S’pore property not set for ‘big bump’, says CapitaLand

SINGAPORE • Singapore home prices are unlikely to stage a rapid rebound after the government imposed further property curbs in mid- 2018, the CFO of the city state’s largest developer said.

“If we see a 5% increase in home prices I think that will be a pretty good year for the Singapore residential market,” CapitaLand Ltd’s Andrew Lim said in an interview with Bloomberg Television yesterday. “The severity and extent of the measures in July caught us by surprise.”

“We agree with the main view on the street which is that we don’t expect a big bump up anytime soon,” Lim said.

CapitaLand’s profit rose 71% to S$475.7 million in the quarter ended Dec 31, bolstered by asset sales and property revaluations, the company said earlier yesterday. The shares rose 1.2% in early trade yesterday, taking this year’s gain to 10%.

The developer agreed last month to acquire Temasek Holdings Pte Ltd’s units, Ascendas Pte Ltd and Singbridge Pte Ltd, bolstering its assets to more than S$116 billion across 180 cities in 32 countries. The deal adds logistics centres and business parks to its portfolio of residential, retail and commercial property.

“Ascendas will bring us greater diversity and operational excellence in new economy sectors of logistics and business parks,” Lim said.

“Ascendas has very strong expertise in markets that CapitaLand does not have such as India, Australia and Korea.” — Bloomberg