Daily property news: Australia housing risks have abated; China warehouse holds potential

Parc Esta - sunken pool
Parc Esta - sunken pool

Puma to lease $25m Melbourne warehouse from Frasers

Frasers Property Australia has secured global sports brand Puma as a tenant in a new A$25m speculatively built warehouse in Melbourne’s south-east, highlighting the strong demand for logistics space from retailers. “Our strategy to build several speculative facilities in Braeside Industrial Estate has also been very successful in attracting ASX-listed and multinational companies seeking sustainable industrial warehouses,” said Frasers Property Australia general manager for commercial and industrial, Anthony Maugeri.

ST Telemedia Global Data Centres prices S$225m bonds due 2024 at 3.59%

ST Telemedia Global Data Centres (STT GDC), a Singapore-headquartered data centre provider, has priced its five-year S$225m senior unsecured bonds due 2024 at 3.59%. The bonds are being sold under STT GDC’s S$1.5b multicurrency debt issuance programme. Currently, STT GDC is also in a joint partnership with Frasers Property (Thailand) Public Company (FPT) to build a data centre in Bangkok. The data centre, worth over 7b baht (S$302m) in investments, is poised to be Thailand’s largest with a gross floor area of 60,000 sqm.

Chinese demand drives S’pore luxe apartments to hit 11-year high

Sales of Singapore flats worth at least S$10m (US$7.3m) have hit an 11-year high, fuelled by increased demand from Chinese millionaires seeking safe-haven assets, property consultants OrangeTee & Tie said. In the first 8 months of 2019, 68 condominium units in the city state were sold for S$10m and more, the highest tally since the corresponding period of 2008. Sales of such flats also exceeded the numbers racked up for each full year from 2011 to 2018, the consultants’ analysis of transaction data shows.

Luxury condo Cuscaden Reserve will provide quiet living amidst the bustle of the city

Luxury condominium Cuscaden Reserve, located in the Orchard area, started private viewings, which are by invitation only, last weekend. The joint bid of S$410m by 3 well-known luxury property developers for the coveted residential site in Cuscaden Road made headlines last year for smashing all records for a residential government land sale. Singapore’s SC Global Developments, along with Hong Kong-listed developers and hotel operators New World Development and Far East Consortium, trumped eight other bidders to win the 99-year leasehold site.

Projects with foreign buyer appeal

Chinese nationals continue to hog the limelight in Singapore with purchases of luxury penthouses at eye-popping prices. Beyond the prime districts, these foreign buyers are making their presence felt at new launches in the city fringe and suburban condominiums too. Foreigners have traditionally preferred to invest in the prime districts, but certain high-end projects are in greater demand.

Housing risks have ‘abated’: Regulators

The potential for risks to Australia’s financial stability from falling housing prices in Sydney and Melbourne has abated somewhat, with home values rising in recent months, the Council of Financial Regulators said on Mon in a quarterly statement. The council is a non-statutory coordinating body for Australia’s main financial regulatory agencies. Australia’s housing market has bounced back in the past couple of months after 2 years of downturn, with mortgage approvals and auction activities all showing an upturn. 

Developers rev up Logan project after state infrastructure deal

SX-listed developer Peet is set to release 1700 more housing lots in the Flagstone satellite city development in Logan as development accelerates in the area following a new A$1.2b Queensland government and Logan City Council infrastructure commitment. Logan, about 35km south of the Brisbane CBD, has long been one of the strongest south-east Queensland growth corridors.

CapitaLand gains big canvas for S’pore redevelopments from ASB purchase

Some folks may think that CapitaLand does not have many Singapore residential developments coming up – with only two projects currently. However, the property group has a much larger canvas for creating development opportunities at home in various asset classes, beyond residential, after its S$11b acquisition of Ascendas-Singbridge this year. In fact, one of the group’s priorities in Singapore is to rejuvenate its vintage properties at Science Park 1 – and it has begun to engage the authorities on this.

‘Underdeveloped’ warehousing in China could be an opportunity for real estate investors

The online retail boom in China is fueling demand for storage spaces — and real estate investors should start thinking about putting their money in warehouses, said the founder and CEO of Baring Private Equity Asia, Jean Eric Salata. The demand for warehouses has been driven in part by the rise of e-commerce in China. A report by research firm eMarketer predicted China would be the world’s top e-commerce market in 2019, with sales expected to hit US$1.935t.

Majority holder Frasers Property moves for delisting of GOLD via tender offer

The board of Frasers Property (Thailand) Plc has approved the submission of a letter of intent for a tender offer for 121,633,999 shares or 5.23% of the total issued and sold equities of Golden Land Property Development Plc (GOLD) to the Stock Exchange of Thailand (SET), with the intention of delisting the company from the Thai bourse, according to the company’s report to the stock exchange late on Fri.

