Forest City

[snowbird]

True. Most casinos in Macau very quiet these days as China ramps up on anti corruption drive. I saw only the Venice casino very busy, others half dead, even the Galaxy or new Studio City. Seraton or Holiday Inn is worse. Anyway Genting reported RWS is not doing well.

Interestingly enough, Genting KL is doing well, very busy. Singaporeans still prefer this place as you pay only 30% for the same amount of fun. When Fox Studios open its theme park, it is going to be even better.

Yup, the casinos are really quiet these days.
Was in Macau for a few days during the New Year and stayed in Taipa area, visited Venetian and Galaxy, the casinos are not very crowded, with many tables not opened, even during the festive season.
Worse is, with the clamp down on corruption in China, many casinos' VIP rooms for big timers were not opened.
Also went to the newly opened Sands in Macau city, the situation was quite the same.

 

[snowbird]

Yep...30% down from previous out-of-this-world earning is still spell out very profitable. Casino are public listed....2015 financial statement is coming very soon....don't take my word...check them out....the profit beats any single property/premise enterprise by far...far...and far.....

Most of the casinos in Macau are really huge and their operating cost is equally huge.
Comparing some of those in Macau like the Galaxy to the MBS in SG, the MBS is probably only about half its size.
And they all provide round the clock shuttle services to and from the 2 ports and the airport, all FOC.
And in the casinos, free food and drinks even if you are a small timer spending less than $50 at the jackpot.

Profitable or not, no need to wait for the financial report, can tell you now.
Galaxy, one of the bigger ones, the share price had plunged 50% last year, from above HKD40 to HKD20 now, due to massive plunge in revenue.
Presently, Macau is already its flooded with more than 30 casinos, many just within walking distance, the business is really competitive.
Within the next few years, many more big ones will be opened, with the Wynn Palace and Louis XIII opening this year.
Will casinos in Macau report a better profit in 2016, hard to tell.

 

[Frodo]

Most of the casinos in Macau are really huge and their operating cost is equally huge.
Comparing some of those in Macau like the Galaxy to the MBS in SG, the MBS is probably only about half its size.
And they all provide round the clock shuttle services to and from the 2 ports and the airport, all FOC.
And in the casinos, free food and drinks even if you are a small timer spending less than $50 at the jackpot.

Profitable or not, no need to wait for the financial report, can tell you now.
Galaxy, one of the bigger ones, the share price had plunged 50% last year, from above HKD40 to HKD20 now, due to massive plunge in revenue.
Presently, Macau is already its flooded with more than 30 casinos, many just within walking distance, the business is really competitive.
Within the next few years, many more big ones will be opened, with the Wynn Palace and Louis XIII opening this year.
Will casinos in Macau report a better profit in 2016, hard to tell.

Wow can gamble until you drop...I mean until pants drop.

 

[snowbird]

Wow can gamble until you drop...I mean until pants drop.

That's why Singaporeans loves to go to Macau..............so many casinos to choose from, can go casino hopping, free transport, spoilt for choice and best, don't have to pay S$100 levy for each day.
Just bring over S$5k and you can have nearly 30k Macau Pataca as stake.

 

[freekazoid]

Most of the casinos in Macau are really huge and their operating cost is equally huge.
Comparing some of those in Macau like the Galaxy to the MBS in SG, the MBS is probably only about half its size.
And they all provide round the clock shuttle services to and from the 2 ports and the airport, all FOC.
And in the casinos, free food and drinks even if you are a small timer spending less than $50 at the jackpot.

Profitable or not, no need to wait for the financial report, can tell you now.
Galaxy, one of the bigger ones, the share price had plunged 50% last year, from above HKD40 to HKD20 now, due to massive plunge in revenue.
Presently, Macau is already its flooded with more than 30 casinos, many just within walking distance, the business is really competitive.
Within the next few years, many more big ones will be opened, with the Wynn Palace and Louis XIII opening this year.
Will casinos in Macau report a better profit in 2016, hard to tell.

http://www.galaxyentertainment.com/en/investor/financial-reports

2015 Ebitda 1H (First 6 month) HKD 3.229 Billions = approx SGD600 Millions. 41% decreased from previous year. Still pretty good Ebitda healthy a billion a year. The industry is re-baselining....moving towards a new norm. Just wait for MBS financial year announcement...it will beat Galaxy. Like I said...no single premise business enterpriese come close...it's still pretty robust in bad times.

