DAILY NEWS

Daily News – 8th, 9th and 10th July 2017

Top Story

Signs of cheer for property, but don’t break out the bubbly yet
Despite signs that the property market is on an upward trend, it is still too soon to indicate that the market is finally recovering, said Augustine Tan, president of the Real Estate Developers’ Association (Redas) on Friday. At a property market seminar organised by Redas, Mr Tan highlighted the tweaking of cooling measures in March, and active participation by developers in Government Land Sales (GLS) tenders with record high prices as signs that the property market could be on the road to recovery.
http://www.businesstimes.com.sg/real-estate/signs-of-cheer-for-property-but-dont-break-out-the-bubbly-yet
http://www.straitstimes.com/business/property/experts-warn-against-sky-high-bids-for-land
http://www.straitstimes.com/business/property/too-soon-to-say-property-market-is-recovering-edas-chief
http://www.todayonline.com/business/higher-land-bids-will-drive-housing-prices-redas http://www.todayonline.com/business/too-soon-assume-property-market-has-recovered-redas

Singapore Economy

GIC prepares for protracted uncertainty, low returns
At a time of heightened uncertainty and “investor complacency”, Singapore’s sovereign wealth fund GIC is expecting steady long-term returns, and says it has to be prepared to take underperformance against relative benchmarks, with some stretching into several years. The comments came as GIC reported a 20-year annualised real rate of return of 3.7 per cent above global inflation on its portfolio for the period ended March 31, 2017. This is a dip from the 4 per cent in the 20-year annualised real rate of return reported a year ago.
http://www.businesstimes.com.sg/government-economy/gic-prepares-for-protracted-uncertainty-low-returns
http://www.businesstimes.com.sg/companies-markets/gic-still-evaluating-banks-as-investments http://www.straitstimes.com/business/economy/gic-posts-steady-real-returns-of-37-amid-uncertainty?login=true
http://www.todayonline.com/business/cautious-gic-sees-returns-dip-amid-low-yield-environment

Rise in bonds, equities offsets weaker ETFs, Reits in June
The three simulated investment portfolios tracked under the Save & Invest Portfolio Series remain in positive territory since the beginning of this year despite their relative underperformance last month. The series features communications manager Shona Chee, 26; entrepreneur Getty Goh, 38, who is married with two children; and retiree Wang Moo Kee, 62. The Portfolio Series, which was introduced by The Sunday Times in January last year, does not involve actual money as it is intended for the purposes of illustration and education only.
http://www.straitstimes.com/business/invest/rise-in-bonds-equities-offsets-weaker-etfs-reits-in-june

Analysts forecast better showing for Temasek
Temasek Holdings is expected to turn in a stronger set of numbers in its upcoming performance review, with stock markets around the world taking a turn for the better. Analysts say the Singapore investment company’s pivot towards the thriving tech sector will also contribute to a better showing. Temasek is expected to unveil its numbers next week for the financial year ended March 31.
http://www.straitstimes.com/business/economy/analysts-forecast-better-showing-for-temasek?login=true

Singapore Real Estate

Hotel room demand surges as NDP returns to Marina Bay float
As this year’s National Day Parade (NDP) returns to The Float@Marina Bay, a departure from its festivities at the National Stadium last year, hotels in the city area are experiencing a surge in booking rates for the Aug 9 public holiday period, and some of them are also charging a higher premium for rooms compared to the previous year.http://www.businesstimes.com.sg/companies-markets/hotel-room-demand-surges-as-ndp-returns-to-marina-bay-float

Pearl Bank Apartments making 4th attempt for collective sale
After seeing a string of collective sales this year, owners at Pearl Bank Apartments are jumping on the bandwagon – for the fourth time. Owners at the iconic building in Outram have formed a collective sale committee and are asking for a reserve price of $728 million for the 288-unit building.
http://www.straitstimes.com/business/property/pearl-bank-apartments-making-4th-attempt-for-collective-sale

