DAILY NEWS

Daily News – 19th Mar 2020 (Thu)

Singapore Real Estate

15% of OLÁ units to be priced under S$1m
Developer Anchorvale has released its pricing for executive condominium (EC) OLÁ, with about 15 per cent of the 548 units to be priced under S$1 million. Two bedroom units (775 square feet) are going at S$1,100 per square foot (psf) while the three bedroom units (926-1,055 sq ft) are priced at S$999 psf.
https://www.businesstimes.com.sg/real-estate/15-of-ol%C3%A1-units-to-be-priced-under-s1m

Cautious land bids the litmus test of developers’ reading of residential property market
Despite the Covid-19 outbreak, a wave of positive vibes was generated in the residential property market last month from the relatively impressive take-ups at several project launches – The M along Middle Road, Luxus Hills (Contemporary Collection) landed homes in the Seletar Hills area, and Parc Canberra.
https://www.businesstimes.com.sg/companies-markets/cautious-land-bids-the-litmus-test-of-developers-reading-of-residential-property

Malaysia’s lockdown stalls prefab projects in S’pore
The coronavirus outbreak is wreaking havoc on Singapore’s building projects that use prefab methods. First, the construction of Avenue South Residence was stuck at the fifth storey when the outbreak last month disrupted deliveries of building supplies from China to its main contractor, United Tec Construction.
https://www.straitstimes.com/business/malaysias-lockdown-stalls-prefab-projects-in-spore

Student accommodation prized for defensive play in uncertain economy
Investment in purpose-built student accommodation (PBSA) has been growing; and notwithstanding the challenging market conditions, it is still considered an attractive defensive asset class, according to analysts and industry players.
https://www.businesstimes.com.sg/companies-markets/student-accommodation-prized-for-defensive-play-in-uncertain-economy

Singapore Economy

Covid-19 will weaken governments’ fiscal positions, weigh on ratings: Fitch
There will likely be a higher-than-average number of sovereign rating actions this year, due to the coronavirus outbreak’s economic impact combined with the policy responses, according to Fitch Ratings. The credit ratings agency also expects a downward bias in sovereign rating changes that is the most pronounced since the aftermath of the 2009 global financial crisis.
https://www.businesstimes.com.sg/government-economy/covid-19-will-weaken-governments-fiscal-positions-weigh-on-ratings-fitch

Companies’ Brief

CDL’s New Zealand unit forecasts NZ$24m hotel revenue loss for H1
City Developments Ltd (CDL) subsidiary Millennium & Copthorne Hotels New Zealand has forecast around NZ$24 million (S$20.4 million) in hotel revenue loss for the first half of 2020. This comes as the New Zealand government rolls out new border entry restrictions due to the novel coronavirus outbreak,
https://www.businesstimes.com.sg/real-estate/cdls-new-zealand-unit-forecasts-nz24m-hotel-revenue-loss-for-h1

Covid-19: Keppel to give utility rebates, pay SME suppliers more quickly
Keppel Corporation will provide about S$3.5 million in utility rebates to Singapore residents living in one and two-room HDB flats, and pay all its small and medium enterprise (SME) suppliers within one week of invoices being approved, the conglomerate said on Thursday.
https://www.businesstimes.com.sg/companies-markets/covid-19-keppel-to-give-utility-rebates-pay-sme-suppliers-more-quickly
https://www.straitstimes.com/business/companies-markets/coronavirus-keppel-rolls-out-42m-package-for-lower-income-households

Manulife US Reit inks two tenancy deals in New Jersey
Manulife US Real Estate Investment Trust (Manulife US Reit) has secured a US real estate enterprise as a long-term tenant at its Plaza office building in Secaucus, New Jersey. On March 13, the new tenant signed the lease for roughly 53,000 square feet (sq ft) for its headquarters, with a 12-year tenure and positive rental reversion, the Reit manager said on Wednesday.
https://www.businesstimes.com.sg/companies-markets/manulife-us-reit-inks-two-tenancy-deals-in-new-jersey

