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lg:mr-3 lg:w-3/20"><img class="rounded-full" src="/assets-web2/leslie20yee-CqoSZZru.png" width="95" height="95" alt="Leslie Yee, Senior Correspondent"/></div><div class="w-full text-gray-850"><p class="mb-1 font-lct text-xl font-normal">“Property is a key economic pillar. Many of us are vested in the property market. Build knowledge on changing real estate trends.”</p><p class="font-public-sans text-base font-normal">Leslie Yee, Senior Correspondent</p></div></div></div><div><div data-testid="social-share" class="hidden lg:block border-t border-gray-250"><div class="flex flex-col items-center border-t border-gray-200 pt-2 lg:flex-row"><p class="mb-5 font-public-sans text-base font-normal lg:mb-0 lg:mr-2">Share this Newsletter</p><div class="flex items-center space-x-[6px]"><div class="py-1 rounded-full border border-black bg-white text-center text-gray-850 px-[10px]" data-testid="fb-share"><button class="react-share__ShareButton" style="background-color:transparent;border:none;padding:0;font:inherit;color:inherit;cursor:pointer"><svg aria-hidden="true" focusable="false" data-prefix="fab" data-icon="facebook-f" class="svg-inline--fa fa-facebook-f " role="img" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 320 512"><path fill="currentColor" d="M80 299.3V512H196V299.3h86.5l18-97.8H196V166.9c0-51.7 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data-testid="property-insight-newsletter-sample-header-component"><div class="m-0 box-border"><a href="/startups-tech/startups" target="_blank" rel="noopener noreferrer" class="block border-t-[5px] border-orange-500 text-center no-underline"><img class="banner-logo relative mx-auto block h-auto" src="/assets-web2/big-money-bt-logo-with-white-bg-CJp7_K_M.png" height="40" width="210" alt="BT Logo"/><img class="banner-logo relative mx-auto block h-auto py-6" src="/assets-web2/newsletter-property-insight-logo-Cv6LB0jR.png" height="78" width="255" alt="Newsletter Logo"/></a></div><div class="m-0 box-border text-center"><span class="font-arial text-base font-bold leading-4 tracking-[1px] text-gray-850">FRI, AUG 30, 2024</span></div></div><div class="m-0 mx-auto my-3 box-border w-full max-w-4xl p-0 py-2.5"><div class="flex flex-wrap items-center justify-center"><div class="pr-2"><img class="user_profile_img relative h-auto max-w-full rounded-full" src="/assets-web2/leslie20yee-CqoSZZru.png" width="70" height="70"/></div><div class="items-center pt-2"><span class="font-helvetica block text-sm font-bold leading-5 text-black">Leslie Yee</span><span class="font-helvetica block text-sm font-normal leading-5 text-black">Senior Correspondent</span><a class="byline-link font-helvetica text-sm font-normal leading-5 text-black no-underline" href="https://www.linkedin.com/in/leslie-yee-8aa0b532/" target="_blank" rel="noopener noreferrer"><img class="email-img inline h-5 w-5 align-middle" alt="author linkedin" 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width="20" height="20"/><div class="inline-block pl-1 align-middle">Leslie Yee</div></a></div></div></div><div class="mx-5 mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="today-highlights-wrapper px-5 pb-6"><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">This week in Property</h4><ul class="mb-2.5 list-disc pl-7 font-sans text-sm font-normal leading-5"><li class="pb-2">Subdued bidding for housing sites could persist if sales at new condo launches are tepid</li><li class="pb-2">A serviced residences sale and other deals</li><li class="pb-2">Hope springs for Reits as interest rate cuts beckon</li></ul></div><div class="mx-5 mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="front-copy w-full max-w-2xl px-5 text-left font-arial font-normal"><div class="greeting-text-wrapper "><div><img width="72" height="72" src="/assets-web2/questions-dbR_qXQU.png" alt="READ MORE" class="my-6 block h-auto max-w-full"/></div><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">On subdued housing land bids</h4><p class="mb-2.5 font-sans text-sm leading-6">Condo resale volumes in July jumped 32 per cent from the previous month, according to<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">flash estimates</a> from SRX and 99.co. Analysts attributed the rise to a lower base in June due to the school holiday season.