Strict short-term rental rules likely to have limited impact
Given the stringency of the newly-proposed regulations for the rental of homes for short-term stays, the impact on Singapore’s leasing landscape will be limited, say property-market experts. The Urban Redevelopment Authority (URA) on Monday began a public consultation on its proposed framework for regulating short-term stays, which could affect home-sharing platforms such as Airbnb.
Financial inclusion important amid tech changes, says MAS
Banks and fintech businesses must make sure that underserved communities are not left behind as the finance industry changes with technology, said Mr Ong Chong Tee, Monetary Authority of Singapore (MAS) deputy managing director of financial supervision, yesterday. “In the quest to innovate, and as banks develop the sophistication to sharpen the profile of each customer, we should not overlook the need for financial inclusion – especially access to basic banking and financial services for underserved communities,” said Mr Ong, during a German-Singaporean financial forum at the Singapore Management University.
Singapore Real Estate
Analysts make light of March fall in developers’ home sales
March private home sales dived almost 60 per cent from a year ago – but industry players are unfazed, citing a dearth of new launches as the main cause. Sentiment remains buoyant and, with the slew of launches rolled out this month and more to come, buyers are expected to be drawn out; developers and their marketing agents will be kept busy.
Faber Garden on the market for S$1.18b
With a reserve price of S$1.18 billion, the freehold Faber Garden at Upper Thomson could be Singapore’s largest collective sale deal so far this year and the second largest ever, if it succeeds. The site at Angklong Lane is being launched for sale by public tender on April 17. At the reserve price, the 233 residential apartment owners will receive a gross payout between S$4.38 million and S$6.75 million, while the three commercial shop units will receive a gross payout of approximately S$1.99 million and S$4.83 million, according to Galven Tan, executive director of capital markets at CBRE, the marketing agent.
Construction for Singapore’s end of high-speed rail expected to start in 2019
The Land Transport Authority (LTA) has called tenders for the design and construction of tunnels and associated facilities for Singapore’s end of the high-speed rail project connecting it with Kuala Lumpur. Construction is expected to start next year. “We called the tenders for the design and construction of twin bored tunnels and associated facilities on April 6, and the design and construction of cut-and-cover tunnels leading into the Jurong East terminus on April 11,” an LTA spokesman said.
Keppel DC Reit DPU down 4.8% in Q1
Keppel DC Reit has posted a first-quarter distribution per unit (DPU) of 1.80 Singapore cents, down 4.8 per cent from 1.89 Singapore cents in the same period a year earlier. Excluding the one-off capital distribution of 0.15 Singapore cent per unit recorded in Q1 a year earlier in relation to Keppel DC Singapore 3, the adjusted DPU for Q1 2017 would be 1.74 Singapore cents.
Keppel Infrastructure Trust’s Q1 DPU flat
Keppel Infrastructure Trust (KIT) yesterday reported a distribution per unit (DPU) of 0.93 Singapore cent for the first quarter of 2018, unchanged from the same period a year ago. Profit attributable to unit holders rose 10.9 per cent to S$7.5 million for the quarter, due mainly to higher contributions from City Gas, a producer and retailer of piped town gas, and lower professional fees incurred for the outage in Basslink.
Metro unit to invest S$114m in Jakarta residential project
Property development and investment group Metro Holdings has tied up with the Trans Corpora Group (Trans Corp) to develop, market and sell two residential towers in Bintaro, Jakarta, for a total investment value of 1.33 trillion rupiah (S$127 million). Metro has committed to fund 90 per cent of the investment, or about 1.20 trillion rupiah (S$114 million) through its unit, Metro Property Investment (MPI). The Lee Kim Tah Group, which owns the remaining 10 per cent of MPI, will contribute 10 per cent.
First Sponsor rights issue oversubscribed
Mainboard-listed First Sponsor Group’s rights issue to raise up to S$162.2 million was oversubscribed by 25.9 per cent upon its close on Apr 12. The one-for-four rights issue was of 3.98 per cent perpetual convertible capital securities at S$1.10 each. Valid acceptances comprised 98.9 per cent of the available convertible securities.
Raffles Education plans to sell Australia property for A$82m
Raffles Education has entered into a heads of agreement with Australia’s Propertylink for the planned sale of its entire freehold interest in a six-storey commercial building at 1-3 Fitzwilliam Street, Parramatta, in Australia’s New South Wales. The sale consideration is A$82 million (S$83.6 million) and a definitive agreement has not been reached.
Soilbuild Reit’s DPU falls 11% to 1.324 Singapore cents
Soilbuild Business Space Reit (Soilbuild Reit) posted a drop in distribution per unit (DPU) of 11 per cent to 1.324 Singapore cents, from 1.489 Singapore cents for its first quarter ended March 31. Gross revenue dropped 11.5 per cent to S$19.4 million from the previous year. Net property income fell 11.6 per cent to S$17.0 million from the previous year.
Views, Reviews, Forum & Others
Proposed home-stay rules set the bar high for owners
After several years in the pipeline, a framework trying to balance Airbnb-style short-term stays and the associated disamenities is up for public consultation. The main takeaway from the Urban Redevelopment Authority’s (URA) suggestions yesterday was a 90-day rental cap, as long as owners holding 80 per cent of the share value give the nod to a change in land use.
Mixed reactions to URA proposal from home owners
The Urban Redevelopment Authority’s (URA) proposal to allow short-term rental of condominium units via platforms like Airbnb has drawn mixed reactions. Yesterday’s proposal will allow condo owners to rent out their properties for short-term stays if those holding at least 80 per cent of the development’s share value agree to allow such rentals. Currently, such rentals are illegal, but numerous listings can still be found online.
Global Economy & Global Real Estate
Global economy to grow 3.5% in 2018 but trade is key risk – IIF
Retail sales jump 0.6% after three straight months of declines
In Silicon Valley, US$800k buys you a burned shell of a house
WeWork venture pays £580m for London complex
E-commerce gives boost to warehouse Reits
In age of Amazon, you could invest in tech – or in warehouses
London house prices keep falling
Japan, China warn against perils of trade war
China May Be Headed for Rare Property Defaults, Neuberger Says
‘Drug flats’ blight the heart of Spanish cities
Fortis declines to engage in takeover offer, says IHH
Additional Articles of Interests – Local & Overseas Real Estate
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