Singapore Economy
Singapore's economy grew by 2.9% in 2014 The Republic's economy grew by 2.9 per cent in 2014, while the growth forecast for 2015 has been maintained at 2.0 to 4.0 per cent, said MTI. Source: Channel News Asia / Singapore SINGAPORE: The Republic's economy grew by 2.9 per cent in 2014, announced the Ministry of Trade and Industry (MTI) in a media release on Tuesday (Feb 17). The growth forecast for 2015 has been maintained at 2.0 to 4.0 per cent, the ministry added. The economy grew 2.1 per cent on-year in Q4 2014. On a seasonally-adjusted basis, the economy expanded at a faster pace of 4.9 per cent, compared to 2.6 per cent in the previous quarter. Growth in the fourth quarter was largely due to the services industry, which as a whole, expanded by 3.1 per cent year on year. Within the industry, the finance and insurance segment was the fastest growing - at 10.3 per cent. However, the construction sector saw lacklustre growth at 0.7 per cent, down from 1.1 per cent in the previous quarter. Manufacturing went into contraction - shrinking by 1.3 per cent, compared with the 1.7 per cent growth in the previous quarter. UOB economist Francis Tan explained: "Due to the problems that we saw in terms of the external demand on a slower growth path, we saw that manufacturing did not do that well in the second, third, and fourth quarter of 2014. The key thing that was supporting our economy was really due to the services sector. "It grew at quite a constant pace at around 3 per cent. However, if you would like to think of it relatively to what we saw in 2013, the services sector in the whole of 2014 actually grew at half the pace back in 2013. That is one of the key reasons why we did not see a much better number than this 2.9 per cent that was presented by the MTI." 2015 OUTLOOK The global economic outlook has softened in recent months, and growth in 2015 is expected to be just marginally better than 2014, said MTI. Externally-oriented sectors such as manufacturing and wholesale trade are likely to face headwinds, the ministry added. This is due to the softened economic outlook, with the Eurozone expected to remain weak and China's growth expected to ease further due to sluggish real estate activities. The Singapore labour market is expected to remain tight, with low unemployment and rising vacancy rates, said MTI. Sectors such as construction, retail and food services may have their growth weighed down by labour constraints. However, other domestically-oriented sectors such as business services are expected to be resilient, said the ministry. - CNA/av http://www.channelnewsasia.com/news/singapore/singapore-s-economy-grew/1663690.html
Singapore’s economy grew by 2.9% in 2014Source: Today Online / Business SINGAPORE — The Republic’s economy grew by 2.9 per cent in 2014, announced the Ministry of Trade and Industry (MTI) in a media release today (Feb 17). The growth forecast for 2015 has been maintained at 2.0 to 4.0 per cent, the ministry added. The economy grew 2.1 per cent on-year in Q4 2014. On a seasonally-adjusted basis, the economy expanded at a faster pace of 4.9 per cent, compared to 2.6 per cent in the previous quarter. 2015 OUTLOOK The global economic outlook has softened in recent months, and growth in 2015 is expected to be just marginally better than 2014, said MTI. Externally-oriented sectors such as manufacturing and wholesale trade are likely to face headwinds, the ministry added. This is due to the softened economic outlook, with the Eurozone expected to remain weak and China’s growth expected to ease further due to sluggish real estate activities. The Singapore labour market is expected to remain tight, with low unemployment and rising vacancy rates, said MTI. Sectors such as construction, retail and food services may have their growth weighed down by labour constraints. However, other domestically-oriented sectors such as business services are expected to be resilient, said the ministry. -By Channel News Asia http://www.todayonline.com/singapore/singapores-economy-grew-29-2014 Household income gains ground in 2014 amid low inflation Source: Business Times / Government & Economy Median household income in Singapore rose at a much faster pace last year compared to 2013, said a Department of Statistics report on Monday. And the lift in income - especially after accounting for inflation - could be sustained this year given the negligible price increases, and as Singapore's labour market stays tight, economists noted. -By Jamie Lee
