Month: March 2025

Steve Leung Design Group (SLD) is a renowned interior design practice founded by the talented architect and designer, Steve Leung. As part of their business expansion, SLD is teaming up with Italian designer Andrea Bonini to venture into the European market.

The company, listed on the Hong Kong stock exchange, will be establishing its first branch in Europe under the name SLD . Andrea Bonini. This collaboration will offer interior design services and products to clients in both Asia and Europe, catering to high-end residences and luxury hospitality establishments.

The debut of SLD . Andrea Bonini is set to take place in April at the Salone del Mobile, Milan’s prestigious furniture fair. At the event, the brand will also showcase its first collection – a smart home lighting range developed in partnership with smart home manufacturer Moorgen.

This marks SLD’s first venture overseas, and according to a press release on March 11, it is part of a new business strategy focused on “rejuvenation, diversification, and globalization”. The company has over 28 years of experience in the industry and a competitive edge, and aims to bring better lifestyles through design to clients around the world.

Investing in real estate requires careful consideration of location, and this is particularly important in Singapore. One of the main factors that affect the value of condos is their location, with those in central areas and close to important amenities like schools, shopping malls, and public transportation hubs tending to experience higher appreciation in value. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown strong growth in property values. Additionally, the proximity to reputable schools and educational institutions also adds to the appeal of condos in these areas, making them a highly sought-after investment option for families. For more information on investing in Singapore condos, consider checking out Singapore Condo.…

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Singapore’s condo market remains in high demand due to the limited supply of land. Being a small island nation with a fast-growing population, Singapore is faced with a scarcity of land for development. To combat this issue, the government has implemented strict land use policies, leading to a competitive real estate market and continuously rising property prices. As a result, investing in real estate, particularly condos, has become a highly profitable venture, promising potential for substantial capital appreciation.

CapitaLand Group, one of Asia’s largest real estate companies, recently signed a memorandum of understanding (MOU) with Microsoft in order to leverage the latest advancements in artificial intelligence (AI) for its various businesses. Under the MOU, CapitaLand will be joining Microsoft Singapore’s AI Pinnacle Program, which will give the company access to Microsoft’s platforms, services, and solutions that can help enhance customer engagement and improve operational efficiency across its funds, investments, retail, lodging, and development operations.

This strategic partnership between the two companies will enable CapitaLand to explore potential collaboration opportunities in infrastructure development and leverage Microsoft’s Azure cloud computing platform to design data centers and develop new products for its investment arm. Additionally, CapitaLand will also incorporate AI, data analytics, and machine learning into its digital transformation efforts in order to drive business growth and create more value for its stakeholders.

In a statement, Quah Ley Hoon, group chief corporate officer of CapitaLand Investment, emphasized the significance of this collaboration and how AI will play a key role in shaping the company’s future. She also expressed her confidence in Microsoft’s capabilities in helping CapitaLand achieve its digital transformation goals.

Separately, CapitaLand Investment (CLI), the real asset management arm of CapitaLand, has also signed an MOU with the Singapore Business Federation (SBF) to establish a framework for the integration of AI and other digital technologies across CLI’s retail ecosystem. This initiative will focus on promoting the adoption and proof of concept for AI, data analytics, and cybersecurity solutions among CLI’s retail tenants, as well as developing AI-focused competencies and skills within the organization.

These partnerships highlight CapitaLand’s commitment to embracing technological advancements and exploring innovative solutions that can drive its growth and competitiveness in the long run. With the company’s recent acquisitions and investments in Singapore and Thailand, as well as the successful sale of its One Pearl Bank penthouse, CapitaLand is well-positioned to continue its success and maintain stable cash flow in the future.…

CapitaLand Group has signed a memorandum of understanding with Microsoft to utilize artificial intelligence (AI) and advanced technologies in its businesses. This partnership will see CapitaLand join Microsoft Singapore’s AI Pinnacle Program, gaining access to Microsoft platforms, services, and solutions to improve customer engagement and operational efficiency across its funds, investments, retail, lodging, and development business units.

