DAILY NEWS

Daily News – 1st March 2019

Singapore Real Estate

URA launches tender for Clementi Avenue 1 residential site
The Urban Redevelopment Authority (URA) has launched a public tender for a 99-year residential site at Clementi Avenue 1, under the Confirmed List of the first half 2019 Government Land Sales (H1 2019 GLS) programme. The site has a permissible gross floor area (GFA) of 57,900 square metres on 16,542.7 sq m of land, which works out to a gross plot ratio of about 3.5 times.
https://www.businesstimes.com.sg/real-estate/ura-launches-tender-for-clementi-avenue-1-residential-site-0
https://www.straitstimes.com/business/property/ura-launches-tender-for-clementi-ave-1-residential-site

Development charges for hotel use jump 45.6%
Amid waning interest in private residential developments sites following last July’s cooling measures, development charge (DC) rates for non-landed residential use have been lowered for the first time in three years. In contrast, DC rates for hotel and commercial use – areas that have been hotbeds of investor interest – continue to rise.
https://www.businesstimes.com.sg/real-estate/development-charges-for-hotel-use-jump-456
https://www.straitstimes.com/business/property/development-charge-rates-cut-for-non-landed-residential-use

Property tax better form of wealth tax for Singapore: Heng Swee Keat
Wealth taxes should ideally target fixed assets like property instead of levying inheritances or other holdings as most household wealth here is held in the form of property, said Finance Minister Heng Swee Keat. Mr Heng, who was addressing calls from MPs for alternative taxes to levy on the well-off, told Parliament yesterday: “What works best depends on the country’s overall tax system, and broader economic and social circumstances.”
https://www.straitstimes.com/politics/property-tax-better-form-of-wealth-tax-for-singapore-heng

Orange Valley’s daycare centre opens at Balestier
Private operator Orange Valley Nursing Homes will provide daycare for seniors from today, starting with its centre in Balestier. In a statement, the operator said it will be introducing its new Longevity Day Care Programme for seniors at its six-storey Orange Valley Balestier Care Centre.
https://www.straitstimes.com/singapore/orange-valleys-daycare-centre-opens-at-balestier

Singapore Economy

Govt needs mix of one-off funding and structural increases
One-off surpluses are not a substitute for the goods and services tax (GST) hike which is needed to support structural spending increases, said Finance Minister Heng Swee Keat. To meet growing fiscal demands, the government must use “the right tools for the right needs”, he said.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2019/govt-needs-mix-of-one-off-funding-and-structural-increases
https://www.straitstimes.com/politics/house-passes-budget-targeted-at-building-strong-united-singapore
https://www.straitstimes.com/politics/no-decision-yet-on-exact-timing-of-gst-increase
https://www.straitstimes.com/politics/tiered-gst-less-efficient-and-difficult-to-implement-says-minister
https://www.straitstimes.com/politics/unexpected-budget-surpluses-due-mostly-to-volatilities-heng
https://www.todayonline.com/singapore/explainer-why-borrow-when-you-have-budget-surplus
https://www.todayonline.com/singapore/overheard-parliament-best-and-more-forgettable-quotes-budget-cos-debates-feb-28
https://www.channelnewsasia.com/news/singapore/budget-2019-heng-swee-keat-explains-gst-hike-reasons-11297722

January bank lending slips on mortgage weakness
Bank lending in Singapore slipped in January from a month ago, reflecting weaker mortgage activity as the chill from property cooling measures continue to bite. Loans through the domestic banking unit – which captures lending in all currencies, but reflects mainly Singapore-dollar lending – stood at S$671.21 billion, down slightly by S$524 million from S$671.74 billion.
https://www.businesstimes.com.sg/government-economy/january-bank-lending-slips-on-mortgage-weakness

Singapore’s total fertility rate continues to dip, but citizen births and marriages are up
How Singapore can build a sustainable population in light of its ageing demographic was foremost on the minds of various Members of Parliament (MPs) on Day 1 of the Committee of Supply (COS) debates on Thursday. MP Vikram Nair, for example, wanted to know why Singapore’s total fertility rate (TFR) has continued falling despite efforts to arrest it.
https://www.businesstimes.com.sg/government-economy/singapores-total-fertility-rate-continues-to-dip-but-citizen-births-and-marriages

