DAILY NEWS

Daily News – 15th August 2018

Top Story

Developers cut prices after latest property curbs
Singapore — In a bid to attract more buyers, some property developers are lowering the prices of their residential projects by about 5 to 10 per cent after the latest round of cooling measures took effect on July 6. Daintree Residence, a 99-year leasehold condominium which opened for sale on July 28, was selling at an average price of S$1,710 psf, which is 5 per cent lower than the earlier announced price of S$1,800 psf.
https://www.todayonline.com/singapore/developers-cut-prices-after-latest-property-curbs

Singapore Economy

Borrowers feel rate hike pinch as banks step up mortgage repricing
As interest rates hit a 10-year high, banks are increasingly firing off missives to home loan borrowers informing them that their loans have been repriced. For some, it will be the second repricing letter this year as interest rates continue their relentless climb.
https://www.businesstimes.com.sg/banking-finance/borrowers-feel-rate-hike-pinch-as-banks-step-up-mortgage-repricing

Chan Chun Sing urges US businesses to continue investing in region
The trade conflict between the United States and China will not blow over quickly as it is driven by fundamental shifts in their domestic politics and economies, Minister for Trade and Industry Chan Chun Sing told about 250 American and international business leaders on Tuesday. He urged the businessmen to make a stand for a rules-based multilateral trading system and to continue investing in the region to set the pace for Washington, at the lunch discussion organised by the American Chamber of Commerce in Singapore.
https://www.businesstimes.com.sg/government-economy/chan-chun-sing-urges-us-businesses-to-continue-investing-in-region
https://www.straitstimes.com/singapore/us-business-leaders-urged-to-continue-investing-in-region
https://www.channelnewsasia.com/news/singapore/trade-chan-chun-sing-us-business-trade-war-china-america-10616794
https://www.todayonline.com/singapore/us-china-trade-war-may-last-long-while-global-economies-will-have-adjust-chan-chun-sing

More German firms here bullish about outlook: Poll
German companies are upbeat in their business outlook here, with many looking to increase investments and hire more workers, a recent survey has found. However, some find the standard of technical education in Singapore could be better.
https://www.straitstimes.com/business/more-german-firms-here-bullish-about-outlook-poll

Singapore ‘well-positioned’ to realise Smart Nation vision: S Iswaran
Singapore: Singapore is “well-positioned” to benefit from the global digital transformation, if appropriate steps are taken to build capacity among both businesses and individuals, said Communications and Information Minister S Iswaran on Tuesday (Aug 14). He elaborated that the key to this is convincing small and medium enterprises (SMEs) that going digital is a valuable undertaking.
https://www.channelnewsasia.com/news/singapore/s-iswaran-singapore-smart-nation-vision-cybersecurity-mci-10616858

KL seeks high-speed rail delay pending review
Months after the new Malaysian administration signalled that it was rethinking the Kuala Lumpur-Singapore High Speed Rail (HSR) link, its minister in charge of the project held an official meeting with his Singapore counterpart last Saturday. Malaysian Economic Affairs Minister Mohamed Azmin Ali told The Straits Times yesterday that his meeting with Singapore’s Coordinating Minister for Infrastructure and Transport Minister Khaw Boon Wan in the Republic was “official… good and productive”.
https://www.straitstimes.com/asia/se-asia/kl-seeks-high-speed-rail-delay-pending-review
https://www.channelnewsasia.com/news/singapore/khaw-azmin-hsr-kl-singapore-malaysia-rail-project-10617128
https://www.todayonline.com/singapore/singapore-malaysia-talks-high-speed-rail-continue-coming-weeks-mot

Singapore Real Estate

Singapore home prices won’t pop without migrants
[Hong Kong] If Sherman Kwek sounds annoyed, he has his reasons — 2.9 million square feet worth of reasons. That figure, equating to 270,000 square metres, is the total saleable area of apartments almost ready to hit the market on the books of City Developments Ltd, the Singapore developer controlled by the family of billionaire Kwek Leng Beng, who handed the keys of his empire this year to son Sherman.
https://www.businesstimes.com.sg/real-estate/singapore-home-prices-wont-pop-without-migrants
https://www.straitstimes.com/business/property/singapore-home-prices-wont-pop-without-migrants

Companies’ Brief

CapitaLand to buy Guangzhou sites
CapitaLand has won its bid to acquire two prime residential sites in Guangzhou, China, for 2.05 billion yuan (S$409.3 million), the property developer announced on Tuesday. The two sites in the Zengcheng district occupy 150,000 square metres of land, and could allow the developer to build up to 1,300 homes by 2021 aimed at first-time homebuyers and upgraders, CapitaLand said.
https://www.businesstimes.com.sg/real-estate/capitaland-to-buy-guangzhou-sites
https://www.straitstimes.com/business/companies-markets/capitaland-wins-bid-for-two-guangzhou-residential-sites

