DAILY NEWS

Daily News – 11th, 12th and 13th May 2019

Singapore Real Estate

70 units at The Woodleigh Residences sold to date
The Woodleigh Residences has sold a total of 70 units following its launch weekend, said co-developers Japan-based Kajima Development and Singapore Press Holdings (SPH) on Sunday. Many of the condominium units sold were two- and three-bedroom units, with prices starting at S$1,733 per square foot (psf). Three of the units were four-bedroom residences, which achieved a high of S$2,331 psf.
https://www.businesstimes.com.sg/real-estate/70-units-at-the-woodleigh-residences-sold-to-date

Banks see home loan growth slowing on cooling measures
OCBC Bank, like the other two Singapore lenders, is feeling the chill of last year’s property cooling measures with its mortgage book “reduced visibly” for the first quarter. “Our housing loans outstanding have reduced visibly on quarter and on year,” chief executive Samuel Tsien said during the bank’s results announcement yesterday. “Housing demand is there but it’s not as strong as before.”
https://www.straitstimes.com/business/banking/banks-see-home-loan-growth-slowing-on-cooling-measures
https://www.businesstimes.com.sg/companies-markets/ocbc-joins-singapore-lenders-facing-slowdown-in-home-loans
https://www.channelnewsasia.com/news/singapore/ocbc-q1-profit-results-banking-11521266

Singapore Economy

Retail sales dip again in March – at slower pace
Retail sales continued to slide, with revenue down in March compared with the same month last year. Takings at the till dipped by 1 per cent but at least that was much improved from the revised 9.9 per cent year-on-year plunge in February. March’s figures also beat the 2.2 per cent fall forecast by analysts in a Bloomberg poll.
https://www.straitstimes.com/business/retail-sales-dip-again-in-march-at-slower-pace
https://www.businesstimes.com.sg/infographics/broad-based-retail-slump-continues-into-march
https://www.channelnewsasia.com/news/singapore/singapore-retail-sales-fell-1-in-march-2019-11521538

Beware of over-reliance on China arrivals and casinos, says Maybank report on Asean tourism
Tourism in Asean is set for a significant upside, but more needs to be done in areas such as infrastructure, and there are risks of over-reliance on China arrivals and casinos, according to a new Maybank report, Asean Tourism: Blue Skies, But Keep Your Seatbelts Fastened. Although Asean visitor arrivals have grown at a compound annual growth rate of 8 per cent since 2010…
https://www.businesstimes.com.sg/asean-business/beware-of-over-reliance-on-china-arrivals-and-casinos-says-maybank-report-on-asean

Companies’ Brief

UOL Q1 net profit down 5% on accounting reversal
Property group UOL’s net profit fell 5 per cent year-on-year to S$72.36 million for the first quarter ended March 31 after an accounting reversal of S$31.9 million relating to the consolidation of United Industrial Corporation (UIC). Stripping out the accounting reversal, net profit would have actually increased 27 per cent to S$104.3 million, from S$82.4 million in Q1 2018. Group revenue rose 12 per cent to S$741.21 million, boosted by recognition of property development revenue from sales of Park Eleven in Shanghai;
https://www.businesstimes.com.sg/companies-markets/uol-q1-net-profit-down-5-on-accounting-reversal

OUE Q1 net profit inches up 0.3% to S$1m
First-quarter net profit for property firm OUE crept up 0.3 per cent to S$1 million from the previous year, the firm announced on Friday.For the three months ended March 31, revenue edged up 1.2 per cent to S$147.3 million from the previous year. The increase was mainly due to higher contributions from the investment properties and development property divisions but was partially offset by lower contributions from the hospitality and healthcare divisions.
https://www.businesstimes.com.sg/companies-markets/oue-q1-net-profit-inches-up-03-to-s1m

Millennium & Copthorne Q1 profit, room revenue fall as renovations take their toll
Britain’s Millennium & Cop-thorne Hotels Plc said on Friday that group revenue per room fell in the first quarter, as ongoing renovations kept its major hotels in London and Singapore partially or fully closed. The company, 65 per cent owned by Singaporean billionaire chairman Kwek Leng Beng’s City Developments, said profit before tax fell to £11 million (S$19.5 million) from £26 million last year.
https://www.businesstimes.com.sg/companies-markets/millennium-copthorne-q1-profit-room-revenue-fall-as-renovations-take-their-toll
https://www.straitstimes.com/business/companies-markets/millennium-copthorne-performance-in-q1-hurt-by-renovations