</p><p class="mb-2.5 font-sans text-sm leading-6">Might some buyers in the private homes market be drawn to resale units because of the large gap in price per square foot (psf) between new and resale units? As it stands, sales of new homes excluding executive condos (ECs) in H1 were 44 per cent less than in the corresponding period last year.</p><p class="mb-2.5 font-sans text-sm leading-6">I argue in <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">The Level Ground</a> <!-- -->that the biggest worry facing housing developers is uncertain demand. If sales at new condo launches hover in the 20 per cent plus region, this can spell trouble for developers. For example, developers will see financing costs rise and face being hit with clawback in Additional Buyer’s Stamp Duty, which was remitted upfront, for failing to sell all housing inventory in a project within the prescribed timeline.</p><p class="mb-2.5 font-sans text-sm leading-6">New condo launches have taken a hiatus during the Chinese Hungry Ghost month, which runs from early August to early September. All eyes will be trained on how a flurry of new condo launches after the Hungry Ghost month fare. Should sales be tepid, expect continued subdued bidding for private housing sites.</p><p class="mb-2.5 font-sans text-sm leading-6">A segment where housing land bids are relatively stronger is that for EC plots. Last week, an<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">EC site in Tampines</a> Street 95, which can yield some 560 homes, was put up for sale by the Housing and Development Board (HDB). Market watchers expect around four to eight bids for this site, with estimates ranging between S$650 and S$750 psf per plot ratio.</p><p class="mb-2.5 font-sans text-sm leading-6">One area of possible weakness in the new homes market could be that of the popular suburban condo segment, where prices have surged since the Covid-pandemic.</p><p class="mb-2.5 font-sans text-sm leading-6">In a commentary on the recent<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">tightening of the loan-to-value limit on HDB loans</a>, I opine that some fizz will come off the high-flying HDB resale flat market. After all, the buying power of some HDB resale flat buyers will be curtailed. In turn, owners of HDB homes looking to sell their flats to fund the purchase of suburban condos could see their buying power affected too.</p></div><div class="mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="greeting-text-wrapper "><div><img width="72" height="72" src="/assets-web2/deals-NpoxSKdZ.png" alt="READ MORE" class="my-6 block h-auto max-w-full"/></div><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">A serviced residences deal brewing</h4><p class="mb-2.5 font-sans text-sm leading-6">Elsewhere in the housing market, the<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">Tanglin Hill bungalow</a> of convicted Hin Leong founder Lim Oon Kuin, also known as OK Lim, has been sold for S$39.2 million, or S$2,507 psf on the freehold land area of 15,636 square feet.</p><p class="mb-2.5 font-sans text-sm leading-6">My colleague Kalpana Rashiwala reported that a major serviced residences deal is brewing. Asset manager BlackRock is close to buying the 299-unit<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">Citadines Raffles Place</a>, which is within the CapitaSpring building on Market Street, for S$300 million or slightly over S$1 million per unit. The serviced residences are on levels nine to 16 of the 51-storey building, which sits on a site with over 56 years of land lease outstanding.</p><p class="mb-2.5 font-sans text-sm leading-6">A group led by KKR and one of Japan’s largest real estate companies reportedly put in a US$2 billion bid to acquire Shiodome City Center, a 43-storey office tower in Tokyo, Japan, owned by Singapore<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">sovereign wealth fund GIC</a>.</p><p class="mb-2.5 font-sans text-sm leading-6">Earlier this month, a deal was announced involving investment firm EQT Private Capital Asia buying New York-listed PropertyGuru Group, which started as an online property listings portal, for US$1.1 billion and taking the latter private.</p><p class="mb-2.5 font-sans text-sm leading-6">My colleague Joan Ng argues that amid the loss-making PropertyGuru reporting improving financials,<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">EQT could continue to cut expenses</a>, find efficiencies or add more businesses to PropertyGuru’s portfolio.