DAILY NEWS

Daily News – 16, 17 & 18 January 2016

Singapore Real Estate

Public sector, civil engineering projects to drive construction demand this year: BCA
Construction demand this year will be propped up by public sector projects amid an expected slowdown in the private sector, with a major shift towards more civil engineering works. The Building and Construction Authority (BCA) said on Friday that S$27-34 billion worth of construction contracts are expected to be awarded this year, of which 65 per cent will come from the public sector.
http://www.businesstimes.com.sg/real-estate/public-sector-civil-engineering-projects-to-driveconstruction-demand-this-year-bca
http://www.straitstimes.com/business/strong-supply-of-public-building-jobs

Caution remains the buzzword for now
Developers sold 7,529 private homes in 2015, according to preliminary Urban Redevelopment Authority (URA) data on Friday, up 2.9 per cent from 7,316 a year earlier. They also found buyers for 2,562 executive condo (EC) units last year, an increase of 62.4 per cent from 2014’s 1,578. ECs are a public-private housing hybrid.
http://www.businesstimes.com.sg/real-estate/caution-remains-the-buzzword-for-now-0

New private home sales drop 49%, but tipped to increase as prices fall
New private home sales slumped 49 per cent last month from the previous month in the absence of fresh project launches during the traditionally lull year-end period, with property analysts projecting that sales will pick up in the months ahead, especially with prices expected to fall further.
http://www.todayonline.com/business/property/private-home-sales-fall-49-december

Singapore developer plans healthcare hubs in 20 to 40 Chinese cities
Less than a year after making its first foray into China’s healthcare sector, Singapore developer Perennial Real Estate Holdings has now set ambitious goals for itself: to set up integrated healthcare hubs in 20 to 40 Chinese cities. The concept will be similar to that of the Perennial International Health and Medical Hub in south-western Chengdu city, which is touted as the largest integrated healthcare development in western China with 280,000 sq m of gross floor area.
http://www.straitstimes.com/asia/east-asia/singapore-developer-plans-healthcare-hubs-in-20-to-40-chinese-cities

Muis wins control of donated properties
Some properties in Geylang’s red-light district have come under the management of the Islamic Religious Council of Singapore (Muis). This emerged after the High Court recently ruled that the properties donated more than half a century ago to fund a girls’ school in India were subject to a wakaf, or a charitable trust. All such properties, according to the Administration of Muslim Law Act (Amla), come under Muis’ control.
http://www.straitstimes.com/singapore/courts-crime/muis-wins-control-of-donated-properties

KepLand buys 22.4% of 112 Katong for S$51.4m
Keppel Land has acquired a 22.4 per cent stake in 112 Katong lifestyle mall for S$51.4 million. The acquisition of the stake in the mall from BHG Holdings, BreadTalk Group and Perennial Real Estate Holdings will be made via wholly-owned subsidiary DC Reit Holdings. It is to be funded through internal working capital. http://www.businesstimes.com.sg/companies-markets/kepland-buys-224-of-112-katong-for-s514m
http://www.straitstimes.com/business/property/keppel-land-buys-112-katong-stake-for-514m
http://www.channelnewsasia.com/news/singapore/keppel-land-buys-stake-in/2433206.html

StreetSine launches new app
Streetsine has launched a new application called X-Listing Price. X-Listing Price is a pricing mechanism that combines computer-generated values with expert opinion. It consists of four components: X-value, professional adjustments, valuer adjustments and the negotiation gap. X-Value serves as the foundation for X-Listing price.
http://www.businesstimes.com.sg/real-estate/streetsine-launches-new-app
http://www.straitstimes.com/business/property/x-listing-price-app-to-help-sellers-price-their-home

HDB living captured in picture book
http://www.straitstimes.com/singapore/hdb-living-captured-in-picture-book

