A handful of firms, whose core businesses do not run in the property circle, are cashing in on the current boom. From commercial to residential and even in the hotel sector, new players are streaming into the industry hoping to grab a piece of the piping hot pie.
(New players are dabbling in almost all segments of the property market.)
One of them is Ron Sim, founder and chief executive of massage chair house Osim International. Sim recently began submitting bids for commercial lands such as those in Paya Lebar and Punggol, even participating in a joint bid with Perennial Real Estate. He tells The Straits Times that the partnership makes good use of his retail knowledge.
JL Asia Resources, which owns karaoke giant K Box Entertainment Group, cites the bustling economy and tourist sector as reasons for entering the real estate industry. Managing director Jason Lee says, “Demand is high due to rising tourism figures,” adding that it has long been part of the company’s strategy to get into the property scene. It recently joined forces with beauty and spa chain Mary Chia Holdings to open Porcelain Hotel, which also houses a wellness spa.
Even overseas spaces have not been overlooked; electronics distributor Thakral Corp already has stakes in several projects in Sydney and Melbourne.
Insiders say this surge in new players is not a new trend. Past entrants include Singapore Press Holdings and commodity trader Wilmar International. Some, like former PC-maker IPC Corp, have even abandoned their original sectors upon receiving stellar returns. IPC Corp forwent the meagre profits of the technological sector in 2007 and became a full-fledged property player the following year. Now, it has real estate investments in China, Japan and the United States.
Observers explained the attraction: in these booming times, even those with limited knowledge of the ins and outs of real estate can also benefit from the price hikes. Aiding this is the increasing transparency of the property market, giving entrants easy access to information. Like in the cases of Osim International and Mary Chia Holdings, newcomers can also leverage on their expertise in other industries by incorporating elements of their core businesses into their property side-projects.
On property cooling measures, one expert does not foresee a drop in players. “Price predictability may be more difficult, but the current measures ultimately make the market more sustainable, leading to more lasting growth,” he said.
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Related Categories: Market Reviews & Market Outlooks, For Agents, Private Residential, Non-Residential
Tags: commercial property, commercial property trends in Singapore, IPC Corp, JL Asia Resources, K Box, Mary Chia Holdings, Osim, Osim International, Paya Lebar, Perennial Real Estate, players in property sector, Porcelain Hotel, Punggol, residential property trends in Singapore, Ron Sim, Singapore property trends, Thakral Corp, Wilmar International
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