</p></div><div class="mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="greeting-text-wrapper pb-6"><div><img width="72" height="72" src="/assets-web2/earnings-DiH576BW.png" alt="READ MORE" class="my-6 block h-auto max-w-full"/></div><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">Better days ahead for Reits</h4><p class="mb-2.5 font-sans text-sm leading-6">In the real estate investment trust (Reit) space, higher financing costs weighed down on the distributions of trusts in H1. However, market watchers expect interest rate cuts, which appear to be increasingly likely, to<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">turn the tide for Reits</a> in the second half of this year.</p><p class="mb-2.5 font-sans text-sm leading-6">Higher borrowing costs due to rising interest rates have adversely impacted the distribution of many Reits and dampened investor sentiment in the sector. Still, investors who want to ride the improving picture for interest-rate sensitive Reits will need to delve deep into the exposure of the various trusts given performance across property asset types and geographies may differ.</p><p class="mb-2.5 font-sans text-sm leading-6">My colleague Ben Paul cautions that investors should not lose sight of the <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">underlying fundamentals</a> <!-- -->of various Reits, and the risk of more fundraising and acquisitions.</p><p class="mb-2.5 font-sans text-sm leading-6">Meanwhile, property developer<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">Oxley Holdings</a> said that it expects to post a net loss for both the second half and full year ended-June. The group attributed this to impairment losses, finance costs, and lower revenue recognised from its property development projects.</p><p class="mb-2.5 font-sans text-sm leading-6">Overseas, sales of new<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">US single-family homes</a> rose more than expected in July as a drop in mortgage rates boosted demand.</p><p class="mb-2.5 font-sans text-sm leading-6">In the US, sales commission could be around 5 per cent to 6 per cent of the transacted price of a home. Maybe, home sellers can pocket substantial savings by<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">not hiring a real estate agent</a> <!-- -->and lining up a lawyer instead to do the deal closing.</p><p class="mb-2.5 font-sans text-sm leading-6">At home, could a case be made over time for the role of the agent in housing transactions to be done away with, especially as technology advances?</p><p class="mb-2.5 font-sans text-sm font-bold italic leading-6">Will lower interest rates spur more bullish housing land bids? Let me know your thoughts at<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">lyee@sph.com.sg</a></p></div></div><div class="mx-auto my-6 flex max-w-[300px] justify-center py-[60px]"><a class="no-underline" rel="noopener noreferrer" href="/newsletter/sign-up" target="_blank"><img src="/assets-web2/circulation_banner-NEo8sPFK.gif" alt="Circulation Banner" width="300" height="180" class="block h-auto max-w-full"/></a></div><div class="mx-5 pb-6 pl-0"><h5 class="box-border border-gray-250 pt-1 font-pullQuote text-4xl font-normal leading-6 text-orange-500">Top reads this week</h5></div><div><div data-id="PropertyStory0" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/opinion-features/subdued-bidding-housing-sites-will-persist-if-sales-new-condo-launches-are-tepid" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">1</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">Subdued bidding for housing sites will persist if sales at new condo launches are tepid</div></a></div><div data-id="PropertyStory1" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/opinion-features/tighter-hdb-loan-limit-will-cool-resale-flat-prices-choice-units-should-still-see-firm-demand" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">2</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">Tighter HDB loan limit will cool resale flat prices; choice units should still see firm demand</div></a></div><div data-id="PropertyStory2" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/property/blackrock-close-buying-299-unit-citadines-raffles-place-s300-million" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">3</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">BlackRock