The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 16th, 17th and 18th December 2017

Top Story

The story of Jurong Lake District: From the boondocks to boom town – and beyond
A decade ago, the idea that the industrial – some might even say boring – town of Jurong would one day be transformed into a vibrant business district with pockets of tranquillity was often met with incredulity by developers and residents alike.  Yet today, long-time Jurong East resident Aimee Saw, 62, can point to an accelerated momentum in the Government’s efforts to not just revitalise the area, but also to turn it into Jurong Lake District (JLD), the nation’s second Central Business District.

Singapore Economy

New rule to curb credit for borrowers with outstanding debt
More help is on the way for borrowers who are in danger of falling deep into unsecured debts. Come Jan 1, the new Credit Limit Management Measure will enable financial institutions (FIs) to cap the additional unsecured credit for borrowers whose outstanding unsecured debts exceed six times their monthly income.

Dealmaking in region at a high this year
Dealmaking in Singapore, Malaysia and Indonesia saw a high from December last year to this November compared with two years ago, with Singapore accounting for the bulk of deal volumes.  An annual round-up of mergers and acquisitions (M&A), private equity and venture capital (PE/VC) and initial public offering (IPO) deals by global valuation and corporate finance adviser Duff & Phelps found that the overall transaction value in the three countries saw a high of more than US$130 billion (S$175.3 billion), exceeding the last high of US$115 billion in 2015.

Nine in 10 S’pore SMEs successful in securing debt financing: Poll
Only a few of the country’s smaller firms that sought financing over the past year were knocked back by financial institutions, a new survey showed.  It found that 13 per cent of small and medium-sized enterprises (SMEs) sought external funding over the past 12 months, with 90 per cent of them successful.

Sustained economic growth seen in 2018 with further upside potential in equities
After a year of strong investment returns on risk assets, 2018 is likely to see sustained economic growth and robust – albeit more limited – returns. Economic growth is expected to remain strong in the months ahead, supported by advanced and emerging markets. This continued strength implies a low risk of a global recession.  Global gross domestic product (GDP) growth should accelerate slightly to a pace of 3.8 per cent, driven mainly by the United States, the eurozone, China and India. Global inflation is forecast to reach a benign 2.7 per cent. Tax cuts and some fiscal easing in the United States and Germany, in particular, should also fuel growth. Global trade is likely to accelerate, outweighing protectionist tendencies.

Singapore Real Estate

Sales of new homes moderate as yr-end holidays begin
The festive Ong Teck Hui, national director of research and consultancy at JLL, said: “With the onset of the year-end holiday period and the market moving in favour of sellers, there is no hurry for developers to continue launching more units from their projects. Of the 450 private homes launched in November, only 47 units were new releases from previously launched projects, a 76.7 per cent plunge from the previous month and the lowest monthly figure in the year. This has reduced buying options, contributing to moderate sales figures.”

National Aerated Water building in Serangoon to be conserved
The main building of a former bottling factory, the National Aerated Water Co, will be partially conserved by the Urban Redevelopment Authority (URA).  The main building comprises a two-storey L-shaped structure facing Serangoon Road. Other features that will be retained include its signage tower, a balcony with brick parapets, Art Deco timber transom panels and a concrete sun shading ledge that spirals out of a circular window.

New complex to come up at site of market razed by fire
A new complex that includes shops and an active ageing hub will rise from the ashes of a wet market and coffee shop in Jurong West razed by a fire in October last year.  The design of the government-funded building was unveiled yesterday, and it will cost an estimated $6.2 million.

Scramble crossing at Orchard Road gets green light from pedestrians
The scramble crossing trial in Orchard Road was well received by pedestrians on its first day yesterday, as many enjoyed the convenience and time saved.  Yesterday was the first time shoppers could cross the Cairnhill Road-Orchard Road intersection diagonally – it was the first such experiment in more than a decade.

Companies’ Brief

Ascott adds Africa to portfolio following S America addition in April
The serviced residence unit of CapitaLand has secured contracts to manage two properties in Accra, the capital of Ghana, in what has been a record year of growth as the company added 18 new cities across nine countries and added over 21,000 units to its portfolio. Following the latest acquisition, it now has 69,464 units.

Keppel-KBS US Reit rides positive office market dynamics
David Snyder is an adventurous foodie whose willingness to savour new and different cuisines reflects his characteristics beyond the dining table.  The chief executive officer of the manager of SGX-listed Keppel-KBS US Reit has an adaptable, inclusive leadership style that helps him maximise outcomes in the face of complexity and change.

UEL’s cash offer for WBL a ‘cautious, risk-management approach’
By using United Engineers (UE) to make a cash offer for WBL, the Yanlord Perennial consortium which took control of UE and bought a small stake in WBL in July appears to be taking a more cautious approach to its recent investment.  Smartkarma insight provider Foo Sze Ming wrote in a note on Friday: “This transaction is not exactly the outcome that we have previously envisaged. It appears that Yanlord Perennial Investment (YPI) has chosen to take a more cautious, risk-management approach towards its UEL investment.”

Hatten Land unit mops up remaining stakes of firms that own sites in Malacca
Malaysian property developer Hatten Land Limited’s wholly owned subsidiary is planning to acquire the remaining minority interests in two development sites in Malacca for about RM28.9 million (S$9.6 million).  The Catalist-listed firm said in a late Singapore Exchange filing on Dec 15 that subsidiary Sky Win Management Consultancy Pte Ltd had entered into two sale and purchase agreements with Tan Ping Huang Edwin, Hatten’s executive director and deputy managing director, and the holder of the minority interests in Rico Development Sdn Bhd (RDSB) and Rico Ventures Sdn Bhd (RVSB), on Dec 15.

TMC Education surges after Fragrance CEO launches takeover bid
Shares of TMC Education Corporation Ltd surged as much as 120 per cent on Friday on news of a takeover bid by the chief executive of real estate developer Fragrance Group.  TMC Education, which resumed trading on Friday after requesting for a trading halt on Thursday pending the release of an announcement, kicked off at S$0.068 on Friday.

Views, Reviews & Forum

Year ahead promises a buoyant global economy, uncertainty and confusion
2018 looks set to deliver the highest economic growth in 10 years, a sign that the global financial crisis might finally be behind us. This is of course good news for international business. But the surge in business confidence is tempered by a sense that despite bullish economic data, the year ahead seems beset by uncertainty and confusion.

Short-term rental rules in Singapore
It is illegal to rent out or sublet one’s Housing Board (HDB) flat for under six months. Those who flout the rules can be fined or have their flats acquired by HDB.  For private homes, the bar was lowered to three months on June 30. Private home owners who break the rules can be fined up to $200,000. Repeat offenders face jail time of up to a year, on top of the fine.

Property’s ‘up cycle’ unlikely to last
An “up cycle” for Singapore property may last into 2020, Morgan Stanley is reported to have said (Home prices could rise by 8% next year; Dec 11).  The report also states that home prices will climb by as much as 8 per cent next year.  Based on fundamentals, home prices are unlikely to increase next year, and it is doubtful that an up cycle will last into 2020.

Global Economy & Global Real Estate

Fed rate hike: no surprise can be a good thing

A look at corporate winners and losers in final US tax bill

US tax bill upends long-time perks of owning a home

‘Congratulations’: EU launches next phase of Brexit

Sunac China plans HK$7.82b share sale for working capital

Malaysia’s Eco World acquires 70% in UK sites

Japanese business confidence improves for 5th straight quarter

Falling prices and new mortgage rules boost Canadian home sales

That US$300m chateau? One more jewel for a Saudi reformer

Airbnb opens door to discord in Europe

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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