DAILY NEWS

Daily News – 18, 19 & 20 Jun 2022 (Sat, Sun & Mon)

Singapore Real Estate

En bloc candidate Chuan Park receives EOI of S$860m, lower than reserve price
En Bloc hopeful Chuan Park, which is currently in a private treaty period, has received an expression of interest (EOI) from a developer for S$860 million, below its reserve price of S$938 million.
https://www.businesstimes.com.sg/real-estate/en-bloc-candidate-chuan-park-receives-eoi-of-s860m-lower-than-reserve-price

Certifications for smart features could help buildings stand out from the crowd
While nascent in Singapore, digital and smart certifications of buildings could present a competitive advantage for commercial landlords by improving marketability, analysts said. As awareness grows, tenants such as multi-national corporations (MNCs) as well as firms in the finance and tech sectors, in particular, could look to such certifications for validation as they secure office space.
https://www.businesstimes.com.sg/real-estate/certifications-for-smart-features-could-help-buildings-stand-out-from-the-crowd

What property buyers in Singapore need to know about the tax regime
Singapore – Many people buy a home jointly because they can secure a bigger mortgage based on their combined earnings, but there are possible hitches to watch out for.
https://www.straitstimes.com/business/invest/what-property-buyers-need-to-know-about-the-tax-regime

The risks of buying properties in 99-to-1 share
Singapore – Impose a tax and it’s pretty certain someone will devise a loophole, as is happening here, with crafty investors avoiding an anti-property speculation levy by allowing one buyer to own 99 per cent of a home while the other holds just 1 per cent.
https://www.straitstimes.com/business/invest/the-risks-of-buying-properties-in-99-to-1-share

Agencies strive to boost headcount – but up to half of 30,000 agents may be dormant
There are over 30,000 registered property agents in Singapore, but the number may be misleading as some estimate that as many as half of all agents could be dormant. This comes amid intense competition among real estate agencies to boost headcounts because developers tend to engage the bigger agencies to market their projects.
https://www.businesstimes.com.sg/real-estate/agencies-strive-to-boost-headcount-but-up-to-half-of-30000-agents-may-be-dormant

Change in minimum occupation period criteria for Sers replacement flats
Buyers of replacement Housing Board (HDB) flats under the Selective En bloc Redevelopment Scheme (Sers) will now only be able to sell their units five years from the date of collecting the keys, starting with the Ang Mo Kio Sers site.
https://www.businesstimes.com.sg/real-estate/change-in-minimum-occupation-period-criteria-for-sers-replacement-flats
https://www.straitstimes.com/singapore/housing/change-in-hdbs-minimum-occupation-period-criteria-for-sers-replacement-flats-starting-with-ang-mo-kio-site

Singapore Economy

Big reset for Singapore hotel industry as it welcomes post-Covid-19 recovery
Singapore – The hotel industry here is rejuvenating itself to make room for guests looking for new experiences, as global visitors return amid the reopening of borders.
https://www.straitstimes.com/singapore/big-reset-for-hotel-industry-as-it-welcomes-post-covid-19-recovery

ST Explains: What higher rates mean for inflation, the economy and loans
Singapore – Investors and consumers have had to grapple with the three Rs – rising prices, rising interest rates and the dreaded recession – for the past few weeks.
https://www.straitstimes.com/business/economy/st-explains-what-higher-rates-mean-for-inflation-the-economy-and-your-loans

Fed rate hikes spell trouble for investors
There is no easy way to say this. Everything is going to fall, and there is really nowhere to hide. The US Federal Reserve’s quantitative tightening and interest rate hikes are weighing down global asset prices across the risk spectrum, and may well trigger pockets of instability in some corners of the market. Meanwhile, the value of cash is being eroded by inflation.
https://www.businesstimes.com.sg/opinion/fed-rate-hikes-spell-trouble-for-investors

Are Reits with overseas assets underappreciated in Singapore?
A real estate investment trust (Reit) is an investment vehicle that pools capital together to invest in income-generating real estate assets, which are illiquid, immobile, and lumpy. A Reit is structured to facilitate efficient flow-through of income generated from physical real estate directly to investors.
https://www.businesstimes.com.sg/opinion/are-reits-with-overseas-assets-underappreciated-in-singapore

Companies’ Brief

APAC Realty Q1 FY2022 earnings grow 20 per cent even as transactions fall
Mainboard-listed real estate services provider APAC Realty reported a 20 per cent growth in net profit to S$9 million for Q1FY2022 ending Mar 31 from S$7 million a year prior, in a business update released after market close on Friday (Jun 17).
https://www.businesstimes.com.sg/companies-markets/apac-realty-q1-fy2022-earnings-grow-20-per-cent-even-as-transactions-fall

Robot developed with S’pore partners helps Kajima stay on track for regional HQ’s completion
Singapore – With the help of a concrete finishing robot, Japanese construction firm Kajima Corp said its regional headquarters in Changi is on target to be completed in the first quarter of next year, despite manpower shortages amid the Covid-19 pandemic.
https://www.straitstimes.com/singapore/robot-developed-with-spore-partners-helps-kajima-stay-on-track-for-regional-hqs-completion

Lendlease to establish S$1b partnership with Dutch pension fund manager PGGM
Australia-listed real estate group Lendlease announced on Monday (Jun 20) that it will be entering into a partnership agreement with PGGM, a pension fund manager based in the Netherlands, with an investment of S$1 billion.
https://www.businesstimes.com.sg/real-estate/lendlease-to-establish-s1b-partnership-with-dutch-pension-fund-manager-pggm

Merger of MCT and MNACT creates pathway for growth
The ongoing merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) is on track to create one of the top 10 largest Reits in Asia. The merged entity, Mapletree Pan Asia Commercial Trust (MPACT) will have an estimated market capitalisation of over S$10 billion and will hold a diversified portfolio of 18 commercial assets across Singapore…
https://www.businesstimes.com.sg/companies-markets/merger-of-mct-and-mnact-creates-pathway-for-growth

SIAS urges Hwa Hong shareholders to hold decision on privatisation offer
The Securities Investors Association (Singapore), or Sias, on Friday (Jun 17) urged Hwa Hong’s shareholders to await more information from Hwa Hong’s management before deciding on the company’s offer to privatise.
https://www.businesstimes.com.sg/companies-markets/sias-urges-hwa-hong-shareholders-to-hold-decision-on-privatisation-offer

Views, Reviews, Forum and Others

The tricky restructuring of global supply chains
Three years ago The Economist used the term “slowbalisation” to describe the fragile state of international trade and commerce. After the go-go 1990s and 2000s the pace of economic integration stalled in the 2010s, as firms grappled with the aftershocks of a financial crisis, a populist revolt against open borders and president Donald Trump’s trade war.
https://www.straitstimes.com/opinion/the-tricky-restructuring-of-global-supply-chains

Why relocating Chinese see S’pore as a safe haven for their businesses and property
Beijing (Caixin Global) – When Chen Xi and her family searched for their first home in Singapore after relocating from Beijing, they realized their budget for the right kind of property would need to be a lot higher.
https://www.straitstimes.com/asia/east-asia/why-relocating-chinese-see-spore-as-a-safe-haven-for-their-businesses-and-property

Wealthy Chinese setting up family offices in Singapore see it as springboard to Asean
In the first of a 7-part BT-Lianhe Zaobao series on China and Asean, we look at the trend of high net worth Chinese investors coming to Singapore to set up family offices and invest in startups.
https://www.businesstimes.com.sg/asean-business/wealthy-chinese-setting-up-family-offices-in-singapore-see-it-as-springboard-to-asean