This comes after the first-quarter slowing in price rise, which some experts in Singapore attributed to a hasty response to the most recent set of property regulations put in place in December of last year.

According to flash estimates released by the Urban Redevelopment Authority recently, the total price of private homes increased by 3.2% in the second quarter, driven mostly by the non-landed private home sector, which increased by 3.3%. (July 1).

Following a slow period in the first quarter of this year, analysts said the pick-up in price rise in Singapore was mostly driven by strong buying demand for new condominium launches that were offered at higher benchmark prices.

According to Nicholas Mak, head of research and consultancy at ERA Realty, the price index has returned to a similar range as observed before the property cooling measures went into effect last December, down from the meager 0.7% price gain in the first quarter.

Chief Executive Officer of PropNex Realty, Ismail Gafoor said the price surge in Singapore was unexpected considering the several market risks, such as rising interest rates, inflation, and the upheaval in the stock market.

He added that this may testify to the strength of the property demand, which is predominantly supported by Singaporean buyers.

New launches on the city edge or the remainder of the central area, where home values recovered by 6% in the second quarter, reversing the decrease of 2.7% in the first quarter, were the main drivers of price rise for non-landed private residences.

Strong demand for recent releases like Piccadilly Grand in Farrer Park and Liv @ MB in Mountbatten, which were introduced in May, supported purchasing activity in the city edge sub-market.

With average prices of USD 2,182 per square foot at Piccadilly Grand and USD 2,409 per square foot at Liv @ MB, Gafoor highlighted that both projects experienced strong sales.

Both developments set new benchmark prices, according to Tricia Song, head of research for Southeast Asia at CBRE, as the developers stuck to their asking prices despite rising construction costs and a dearth of unsold inventory.

Despite recent cooling measures and headwinds from the global economy, Song said, “the good showing at the two projects might be indicative that investment and genuine demand and liquidity for well-located projects are still reasonably strong.”

Since selling prices at upcoming launches are likely to stay high and land prices are expected to stay stable, some buyers may also be locking in mortgage rates in advance of anticipated additional interest rate increases, the author continued.

According to some analysts, rising mortgage loan rates may slow down home sales in the long run. Price rise is also predicted to decelerate in the second half of the year as purchasers become more cautious about their purchases.

“Price rises could decrease in the coming months,” said Leonard Tay, head of research at Knight Frank Singapore.

“Rising interest rates will be a natural cooling mechanism in the second half of this year, reining in home purchasers’ purchasing power,” Leonard Tay added.

For planned debuts in the third quarter, like AMO Residence in Ang Mo Kio and Lentor Modern in Yio Chu Kang, analysts predict strong buyer interest.

The sales volume for these mass-market developments could increase in the coming quarter, according to Song of CBRE, “since we anticipate steady interest from upgraders and first-time home purchasers who are mostly unaffected by the latest round of cooling measures.”

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Vodafone is the eighth member to exit the Libra Association, the media reported. Previously, members such as eBay Visa, Mastercard, Mercado Pago, Stripe, Booking Holdings and PayPal left the Libra Association. 

Vodafone’s representative told the media that, “Vodafone Group has decided to withdraw from the Libra Association. We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion. We remain fully committed to that goal and feel that we can make the most contribution by focusing our efforts on M-Pesa. We will continue to monitor the development of the Libra Association and do not rule out the possibility of future cooperation.”

Members of the Libra Association were expected to invest $10 million to launch Libra. Other members including Lyft, Uber, Coinbase and Spotify are still a part of the association. 

Facebook’s debut in cryptocurrency has stoked fear and criticism among  central banks and regulators, stalling the project’s progress. They have expressed concerns on various platforms regarding privacy, money laundering, consumer protection and economic financial stability. 

However, Dante Disparte, head of policy and communications for the Libra Association, reassured that the association is working to ensure transparency and security in the Libra payment system. Last year, founding members of the Libra Association eBay and Strip dropped out on a neutral note. 