close to buying 299-unit Citadines Raffles Place for S$300 million</div></a></div><div data-id="PropertyStory3" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/companies-markets/s-reit-dpus-weighed-down-higher-interest-rates-h1-tide-turn-h2" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">4</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">S-Reit DPUs weighed down by higher interest rates in H1, but tide to turn in H2</div></a></div><div data-id="PropertyStory4" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/opinion-features/new-dawn-s-reits-fed-rate-cuts-get-underway" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">5</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">New dawn for S-Reits as Fed rate cuts get underway</div></a></div></div><div class="border-t-[3px] border-t-gray-250 p-5"><p class="mb-2.5 font-times text-base leading-6">Did you receive this newsletter from someone?</p><p class="mb-2.5 font-times text-base leading-6"><a href="/newsletter/sign-up" class="font-bold text-orange-500 underline">Sign up here</a> to get the latest updates sent right to your inbox.</p></div><div class="front-copy mx-auto max-w-[800px] border-collapse p-0"><div class="border-t-[3px] border-gray-250 px-5 pb-6"></div><div class="mx-auto flex 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condo launch nets better-than-average take-up</a><span class="relative hidden pl-4 text-base leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:inline lg:pl-4"><span class="font-public-sans text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></p><span class="relative block pb-4 pt-3 text-xs leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:hidden"><span class="font-poppins text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></div></div><div class="_createTime_d4ajx_101 truncate uppercase capitalize hidden font-poppins text-xs font-normal text-gray-550 lg:block" data-testid="create-time-component"></div></div></div><div data-testid="newsletter-post" class="mb-2 border-b-2 border-gray-250 pt-2 pb-3 lg:pt-3"><div class="flex flex-row justify-between"><div class="flex w-full flex-col lg:w-2/3 lg:flex-row"><div><div class="block font-poppins text-xs font-normal text-gray-550 lg:hidden"><div class="_createTime_d4ajx_101 truncate uppercase capitalize block font-poppins text-xs font-normal text-gray-550 lg:hidden" data-testid="create-time-component"></div></div><p class="mb-0 pr-2 font-lct text-xl font-bold"><a href="/property/what-next-jurong-lake-district-plan" target="_blank" class="hover:underline" rel="noreferrer">What next for the Jurong Lake District plan?</a><span class="relative hidden pl-4 text-base leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:inline lg:pl-4"><span class="font-public-sans text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></p><span class="relative block pb-4 pt-3 text-xs leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:hidden"><span class="font-poppins text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></div></div><div class="_createTime_d4ajx_101 truncate uppercase capitalize hidden font-poppins text-xs font-normal text-gray-550 lg:block" data-testid="create-time-component"></div></div></div><div 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data-testid="create-time-component"></div></div><p class="mb-0 pr-2 font-lct text-xl font-bold"><a href="/property/private-homes-will-land-bidding-and-new-home-buying-be-subdued" target="_blank" class="hover:underline" rel="noreferrer">Private homes: Will land bidding and new home buying be subdued?</a><span class="relative hidden pl-4 text-base leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:inline lg:pl-4"><span class="font-public-sans text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></p><span class="relative block pb-4 pt-3 text-xs leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:hidden"><span class="font-poppins text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></div></div><div class="_createTime_d4ajx_101 truncate uppercase capitalize hidden font-poppins text-xs font-normal text-gray-550 lg:block" data-testid="create-time-component"></div></div></div><div data-testid="newsletter-post" class="pb-3 lg:pt-3"><div class="flex flex-row justify-between"><div class="flex w-full flex-col