Wee Hur Q1 earnings halved on drop in property development income
Mainboard-listed property group Wee Hur Holdings’ earnings were halved in the first quarter, as turnover from the muted development segment fell. Net profit dropped to S$5.72 million for the three months to March 31, down 48 per cent on the S$11.1 million posted in the previous year.
https://www.businesstimes.com.sg/companies-markets/wee-hur-q1-earnings-halved-on-drop-in-property-development-income

Wing Tai Q3 net profit slumps 85% to S$10.1m
Mainboard-listed property and retail player Wing Tai Holdings saw earnings plunge in the third quarter on a sharp drop in associates’ contributions. Net profit fell by 85 per cent year-on-year, dropping from S$69 million to S$10.1 million for the three months to March 31, in results released on Friday. Revenue was down by 9 per cent to S$65.3 million.
https://www.businesstimes.com.sg/companies-markets/wing-tai-q3-net-profit-slumps-85-to-s101m

Keppel snags S$150m offshore wind contract
Keppel Corp has snagged a contract to build two offshore wind farm substations worth more than S$150 million for Danish renewable energy company Orsted, the conglomerate said on Sunday. Keppel FELS, a subsidiary of Keppel Offshore & Marine (Keppel O&M), will provide detailed engineering, procurement, construction, testing and commissioning for the substations, while certain electrical components will be furnished by Orsted.
https://www.businesstimes.com.sg/companies-markets/keppel-snags-s150m-offshore-wind-contract
https://www.straitstimes.com/business/keppel-bags-danish-wind-farm-contract

Tee International to sell 28% stake in Tee Land for S$18.7m
Engineering group Tee International will sell a 28 per cent stake in its subsidiary property developer Tee Land for nearly S$18.7 million, going by a sale-and-purchase agreement inked on Friday with Top Capital Securities. Tee International is selling nearly 100.5 million shares at S$0.186 each in cash.
https://www.businesstimes.com.sg/companies-markets/tee-international-to-sell-28-stake-in-tee-land-for-s187m

Swee Hong expects net loss for Q3
Swee Hong Limited expects to report a net loss for the third quarter ended March 31, the construction company said in a Singapore Exchange (SGX) filing on Friday night. This is primarily attributable to impairment allowance for contract assets.
https://www.businesstimes.com.sg/companies-markets/swee-hong-expects-net-loss-for-q3
https://www.businesstimes.com.sg/companies-markets/swee-hong-calls-for-trading-halt-cites-uncertain-financial-position-under-sgx
https://www.straitstimes.com/business/companies-markets/swee-hong-calls-for-trading-halt-cites-uncertain-financial-position-under

Centurion Q1 net profit falls 13.7% to S$7.9m on higher costs, expenses
First-quarter net profit for student and worker dormitory operator Centurion Corporation dropped 13.7 per cent to S$7.9 million from the year-ago period, due to higher cost of sales, administrative and finance expenses.For the three months ended March 31, revenue expanded 3.9 per cent to S$31.3 million from the year-ago period, due to revenue contributions from dwell Princess Street in the United Kingdom which was acquired towards the second half of fiscal 2018, as well as rental rate increases from the group’s UK assets.
https://www.businesstimes.com.sg/companies-markets/centurion-q1-net-profit-falls-137-to-s79m-on-higher-costs-expenses

No luxury home rentals in Asia for now: Marriott
Marriott International, which last week launched luxury home rentals in the United States, Europe, Latin America and the Caribbean, said it will not be bringing the service to Asia just yet. Mr Rajeev Menon, Marriott’s chief operating officer for the Asia-Pacific region, excluding Greater China, said the hotel chain will consider doing so when the conditions are right.
https://www.straitstimes.com/business/companies-markets/no-luxury-home-rentals-in-asia-for-now-marriott

EC World Reit Q1 DPU edges up to 1.501 Singapore cents
Chinese e-commerce logistics-focused EC World Reit on Friday posted an increase in first-quarter distribution per unit (DPU) to 1.501 Singapore cents from 1.469 Singapore cents, helped by various distribution adjustments. Books will close May 28, and distribution is payable June 28.
https://www.businesstimes.com.sg/companies-markets/ec-world-reit-q1-dpu-edges-up-to-1501-singapore-cents