Household incomes rise amid labour crunch Source: Straits Times / Top of The News HOUSEHOLDS across all income groups earned more last year amid a tight labour market, although income inequality also crept up. In households with at least one person working, the median monthly income from work rose to $8,290 last year, up from $7,870 in 2013. That is a 5.3 per cent jump in nominal terms, or a 4.1 per cent rise in real terms once inflation is taken into account. The increase was even more apparent when household size was accounted for, with the median monthly household income per member up by 5.9 per cent in nominal terms and 4.7 per cent in real terms. The average monthly income for each member of a household in the top one-tenth income bracket jumped 6.7 per cent in real terms. Incomes in the bottom tenth of households rose 5.1 per cent, according to the Department of Statistics' annual Key Household Income Trends survey. Only income from employment and business was used. Interests, dividends and rents were not included. Economists said the continued tight labour market, coupled with economic growth and lower inflation, all played a part. "Top income earners traditionally have skill sets that are more marketable and, when you have a labour crunch, you can expect them to see relatively higher wage increases," said DBS economist Irvin Seah. Barclays economist Leong Wai Ho noted that most of the disinflation last year was due to lower oil prices, which probably benefited top earners more as they are more likely to drive. Income inequality crept up: The Gini coefficient rose to 0.464 from 0.463 in 2013. A lower Gini coefficient implies a more equal distribution of incomes. If government transfers and taxes are included, the Gini coefficient last year was 0.412, up from 0.409 in 2013. Last year's figure was the second- lowest on record since it was first calculated in 2000, with the 2013 figure being the lowest. Part of the reason for greater inequality last year was that government transfers were slightly lower than in 2013. They fell from $3,649 per household member to $3,372 last year. The higher payouts in 2013 stemmed from one-off transfers such as Medisave top-ups and property tax rebates. However, people living in one- and two-room HDB flats had more transfers last year than in 2013, receiving $9,026 per member as opposed to $8,839 in the previous year. OCBC economist Selena Ling said the inclusive growth theme could continue in this year's Budget, with more aid for those in the lower and sandwiched classes. -By Mok Fei Fei Singapore Real Estate
Temasek, JTC join hands to create urban development giant Source: Business Times / Real Estate Months of exclusive talks on merging four of Singapore's leading players in urban planning and development have concluded with Temasek Holdings and JTC Corporation inking a pact to seal that commitment. -By Lynette Khoo http://www.businesstimes.com.sg/real-estate/temasek-jtc-join-hands-to-create-urban-development-giant
JTC, Temasek seal deal to merge four subsidiaries Units will form one of region's largest integrated urban solutions providers Source: Straits Times / Money INDUSTRIAL landlord JTC Corporation and Singapore investment company Temasek have officially sealed their agreement to merge four of their subsidiaries into a single platform. This powerful new platform, worth $5 billion, will become one of the region's largest integrated urban solutions providers. The idea of merging JTC subsidiaries Ascendas and Jurong International Holdings (JIH) as well as Temasek units Surbana International Consultants and Singbridge Group was first flagged in September last year. After due diligence on both sides, the final partnership was formally announced by senior figures from both parties at a press conference yesterday. The new platform will be a 49:51 partnership between JTC and Temasek, with a total value of about $5 billion. Within the platform, which will be formed within the first half this year, the four companies will be organised into two arms. The companies are still finalising details of the merger, including the official names of the new entities. But the four companies should see minimal impact to their current business and operations, JTC and Temasek said. Ascendas and Singbridge will become the asset investment and holding arm, while Surbana and JIH will be the technical unit offering construction and engineering services. Singbridge chairman Wong Kan Seng will be chairman of the investment and holding unit, while current Singbridge executive director Miguel Ko will become the chief executive. Meanwhile, Surbana chairman Liew Mun Leong will chair the technical unit with Mr Wong Heang Fine as chief executive. The unique twin-chairman structure is to ensure a clear separation to avoid conflict of interests, and to allow the engineering and construction units to grow independently, Temasek enterprise development and