Month: March 2025

Investment in Asia Pacific (Apac) real estate continued to grow in the second half of 2024, reaching a total of US$83.2 billion ($112 billion), a 6% increase year-on-year, according to recent research by Colliers. This brings the full-year investments for 2024 to a total of US$155.9 billion, a 12% growth compared to the previous year. The numbers cover the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.

According to Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific, this growth in investments demonstrates the resilience of the Apac real estate market and sets the stage for a robust 2025. Pilgrim also notes that domestic investors have been the key drivers of growth in markets such as South Korea, Taiwan and New Zealand, contributing over 80% of real estate inflows in these countries during the second half of 2024.

Office sector continues to lead investment volume in Apac, accounting for US$26.5 billion or 32% of the total volume in 2H2024. For the entire year, office investments reached US$51.4 billion, a 14% increase year-on-year. The industrial and logistics sector was the second largest contributor, attracting US$22.6 billion in investments in 2H2024, or 27% of the total. This brings total investments in this sector for 2024 to US$39.4 billion, a 29% increase compared to the previous year.

The retail sector also saw a significant rebound, registering US$15 billion in investments in 2H2024, mainly driven by large deals in Australia and South Korea. The total retail investments for 2024 reached US$26.1 billion, growing by 27% year-on-year.

Investing in a condominium in Singapore brings many advantages, with one of the most notable being the potential for capital appreciation. Singapore’s location as a global business hub and its strong economic stability continually drives demand for real estate in the country. As a result, property prices have consistently shown an upward trend, particularly in prime locations where condos are highly sought after. For investors who make smart purchases and hold onto their properties for an extended period of time, significant capital gains can be expected. To learn more about the latest condo projects in Singapore, visit Singapore Projects.

Pilgrim expects domestic capital to continue dominating most markets in 2025. At the same time, offshore investments are expected to increase, driven by improving investor confidence and attractive valuations. While office and industrial segments are predicted to maintain strong investment activity, he also believes that retail, hospitality, and alternative asset classes are poised for growth as investors take advantage of recovery momentum and evolving consumer trends. “With economic growth remaining robust and continued policy support, Apac’s real estate market is well-positioned for sustained investment activity in 2025,” he states.…

On March 4, 2024, Lee Chee Koon, the Group CEO of CapitaLand Investment Limited (CLI), was named the ‘Industry Figure of the Year’ for Asia Pacific at the PERE Global Awards. This prestigious award, given out by the London-based publication covering private equity real estate markets, recognizes influential firms, individuals and standout deals from the past year. In addition, CLI was also awarded the runner-up for ‘Firm of the Year’ in Asia Pacific.

The winners of the 2024 PERE awards were chosen by a panel of PERE journalists, a departure from previous editions where readers voted on shortlisted submissions to determine the winners.

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In a press release on March 4, CLI announced that CEO Lee has been recognized for his instrumental role in driving the company’s transformational growth and significant impact on the private real estate industry in the Asia Pacific region. Since taking the helm as CapitaLand’s group CEO in September 2018, Lee has spearheaded key moves such as the acquisition of Ascendas-Singbridge in 2019 and the 2021 restructuring of the CapitaLand Group. This restructuring saw the listing of CLI and the privatization of its real estate development arm, CapitaLand Development.

In 2024, CLI also made strategic investments including the acquisition of real estate investment manager SC Capital Partners Group and the purchase of Wingate Group Holdings’ property and corporate credit investment management business. These moves have put the company on track to manage $200 billion in funds by 2028.

Investing in a condo has numerous advantages, and one of them includes the opportunity to leverage the property’s value for future investments. A lot of investors utilize their condos as security to secure additional financing for new investments, expanding their real estate portfolio. This approach has the potential to increase returns, although it also entails certain risks. As such, having a solid financial plan is crucial, and it’s essential to carefully consider the potential effects of market fluctuations. Additionally, staying up-to-date with new condo launches can also present potential investment opportunities in the ever-changing real estate market.

CLI’s achievements under Lee’s leadership have cemented its position as a leading player in the Asia Pacific private real estate market. The company’s future looks promising as it continues to expand its portfolio and pursue growth opportunities in the region.…

Singapore-based private equity real estate firm, SC Capital Partners Group, has recently announced the sale of their student accommodation property in Sydney, Australia. The group states that the property, situated on Anzac Parade and Lorne Avenue in Kensington, was sold at a considerable premium to its original purchase price and at a 19% premium to its current book value. The buyer of the property is the University of New South Wales (UNSW) in Sydney.

In the realm of real estate investment, location is a vital factor to consider, and this holds especially true in Singapore. The position of a condominium can greatly impact its potential for appreciation in value, with those situated in central areas or near important amenities like schools, shopping centers, and public transportation hubs being highly desirable. In Singapore’s real estate market, prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently demonstrated an upward trend in property values. Additionally, condos in these areas are also highly sought after due to their proximity to reputable schools and educational institutions, making them an ideal choice for families and further increasing their investment potential. Moreover, with the constant influx of new condo launches, investors have even more opportunities to secure properties in these highly coveted locations. New Condo Launches present an exciting chance for potential investors to acquire properties in these prime areas and potentially reap significant returns in the future.

