The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 15th November 2018

Top Stories

Global trading system needs reforms: PM Lee
The global trade system needs reforms to stay relevant, Prime Minister Lee Hsien Loong told Asean and other world leaders on Wednesday, echoing a criticism that has been voiced by other high-level Singapore officials.  Mr Lee said that economic growth can be sustained only if the region is open and connected and leaders “safeguard the multilateral trading system as the basis of global commerce”.

RCEP conclusion delayed due to ‘unique challenges’: PM Lee
The much-awaited finalisation of the Asean-led Regional Comprehensive Economic Partnership (RCEP) will not materialise by the end of 2018 as initially hoped, confirmed Prime Minister Lee Hsien Loong in his opening remarks at the 2nd RCEP Summit on Wednesday.  The participating countries will work towards the completion of RCEP talks by next year instead, as negotiations have taken “longer than usual due to the unique challenges” confronting the mega free trade deal, explained Mr Lee.

Asean has to stay open to sustain its dynamism: PM Lee
Asean remains a bright spot in the world economy at a time of slowing global growth and rising protectionism, but it has to stay open and connected to sustain its economic dynamism, Prime Minister Lee Hsien Loong said yesterday.  The grouping’s members should also “safeguard the multilateral trading system as the basis of global commerce”, he added.


Singapore Economy

Digital currency for the freedom to quaff a pint
If, in time, beer drinkers get penalised on their credit scores, could a state-backed digital currency stand in between to solve this bias?  The managing director of the International Monetary Fund Christine Lagarde lobbed this analogy to convince central banks to explore the issuing of digital currencies.  The debate comes as the Monetary Authority of Singapore has told The Business Times that it would be “conservative” on this front, even as central banks in Canada, China, Sweden, and Uruguay are considering launching their versions of such currencies.

Private exchanges a good way for startups to rehearse for IPO
Firms can look to private exchanges for capital raising and as a way to prepare for an eventual listing, said panellists on Wednesday during the Global Investor Summit, which took place during the Singapore FinTech Festival.  The experts, who come from both the private and public market spheres, also largely agreed that there would be a trend of more private exchanges being subsumed into public ones.

China, Singapore agree to deepen ties in various areas
Singapore-China relations have been “progressive, forward-looking and strategic”, and leaders from both countries have committed to working closer together in a wide range of areas, from science and technology to trade and culture.  In a six-page joint statement yesterday, the two governments said they would build on the foundations laid by past generations of leaders from both sides and maintain frequent high-level exchanges.

New MOU to boost Asean-Russia trade
A new agreement signed between Asean and the Eurasian Economic Commission yesterday is expected to contribute to trade, investment and economic expansion between South-east Asian countries and member states of the Eurasian Economic Union (EAEU).  This comes as trade between the two blocs stood at US$35.7 billion (S$48.7 billion) last year, an increase of 40 per cent from 2016.

Progress in review of FTA with Australia, NZ
A review of the Asean-Australia-New Zealand Free Trade Area agreement has recently been concluded, and Asean leaders and Australia said yesterday that they looked forward to discussions to upgrade the pact.  At the Asean-Australia informal breakfast summit, the leaders also agreed on the need to promote regional economic integration, maintain free and open markets, and resist protectionism, the chairman’s statement on the meeting said.

Seoul’s New Southern Policy marks intent to prosper with Asean: Moon
South Korea’s New Southern Policy marks its strong commitment to prosper together with Asean, President Moon Jae-in said as he invited leaders of South-east Asian nations to special summits that his country plans to host next year.  This is because 2019 marks 30 years of dialogue relations between Asean and South Korea, he said yesterday in his opening remarks at the Asean-Republic of Korea Summit at the Suntec Singapore International Convention and Exhibition Centre.

Japan’s Indo-Pacific strategy aligns well with Singapore, Asean priorities: PM Lee
The core principles of Japan’s Free and Open Indo-Pacific Strategy, which seeks to promote the rule of law at sea and build high-quality infrastructure in locations across the Indian and Pacific oceans, align well with Singapore’s and Asean’s priorities, Prime Minister Lee Hsien Loong said yesterday.


Singapore Real Estate

Condo rents slip 0.7% in October, HDB rents inch up 0.3%: SRX
The leasing market for private non-landed homes remained soft while improving slightly for HDB flats, according to flash data from real estate portal SRX on Wednesday.  Rents for condominiums and private apartments dropped for a second straight month, slipping 0.7 per cent in October from the previous month.

BCA eyes ‘live’ demonstration projects in digital push
A plan has been launched to encourage the building industry to go digital, by providing it with training, digital platforms and “live” demonstration projects.  The aim is to have 40 to 60 construction sites by 2020 that implement Integrated Digital Delivery (IDD) technologies that cut out laborious paper-based processes and allow designers, builders and facility managers to communicate with one another digitally.