Singapore head Dilhan Pillay Sandrasegara said during the press conference. The merger is complementary in nature and will position the companies for Asia's urbanisation boom, Mr Wong Kan Seng noted. "By 2025, 600 of the world's largest cities will generate about 60 per cent of global gross domestic product, and emerging cities will account for almost half of the world's growth," Mr Wong said. "As an integrated company, we will have better scale and deeper expertise to handle many large- scale and complex urban development projects." All four companies are already well-established players in urban, industrial and infrastructural development. They combine an extensive portfolio that includes the Guangzhou Knowledge City and Tianjin Eco-city projects in China, industrial park development in Singapore and India, as well as infrastructural consulting in the Middle East, among other things. Just last month, Surbana and JIH were appointed master planners for the development of the new capital city for India's Andhra Pradesh. Mr Liew said that the Surbana-JIH unit is set to grow its consultancy fees of $500 million currently to $1 billion to $1.5 billion in the next three to five years as a result of the merger, while doubling its combined headcount of 3,200 people. In a related development, CapitaLand yesterday announced that it is selling its 40 per cent stake in Surbana to Temasek subsidiary Arakan Investments for $104 million cash. Arakan will in turn sell its 60 per cent stake in CapitaLand Township Holdings to CapitaLand for $240 million. With this move, Surbana will be fully owned by Temasek. -By Wong Wei Han
JTC, Temasek units' merger to be complete by JuneThe merger between Ascendas, Singbridge Group, Jurong International and Surbana International Consultants will create an urban development entity worth an estimated S$5 billion.Source: Channel News Asia / Business SINGAPORE: A proposed merger of four urban solutions firms under industrial landlord JTC Corporation and investment company Temasek will go ahead - and is expected to be completed by June 2015. The tie-up between Ascendas, Singbridge Group, Jurong International and Surbana International Consultants will create an integrated platform for sustainable urban development to pursue large-scale and complex projects across the region. The combined entity will have an estimated value of S$5 billion. Temasek and JTC Corporation first announced in September 2014 that they were in negotiations to explore a merger of the four units. In a statement on Monday (Feb 16), Temasek said it will hold a 51 per cent stake in the new group, with JTC holding the rest. The group will be made up of two independent units. Ascendas and Singbridge will form the group's asset investment
and holding arm, which will originate, aggregate and provide urban solutions.
Singbridge chairman Wong Kan Seng will be the arm's chairman, with Singbridge
executive director Miguel Ko as chief executive. The second unit will comprise Surbana and Jurong International, and forms the group's building and engineering specialist services unit providing sustainable solutions through technology. Surbana Chairman Liew Mun Leong will be the unit's chairman, with Mr Wong Heang Fine as chief executive. Both have been jointly working on master planning the new capital city of Andhra Pradesh in India. The project covers an area about 10 times Singapore's size, in the Vijayawada-Guntar region in southern India. With the integration, the unit hopes to grow the portfolio of S$500 million it has handled in consultancy fees to more than S$1 billion in the coming years. "In city development, one just doesn't plan for just township and build the housing estates," said Mr Wong. "One will also have to look at the industrial activity as well. So by combining, we can actually do both. In the past - if you separate it out, it will be quite difficult. Now, under one organisation, the two teams can actually jointly pitch for these projects." Temasek and JTC said the integration of the firms will provide flexibility and nimbleness in going after projects across the entire urban development value chain. They added that current business and operations of the four operating subsidiaries will see minimal impact from the merger. - CNA/kk http://www.channelnewsasia.com/news/business/singapore/jtc-temasek-units-merger/1662080.html Developer sales surge 62% in Jan, thanks to more launches But sales figure of 372 units still 35% down y-o-y, and is the lowest for pre-CNY sales since Jan 2009Source: Business Times / Real Estate SINGAPORE developers sold 372 private homes in January, a 62 per cent improvement from the 230 units sold in the traditionally lull December period. But