Specifically, CapitaLand will explore collaboration opportunities in areas such as infrastructure development, utilize Microsoft’s Azure cloud computing platform to enhance CapitaLand Investment’s data center design and products, and incorporate AI, data analytics, and machine learning to strengthen its digital and business transformation efforts.

The metropolitan cityscape of Singapore boasts towering skyscrapers and state-of-the-art structures. Condos, strategically situated in coveted locations, offer a combination of lavishness and convenience that entices both locals and foreigners alike. These modern abodes are equipped with a host of facilities, including swimming pools, fitness centers, and security measures, elevating the standard of living and making them a desirable choice for potential renters and purchasers. For investors, these desirable attributes equate to attractive rental income and a steady appreciation in property value over time. Condos truly offer a desirable living experience in Singapore’s urban setting.

“Our collaboration with Microsoft is a significant step in CapitaLand’s digital transformation journey. AI will play a key role in shaping our future by driving operational efficiencies and creating value for our stakeholders,” says Quah Ley Hoon, group chief corporate officer of CapitaLand Investment.

In addition, CapitaLand Investment (CLI), the real asset management arm of CapitaLand, has also signed an MoU with the Singapore Business Federation (SBF) to establish a framework for digitalization and integration of AI in CLI’s retail ecosystem. This includes supporting the adoption and proof of concept for AI, data analytics, and cybersecurity solutions to boost business efficiency and competitiveness, as well as developing AI-focused skills and competency among retail tenants.

These collaborations highlight CapitaLand’s commitment to digital transformation and its efforts to stay ahead in an evolving business landscape. The company recently acquired three properties in Singapore and Thailand and expects a significant decline in Patmi, with cash flow remaining stable. Its latest development, One Pearl Bank, has also achieved 100% sale with the last penthouse unit being sold.…

An opportunity to acquire a portfolio of 14 retail shops across three popular shopping destinations is now available through an expression of interest (EOI) exercise. ERA Realty Network, the marketing agent for these properties, has set the total price at $26.46 million.

Among the properties on offer are two units at Peninsula Plaza, a 999-year leasehold mixed-use development located on North Bridge Road. These adjoining ground-floor shop units have a combined strata area of approximately 990 sq ft and are seeking a selling price of $8 million, translating to $8,081 psf.

Peninsula Plaza, a landmark 30-storey commercial development that was completed in 1980, boasts a six-storey retail podium and a 24-storey office tower. It is conveniently connected to the City Hall MRT Interchange Station, providing easy access to the North-South and East-West lines.

Over at Sim Lim Square, 11 strata units with a total strata area of 5,081 sq ft are also up for sale. These units are zoned for commercial use and are all located on the fifth floor, with a 99-year lease that commenced in April 1983, leaving about 57 years on the lease. Most of these units are currently tenanted. Facing the mall’s main atrium, they offer direct access from the escalators and lifts.

Potential buyers have the option to purchase these units individually or as a collective portfolio. Individual units are priced from $840,000, while the entire portfolio is asking for $15.855 million, which ERA states is a 20% discount from its latest valuation. This works out to $3,120 psf on the strata area.

Sim Lim Square, a strata-titled commercial development on Rochor Canal Road in District 7, was completed in 1987 and houses 492 commercial units across six floors and two basement levels.

Finally, the remaining unit on offer is located at Far East Plaza on Scotts Road. This freehold retail unit on the second floor boasts a strata floor area of 355 sq ft and is facing the escalator near the mall’s main entrance. It is priced at $2.6 million, or $7,324 psf.

Far East Plaza is a mixed-use development completed in 1982, with a five-storey retail mall and serviced apartments. It is situated within walking distance of the Orchard Road MRT Station.

According to Donald Goh, director of capital markets and investment sales at ERA, these properties are likely to attract interest from both property investors and business owners. He points out that despite the challenges faced by the retail sector, there were still 28 and 33 strata retail transactions recorded in the Downtown Core and Orchard Planning Area respectively in the past year. Goh adds, “Recent sales at Lucky Plaza, Orchard Towers and The 101 show that strata retail shops remain an attractive investment with prices reaching as high as $15,242 psf, $5,309 psf and $5,657 psf respectively.”