PropNex strikes master franchise deal in Vietnam
Real estate agency PropNex has entered into a master franchise agreement with PropNex Realty (Vietnam) to grow its business in Vietnam. The agreement will give Singapore-based PropNex a 25 per cent stake in the Vietnam franchisee for a nominal sum of US$1, the company announced on Tuesday during the mid-day trading break.
https://www.businesstimes.com.sg/real-estate/propnex-strikes-master-franchise-deal-in-vietnam
https://www.straitstimes.com/business/companies-markets/propnex-strikes-master-franchise-deal-in-vietnam-with-25-stake-in

Interest income, fair value gains lift Straits Trading Q2 net 3 times to S$34m
Higher income from investments – including S$20 million in interest income – and fair value gains of S$14.6 million on investment properties boosted second quarter earnings for Straits Trading Company. Net profit leapt three times to S$33.9 million from the previous year, the group said on Tuesday. For the three months ended June 30, revenue increased 14.5 per cent to S$116.3 million due to higher turnover from its tin mining and smelting and real estate segments.
https://www.businesstimes.com.sg/companies-markets/interest-income-fair-value-gains-lift-straits-trading-q2-net-3-times-to-s34m
https://www.straitstimes.com/business/straits-tradings-gains-soar-to-34m

Metro Holdings sees Q1 earnings drop by 19% in absence of one-off gain from joint-venture divestment
Mainboard-listed property and retail group Metro Holdings saw its first-quarter earnings slide in the absence of a one-off gain from an earlier divestment, according to unaudited results out on Tuesday. Net profit dropped by 19 per cent on the year before, to S$20.2 million for the three months to June 30, while revenue came in lower by 7 per cent at S$30.2 million.
https://www.businesstimes.com.sg/companies-markets/metro-holdings-sees-q1-earnings-drop-by-19-in-absence-of-one-off-gain-from-joint

Singapore Flyer operator Straco Q2 profit falls 5.1% to S$10.8m
Mainboard-listed Straco Corporation on Tuesday posted a fall in second-quarter earnings, mainly due to lower revenue contributions from tourist attractions it operates including the Singapore Flyer and the Shanghai Ocean Aquarium (SOA). For the three months ended June 30, net profit fell 5.1 per cent to S$10.83 million. This translated to an earnings per share of 1.26 Singapore cents for the quarter, down from 1.33 Singapore cents in the year-ago period.
https://www.businesstimes.com.sg/companies-markets/singapore-flyer-operator-straco-q2-profit-falls-51-to-s108m

VIEWS, REVIEWS, FORUM & Others

Relook energy usage to redesign buildings
The rapid rate of urbanisation in South-east Asia is sending infrastructure construction and development on an overdrive across the region, resulting in unprecedented levels of carbon emissions. At present, 309 million people – 48 per cent of the Asean population – live in urban areas. This number is expected to increase by an additional 63 million by 2025. Governments and cities face an uphill task to cater to the influx of city dwellers while keeping sustainability goals in their vision.
https://www.businesstimes.com.sg/opinion/relook-energy-usage-to-redesign-buildings

Initiatives in place to spread awareness of green buildings
We thank Dr Snigdha Sharma for her letter (Step up efforts for more green buildings; Aug 8), and agree that more needs to be done to share the benefits of green buildings. People usually base their choices of buildings on location, price and functionality.
https://www.straitstimes.com/forum/letters-in-print/initiatives-in-place-to-spread-awareness-of-green-buildings

Vienna dislodges Melbourne as world’s most liveable city
Vienna, the capital of Austria, has displaced Melbourne as the world’s most liveable city, according to the latest survey by the Economist Intelligence Unit. After seven years at the top, the Australian coastal city was displaced by Vienna, which ranked ahead of Melbourne by 0.7 of a point. Relative stability across much of Europe improved Vienna’s security scores to push it to the top, the report said.
https://www.businesstimes.com.sg/government-economy/vienna-dislodges-melbourne-as-worlds-most-liveable-city
https://www.straitstimes.com/world/vienna-pips-melbourne-as-most-liveable-city
https://www.channelnewsasia.com/news/singapore/singapore-loses-lead-hong-kong-liveable-cities-eiu-10614876
https://www.bloomberg.com/news/articles/2018-08-14/vienna-takes-melbourne-s-crown-as-world-s-most-liveable-city