hotel to fall under the brand name in Southeast Asia.

The addition of these hotels boosts Hilton’s supply of luxurious hotel rooms located in the Apac region by 20. The hotels are scheduled to be open between 2023-2026.

Clarence Tan, Hilton’s senior vice president of development, Asia Pacific, highlights that Hilton is the fastest-growing hotel group within the Asia Pacific region. “Our recent announcements and our strong pipeline show the trust the owners developers as well as investors put in Hilton to meet the growing demand and earn high return on investment in Apac’s top places,” he says.

In addition, Nils-Arne Schröder Hilton’s vice president of Luxury, Asia Pacific, notes the region’s premium travel market is expected to grow during the post-pandemic period. “The future of the luxury travel industry in Asia Pacific is more exciting than ever because our luxury brands continues to explore new markets and raise the standard of luxury hospitality to new levels,” he says.

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Telok Blangah House, a mixed-use freehold development located situated at 52 Telok Blangah Road, has been launched for collective sale through public tender at an estimated value of $92 millionwhich is less that the original $98million estimate when it first went up for auction in March.

It is a property comprises a 9-story building which is situated on the freehold site with a total area of 14,841 square feet. It is comprised of the levels for commercial buildings, and five levels of apartments for residential use. The site is classified for residential and commercial use in the new 2019 Master Plan, with an allowed net plot ratio of 3.5. This amounts to a maximum permitted Gross Floor Area (GFA) of 51,943 sq feet.

The guide price is now working into a land rate of $1,744 for each plot (psf ppr) with GFA bonus for balconies, says the exclusive market agent SRI Capital Market. SRI states that a development cost in the range of $2.36 million will be applicable to this bonus GFA only. The estimated price is based upon the site’s permitted gross plot ratio. assuming that 60% from the GFA is intended for residential purposes, and 40% is commercially-oriented.

According to SRI Based upon the split of 60:40 an upcoming mixed-use development could be able to house 34 new housing units and also 20.788 sq feet in commercial spaces.

Telok Blangah House is located on the other side of the road across the road from VivoCity and is approximately 200m to Harbourfront MRT Station on the Circle and North-East Lines. The site is sheltered and has a walkway that connects them to their station.

Low Choon Sin, managing partner of SRI Capital Market, says that the development planned for this site can benefit greatly from expansion of the Greater Southern Waterfront. “The site, which is situated just across Sentosa and will also benefit from the Sentosa Brani Master Plan that aims to steer the transformation of the two islands into a popular destination for tourists in the coming decades,” Low adds.

There are currently 415 condo units currently in an area of 500m from Telok Blangah House as per analysis conducted by EdgeProp LandLens. The most recent condo resales transactions within the region (excluding Telok Blangah Home) indicate units sold with an average price of $1,249 and $1,626 per square foot.

The tender process for public tenders to bid on Telok Blangah House will close on September 13th at 2.30pm.

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City Developments Limited (CDL) has posted record earnings , with net profits after tax and non-controlling interests (PATMI) at $1.13 billion during the first quarter of FY2022 which ended June.

The half-year’s earnings are an improvement of that $32.1 million deficit experienced in the first half of the year 2021. This is also the most PATMI recorded since the company’s beginning at the beginning of 1963.

The record-setting PATMI was mostly due to the divestment profits from the sale of CDL’s Millennium Hilton Seoul and its adjacent site site to the value of 1.1 trillion won ($1.25 billion) and the gains from deconsolidation of CDL Hospitality Trusts (CDLHT) as part of the group, resulting from the distribution of the form of specie.

It was sold off the Millennium Hilton Seoul and its adjacent site site has been completed by February. It was the time to deconsolidate CDLHT was completed in May.

In the first half of FY2022, the company’s revenue grew to 23.5% y-o-y to $1.47 billion, thanks to contributions from its property development segment in addition to the larger contribution from the operation segment for hotels.

The recovery in the hospitality sector, fueled by the opening of the border as well as the relaxed travel restrictions which saw CDL’s revenue per room (RevPAR) increase up 110.4% to $113.60. CDL’s gross operating margin (GOP) rose by 12 percentage points year-on-year increasing to 24.7% in the 1HFY2022.

In the first half of the year, the CDL’s property development division made up 41% of the overall revenues, supported by projects that are well-sold in Singapore like Amber Park and Irwell Hill Residences and overseas projects like Shenzhen Longgang Tusincere Tech Park and New Zealand land sales. This figure does not include revenues of joint venture (JV) projects like Boulevard 88 and CanningHill Piers that are equity-based.