lg:w-2/3 lg:flex-row"><div><div class="block font-poppins text-xs font-normal text-gray-550 lg:hidden"><div class="_createTime_d4ajx_101 truncate uppercase capitalize block font-poppins text-xs font-normal text-gray-550 lg:hidden" data-testid="create-time-component"></div></div><p class="mb-0 pr-2 font-lct text-xl font-bold"><a href="/property/very-public-problem-rising-hdb-prices" target="_blank" class="hover:underline" rel="noreferrer">The very public problem of rising HDB prices</a><span class="relative hidden pl-4 text-base leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:inline lg:pl-4"><span class="font-public-sans text-4xs font-normal uppercase text-gray-900">Subscribers</span></span></p><span class="relative block pb-4 pt-3 text-xs leading-[.3] text-orange-300 before:content-[&#x27;\25CF&#x27;] lg:hidden"><span class="font-poppins text-4xs font-normal uppercase 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target="_blank" rel="noopener noreferrer" class="block border-t-[5px] border-orange-500 text-center no-underline"><img class="banner-logo relative mx-auto block h-auto" src="/assets-web2/big-money-bt-logo-with-white-bg-CJp7_K_M.png" height="40" width="210" alt="BT Logo"/><img class="banner-logo relative mx-auto block h-auto py-6" src="/assets-web2/newsletter-property-insight-logo-Cv6LB0jR.png" height="78" width="255" alt="Newsletter Logo"/></a></div><div class="m-0 box-border text-center"><span class="font-arial text-base font-bold leading-4 tracking-[1px] text-gray-850">FRI, AUG 30, 2024</span></div></div><div class="m-0 mx-auto my-3 box-border w-full max-w-4xl p-0 py-2.5"><div class="flex flex-wrap items-center justify-center"><div class="pr-2"><img class="user_profile_img relative h-auto max-w-full rounded-full" src="/assets-web2/leslie20yee-CqoSZZru.png" width="70" height="70"/></div><div class="items-center pt-2"><span class="font-helvetica block text-sm font-bold leading-5 text-black">Leslie Yee</span><span class="font-helvetica block text-sm font-normal leading-5 text-black">Senior Correspondent</span><a class="byline-link font-helvetica text-sm font-normal leading-5 text-black no-underline" href="https://www.linkedin.com/in/leslie-yee-8aa0b532/" target="_blank" rel="noopener noreferrer"><img class="email-img inline h-5 w-5 align-middle" alt="author linkedin" src="data:image/png;base64,AAAAHGZ0eXBhdmlmAAAAAGF2aWZtaWYxbWlhZgAAAZhtZXRhAAAAAAAAACFoZGxyAAAAAAAAAABwaWN0AAAAAAAAAAAAAAAAAAAAAA5waXRtAAAAAAABAAAANGlsb2MAAAAAREAAAgACAAAAAAG8AAEAAAAAAAADmQABAAAAAAVVAAEAAAAAAAAGwQAAADhpaW5mAAAAAAACAAAAFWluZmUCAAAAAAEAAGF2MDEAAAAAFWluZmUCAAAAAAIAAGF2MDEAAAAA12lwcnAAAACxaXBjbwAAABNjb2xybmNseAABAA0ABoAAAAAMYXYxQ4EAHAAAAAAUaXNwZQAAAAAAAAA8AAAAPAAAAA5waXhpAAAAAAEIAAAAOGF1eEMAAAAAdXJuOm1wZWc6bXBlZ0I6Y2ljcDpzeXN0ZW1zOmF1eGlsaWFyeTphbHBoYQAAAAAMYXYxQ4EgAgAAAAAUaXNwZQAAAAAAAAA8AAAAPAAAABBwaXhpAAAAAAMICAgAAAAeaXBtYQAAAAAAAAACAAEEAYYHCAACBIIDBIUAAAAaaXJlZgAAAAAAAAAOYXV4bAACAAEAAQAACmJtZGF0EgAKBhgVe+2FQDKMBxQADDEA3UuSBcgG5RXz95JK4aBgcfBQ95H0Lyhe/9iQdIT+JNKs60M8gCuMmgg64F2Ztpnp3Wn/rGYOvGfPmUAbsrCp6jyIBWz1NrmSY86ChCqYNaorANJ9t5bdK4fcGnoh5m1cWdwOlqsgGySMzkQoYir1P///////hFSKJVsQYXqXmpLG4IZyFckKitSaAAonbuHOIqg+1X3TwI07hgvBgHzUyZhxya4/XCSAfUlMH//9K5w2JRyLBukQu7UNEuHrYmyig8hjPxh54ajx9rYaAAoUWv57YlYt892Y/iqJr8DmPVOw6YvPNwIV//sUamlGscO+Uojs8lLwvWMXrB0qI0hiRMX0c4y2nMbjVJ/qwwzT4vtnqFU0te0n5MwrGSDzcayigRlU1mqbByOebzaYYoBUS0RLfr6lF8xs85eE2DB2JIMo5uDCd5ub51XjUi9B+6KtzhSo+VBn5Yf85BqYQwm6Xbw5VM2+En0CUWm3m+zkpalJHipTLw5CcxDDI0tjCk8py8/T45By1pSsgaOqitwOsh/AKmyeIV5bEVzoG0njEdBV22QzLiV4yJWkVRGr/UWPmXyTLeOkNkWCeLkzhKN2caeZqDpjkYmzv2Hg7C9xiW6TPXTV9oyh7O/Eu/4oLyVVMYCoB3SUTcSZlOWFiMzyn61MxAn11SRuHXGfdkiAf2GpFZb8x1zeYfEo05RP123/hxs9fvS4PDWW2PbUbB+/wXYXWEw5CfdOvu6lUg1EwVzGJ/gm2yQJiiu8qrtNxpFCwkW9U3YczhUKSxT2LtTvbAbJ/MiSAdEknWJfnY5dT17Lf6rNcm9SqfZHYsd5WcIi6ONpoftTI+M+SKkMng1AQoi0zq8SmjFcOqWK9kez1uAtCb/3mZ+279av7NsXI4+ZnGp8bKx0aOLctkJgCbzygmkZ1SGXPiyYcbvA9q1cE9pGs+YxTlo78Yn+qc51jkqWjyuVUhjpRGxW6ky14+xCId20RqJkUp1qgsFzoAIk97KTacqqQHZhCI8S7TDLO5mxn68kPB0H9G/BHAfVwreLIPN8VzUahnlSOq1a/7uWiEJSDmDq4C8YpCLz7MfQlUdtz2u4/31gbYbyJNBP/BAyuXe/lP1pViZloWQ7wvSHZg4mP76kxuOVyK5g5RFulKQwTfN2W1jkv3LcffuXZUg7PS7jN7AKzq8rtcXCHCQrDBeHoy1LoWswEgAKCTgVe+2EBDQaQDKxDRQAAwwwxADdXLtjKeEz0S4FTsg468TpFl2Kkb9xYkg3Aop/chjwK1PHwdho2wuC9HIbYk0HnIuZ/MTskChseSEEkUPc51kTXf134NVkdA6Myh+olFu1lHe+9h0SX0vssrfaM9kb7uLucVPG88AdXgTT97cJTZxozneMlqf4e6cqEIflgzt6LekXyBGV1zC77n6U9j2jKw2udc95