{"id":112472,"date":"2019-11-19T12:16:12","date_gmt":"2019-11-19T05:16:12","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/frasers-property-cautiously-optimistic-of-singapores-residential-market\/"},"modified":"2019-11-19T13:03:16","modified_gmt":"2019-11-19T06:03:16","slug":"frasers-property-cautiously-optimistic-of-singapores-residential-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/frasers-property-cautiously-optimistic-of-singapores-residential-market\/","title":{"rendered":"Frasers Property cautiously optimistic of Singapore\u2019s residential market"},"content":{"rendered":"


\nThe group has been cautious in acquiring residential sites given that land prices remain high while the take-up rate has been slow.
\nHigh land price and low take-up rate of properties in Singapore have prompt Frasers Property Limited to take a more careful approach in the Singapore residential market while the company actively evaluates for opportunities in the market.
\n\u201cSingapore is still our home-ground, but we have to be resilient and not just invest for the sake of investing,\u201d said Frasers Property\u2019s group chief executive officer Panote Sirivadhanabhakdi at the group\u2019s earnings briefing.
\nThe group has been cautious in acquiring residential sites given that land prices remain high while the take-up rate has been slow.
\n\u201cBut we are keeping up with the market and the team has been actively reviewing opportunities,\u201d he added.
\nIn FY2019, Frasers took a $93.95 million write-down to the net realisable value of properties held for sale, reported The Business Times. Of this, Singapore made up $39 million, likely due to its Rivi\u00e8re development at Jiak Kim Street.
\nThe provisions, which are non-cash in nature, \u201ccan allow for more marketing initiatives and\/or better optionality in trading through Frasers\u2019 residential stocks\u201d, said the group.
\nIts 455-unit Rivi\u00e8re project moved 46 of the 60 units released for sale as at end-October, while Seaside Residences has sold 768 of its 841 units.
\n\u201cResidential markets across Singapore, Australia, the UK \u2013 while we are cautiously optimistic \u2013 are facing headwinds of various kinds,\u201d explained Loo Choo Leong, group chief financial officer at Frasers Property.
\n\u201cIn addition to slowing GDP growth across these markets, there are uncertainties that may come. In order to build a more resilient residential development portfolio, we\u2019ve taken the conservative approach of taking additional provisions to protect our residential businesses going forward.\u201d
\nLoo believes that lowering prices is not the appropriate route for the group.
\n\u201cWe have to trade through. It is a cyclical business, it is a long-term business. We will have to look at how we build enough gunpowder in order to ensure we will trade through relatively well, given the uncertainties that we see,\u201d he said.
\nFrasers saw its net profit for FY2019 drop 25.3% to $560.3 million, due to lower contributions from development projects and lower fair value gains. However, this was offset partly by recurring income sources.
\nFor the year ended 30 September, revenue also declined 12.2% to $3.8 billion.
\nWith this, a final dividend of 3.6 Singapore cents was proposed, down from 6.2 cents for FY2018. Including the 2.4 cents interim dividend, total distribution for the year amounted to six cents per share, down from FY2018\u2019s 8.6 cents.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Frasers Property cautiously optimistic of Singapore\u2019s residential market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The group has been cautious in acquiring residential sites given that land prices remain high...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-112472","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tg4","jetpack-related-posts":[{"id":115634,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-investment-sales-to-grow-5-per-annum-in-2019-2024\/","url_meta":{"origin":112472,"position":0},"title":"Singapore investment sales to grow 5% per annum in 2019-2024","date":"April 15, 2020","format":false,"excerpt":"\r Property investment sales in Singapore is projected to grow 5% per year in the longer term over 2019 to 2024 even as this year\u2019s sales is expected to drop 24% year-on-year, revealed a Colliers International report. 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Frasers Centrepoint Limited (FCL), through its\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":79846,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/residential-land-sales-could-reach-16b-in-2018\/","url_meta":{"origin":112472,"position":2},"title":"Residential land sales could reach $16b in 2018","date":"February 14, 2018","format":false,"excerpt":"\r Developers are bidding more aggressively for land amid estimations that they are sitting on a $22.9 billion war chest. 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Photo: Frasers Property Parc Greenwich, an executive condominium (EC) development next\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/Parc-Greenwich-crop.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":121666,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/parc-greenwich-opens-for-e-application\/","url_meta":{"origin":112472,"position":4},"title":"Parc Greenwich opens for e-application","date":"August 26, 2021","format":false,"excerpt":"\r 496 units are available at Parc Greenwich\u00a0and comprise\u00a0two- to five-bedders\u00a0between 786 sq ft and 1,464 sq ft, as well as penthouses which range between 990 sq ft\u00a0to 1,679 sq ft. 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