Shrinking development margins push more developers overseas in Q4

Policy easing is not on the cards anytime soon.

Policymakers are unlikely to loosen their grip on the stringent cooling measures which have kept the property market in check. Shrinking profits and development margins in Singapore have pushed more listed developers to venture overseas in their endless quest for yield.

According to UOB Kay Hian, the fourth quarter saw more developers dabbling into overseas projects and diversifying into other asset classes.

For instance, CDL made its maiden foray into Japan with the launch of its ambitious flagship hotel, the 329-room Millennium Mitsui Garden Hotel Tokyo.

Meawnhile, Keppel Land firmed up its development plans for acquisitions in Indonesia, the Philippines, Vietnam, the UK (London) and the US.

CapitaLand is also seeking to strengthen its China and Indonesian portfolios, hinting that it is prepared to expand its exposure in various overseas markets.
 

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