Selecting an ideal location is a crucial factor in real estate investing, particularly in Singapore. In terms of condos, their worth tends to appreciate more if they are strategically situated in central areas or near essential facilities like schools, shopping centers, and transportation hubs. Prime spots like Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown significant growth in property values. Moreover, the presence of prestigious schools and educational institutions in these areas makes condos highly desirable for families, making them even more profitable investments. Taking into account all these elements, opting for a condo in a prime location in Singapore can prove to be a wise choice.

The EOI for these properties will close on April 17 at 3pm. Interested parties can check out the latest listings for Peninsula Plaza properties.…

GuocoLand, together with its joint venture partners TID and Hong Leong Holdings, have recently secured a green club facility worth $367.1 million from DBS Bank to develop their Faber Walk site. This residential land parcel was acquired through a Government Land Sale tender in November last year, with GuocoLand and its partners submitting the highest bid of $349.86 million, equivalent to $900 per square foot per plot ratio for the 277,659 square foot site.

The upcoming development on Faber Walk will consist of nine low-rise blocks, offering a total of 399 residential units. It is located in the exclusive landed private residential enclave of Faber Walk, which is adjacent to the Faber Hills estate. Situated next to the Pandan River and the forthcoming Old Jurong Line Nature Trail, this waterfront development boasts a prime location.

It is crucial for international investors to have a thorough understanding of the regulations and limitations pertaining to property ownership in Singapore. As compared to landed properties, which have more stringent ownership rules, foreigners are typically allowed to purchase condos with ease. Nevertheless, foreign buyers are obligated to pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their initial property purchase. Despite the added expenses, the stability and potential for growth in the Singapore real estate market remain highly appealing to foreign investors. The attractiveness of Singapore Condos continues to drive foreign investment in the country.

The green facility secured by GuocoLand for this project complements their existing sustainable initiatives across their other developments, such as Guoco Tower on Wallich Street, Guoco Midtown on Beach Road, Midtown Modern on Tan Quee Lan Street, and Lentor Mansion in Lentor Gardens.

Dora Chng, the residential director of GuocoLand, expresses excitement for the project, saying, “We are thrilled to leverage the group’s end-to-end value chain capabilities in creating sustainable developments with biophilic designs for our residents, similar to our successful launches like Lentor Modern and Lentor Mansion in the Lentor Hills estate.”

Upon completion, the Faber Walk development is expected to achieve the BCA Green Mark Platinum (Super Low Energy) award and Maintainability badge, in line with GuocoLand’s commitment to sustainability.

In addition to the Faber Walk project, GuocoLand’s future plans include a 941-unit development at their Upper Thomson Road (Parcel B) site, which they acquired last April. This joint development with Hong Leong Holdings is set for launch in the second half of the year.…

On March 8, developer Sim Lian Group reported that it had successfully sold 682 units (90%) out of its 760-unit executive condominium (EC), Aurelle of Tampines. This project, located at Tampines Street 62, has achieved an average price of $1,766 per square foot (psf).

In just one day, all the four- and five-bedroom units have been snapped up, while 84% of the three-bedroom units have also been sold, showing strong demand for well-designed and well-connected homes in Tampines, one of Singapore’s most well-connected regional centres.

Sim Lian Group Limited’s executive director, Kuik Sing Beng, commented, “This remarkable response underscores the strong demand for thoughtfully designed and well-connected modern homes like Aurelle of Tampines, in the most well-connected regional centre in Singapore.”

For interested buyers, the latest information on available units and prices for Aurelle of Tampines can be obtained.

According to Ismail Gafoor, CEO of PropNex, the average price of $1,766 psf has set a new benchmark for launch prices in the EC market. He also noted that the 90% take-up rate on launch day is the highest since the 531-unit Hundred Palms Residences sold out in July 2017 at an average price of $841 psf.

Sim Lian also shared that by 3.15 pm on the day of the launch, the 30% quota allocated for second-time buyers had been fully taken up. This quota will be lifted one month after the launch date.

