The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 18th July 2017

Top Story

Developers sold 73% more homes in first half of 2017
Developers have sold 6,388 private homes in the first six months of this year – just 20 per cent shy of the 7,972 units they moved in the whole of last year.  The strong showing came about despite a 21.1 per cent month-on-month decline in the number of units sold in June amid the school holiday lull. Sales are expected to improve this month with the start of bookings later this week at GuocoLand’s Martin Modern, a 99-year leasehold condo project in District 9.

Singapore Economy

June NODX busts forecasts; good showing expected for next few months
Non-oil domestic exports (NODX) ended the first half of 2017 with a better-than-expected showing – and private-sector economists expect the fine performance to continue for a few more months in the second half before easing.  After two flat months, with the figure in May revised upwards from -1.2 to 0.4 per cent, trade promotion agency International Enterprise Singapore reported on Monday that the NODX surged 8.2 per cent year-on-year in June, beating the market’s 5.0 per cent forecast.

Singapore deal-making still growing strong, led by rise in M&As
Deal making in Singapore is continuing an upward track.  The trend was led in the first half of the year by the growth of mergers and acquisitions (M&As) – in terms of both volume and value of deals.  There was also a doubling in value of private equity (PE) and venture capital (VC) investments, even as the initial public offering (IPO) market recorded a sharp year-on-year drop in value.

S’pore banks need to maintain NSFR ratio of 100% over long term from 2018
Singapore’s three biggest banks will be required to prioritise long-term funding from next year to ensure they will be stable in extended periods of market stress.  The Monetary Authority of Singapore (MAS) issued Notice 652 on July 10, which will require DBS Bank, OCBC Bank and United Overseas Bank to maintain a net stable funding ratio of 100 per cent from January 1, 2018. The NSFR, a key reform announced by the Basel Committee on Banking Supervision in January 2014, measures a bank’s long-term resources over 12 months of liquidity requirements.

Fintech giant Lufax to launch online investment platform in Singapore
Lufax, the world’s second-largest fintech firm, is staking its claim beyond China, as the unit of Ping An Group plans to launch its first overseas online wealth management platform in Singapore targeting offshore mid-market retail investors.  Expected to launch by September this year, Lu International targets the burgeoning middle-class in Asia, in part by attracting them with competitive fee structures that will beat the typical 3-5 per cent upfront fees charged to retail investors today.

Singapore Real Estate

Move to raise safety standards at worksites
In a bid to raise safety standards at worksites, a new daily meeting to better coordinate between contractors, subcontractors and consultants will soon be required for all construction work, The Straits Times has learnt.  A Manpower Ministry spokesman confirmed that the soon-to-be-mandatory Project Safety Coordination Committee will allow better planning of hazardous works.

Companies’ Brief

Acquisitions boost Keppel DC Reit’s Q2 performance
Income contributions from the newly acquired Milan and Cardiff data centres and the 90 per cent interest in Keppel DC Singapore 3 (KDC SGP 3) in Tampines boosted Keppel DC Reit’s second-quarter performance.  It also helped that the Australian dollar appreciated against the Singapore dollar in the quarter, and the trust saw higher income from Keppel DC Singapore 1 (KDC SGP 1) in Serangoon.

New hospital boosts First Reit’s Q2 DPU
Boosted by a full quarter of contributions from a newly acquired hospital, First Reit reported distribution per unit (DPU) for its second quarter ended June 30, 2017, at 2.14 Singapore cents, up 1.4 per cent from 2.11 cents a year ago.  The real estate investment trust (Reit) owns a portfolio of mostly Indonesian hospitals. Last December, it acquired Siloam Hospitals Labuan Bajo, a 153-bed hospital in the tourist town of Labuan Bajo specialising in emergency medicine, internal medicine and neuroscience.

OKP’s share price tumbles after trading halt is lifted
Shares in construction firm OKP Holdings fell as trading resumed on Monday following an accident last week at its subsidiary’s worksite.  The counter fell about 14 per cent to a low of S$0.34 during trading before recovering slightly to close at S$0.37, down 2.5 cents or 6 per cent. Some 6.96 million shares worth around S$2.51 million changed hands.

KIT’s Q2 DPU same as last year despite 4.9% drop in profit
Keppel Infrastructure Trust (KIT) on Monday reported a distribution per unit (DPU) of 0.93 Singapore cent for the second quarter, unchanged from the year-ago period.  This is in spite of a 4.9 per cent drop in profit attributable to unitholders as the business trust is allowed to pay distributions out of retained cash and residual cash flows, unlike companies which can make dividend payments only out of accounting profits.

GLP to develop Adidas’ largest distribution centre in Asia
Just after it announced last Friday that it has accepted a Chinese consortium’s offer for a buyout, Global Logistic Properties (GLP) said on Tuesday that it has signed an agreement with Adidas to develop its largest distribution centre in Asia.  In a Singapore Exchange filing on Tuesday, GLP said that Adidas is doubling its space at the same park in Suzhou, Eastern China to meet strong demand from growing domestic consumption.

Lee Yi Shyan to be non-exec chairman of International Healthway Corp
Medical property developer International Healthway Corporation (IHC), which was recently taken over by developer OUE, has appointed former senior minister of state Lee Yi Shyan as its non-executive, non-independent chairman.  Mr Lee, a current East Coast GRC MP, will be joined by two new directors, OUE executive chairman Stephen Riady as non-executive director and IHC chief executive Wong Weng Hong as executive director.

Tiong Seng in JV to develop Jervois Road residential sites
Construction and engineering firm Tiong Seng Holdings said on Monday its subsidiary has entered into a joint venture (JV) with civil engineering firm Ocean Sky International to develop two freehold sites on Jervois Road, which have a combined area of 1,246.3 square metres with a residential-zoned gross plot ratio of 1.4.  The option to purchase the sites for S$21 million was exercised by TSky (Jervois) Pte Ltd, a newly incorporated company owned by newly incorporated Tiong Seng subsidiary, TSky Development Pte Ltd.

Views, Reviews & Forum

GLP deal: Long-term investing takes patience
Global Logistic Properties (GLP) had an attractive business proposition from the get-go: As a leading warehouse operator in China and Japan, it was set to ride on the growing demand for logistics space in Asia.  Its initial public offering (IPO), the second-largest in Singapore, attracted huge interest, with the retail tranche more than 10 times oversubscribed.

Estate planners must get on board football masterplan
When I was a young boy, there were small fields at the foot of HDB blocks. Every evening, all the neighbourhood boys would go there to play football (What it will take to make S’pore football great again; July 14).  Big or small, pre- or late-teens, and regardless of race, whoever wanted to play would just join in. We would play until it got too dark.  Now, there are no more such small fields in most HDB estates.

Global Economy & Global Real Estate

Malls getting mauled, but there’s money to be made

Student debt is hurting millennial homeownership

UK house prices stabilise, but buyers still wary

London economy suffering ‘wobble’ over Brexit worries, says think tank

First Property raises funds to gain from post-Brexit property weakness

London new home starts surge 42% as builders ignore Brexit woes

Abu Dhabi is said to form venture for apartment towers in London

China GDP beats expectations with Q2 growth at 6.9 per cent

China property investment growth eases in Q2 as cooling measures kick in

China’s Xi says to accelerate market opening, expand imports

Beijing to punish Wanda for breach of investment rules

In urban China, cash is increasingly becoming an obsolete commodity

Indonesia on track to have a busy year for IPOs

Australian malls turn to village life as retailers feel pinch

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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