 

[snowbird]

http://www.galaxyentertainment.com/en/investor/financial-reports

2015 Ebitda 1H (First 6 month) HKD 3.229 Billions = approx SGD600 Millions. 41% decreased from previous year. Still pretty good Ebitda healthy a billion a year. The industry is re-baselining....moving towards a new norm. Just wait for MBS financial year announcement...it will beat Galaxy. Like I said...no single premise business enterpriese come close...it's still pretty robust in bad times.

When I was talking about the possibility that Forest City trying jump onto the band wagon to develop an IR with a casino, they have just missed the boat.
Gaming business is not as lucrative as a few years back when casinos in the region are all making big money.
Not anymore.
Macau's casinos are having rapid and massive decline in revenue for 2 years running, the chart just point downwards (any business down by 41% from previous year is really bad, never mind you still make money)
Both casinos in SG and the one in MY are also reporting decline in revenue.
None of them are losing money, not yet.
Casinos in SG were in at the right time and by now had probably amortized their investment.
My point is, when the gaming business in the region are not as robust and worse, on the decline, then a johnny-come-lately Forest City comes along trying to have a finger in the pie too, they will probably be hitting hard spots all the way.

Also, if I had not mistaken, the agreement that a third casino will not be built is ending next year.
If Forest City is going to develop an IR with casino, I'm sure SG will up the ante to allow a third and maybe even a forth casino in the country.
MGM had been waiting for this to happen.

 

[freekazoid]

Gaming is one of world oldest industry....couple of declining years in Macau do not spell eternity of bad time ahead. Beside no one know what's the market size or market norm when Macau open up.

In fact constant lobbying for new Gaming IR license in S.Korea, Japan, Thailand, Singapore by the gaming empires happen year in year out. If Singapore ready for 3rd/4th IRs...it will grab in no time. If Forest City get the okay to house an IR...it will be grab in no time. Gaming empires can't get enough....after all it the rights to exclusive legalize gambling....who turn away from such deal.

IF an UNLIKELY gaming IR in Forest City come to materialization, expect huge investment, expect a lot of buzz, expect a property frenzy. I'm no fan of Forest City. To argue thousand years gambling industry in a legalize setting is the thing of the past just because of self in-favoritism toward Forest City...find that hard to comprehend how distorted it is.

Argue that Gaming IR will not happen in Forest City makes more sense.

 

[snowbird]

Gaming is one of world oldest industry....couple of declining years in Macau do not spell eternity of bad time ahead. Beside no one know what's the market size or market norm when Macau open up.

In fact constant lobbying for new Gaming IR license in S.Korea, Japan, Thailand, Singapore by the gaming empires happen year in year out. If Singapore ready for 3rd/4th IRs...it will grab in no time. If Forest City get the okay to house an IR...it will be grab in no time. Gaming empires can't get enough....after all it the rights to exclusive legalize gambling....who turn away from such deal.

IF an UNLIKELY gaming IR in Forest City come to materialization, expect huge investment, expect a lot of buzz, expect a property frenzy. I'm no fan of Forest City. To argue thousand years gambling industry in a legalize setting is the thing of the past just because of self in-favoritism toward Forest City...find that hard to comprehend how distorted it is.

Argue that Gaming IR will not happen in Forest City makes more sense.

Unlike the Country Garden in Danga Bay, Forest City has really NOTHING special to offer if there is no attraction like having an IR, better still with some casinos.
The location is really remote on JB side and one side is facing the Tuas heavy industrial area where the petrochemical plants are located which is only several meters away.
People living in Jurong West, which is further away, are already complaining of the pollution and smoke from those plants, it'll be worse for residents in Forest City.

