The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 19th March 2019

Singapore Real Estate

Casa Sophia relaunches for collective sale at lower asking price
Casa Sophia in District 9 on Monday relaunched for collective sale by private treaty with a lower asking price of S$30 million.  The project first launched with a reserve price of S$36 million or S$1,390 per square foot per plot ratio (psf ppr) in July 2018, shortly after the latest round of property cooling measures was announced.

Construction sector sees fewer debts paid on time in 4Q: survey
The construction sector in Singapore has seen a deterioration in debt servicing, with fewer debts paid on time while delinquent debts almost doubled in the fourth quarter of 2018.  Payment behaviour was largely stable across other sectors though DP Information Group cautioned in a statement on Monday that small and medium-sized enterprises (SMEs) will potentially face bigger challenges in 2019 as uncertainties in the business environment are expected to persist.

Stepping up workplace wellness efforts to boost staff productivity, morale
The drive worldwide to boost workplace wellness, which is gaining momentum, ensures a win-win situation for companies and employees.  In Singapore, steps have been taken to create healthier offices, such as a new Green Mark scheme by the Building and Construction Authority (BCA).  “Wellness in the workplace is fast becoming a priority for landlords and tenants across Asia-Pacific,” said a report by real estate services firm Colliers International released last week.

New rules to avoid cuts to Internet cables
Internet outages caused by cut underground cables are a target of new regulatory standards for contractors and telecoms players, weeks after the issue was raised in Parliament.  The Infocomm Media Development Authority (IMDA) unveiled a new framework on Monday meant to harmonise the appropriate procedures. The rules, which were jointly developed by the IMDA and network operators, will kick in on June 1.


Singapore Economy

Singapore exports rebound in Feb, but economists not cheering yet
Economists cautioned on Monday that Singapore’s exports are not out of the woods yet, even as shipments defied expectations to rebound in February after three straight months of decline.  Last month’s positive export figures was mostly due to a favourable base effect, and not a signal that the worst is over on the trade front, they said. 

Singapore GDP growth to slow to 2.4% in 2019: report
Singapore’s gross domestic product (GDP) growth in 2019 is expected to slow to 2.4 per cent “against a more challenging environment for exports and the manufacturing sector”, down from 3.2 per cent in 2018, said the Institute of Chartered Accountants in England and Wales (ICAEW) in a report on Monday.  This is in line with easing growth across South-east Asia, as exports slow amid increased trade protectionism and lower Chinese import demand, said ICAEW.

Singapore, Hong Kong and Paris named world’s most expensive cities for expats: EIU survey
Singapore: Singapore, Hong Kong and Paris have been named the world’s most expensive cities for expatriates to live in, according to a survey of 133 cities released on Tuesday (Mar 19) by the Economist Intelligence Unit (EIU).  This is the first time in the history of the survey that three cities share the title of the world’s most expensive city, according to EIU.


Companies’ Brief

CapitaLand and CDL poised to buy Liang Court mall at S$400m
The decades-old Liang Court mall – famous at its peak as a Japanese expat haunt and for the Daimaru department store and supermarket – is expected to be sold to new owners for S$400 million.  The Business Times understands that a put-and-call option agreement has been entered into between the owner, an entity linked to PGIM Real Estate, and CapitaLand and City Developments Ltd (CDL).

CapitaLand Commercial Trust said to be in talks to acquire $1.5b Duo office tower
Kuala Lumpur (Bloomberg) – CapitaLand Commercial Trust, Singapore’s biggest office landlord, is among suitors in talks about a potential acquisition of the Duo office and retail development in the city, people with knowledge of the matter said.  The real estate investment trust has been negotiating the purchase of a 39-story office building called Duo Tower, along with the connected Duo Galleria mall, according to the people. The property could be valued at more than $1.5 billion, one of the people said, asking not to be identified because the information is private.

CapitaLand’s new CEO awarded pay package of S$4.2m for 2018
CapitaLand chief executive and president Lee Chee Koon, who assumed the top post in mid-September 2018, was rewarded with a remuneration package of about S$4.21 million for the entire year. This also took into account his previous role as group chief investment officer (CIO) before he became the head honcho.  In its annual report filed with the Singapore Exchange on Monday, the listed property giant disclosed the remuneration packages of its top executives, who collectively earned more than S$17.7 million for 2018, down from S$20 million for 2017.

Lian Beng subsidiary secures S$117m contract
Property firm Lian Beng Group on Monday announced that its wholly-owned subsidiary Deenn Engineering Pte Ltd has secured a construction contract worth approximately S$117 million.  The contract for the construction of a building is to commence on March 19, with a contract period of 36 months, Lian Beng said in a filing to the Singapore Exchange.

Keppel, SPH to buy remaining M1 shares at $2.06 each from April
Konnectivity, a company owned jointly by Keppel Corp and Singapore Press Holdings (SPH), will buy all the remaining M1 shares it does not own at $2.06 each, from next month.  It owns 94.55 per cent of the telco after a voluntary unconditional general offer closed yesterday.  “Due to strong shareholder support, (Konnectivity) is entitled, and will exercise its rights, to compulsorily acquire all the shares of the shareholders who have not accepted the offer,” said a joint statement by Keppel Corp and SPH.

First Sponsor withdraws complex rights issue after regulatory feedback
First Sponsor Group has withdrawn its application for a rights issue involving warrants exercisable into convertible securities, after receiving regulatory feedback on the warrants’ suitability for distribution to retail investors, it said in a Singapore Exchange filing on Monday.  The warrants, which were proposed in a Feb 14 filing, would have been exercisable into convertible securities, which would in turn be convertible into conversion shares. This is different from “plain vanilla” warrants, which are typically exercisable directly into shares, First Sponsor said.


Views, Reviews, Forum & Others

When home prices rise, people goof off at work
A healthy property market generally reflects a strong, well-performing economy. But when markets become excessively bullish, there can be a number of negative economic consequences, leading to pressure on policy-makers to step in with cooling measures.  One effect that has not received much attention is the impact property price booms have on labour supply – in particular whether individuals put in less effort into their work and the repercussions this has for productivity.


Global Economy & Global Real Estate

US homebuilder sentiment steady as sales and outlook improve

Eldorado Resorts, Caesars said to be in early merger talks

China’s crowded co-working industry turns to services

Private equity firm eyes China malls after US$4.5b Hong Kong test run

Country Garden 2018 core profit up 38%

Australian Housing Slide Deepens as RBA Worries About Consumers


Additional Articles of Interests – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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