The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 16th December 2016

Top Story

Supply of private homes from confirmed government land sales up 7.4% for first-half of 2017
The supply of private homes from confirmed government land sales is set to go up in the first-half of 2017.  On the Confirmed List are five private residential sites which can yield 2,330 units, higher than the supply of 2,170 units from confirmed sale sites in the second half of this year, the Ministry of National Development (MND) announced on Friday (Dec 16).  But the supply of 2,330 units from the Confirmed List under Government Land Sales (GLS) Programme for 1H2017 is closer to the final 2,445 units resulting from government land sales in the second-half of this year after the sale of a reserve list site in December was triggered, MND noted.

Developers’ home sales in Nov down 31.4% from Oct, 13.3% up y-o-y
Singapore residential sales clocked by developers in November were stronger than a year ago but weaker compared to October, according to statistics released by the Urban Redevelopment Authority (URA) on Friday.  Last month, developers sold 860 private residential units, 31.4 per cent lower than October, but 13.3 per cent higher than a year ago.  Including executive condominiums (ECs), they sold a total 1,110 units, which marked a 28 per cent decline from a month ago but a 17.5 per cent increase from last year’s November.

Singapore Economy

SGD slips; Sibor, SOR higher following Fed hike
As expected, the Singapore dollar fell and local interest rates rose on Thursday following the interest rate hike by the US Federal Reserve.  The Fed raised the target range for its federal funds by 25 basis points to 0.5 per cent to 0.75 per cent during its Dec 14 meeting.  At 8.30am on Thursday, one US dollar was worth S$1.4432, up 1.4 per cent from its close on Wednesday of S$1.4237, said Reuters. It recovered somewhat later in the morning and stood at S$1.4370 at 11.58am.  The 3-month Singapore interbank offered rate (Sibor), typically used to price home loans, rose 3 points to 0.963 per cent. The 3-month SOR (swap offer rate) also rose 3 points to 0.851 per cent on Wednesday. The benchmark for commercial loans is updated late at night.

Total retail sales up 2.2% in October, down 0.3% without cars
Retail sales in Singapore rose 2.2 per cent in October from a year ago, still mainly driven up by cars, according to figures released by the Department of Statistics on Thursday (Dec 15).  Excluding vehicle sales, takings at the tills fell again, dipping 0.3 per cent year on year. But this can be considered an improvement when compared with September when sales, not counting vehicles, fell 1.8 per cent. Total retail sales in September was also up 2.2 per cent year on year.  Compared with September, October retail sales climbed 1.7 per cent. Excluding motor vehicles, they increased 1.5 per cent.

Singapore Real Estate

2016 marks highest number of developer sales in 3 years
Developers have already sold more new, private residential units and executive condominiums (ECs) so far this year than the whole of last year, thanks to the momentum sustained in November when two new projects were launched. This means 2016 will mark the highest number of new sales by developers in three years.  A total of 7,769 private residential units were sold by developers in the first 11 months, surpassing last year’s 7,440 units. Another 3,804 ECs were sold in the same 2016 period, exceeding the 2,550 ECs sold in 2015.

Property stocks see muted price slides
Real estate stocks experienced slight dips on Thursday, following the Fed’s rate increase by a quarter point. Analysts said these price declines were by no means drastic as much of the expectation had already earlier been priced in.  Widely anticipated in financial markets for several weeks, futures traders had already put the probability of a rate increase at 100 per cent. Azure Capital chief executive Terence Wong told The Business Times: “I do believe that the writing was already on the wall.”

Higher rates for peak hours at 22 popular HDB carparks
Drivers popping into the city area or a crowded hawker centre in the heartland have another reason to make it quick.  Parking at 22 popular Housing Board-managed carparks across the island has become more expensive during peak hours, with the HDB hoping it will deter drivers from lingering.  This hike is on top of a nationwide increase in rates at public carparks that began on Dec 1. Overall rates increased by 10 cents to 20 cents per half hour, depending on location.

Old bottling factory may be conserved, says URA
A disused bottling factory, the former National Aerated Water Company, could be conserved, the Urban Redevelopment Authority (URA) said in an unexpected announcement.  The 62-year-old building near the Kallang River is considered to be one of the last few vestiges of Singapore’s industrial past.  Last week, it was sold to Malaysia-listed developer Selangor Dredging for $47 million. The freehold site near the Potong Pasir MRT station can yield 117 apartments.

Companies’ Brief

CapitaLand buys Dublin hotel for 55.1m euros
Real estate company CapitaLand has acquired the 136-unit Temple Bar Hotel in Ireland for 55.1 million euros (S$83.6 million).  The hotel, which is located in the Temple Bar district in the city centre of the Irish capital Dublin, is the sole major asset of Sabden Limited, a company incorporated in Ireland, said CapitaLand in a release on Friday morning.

GLP sets up US$620m fund, completes US$1.1b US acquisition
Mainboard-listed warehouse provider Global Logistic Properties (GLP) has announced the establishment of a US$620 million fund that is expected to invest US$1.5 billion over three years, a day after it completed an US$1.1 billion acquisition of US properties.  Named GLP US Income Partners III, the fund has secured US$620 million in equity commitments. Six global institutional investors from Asia, the US and Middle East have committed for a stake of about 90 per cent, GLP said in a release on Thursday morning.

Mapletree Logistics Trust buys 4 Australian properties for A$142m
Mapletree Logistics Trust (MLT) completed a purchase on Thursday of four properties with a total of 103,517 square metres in gross floor area in Victoria, Australia, for A$142.2 million (S$151.9 million).  An acquisition fee of A$1.4 million is payable to the trust manager in accordance with the trust deed constituting MLT.

Views, Reviews & Forum

What you need to know when buying a property for investment
The Monetary Authority of Singapore (MAS) released its latest financial stability review last month, noting that demand for housing remains strong. There has been an increase in the take-up of both new and resale private homes.  According to data from the Urban Redevelopment Authority, in the first three quarters of this year, a total of 18,330 new and resale homes were sold, 14.6 per cent higher than in the corresponding period last year.

Ctrl-alt- delete for Funan
The site which previously housed Funan DigitaLife Mall in North Bridge Road was a hive of activity on Tuesday as workers dug, drilled and hammered away in preparation for a new development.  The old mall,which specialised in electronics and IT-related goods, is getting a do-over as a “lifestyle destination”, with offices, serviced residences and retail stores brought together in one place.

Global Economy & Global Real Estate

Trump pulls out of troubled Brazil hotel project

Fed commentary remains broadly supportive of risky assets

Signs of housing loan rebound in China’s capital “worth attention”

Hong Kong property shares look shaky as mortgage costs increase

Aussie property boom spurs real estate loans luring Asian banks

Vancouver Homes Are So Pricey That Government Will Pitch In

Norway tightens mortgage rules amid fears of house-price bubble

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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