DAILY NEWS

Daily News – 15th November 2017

Top Story

En bloc sales may run into new road-block
Property developers of newly acquired collective-sales sites now have to obtain an additional layer of approval from the Land Transport Authority (LTA) to ensure that their proposed increase in number of dwelling units does not exert undue pressure on existing infrastructure. Property consultants say the need for this extra paperwork – called the pre-application feasibility study (PAFS) – had taken effect earlier this year, but was only formalised in a circular to the industry on Monday.
http://www.businesstimes.com.sg/real-estate/en-bloc-sales-may-run-into-new-road-block
http://www.straitstimes.com/business/property/en-bloc-redevelopments-to-require-traffic-impact-study-before-approval-ura

Lawrence Wong cautions home buyers, developers amid property rebound
The government has sounded words of caution to both homebuyers and developers amid this year’s strong recovery in property transactions and the seemingly aggressive bidding for land by developers. Homebuyers should do their homework before making their purchases, given the large supply of private residential units for sale – more than double from the current supply – over the next one to two years, amid elevated vacancy rates.
http://www.businesstimes.com.sg/real-estate/lawrence-wong-cautions-home-buyers-developers-amid-property-rebound
http://www.straitstimes.com/business/property/private-homes-for-sale-likely-to-double-in-1-to-2-years?login=true
http://www.channelnewsasia.com/news/singapore/supply-of-private-homes-to-double-in-next-1-to-2-years-lawrence-9406228
http://www.todayonline.com/singapore/developers-be-held-higher-standards-accountability-lawrence-wong

URA and Redas team up to seek public involvement for urban innovations
The government and the developers’ association have joined hands to seek greater involvement from members of the public for innovations that will raise the quality of the built environment. The Urban Redevelopment Authority (URA), a statutory board under the Ministry of National Development, is rolling out a joint initiative with the Real Estate Developers Association of Singapore (Redas) called the URA-REDAS SPARK Challenge.
http://www.businesstimes.com.sg/real-estate/ura-and-redas-team-up-to-seek-public-involvement-for-urban-innovations
http://www.straitstimes.com/business/property/wanted-ideas-to-boost-quality-of-built-environment

Singapore Economy

New hub in CBD for fintech innovation to spur startup scene
In a move to spur more experimentation and collaboration in the local fintech scene, a new fintech innovation hub is being set up in the heart of the Central Business District. This will be a 100,000 sq ft space at 80 Robinson Road, a building owned by Hong Leong Group, said Monetary Authority of Singapore managing director Ravi Menon.
http://www.businesstimes.com.sg/technology/new-hub-in-cbd-for-fintech-innovation-to-spur-startup-scene
http://www.straitstimes.com/business/banking/new-fintech-innovation-hub-to-take-shape-in-spore-cbd

Singapore workers to see 2.7% real pay increase next year: survey
Workers in Singapore can expect to see a real salary increase of 2.7 per cent in 2018, according to the latest Salary Trends survey by ECA International (ECA). The figure factors in inflation, which the survey indicated to be approximately 1.3 per cent for the coming year. This means that wage-earners should expect to see a nominal salary increase of four per cent in 2018.
http://www.businesstimes.com.sg/government-economy/singapore-workers-to-see-27-real-pay-increase-next-year-survey-0
http://www.straitstimes.com/business/economy/spore-workers-could-see-27-real-pay-rise-next-year-survey

MAS to debut blockchain-based trade network with HK in 2019
Singapore is laying the groundwork to stay on top as a trading hub, with the Monetary Authority of Singapore (MAS) on Tuesday setting an early-2019 deadline for the roll-out of a global trade connectivity network (GTCN) with its Hong Kong counterpart.
http://www.businesstimes.com.sg/government-economy/mas-to-debut-blockchain-based-trade-network-with-hk-in-2019

Singapore Real Estate

Value of land deals ‘set to hit record in 2017’
With still a month and a half left to 2017, land transactions in Singapore, including collective sales, government land sales (GLS) and private sales, have hit a six-year high of S$12.6 billion. If all the pipeline deals, both public and private, materialise, the figure will be bumped up by another S$3.4 billion, bringing the total value of land transactions this year to S$16 billion – a historical record.
http://www.businesstimes.com.sg/real-estate/value-of-land-deals-set-to-hit-record-in-2017

