Singapore office and private residential property market : an industry and company analysis

• Main Authors: Koh, Poh Lin, Tan, Tiang Keng, Ea, Choon Leng
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: http://hdl.handle.net/10356/51146
• Institution: Nanyang Technological University

The motivation for this research project stems from interest in (1) ,the rapid development of the local office property market buoyant about the growth in the financial and business sectors and, (2) the recent boom in the private residential property sector. This research is carried out with the objectives of assessing the outlook for the office and private residential property markets in Singapore ( through an industry analysis) and their impacts on selected property companies (through a company analysis). Our industry analysis revealed that the office property market in Singapore is currently experiencing a boom which is likely to persist until 1998. This is due to limited new office space supply in the near to medium term and strong demand driven by favourable economic fundamentals in Singapore as well as Southeast Asian region. On the other hand, the outlook of the private residential property market is mixed, depending on the type and locality of the properties concerned. Supply, though huge, is expected to be met by the demand for private housing. Prices for related categories, such as those with freehold or 999-year tenure and prime locations, are likely to increase while others are expected to be mo~e affordable in the near future. Our company analysis revealed that Straits Steamship Land and Singapore Land Limited are strong office property market players while Malayan Credit Limited and First Capital Corporation are highly exposed to the private residential property sector. City Development Land is active in both sectors. In addition. Straits Steamship Land and City Development Land are expected to outperform the rest in the future in view of their overall exposure to the local property market and their regionalisation drive.