The good news is also the bad news in Sydney’s property conundrum

For every sliver of good economic news these days, there is a fact, figure or piece of data that presages doom or gloom. In the property market, every piece of news is both good and bad, depending on where you stand and how you look at it. House prices were down in the Jun quarter, which is welcome news for those looking to buy if not for those keen to sell.

$90m project to link Sentosa’s north, south shores

One of Sentosa’s famous structures will be making way for a themed thoroughfare that will link its north and south shores. The demolition of the Merlion statue is part of long-term plans to reshape the resort island and the adjacent Pulau Brani into a premier leisure and tourism destination. Work to demolish the towering 37m statue, located in the heart of Sentosa, will begin by the year end, when construction on the A$90m Sentosa Sensoryscape project will commence.

Chinese property tycoon in London says Brexit making potential investors nervous

The man behind a £1.7b (US$2.1b) property development on the banks of the River Thames says the ongoing uncertainty surrounding Brexit is making his clients nervous about the future of London and Britain. Xu Weiping, chairman of developer Advanced Business Park said he had invested about £400m (US$499m) in the project since 2013 when he won the deal to turn the Royal Albert Dock into a new business hub.

Singha Estate’s CROSSROADS opens new chapter in tourism

Singha Estate has officially launched CROSSROADS, its highly-anticipated megaproject in the Maldives. The official inauguration on Sep19 of the largest integrated leisure and lifestyle destination in the country, is expected to open up a new market segment for local and international travellers. The megaproject highlights a strategic move by Singha Estate and is the company’s largest investment in a foreign country with Phase 1 comprising 2 resorts and The Marina @ CROSSROADS, worth a total of US$300m.

Developers launch resale campaigns after homebuyers stranded by LTV curbs

For homebuyers looking for lucrative deals, this might be the time to invest when many property firms are launching special promotion campaigns to sell residential projects that could not be transferred to previous customers who could not get loans due to the new loan-to-value regulations. According to a Nation survey, a number of property firms have launched campaigns to resell residential projects that had already been sold to customers who had to back out because they could not get loan approval from commercial banks.

Samyan Mitrtown opens array of services

SET-listed Golden Land Property Development yesterday opened its 9b baht Samyan Mitrtown mixed-use complex on Rama IV Road. The project, with a gross floor area of 222,000 sqm, consists of a condominium called Triple Y Residence, the Triple Y Hotel, Mitrtown Office Tower and the Samyan Mitrtown mall. Golden Land expects to attract 25,000 visitors a day, with 5,000 in the 24-hour zone, each spending 400 baht on average.

No big push yet for restructuring of Temasek’s portfolio: analysts

CLSA thinks a reorganisation of companies under state investment firm Temasek’s portfolio revitalise Singapore’s equity market in a recent study. But other industry watchers point out obstacles to the brokerage’s proposals, which range from the much-discussed merger of the offshore and marine businesses of Keppel Corp and Sembcorp Marine; to the potential spin-off of data centres from Singtel and Temasek unit ST Telemedia; mergers of property titans, CapitaLand with Mapletree Investments or Keppel Land; the consolidation of Reits under Temasek-linked sponsors; and the potential privatisation of SIA Engineering.

Property launches abandoned due to double-digit drops in revenue

Listed property firms have revised down their new resident project launches for the rest of this year, as the market is expected to continue to drop through 2019, Asia Plus Securities said on Fri. The company said 16 property listed companies in the Stock Exchange of Thailand (SET) had revised down their business plans to launch residential projects. The previous 290 projects worth 440b baht in this year have been down-sized to 237 projects worth 370b baht, a drop of 53 projects worth 70b baht.

Pressure Mounts on WeWork CEO Adam Neumann as Board Weighs Coup

The knives are out for WeWork CEO Adam Neumann. With the drama of a palace coup, some directors are considering a plan to encourage the brash co-founder of the once high-flying real estate startup to step down as chief executive, according to people familiar with the situation. Among them: Masayoshi Son, the founder of SoftBank Group, WeWork’s biggest investor, a person familiar said. Time is short and bankers are anxiously awaiting their next move. The company must complete its IPO before the end of the year to keep access to a crucial US$6b loan.

Do blue-chip suburbs have the best property price growth?

Some of the best opportunities for property buyers over the past five years have been outside sought-after blue-chip suburbs, new research shows. Although conventional wisdom suggests price growth is stronger in leafy, expensive neighbourhoods close to city centres, the property boom over recent years sent buyers flocking to the most affordable suburbs in some Australian cities. In Melbourne, prices in the less expensive suburbs increased the most since 2014, research from Domain found. Sydney saw the most significant price rises in very cheap and very expensive neighbourhoods, with mixed results in the mid-tier price ranges.