Companies’ Brief

FCT to buy 17.1% stake in PGIM Real Estate Fund for S$342.5m
Frasers Centrepoint Trust (FCT) has entered into agreements to acquire a 17.1 per cent stake in PGIM Real Estate Asia Retail Fund Ltd for about S$342.5 million, subject to determination of the dividend amount payable in respect of the sale shares for the fourth quarter of 2018.
https://www.businesstimes.com.sg/real-estate/fct-to-buy-171-stake-in-pgim-real-estate-fund-for-s3425m
https://www.straitstimes.com/business/companies-markets/frasers-centrepoint-trust-to-buy-171-stake-in-pgim-real-estate-fund-for

Hongkong Land full-year earnings rise 9% to US$1.04b
Hongkong Land, a member of the Jardine Matheson Group, saw full-year earnings rise in 2018, boosted by higher property rents and its property development business in China and Singapore. Underlying profit attributable to shareholders hit US$1.04 billion in 2018, up 9 per cent from US$947 million in 2017.
https://www.businesstimes.com.sg/companies-markets/hongkong-land-full-year-earnings-rise-9-to-us104b

Amara Holdings’ fiscal 2018 earnings up 35%
Singapore – Amara Holdings reported a 35 per cent jump in fiscal 2018 profit to $32.0 million from $23.7 million the previous year. Earnings per share was 5.56 cents, up from 4.12 cents.
https://www.straitstimes.com/business/companies-markets/amara-holdings-fiscal-2018-earnings-up-35

Oxley confident of repaying S$1.6b debt due in next three years
Oxley Holdings’ executive chairman and chief executive officer Ching Chiat Kwong is confident that the property developer can pay off its S$1.6 billion in debt due in the next three years through the sale of its completed projects, local and overseas, as well as a steady stream of asset disposals.
https://www.businesstimes.com.sg/companies-markets/oxley-confident-of-repaying-s16b-debt-due-in-next-three-years

Fragrance FY net profit up more than 5 times
Property developer Fragrance Group’s net profit for its fiscal 2018 ended Dec 31 more than quintupled to S$266.0 million, from S$48.5 million in the previous year. For the 12 months ended Dec 31, revenue jumped 64.7 per cent to S$326.2 million from the previous year, from its sale of 555 Collins Street in Melbourne. Fragrance had completed the sale for A$140m (S$134.7 million) in 2018.
https://www.businesstimes.com.sg/companies-markets/fragrance-fy-net-profit-up-more-than-5-times

Bulk of Sim Leisure Group’s IPO proceeds of S$5.81m to be used to redeem pref shares
Sim Leisure Group’s (SLG) debut on the Singapore Exchange’s Catalist board today will see investors express how they feel about the bulk of its initial public offering (IPO) money going into redemption of S$5.6 million in preference shares.
https://www.businesstimes.com.sg/companies-markets/bulk-of-sim-leisure-groups-ipo-proceeds-of-s581m-to-be-used-to-redeem-pref-shares

Hong Fok full-year profit up 6%; to pay 1.3 cents per share dividend
Singapore – Property developer Hong Fok reported a net profit of $188.9 million for fiscal 2018 ended Dec 31, a 6 per cent increase from $178.1 million for FY2017. Earnings per share was 27.26 cents, up from 25.69 cents. Hong Fok shares closed flat at $0.70 on Thursday (Feb 28).
https://www.straitstimes.com/business/companies-markets/hong-fok-fy2018-profit-up-6-to-pay-out-dividend-of-13-singapore
https://www.businesstimes.com.sg/companies-markets/hong-fok-fy2018-profit-up-6-to-pay-out-dividend-of-13-singapore-centsshare

Views, Reviews, Forum & Others

Alexandra Central Mall to replace all glass doors after accident
Alexandra Central Mall will replace all its glass doors after an accident on Sunday that left a woman severely injured, the shopping centre said yesterday. The woman suffered injuries to her head, legs and pelvis and sustained internal bleeding after the glass door at the building’s fourth-floor carpark lift lobby fell on her, Chinese-language paper Shin Min Daily News reported earlier.
https://www.straitstimes.com/singapore/mall-to-replace-all-glass-doors-after-accident