hlmYpJRhjrWSzyO7HUX3UaiwOsHTVRuLLk0kszdXVDxqVof+avz8KKOOm5ERHsHw2pVm15DcwvR9nREg5IMs/zY/YnncEaUiit4ISBQQkaqeaLhX1QLSUz4f2xyntoCe4Hc51N75Ld/QcGOZyHa340IMChApT+60V6bXsBtKckCbSxwYsAYhsQbDyoXfFXNrM1TnI3i1m54syJdoRMm2jIEGgTxv8dZx3drHRQ1C6Lpq2H7pH51RmbLvrfN5xXkj3rGXr8AwfEHFIFsZhzzaKWtO8sXtWsCdg60imZYAlGlF82woYXNIZeQ+DnWcCSTQJ7qRhBWcedtuU49TbCDbQyHw01fnSgOnCqXUuLgwRL3AvHLtnnKd5KYaxQ4pqevC2SZIqzAx9iENqR+qimuSVvAiQH2ZzOnQ3gIBZtzUKsyNWt0to6Thy+C+PqDdHnDnDTxpyvdwc+noGm4NXOSy+PwloQu2hYihDQ5G91XErFNY+CzyvJZvO3gnyPOZPZs7+Q6jUyycL4dBs2EQ9vg2R3UAFj/3KGXHGtQwyOJjk5SCct/amrU2EfBMHSZUoH4eAouK9zM5ndLB/h9LMs01Nf/7btiPLXcwAG6SNkDxgPKrDiewg8FAMMLtZtBlwBA1Af8j0C6xLmOWuk8iqVkaaOtPsSC8xLgMq8+kS4BNt0/urYoP4uFBqkX/Bg72QM9V+K4vHZtu3Vg6td6NWpCvE75dTPlOtaTFFJsRjVDD3O/ge9JhIWvb3w2DSbkaNjwx0oTYm/zjLu5x31VWXW5hZzKQDbkP1q9YE5DAzYH6kSM+EJSi2bGe+IKW1vfUhsjEGKTAQUUGBXD5N7EIJ1BwHwYVVHgL784BopUq4zilKR9CxMy2USO64+UV23R6RdO6+pToAP8Db28lk3nP6v3hj2jl5ti3NjYZ3/KdqRzRIj+HNjq7xyxNHE+LyU3HP3HhXVsADXYMlzzqZ3cQXNc/O5E1HqVZFCjmcDa8jK0VoQ3De0Fdpy9EnZc0w0GS/CRyWLpoyhyFeYzy5Xxxgo/Xm0/yZHdmO0a8s8pbNUzVpm31rlFJgRcTYtroF9D/aIM01e2JQ+nYNK6E1ii4dsNt1d1xLTnsLfTiHVtaS6B62Lsdo1GYf9HS6bGuuNadGrZxyJobjP8VWkPj/uTxg3/7oLE7ZfhkLOFVe2zNDBqvvjh4SrP9JYrhfrhxrBUjqYBesQ3fdbfUELK2lSgn/YKNZRFb/NUlTOy93Zt54y0DQkcxS92a8ybQXsLoZhWVcLxZG40GA0OVG9+XWmeojUZyA6Hd93xt12wAt/zN9HH7xZBrdYLcC90YT7Sl0PiIMgl2stRm4vyNg1I5czopbdakkVa5ewyJi4BQFSXc5An15DTRs0aO8YxPlElZyTKY6f3SWtWB7oKFtSq5PeJa5dLDZdLp/Bfp8IzRsKqVaP0y6bojmAnTKP51AUD/gxeKtlSdCEmPt8bXsJ+nrdUgpDMu7UVHIv2W4y7bNqkUiDAvseCr2FpMaImgy04JI8Hsd4UQthJPU0mmkCYwR0ehH698aLxy135/ZM7IpFwLiT2sBwdOLkD4/0FplcuxrdSolaIdn+7a0OoUBviX3c3OFU2WK7SFPxWQpBIYLKYV1qS6nNahF5MkO/gzFH0JeYjBREIgaqs5b21JhHR+7Yw35gyMFKaS6MQ/iLMo0DkRwmS5MAXpwbhw1BgCbVdUZ/nDZak5XtLj1VaA49haN8pTXtOevSZKL5IlfTDEIh4j+GKJ4h0SkuFoVHzMJItIfREJ1pKow5LaoTgfl5Aj92ffHdF8DOyY9JJQQjAB3F6RKVjKY4jsL3uZUKYvIxNj93zdb4KGF0qVkXR8O8t/WWPcMRiTaFwTlPIvo/sEf5gZuj5KC+JeeTPe7S2QaOylyIrViR8qY05rc+u9lD6XIs99MvUUscoKBj7Asd2pOgmJH3dfx7ksYiV5RQ/X4LUaLQTLzWhkwrxhFA/xvTDbvi9tc86MS6Pv2Gv1NuwBmj/po3W9yXxbqDLPd2m/rAgaHixFiZvB1hlbSKVb+XxGbivioAO7HoBeWMuyMA==" width="20" height="20"/><div class="inline-block pl-1 align-middle">Leslie Yee</div></a></div></div></div><div class="mx-5 mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="today-highlights-wrapper px-5 pb-6"><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">This week in Property</h4><ul class="mb-2.5 list-disc pl-7 font-sans text-sm font-normal leading-5"><li class="pb-2">Subdued bidding for housing sites could persist if sales at new condo launches are tepid</li><li class="pb-2">A serviced residences sale and other deals</li><li class="pb-2">Hope springs for Reits as interest rate cuts beckon</li></ul></div><div class="mx-5 mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="front-copy w-full max-w-2xl px-5 text-left font-arial font-normal"><div class="greeting-text-wrapper "><div><img width="72" height="72" src="/assets-web2/questions-dbR_qXQU.png" alt="READ MORE" class="my-6 block h-auto max-w-full"/></div><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">On subdued housing land bids</h4><p class="mb-2.5 font-sans text-sm leading-6">Condo resale volumes in July jumped 32 per cent from the previous month, according to<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">flash estimates</a> from SRX and 99.co. Analysts attributed the rise to a lower base in June due to the school holiday season.</p><p class="mb-2.5 font-sans text-sm leading-6">Might some buyers in the private homes market be drawn to resale units because of the large gap in price per square foot (psf) between new and resale units? As it stands, sales of new homes excluding executive condos (ECs) in H1 were 44 per cent less than in the corresponding period last year.</p><p class="mb-2.5 font-sans text-sm leading-6">I argue in <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">The Level Ground</a> <!-- -->that the biggest worry facing housing developers is uncertain demand. If sales at new condo launches hover in the 20 per cent plus region, this can spell trouble for developers. For example, developers will see financing costs rise and face being hit with clawback in Additional Buyer’s Stamp Duty, which was remitted upfront, for failing to sell all housing inventory in a project within the prescribed timeline.