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CICT will be Singapore’s largest Reit, with a market capitalisation of $12.4 billion and a combined property value of $17 billion, the media reported. Under the proposed transaction, CMT will acquire all units of CCT in the form of cash and new CMT units.

CMT has 15 malls in Singapore, while CCT is the city-state’s largest owner of office spaces. CapitalLand owns nearly 28.48 percent of CMT and 29.37 percent of CCT, the media reported.

Each CCT unitholder will receive $0.259 in cash and 0.72 new CMT units at an issue price of $2.59 each. CapitaLand Group CEO Lee Chee Koon told the media that, “This merger, upon completion, will offer investors the options to invest in three global, developed market platforms in our core asset classes, and in three specialist emerging market platforms, to suit their specific preferences and risk appetite.”

After the merger completion. CICT might be able to undertake foreign acquisitions worth up to S$4.6 billion in developed markets. Its remaining capacity will be directed toward Singapore’s real estate sector.

Currently, CapitalLand ranks the ninth largest real estate investment manager globally and first in Asia. The real estate developer’s total market value is more than $42.2 billion. However, the proposed merger might not have any materialistic impact on CapitalLand’s net tangible assets.

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Jin Rui Oh, a Singapore-based director at United First Partners, told the media that, “Reits are going to be a go-to sector for the next year as consolidation will add another reason to buy alongside yields.” 

According to Oh, Singapore’s Reits will produce  12 percent to 15 percent returns next year. Investors will continue to seek opportunities in Reits as global banks cut  interest rates. This has already resulted in more than $12 trillion negative-yielding debt. 

This year, CapitalLand spent $6 billion to purchase two real estate units from Temasek. CapitalLand is one of Asia’s largest real estate companies, headquartered in Singapore. 

Also, Frasers Logistics and Industrial Trust has agreed to purchase Frasers Commercial Trust for $1.1 billion, Bloomberg reported. In total, Frasers Group will have nearly $5.7 billion in assets, becoming one among Singapore’s top 10 Reits. Logistics and industrial property comprise 65 percent of the firm’s portfolio, and the rest consists of commercial, office space, and business parks. The talks for the deal took place in January when CapitalLand signed the $6 billion deal with Temasek.

Last month, Quartz Capital Management in an open letter said that Sabana Shari’ah Compliant Industrial REIT and ESR-REIT should merge due to the overlapping investment issues between both trusts. 

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For nine consecutive years, Hong Kong has held its position as the world’s least affordable property market. The rising property prices could be one of the reasons for investors to look outside the special administrative region.

Singapore is also an expensive real estate destination because of addition costs while such as buyer’s stamp duty. Since July 2018, foreigners purchasing residential property in Singapore pay extra 20 percent stamp duty.

In the second quarter of 2019, Singapore property prices surged 1.5 percent quarter-on-quarter to reach a five-year high — even after the government introduced cooling measures in July 2018.

Hong Kong property investors purchased only 12 apartments in Singapore for the first half of the year compared to 32 purchases for the same period last year. The purchases between July to August gradually reduced to four as street protests intensified, observed ERA Research & Consultancy.

“People here tend to think there are only two cities in the world — Hong Kong and Singapore,” Alan Cheong, executive director at Savills told the media. “They think if people flee Hong Kong, they’ll all automatically come to Singapore. But everyone isn’t Li Ka-shing. Most are just ordinary salaried workers.”

The cost of a property in central Kuala Lumpur is estimated around $358 per square foot, while an apartment in Singapore would be $1,080 or more. Taiwan is appealing because of dominant Chinese population, however. Investors looking to shift from China or Asia would consider properties in the West.

Hong Kong property investors are also attracted to Malaysia’s property market because of its weather, good education, and cultural mix of both Asia and the West. That said, Singapore has an active resale market for professionals who can afford the market’s cost.

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