Eugene Lim, key executive officer at ERA Singapore, remarked, “The take-up rate could have been higher without the quota limit on second-time buyers, but they will have another chance to ballot for a unit a month after the launch.” He added that the government may consider increasing the quota for second-time buyers to align with the recent increase in allocation for second-time buyers of BTO flats.

CEO of Huttons Asia, Mark Yip, also commented that about 68% of the buyers have opted for the Deferred Payment Scheme (DPS) to finance their purchases, while the rest have chosen the Normal Payment Scheme.

Prior to the launch, more than 2,200 electronic applications (e-apps) were received since the project opened for preview on February 21, the highest e-app figure since Copen Grand in Tengah attracted 2,300 e-apps in 2022.

Aurelle is the second EC to be launched in Tampines North, following the neighbouring 618-unit Tenet, a joint development by Qingjian Realty, Santarli Realty, and Heeton Holdings. Tenet, which was launched in December 2022, saw 72% of its units sold on launch day at an average price of $1,348 psf, and is now fully sold.

Prices for units at Aurelle of Tampines start from $1.417 million ($1,687 psf) for a three-bedroom unit of 840 sq ft, $1.689 million ($1,651 psf) for a four-bedroom unit of 1,023 sq ft, and $2.258 million ($1,665 psf) for a five-bedroom unit of 1,356 sq ft.

ERA’s Lim pointed out that the attractive pricing, strategic location, and unique features of the project have made it a highly sought-after choice for eligible first-time buyers and upgraders.

In addition to its strong sales, Aurelle’s location near ParkTown, a fully integrated mixed-use development with a transport hub, shopping mall, hawker centre, and community club, may have contributed to its success. ParkTown Residence, a 1,193-unit development by a joint venture between CapitaLand and UOL Group, sold 1,041 units on its launch weekend on February 22-23, and has sold a total of 1,043 units at an average price of $2,361 psf.

Huttons’ Yip noted that Aurelle is only the second EC to be located next to a fully integrated mixed-use development, the first being the 573-unit Esparina Residences in Sengkang. Launched in October 2010, the average price was around $748 psf at that time. Based on caveats lodged, the average price of units sold from January 2024 to January 2025 is $1,625 psf, an increase of 117%.

In November 2023, a 1,367 sq ft unit on the seventh floor of Esparina Residences was sold for $2.388 million ($1,747 psf), the second-highest psf price achieved at the development. The highest was for another 1,367 sq ft unit on the 14th floor that fetched $2.4 million ($1,756 psf).

According to Lim, new ECs are priced about $600 psf cheaper than new private condos in 2025. However, when compared to resale condos in the suburbs or Outside Central Region (OCR), the average price of a new EC is only 1% higher, making it an attractive choice for buyers with its fresh 99-year lease and modern facilities.

Securing financing is a crucial factor when investing in a condominium. In Singapore, there are various mortgage choices available, but it is vital to familiarize oneself with the Total Debt Servicing Ratio (TDSR) framework. This framework puts a cap on the loan amount that a borrower can receive, taking into account their income and current debt commitments. To ensure wise financing decisions and avoid overextending oneself, it is essential to comprehend the TDSR and seek guidance from financial advisors or mortgage brokers. Additionally, keeping an eye on new condo launches can provide investors with a more comprehensive range of options to consider.

Interested in purchasing a unit at Aurelle of Tampines? Check out the latest listings and comparison of new sale condos and resale condos in the area.…

Facebook to lease new office space at Marina One View more stories

On March 8, the luxurious Aurea residential project was launched for sale, making it one of the first in the Core Central Region (CCR) to do so in the first quarter of 2025. This preliminary release saw a total of 23 units being sold at an average price of $3,005 per square foot.

Joint developers Far East Organization and Perennial Holdings introduced 78 units in phase one for sale, consisting of a mix of two- to four-bedroom apartments from levels 4 to 16. This translates to a sales rate of approximately 30% based on the 78 units released.

Aurea boasts 188 units spanning across 45 storeys, designed by DP Architects with a unique “hanging garden concept.” It stands out as the first new private condominium connected to a mixed-use development that was sold en bloc and conserved, now collectively known as Golden Mile Singapore.