Companies’ Brief

Keppel Reit sells Sydney property for A$160m
Keppel Reit will be divesting its stake in a Sydney commercial building for A$160 million (S$158 million). The sale of its 100 per cent interest in 77 King Street to ARE Noble, a wholly-owned subsidiary of Invesco Asia Core Fund, will result in a divestment gain of about A$28 million, it said.
http://www.businesstimes.com.sg/companies-markets/keppel-reit-sells-sydney-property-for-a160m
http://www.straitstimes.com/business/keppel-reit-divests-sydney-office-building-for-158m

HDB plans largest bond issue yet
Banks are bidding for the largest issue yet from the Housing Board, totalling up to $1.6 billion, said the International Financing Review. HDB has asked banks for proposals to sell a seven-year bond for a target size of $1 billion and a $600 million greenshoe.
http://www.straitstimes.com/business/property/hdb-plans-largest-bond-issue-yet

Sakae suits against ex-director, others begin
A second suit to be heard is against various defendants who allegedly conducted the affairs of Griffin Real Estate Investment Holdings (GREIH) “in a manner that is oppressive and prejudicial” to the interests of Sakae, which is a minority shareholder of GREIH.
http://www.straitstimes.com/business/companies-markets/sakae-suits-against-ex-director-others-begin

Lessons from Lian Beng for remuneration committees
http://www.businesstimes.com.sg/companies-markets/lessons-from-lian-beng-for-remunerationcommittees

View, Reviews & Forum

Falling rents good for raising start-ups
With industrial rents in Singapore expected to dip in the coming year on the back of a bearish global economic outlook, it is perhaps an opportunity for the statutory boards that manage such properties to work with other branches of the Government and government-funded entities to make that space available to start-ups at a reduced rent.
http://www.straitstimes.com/forum/letters-in-print/falling-rents-good-for-raising-start-ups?login=true

Ex-HDB chief says no to popular demands, ‘turkeys’ in urban planning
When it comes to policymaking, the Government needs to consciously make decisions not just by listening to the people, but to also source widely for opinions, Singapore’s former chief architect Liu Thai Ker said.
http://www.channelnewsasia.com/news/singapore/ex-hdb-chief-says-no-to/2431296.html

Global Economy & Global Real Estate

What happens if China’s economy has a hard landing?
The sudden, sharp drop in Chinese stock prices twice in 2015 and again this month does not necessarily herald a further slowdown of GDP growth. But investor confidence, the bedrock of a healthy economy, has been shaken both in China and throughout the world.
http://www.todayonline.com/chinaindia/china/what-happens-if-chinas-economy-has-hardlanding?singlepage=true

Beyond the Headlines: Five Things to Watch in China’s GDP Report
http://www.bloomberg.com/news/articles/2016-01-17/beyond-the-headlines-five-things-to-watch-inchina-s-gdp-report

London Property Deal Leaves ATP Fund Cautious on Currency Risks
http://www.bloomberg.com/news/articles/2016-01-17/london-property-deal-leaves-atp-fund-cautious-oncurrency-risks

HSBC Plans New Mideast Headquarters Near World’s Tallest Tower
http://www.bloomberg.com/news/articles/2016-01-17/hsbc-plans-new-mideast-headquarters-near-worlds-tallest-tower

Hitting Home: How Healthy Is Your Real Estate Market?
http://www.bloomberg.com/news/articles/2016-01-14/hitting-home-how-healthy-is-your-real-estatemarket

Britain’s falling home ownership rate blamed on buy-to-let small-time landlords
http://www.businesstimes.com.sg/real-estate/britains-falling-home-ownership-rate-blamed-on-buy-to-letsmall-time-landlords

Maryland governor targets blight in Baltimore with plan to raze vacant buildings
http://www.businesstimes.com.sg/real-estate/maryland-governor-targets-blight-in-baltimore-with-plan-toraze-vacant-buildings

Sainsbury mulls over offer for Argos owner Home Retail Group
http://www.businesstimes.com.sg/real-estate/sainsbury-mulls-over-offer-for-argos-owner-home-retailgroup

In Maine, local control is luxury fewer can afford
http://www.businesstimes.com.sg/real-estate/in-maine-local-control-is-luxury-fewer-can-afford