DAILY NEWS

Daily News – 18th July 2018

Top Story

Impact of latest curbs has Redas seminar abuzz
Property players are still coming to terms with the surprise cooling measures that took effect on July 6, with various views on their impact aired at Real Estate Developers’ Association of Singapore’s (Redas) property market update seminar for 2018. While Redas sees the heftier additional buyer’s stamp duty (ABSD) on developers as a “big setback” for the property market here, JLL sees moderate price growth ahead for property prices and demand being able to match supply in the years ahead so long as launches are paced “sensitively”.
https://www.businesstimes.com.sg/real-estate/impact-of-latest-curbs-has-redas-seminar-abuzz
https://www.businesstimes.com.sg/real-estate/cooling-measures-raised-homeownership-costs-cooled-property-demand-redas-president
https://www.straitstimes.com/business/property/heftier-stamp-duty-a-big-setback-for-property-sector-redas-chief
https://www.channelnewsasia.com/news/singapore/property-cooling-measures-could-worsen-high-supply-situation-10537184
https://www.todayonline.com/singapore/property-cooling-measures-scuppered-long-awaited-recovery-could-worsen-supply-glut-redas
https://www.todayonline.com/singapore/days-making-quick-buck-property-are-over-analyst

Singapore Economy

Growth at risk as trade conflicts, electronics slowdown take toll on Singapore exports
Singapore’s exports showed signs of faltering as it notched marginal gains in June, dragged down by electronics shipments which continued to contract for the seventh straight month. Economists warn that the trade conflict, slowing growth in China, and the latest round of property cooling measures are all likely to weigh on Singapore’s growth outlook in the months ahead.
https://www.businesstimes.com.sg/government-economy/growth-at-risk-as-trade-conflicts-electronics-slowdown-take-toll-on-singapore
https://www.straitstimes.com/business/economy/singapore-exports-notch-slower-growth
https://www.straitstimes.com/business/economy/spore-exports-hit-by-weak-global-demand-for-electronics
https://www.channelnewsasia.com/news/singapore/singapore-exports-june-rise-3rd-straight-month-10536766
https://www.todayonline.com/singapore/singapores-non-oil-exports-notch-modest-increase-june

Singapore’s lead over Malaysia’s economy is shrinking
Kuala Lumpur — Malaysia is inching closer to regaining its lead over Singapore’s economy after trailing for a third-straight year. The nation’s gross domestic product was US$314.5 billion (S$427.7 billion) in 2017, about US$9.4 billion less than Singapore’s US$323.9 billion, according to data from the World Bank.
https://www.todayonline.com/singapore/singapores-lead-over-malaysias-economy-shrinking

Singapore manufacturers show most improvement in bill payment: study
The manufacturing sector has shown the most improvement when it comes to payment behaviour in the last three years. The sector has slashed 14 days off the average time a company takes to pay a debt – from 42 days in Q2 2016 to 28 days in Q2 2018. In contrast, the average time taken for a retail company to pay up has increased by more than 157 per cent, from 14 days in Q2 2016 to 36 days in Q2 2018.
https://www.businesstimes.com.sg/companies-markets/singapore-manufacturers-show-most-improvement-in-bill-payment-study
https://www.straitstimes.com/business/economy/manufacturers-here-most-improved-in-paying-debt-study

Singapore Real Estate

Honouring the best in Singapore design
An insulated shelter for homeless families, a futuristic pavilion, and an elevated pedestrian walkway winding 19km through Fuzhou are among the projects that have bagged Singapore’s most prestigious accolade for design this year. The President’s Design Award, conferred by President Halimah Yacob at the Istana yesterday, is jointly handed out by the Urban Redevelopment Authority (URA) and DesignSingapore Council.
https://www.straitstimes.com/lifestyle/home-design/honouring-the-best-in-singapore-design

Companies’ Brief

Keppel-KBS US Reit’s Q2 DPU surpasses forecast
Keppel-KBS US Reit’s second-quarter distribution per unit (DPU) crept up to 1.5 US cents from its forecast of 1.49 US cents, it said on Tuesday. This was despite a drop in rental from a tenant at Westmoor Center in Denver, Colorado, which vacated the premises ahead of its lease expiry.
https://www.businesstimes.com.sg/companies-markets/keppel-kbs-us-reits-q2-dpu-surpasses-forecast

Keppel DC Reit DPU up 4.6%; KIT DPU stable in Q2
Keppel DC Reit has posted a second-quarter distribution per unit (DPU) of 1.82 Singapore cents, up 4.6 per cent from the same period a year earlier. The higher distributable income was due mainly to higher contributions from maincubes data centre in the Frankfurt region and the assets in Singapore and Dublin. However, this was partially offset by the absence of the one-off capital distribution in relation to Keppel DC Singapore 3 in Tampines, lower contribution from Basis Bay data centre in Malaysia, as well as higher finance costs and manager’s fees.
https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-dpu-up-46-kit-dpu-stable-in-q2

Keppel Infrastructure Trust Q2 DPU stable at 0.93 Singapore cent
Keppel Infrastructure Trust (KIT) has posted a second-quarter distribution per unit (DPU) of 0.93 Singapore cent, unchanged over the last six quarters. Loss attributable to unitholders was S$4 million, reversing from a profit of S$15.8 million in the same period last year. This was due mainly to lower fees earned at Basslink owing to the service outage that occurred from March 25 to June 5 as a result of an incident caused by a third-party contractor.
https://www.businesstimes.com.sg/companies-markets/keppel-infrastructure-trust-q2-dpu-stable-at-093-singapore-cent

CDL takes another green step forward
City Developments Limited (CDL), announced that it will have its carbon reduction targets assessed and validated by the Science Based Targets Initiative (SBTi), making it the first local real estate company to do so. This move is part of its accelerated climate change strategy amid the backdrop of Singapore’s impending 2019 carbon tax and the global transition to a low carbon economy.
https://www.businesstimes.com.sg/real-estate/cdl-takes-another-green-step-forward
https://www.straitstimes.com/business/companies-markets/cdl-getting-carbon-reduction-targets-assessed-validated

Metech seeks rental refund from Mapletree Industrial Trust
E-waste management company Metech International on Tuesday said that its solicitors have served a writ of summons on DBS Trustee, being the trustee of Mapletree Industrial Trust, for the recovery of rental at its premises at 65 Tech Park Crescent for the period Jan 26, 2015 to July 15, 2015. The claim on the rental sum amounts to about S$540,338.
https://www.businesstimes.com.sg/companies-markets/metech-seeks-rental-refund-from-mapletree-industrial-trust

First Reit Q2 net property income up 5%; DPU at 2.15 cents
Contributions from First Reit’s latest assets – Siloam Hospitals Buton & Lippo Plaza Buton and Siloam Hospitals Yogyakarta, acquired in 2017 – as well as from the existing properties lifted results for the healthcare real estate investment trust, in its second quarter. Distribution per unit (DPU) edged up to 2.15 Singapore cents from 2.14 Singapore cents in the year-ago period, the group said in a Singapore Exchange filing on Tuesday evening. That came as Q2 income available for distribution crept up 1.6 per cent to S$16.9 million from the preceding year.
https://www.businesstimes.com.sg/companies-markets/first-reit-q2-net-property-income-up-5-dpu-at-215-cents

Public offer for Koufu shares 17 times subscribed
The public offer for Koufu’s shares, which were priced at S$0.63 apiece, was 17 times subscribed in its initial public offering (IPO) that ended on Tuesday, the food court operator said. The offering, which is subject to an over-allotment option, comprised a placement tranche of 90.7 million shares, and a public offer of 6.3 million shares.
https://www.businesstimes.com.sg/companies-markets/public-offer-for-koufu-shares-17-times-subscribed
https://www.channelnewsasia.com/news/business/koufu-opens-above-ipo-price-on-sgx-trading-debut-10539274

VIEWS, REVIEWS, FORUM & Others

Is Chinatown losing its local flavour?
Amid an influx of eateries selling mala hotpot alongside shops touting kitschy souvenirs, some tourism and heritage experts here are questioning if Chinatown is losing its local flavour. At a forum at the URA Centre yesterday, where preliminary findings of a survey on Chinatown were presented, attendees discussed among other things, the challenge of balancing commercial interests with cultural ones in the precinct, as well as its evolving role.
https://www.straitstimes.com/singapore/is-chinatown-losing-its-local-flavour