Singapore Real Estate

Two new Sembawang ECs pull in the crowds

Two executive condominium (EC) projects in Sembawang which hit the market recently are attracting keen buying interest, particularly Qingjian Realty's The Visionaire.  The 632-unit project, launched earlier this month, received 859 applications when e-applications closed on Sunday, Qingjian said in a statement yesterday.  The balloting and booking of units at The Visionaire is due on Saturday. Qingjian said prices of apartments will be unveiled on Thursday.  As a guide, it noted that the indicative prices will be consistent "with what the market expects for an EC, with prices for a standard three-bedroom unit ranging from $678,000 to $888,000".

Companies' Brief

Keppel's Q1 profit falls 42%

Net profit for Keppel Corporation slumped 42 per cent to S$210.6 million for the first quarter, on the back of a 38 per cent fall in revenue.  Its topline dropped to S$1.74 billion from S$2.81 billion, as higher revenue from the property division only partially offset reduced sales in the offshore and marine, infrastructure and investment divisions.  Revenue from the offshore and marine division plunged 58 per cent, or S$1.1 billion, to S$818 million, no thanks to lower work volume, deferment of certain projects, and suspension of the Sete Brasil contracts.

New acquisitions drive First Reit's Q1 growth, DPU up 2.4%

New acquisitions helped lift healthcare trust First Reit's (real estate investment trust's) distributable income by 6.2 per cent year-on-year to S$16.2 million for the first three months of the year.  In a filing to the local bourse on Monday, Bowsprit Capital Corporation Limited, the trust's manager, said this translates to a distribution per unit (DPU) of 2.11 Singapore cents in the first quarter, up 2.4 per cent year- on-year. This will be paid on May 30.  Based on an annualised DPU of 8.49 Singapore cents and closing price of S$1.23 on March 31, the trust maintained a healthy annualised distribution yield of 6.9 per cent, the manager said.

Views, Reviews & Forum

Data centres, logistics bright spots for 2016 industrial demand

Specialised industrial space such as data centres and logistics facilities will still see healthy demand this year, even as the rest of the industrial space sector suffers from falling rents and rising vacancies amid the weak manufacturing sector.  Rentals tracked by CBRE Research for factory and warehouse space fell for the third straight quarter in Q1 2016, recording 1.7 per cent and 2.3 per cent year-on-year declines respectively.  Leasing volume for factory and warehouse space also extended its downward trend in Q1.

Global Economy & Global Real Estate