Nearly half of Kent Ridge Hill Residences units sold at official launch
Almost half of the 250 units at Kent Ridge Hill Residences were sold at its official launch last weekend, said home-grown property developer Oxley Holdings.  A total of 116 units at the five-storey property along South Buona Vista Road were snapped up on Saturday and Sunday, Oxley said in a news release on Tuesday.  The average price of the units sold was S$1,700 per square foot. Eighty per cent of the units sold comprised one-bedders, one-bedroom and a study, and two-bedroom units.


Companies’ Brief

CapitaLand sees Q4 earnings boost from recognition of residential units sold in China
Property developer CapitaLand expects the fourth quarter to receive a boost from a bumper recognition of residential units sold in China.  As at Sept 30, the group had 7,000 units worth 15.9 billion yuan (S$3.2 billion) sold, with about 40 per cent of this value or 6.36 billion yuan expected to be recognised in the fourth quarter.

SingHaiyi cancels bulk sale involving 34 condo units in California
Property developer SingHaiyi Group has terminated the bulk sale involving 34 condominium units at US$23.1 million of a US commercial real estate project.  It said that its subsidiary Vietnam Town Property terminated the deal on Nov 14 because the buyer failed to close the escrow for 31 of the 34 condominium units on or before Nov 13 due to a lack of financial resources.

Fragrance plans hotels along Waterloo St, Hoe Chiang Rd
Fragrance Group, controlled by James Koh Wee Meng, is planning to develop hotels along Waterloo Street and in the Tanjong Pagar area.  It plans to redevelop the 999-year leasehold Waterloo Apartments, which it has just been awarded through a S$131.1 million collective sale, into a hotel. The price it is paying works out to S$2,172 per square foot per plot ratio.

United Engineers net profit falls 16% in Q3
United Engineers (UE) has posted a net profit of S$7.7 million in the third quarter, down 16 per cent from the same period a year earlier.  Earnings per share was 1.2 Singapore cents, down from a restated 1.4 Singapore cents in the third quarter last year.

Cromwell E-Reit posts 10-month DPU above forecast
Cromwell European Reit (Cromwell E-Reit) on Wednesday reported that its distribution per unit (DPU) for the 10 months ended Sept 30 was 3.61 euro cents, beating its forecast by 1.9 per cent.  Revenue for the pan-European industrial and commercial real estate investment trust (Reit) came in at 104.3 million euros (S$162.6 million), 2 per cent higher than the 102.3 million euros forecast in its prospectus when it listed in November 2017.

Who’s Who in Property 2018
Aurum Land (Private) Limited
Oxley Holdings Limited
Qingjian Realty (South Pacific) Group Pte Ltd
SingHaiyi Group Ltd
S P Setia
Tuan Sing Holdings Limited


Views, Reviews, Forum & Others

Shoebox units remain popular with developers and buyers alike
The latest move by the government to revise a guideline that caps residential units in projects outside the Central Area (CA) is laudable in its intent to curb excessive building of shoebox units and prevent new projects from posing a strain on local infrastructure.  The updated rules come at a time when the proportion of shoebox units in residential projects have already come off their 2011-2012 highs to more rational levels. But given that developers continue to build shoebox units to keep overall price quantums affordable, the guidelines remain relevant in that there is still a need to regulate unit sizes in some ways.

Singapore real estate continues to hold value for investors
After years of lacklustre foreign institutional interest in the Singapore commercial property market, Singapore appears to be on the radar of foreign institutional investors again.  Inflows from foreign institutional investors – namely equity and pension funds, insurance, sovereign wealth funds among others – into Singapore over the past three years between 2016 and 2018 year-to-date (YTD) amounted to S$5.3 billion in transaction value, almost five times that of the S$1.1 billion during the preceding six years between 2010 and 2015.

America lays down gauntlet for Asean, Apec summits
The global spotlight turns to the Asia-Pacific this week, with world leaders from Russia to Australia and India to Canada attending the Asean and Apec summits. With states in attendance accounting for more than 50 per cent of global GDP and nearly half of world trade, US-Chinese rivalry will be centre stage in their respective attempts to shape the regional order.

Speed up efforts to develop a global financial framework
In the postwar period, the global economic and financial architecture was dominated by the advanced economies in the West. They designed the international monetary system, international development financing frameworks and global trade liberalisation schemes.


Global Economy & Global Real Estate

Brexit statement in UK Parliament likely on Thursday

Apec summit: The Xi show by the sea shore

China economy shows signs of stabilising in Oct, but pressures remain

China’s Oct property investment growth hits 10-month low

Japan’s economy contracts more than expected in Q3


Additional Articles of Interests – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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