Property submitted the winning bid above S$1 billion (RM3.08 billion) for a land parcel in Stirling Road, the first time that a purely residential site on the GLS programme has exceeded that price quantum.
In May last year, Chinese developer Qingjian Realty bought the 358-unit privatised Housing and Urban Development Co estate Shunfu Ville for S$638 million, marking the first large en bloc deal in nine years.
Within a couple of weeks of the a webcast.
China might no longer get an “A1” rating if there were signs that debt was growing at a pace that exceeded Moody’s expectations, said Li Xiujun, vice-president of credit strategy and standards at the ratings agency, in the same webcast.
Moody’s expects China’s growth to slow to around five per cent in coming years, from 6.7 per cent last year, compounding the difficulty of reducing debt. But Diron said the economy would remain robust, and the likelihood of a hard landing was slim.
Government-led stimulus has been a major driver of China’s economic growth over recent years, but has also been accompanied by runaway credit growth that has created a mountain of debt — now at nearly 300 per Shunfu Ville deal, Qingjian sent in the highest bid of S$301 million for a mixed residential and commercial site in Bukit Batok.
“Along with emerging signs of recovery in Singapore, competition for residential land is set to heighten as both Singaporebased and foreign developers jump on the bandwagon, possibly prompting the unwinding of GLS supply and spurring collective sale activities,” said Alice Tan, director and head of consultancy and research at Knight cent of gross domestic product (GDP).
UBS estimates that government debt, including explicit and quasi-government debt, rose to 68 per cent of GDP last year from 62 per cent in 2015, while corporate debt climbed to 164 per cent of GDP last year from 153 per cent the previous year.
The Moody’s downgrade was seen as largely symbolic because China has relatively little foreign debt and local markets are influenced more by domestic factors.
Still, the rating demotion highlighted investor worries over whether China has the will and ability to contain rising risks stemming from years of creditfuelled stimulus, without triggering financial shocks or dampening economic growth. Reuters Frank Singapore.
Last year, some S$2.6 billion worth of transactions were reported in the Singapore residential GLS space, of which 58 per cent comprised Singapore developers while Japanese investors made up 24 per cent.
However, so far this year, China and Hong Kong developers accounted for S$1.3 billion out of the S$2.1 billion transacted in residential GLS tenders, or a share of 62 per cent, the Knight Frank report showed. Today
From 2012 to last year, Singapore made up 15.4 per cent of total investments by mainland Chinese developers, according to property consultancy Knight Frank.