DAILY NEWS

Daily News – 18th May 2018

Top Story

Chancery Court brings YTD tally to S$8.8b, topping 2017 figure
It is barely halfway through the year, but with the sale of ex-HUDC Chancery Court on May 17, the collective sales market has busted the total collective sale figure for the whole of 2017. The total collective sales transaction value so far this year for 27 residential sites and one industrial site is now at S$8.81 billion, higher than the S$8.7 billion seen for 30 residential and non-residential sites brokered in 2017. And the figure is set to surge further with several large sites still on the market.
https://www.businesstimes.com.sg/real-estate/chancery-court-brings-ytd-tally-to-s88b-topping-2017-figure
https://www.businesstimes.com.sg/real-estate/chancery-court-at-dunearn-road-sells-en-bloc-for-s40178m-6-higher-than-reserve-price
https://www.straitstimes.com/business/property/chancery-court-sells-en-bloc-for-40178m

Extending leases for older HDB flats ‘will have serious trade-offs’
Amid calls for automatic lease extensions for older public flats, Minister for National Development Lawrence Wong has said that the issue involves serious trade-offs and ramifications. One key matter is that despite the government’s best efforts at planning, “we are still severely constrained by space in Singapore”, he said in Parliament on Thursday.
https://www.businesstimes.com.sg/real-estate/extending-leases-for-older-hdb-flats-will-have-serious-trade-offs
https://www.straitstimes.com/singapore/housing/lease-extension-a-complex-issue-says-lawrence-wong
https://www.todayonline.com/singapore/government-looking-lease-issue-old-hdb-flats-which-involves-serious-trade-offs-lawrence
https://www.straitstimes.com/singapore/housing/lawrence-wong-there-is-still-value-in-older-hdb-flats
https://www.channelnewsasia.com/news/singapore/there-is-still-value-in-older-hdb-flats-minister-for-national-10243064

Singapore Economy

Pharma gives Singapore NODX a shot in the arm, but it’ll wear off, say economists
After shrinking for two straight months, Singapore’s exports recovered in April as volatile pharmaceutical shipments rebounded. But this surge is expected to be short-lived, economists say – in addition to slowing momentum in the electronics sector, trade tensions are weighing on the export outlook.
https://www.businesstimes.com.sg/government-economy/pharma-gives-singapore-nodx-a-shot-in-the-arm-but-itll-wear-off-say-economists
https://www.straitstimes.com/business/economy/exports-jump-in-april-after-shrinking-for-two-months
https://www.channelnewsasia.com/news/singapore/singapore-exports-trade-nodx-april-2018-10241560
https://www.todayonline.com/singapore/singapores-non-oil-exports-spikes-april

SMS Chee Hong Tat highlights three strategies to grow Singapore’s economy
Singapore: The 4G leadership will grow Singapore’s economy by being pro-business, pro-Singapore and pro-talent, Senior Minister of State for Trade and Industry Chee Hong Tat said on Thursday (May 17) in Parliament. Responding to the President’s address, he said that Singapore’s economy must grow so that its people can have good jobs and the opportunities to change the world.
https://www.channelnewsasia.com/news/singapore/sms-chee-hong-tat-highlights-three-strategies-to-grow-singapore-10242550

Singapore Real Estate

Cuscaden Road GLS site to be developed into luxury residence
A residential Government Land Sales (GLS) site at Cuscaden Road, which fetched a top bid of S$410 million, will be developed into a luxury residential project “enriched by a focus on arts and culture”. This was disclosed by Adrian Cheng, executive vice-chairman and general manager of New World Development, on Thursday. The 5,722.5 sq m site was awarded to a consortium comprising SC Global Developments, New World Development Company and Far East Corsortium International, through their indirect wholly-owned subsidiaries.
https://www.businesstimes.com.sg/real-estate/cuscaden-road-gls-site-to-be-developed-into-luxury-residence

Three BTO blocks to have mix of rental and owned units
To tackle growing inequality and stratification, the Government is “going one step further” by having rental and purchased flat units within the same block, National Development Minister Lawrence Wong said yesterday.
https://www.straitstimes.com/politics/three-bto-blocks-to-have-mix-of-rental-and-owned-units
https://www.channelnewsasia.com/news/singapore/housing-and-urban-plans-must-be-inclusive-and-resilient-lawrence-10243284

Tenders for sites on Cuscaden Road, Mattar Road and Silat Avenue go to highest bidders
The Urban Redevelopment Authority of Singapore (URA) on Thursday announced that the tenders for the sites at Cuscaden Road, Mattar Road and Silat Avenue have been gone to the highest bidders – or in the case of Silat Avenue, the sole bidder.
https://www.businesstimes.com.sg/real-estate/tenders-for-sites-on-cuscaden-road-mattar-road-and-silat-avenue-go-to-highest-bidders
https://www.straitstimes.com/business/property/tenders-for-three-sites-go-to-highest-bidders

SRX launches home loan platform
Real estate services provider SRX has launched a home loan platform that promises to help borrowers ease the task of filling up forms.
https://www.businesstimes.com.sg/real-estate/srx-launches-home-loan-platform
https://www.straitstimes.com/business/property/srx-launches-home-loan-platform-0

Debate on President’s Address: MPs raise infrastructure, housing-related issues
Singapore: Housing and infrastructure related issues were raised by MPs in Parliament on Thursday (May 17) – the fourth day of debates on the President’s Address. There were calls to ramp up infrastructure for the elderly and to help retired individuals who live in private homes.
https://www.channelnewsasia.com/news/singapore/debate-on-president-address-mps-infrastructure-housing-issues-10243862

