Upgraders dominate the housing market, says Wing Tai

25 Aug 2017

East Coast Singapore


A “strange phenomenon” has occurred in the housing market, in which home upgraders dominated the market, while foreign buying and speculative investment remains suppressed, reported the Straits Times.

The phenomenon comes as upgraders pushed prices in new townships and traditional areas nearer to those in the fringe area around Orchard Road, said Cheng Wai Keung, chairman and managing director of Wing Tai Holdings.

Prices within the fringe area or Rest of Central Region, on the other hand, have not witnessed the same increase due to the absence of speculative and foreign investment, he noted.

SEE ALSO: Property market upturn on the horizon

With the recovery looking like a two-speed one, Cheng revealed that he remains uncertain of the market outlook.

“This is a very different and difficult period in my 40 years in the property market. It has stabilised but you are not sure if it will continue to be like that,” he said during the group’s results briefing.

“But that does not mean that we do not look at property that will give us value.”

Wing Tai and Keppel Land submitted the highest bid of S$446.3 million for a land parcel at Serangoon North Avenue 1 last month.

Wing Tai saw its fourth quarter net profit soar 406 percent year-on-year to S$9.5 million.

For the 12 months to 30 June, net profit jumped 184 percent to S$20.1 million, while revenue dropped 52 percent to S$263.2 million.

Full-year earnings per share increased from 0.91 Singapore cents to 2.59 cents and net asset value per share rose to S$4.07 as at 30 June.

With this, the company declared a first and final dividend of three Singapore cents per share as well as a special dividend of three cents per share – similar to last year.


This article was edited by Denise Djong.


You may also like these articles

Developers to focus on smaller sites

 While homes sales have been on the uptrend, some developers are expected to focus on smaller residential developments at the H2 2017 Government Land Sales (GLS), revealed an Edmund Tie & Com

Continue Reading23 Aug 2017

Get the Guru View: No one’s home

Vacancy rates in the Core Central Region have recovered somewhat since crossing the 10 percent mark, but remain elevated.When examining the rental market, the vacancy rate is often overlooked. In this

Continue Reading24 Aug 2017

Is the property market at a turning point?

Property seekers were keen to find out more about the Kingsford Waterbay project in Upper Serangoon.A recent seminar by PropertyGuru addressed the current state of the residential market, and what buy

Continue Reading24 Aug 2017