Despite China’s prolonged property downturn, Singapore’s Frasers Property remains cautiously optimistic about opportunities in key cities like Shanghai. The Thai-controlled developer, led by billionaire Charoen Sirivadhanabhakdi’s family, sees potential in prime locations even as it navigates challenges across multiple markets.
The company recently partnered with local firms to acquire a residential plot in Shanghai, signaling selective confidence in China’s commercial hub. While acknowledging broader market risks, executives emphasized Shanghai’s unique position during recent earnings discussions. This strategic move comes as Frasers reported a significant profit surge to S$135.6 million for the first half, driven largely by its resilient Singapore operations.
Singapore’s property rebound has offset struggles in China and Australia, where sales declined sharply. However, rising interest payments and global economic uncertainties continue to pressure margins. The firm’s shares have underperformed Singapore’s real estate index this year, reflecting investor caution toward family-controlled developers following recent corporate governance concerns in the sector.
Frasers faces additional challenges with high leverage and limited public float, as nearly 90% of shares remain with Charoen’s Thailand-based TCC Group. The company has outlined plans to reduce debt while maintaining selective investments in familiar markets. As leadership transitions unfold—including Charoen’s recent retirement—the developer must balance expansion ambitions with financial prudence in an unpredictable economic climate.