DAILY NEWS

Daily News – 12th October 2016

Top Story

Condo resale prices fall to lowest since 2012
Non-landed private residential resale prices fell 0.9 per cent in September to the lowest level in four years since July 2012, while volume slumped 17.7 per cent. According to data compiled by SRX Property, an estimated 683 private condominium and apartment units were resold in September, compared to 830 units resold in August. R’ST Research director Ong Kah Seng said: “The price fall from July to September confirms that resale properties are still facing headwinds due to substantial new residential completions since 2014, and the total debt servicing ratio framework constraining large property loans.”
http://www.businesstimes.com.sg/real-estate/condo-resale-prices-fall-to-lowest-since-2012
http://www.straitstimes.com/business/property/condo-resale-prices-continue-to-slide
http://www.straitstimes.com/business/property/condo-resale-prices-fall-09-in-september-over-august-to-lowest-since-july-2012-srx
http://www.todayonline.com/business/resale-private-home-prices-volume-slide

Singapore Economy

Foreign investors cut back on emerging Asia govt bonds in anticipation of US rate hike
Foreign investors have cut holdings in most emerging Asian government bonds so far this month on expectations that US interest rates will rise in December and that other major central banks will not ease further. South Korea, India and Thailand have suffered outflows so far in October. “The global environment for bonds has become less favourable with major central banks contemplating reducing stimuli,” said Eugene Leow, interest rate strategist for DBS Bank in Singapore.
http://www.businesstimes.com.sg/companies-markets/foreign-investors-cut-back-on-emerging-asia-govt-bonds-in-anticipation-of-us-rate

Shopping patterns in Singapore shift amid slowdown
Singapore’s retail sector is going through a rough patch. As the economy slows, shops are being boarded up and retail rents are falling. And yet, amid this gloom, consumers continue to spend – though there is a shift in the pattern and quantum of their spending. In June, the first month of the Great Singapore Sale, retailer sales were down 3 per cent compared with the same month last year. It is not just tourists who are staying away, but local consumers are also looking more closely at price tags.
http://www.straitstimes.com/business/economy/shopping-patterns-shift-amid-slowdown
http://www.straitstimes.com/singapore/retailers-feel-the-pinch-but-not-beauty-salons?login=true

Singapore Real Estate

Shunfu Ville faces hiccups after sale
The blockbuster $638 million sale of Shunfu Ville sealed in May this year is facing some hurdles. Five unit owners have objected to the collective sale of the estate in Bishan. Also, developer Qingjian Realty (South Pacific) Group, which had hoped to build a project of 30 to 36 storeys, has been told by the Urban Redevelopment Authority (URA) to stick to a 21- to 23-storey limit.
http://www.straitstimes.com/business/property/shunfu-ville-faces-hiccups-after-sale

New Reit ETF attracts strong demand
Investors have enthusiastically jumped on board a new exchange traded fund (ETF) on the local bourse tracking a regional real estate investment trust (Reit) index. The SGX Apac Dividend Leaders Reit ETF had received more than $30 million in orders as of yesterday, data by the fund creator Phillip Capital Management showed. The initial offer period for the ETF, unveiled late last month, runs until 10am tomorrow. It starts trading on the mainboard on Oct 20.
http://www.straitstimes.com/business/invest/new-reit-etf-attracts-strong-demand

Companies’ Brief

Raffles Hotel to undergo 16-month restoration in stages from Jan 2017
The iconic Raffles Hotel Singapore will undergo a 16-month restoration project starting January 2017 – largely to rejuvenate its facilities and interior design. Keen to assure Singaporeans that the almost 130-year-old heritage hotel will retain its unique ambience and charm, Raffles Hotel Singapore general manager Simon Hirst told The Business Times: “From a purely exterior point of view, it will still look just as beautiful as it is today; maybe just a little bit more beautiful. It’ll be refreshed. But the actual shape and form – nothing will be touched.” The move is part of the hotel’s efforts to stay relevant in the long run – especially amid changing traveller demographics, as well as heightened competition in the hospitality space.
http://www.businesstimes.com.sg/real-estate/raffles-hotel-to-undergo-16-month-restoration-in-stages-from-jan-2017
http://www.straitstimes.com/singapore/facelift-for-beach-roads-grand-old-dame
http://www.todayonline.com/business/raffles-hotel-undergo-restoration-works

Metro fends off activist investor eyeing its cash holdings
Property and retail group Metro Holdings said cash in its coffers targeted by an activist investor comes fresh off recent sale of properties, and that the capital is expected to be pumped into new investments. Metro was responding on Tuesday to an open letter in October from hedge fund Quarz Capital Management, which called for a special cash dividend from the company. Metro said Quarz is welcome to attend shareholder meetings and results briefings, where many of the issues raised in the open letter have been raised and considered.
http://www.businesstimes.com.sg/companies-markets/metro-fends-off-activist-investor-eyeing-its-cash-holdings
http://www.businesstimes.com.sg/companies-markets/metro-expects-net-cash-to-decline-as-it-seeks-out-property-developments
http://www.straitstimes.com/business/companies-markets/activist-investor-quarz-urges-metro-holdings-to-return-cash-to

Views, Reviews & Forum

Can’t ease cooling measures with China property bubble, low rates
The local unemployment rate might be ticking higher as the economy slows, and private home prices might continue to drop. But with a potential deflation in China’s property market bubble that could lead to money flowing out of China, along with continued low mortgage costs here, the government should be wary of lifting cooling measures in Singapore’s property market.
http://www.businesstimes.com.sg/opinion/cant-ease-cooling-measures-with-china-property-bubble-low-rates