Singapore home prices may rise up to 10%, CapitaLand CEO says – Business News


SINGAPORE: Singapore housing prices may rise as much as 10% this year, following a pickup in home sales, the chief executive officer of Southeast Asia’s biggest developer said.

“Transaction volume has gone up and usually that’s a precursor to some price increase,” Lim Ming Yan, the president and CEO of CapitaLand Ltd., said in an interview in Singapore. 

“A 5-to-10% increase is possible this year barring any unforeseen major volatility in the capital markets.”

Lim was speaking after the developer said net income fell 38% to S$267.7mil (US$202mil) in the three months ended Dec. 31 after finishing fewer homes to sell in China.

Still, CapitaLand shares rose 2% to S$3.54 at 11:59 a.m. in Singapore, the biggest advance since Oct. 5, after the company raised its full-year dividend 20%.

Rising prices and climbing sales are reinforcing signs the city-state’s residential market is emerging from a four-year slump. Developers have been aggressively bidding for land on the back of the recovery. 

CapitaLand, which has largely stayed away from the bidding war, said Tuesday it bought a redevelopment project near the central business district for S$728mil, which it will turn into an 800-unit residential complex.

“We continue to look for opportunities in Singapore but we feel the kind of bidding, the price, is too aggressive for us,” Lim said. “We bid in a very disciplined manner.”

Lim’s view is in line with other forecasts. Home prices may rise as much as 10% this year, according to analysts at Credit Suisse Group AG, while Morgan Stanley and OCBC Investment Research expect as much as an 8% increase, according to reports from the brokerage firms. – Bloomberg

Read more : thestar

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