the increase was largely a function of greater supply, with Marine Blue at Marine Parade and Symphony Suites at Yishun making up the bulk of the launches. Last month's sales figure remained a 35 per cent drop from the 572 units moved in January 2014. It also fell far short of the 12-month sales average of 630 units, as cooling measures and loan curbs continue to cap demand. In fact, the latest numbers are the lowest pre-Chinese New Year sales since the 108 units sold in January 2009 amid the global financial crisis and recession. Of the total of 124 units in Marine Blue, 50 were launched for sale and 32 units were taken up at a median price of S$1,829 psf. At Symphony Suites, 180 of its 660 units were launched, and deals were closed for 54 at a median price of S$1,010 psf. This was despite the project being priced at the lower end of market expectations and being touted as the cheapest new condominium on the market currently. Including other projects, some 415 units were launched in all, nearly eight times that of the measly 53 units launched in December. The latest figures were released on Monday by the Urban Redevelopment Authority, based on monthly submissions of housing sales statistics by developers. Ong Teck Hui, national director, research & consultancy, at JLL, said that in a healthy market when buyer interest is strong, it wouldn't matter whether a project is launched close to Chinese New Year. "However, in a weak market, launching a new project close to festivities could be more challenging. Buyers who are already affected by poorer sentiments tend to be less interested during such periods." Consultants are now expecting a wave of relaunches and some renewed interest from the many units left unsold in prior launches. Desmond Sim, head, CBRE Research, Singapore & South East Asia, said: "There is some stirring in the market for projects which have been launched previously, and this is positive for managing the launched and unsold stock. "Possibly, it may be due to the preference of some buyers for projects which are nearing completion so that they can occupy the homes they bought within a shorter time frame. "This demand for existing projects bodes well for the market as it shows that the underlying demand for residential projects is still fairly strong. The pool of buyers now has a wider range of projects to choose from. More sales could be inked if pricing is more competitive." Christine Li, director and head of research at Cushman and Wakefield, added: "Any price cut of more than 10 per cent will excite the market, resulting in better sales in some of the re-launched properties." The above figures exclude executive condominiums (ECs), a public-private housing hybrid. Including ECs, developers sold 556 units last month, a 37 per cent increase from the 406 units sold in December. Compared to the 620 units sold a year ago, however, this represents a 10 per cent drop. The Amore was the only new EC launched in January. It sold 83 of its 378 units at a median price of S$795 psf. Including other previously launched projects, 184 EC units were sold in January. Sales at most EC launches in the past few months have been slow. "Three of the four ECs launched in November and December 2014 have only managed to achieve take-up rates of 17-30 per cent. This explains why recent tender bids for EC sites have fallen significantly, and also reflects an expectation of EC prices correcting," said JLL's Mr Ong. In January, the tender for the EC site at Anchorvale Crescent closed at a top bid of S$280 psf ppr, while in February, a site at Woodlands Avenue 12 received a top bid of S$278 psf ppr. R'ST Research director Ong Kah Seng said projects on these two sites may be launched at around S$720 psf. "Clearly, the 'sticky' S$800 psf selling price that developers have been hanging onto cannot be supported," he said. According to CBRE, the number of unsold ECs has risen 11 per cent month-on-month to hit 2,251 units in January. -By Lee Meixian http://www.businesstimes.com.sg/real-estate/developer-sales-surge-62-in-jan-thanks-to-more-launches
