DAILY NEWS

Daily News – 14 January 2016

Singapore Real Estate

Govt projects this year may exceed those in private sector
This year and next, there will likely be more construction demand from government projects compared to the private sector – a reversal from past years – as the private property market grinds to a crawl. But overall, the total volume of projects should still hold at around the same level as in 2015.
http://www.businesstimes.com.sg/government-economy/govt-projects-this-year-may-exceed-those-inprivate-sector

Rents of condos, HDB flats fall again in 2015
Rentals of non-landed private homes as well as Housing & Development Board flats continued to decline last year, based on the December 2015 flash estimates from SRX Property. However, the volume of rental contracts in both markets rose in December on a year-on-year basis.
http://www.businesstimes.com.sg/real-estate/rents-of-condos-hdb-flats-fall-again-in-2015

Rents of private apartments tipped to decline this year
Rents of private apartments are expected to fall further this year amid a flood of new homes hitting the market. Property firm ERA estimates rents could weaken by 5 per cent to 8 per cent this year, while Savills Research says the decline could reach 10 per cent.
http://www.straitstimes.com/business/rents-of-private-apartments-tipped-to-decline-this-year

Rents for 1st-floor retail space dip 1.2% in Q4
Rents for first-storey retail space islandwide fell 1.2 per cent in the fourth quarter of 2015 from a quarter ago to about S$30.50 per sq ft (psf), according to DTZ Southeast Asia. This marks a third straight quarter of decline, translating to a steeper 5.9 per cent rental fall for the whole of last year following a 0.3 per cent decline in 2014. Much of the decline last year was attributed to weak consumer sentiments in view of uncertain global economic conditions.
http://www.businesstimes.com.sg/real-estate/rents-for-1st-floor-retail-space-dip-12-in-q4
http://www.channelnewsasia.com/news/business/singapore/rents-expected-to-dip/2421894.html

It’s a tenant’s market in malls
Challenging retail conditions seem to be prompting landlords to extend lease lengths to attract and keep sought-after tenants. The move, said experts, comes amid cut-throat competition for anchor brands and retailers downsizing in the face of staff shortages and the rise of e-commerce – leaving landlords struggling to fill the space.
http://www.straitstimes.com/singapore/its-a-tenants-market-in-malls?login=true

10% of office space at Guoco Tower taken up
For GuocoLand’s integrated project Tanjong Pagar Centre, about 10 per cent of office space at Guoco Tower and 60 per cent of retail space has been committed some six months ahead of the project’s completion. The Singapore-listed developer shared these figures on Wednesday at a topping-out ceremony, graced by Minister for National Development Lawrence Wong, for the S$3.2 billion flagship project.
http://www.businesstimes.com.sg/real-estate/10-of-office-space-at-guoco-tower-taken-up
http://www.straitstimes.com/business/new-tallest-building-in-singapore-after-20-years?login=true
http://www.channelnewsasia.com/news/business/singapore/high-hopes-singapore-s/2422072.html

CDL subsidiary opening new ‘lifestyle’ hotel
Hospitality firm Millennium Hotels & Resorts (MHR) is opening a new hotel at Robertson Quay, at the “end of April or early May”, the company said yesterday. The M Social will have 293 rooms and be pitched as a “new upscale space”.
http://www.straitstimes.com/business/cdl-subsidiary-opening-new-lifestyle-hotel

CapitaLand Trust said to be selling One George Street
CapitaLand Commercial Trust (CCT), Singapore’s largest office real estate investment trust by value, is selling an office tower in the central business district, according to a person familiar with the transaction. CapitaLand Commercial is seeking to sell the 23-storey One George Street building in the Raffles Place office district, the person told Bloomberg, asking not to be named as the information is private.
http://www.straitstimes.com/business/capitaland-trust-said-to-be-selling-one-george-street

Industrial site on Lok Yang Road up for sale
A heavy-industry industrial development at 1 Fourth and 4 Fifth Lok Yang Road has been put up for sale by expression of interest (EOI). The indicative price is S$20 million. Sitting on a 133,876 square feet (sq ft) corner site, the property comprises five buildings – two single-storey factory buildings with mezzanine level, a single-storey factory building, a two-storey factory building and a four-storey factory building.
http://www.businesstimes.com.sg/real-estate/industrial-site-on-lok-yang-road-up-for-sale

Sibor and SOR head north on China worries
Singapore’s key interest rates continue to rise to levels last seen in 2008, amid persistent worries about China. The benchmark three-month Singapore interbank offered rate (Sibor), typically used to price home loans, rose for the fourth consecutive day to 1.25200 per cent on Wednesday; it was 1.19125 per cent last Thursday and 1.18513 per cent on Dec 31.
http://www.businesstimes.com.sg/banking-finance/sibor-and-sor-head-north-on-china-worries
http://www.channelnewsasia.com/news/business/singapore/3-month-sibor-crosses-1/2422824.html

Companies’ Brief

Lian Beng’s Q2 net profit slips 2.8% to S$22.9m
Construction and civil engineering firm Lian Beng Group on Wednesday reported a 2.8 per cent year-onyear slip in net profit to S$22.9 million for the second quarter ended Nov 30, 2015. Its revenue plunged 35 per cent in Q2 2016 to S$130 million, compared to S$200 million in Q2 2015.
http://www.businesstimes.com.sg/companies-markets/lian-bengs-q2-net-profit-slips-28-to-s229m http://www.straitstimes.com/business/companies-markets/lian-bengs-revenue-for-second-quarter-down-35

Millennium Hotels & Resorts to launch new brand in S’pore in Q2
Millennium Hotels and Resorts (MHR) is launching a new brand here in Singapore this year, M Social, to attract a bigger customer base. The new brand, aimed at contemporary travellers, will be rolled out in other markets such as Auckland and Seoul within the next one to two years, using the Singapore property as a testbed.
http://www.businesstimes.com.sg/real-estate/millennium-hotels-resorts-to-launch-new-brand-in-spore-inq2

PropertyGuru buys publisher of luxury property magazine
For an undisclosed amount of “millions of dollars” in “cash terms”, local property site PropertyGuru has acquired Ensign Media – publisher of regional luxury property magazine Property Report and owner of real estate awards programme the Asia Property Awards, BT has learnt.
http://www.businesstimes.com.sg/real-estate/propertyguru-buys-publisher-of-luxury-property-magazine

Frasers Hospitality launches first property in Geneva
Frasers Hospitality, the hospitality arm of mainboard-listed Frasers Centrepoint Ltd, has added to its European portfolio with the launch of its first gold standard serviced residence in Switzerland. The opening of the 67-unit Fraser Suites Geneva, located in the city centre, brings Frasers Hospitality’s portfolio in Europe to 55 properties.
http://www.businesstimes.com.sg/real-estate/frasers-hospitality-launches-first-property-in-geneva
http://www.straitstimes.com/business/companies-markets/frasers-hospitality-moves-into-geneva

Lippo Karawaci’s outlook downgraded to negative by S&P
An Indonesian developer that sponsors two property real estate investment trusts (Reit) had its outlook downgraded to negative by a ratings agency yesterday. Standard & Poor’s Ratings Services said delays by Lippo Karawaci in selling assets to Lippo Malls Indonesia Retail Trust (LMIR Trust) and First Reit have weakened its prospective cash flow.
http://www.straitstimes.com/business/companies-markets/lippo-karawacis-outlook-downgraded-tonegative-by-sp