Casino or no casino, the business people with the money will be the one deciding and of course, not without the blessing from the VIPs in the country.
Sometimes a decision will make or break the business.........that's why you see some businesses just flourishes (like Apple) while some just got doomed (like Kodak).

 

[xebay11]

Unlike the Country Garden in Danga Bay, Forest City has really NOTHING special to offer if there is no attraction like having an IR, better still with some casinos.
The location is really remote on JB side and one side is facing the Tuas heavy industrial area where the petrochemical plants are located which is only several meters away.
People living in Jurong West, which is further away, are already complaining of the pollution and smoke from those plants, it'll be worse for residents in Forest City.

Casino or no casino, the business people with the money will be the one deciding and of course, not without the blessing from the VIPs in the country.
Sometimes a decision will make or break the business.........that's why you see some businesses just flourishes (like Apple) while some just got doomed (like Kodak).

Smart Sinkie spotted.

 

[Investor888]

Something big is brewing in Forest City. Once u turn down the PTP highway, there will soon be any access road directing u to Forest City in quicker timing. When the Sultan asks, he gets it. Country Garden, as a scheming Chinese developer, knows the rule here in Singapore. Country Garden literally makes Capital Land and Far East looks like schoolboys. Afterall, the former is globally renowned worldwide while the Sg based developers are playing their children games in South East Asia.

 

[garlic]

Was thinking, will those not working in Tuas buy a unit in forest city? It seems the only selling point from a sinkie point of view is the proximity to Tuas. Those who are not working at tuas, why buy there?

 

[Investor888]

Don't think like this.. How about those Sinkie who buy into Pontain or Bukit Indah? Further away right?

Was thinking, will those not working in Tuas buy a unit in forest city? It seems the only selling point from a sinkie point of view is the proximity to Tuas. Those who are not working at tuas, why buy there?

 

[Davis]

Don't think like this.. How about those Sinkie who buy into Pontain or Bukit Indah? Further away right?

wow all forgotten whatever there can possibly be turned to leasehold and the tax can be 3 times higher than those inland. Think it is better to buy as cluster where all "foreigners" flocked together?

Johor coastal development good for locals, not for foreigners
FMT Reporters | August 14, 2015
Leasehold restriction on foreign property owners may see them looking elsewhere, says property consultant.

JOHOR BAHRU: Certain aspects of the Johor Strait Development Corridor Master Plan may not be attractive to foreign investors and they could sink their money in other development projects in the state.

The master plan is the development framework for coastal areas along the Johor Straits which stretches 98km from the Tanjung Piai in the west to Sungai Johor in the east.

Property consultant Samuel Tan said the 99-year lease imposed on foreign property owners for instance, could drive investors to areas like Medini, a 9.2 sq km township in the southern economic zone of Iskandar Malaysia.

Foreign property owners would also have to pay three times more for quit rent and assessment compared to Malaysians in the growth region.

Medini, which includes a premium waterfront urban development facing Singapore, has no restrictions on foreign ownership, no minimum price threshold for foreign property buyers and investors are exempted from real property gains tax until Dec 31, 2025.

The master plan was unveiled last week and is open for public viewing at six venues in Johor until Wednesday.

The master plan covers housing, green technology, sustainability, reclamation and setting up of international zones for foreign property owners.

Johor Housing and Local Government Committee chairman Datuk Abdul Latif Bandi said they would look into all environmental aspects, including preserving the Ramsar wetlands sites, in the development area.

Tan, who is the executive director of KGV International Property Consultants, said it was understandable that the state government protects both the environment and the interest of Malaysian property owners.

“The price threshold of RM2 million for landed properties and RM1 million for strata-title on foreign property owners could spur developers to push up prices of properties built for Malaysians in Iskandar Malaysia,” said Tan in a report carried by the New Straits Times.

http://www.freemalaysiatoday.com/cat...or-foreigners

 

[eric3417]

Yes Davis, this is a relevant concern which i shared with my wife.
I'm abit taken aback by her reply. This what she told me:

1) We have no kids. No assets to Bequest. 99years good enough like our SG ones. (That's if indeed Freehold becomes Leasehold)
2) We are too poor to own a piece of action by the Marina in SG. My wife love's it (PH). So…
3) At appx 1/6 the price if compared to SG's Marina property, it's a Dream holiday/retirement home.