S’pore to see ‘most extensive urban transformation’ as Govt aims to build better city
Singapore — Cities must evolve and adapt to survive in an ever changing world and there is “no such thing as status quo”, said National Development Minister Lawrence Wong during the Parliamentary debate on the President’s Address on Thursday (May 17).
https://www.todayonline.com/singapore/spore-see-most-extensive-urban-transformation-govt-aims-build-better-city

Companies’ Brief

ESR-Reit, VIT halt trading amid talk of possible merger announcement
ESR-Reit and Viva Industrial Trust (VIT) halted trading before market open on Friday, amid expectations of a merger announcement.
https://www.businesstimes.com.sg/companies-markets/esr-reit-vit-halt-trading-amid-talk-of-possible-merger-announcement
https://www.straitstimes.com/business/companies-markets/esr-reit-vit-halt-trading-amid-talk-of-possible-merger-announcement

CCT sells S$217.9m of units at S$1.676 to cover rich end of price talk
Capitaland Commercial Trust (CCT) has priced an upsized S$217.9 million overnight placement of units at S$1.676 apiece to cover the rich end of initial indications. Price talk was at a range of S$1.631 and S$1.676 per unit for the deal, which launched on Thursday.
https://www.businesstimes.com.sg/companies-markets/cct-sells-s2179m-of-units-at-s1676-to-cover-rich-end-of-price-talk
https://www.straitstimes.com/business/companies-markets/cct-sells-2179m-of-units-at-1676-at-top-end-of-price-talk

CCT to buy majority stake in Frankfurt property for 343m euros
After announcing its maiden property acquisition outside Asia – a Grade A office property in Frankfurt’s CBD – CapitaLand Commercial Trust (CCT) said it would continue to be predominantly Singapore-focused.
https://www.businesstimes.com.sg/companies-markets/cct-to-buy-majority-stake-in-frankfurt-property-for-343m-euros
https://www.straitstimes.com/business/companies-markets/cct-to-pay-544m-for-major-stake-in-frankfurt-property

CDL, Distrii join hands in smart building apps
Real estate developer City Developments (CDL) is making further inroads into proptech, as CDL inked a tech joint venture with Chinese co-working operator Distrii. This was announced at the soft opening of Distrii’s co-working space at CDL’s Republic Plaza, a prime Grade A office building connected to Raffles Place MRT Station, on Thursday.
https://www.businesstimes.com.sg/real-estate/cdl-distrii-join-hands-in-smart-building-apps
https://www.straitstimes.com/business/chinas-co-working-space-operator-cdl-ink-tech-joint-venture

Aurum Land buys all units in Balmoral Gardens for almost S$83m
Aurum Land, the boutique development arm of Woh Hup group, is understood to have done a bulk purchase of all eight units that make up Balmoral Gardens for nearly S$83 million. The property is next to 11 Balmoral Road which Aurum acquired last year. Market watchers expect the group to amalgamate the two prime district 10 freehold sites; Aurum could potentially build a 12-storey condo with about 100 units averaging 1,000 sq ft on the combined site of about 67,000 sq ft.
https://www.businesstimes.com.sg/real-estate/aurum-land-buys-all-units-in-balmoral-gardens-for-almost-s83m

Metro Holdings buys 35% of JV that’s acquiring Shanghai mixed-use building
Metro Holdings Limited has acquired a 35 per cent stake in a joint venture that is investing into Shanghai Plaza, a mixed-use building in Shanghai worth 2.9 billion yuan (S$613 million).
https://www.businesstimes.com.sg/real-estate/metro-holdings-buys-35-of-jv-thats-acquiring-shanghai-mixed-use-building

Views, Reviews, Forum & Others

Economists flag headwinds ahead for ‘Goldilocks’ economy
The global economy has been enjoying a “Goldilocks” combination of robust growth and low inflation – but this “not too hot, not too cold” situation might not last for much longer. Economists at a roundtable flagged key risks on the horizon, including rising oil prices due to geopolitical uncertainties, as well as faster-than-expected interest rate hikes which could destabilise financial markets in the region.
https://www.businesstimes.com.sg/government-economy/economists-flag-headwinds-ahead-for-goldilocks-economy

South-east Asia is getting ‘smart’ with urbanisation
The southern Malaysian region of Iskandar, which includes Johor Baru, is a classic example of the opportunities – and challenges – that come with the rapid urbanisation that is taking South-east Asian economies by storm.
https://www.straitstimes.com/opinion/south-east-asia-is-getting-smart-with-urbanisation

When en bloc fever distorts ‘lease decay’ principle of leasehold property
A recovery in private home prices after four years of decline is not necessarily a bad thing. But the pace of this ascent could pose challenges to policymakers. This is complicated by an unexpectedly strong collective sale fever, amid which private home owners – even those who own 99-year leasehold properties – are enjoying huge windfalls.
https://www.businesstimes.com.sg/opinion/when-en-bloc-fever-distorts-lease-decay-principle-of-leasehold-property

HDB to take contractor to task
We refer to the letter by Mr Tan Thian Huat (Town council left to clean up after irresponsible contractor; May 8). Flat owners who wish to carry out renovation works must ensure that their appointed contractor has obtained a renovation permit from HDB before the works begin.
https://www.straitstimes.com/forum/letters-in-print/hdb-to-take-contractor-to-task

Poor social mixing with separate public, private estates
Education Minister Ong Ye Kung mentioned that “there has been a perceptible reduction in social mixing in recent years” (Ong Ye Kung flags stratification ‘poison’; May 16). One contributor to this, I believe, is the practice of demolishing HDB blocks and replacing them with condominiums.
https://www.straitstimes.com/forum/letters-in-print/poor-social-mixing-with-separate-public-private-estates