According to the joint developers, Singaporeans make up 83% of the buyers at Aurea, with permanent residents (PRs) from Malaysia taking up the remaining 17%. Based on the total of 188 units, the sales translate to an uptake of 12.2%. As explained by Mark Yip, CEO of Huttons Asia, “CCR projects usually sell around 10% to 30% of their units during the launch weekend as they lack the large pool of HDB upgraders that suburban projects attract.”

As one evaluates the viability of investing in a Singapore Condo, it is crucial to also consider the potential rental yield. Rental yield refers to the annual rental income of a property in relation to its purchase price. In Singapore, the rental yields for condos can vary greatly depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer more attractive rental yields. Engaging in thorough market research and seeking the advice of real estate agents can provide valuable insights into the rental potential of a specific condo.

PropNex CEO Ismail Gafoor finds the sales at Aurea “encouraging” amidst the “mostly lacklustre sales” of CCR projects since the tightening of the additional buyer’s stamp duty (ABSD) measure in April of 2023. “The doubling of the ABSD rate for foreigners to 60% has significantly cooled interest for CCR homes,” he notes. “In fact, developers sold the fewest new CCR private homes on record in 2024, at just 378 units – down by 74% from 1,454 units in 2023.”

However, Gafoor is confident that the take-up rate in the CCR segment will gradually improve. “We have observed that CCR projects tend to transact units steadily over many months rather than achieve blockbuster sales over the launch weekend, unlike some Rest of Central Region (RCR) and Outside Central Region (OCR) projects,” he adds. “CCR homes are targeted at a niche market, where buyers seek a luxury home and enjoy the finer things in life.”

The Prestige Collection, comprising two- to three-bedroom apartments, accounted for 74% of the sales, according to the joint developers in their release. These apartments have been popular among buyers for their smart spatial design, functionality, and investment potential.

The four-bedroom units from the Signature Collection were also a hit among buyers, primarily because of their “expansive balconies that open out to sweeping views of both the Marina Bay and Kallang Basin,” states the joint venture.

The Sky Villa Collection comprises only 18 five-bedroom apartments spanning up to 3,251 square feet and two exclusive six-bedroom penthouses covering 8,816 square feet. “Such large-format homes in the downtown area are hard to find,” remarks Shaw Lay See, COO of the Far East Organization’s sales and leasing group.

“Properties in the CCR have been recording higher prices than those in the Rest of Central Region (RCR) and the Outside Central Region (OCR) in recent years, with the gap between the regions closing significantly,” states Ken Low, managing partner of SRI. “Historically, the difference between CCR and RCR properties has averaged around 40% in the last 10 years, but it has now reduced to about 20% across all properties regardless of tenure.”

As per Marcus Chu, CEO of ERA Singapore, price growth in the CCR region has lagged behind that of RCR and OCR in recent years because of comparably fewer new home launches. “In 2025, we expect to see some nine CCR launches, which will drive a notable increase in CCR home prices this year due to changing market dynamics,” he says. “The doubling of ABSD for foreign buyers could encourage investors to shift their focus back to CCR, as the non-landed new homes price gap between CCR and RCR has narrowed from 50% in 2018 to 10% in 2024, with the likelihood of it widening again as more new luxury homes debut.”

Low of SRI believes that Aurea will benefit from Singapore’s ongoing efforts towards urban renewal, with major infrastructural and lifestyle upgrades planned for the surrounding area. The rejuvenation of Beach Road and the Ophir-Road Corridor, the Kallang Alive master plan, and the completion of the North-South Corridor are all set to enhance accessibility, connectivity, and vibrancy in this prominent city district, he observes.

“Aurea is also situated at the doorstep of one of the largest transformation projects in Singapore,” adds Huttons’ Yip. He foresees the property benefiting from the 120-kilometre Southern coastline redevelopment, which spans from the Greater Southern Waterfront, Marina Bay, and Kallang Basin to the future Long Island project.…

One Holland Village Residences’ three-bedroom unit has set a new record high price of $3,781 psf for private condos from Feb 16 to 21. The unit was sold for $4.68 million on Feb 17, marking the first sale at the 99-year leasehold development this year. The sellers had previously purchased the unit for a lower price of $4.19 million in November 2023, making a profit of about $490,000. This transaction surpasses the project’s previous record of $3,426 psf, achieved in August 2022.