Chevron House owner said to be seeking buyer
Deka Immobilien GmbH, a unit of Germany’s DekaBank Group, is putting up an office building for sale in Singapore’s central business district, according to a person familiar with the matter. The tower, Chevron House, could fetch about S$700 million, said the person, who asked not to be identified because the sale process is private. Deka acquired the property for around US$420 million in 2010 from a property fund managed by Goldman Sachs Group Inc, the company said at the time.
http://www.businesstimes.com.sg/real-estate/chevron-house-owner-said-to-be-seeking-buyer http://www.straitstimes.com/business/property/chevron-house-at-raffles-place-put-up-for-sale-at-around-700-million-report
http://www.straitstimes.com/business/germanys-deka-to-put-chevron-house-on-sale
http://www.todayonline.com/business/chevron-house-raffles-place-sale-around-s700-million-report

Companies’ Brief

Frasers Centrepoint unit to buy 76.5% of German logistics player
A unit of Frasers Centrepoint Limited has agreed to acquire a 76.5 per cent stake, worth 20.5 million euros (S$32.1 million), in a German company that has freehold interest in an automotive logistics facility in Germany. The mainboard-listed real estate company said on Friday in a filing to Singapore Exchange that its indirect subsidiary Geneba Properties NV has, through its wholly owned subsidiary Gene-ba RE19 BV, entered into a conditional agreement to acquire the stake in Harder, Gutperle, Harder & Gutperle GmbH GbR.
http://www.businesstimes.com.sg/companies-markets/frasers-centrepoint-unit-to-buy-765-of-german-logistics-player

Brokers’ Call
CapitaLand Commercial Trust (CCT) announced that it has sold Wilkie Edge for $280 million or $1,812 per square foot (psf), which translates to a 12-month trailing net property income yield of 3.39 per cent. The disposal price is 39.3 per cent above the property’s valuation of $201 million ($1,301 psf) as at Dec 31 last year, and 53.3 per cent above the original purchase price of $182.7 million in 2008.
http://www.straitstimes.com/business/brokers-call-30

Views, Reviews & Forum

Recession not imminent despite economic uncertainty
Economic uncertainty is at a high, but strong market fundamentals may keep recession at bay. Such was the sentiment put forth by DBS speakers at DBS Private Bank’s 2nd Half 2017 Market Outlook on Friday – which saw the likes of DBS Group CEO Piyush Gupta, and Lim Say Boon, chief investment officer, consumer banking group & wealth management, on stage.
http://www.businesstimes.com.sg/companies-markets/recession-not-imminent-despite-economic-uncertainty

S’pore and HK – how they compare
This week’s topic: Twenty years after the handover, how have Hong Kong’s prospects as a financial and business hub grown? How might this impact businesses in Singapore?
http://www.businesstimes.com.sg/views-from-the-top/spore-and-hk-how-they-compare

East Asia’s SMEs gearing up to challenges of new economy
Small and medium-sized enterprises (SMEs) have played a vital role in East Asia’s development. At first, they were traditional handicraft industries, or cottage industries that were mostly found in rural areas. As countries started industrialising, many SMEs also set up shop in urban areas. Some grew rapidly to become “large” industries or even multinationals. To continue to survive, SMEs everywhere will have to adapt and adjust by developing their niche role in the economy.
http://www.straitstimes.com/opinion/east-asias-smes-gearing-up-to-challenges-of-new-economy

Follow your head, not heart, in buying property
Entrepreneur Teng Kenyuan has one rule when it comes to investing in property: Do not be too emotional. “Whether the property is ugly or beautiful does not matter. That can always be corrected through renovation. What matters is whether it suits your requirements.” The 36-year-old believes in not rushing into buying real estate just because something catches his fancy. He likes to tread carefully, sniff around for better deals in the area and negotiate before taking the plunge at the right moment.
http://www.straitstimes.com/business/invest/follow-your-head-not-heart-in-buying-property