</p><p class="mb-2.5 font-sans text-sm leading-6">New condo launches have taken a hiatus during the Chinese Hungry Ghost month, which runs from early August to early September. All eyes will be trained on how a flurry of new condo launches after the Hungry Ghost month fare. Should sales be tepid, expect continued subdued bidding for private housing sites.</p><p class="mb-2.5 font-sans text-sm leading-6">A segment where housing land bids are relatively stronger is that for EC plots. Last week, an<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">EC site in Tampines</a> Street 95, which can yield some 560 homes, was put up for sale by the Housing and Development Board (HDB). Market watchers expect around four to eight bids for this site, with estimates ranging between S$650 and S$750 psf per plot ratio.</p><p class="mb-2.5 font-sans text-sm leading-6">One area of possible weakness in the new homes market could be that of the popular suburban condo segment, where prices have surged since the Covid-pandemic.</p><p class="mb-2.5 font-sans text-sm leading-6">In a commentary on the recent<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">tightening of the loan-to-value limit on HDB loans</a>, I opine that some fizz will come off the high-flying HDB resale flat market. After all, the buying power of some HDB resale flat buyers will be curtailed. In turn, owners of HDB homes looking to sell their flats to fund the purchase of suburban condos could see their buying power affected too.</p></div><div class="mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="greeting-text-wrapper "><div><img width="72" height="72" src="/assets-web2/deals-NpoxSKdZ.png" alt="READ MORE" class="my-6 block h-auto max-w-full"/></div><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">A serviced residences deal brewing</h4><p class="mb-2.5 font-sans text-sm leading-6">Elsewhere in the housing market, the<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">Tanglin Hill bungalow</a> of convicted Hin Leong founder Lim Oon Kuin, also known as OK Lim, has been sold for S$39.2 million, or S$2,507 psf on the freehold land area of 15,636 square feet.</p><p class="mb-2.5 font-sans text-sm leading-6">My colleague Kalpana Rashiwala reported that a major serviced residences deal is brewing. Asset manager BlackRock is close to buying the 299-unit<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">Citadines Raffles Place</a>, which is within the CapitaSpring building on Market Street, for S$300 million or slightly over S$1 million per unit. The serviced residences are on levels nine to 16 of the 51-storey building, which sits on a site with over 56 years of land lease outstanding.</p><p class="mb-2.5 font-sans text-sm leading-6">A group led by KKR and one of Japan’s largest real estate companies reportedly put in a US$2 billion bid to acquire Shiodome City Center, a 43-storey office tower in Tokyo, Japan, owned by Singapore<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">sovereign wealth fund GIC</a>.</p><p class="mb-2.5 font-sans text-sm leading-6">Earlier this month, a deal was announced involving investment firm EQT Private Capital Asia buying New York-listed PropertyGuru Group, which started as an online property listings portal, for US$1.1 billion and taking the latter private.</p><p class="mb-2.5 font-sans text-sm leading-6">My colleague Joan Ng argues that amid the loss-making PropertyGuru reporting improving financials,<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">EQT could continue to cut expenses</a>, find efficiencies or add more businesses to PropertyGuru’s portfolio.</p></div><div class="mt-6 border-t-[3px] border-gray-250 pb-6"></div><div class="greeting-text-wrapper pb-6"><div><img width="72" height="72" src="/assets-web2/earnings-DiH576BW.png" alt="READ MORE" class="my-6 block h-auto max-w-full"/></div><h4 class="mb-2.5 font-pullQuote font-bold leading-8 text-gray-850">Better days ahead for Reits</h4><p class="mb-2.5 font-sans text-sm leading-6">In the real estate investment trust (Reit) space, higher financing costs weighed down on the distributions of trusts in H1. However, market watchers expect interest rate cuts, which appear to be increasingly likely, to<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">turn the tide for Reits</a> in the second half of this year.