One Holland Village Residences, a 296-unit development in District 10 launched in 2019, comprises one- to five-bedroom units ranging from 489 sq ft to 3,455 sq ft. The most expensive unit transacted at the development was a five-bedroom apartment sold for $11.4 million or $3,300 psf.

Boutique condo Hill House, located at the top of Institution Hill, off River Valley Road, saw the second-highest psf-price for the period in review. On Feb 21, a 452 sq ft, two-bedroom unit on the ninth floor was sold for $1.538 million, setting a new record of $3,402 psf. This comes just four days after another 452 sq ft, two-bedroom unit on the eighth floor was sold for $1.536 million, setting the previous record of $3,398 psf.

Including the record-setting transaction, a total of nine Hill House units have been sold since the start of the year at an average price of $3,213 psf. The boutique condo, set to be completed in 3Q2026, is five minutes away from River Valley Primary School and close to shopping malls such as New Bahru.

Lastly, a new psf-price high was also set at Chuan Park Condo along Lorong Chuan, with a 732 sq ft, two-bedroom unit sold for $2.04 million ($2,785 psf) on Feb 19, narrowly surpassing the previous record of $2,765 psf set in November 2023. The development comprises two- to five-bedroom apartments from 700 sq ft to 1,841 sq ft and has sold 744 units since its launch in November 2024, at an average price of $2,589 psf. It is set to be completed in 2028, and is located near Lorong Chuan MRT Station and Nanyang Junior College.

Rewritten:

Investing in a condo in Singapore has become a top choice for both local and foreign investors, thanks to the country’s strong economy, stable political climate, and excellent quality of life. The real estate market in Singapore presents a plethora of opportunities, with condominiums being a highly attractive option due to their convenience, amenities, and potential for lucrative returns. In this article, we will delve into the advantages, considerations, and necessary steps for those looking to invest in a condo in Singapore.…

An exclusive marketing agent from Colliers International has announced the sale of a three-storey terrace factory located in Midview City. The property has a guide price of $6.2 million or $688 psf.

Situated in the bustling Sin Ming Industrial Estate, the factory comes equipped with a basement and roof terrace. Spanning a total strata area of 9,009 sq ft, the building is zoned as a “Business 1” site under the URA Masterplan 2019.

According to Colliers International, the 60-year leasehold property is currently fully leased and has been approved for use as a childcare centre. It is currently tenanted by Star Learner preschool and childcare centre.

The cityscape of Singapore is characterized by towering skyscrapers and state-of-the-art infrastructure. Condominiums, strategically situated in sought-after locations, offer a perfect balance of opulence and convenience, catering to the preferences of both locals and expats. These residential properties boast a plethora of facilities such as swimming pools, fitness centers, and round-the-clock security services, elevating their appeal to potential renters and buyers. For investors, these desirable amenities translate into higher rental returns and appreciation in property values over time. Additionally, with the introduction of new condo launches, the condo market in Singapore continues to thrive and attract a diverse range of buyers.

Midview City, a light industrial building with a 60-year lease, was completed in 2012. The location offers convenient access to Bright Hill MRT Station on the Thomson-East Coast Line. It is also easily reachable from the Bishan and Upper Thomson residential areas through two entrances via Sin Ming Lane and Bright Hill Drive.

Raphael Lee, director of industrial services at Colliers, has stated that the property presents a rare opportunity for investors as it will be sold with an existing preschool operator in place.

As a Business 1 light-industrial property, it is not subject to Additional Buyer’s Stamp Duty (ABSD) and can be purchased by foreigners. The closing date for the Expression of Interest (EOI) exercise is April 29 at 3pm.

