{"id":22907,"date":"2016-08-15T11:54:36","date_gmt":"2016-08-15T04:54:36","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-developers-face-record-debt-maturities\/"},"modified":"2016-08-15T11:58:52","modified_gmt":"2016-08-15T04:58:52","slug":"singapore-developers-face-record-debt-maturities","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-developers-face-record-debt-maturities\/","title":{"rendered":"Singapore developers face record debt maturities"},"content":{"rendered":"


\nDevelopers here are facing record debt maturities, just as home sales posted their longest-ever losing streak.
\nProperty firms in Singapore are facing record debt maturities \u2013 $1.8 billion of local currency bonds this quarter, $1.2 billion in the fourth quarter and another $3.7 billion next year \u2013 just as home sales registered their longest-ever losing streak, reported Bloomberg.
\nWith this, Credit Suisse Private Banking does not recommend smaller developers due to \u201crelatively high\u201d leverage. JPMorgan Chase & Co believes that these firms are \u201cmost exposed\u201d to a further correction in the property market considering their weak financial profiles.
\n\u201cMany bonds are un-rated and investors aren\u2019t adequately rewarded and have under-priced the risk,\u201d said Ben Sy, head of fixed income, currencies and commodities at JP Morgan in Hong Kong. He added that the finances of smaller developers are weakening while leverage is rising in a local market that lacks adequate scrutiny.
\nSingapore has seen home values drop by 9.4 percent from the peak in 2013, with the declines showing no signs of abating. In fact, an index monitoring private home prices recorded its 11th quarterly drop in the three months ended 30 June, while the government lowered its economic growth forecasts for 2016.
\nThe smallest 50 property firms and trusts on the Singapore Exchange are in an even weaker position to repay their debts, with operating earnings falling from 15.8 times interest expenses five years ago to 9.2 times.
\n\u201cUnlike the commodity sectors, the Singapore property sector \u2013 while softening \u2013 is still perceived to be relatively stable, given the generally moderate pace of decline in prices,\u201d noted Chua Jen-Ai, a research analyst at Bank Julius Baer Singapore.
\nChua expects stresses to appear only in 2017, when property developers cease benefiting from the sales boom which ended in 2013.
\nInvestors are asking for bigger premiums to hold notes from smaller borrowers. Bloomberg-compiled data showed that Heeton Holdings, a developer of homes along Holland Road, saw its yield on 2017 bonds increase by around 130 basis points to 6.5 percent from the previous year.
\nAs at 30 June, the firm\u2019s total debt stands at $369.2 million, with cash and equivalents of $11.2 million, revealed company results.
\nAspial Corp, a jewellery retailer and builder of high-rise condos, saw its yield on 2017 securities rise to around 9.8 percent, the highest in data from November 2014, based on Bloomberg-compiled prices.
\nGiven this scenario, Credit Suisse Private Bank said it prefers real estate investment trusts as regulators capped their borrowing levels to 45 percent of total assets.
\n\u201cWe prefer Reits where leverage is lower and cash flows are more stable,\u201d said Neel Gopalakrishnan, Credit Suisse Private Bank\u2019s Singapore-based emerging markets fixed-income analyst.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Singapore developers face record debt maturities<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Developers here are facing record debt maturities, just as home sales posted their longest-ever losing...<\/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-22907","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\/p75ss1-5Xt","jetpack-related-posts":[{"id":67128,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinas-developers-to-face-a-major-debt-refinancing-scramble-in-2018-rating-agencies-say\/","url_meta":{"origin":22907,"position":0},"title":"China\u2019s developers to face a major debt refinancing scramble in 2018, rating agencies say","date":"September 22, 2017","format":false,"excerpt":"\r China is set to experience a wave of maturing debt in 2018 as Chinese property developers set about a major refinancing cycle expected to last two years, according to credit rating agencies. Real estate companies will need to roll over US$10 billion of offshore bonds and US$35 billion in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39169,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-defaults-a-bellwether-for-asia\/","url_meta":{"origin":22907,"position":1},"title":"Singapore defaults a bellwether for Asia","date":"December 29, 2016","format":false,"excerpt":"\r Analysts are predicting potential defaults on bond issuances by property developers. \u00a0 Singapore saw five companies, including oil services firms Swiber Holdings and Swissco Holdings, default on nearly S$1 billion of bonds this year, revealed a Bloomberg report. Restructuring specialist KPMG expects the defaults to widen to include the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39267,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-defaults-a-bellwether-for-asia-2\/","url_meta":{"origin":22907,"position":2},"title":"Singapore defaults a bellwether for Asia","date":"December 30, 2016","format":false,"excerpt":"\r Analysts are predicting potential defaults on bond issuances Singapore saw five companies, including oil services firms Swiber Holdings and Swissco Holdings, default on nearly SGD1 billion of bonds this year, revealed a Bloomberg report. Restructuring specialist KPMG expects the defaults to widen to include the city-state\u2019s property developers, after\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":125764,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinese-property-firms-bond-issuances-fell-sharply-in-first-quarter-beikes-research-unit-says\/","url_meta":{"origin":22907,"position":3},"title":"Chinese property firms\u2019 bond issuances fell sharply in first quarter, Beike\u2019s research unit says","date":"April 8, 2022","format":false,"excerpt":"\r Bond issuances by Chinese property developers shrank sharply in the first quarter of 2022. Major developers issued offshore bonds worth only 35.5 billion yuan (US$5.6 billion) in the first three months of the year, which translates into a year-on-year decline of 68 per cent, said BRI, the research arm\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28355,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-house-prices-fall-by-most-in-seven-years\/","url_meta":{"origin":22907,"position":4},"title":"Singapore house prices fall by most in seven years","date":"October 3, 2016","format":false,"excerpt":"\r Singapore home prices have dropped by the most in more than seven years as developers offered discounts amid signals from the government that it will not roll back property curbs initiated in 2009.An index tracking private residential prices fell 1.5 per cent in the three months ended September 30\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":133768,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/china-bad-debt-firms-plan-refinancing-support-of-up-to-us24-billion-for-selected-property-developers\/","url_meta":{"origin":22907,"position":5},"title":"China bad-debt firms plan refinancing support of up to US$24 billion for selected property developers","date":"January 17, 2023","format":false,"excerpt":"\r The PBOC will channel 80 billion yuan (US$11.8 billion) of loans to high-quality developers through the nation\u2019s biggest bad-debt asset managers, with a similar amount to be matched by the distressed debt firms, according to sources.\r \r Source : South China Morning Post\r Read more...China bad-debt firms plan refinancing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/22907"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=22907"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/22907\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=22907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=22907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=22907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}