More new homes sold in Jan but volume still weak Source: Straits Times / Money HOME buying picked up the pace in January but volumes remain weak compared with a year ago. Buyers snapped up 372 units last month, up 62 per cent over the 230 units sold in December, the Urban Redevelopment Authority said yesterday. The uptick "was a function of supply", said experts, as developers put up 415 new units for sale last month - well up from 53 units in December. But the sales tally was still 35 per cent lower than for the same period a year earlier and under the monthly average of 610 units sold last year. Analysts say demand has been subdued because of a stalemate between buyers and sellers since tougher mortgage rules - the total debt servicing ratio (TDSR) - made it harder to obtain loans. Ms Christine Li, research head at Cushman & Wakefield, said: "Prices have not corrected in line with the reduced affordability of the buyers due to the TDSR." Last month's bestseller Symphony Suites, for instance, moved just 54 of 660 units in the month despite a median selling price of $1,010 per sq ft (psf), which was at the "lower end" of market expectations. Developers are mindful of strong headwinds in the market due to an impending interest rate hike as well as a deluge of new supply this year, said experts. Although they have timed their launches strategically to avoid undercutting from projects nearby, developers are likely to keep prices at new launches "elevated" after paying hefty sums for land in the past 11/2 years. Buying in the suburbs was strongest last month, accounting for 62 per cent of sales. City-fringe units made up 28 per cent, underpinned by CapitaLand's 124-unit project Marine Blue in East Coast Road, where 32 units were sold at a median price of $1,829 psf. City-centre homes accounted for 10 per cent. While new launches were subdued, demand picked up at some older projects. At Roxy-Pacific's 222-unit Trilive in Kovan - the third bestseller - 22 units were sold at a median of $1,562 psf, though it was launched in June last year. The developer said in November that it would reduce prices of selected units by about 8 per cent. Similarly, MCL Land's 696-unit Lakeville in Jurong - launched in April last year - moved 20 units at a median of $1,378 psf. This reflects an underlying demand for residential units, said Mr Desmond Sim, research head at CBRE Southeast Asia. "Buyers now have a wider range of projects to choose from; more sales could be inked if pricing is more competitive," he added. If executive condos (EC) are included, 556 units were sold last month. The Amore, a Punggol EC by Keong Hong Holdings, Master Contract Services and JBE Holdings, sold 83 units at $795 psf. -By Cheryl Ong http://www.straitstimes.com/premium/money/story/more-new-homes-sold-jan-volume-still-weak-20150217
Singapore private home sales up in JanuaryPrivate property developers sold 372 new private homes last month, up from the 230 units sold the previous month, according to the Urban Redevelopment Authority.Source: Channel News Asia / Singapore SINGAPORE: Sales of private homes in January rose from the previous month as developers launched more units. Excluding executive condominiums (ECs), developers sold 372 new units in January, up from the 230 units sold the previous month, data from the Urban Redevelopment Authority showed on Monday (Feb 16). Including ECs, 556 new units were sold last month, up from 406 units the previous month. The rise in sales came as developers launched more units, with 415 units launched in January, up from the 53 units launched in the previous month. - CNA/kk http://www.channelnewsasia.com/news/singapore/singapore-private-home/1661856.html KSH wins S$78m contract to build Singapore Chinese Cultural Centre Construction for the proposed 11-storey Singapore Chinese Cultural Centre at Shenton Way will start after Chinese New Year.Source: Channel News Asia / Singapore SINGAPORE: Construction and property group KSH Holdings said on Monday (Feb 16) its wholly-owned subsidiary, Kim Seng Heng Engineering Construction, has won a S$78.2 million contract to build the proposed 11-storey Singapore Chinese Cultural Centre at Shenton Way. The Singapore Chinese Cultural Centre will include an art gallery, a recital hall, a multi-purpose hall and a 530-seat auditorium, among other facilities. Activities such as arts and cultural performances, conferences and exhibitions will be held at the venue, located next to the Singapore Conference Hall. Construction is expected to start after Chinese New Year with completion within 89 weeks of commencement, KSH said in a statement. - CNA/ly http://www.channelnewsasia.com/news/singapore/ksh-wins-s-78m-contract/1663002.html Companies' Brief
CDL posts record quarterly earnings of S$384.9m Boost from sale of cashflows relating to Quayside Collection project; final dividends totalling 12 cents a shareSource: Business Times / Companies & Markets City Developments Limited (CDL) posted its best-ever quarterly result on the back of completion of the sale of cashflows of its novel profit participation security platform for its Quayside Collection project in Sentosa Cove. Net earnings for the fourth quarter ended Dec 31, 2014 rose 73.4 per cent to S$384.9 million from S$222 million in Q4 FY2013. Revenue climbed 7.4 per cent to S$846.9 million. -By Kalpana Rashiwala http://www.businesstimes.com.sg/companies-markets/cdl-posts-record-quarterly-earnings-of-s3849m
