DAILY NEWS

Daily News – 12th, 13th and 14th Oct 2019

Singapore Real Estate

Govt to spend over S$1b to spruce up public, private housing estates
More than S$1 billion will be spent on upgrading projects for both public and private housing estates “over the next few years”. Announcing this on Friday, Minister for National Development Lawrence Wong said at the annual MND Huddle at Fort Canning Park: “This will provide support for our industry partners in the current economic climate.” The projects will also provide more opportunities for “our consultants and…
https://www.businesstimes.com.sg/government-economy/govt-to-spend-over-s1b-to-spruce-up-public-private-housing-estates
https://www.straitstimes.com/singapore/1b-to-be-spent-on-upgrading-housing-estates
https://www.straitstimes.com/singapore/housing/55000-hdb-flats-to-be-upgraded-from-next-year

Desperately seeking tenants as eateries shut before lease is up
A slate of restaurants have shut down or are shutting down even before their leases expire. Desperately seeking new tenants to take over their remaining leases, some restaurateurs are offering premises complete with furniture, fixtures and kitchen equipment at no extra cost.
https://www.straitstimes.com/business/property/desperately-seeking-tenants-as-eateries-shut-before-lease-is-up

Singapore Economy

Singapore Q3 GDP up by 0.1% in MTI flash data in close shave for recession fears
The Singapore economy may have narrowly avoided a technical recession in the third quarter, according to flash estimates from the Ministry of Trade and Industry (MTI) on Monday. But the city-state’s gross domestic product (GDP) looks to have grown by just 0.1 per cent year on year in the July-to-September period, flat on the meagre expansion of 0.1 per cent posted in the second quarter.
https://www.businesstimes.com.sg/government-economy/singapore-q3-gdp-up-by-01-in-mti-flash-data-in-close-shave-for-recession-fears
https://www.straitstimes.com/business/economy/singapore-narrowly-dodges-technical-recession-as-economy-grows-01-in-q3-flash-data
https://www.channelnewsasia.com/news/singapore/singapore-economy-grows-0-1-in-q3-avoids-technical-recession-11997366
https://www.todayonline.com/singapore/singapore-economy-grows-01-q3-avoids-technical-recession

MAS eases monetary policy ‘slightly’ in October
The Monetary Authority of Singapore (MAS) has eased monetary policy “slightly” in its latest half-yearly monetary policy review on Monday, making the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band less steep and slightly reducing its rate of appreciation. The width of the policy band and the level at which it is centred will be unchanged. “This measured adjustment to the policy…
https://www.businesstimes.com.sg/government-economy/mas-eases-monetary-policy-slightly-in-october
https://www.straitstimes.com/business/economy/mas-reduces-singdollar-appreciation-rate-slightly-first-easing-in-over-3-years
https://www.channelnewsasia.com/news/singapore/singdollar-mas-reduces-appreciation-currency-monetary-policy-11996054
https://www.todayonline.com/singapore/singapore-eases-monetary-policy-first-time-3-years

August retail sales fall 4.1% from last year
Takings at the till fell for the seventh straight month in August, with sales for pricey items like cars taking an especially big hit. Retail sales dropped 4.1 per cent compared with the same month last year, not far from the 4.3 per cent decline forecast by analysts polled by Bloomberg.
https://www.straitstimes.com/business/economy/august-retail-sales-fall-41-from-last-year
https://www.businesstimes.com.sg/infographics/singapore-retail-sales-fall-for-7th-straight-month-in-august

Companies’ Brief

CapitaLand gives $750k to support 2,000 needy kids
Real estate developer CapitaLand has launched a programme to help 2,000 pre-school children from low-income families get ready for primary school. In a press statement yesterday, it said it will give $750,000 to support children in NTUC First Campus’ My First Skool pre-school centres.
https://www.straitstimes.com/singapore/capitaland-gives-750k-to-support-2000-needy-kids

