Singapore Real Estate
FLASH: URA private home index falls 0.2% qoq in Q2 2023, smaller decline than 0.4% drop reflected in flash estimate
There was some buzz on Friday (Jul 28) morning from Urban Redevelopment Authority (URA) data showing that the official private home price index in the second quarter had slipped 0.2 per cent, less than the 0.4 per cent decline shown in the flash estimate released earlier this month.
https://www.businesstimes.com.sg/property/flash-ura-private-home-index-falls-02-qoq-q2-2023-smaller-decline-04-drop-reflected-flash
https://www.straitstimes.com/business/private-home-prices-snap-three-year-growth-streak-down-02-per-cent-in-q2
https://www.todayonline.com/singapore/private-home-prices-singapore-fall-02-second-quarter-first-dip-3-years-2221366
https://www.channelnewsasia.com/singapore/private-home-prices-fall-second-quarter-2023-first-dip-3-years-ura-3660421
https://www.edgeprop.sg/property-news/private-housing-prices-down-02-q-o-q-2q2023-first-decline-1q2020
https://www.scmp.com/news/asia/southeast-asia/article/3229211/singapore-home-prices-fall-1st-time-3-years-red-hot-pace-slows
Demand for industrial space remains healthy; prices, rents continue rising in Q2: JTC
Prices and rents of Singapore industrial spaces continued their upward trend in the second quarter of 2023 despite overall inflationary pressures, based on JTC’s quarterly market report released on Thursday (Jul 27).
https://www.businesstimes.com.sg/property/demand-industrial-space-remains-healthy-prices-rents-continue-rising-q2-jtc
Company in auto trade exercises option to buy Sime Darby Business Centre for S$68 million
Sime Darby Business Centre at 315 Alexandra Road, next to the Ikea store, could change hands for S$68 million. This works out to about S$380 per square foot (psf) on the existing gross floor area (GFA) of nearly 179,190 square feet (sq ft).
https://www.businesstimes.com.sg/property/company-auto-trade-exercises-option-buy-sime-darby-business-centre-s68-million
Singapore Economy
Analysis: S’pore loan interest rates set to plateau soon even after US Fed raises key rate to highest since 2001
Singapore interest rates are not set by the central bank here, and tend to broadly follow trends set in global money markets, especially that of the US, the world’s largest economy. Interest rates affect the cost of borrowing money for a range of purposes including buying homes and cars. Businesses also borrow money to expand their operations, for example.
https://www.todayonline.com/singapore/analysis-interest-rates-peak-soon-us-fed-rate-hike-2001-2220636
Singapore’s factory output contracts at slower pace in June, beating expectations
Singapore’s factory output fell 4.9 per cent year on year in June, contracting at a slower rate than a month ago as the electronics segment recorded a smaller decline, data from the Singapore Economic Development Board (EDB) showed on Wednesday (Jul 26).
https://www.businesstimes.com.sg/singapore/singapores-factory-output-contracts-slower-pace-june-beating-expectations
Employment growth loses steam in Q2; wage hike plans, hiring also ease: MOM
Singapore’s employment levels expanded in the second quarter of 2023, but at a much slower pace than before, in signs that labour demand is cooling. Total employment – excluding migrant domestic workers – rose by 23,700 in Q2, the Ministry of Manpower (MOM) said in a preliminary report on Thursday (Jul 27).
https://www.businesstimes.com.sg/singapore/employment-growth-loses-steam-q2-wage-hike-plans-hiring-also-ease-mom
https://www.straitstimes.com/singapore/jobs/retrenchments-in-s-pore-decline-for-first-time-in-a-year-but-signs-of-cooling-labour-market-persist
https://www.todayonline.com/singapore/retrenchments-down-after-3-quarters-increases-unemployment-rates-remain-low-mom-2220441
https://www.channelnewsasia.com/singapore/mom-labour-market-advance-release-q2-2023-retrenchments-down-unemployment-low-3657801
Companies’ Brief
CapitaLand Ascott Trust posts 31% higher H1 gross profit at S$154.4 million
CapitaLand Ascott Trust’s (Clas) gross profit for the first half ended Jun 30 rose 31 per cent year on year to S$154.4 million. Its results were boosted by contributions from new acquisitions and stronger operating performance as travel continued to pick up pace.