CDL clocks record Q4 net profit surge Source: Straits Times / Money CITY Developments (CDL) has defied rocky real estate market conditions here by unveiling a 73.4 per cent surge in fourth-quarter net profit to $384.9 million - an all-time quarterly record. One key factor was an earnings boost from the completion in December last year of the $1.5 billion investment instrument linked to the group's Sentosa Cove properties. Revenue for the quarter ended Dec 31 rose 7.4 per cent to $846.9 million. Net profit for the year ended Dec 31 was $769.6 million, up 12.2 per cent year on year. Full-year revenue jumped 17.1 per cent to $3.76 billion. Revenue for its property development segment dipped 2.8 per cent to $246.4 million for the quarter. But it rose by 32 per cent to $531.6 million for the year, mainly owing to full revenue recognition of Blossom Residences executive condominium, which obtained its temporary occupation permit in September last year. The group will be launching its 174-unit Gramercy Park in Grange Road and a 638-unit executive condominium in Canberra Drive in the coming months, subject to market conditions. Executive chairman Kwek Leng Beng said that while Singapore is facing headwinds, "it doesn't mean we should sit back and not adapt our strategies." "I believe that whatever the sector in Singapore, whatever business you are in, you need to generate sales... to keep the business going." As for the group's 124-unit New Futura condo in Leonie Hill, the group has won an extension to complete construction till the end of next year, with an additional two years to sell completed units. Mr Kwek said that it could be converting the 156-unit Nouvel 18 in Anderson Road, which is unsold, into serviced residences, subject to regulatory approval. Mr Kwek tipped the high-end market to turn around in one to two years, and take about three or four years to blossom. This should happen when "(Singapore) attracts more businesses to come, when some manpower curbs are relaxed... I would be shocked if it's five or six years down the road, otherwise this (the high-end market) would be 12 years in hibernation". CDL also acquired about $1.3 billion in assets in the United States, Britain, Italy, Japan and China last year. Chief executive officer Grant Kelley said it is comfortable deploying about $1 billion on global acquisitions annually. He said the group is "actively looking" at opportunities to create funds management platforms, but did not commit to doing a similar deal this year. "We think there's still investor appetite... We think the template of PPS (Profit Participating Security) for Sentosa is a good one which we should evaluate thoroughly to see if there is broader applicability in our portfolio." Earnings per share was 41.6 cents for the fourth quarter, up from 23.7 cents a year back. Net asset value rose to $9.25 as at Dec 31, up from $8.50 a year ago. CDL proposed a final dividend of 8 cents and an additional special final dividend of four cents per share. Its shares closed four cents lower at $10.26 yesterday. -By Rennie Whang http://www.straitstimes.com/premium/money/story/cdl-clocks-record-q4-net-profit-surge-20150217
CDL announces record profit for Q4 2014, and S$3.8b in full-year revenueCity Developments Limited has announced record profit after tax of S$384.9 million for Q4 2014, and its highest-ever revenue of S$3.8 billion in FY2014.Source: Channel News Asia / Business SINGAPORE: City Developments Limited (CDL) on Monday (Feb 16) announced record profit after tax of S$384.9 million for the fourth quarter of 2014 - a 73.4 per cent increase over the S$222 million notched in the same period in 2013. CDL attributed the increase in earnings to its property development segment which sold 1,378 units, including executive condominiums. At the same time, its hotel operations also saw strong performance - with the contribution of three newly-acquired hotels - Chelsea Harbour, Novotel New York Times Square and the Grand Hotel Palace Rome. CDL also achieved its highest-ever revenue of S$3.8 billion for FY2014, and more than S$1 billion in pre-tax profit for the same period. The property developer said the profit after tax was boosted by the completion of the sale of the present and future cashflows of the dividends and other shareholders’ distributions in its wholly-owned subsidiary, Cityview Place Holdings, which owns the W Singapore. CDL Group General Manager, Chia Ngiang Hong said: "About 80 per cent has been leased and the rental rates we are asking for is S$10 to S$12. There is no hurry to lease out the remaining 20 per cent because the demand is still