Tee Land’s offeror plans to restore free float
The proportion of shares of mainboard-listed Tee Land in the hands of the public has fallen below a key threshold following a cash offer. This means the Singapore Exchange may suspend trading of the developer’s shares at the close of the offer on March 20.
https://www.businesstimes.com.sg/companies-markets/tee-lands-offeror-plans-to-restore-free-float-0

UOB’s worst-case credit costs projected to 90-100 bps amid virus fallout, says Citi report
UOB has projected for credit costs to reach 90 to 100 basis points (bps) as its worst-case scenario, as the lender braces for further downside amid the virus fallout. The bank’s latest credit cost guidance is up from its original estimate of 25 to 30 bps in February, said Citi analyst Robert Kong in a note late on Wednesday night.
https://www.businesstimes.com.sg/companies-markets/uobs-worst-case-credit-costs-projected-to-90-100-bps-amid-virus-fallout-says-citi

Views, Reviews, Forum & Others

Covid-19 crisis may leave deep scars on property investors
Asking for a rent cut when cash flow is tight can be an awkward conversation. Not so in Europe, where retailers are increasingly asking landlords for reductions so they can cope with the fallout from the novel coronavirus. Weaker chains have formed for such demands, but behind the scenes, healthier businesses are also asking for lower, more flexible rents.
https://www.businesstimes.com.sg/real-estate/covid-19-crisis-may-leave-deep-scars-on-property-investors

States must think big, and act fast, in this economic emergency
The pandemic was not unexpected. But reality always differs from expectations. This is not just a threat to health. It may also be a bigger economic threat than the financial crisis of 2008-2009. Dealing with it will require strong and intelligent leadership. Central banks have made a good start. The onus now falls on governments.
https://www.straitstimes.com/opinion/states-must-think-big-and-act-fast-in-this-economic-emergency

Mice sector hurting from scrapped events, seeks forms of relief
As the Covid-19 pandemic brings about social distancing and unprecedented travel restrictions, Singapore’s event organisers have been rushing to keep up with fast-changing rules. The National Association of Travel Agents Singapore (Natas) Travel 2020 became the latest high-profile casualty of the downturn on Wednesday when its May event was called off.
https://www.businesstimes.com.sg/government-economy/mice-sector-hurting-from-scrapped-events-seeks-forms-of-relief

Update on COVID-19 (Coronavirus Disease 2019) situation

Singapore sets 14-day stay-home rule for inbound travellers to curb virus spread
Singapore authorities are imposing a 14-day stay home notice on all travellers while advising Singaporeans to defer all travel abroad, as it steps up measures to reduce the risk of community transmissions from imported novel coronavirus cases.
https://www.businesstimes.com.sg/government-economy/singapore-sets-14-day-stay-home-rule-for-inbound-travellers-to-curb-virus-spread
https://www.straitstimes.com/singapore/spore-residents-told-to-defer-all-overseas-travel

Coronavirus: Singapore measures meant to ensure healthcare system copes at peak
Many of Singapore’s measures are aimed at ensuring that when coronavirus cases hit their peak, it is at a lower level, is deferred for as long as possible and the system still has capacity to spare, Health Minister Gan Kim Yong said yesterday.
https://www.straitstimes.com/singapore/spore-measures-meant-to-ensure-healthcare-system-copes-at-peak

Coronavirus: Without tough steps, Singapore might have 5,000 cases by now
If Singapore had not initiated measures such as contact tracing and quarantines, more than 5,000 people here would have been infected with Covid-19 by now, instead of 313 as of yesterday. The outbreak would have hit its peak by July, after which the number of infections here would start going down…
https://www.straitstimes.com/singapore/without-tough-steps-spore-might-have-5000-cases-by-now

Shutdown for at least 10 SGX-listed firms with significant operations in Malaysia
As Malaysia’s 14-day movement control order kicked in on Wednesday, at least 10 Singapore-listed firms have temporarily shut operations in Malaysia from March 18 to March 30 to comply with the government’s attempt to contain the novel coronavirus outbreak.
https://www.businesstimes.com.sg/companies-markets/shutdown-for-at-least-10-sgx-listed-firms-with-significant-operations-in-malaysia
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation