DAILY NEWS

Daily News – 12 Dec 2019

Singapore Real Estate

Singapore condo rents up in November, HDB rents slip: SRX
Rents for non-landed private homes in Singapore rose in November from the previous month, while those for HDB flats slipped, though both were higher from a year ago. Overall condo rents increased 1.2 per cent from October, and are up by 4.6 per cent year on year. However, they are still 16 per cent below their peak in January 2013.
https://www.businesstimes.com.sg/real-estate/singapore-condo-rents-up-in-november-hdb-rents-slip-srx
https://www.straitstimes.com/business/property/condo-rents-post-biggest-rise-since-jan-but-hdb-figures-dip-srx

Tourist surge to Singapore helps push hotel deals to record
Hotel deals in Singapore are set for a record amid a surge in tourist arrivals buoyed by travellers wanting to avoid the ongoing protests in Hong Kong. Hospitality transaction volumes were an unprecedented US$5.7 billion as of Nov 30, according to preliminary figures from Colliers International. This is about five times the figure in 2018, and the most in at least a decade.
https://www.businesstimes.com.sg/real-estate/tourist-surge-to-singapore-helps-push-hotel-deals-to-record
https://www.straitstimes.com/business/property/tourist-surge-leads-to-record-hotel-deals

Singapore Economy

Analysts see clearer signs of a pick-up next year: MAS survey
Hopes of an economic boost from fiscal stimulus have dimmed, even as global trade tensions continue to weigh on the growth outlook, according to the latest quarterly survey of private-sector analysts by the Monetary Authority of Singapore (MAS). Still, signalling more certainty, watchers have tightened the forecast for the new year: Singapore’s growth in 2020 is now tipped to fall between 1.5 per cent and 1.9…
https://www.businesstimes.com.sg/government-economy/analysts-see-clearer-signs-of-a-pick-up-next-year-mas-survey
https://www.straitstimes.com/business/economy/green-shoots-of-recovery-raise-prospects-of-growth
https://www.channelnewsasia.com/news/singapore/singapore-s-2019-growth-forecast-raised-to-0-7-mas-survey-12174956
https://www.todayonline.com/singapore/singapores-2019-growth-forecast-raised-07-mas-survey

Mega sales help, but may not revive Singapore’s retail sector
Retailers are ending the year with a bang by pulling out all the stops for possibly the last mega sale of the year. The 12.12 sale on Dec 12 comes on the tail of three successful clearance rounds last month – but analysts say that such mega sales may do little to revive Singapore’s retail scene. The 12.12 mega sale reportedly has its origins as Chinese e-commerce player Taobao’s response to Alibaba’s hugely popular…
https://www.businesstimes.com.sg/consumer/mega-sales-help-but-may-not-revive-singapores-retail-sector

Employment grew in third quarter this year, but so did unemployment: MOM
[Singapore] Employment grew in the third quarter this year as the economy picked up slightly, even as unemployment, including long-term unemployment, crept up, according to a Manpower Ministry report on Thursday. One plausible cause is that employers are hiring more cautiously, as the number of job vacancies shrank, the report added.
https://www.businesstimes.com.sg/government-economy/employment-grew-in-third-quarter-this-year-but-so-did-unemployment-mom

Companies’ Brief

Keppel DC Reit buys 2nd Germany data centre for 81.8m euros
Keppel DC Reit on Thursday said it will be acquiring its second data centre in Germany for 81.8 million euros (around S$125.3 million). This will be its eighth data centre in Europe. The real estate investment trust is buying the entire freehold interest in the shell and core purpose-built data centre from Maena KG, and the deal is expected to be completed in 2020. The Reit said the buyout would likely be fully funded by debt.
https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-buys-2nd-germany-data-centre-for-818m-euros
https://www.straitstimes.com/business/companies-markets/keppel-dc-reit-buys-second-germany-data-centre-for-1253m

Pan Pacific Hotels to enter Tokyo, Toronto markets
Pan Pacific Hotels Group announced on Wednesday that it will enter the Tokyo and Toronto markets with its brand of hotels, taking its total global footprint to 29 cities. In a news release, the UOL-owned group said it has signed an agreement to market the five-star Cerulean Tower Tokyu Hotel as a Pan Pacific partner hotel through its various distribution channels and its loyal programme.
https://www.businesstimes.com.sg/real-estate/pan-pacific-hotels-to-enter-tokyo-toronto-markets

ARA, Logos in strategic deal to grow logistics platform in Asia-Pacific
ARA Asset Management has entered into a strategic transaction with Logos Group to establish a logistics real estate platform in the Asia-Pacific region. As part of the deal, ARA Asset Management will transfer its entire holdings in both Cache Logistics Trust and ARA Trust Management (Cache) to Logos. ARA Trust Management (Cache) is the manager of Cache Logistics Trust.
https://www.businesstimes.com.sg/companies-markets/ara-logos-in-strategic-deal-to-grow-logistics-platform-in-asia-pacific

JustCo boosts regional presence with new Singapore, Seoul co-working spaces
Co-working space operator JustCo said on Wednesday it is expanding its Asia-Pacific network to 40 centres with the addition of two new spaces – one in Singapore and another in Seoul. The Singapore co-working space is expected to open in the second quarter of 2020 at OCBC Centre East, and will occupy four storeys of space, spanning 45,000 square feet of net leaseable area.
https://www.businesstimes.com.sg/real-estate/justco-boosts-regional-presence-with-new-singapore-seoul-co-working-spaces
https://www.straitstimes.com/business/property/justco-to-open-new-centres-in-spore-seoul

Views, Reviews, Forum & Others

CDL chief calls for easing of property curbs
Singapore’s property oversupply is an unintended consequence of government measures to force developers to build and sell homes quickly or face stiff penalties, according to the chief executive officer of City Developments Limited (CDL). Singapore’s second-largest home builder has voiced his opposition to a rule that imposes a levy on companies if they do not complete construction and sell all units within a…
https://www.businesstimes.com.sg/real-estate/cdl-chief-calls-for-easing-of-property-curbs
https://www.todayonline.com/singapore/developer-blames-govt-cooling-measures-glut-private-homes-calls-easing-curbs

ABSD ‘extension’ may ease property glut but experts flag limp demand
Extending the deadline for developers to build and sell all the units on a site could help ease oversupply in the market but may not address flagging buyer demand, said experts. Their comments come after City Developments Limited (CDL) called for the sale timeline to be lengthened to seven or 10 years to reduce pressure on developers and prevent the worsening of the supply glut.
https://www.straitstimes.com/business/property/absd-extension-may-ease-glut-but-experts-flag-limp-demand

S’pore private home prices rising faster than wages, affordability gap might widen: Experts
Singapore — With private property prices increasing at a faster rate than wage growth, property experts are saying that the affordability gap for private homes could further widen for Singaporeans. Professor Sumit Agarwal from the National University of Singapore Business School said that the divide between income growth and residential property price increases could grow bigger, with technology set to displace…
https://www.todayonline.com/singapore/spore-private-home-prices-rising-faster-wages-affordability-gap-might-widen-property