Majority of BTO flats being launched to use new pre-fabricated method
For the first time, the majority of BTO flats launched will be built using a new pre-fabricated method that reduces the number of workers needed at construction sites, said the Housing and Development Board (HDB) on Tuesday. Of the 4,829 Build-to-Order (BTO) flats launched across five projects in the latest HDB sales exercise announced on Tuesday, 3,880 flats, or 80 per cent, will be built using the pre-fabricated pre-finished volumetric construction (PPVC) method.
http://www.businesstimes.com.sg/real-estate/majority-of-bto-flats-being-launched-to-use-new-pre-fabricated-method
http://www.straitstimes.com/singapore/housing/bto-launch-pre-fab-method-to-be-used-for-most-flats
http://www.channelnewsasia.com/news/singapore/hdb-flats-bto-sbf-november-sales-exercise-9404418
http://www.todayonline.com/singapore/8230-flats-launched-last-bto-and-sbf-exercise-2017

Resale prices of city-fringe condos hit record high in October: SRX
Resale prices for condos and private apartments in the city fringe or Rest of Central Region (RCR) reached a new high last month, going by SRX Property’s flash estimates. The index for RCR reached a new peak at 184.6 last month, exceeding the previous high of 182.1 back in August 2013. SRX Property’s indices go back to January 1995.
http://www.businesstimes.com.sg/real-estate/resale-prices-of-city-fringe-condos-hit-record-high-in-october-srx
http://www.straitstimes.com/business/property/resale-volume-for-private-homes-jumps-187
https://www.srx.com.sg/research/42832/non-landed-private-rents-decrease-by-07-hdb-rents-increase-by-03-in-october-2017

Singtel pitches hotel angle for Hill Street site
Singtel has put its Hill Street property up for for sale, using its redevelopment potential as the selling point, as an earlier Business Times report had anticipated. The telco has secured approval for a hotel development on the site. Market watchers told BT on Tuesday that the indicative pricing for the property may be around S$100 million.
http://www.businesstimes.com.sg/real-estate/singtel-pitches-hotel-angle-for-hill-street-site
http://www.straitstimes.com/business/property/singtel-puts-hill-street-site-up-for-sale-0

Blockbuster land deals signal property boost for next year
A series of blockbuster land deals in Singapore this year signal the property market is set to break out of its prolonged slump next year. A Chinese group lobbed a winning record bid for a residential plot, while Guocoland paid a record per-square-foot price for an office development site in the Central Business District. Office rents last quarter rose for the first time in 2½ years and home prices ended a four-year slide.
http://www.straitstimes.com/business/property/blockbuster-land-deals-signal-property-boost-for-next-year

Companies’ Brief

Fortis proposes to buy RHT Health Trust’s entire asset portfolio for S$966m
Fortis Healthcare Limited, the controlling shareholder of RHT Health Trust, is proposing to acquire the trust’s entire asset portfolio for 46.5 billion Indian rupees (S$965.95 million). In an exchange filing on Wed morning, RHT Health Trust Manager Pte Ltd said it has received a proposal from Fortis to acquire all the sale securities held by RHT Singapore’s wholly-owned subsidiaries, Fortis Global Healthcare Infrastructure Pte Ltd and RHT Healthtrust Services Pte Ltd.
http://www.businesstimes.com.sg/companies-markets/fortis-proposes-to-buy-rht-health-trusts-entire-asset-portfolio-for-s966m
http://www.straitstimes.com/business/companies-markets/fortis-proposes-to-buy-rht-health-trusts-entire-asset-portfolio-for-s966m

Wheelock Properties Q3 bottom line strengthened by write-back
Wheelock Properties posted a 72 per cent year-on-year jump in profit to S$48.77 million for Q3 ended Sept 30, boosted partly by a S$10.83 million write-back of diminution in value made on The Panorama development in Singapore. Revenue rose nearly 20 per cent to S$182.65 million on the back of higher revenue from its property development business.
http://www.businesstimes.com.sg/companies-markets/wheelock-properties-q3-bottom-line-strengthened-by-write-back

Views, Reviews & Forum

Strong global rebound is on firm footing
After a long period of sub-par growth, the global economy has turned a corner this year. Global GDP growth has been tracking at an average of 3.9 per cent SAAR (seasonally adjusted annual rate) for the past three quarters. Trade has expanded by 4.7 per cent year-over-year in August 2017, significantly higher than the average of 1.7 per cent over 2015-16.
http://www.businesstimes.com.sg/executive-money/strong-global-rebound-is-on-firm-footing