DAILY NEWS

Daily News – 17th March 2016

Singapore Economy

Economists again cut forecast for Singapore’s 2016 GDP growth
Pencilling in a deeper-than-thought manufacturing contraction and a slowdown in finance and insurance, Singapore’s private-sector economists have again pared their growth expectations for 2016. They now expect the economy to expand 1.9 per cent this year – down from their projection of 2.2 per cent a quarter ago, a quarterly poll of professional forecasters by the Monetary Authority of Singapore (MAS) has found.
http://www.businesstimes.com.sg/government-economy/economists-again-cut-forecast-for-singapores-2016-gdp-growth

Singapore Real Estate

Economy hotels likely to be worst hit in 2016: HVS poll
A projected decline in Singapore hotel market performance this year is expected to be most pronounced for hotels in the economy segment, due to the significant increase in supply and intensifying competition – shows a survey of Singapore hotel industry professionals conducted by hotel advisory group HVS.
http://www.businesstimes.com.sg/real-estate/economy-hotels-likely-to-be-worst-hit-in-2016-hvs-poll

Some privatised ECs in high demand
Some privatised executive condominiums (ECs) are still in high demand and notching up huge gains despite the cool property market. Just ask OrangeTee associate director Alan Yap, who gets calls every week for units he is marketing at Bishan Loft. “Newer and pricey condos in the area – Sky Vue and Sky Habitat – have helped Bishan Loft prices appreciate,” said Mr Yap.
http://www.straitstimes.com/business/property/some-privatised-ecs-in-high-demand

Property firms tapping bond market to raise funds at attractive rates
More property companies are leveraging the bond market to raise funds, with Ascott Reit and City Developments (CDL) both issuing bonds on Wednesday. Ascott Reit issued S$120 million in eight-year bonds with a 4 per cent coupon rate, while CDL raised some S$115 million – upsized from S$80 million – in five-year bonds at a coupon rate of 2.93 per cent.
http://www.businesstimes.com.sg/companies-markets/property-firms-tapping-bond-market-to-raise-funds-at-attractive-rates

Companies’ Brief

Singapore property sector
February remained another quiet month with a 23 per cent year-on-year drop in new private residential units sold to 301 transactions. Given the lack of new property launches, developers focused on marketing unsold stock. Sales volume in OCR (Outside Central Region) grew 5% y-o-y while central region fell 41% y-o-y largely due to RCR (Rest of Central Region). However, month-on-month, sales volume in OCR fell 13% (or 49 units) while volumes in the CCR (Core Central Region) and RCR regions remained relatively stable.
http://www.businesstimes.com.sg/companies-markets/brokers-take-243

Hiap Hoe unit to sell second Melbourne property
Local developer Hiap Hoe, through its subsidiary Meteorite Property, has entered into an agreement to sell a second property in Melbourne to an Australian developer. It will go for A$60 million (S$61.7 million) before taxes. The two parties also announced that plans for a joint venture that was to manage the development of the said property will be annulled.
http://www.businesstimes.com.sg/companies-markets/hiap-hoe-unit-to-sell-second-melbourne-property