Profit before tax for 1HFY2022 was $1.58 billion, which is up 163.4 times over $9.7 million reported in the first half of 2021 due to divestment profits from Millennium Hilton Seoul. Millennium Hilton Seoul and its land site. The hotel group realized an income before tax of $911.5 million, and an overall gain on the disposal $526.2 million, after deducting tax and transaction costs.

The company also realised the benefit in the amount of $492.4 million, which comprises negative goodwill, resulting from the accounting deconsolidation CDLHT within the group as an affiliate. The group will recognize its involvement with CDLHT by naming it an associate.

The three main segments of the group, property development, investment properties and hotel operations also saw growth y-o-y on a comparable basis.
Earnings per Share (EPS) during the 1HFY2022 was 118.3 cents on completely adjusted basis. The company’s Net Asset Value (NAV) per share was at $10.18.

At June 30 the cash equivalents and cash totaled $2.05 billion.

As a result, CDL has declared a special interim dividend of 12.0 cents per share for the 1HFY2022, to be paid on September 9.

“Notwithstanding the uncertainty in the macroeconomic environment The company remains hopeful in the likelihood that economic growth will rebound with greater strength. The record profits of the group during the first half of FY2022 has led to an enormous flow of cash due to timely asset divestments” is the executive chairman of CDL Kwek Leng Beng.

The CDL’s business is booming in its hotel operations segment Kwek predicts that the hospitality segment of the company to be an “star performer” throughout the remainder this year.
“As the Covid-19 issues diminish the hospitality portfolio of our company will prove to be an effective growth engine that will contribute significantly to the group’s ongoing earnings,” he adds.

He goes on to say: “Property investment, when considered from a medium- to long-term perspective of value appreciation is a proven insurance against the effects of inflation. Apart from creating a robust development pipeline and a strong pipeline of development, the company will maintain its attention on enhancing the recurring income streams we earn.”

Sherman Kwek, group CEO of CDL states, “Our expansion into the living industry over the last few years has begun to show results as we build the scale of our operations and expand. We have now apartment rental sites throughout all of the UK, Japan, Australia and the US as well as recently completed our first specially-designed student accommodation facility within the UK. Through the entire flu epidemic the recurring income assets have demonstrated a strong resilience, and the outlook remains optimistic.

“Armed with a strong balance sheet and a geographically diversifying portfolio, the company’s solid fundamentals will allow us to handle the volatility of the near term with determination and discipline. If the right time comes we will be able to extract benefits from our portfolios through restructuring, repositioning and divestment projects,” he adds. “Despite the current challenges our company is still geared towards growth , but we will be selective when we acquire. The company is constantly refining the Growth, Enhancement and Transformation (GET) strategy to speed up growth and ensure the future of our company.”

Shares of CDL traded 5 cents higher (or 0.61% up at $8.25 on the 10th of August.

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Koh Brothers Group has reported earnings of $5 million in the 1HFY2022 that ended in June. This is which is up by 151% over the previous year’s $2 million.
The revenue in the same time period increased by 13% year-over-year to $158.9 million because of higher revenue recognition from its real estate and construction business.

In addition, with an increase in construction activity due to the outbreak and the company’s report of an operating profit of $11.7 million, an increase of 43% year-over-year. The gross margin grew by 7.4% from 7.4% from 5.8% in the 1HFY2021.

Koh Brothers enjoyed other gains of $7.9 million in the sales of property as well as plant and equipment. The gain was partly offset by the less fair value gains from investments properties.

At the end of June the balance of cash and bank accounts were $103.9 million. Current ratio of 1.7x with a net gearing ratio of 0.8x.

Francis Koh, the company’s managing director and group CEO, says there’s been a slow recovery in construction activity from last year.

“We remain focused on increasing productivity through embracing the latest technology and innovations, as well as adopting cost discipline and financial management strategies to tackle challenges better due to an environment that is competitive, labor shortages, energy consumption and the cost for construction.” He says.

“We will continue to draw on our track record of success and know-how to bid for larger and more valuable construction projects, as demand for both private and public construction projects increases,” adds Koh.

The company anticipates for the industry of construction to “remain difficult” due to increased competition, disruptions to supply chains human resource issues, rising material and energy costs.

Koh says that the sale of the Van Holland residential project continues to “make progress”.
“As an established, niche boutique property developer, we will continue to prudently look for opportunities to develop unique ‘lifestyle-and-theme’ projects, either independently or through partnerships with experienced partners,” he says.

Koh Brothers shares closed at 17 cents on August 5 the 5th of August, in the range of 4.43%.