Singapore is targeting the increasing number of Middle East investors that are expanding beyond their shores, by promoting the city-state's pro-business environment, high levels of transparency, strong economic fundamentals, high quality of life and its highly-educated and cosmopolitan workforce at this year's Cityscape Dubai.
A Singapore Pavilion, led by the nation's land use planning authority - the Urban Redevelopment Authority - will be at Cityscape Dubai to promote Singapore as an attractive city to invest, live, work and play in. The Singapore Pavilion comprises a mix of public-private companies, will jointly present Singapore's exciting real estate scene, its future downtown, as well as several prime real estate development projects. Please see Annex 1 for the list of private development projects exhibited.
Middle Eastern - Singapore links
Middle East companies are interested in Singapore due to the burgeoning trade and political relationship between the two regions, Singapore's location at the crossroads of the India and China super-economies and the city-state's stable social and political environment. More than 250 Middle East companies currently have operations based in Singapore. There is also an increasing Middle East presence in Singapore's real estate market, from individuals buying private homes to equity funds investing in mega development projects.
Mr Choy Chan Pong, the Director of the Urban Redevelopment Authority, Singapore said Singapore was aiming to attract a slice of the US$13 billion that Arab Gulf investors ploughed into real estate around the world in 2006. "Our objective is to highlight Singapore as a viable, valuable investment option. We are already seeing an upsurge in interest and a number of Middle East investors targeting opportunities in Singapore. "
A recent foray by a Middle East entity into Singapore's real estate is the Dubai-based Istithmar Group. The Istithmar Group is owned by the Dubai World consortium, whose investments include The Palm, Dubai. Partnering local developer City Developments Ltd and the North American based El-Ad Group, the consortium recently successfully tendered SGD$1.689 billion (US$1.126 billion) for a prominent 3.5ha commercial site at Beach Road. The estimated SGD$2.7 billion (US$1.8 billion) project called South Beach will feature a high-quality mix of prime office space, two luxury hotels, retail and residences.
Singapore - a vibrant, global city
Singapore's competitive advantage centres on its business efficiency, cosmopolitan and highly-skilled people and its livability. Indeed, the city-state has maintained its number one spot as the best place to do business, according to a World Bank survey this year. Singapore also remains one of the most liveable cities in the world. In a global 'quality of life' survey conducted by Monocle, a European-based lifestyle magazine, Singapore ranks 17 in the list of 20 best cities in the world to live in. It is the only Asian city in the list, outside of Japan.
"Being a small city-state, planning for development is critical to sustain our economic growth. Singapore adopts an integrated and long-term approach to land use planning, and this process enhances the commercial attractiveness of development and enhances real estate values", says Mr Choy.
Singapore's future downtown, Marina Bay, is a prime example of how attractive plans can generate real estate investment opportunities and raise real estate values. Extending seamlessly from the existing Central Business District, Marina Bay is the centrepiece of Singapore's urban transformation. Marina Bay is planned to be more than just a business and financial centre, offering a wide range of quality residential, shopping, dining, and entertainment facilities, with a necklace of public attractions framing the bay within a lush green environment.
To date, Marina Bay has attracted around SGD$15 billion (US$10 billion) worth of investments from international developers including the Marina Bay Sands Integrated Resort, prime commercial developments such as One Raffles Quay, Marina Bay Financial Centre and South Beach and high-quality residential developments. See Annex 2 for details on Marina Bay.
Singapore's buoyant real estate
Singapore's strong economic fundamentals continue to underpin its attractiveness as an exciting real estate investment location. Its real estate market is however, not only limited to developments and investments in physical assets.
Singapore's REITs market has experienced exponential growth since the launch of the first REITs in 2002, and is now Asia's second largest REITs market. Eighteen REITs are listed on the Singapore stock exchange and more are in the pipeline.
Mr Choy said Singapore REITs market offers attractive and stable returns for investors looking for real estate exposure in Singapore, as well as the rest of the Asia Pacific region. Singapore's REITs present a well-balanced variety of asset types including office, retail, industrial, hospitality and healthcare, and had a total market capitalization of around SGD$30.2 billion (US$20.1 billion). See Annex 3 on details of Singapore's real estate.
City of opportunities
The Singapore Government's vision is to make Singapore a vibrant, global economy, while maintaining the City in a Garden environment with exciting developments, distinctive architecture and attractive public spaces. As Mr Choy says, "Investors can look forward to opportunities to realise this very exciting vision for Singapore in the next five to 10 years."
-Ends-
For media enquiries:
Aida Tay
Public Relations Manager
Urban Redevelopment Authority
Email: aida_tay@ura.gov.sg
Mobile: (65) 9633 7443
© Press Release 2007
