DAILY NEWS

Daily News – 16th July 2019

Singapore Real Estate

June new home sales down 13.8% from May
Demand for new homes in June – typically a slow month in the Singapore property market due to the school holidays – appeared resilient although developers sold fewer units. Analysts noted that last month’s 13.8 per cent drop in sales from May was not as weak compared with the same month-on-month period in recent years.
https://www.straitstimes.com/business/property/new-home-sales-in-june-up-255-to-821-units-from-year-ago-down-14-from-may-ura-data
https://www.businesstimes.com.sg/infographics/june-new-homes-sales-exceed-launches-amid-holiday-lull
https://www.channelnewsasia.com/news/singapore/new-private-homes-highest-june-sales-freehold-condos-popular-11721044

Singapore construction sector may face long slowdown in medium term: Fitch
Singapore’s construction sector faces increasing risks of a protracted slowdown in growth in the medium term, due to the poorer global economic outlook over the next few years, Fitch Solutions Macro Research said in a report on Monday. The sector will see growth weakening to 2.7 per cent in 2020 and 0.5 per cent in 2021 in real terms, Fitch said.
https://www.businesstimes.com.sg/real-estate/singapore-construction-sector-may-face-long-slowdown-in-medium-term-fitch
https://www.straitstimes.com/business/economy/singapores-construction-sector-may-face-protracted-slowdown-in-medium-term-fitch

Gibraltar Crescent site put up for sale to pilot dementia care village
The Urban Redevelopment Authority (URA), on behalf of the Ministry of Health (MOH), has launched a site at Gibraltar Crescent for sale by public tender to pilot a new residential care community concept for people with dementia. The site, with a 30-year lease, is located near Sembawang Park and comprises a cluster of 10 state bungalows that sits on two land plots. The larger plot is 26,350.7 square metres (sq m)…
https://www.businesstimes.com.sg/real-estate/gibraltar-crescent-site-put-up-for-sale-to-pilot-dementia-care-village

One Pearl Bank condo draws 4,000 in turnout during weekend preview
Over 4,000 people showed up at the recent One Pearl Bank public preview over the weekend of July 13 and 14, property developer CapitaLand said on Monday. One Pearl Bank is a 99-year leasehold condominium with 39 storeys, occupying a land area of 82,376 square feet (sq ft) and is expected to be completed by 2023.
https://www.businesstimes.com.sg/real-estate/one-pearl-bank-condo-draws-4000-in-turnout-during-weekend-preview
https://www.straitstimes.com/business/property/one-pearl-bank-condo-draws-4000-in-turnout-during-weekend-preview

Singapore Economy

IMF cuts forecast for Singapore’s 2019 economic growth to 2%
[Singapore] The International Monetary Fund (IMF) has trimmed its 2019 economic growth forecast for Singapore to 2 per cent from 2.3 per cent, the Washington-based lender said on Tuesday, as global trade tensions hit exports from the city-state. Singapore’s economy grew just 0.1 per cent in the second quarter, its slowest annual pace in a decade, raising bets of a recession and monetary policy easing.
https://www.businesstimes.com.sg/government-economy/imf-cuts-forecast-for-singapores-2019-economic-growth-to-2
https://www.straitstimes.com/business/economy/imf-cuts-forecast-for-singapores-2019-economic-growth-to-2-from-23
https://www.channelnewsasia.com/news/business/imf-cuts-forecast-singapore-2019-economic-growth-11724156

DBS downgrades full-year Singapore growth forecast to 0.7%, OCBC lowers it to 0-1%
In the wake of disappointing second-quarter flash data, economists have trimmed their full-year growth predictions for Singapore in 2019. DBS Group Research on Monday downgraded its full-year gross domestic product (GDP) growth forecast to 0.7 per cent, in light of the latest set of “exceptionally poor” data, economist Irvin Seah said.
https://www.businesstimes.com.sg/government-economy/dbs-downgrades-full-year-singapore-growth-forecast-to-07-ocbc-lowers-it-to-0-1

Companies’ Brief

Lower one-off income hits Keppel Reit’s Q2 DPU
Keppel Reit’s second-quarter distribution per unit (DPU) slipped 2.1 per cent to 1.39 Singapore cents, due mainly to lower one-off income from Ocean Financial Centre and lower revenue and net property income from Bugis Junction Towers. The Reit had received lower one-off income due to the early surrender of leases and absence of rental support top-up payments for its one-third interest in…
https://www.businesstimes.com.sg/companies-markets/lower-one-off-income-hits-keppel-reits-q2-dpu

Keppel Infrastructure Trust declares flat Q2 DPU of 0.93 cent
Keppel Infrastructure Trust (KIT) on Monday reported a flat distribution per unit (DPU) of 0.93 Singapore cent for the second quarter of 2019 despite marked improvements year on year in its distributable cash flow (DCF), revenue and net profits. The trust with businesses in the three sectors of energy, distribution & network, and waste & water reported a 26.3 per cent year-on-year increase in DCF from S$36.2 million…
https://www.businesstimes.com.sg/companies-markets/keppel-infrastructure-trust-declares-flat-q2-dpu-of-093-cent

Suntec Reit buys freehold Grade A office building in Adelaide for A$148.3m
Suntec Reit has expanded its presence in Australia with its latest acquisition of the entire stake in a freehold Grade A office building in Adelaide for A$148.3 million (S$141.4 million). ARA Trust Management (Suntec), the manager of the real estate investment trust (Reit), said in a media statement issued on Monday that the 12-storey property has an approximate net lettable area of 282,000 square feet…
https://www.businesstimes.com.sg/companies-markets/suntec-reit-buys-freehold-grade-a-office-building-in-adelaide-for-a1483m

Tiong Seng makes JV its unit by buying remaining 56% stake for S$1
Mainboard-listed Tiong Seng Holdings will acquire the remaining 56 per cent interest in a joint-venture (JV) company Geostr-RV for S$1, making the JV a wholly owned subsidiary of the construction, civil engineering and property development group. Tiong Seng said on Tuesday morning that its wholly owned subsidiary, Robin Village International, had entered into a restructuring agreement with Geostr…
https://www.businesstimes.com.sg/companies-markets/tiong-seng-makes-jv-its-unit-by-buying-remaining-56-stake-for-s1
https://www.straitstimes.com/business/companies-markets/tiong-seng-to-acquire-remaining-56-stake-in-joint-venture

Knight Frank Singapore names Alan Tan head of agency arm
Property consultancy Knight Frank Singapore has appointed real estate veteran Alan Tan to head its agency business, KF Property Network (KFPN), with immediate effect, it said on Monday. Mr Tan will lead a team of more than 600 real estate salespersons and drive the business of KFPN. He reports to Wendy Tang, group managing director.
https://www.businesstimes.com.sg/real-estate/knight-frank-singapore-names-alan-tan-head-of-agency-arm
https://www.straitstimes.com/business/property/knight-frank-singapore-names-alan-tan-head-of-agency-arm

Views, Reviews, Forum & Others

Sentosa Cove in need of a boost in profile
Mainboard-listed property groups City Developments Ltd (CDL) and Ho Bee Land typically aim to sell off all units in their residential property developments, but in the waterfront housing district of Sentosa Cove, they have been leasing out some units in their respective projects in recent years. This is not by choice, but due to the tough condo sales market in the locale. Transactions have been relatively few at Sentosa Cove and prices, weak.
https://www.businesstimes.com.sg/companies-markets/sentosa-cove-in-need-of-a-boost-in-profile