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July 30, 2009
No bubble forming
By Jessica Cheam
CapitaLand's chief executive Liew Mun Leong said the firm is waiting 'to pull the trigger at the right time' with regards to project launches and will be launching its Gillman Heights (left) site for sale soon. --PHOTO: CAPITALAND
THE recent exuberance in Singapore's property market could see prices creeping up some five to 10 per cent by end of this year and into the next, said CapitaLand's chief executive Liew Mun Leong on Thursday.
At the moment, the demand from homes is in a 'healthy state' and it does not appear there is bubble forming yet, said Mr Liew.
'If people are buying homes only as investment tools, then it's a different story,' he said at the firm's results briefing.
The firm is Singapore's biggest property group by market capitalisation.
National Development Minister Mah Bow Tan on Wednesday said speculation is creeping back into the property market, even though it is not execessive at the moment, adding that the government is watching the situation closely and will take 'whatever action necessary' to make sure it does not overheat.
Mr Liew said the firm is waiting 'to pull the trigger at the right time' with regards to project launches and will be launching its Gillman Heights site for sale soon.
The developer paid $548 million for the condominium but a lengthy legal tussle spanning more than two years had delayed the redevelopment of the estate.
Meanwhile, the firm has seen strong buyer interest at its project, The Wharf Residence, in which 94 per cent of its 173 apartments has been sold, said Mr Liew.
Despite improved sentiment however, the global economic crisis continued to weigh on the firm's financial performance due to weaker market valuations.
CapitaLand posted a second quarter loss of $156.9 million, down from net profit of $515.2 million in the same quarter last year.
This is due to revaluations and impairment provisions primarily related to the Singapore office portfolio, real estate assets in Australia and the former Char Yong Gardens site in Singapore, said the firm.
Revenue also declined 27.9 per cent to $591 million in the second quarter.
For the first half of the year, revenue dropped 25.7 per cent to $1.08 billion compared to same period last year, while profit was a negative $114.1 million compared to $762.7 million in the same period last year.
Latest comments
I remember he said that prices will rise back in 2007, shortly before the market came down. If they say no bubbles forming, the bubbles have already formed. It they say prices going up, it probably won't. If they say, buy, please sell.
Posted by: Misnomer at Fri Jul 31 00:28:12 SGT 2009
i believe there r some speculation,if it goes out of hand the govt will intervene
Posted by: talkcock59 at Thu Jul 30 23:05:54 SGT 2009
if ur CEO admit tat there is bubble,then it will affect the property stocks which indirectly will affect their earning
Posted by: talkcock59 at Thu Jul 30 23:04:03 SGT 2009
Rights money have nothing to do with the operational loss.
Rights money and operational loss do not mix.
Posted by: CCLCCLCCL at Thu Jul 30 22:51:59 SGT 2009
understand that Capitaland is in the red. Does that mean that without the rights issues; they are deeper?
by how much, would anyone advice?
and why is Liew's comments deviate from Mah on the bubble issues?
Posted by: geogiayeo9 at Thu Jul 30 22:47:39 SGT 2009
July 30, 2009
No bubble forming
By Jessica Cheam
CapitaLand's chief executive Liew Mun Leong said the firm is waiting 'to pull the trigger at the right time' with regards to project launches and will be launching its Gillman Heights (left) site for sale soon. --PHOTO: CAPITALAND
THE recent exuberance in Singapore's property market could see prices creeping up some five to 10 per cent by end of this year and into the next, said CapitaLand's chief executive Liew Mun Leong on Thursday.
At the moment, the demand from homes is in a 'healthy state' and it does not appear there is bubble forming yet, said Mr Liew.
'If people are buying homes only as investment tools, then it's a different story,' he said at the firm's results briefing.
The firm is Singapore's biggest property group by market capitalisation.
National Development Minister Mah Bow Tan on Wednesday said speculation is creeping back into the property market, even though it is not execessive at the moment, adding that the government is watching the situation closely and will take 'whatever action necessary' to make sure it does not overheat.
Mr Liew said the firm is waiting 'to pull the trigger at the right time' with regards to project launches and will be launching its Gillman Heights site for sale soon.
The developer paid $548 million for the condominium but a lengthy legal tussle spanning more than two years had delayed the redevelopment of the estate.
Meanwhile, the firm has seen strong buyer interest at its project, The Wharf Residence, in which 94 per cent of its 173 apartments has been sold, said Mr Liew.
Despite improved sentiment however, the global economic crisis continued to weigh on the firm's financial performance due to weaker market valuations.
CapitaLand posted a second quarter loss of $156.9 million, down from net profit of $515.2 million in the same quarter last year.
This is due to revaluations and impairment provisions primarily related to the Singapore office portfolio, real estate assets in Australia and the former Char Yong Gardens site in Singapore, said the firm.
Revenue also declined 27.9 per cent to $591 million in the second quarter.
For the first half of the year, revenue dropped 25.7 per cent to $1.08 billion compared to same period last year, while profit was a negative $114.1 million compared to $762.7 million in the same period last year.
Latest comments
I remember he said that prices will rise back in 2007, shortly before the market came down. If they say no bubbles forming, the bubbles have already formed. It they say prices going up, it probably won't. If they say, buy, please sell.
Posted by: Misnomer at Fri Jul 31 00:28:12 SGT 2009
i believe there r some speculation,if it goes out of hand the govt will intervene
Posted by: talkcock59 at Thu Jul 30 23:05:54 SGT 2009
if ur CEO admit tat there is bubble,then it will affect the property stocks which indirectly will affect their earning
Posted by: talkcock59 at Thu Jul 30 23:04:03 SGT 2009
Rights money have nothing to do with the operational loss.
Rights money and operational loss do not mix.
Posted by: CCLCCLCCL at Thu Jul 30 22:51:59 SGT 2009
understand that Capitaland is in the red. Does that mean that without the rights issues; they are deeper?
by how much, would anyone advice?
and why is Liew's comments deviate from Mah on the bubble issues?
Posted by: geogiayeo9 at Thu Jul 30 22:47:39 SGT 2009