CA is not really on our mind for PH. For us what we have in SG are our main CA drivers / passive income.
What we buy in Malaysia is like what Frodo says, enjoying much much more for less due to $1SGD to $3MYR.
Who's to say for certain Iskandar/JB come 2030 will not be a Dynamic State with continuing influx of Biz & people?

 

[Investor888]

One thing good so far about Malaysia is that even if they changed the law, it applies on that date onwards and not those who have previously bought, unlike Singapore which loves the blanket party on all.

Eg the foreign limit of RM 500k and RM 1 million imposed are irrelevant to those property developers who have confirmed earlier so they are not affected.

 

[snowbird]

Was thinking, will those not working in Tuas buy a unit in forest city? It seems the only selling point from a sinkie point of view is the proximity to Tuas. Those who are not working at tuas, why buy there?

On the contrary, the proximity of Forest to Tuas Industrial is definitely NOT a plus point at all.
I wonder if those buyers into Forest City are aware that the bright lights on Singapore side that the see from their homes on the reclaimed islands, which is only about a football field length away, are actually lights from polluting heavy industries including shipyards and petrochemical plants and many are working 24/7.
These are all considered obnoxious industries that's why they are all located in the furthest western end of Singapore and yet, Forest City is just next door.

 

[Tekkun]

On the contrary, the proximity of Forest to Tuas Industrial is definitely NOT a plus point at all.
I wonder if those buyers into Forest City are aware that the bright lights on Singapore side that the see from their homes on the reclaimed islands, which is only about a football field length away, are actually lights from polluting heavy industries including shipyards and petrochemical plants and many are working 24/7.
These are all considered obnoxious industries that's why they are all located in the furthest western end of Singapore and yet, Forest City is just next door.

It all depend on which way the wind is blowing. If only technology is unlimited, one would dictate the direction the pollution is flowing but man is beyond that.

 

[Investor888]

On the contrary, the proximity of Forest to Tuas Industrial is definitely NOT a plus point at all.
I wonder if those buyers into Forest City are aware that the bright lights on Singapore side that the see from their homes on the reclaimed islands, which is only about a football field length away, are actually lights from polluting heavy industries including shipyards and petrochemical plants and many are working 24/7.
These are all considered obnoxious industries that's why they are all located in the furthest western end of Singapore and yet, Forest City is just next door.

It could be a plus point. If you are working in Tuas mega port, you will get to see your house in FOREST City while you are working. And in Forest City you no need to buy a Maxis or Celcom. Starhub and Singtel coverage is fantastic

 

[Investor888]

Over the CNY holidays, I had all the times in the world in Iskandar myself so I drove to Forest City with my kakis via the new road ( from the road leading to PTP )

Indeed, the road to Forested City is very direct and hassle-free. Now you get to drive along a winding country side road in 5-10 minutes without any cars ( and I-Parc is to your right ) and within minutes you see the Blangla standing on a podium grinning at you to drive straight.

When the Sultan of Johor ask, he gets it.

However, whether or not the backing will translate into real residents sales that I cant give comments, as the buyers so far that I knew are 100% PRC and some cronies.

Singaporean investors have wildly and completely steered cleared of Forested City. I guess all of them are sibei sian of seeing Tuas. The word Tuas reminds us of ulu industrial estates, blanglas roaming the streets in their sarong at nights and weekends and super polluted cum dirty place.

Good luck to Forested City. I guess many local chaps would rather stay in Tekong than Forested City

 

[destansooming]

Hi Bro&Sis,
Is the showflat ready?I dont mind to dropby and visit,but the way to visit the site,it's it 1st left turn Signage"Forest City" right after the toll from Tuas check point?Thanks.