Explore the price trend for industrial properties and compare them to commercial properties through EdgeProp Landlens. Check the past industrial sale and rental transactions, as well as current listings for industrial properties.…

BlackRock Sees Opportunities for Real Estate Investment in Asia Pacific Markets

According to Hamish MacDonald, head and chief investment officer of APAC Real Estate at BlackRock, investors are showing a strong interest in deploying capital into real estate markets in Asia Pacific that have high levels of liquidity. This year, the property sectors that are expected to benefit from economic tailwinds are accommodation, logistics, and alternative assets. MacDonald says that the markets in the region with abundant liquidity in 2021 include Australia, Japan, Singapore, and Auckland in New Zealand. These countries and property markets are also the main focus for BlackRock this year.

MacDonald predicts that investor sentiment will be more bullish this year compared to the previous two years, with institutional investors starting discussions on deploying and recycling capital in select Asia Pacific real estate markets. In Singapore, BlackRock has been focused on acquiring serviced apartment properties. They partnered with YTL Corp to purchase Citadines Raffles Place for around $290 million last October. This was followed by their collaboration with Hong Kong-based accommodation operator Weave Living to acquire Citadines Mount Sophia for $148 million in February 2024.

The property operated by Weave Living, which is now known as Weave Suites – Hillside, reopened this week with 175 rooms. MacDonald explains that their recent acquisitions in Singapore reflect their belief that there is a shortage of new serviced apartment supply in the city-state, yet there is high demand for this type of accommodation. He adds that they are not focused on building an aggregated portfolio, but rather on targeting specific deals. MacDonald states, “We prefer existing properties that we can refurbish and reposition with the help of a partner and add value by introducing new amenities.”

He also notes that Singapore continues to attract significant capital inflows and high-skilled labor, which supports the country’s strong economic growth. He says, “We remain very positive on opportunities in Singapore.” Apart from Singapore, MacDonald sees Japan as a target for many real estate investors this year. He says, “We are bullish on the Japanese economy based on our analysis of domestic pricing power, wage growth, and corporate reform, which collectively support real estate growth.” Daigo Hirai, head of Japan real estate at BlackRock APAC, adds that several factors, such as wage increases and rising construction costs, have contributed to the strong rental uplift in the Japanese residential market in recent quarters.

Hirai expects a 7% to 8% increase in residential rents across major Japanese cities like Tokyo and Osaka this year. He also points out that tenants are now opting for larger-sized apartments instead of compact ones like studios. BlackRock is looking to partner with an experienced accommodation operator to manage a hybrid residential investment strategy that caters to both inbound tourist accommodation needs and domestic rental demand. This would allow them to increase their investment presence in tourist-dominated cities such as Kyoto and Fukuoka. Hirai says the properties that fit this strategy are those near train stations in residential-commercial neighborhoods like Osaka’s Namba district, as well as smaller developments with up to 50 units. He adds that the firm will consider acquisitions worth JPY1 billion ($8.93 million) to JPY3 billion.

MacDonald says that the key to operating in Japan is to have specialist ground teams who can identify potential acquisition deals at a significant discount, and the firm’s focus in Japan is on residential assets. Meanwhile, Ben Hickey, head of Australia Real Estate at BlackRock, says that long-term population growth estimates support positive long-term growth in most sectors of the Australian real estate market. He also notes that most property sectors in Australia are typically characterized by under-supply and low vacancy rates.

When it comes to investing in Australia, Hickey says that any strategy should consider whether rental growth can exceed inflation, the ongoing long-term supply-demand imbalance, and a favorable exit strategy. Therefore, the company is focused on niche asset classes in Australia, such as childcare properties, last-mile logistics assets, life science real estate, and self-storage properties. These four asset types benefit from the country’s long-term population growth and are under-supplied compared to other regional markets. According to Hickey, this allows them to generate above-average returns with minimal risk, without relying on a favorable interest rate outlook.

Due to the limited amount of land in Singapore, there is a significant demand for condos in the country. As an island nation with a quickly expanding population, Singapore is facing a scarcity of land for development. To address this issue, strict land use policies have been implemented, resulting in a highly competitive real estate market where property prices remain consistently high. As a result, investing in real estate, especially in condos, has become a lucrative opportunity with the potential for capital appreciation. Keeping in mind the growing demand, new condo launches are continually being introduced to the market.…