Retail, hospitality Reits get lift from tourist arrivals
It is likely to be another stable reporting season for Singapore’s real estate investment trusts (Reits) with tourist arrivals in July and August giving a boost to retail and hospitality Reits while industrial Reits continue to be pressured by the bleak state of manufacturing activity. Given the cloudy outlook owing to macroeconomic uncertainty and recession fears, analysts have chosen a defensive posture for investing in…
https://www.businesstimes.com.sg/companies-markets/retail-hospitality-reits-get-lift-from-tourist-arrivals

Hatten Land forms JV to develop properties in China
Catalist-listed Malaysian real estate developer Hatten Land is forming a joint venture (JV) company with Chinese consulting firm Billion Celestial Holdings for property development in China. The JV, Hatten Wellness China, will be 55 per cent-owned by Hatten Land with the balance held by Billion Celestial.
https://www.businesstimes.com.sg/companies-markets/hatten-land-forms-jv-to-develop-properties-in-china

Tuan Sing unit sets up S$500m medium-term note programme
Superluck Properties, a wholly-owned subsidiary of mainboard-listed property developer Tuan Sing Holdings, has established a S$500 million secured multicurrency medium-term note (MTN) programme. This is the group’s second MTN programme, after Tuan Sing’s existing S$900 million multicurrency programme launched in 2013.
https://www.businesstimes.com.sg/companies-markets/tuan-sing-unit-sets-up-s500m-medium-term-note-programme

Mysterious stock surge produces Indonesia’s newest billionaire
[Singapore] Ask Nico Purnomo Po about the world-beating stock rally that turned him into Indonesia’s latest billionaire, and he’ll tell you the market is rewarding his property company’s ability to complete big projects in prime locations. “There were concerns before about whether we could execute what we had promised to customers, but we’ve proven ourselves,” Mr Po, 37, the chief operating officer and…
https://www.businesstimes.com.sg/real-estate/mysterious-stock-surge-produces-indonesias-newest-billionaire
https://www.straitstimes.com/business/companies-markets/mysterious-stock-surge-produces-indonesias-newest-billionaire

Auditor flags going concern uncertainty on Capital World’s leverage
Catalist-listed Capital World’s board has said it can continue as a going concern despite its auditor’s and the Singapore Exchange’s (SGX) concerns over its loans. Auditor Messrs Ernst & Young LLP issued a disclaimer of opinion on the group’s balance sheets for fiscal 2019 ended June 30, which highlighted the company’s high leverage and uncertainty to continue as a going concern.
https://www.businesstimes.com.sg/companies-markets/auditor-flags-going-concern-uncertainty-on-capital-worlds-leverage

Views, Reviews, Forum & Others

Silver linings in the clouds
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
Real estate activities have been relatively weak on the back of a challenging geopolitical and economic environment. Weaker manufacturing and electronics sector, retail and trade-related services could further exert pressure on occupancy levels and rents, affecting business sentiment, investments and expansion plans.
https://www.businesstimes.com.sg/views-from-the-top/silver-linings-in-the-clouds

Hedging against economic uncertainties
Amid uncertain economic conditions arising from global tensions, the prices of private residential properties in Singapore have remained resilient. Based on the Urban Redevelopment Authority’s latest residential flash estimates, the overall property price index (PPI) for private residential homes increased 0.9 per cent quarter-on-quarter (q-o-q) to 152.5 points in Q3 2019. That made for a second consecutive q-o-q…
https://www.businesstimes.com.sg/real-estate/hedging-against-economic-uncertainties

Looking beyond dividend yield when investing in REITs
Real estate investment trusts (Reits) are characterised by their low volatility and stable returns. Their ability to generate relatively consistent dividends through economic cycles has made them a preferred asset class amid economic uncertainty. However, is dividend yield the only factor to consider when deciding on which Reit to invest in? What are the other factors that determine the quality of a Reit?
https://www.businesstimes.com.sg/investing-wealth/looking-beyond-dividend-yield-when-investing-in-reits