DAILY NEWS

Daily News – 28 October 2021 (Thu)

Singapore Real Estate

Choon Kim House up for collective sale again; owners hope to fetch S$55m
Freehold property Choon Kim House is being offered for collective sale by tender by its owners for the third time. The latest tender closes Dec 15, 2021. In a press statement dated Oct 13, marketing agent ERA Realty said owners of the four-storey mixed-use building believe they “may be able to whet market appetite” at about S$55 million with applicable GST (goods and services tax).
https://www.businesstimes.com.sg/real-estate/choon-kim-house-up-for-collective-sale-again-owners-hope-to-fetch-s55m

First BTO project in Rochor under new prime housing model to launch in November
Singapore – The first project under a new model for public housing in prime locations will be built in Rochor and launched at the Build-to-Order (BTO) exercise next month. The project will have a mix of 960 three-room and four-room flats, and also include 40 two-room rental flats, as part of efforts to make living in prime areas accessible to all.
https://www.straitstimes.com/singapore/housing/first-bto-project-in-rochor-under-new-prime-housing-model-to-launch-in-november

New rules for prime HDB flats not likely to impact private market: analysts
The new prime-location public housing (PLH) model is likely to have little impact on private residential demand, analysts say. This is because the two serve different market segments. Announced by the Ministry of National Development (MND) and the Housing Development Board (HDB) in a joint statement on Wednesday (27 Oct), the model aims at keeping prime HDB flats affordable and inclusive.
https://www.businesstimes.com.sg/real-estate/new-rules-for-prime-hdb-flats-not-likely-to-impact-private-market-analysts

Lottery effect of prime location housing may be tamed, but not for existing prime flats
Singapore – A new public housing model to keep flats in prime locations affordable may well succeed in taming the “lottery effect” or excessive windfall gains when such flats are resold. This is because conditions such as additional subsidy clawbacks and a longer minimum occupation period (MOP) may make them less attractive.
https://www.straitstimes.com/business/property/lottery-effect-of-prime-location-housing-may-be-tamed-but-not-for-existing-prime
https://www.straitstimes.com/singapore/housing/subsidy-clawback-10-year-mop-for-new-prime-location-hdb-flats-to-keep-them
https://www.straitstimes.com/singapore/housing/home-seekers-see-benefits-of-10-year-mop-limitations-on-resale-buyers-for-new

What is HDB’s prime location public housing model? Will The Pinnacle@Duxton be affected?
Singapore – Future Housing Board (HDB) flats in certain locations will be subject to tighter buying and selling conditions under a new prime location public housing (PLH) model. The PLH model is aimed at keeping future HDB flats in prime, central locations affordable and inclusive.
https://www.straitstimes.com/singapore/housing/what-is-hdbs-prime-location-public-housing-model-will-the-pinnacleduxton-be

Overseas offices, industrial properties dominate S-Reits’ acquisitions
Despite pandemic headwinds, Singapore-listed real estate investment trusts (S-Reits) have continued to scoop up high-quality assets, with a focus on office properties and data centres located abroad.
https://www.businesstimes.com.sg/real-estate/overseas-offices-industrial-properties-dominate-s-reits-acquisitions

Singapore Economy

Conducive strategic environment, stability, key to countries’ pandemic recovery, says PM Lee
As Asean and its partners adapt to live with Covid-19, they will only be able to fully recover within a conducive strategic environment, Prime Minister Lee Hsien Loong told an annual gathering of 18 leaders from across the region on Wednesday (Oct 27).
https://www.businesstimes.com.sg/government-economy/conducive-strategic-environment-stability-key-to-countries-pandemic-recovery-says

Companies’ Brief

Amazon’s new 100,000 sq ft corporate office makes it Asia Square’s anchor tenant
Amazon is now the new anchor tenant at Asia Square, with the opening of its 100,000 sq ft Singapore corporate office in the Marina Bay retail and office development. The multinational tech company also plans to create over 200 new jobs in Singapore by end-2022.
https://www.businesstimes.com.sg/technology/amazons-new-100000-sq-ft-corporate-office-makes-it-asia-squares-anchor-tenant
https://www.straitstimes.com/business/companies-markets/amazon-to-create-200-more-jobs-in-singapore-opens-new-office-over-3

Design Studio Group files winding up application
The board of directors of Design Studio Group (DSG) has commenced a winding up application against the company, noting that it is unable to pay its debts and is cash flow insolvent. In line with the compulsory liquidation of the company, its subsidiaries DSG Projects Singapore and DSG Manufacturing Singapore have also commenced processes necessary to enter into creditors’ voluntary liquidation, DSG said in a bourse filing on Wednesday (Oct 27).
https://www.businesstimes.com.sg/companies-markets/design-studio-group-files-winding-up-application
https://www.straitstimes.com/business/companies-markets/design-studio-group-files-winding-up-application

FCT eyes relaxed Covid restrictions to bring shoppers back as retail rental reversion dips
With over a quarter of leases at its portfolio of retail malls due for renewal in the new financial year, Frasers Centrepoint Trust (FCT) is looking forward to improved leasing sentiment with a ”sustainable reopening” of Singapore businesses.
https://www.businesstimes.com.sg/companies-markets/fct-eyes-relaxed-covid-restrictions-to-bring-shoppers-back-as-retail-rental-0