quite strong." CDL's S$3.8 billion revenue for FY2014 was a 17.1 per cent increase over the previous financial year, while profit after tax and non-controlling interests also increased by 12.2 per cent to S$769.6 million. Property development was the main contributor to CDL's S$1 billion pre-tax profit, and hotel operations was the next highest, said the group. It also registered about S$1.3 billion in overseas acquisitions in 2014, in line with its diversification strategy, CDL said. “In 2014, we made very deliberate efforts to focus on CDL’s diversification strategy through geographic expansion and development of new investment platforms," said CDL Executive Chairman Kwek Leng Beng. "CDL has demonstrated the ability to be nimble and innovative, and with the fresh perspectives via new senior management appointments, we have continued to build value for shareholders.” CDL's board is recommending a special final ordinary dividend of 4 Singapore cents per share in addition to final ordinary dividend of 8 Singapore cents per share. Taking into account the special interim dividend of 4 Singapore cents paid in September 2014, the total dividends for 2014 amounted to 16 Singapore cents per share. - CNA/av/xk http://www.channelnewsasia.com/news/business/singapore/cdl-announces-record/1661236.html
CDL Q4 profit up 73.4%, at S$384.9 millionSource: Today Online / Business City Developments Limited (CDL) today (Feb 16) announced a record profit after tax of S$384.9 million for the fourth quarter ending December 31, 2014, up 73.4 per cent compared to a year ago - the highest since 1963. The gains were mainly from the sale of the present and future cashflows of the dividends and other shareholders’ distributions in its wholly-owned subsidiary, Cityview Place Holdings, which owns the W Singapore. Revenue for the fourth quarter of 2014 was at S$846.9 million, up by 7.4 per cent from a year earlier. CDL also posted its highest ever annual revenue of S$3.8 billion for the full year of 2014, up by 17.1 per cent from 2013. Profit for the full year was at S$769.6 million, up by 12.2 per cent on-year. The property developer maintained its top position as Singapore’s top selling private sector developer for 2014, selling 1,378 units including Executive Condominiums (EC) at about S$1.4 billion despite tough market conditions. “In 2014, we made very delibrate efforts to focus on CDL’s diversification strategy through geographic expansion and development of new investment platforms... CDL has demonstrated the ability to be nimble and innovative, and with the fresh perspectives via new senior management appointments, we have continued to build value for shareholders,” said Mr Kwek Leng Beng, CDL’s executive chairman. CDL said they expect headwinds to persist for the Singapore market due to the fragile global economy, however there will be opportunities present and will remain poised to build on their capabilities. CDL shares were down by 0.29 per cent, or 3 Singapore cents at S$10.27 half-an-hour after the market’s open this morning. -By Angela Teng http://www.todayonline.com/business/property/cdl-q4-profit-734-s3849-million Leng Beng sees high-end market recovery in 1-2 years Source: Business Times / Companies & Markets City Developments executive chairman Kwek Leng Beng sees light at the end of the tunnel for Singapore's high-end residential market. "I believe the high-end should turn around within a short period of one, two years; it should blossom three years or four years down the road. I would be shocked if it is five, six years or seven years down the road, then you'll have (a total) 12 years in hibernation," Mr Kwek said at the group's fourth-quarter results briefing on Monday. -By Kalpana Rashiwala ARA Q4 hit by higher expenses, but full-year profit up 18% Source: Business Times / Companies & Markets ARA Asset Management, a Reit and funds manager, on Monday said net profit for the fourth quarter fell 18 per cent amid higher expenses. Net profit for the three months ended Dec 31, 2014, stood at S$18.2 million, compared to S$22.1 million a year ago. This translated to earnings per share of 2.15 Singapore cents, down from 2.62 Singapore cents. -By Jamie Lee
ARA records lower Q4 net profit, revenue Source: Straits Times / Money LOWER acquisition, divestment and performance fees hit the fourth-quarter earnings of ARA Asset Management, said its manager yesterday. Net profit at the firm, which manages real estate investment trusts (Reits), fell 18 per cent to $18.2 million in the three months ending Dec 31 last year, compared with the same period a year ago. Acquisition, divestment and performance fees dropped 57 per cent to $5.1 million for the quarter. Total revenue for the quarter inched down 1 per cent to $43.2 million. ARA's recurrent management fees increased 9 per cent to $32.6 million, partly owing to higher Reit management fees from better asset performance. It noted that its properties under management have performed better after renovation and therefore gained in value. Net profit for the 12 months to Dec 31 last year rose 18 per cent to $87.5 million, while total revenue increased 23 per cent to $173 million. Acquisition, divestment and performance fees soared 68 per cent to $24.6 million, mainly owing to a $16.1 million performance fee from the ARA Harmony Fund. The fund, which achieved an internal rate of return of more than 27 per cent, owns the Suntec Singapore Convention and Exhibition Centre. Reit management fees from two privately held South Korean Reits also contributed to the increase. ARA bought ARA Korea last April. The size of the assets it manages was around $26.3 billion as at Dec 31. ARA group chief executive John Lim said in a statement: "I'm excited to be able to establish our footprint in South Korea and Australia, being two of our identified target markets, and we are working to grow these fund platforms over time by tapping the investment and capital-raising opportunities available." Fourth-quarter earnings per share was 2.15 cents, down from 2.62 cents a year earlier, while net asset value per share was 40.37 cents as at Dec 31, up from 32.84 cents a year ago. ARA proposed a final dividend of 2.7 cents a share, same as a year earlier, payable on May 19. ARA shares closed flat at $1.69 yesterday. -By Rachael Boon http://www.straitstimes.com/premium/money/story/ara-records-lower-q4-net-profit-revenue-20150217 Roxy-Pacific full-year profit up 5% at S$96.7m despite revenue fall Source: Business Times / Companies & Markets Roxy-pacific Holdings announced on Monday that it has achieved a 5 per cent increase in net profit to S$96.7 million for the full year ended Dec 31, 2014, from S$92.3 million in the previous year. This was despite a 14 per cent decline in revenue to S$317.8 million, from S$369 million, mainly due to lower revenue contribution from the group's property development segment. -By Malminderjit Singh Soilbuild reports 13% dip in '14 profits Source: Business Times / Companies & Markets Soilbuild Construction Group (Soilbuild) reported on Monday a net profit of S$20.9 million for the full year ended 31 December 2014, 13.1 per cent lower compared to the corresponding period a year ago.This was caused mainly by a S$2.6 million decrease in the share of profits of joint ventures following completion of the development project Solstice Business Centre undertaken by its joint venture in FY2013. -By Malminderjit Singh http://www.businesstimes.com.sg/companies-markets/soilbuild-reports-13-dip-in-14-profits Singapore's CapitaLand Q4 profit soars Source: Today Online / Singapore SINGAPORE, Feb 17 - Singapore's CapitaLand Ltd reported a 187 percent leap in fourth-quarter profit thanks to higher revaluation gains from investment properties and lower portfolio losses. CapitaLand, whose key markets are Singapore and China, reported a profit after tax and minority interest (PATMI) of S$409.4 million ($302 million) for the October-December quarter versus S$142.6 million a year-ago, when it incurred divestment losses. The company's revenue rose 67 percent to S$1.52 billion. ($1 = 1.3570 Singapore dollars) -By Aradhana Aravindan, REUTERS http://www.todayonline.com/singapore/singapores-capitaland-q4-profit-soars Global Economy & Global Real Estate
Chinese developers eye price hikes for new high-end projects But trend is not likely to spill over into broader market due to a glut of unsold homesSource: Business Times / Real Estate Kaisa says total debt now over US$10b, looking to restructure Source: Business Times / Real Estate Miami looks to China to sustain real estate growth Chinese buyers make up less than 5% of total but it is growingSource: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/miami-looks-to-china-to-sustain-real-estate-growth Kaisa dispute unearths debt skeletons Source: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/kaisa-dispute-unearths-debt-skeletons Asking prices for UK homes up in Feb Rising demand, due to fall in oil prices and higher wages, outstripping supplySource: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/asking-prices-for-uk-homes-up-in-feb Germany's No 2 housing landlord bids 980m euros for Austrian rival Source: Business Times / Real Estate Additional Articles of Interests - Local & Overseas Real Estate
Local & Overseas Real Estate - Full Article http://www.stproperty.sg/articles-property/singapore-property-news/c/11 http://business.asiaone.com/property/news |