Views, Reviews, Forum & Others

It’s output, outcomes that count
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
996 is acceptable if it happens voluntarily or by choice. Indeed, many successful entrepreneurs, most of our forefathers, many from the pioneer and Merdeka generations and even common folks, work way beyond 996 for the love and welfare of their family or to fulfil their personal ambitions and professional goals.
https://www.businesstimes.com.sg/views-from-the-top/its-output-outcomes-that-count

The business case for green buildings
Green buildings. Efficient in the use of energy, water and materials – all while providing quality air supply. Sounds very Al Gore, right? Green buildings, are, in fact, becoming more and more commonplace in commercial real estate dialogues across the Asia-Pacific. Beyond environmental factors generating demand for green buildings, we are now seeing various technological…
https://www.businesstimes.com.sg/real-estate/the-business-case-for-green-buildings

Condo with a view
The launch of The Woodleigh Residences drew a steady stream of home buyers yesterday. The 667-unit condominium is part of an integrated development by Japanese developer Kajima Development and Singapore Press Holdings, and features Japanese design and technology. The residential component will sit atop a three-storey retail mall with a supermarket, with direct access to Woodleigh MRT station and an air-conditioned underground bus interchange.
https://www.straitstimes.com/singapore/housing/condo-with-a-view

Review Home Improvement Programme processes
My precinct is currently undergoing the Home Improvement Programme (HIP). It surprised me that the renovation workers took 10 full calendar days to upgrade one toilet. The time taken is far too long, be it for one or two toilets, since an adult from each household needs to be physically present for the duration of the period.
https://www.straitstimes.com/forum/letters-in-print/review-home-improvement-programme-processes

New HDB rules may hit young buyers more
Some young buyers are already walking away from homes they were hoping to buy, after changes to how much of their Central Provident Fund (CPF) monies can be used to buy ageing Housing Board flats kicked in yesterday. Real estate agent Finn Yusof, 27, felt it acutely when three of his clients, all of whom had said they would purchase older HDB flats in Tampines and Jurong West, phoned him to put a brake on completing the deals yesterday morning.
https://www.straitstimes.com/singapore/housing/new-hdb-rules-may-hit-young-buyers-more

Owners of old HDB flats cautiously optimistic that new rules can improve resale market
Singapore — Some homeowners have been trying to sell their aged Housing and Development Board (HDB) flats unsuccessfully for months — and for some, more than a year — attributing the failure to the general sentiment towards the depleting leases of public housing flats. But with the recent changes in rules relating to the use of Central Provident Fund (CPF) savings and HDB loan restrictions when buying a flat, these sellers are now slightly more hopeful of finding a buyer.
https://www.todayonline.com/singapore/owners-old-hdb-flats-cautiously-optimistic-new-rules-can-improve-resale-market

HDB flats: Lifelong companions for seniors
Last week, the Government took an incremental but important step to shift the rules to focus on whether a property can last a home owner for life, instead of being based on the length of the lease which remains. The move ensures that buyers have a roof over their heads in their old age – a reality that rings loud given that people are living longer. The average life expectancy of Singaporeans is forecast to be 85.4 years in 2040.
https://www.straitstimes.com/opinion/st-editorial/hdb-flats-lifelong-companions-for-seniors

Ren Ci’s new nursing home gives residents that HDB feel
At Ren Ci Hospital’s new nursing home in Ang Mo Kio, residents have the feeling of living alongside neighbours in Housing Board flats. They stay in clusters called “households” with a common corridor, and have communal dining areas, shared sofas for watching television, and even coffee corners with old-school cutlery and coffee tins.
https://www.straitstimes.com/singapore/health/ren-cis-new-nursing-home-gives-residents-that-hdb-feel

Call for ideas to rejuvenate Pasir Panjang Power District
Transform a vacant power district into a massive concert hall to showcase local acts, an exhibition space, or even an indoor garden with vertical farms. These are some ideas that architects, artists and tertiary students have in mind to rejuvenate the 15ha Pasir Panjang Power District, which currently houses two power stations, oil tanks and ancillary buildings.
https://www.straitstimes.com/singapore/call-for-ideas-to-rejuvenate-pasir-panjang-power-district-0