https://www.businesstimes.com.sg/companies-markets/capitaland-ascott-trust-posts-31-higher-h1-gross-profit-s1544-million
https://www.theedgesingapore.com/capital/results/clas-reports-1hfy2023-distribution-278-cents-19-y-o-y
CDLHT posts 23% rise in H1 DPS on improved portfolio performance
CDL Hospitality Trusts (CDLHT) posted a 23 per cent rise in distribution per stapled security of S$0.0251 for the first half ended June, from S$0.0204 in the previous corresponding period. The rise came as gross revenue and net property income grew amid recovery in international travel, leading to improvements in CDLHT’s portfolio markets, its managers said on Friday (Jul 28).
https://www.businesstimes.com.sg/companies-markets/cdlht-posts-23-rise-h1-dps-improved-portfolio-performance
https://www.theedgesingapore.com/capital/results/cdlht-reports-23-y-o-y-surge-1hfy2023-dps-251-cents
Far East Hospitality Trust’s H1 DPS up 24.7% to S$0.0192
Far East Hospitality Trust’s (FEHT) distribution per stapled security (DPS) for the first half ended June rose 24.7 per cent to S$0.0192, from S$0.0154 the previous year. This came as distribution to stapled securityholders grew 25.6 per cent year-on-year to S$38.4 million on the back of higher net property income (NPI), and the distribution of other gains from the trust’s recent divestment of Central Square, said its manager on Friday (Jul 28).
https://www.businesstimes.com.sg/companies-markets/far-east-hospitality-trusts-h1-dps-247-s00192
https://www.theedgesingapore.com/capital/results/far-east-hospitality-trust-reports-dps-192-cents-1hfy2023-247-y-o-y
Keppel Corp H1 profit rises to over S$3.6 billion, highest in 55-year history
Keppel Corporation reported on Thursday (Jul 27) its highest profit on record in its 55-year history, underpinned by a S$3.3 billion disposal gain from the divestment of its offshore and marine (O&M) business.
https://www.businesstimes.com.sg/companies-markets/keppel-corp-h1-profit-rises-over-s36-billion-highest-55-year-history
https://www.straitstimes.com/business/keppel-nets-over-36-billion-net-profit-for-1h2023-highest-in-55-year-history
https://www.channelnewsasia.com/business/keppels-h1-profit-soars-seven-fold-one-gain-om-unit-sale-3658491
https://www.theedgesingapore.com/capital/results/sale-offshore-and-marine-unit-lifts-keppel-corps-1hfy2023-earnings-record-36-billion
Starhill Global Reit’s H2 DPU drops 2% to S$0.0198
The manager of Starhill Global real estate investment trust (Reit) has declared a distribution per unit of S$0.0198 for the second half of its current financial year (FY2022/2023), a 2 per cent drop from the DPU of S$0.0202 in the year-ago period.
https://www.businesstimes.com.sg/companies-markets/starhill-global-reits-h2-dpu-drops-2-s00198
https://www.theedgesingapore.com/capital/results/starhill-global-reit-reports-2hfy20222023-dpu-198-cents-down-20-y-o-y
Global Economy & Real Estate
Global central banks begin policy shift as inflation cools
https://www.businesstimes.com.sg/international/global-central-banks-begin-policy-shift-inflation-cools
US Fed is likely done with rate hikes, but that doesn’t mean a strong rebound in Asian currencies
https://www.straitstimes.com/business/us-fed-is-likely-done-with-rate-hikes-but-that-doesn-t-mean-a-strong-rebound-in-asian-currencies
Fed chief Powell has reason to celebrate as US inflation continues to moderate
https://www.businesstimes.com.sg/companies-markets/fed-chief-powell-has-reason-celebrate-us-inflation-continues-moderate
US pending home sales rise for first time since February
https://www.businesstimes.com.sg/property/us-pending-home-sales-rise-first-time-february
US homeowner equity climbs to a record high
https://www.businesstimes.com.sg/property/us-homeowner-equity-climbs-record-high
US economic growth accelerates in Q2; weekly jobless claims fall
https://www.businesstimes.com.sg/international/us-economic-growth-accelerates-q2-weekly-jobless-claims-fall
https://www.channelnewsasia.com/business/us-economy-gdp-growth-recession-fed-interest-rate-3659066
With US interest rates at a 22-year high, how will Beijing’s new central bank chief counter the toll on China?