Ascendas India Trust’s Q3 net property income rises 8%
Business park landlord Ascendas India Trust posted an 8 per cent increase in net property income to S$39.9 million for the third quarter ended Sep 30, 2021. Total property income rose 4 per cent to S$48.9 million after income contribution from the Anchor Annex building in Bangalore and the aVance 6 building in Hyderabad.
https://www.businesstimes.com.sg/companies-markets/ascendas-india-trusts-q3-net-property-income-rises-8

ESR Cayman in pursuit of size as markets gravitate towards fewer managers
The proposed merger between ESR-Reit and ARA Logos Logistics Trust is just one piece of the puzzle for ESR Cayman, which is trying to shape itself into the world’s third-largest listed real estate asset manager. Jeffrey Perlman, chairman of ESR Cayman, sees growing opportunities for the world’s biggest players in the real estate management space.
https://www.businesstimes.com.sg/companies-markets/esr-cayman-in-pursuit-of-size-as-markets-gravitate-towards-fewer-managers

Keppel Pacific Oak US Reit posts 8.4% rise in Q3 distributable income
Office-focused Keppel Pacific Oak US Reit (KORE) said its third-quarter distributable income rose 8.4 per cent to US$15.9 million on the back of recent acquisitions and stronger performance from its portfolio. The acquisitions of Bridge Crossing in Nashville, Tennessee, and 105 Edgeview in Denver, Colorado, were completed in August.
https://www.businesstimes.com.sg/companies-markets/keppel-pacific-oak-us-reit-posts-84-rise-in-q3-distributable-income

Work arrangement changes, inflation continue to put pressure on Mapletree Industrial Trust
Mapletree Industrial Trust’s (MIT) manager expects to see continued pressure on the real estate investment trust’s (Reit) topline as tenants usage patterns change due to the pandemic. Additionally, inflation is also expected to have a material impact on MIT’s operating expenditure and margins.
https://www.businesstimes.com.sg/companies-markets/work-arrangement-changes-inflation-continue-to-put-pressure-on-mapletree

Mapletree Commercial Trust’s H1 DPU rises 5.3% as property income climbs by 10.7%
Mapletree Commercial Trust’s gross revenue for the half-year of FY 2022 to September rose by 11.5 per cent, while its net property income improved 10.7 per cent, mainly due to lower rental rebates as well as compensation received from a pre-terminated lease.
https://www.businesstimes.com.sg/companies-markets/mapletree-commercial-trusts-h1-dpu-rises-53-as-property-income-climbs-by-107

Views, Reviews, Forum & Others

Preparing a resilient Singapore for our climate reality
Climate change is a global issue that is seeing no signs of backing down. Each year, millions of people are affected by disasters caused by extreme weather and climate change. Notably, with rapid urbanisation expected to drive almost two-thirds of the global population to live in cities by 2050, cities are inevitably on the frontlines of climate change’s growing risks and challenges.
https://www.businesstimes.com.sg/opinion/preparing-a-resilient-singapore-for-our-climate-reality

No shortcuts to dealing with Covid-19
The Prime Minister recently said that while Singapore cannot go into an indefinite lockdown and stand still due to Covid-19, it also cannot simply “let go and let things rip”. His remark was a vivid one, but his point was simple: the continuing uncertainty and disruption has been hard on everyone, but the responsible thing to do is to get through the pandemic with as few casualties as possible.
https://www.straitstimes.com/opinion/st-editorial/no-shortcuts-to-dealing-with-covid-19

As China sneezes, will Singapore catch its economic cold?
Recent policy and market developments in China are raising the risks of economic contagion in Singapore and the rest of the region, economists now warn. That’s even though the impact has been contained so far, with much of the exposure still limited to the trade and manufacturing sector.
https://www.businesstimes.com.sg/global-enterprise/as-china-sneezes-will-singapore-catch-its-economic-cold

72% of HNW Singapore investors view sustainable investing as ‘highly important’, survey finds
UBS reported on Wednesday (Oct 27) that 72 per cent of Singapore investors view sustainable investing as “highly important”, and more than three-quarters expect the returns from sustainable investing to match or exceed traditional investing.
https://www.businesstimes.com.sg/banking-finance/72-of-hnw-singapore-investors-view-sustainable-investing-as-highly-important-survey

Update on COVID-19 (Coronavirus Disease 2019) Situation

Singapore’s daily Covid cases hit new peak of 5,324; MOH monitoring ‘unusual surge’
[Singapore] There were 5,324 new Covid-19 infections reported on Wednesday (Oct 27), comprising 4,651 new cases in the community, 661 in migrant worker dormitories and 12 imported cases,said the Ministry of Health (MOH).
https://www.businesstimes.com.sg/government-economy/singapores-daily-covid-cases-hit-new-peak-of-5324-moh-monitoring-unusual-surge
https://www.straitstimes.com/singapore/singapore-reports-5324-new-covid-19-cases-moh-monitoring-unusual-surge

S’pore’s expansion of Vaccinated Travel Lane to Switzerland expected to benefit businesses
Singapore – The move to let people from Switzerland tap a scheme for vaccinated travellers to enter Singapore without quarantine will be especially useful for businesses, said experts. The Vaccinated Travel Lane (VTL) for travellers flying in from Switzerland has also been welcomed by the country, which said the move reflects its strong ties with Singapore.
https://www.straitstimes.com/singapore/transport/spores-expansion-of-vaccinated-travel-lane-to-switzerland-expected-to-benefit

*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation