The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 13th June 2017

Top Story

PropNex, DWG merge to become largest Singapore property agency
Homegrown property agencies PropNex Realty and Dennis Wee Group (DWG) have agreed to merge – a move that will see the combined entity become Singapore’s largest real estate agency with close to 7,000 salespeople.  This is set to nudge ERA Realty Network, which has 6,238 agents based on the latest count, to second place.

Singapore Economy

China Belt & Road: S’pore expected to benefit from regional uplift
Singapore and China pledged on Monday to cooperate on China’s infrastructural “project of the century”, but observers say the city state is likely to catch only a few droplets from the flood of monies.  However, Singapore should still try to position itself to catch the rising tide of opportunities that China’s “Belt and Road” (B&R) initiative can bring to Asean, they added. This will lift Singapore’s boat, as the city state tries to navigate global uncertainties that may drag on its growth.

Singapore hiring pace likely to slow down in Q3: survey
The hiring pace is likely to slow down in the next three months in Singapore – the weakest outlook in eight years, based on the employment outlook survey by ManpowerGroup released on Monday.  Of the 632 employers in Singapore polled by the US-based employment firm, 8 per cent expected to increase headcount in the July-September quarter, 4 per cent planned to decrease headcount while 60 per cent anticipated no change.

Retail sales rise for 2nd month, up 2.6%
Retail sales here rose in April for a second straight month, buoyed by double-digit gains in sales at petrol service stations, and of watches and other jewellery.  Only weak car sales stood in the way of a stellar month.  But even then, total retail sales rose 2.6 per cent in April from a year earlier – the strongest showing since July last year – compared with a revised 2 per cent increase in March, according to the Singapore Department of Statistics.

Singapore Real Estate

IOI and Hongkong Land to jointly develop Central Boulevard site
Malaysia-listed IOI Properties is linking up with Hongkong Land for the development and management of a white site in Central Boulevard in Singapore.  A memorandum of agreement was signed on Monday between the two real estate-focused groups for the joint development of this site IOI won through a record bid last November.

Visiting Thai investors get to know more about Singapore property
About 15 investors from Thailand were in Singapore recently on a familiarisation trip to gain insight into the country’s property market.  The group, comprising mainly institutional investors, were hosted by DBS Group to a three-day property roadshow, which included meetings with various S-Reit managers, and viewings of several properties in different real estate sub-sectors across the island.

Companies’ Brief

AccorHotels sees saturation giving it the upper hand
Despite a slightly softer start to the year for the Singapore hotel market, AccorHotels said that its properties here are outperforming the sector, with both occupancy and rates doing well.  Chairman and chief executive officer for the Asia-Pacific Michael Issenberg said that, contrary to belief, having a saturation of hotels and brands in Singapore has given the group the upper hand.

Soilbuild picks up 70% stake in construction firm CS Corp
Soilbuild Construction Group is picking up a 70 per cent stake in a pre-fabricated pre-finished volumetric (PPVC) construction company.  The group said after trading hours on Monday that its wholly owned subsidiary, SB Project Services Pte Ltd, has entered into a share subscription and shareholders’ agreement to subscribe for a 70 per cent stake in CS Corp Pte Ltd.

Fraser Hospitality expands Capri footprint in Germany
The hospitality arm of Frasers Centrepoint has opened another Capri-branded property in Germany. The 143-unit Capri by Fraser Berlin in the German capital is Fraser Hospitality’s second Capri-branded project in the country after the first was opened in Frankfurt in 2015.  Situated in the heart of the vibrant city, Capri by Fraser Berlin offers easy access to international organisations, cultural attractions and popular tourist destinations. Numerous public transportation links are also available in the vicinity, with the closest underground station being four minutes away, while the Ostbahnhof train station is 10 minutes away.

Views, Reviews & Forum

Big boost in land supply not a given for H2
Singapore developers are in a bind when it comes to restocking local residential landbank.  If they run out of land, that vital raw material for their business, they cannot continue their local residential development business. But to clinch sites, they have to bid aggressively to stave off competition from foreign players as well, including newcomers that have been placing bold bids at state land tenders. Paying too high a price for land will squeeze profit margins.

Chinese efforts to stem housing bubble show promise
Among the biggest fears for investors globally is the health of China’s real estate market. The concern is that after one of the biggest speculative booms in history, the market will come crashing down and take the global financial system with it. Outstanding credit at the end of 2016 in the world’s second-largest economy amounted to 258 per cent of gross domestic product, up from 162 per cent a decade earlier.

Condos, owners tussle over fixtures
One condo home owner wanted to install “invisible” grilles at his balcony as a safety precaution because he has young children.  A group of 22 home owners at another condo wanted the trellises in their balconies to be covered. For some owners there, it was about preventing killer litter.  In both estates, their respective management corporations (MCs) said no. And when mediation talks failed to resolve the matter, the owners took their cases to the Strata Titles Board (STB).

Big houses can accommodate more tenants
The Urban Redevelopment Authority has reduced the cap on unrelated occupiers in a private rental property from eight to six (New cap on tenants for private homes; May 13).  In contrast, the HDB allows six and nine occupants in three- and four-room flats respectively.  This rule could see large landed houses half empty while smaller flats are packed full.

Global Economy & Global Real Estate

Fed rate hike likely despite sluggish US data

In Detroit, anyone can be a developer

Discord over plan for US Central Park path

As retail wanes, mall tenants want shorter leases

Preparing for Brexit, Britons face economic pinch at home

UK house prices climb to record even as sales slow in London

Qatari Real Estate Bonds Hit the Hardest by Diplomatic Dispute

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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