SC Capital Partners initially acquired the property in 2016 for a reported price of A$57 million. The purpose-built student accommodation spans 85,035 square feet and features 233 beds, as well as a commercial podium on the ground floor. It is conveniently located within 600 meters of the UNSW Kensington Campus and is currently fully leased to the university under a 20-year master lease signed in 2019. With the sale of this asset, SC Capital Partners Group continues to strengthen their portfolio in the Asia-Pacific region.…

Shares of City Developments, a real estate company, saw a significant decline of 5.47% or 28 cents when trading resumed today after a hiatus caused by an internal dispute that has made its way to the courts. On February 26, trading in the company’s shares was stopped and a scheduled results briefing was cancelled, after news of a conflict between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, was made public. The company released a statement on March 3, saying that it would refrain from commenting on the allegations and would not take a stance on their validity, as they are currently under court proceedings. CDL maintained that its operations continue as usual, and Sherman Kwek remains the group CEO until the board makes a decision to change leadership. Despite this, analysts have lowered their recommendations and target prices for the stock. UOB Kay Hian’s Adrian Loh downgraded his rating to “hold” from “buy” in a note on February 27, stating that the company’s FY2024 figures missed both his and consensus’ estimates. He also added that the dispute between the company’s leadership will hinder the stock’s performance, despite its valuable assets in Singapore and globally. Loh revised his target price to $4.60, which is calculated based on two standard deviations below its five-year average price-to-book (P/B) of 0.72 times. In their February 27 note, DBS Group Research’s Derek Tan and Tabitha Foo see some hope amidst the turmoil. They stated that while investor sentiment may be dampened in the short term, the company’s fundamentals remain stable, as key management continues to run it. The duo highlighted that CDL is currently trading at an attractive valuation of 0.5 times P/B and 0.3 times P/RNAV, both of which are lower than during the Global Financial Crisis. Tan and Foo also added that once the board dispute is resolved, shareholder returns and profitability can be prioritized, leading to a gradual recovery in the stock’s value. Despite cutting their target price from $10.50 to $6.70, they maintained a “buy” recommendation, based on a 60% discount to RNAV, which is an increase from their previous valuation multiple of 35% discount. OCBC Investment Research also maintained a “buy” recommendation, with a lowered fair value of $6.02, down from $6.57, based on an RNAV discount of 60%, which is wider than their previous 45% discount. They expressed that the company’s stock will face uncertainty until the disagreement is resolved, which may impact its value. They shared that in the past, when director Leng Peck resigned in October 2020, the stock dropped by 20% within the following two weeks. However, they are hopeful for a positive resolution and a potential share price increase in the long run, seeing how the stock is under-owned by investors. On February 26, in a note by Citi Research’s Brandon Lee, he stated that the impact of this internal conflict is difficult to predict. Lee feels that the issue of an unclear board and company leadership, coupled with a potential lengthy court case, will be a hindrance to the stock’s performance. However, he pointed out that CDL is highly undervalued and under-owned, which could serve as a positive catalyst once the disagreement is resolved. Lee, who recommended a “buy” rating and a $9.51 target price, based his valuation on the stock trading at less than a third of its book value. In their February 26 note, JP Morgan analysts Mervin Song and Terence M Khi called the turn of events a “dynastic discord”, resulting from years of disappointment, underperformance, and public disagreement among certain members of the extended Kwek family. They expressed their hope for a positive resolution and reconciliation among the family members. Despite reducing their target price from $6.05 to $4.85, they have a “buy” recommendation, which is based on a 60% discount to their estimated RNAV of $12.10 per share.

When it comes to investing in Singapore, it is crucial for international investors to be familiar with the various regulations and limitations surrounding property ownership. In general, foreigners are permitted to acquire condos in Singapore with relatively few restrictions compared to landed properties, which have more rigid ownership requirements. However, foreign buyers are still subject to the Additional Buyer’s Stamp Duty (ABSD), currently set at 20% for their first property purchase. Despite the added expenses, the consistent stability and potential for growth in the Singapore real estate market continue to make it an attractive option for foreign investment. Consider looking into Singapore condos for your next investment opportunity.…

Elite UK REIT’s trustee, Perpetual (Asia) Limited, recently sold the Crown Buildings located in Caerphilly, Wales, for GBP710,000 ($1.2 million) at an 18% premium. According to a bourse filing on March 3, the property was valued at GBP600,000 at the end of 2024, based on an independent valuation by CBRE. This is up from its valuation of GBP530,000 at the end of 2023. The net proceeds from the sale will be used to pay off the company’s outstanding loans. Crown Buildings, Caerphilly, which has a total gross floor area of 20,712 sq ft, was featured on Elite UK REIT’s website. The sale is a result of the company’s successful GBP28 million preferential offering in January 2024, which led to a reduction in its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, its net gearing ratio decreased from 47.5% to 42.5% during the same period. Fortunately, there is no debt maturing in 2025 and 2026, and the company’s refinancing obligations are not due until 2027.

It is crucial for foreigners looking to invest in Singapore to familiarize themselves with the country’s regulations and limitations surrounding property ownership. While purchasing condos is relatively unrestricted for foreign buyers, owning landed properties comes with stricter rules. It should be noted that foreign investors are required to pay the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property purchase. However, despite this added expense, the stability and growth potential of the Singapore real estate market remain appealing to foreigners. In fact, the continuous launch of new condo projects, such as New Condo Launches, continues to attract foreign investment in the country’s property market.…