DAILY NEWS

Daily News – 18th March 2016

Singapore Economy

SME sentiment at neutral after 6 years of optimism
Amid economic headwinds, sentiment among small and medium-sized enterprises (SMEs) has dipped to neutral after six straight years of optimism, an index compiled by the Singapore Business Federation (SBF) and DP Information Group has found. The overall index score among these businesses fell 1.1 to sit at 50.0, a score indicating that they do not expect to achieve growth in the next six months (Q2 and Q3 of this year).
http://www.businesstimes.com.sg/government-economy/sme-sentiment-at-neutral-after-6-years-of-optimism

Singapore Real Estate

Reprieve for property developers unlikely
It seems unlikely that the government will offer property developers any reprieve in this month’s Budget, industry watchers believe. The Ministry of National Development (MND) was very direct in its reply on Feb 29: “It is too early to relax the measures now. Doing so could result in a market rebound.”
http://www.businesstimes.com.sg/real-estate/singapore-budget-2016/reprieve-for-property-developers-unlikely

Co-working space seen as boon for office landlords and tenants
Co-working spaces, a concept which made its way here six years ago, can be a hedge for office landlords against a wave of new office completions. Rather than engage in an intense price war on rental incentives and subsidies, developers can take a dip in this “blue ocean” to gain a competitive advantage over their peers, Cushman & Wakefield says in a new report.
http://www.businesstimes.com.sg/real-estate/co-working-space-seen-as-boon-for-office-landlords-and-tenants

Seaview condo defects: Residents hit snag
Residents of The Seaview condominium, who sued four parties involved in the development over numerous alleged defects, have hit a snag in their fight for $32 million in damages. Three defendants – the developer, the architect and the main contractor – are largely off the hook for negligence claims following a landmark ruling on construction liability by the High Court.
http://www.straitstimes.com/singapore/courts-crime/seaview-condo-defects-residents-hit-snag

Companies’ Brief

Ascendas, Lum Chang join peers in issuing bonds
As the Federal Reserve holds off raising interest rates, Ascendas and Lum Chang joined their peers in the property and construction space in issuing bonds. Construction player Lum Chang issued a shorter-term bond of three years at 5.5 per cent per annum, to raise some S$50 million.
http://www.businesstimes.com.sg/companies-markets/ascendas-lum-chang-join-peers-in-issuing-bonds

Singapore Reits
We upgrade the S-Reits sector to “Overweight” from “Underweight” as we see value emerging. We think that this sector is extremely attractive, as it has the widest yield spreads among its peers. We like the retail subsector for its unbeatable resilience and expect rental reversions to persist this year. We also like the hospitality subsector as there is an increasing number of new conferences and events in 2016.
http://www.businesstimes.com.sg/companies-markets/brokers-take-244

Views, Reviews & Forum

High-end properties lose some gloss, but long-term appeal remains
Singapore’s high-end property market took a beating last year as the Additional Buyer’s Stamp Duty (ABSD) continued to hurt sentiment. The ABSD imposes an extra 15 per cent tax on home prices for foreigners and this drove affluent foreign buyers to seek alternatives in the region, primarily in Hong Kong and Australia.
http://www.todayonline.com/business/high-end-properties-lose-some-gloss-long-term-appeal-remains