</p><p class="mb-2.5 font-sans text-sm leading-6">Higher borrowing costs due to rising interest rates have adversely impacted the distribution of many Reits and dampened investor sentiment in the sector. Still, investors who want to ride the improving picture for interest-rate sensitive Reits will need to delve deep into the exposure of the various trusts given performance across property asset types and geographies may differ.</p><p class="mb-2.5 font-sans text-sm leading-6">My colleague Ben Paul cautions that investors should not lose sight of the <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">underlying fundamentals</a> <!-- -->of various Reits, and the risk of more fundraising and acquisitions.</p><p class="mb-2.5 font-sans text-sm leading-6">Meanwhile, property developer<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">Oxley Holdings</a> said that it expects to post a net loss for both the second half and full year ended-June. The group attributed this to impairment losses, finance costs, and lower revenue recognised from its property development projects.</p><p class="mb-2.5 font-sans text-sm leading-6">Overseas, sales of new<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">US single-family homes</a> rose more than expected in July as a drop in mortgage rates boosted demand.</p><p class="mb-2.5 font-sans text-sm leading-6">In the US, sales commission could be around 5 per cent to 6 per cent of the transacted price of a home. Maybe, home sellers can pocket substantial savings by<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">not hiring a real estate agent</a> <!-- -->and lining up a lawyer instead to do the deal closing.</p><p class="mb-2.5 font-sans text-sm leading-6">At home, could a case be made over time for the role of the agent in housing transactions to be done away with, especially as technology advances?</p><p class="mb-2.5 font-sans text-sm font-bold italic leading-6">Will lower interest rates spur more bullish housing land bids? Let me know your thoughts at<!-- --> <a href="https://www.businesstimes.com.sg/property/condo-resale-volumes-surge-32-2-july-ccr-posts-biggest-price-increase-2-8-srx-99-co" class="font-bold text-orange-500 underline">lyee@sph.com.sg</a></p></div></div><div class="mx-auto my-6 flex max-w-[300px] justify-center py-[60px]"><a class="no-underline" rel="noopener noreferrer" href="/newsletter/sign-up" target="_blank"><img src="/assets-web2/circulation_banner-NEo8sPFK.gif" alt="Circulation Banner" width="300" height="180" class="block h-auto max-w-full"/></a></div><div class="mx-5 pb-6 pl-0"><h5 class="box-border border-gray-250 pt-1 font-pullQuote text-4xl font-normal leading-6 text-orange-500">Top reads this week</h5></div><div><div data-id="PropertyStory0" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/opinion-features/subdued-bidding-housing-sites-will-persist-if-sales-new-condo-launches-are-tepid" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">1</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">Subdued bidding for housing sites will persist if sales at new condo launches are tepid</div></a></div><div data-id="PropertyStory1" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/opinion-features/tighter-hdb-loan-limit-will-cool-resale-flat-prices-choice-units-should-still-see-firm-demand" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">2</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">Tighter HDB loan limit will cool resale flat prices; choice units should still see firm demand</div></a></div><div data-id="PropertyStory2" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/property/blackrock-close-buying-299-unit-citadines-raffles-place-s300-million" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">3</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">BlackRock close to buying 299-unit Citadines Raffles Place for S$300 million</div></a></div><div data-id="PropertyStory3" class="px-2 py-5"><a target="_blank" rel="noopener noreferrer" href="https://www.businesstimes.com.sg/companies-markets/s-reit-dpus-weighed-down-higher-interest-rates-h1-tide-turn-h2" class="flex text-black no-underline"><div class="story-counter my-auto min-w-16 text-center font-pullQuote text-12xl font-normal text-orange-500">4</div><div class="story-title pl-3 pr-3 font-pullQuote text-xl font-bold text-black-200">S-Reit DPUs weighed down by higher interest rates in H1, but tide to turn in H2</div></a></div><div 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