https://www.scmp.com/economy/china-economy/article/3229153/us-interest-rates-22-year-high-how-will-beijings-new
central-bank-chief-counter-toll-china
ECB raises rates to 23-year high; keeps options open for September
https://www.businesstimes.com.sg/international/ecb-raises-rates-23-year-high-keeps-options-open-september
https://www.straitstimes.com/business/economy/ecb-raises-key-rate-to-historic-high-keeps-options-open
https://www.channelnewsasia.com/business/ecb-lifts-key-rate-highest-early-2001-inflation-fight-3658986
ECB scraps interest on minimum reserve in hit to bank income
https://www.businesstimes.com.sg/international/ecb-scraps-interest-minimum-reserve-hit-bank-income
Hong Kong home prices ease in June for a second straight month
https://www.businesstimes.com.sg/property/hong-kong-home-prices-ease-june-second-straight-month
https://www.channelnewsasia.com/business/hong-kong-home-prices-ease-june-second-straight-month-3657841
https://www.scmp.com/business/article/3229100/hong-kong-home-prices-fall-again-june-interest-rate-hikes-mortgage-pain-new-supply-undermine-market
Hong Kong’s banks raise prime rates after city’s funding cost soars to 16-year high as US Fed leaves the door open for more inflation-busting moves
https://www.scmp.com/business/article/3229063/hong-kong-raises-base-rate-quarter-point-16-year-high-lockstep-us-fed-america-resumes-inflation
Hong Kong’s Far East Consortium puts 2 Ritz-Carlton hotels in Australia on sale as it looks to ‘recycle capital’, build own Dorsett brand
https://www.scmp.com/business/article/3229078/hong-kongs-far-east-consortium-puts-2-ritz-carlton-hotels-australia-sale-it-looks-recycle-capital
HSBC to raise prime lending rate to 5.875% after Hong Kong rate hike
https://www.channelnewsasia.com/business/hsbc-raise-prime-lending-rate-5875-after-hong-kong-rate-hike-3657921
Japan property lures Singapore investors on Osaka casino bet
https://www.businesstimes.com.sg/international/global/japan-property-lures-singapore-investors-osaka-casino-bet
https://www.straitstimes.com/business/singapore-investors-head-for-property-in-japan-on-weaker-yen-osaka-casino-resort-bet
https://www.scmp.com/news/asia/east-asia/article/3229074/weaker-yen-osaka-casino-bet-spark-singapore-property-investors-rush-japan
Inflation in Japan’s capital slows in July, stays above BOJ target
https://www.channelnewsasia.com/business/inflation-japans-capital-slows-july-stays-above-boj-target-3660331
https://www.businesstimes.com.sg/international/inflation-japans-capital-slows-july-stays-above-boj-target
London rent increases starting to slow
https://www.businesstimes.com.sg/property/london-rent-increases-starting-slow
Anwar unveils new economic framework to reboot Malaysia’s economy
https://www.businesstimes.com.sg/international/asean/anwar-unveils-new-economic-framework-reboot-malaysias-economy
https://www.straitstimes.com/asia/se-asia/anwar-unveils-plan-to-raise-wages-boost-malaysia-s-economy-ahead-of-state-elections
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