Nanshan said to be party that triggered tender for Central Boulevard site
Market talk has it that it is Nanshan Group that has triggered the recent release of the Central Boulevard white site on the government reserve list. The Chinese group, which entered the Singapore property market just a few years ago, is now said to be looking for partners to form a consortium to bid for the 1.1-hectare site next to Asia Square Tower 1 when it is launched for public tender. Forming a consortium would enable the group to reduce risks and submit a more aggressive bid, boosting its chances of clinching the site, say observers.
Asia capital outflows into global real estate down in H1
There was net capital outflows of about US$17 billion from Asia into global real estate markets in the first half of this year, data from Real Capital Analytics (RCA) shows. In H1 2016, Asian capital outflows reached US$18.3 billion. And Brexit – the United Kingdom’s withdrawal from the European Union – is not likely to reverse the direction that capital is moving, at least in the real estate sector, the analytics firm said.
Fintech ‘crucial to Singapore’s status as Asian finance hub’
The explosion of financial technology, or fintech, will allow millions of unbanked Asians to have easy access to financial services – and Singapore has a role to play in spearheading this revolution. In fact, fintech will be a crucial differentiator for Singapore to remain a regional financial hub, said Mr S. Iswaran, the Minister for Trade and Industry (Industry). He told a conference on fintech and financial inclusion yesterday: “From alternative payment solutions to peer-to-peer lending, fintech has helped shape a more innovative and inclusive financial system.”
Singapore Real Estate
New bus stop concept launched in Jurong East
A new concept bus stop designed to “make waiting fun” has arrived in Singapore. Named Project Bus Stop, the concept was conceived by a group of architects from DP Architects as a corporate social responsibility initiative, and will demonstrate how ground-up energy and creativity can be harnessed for urban and social innovation. National Development Minister Lawrence Wong wrote on his blog about the project: “I’m very encouraged to see these young architects come forward with their ideas to make our public spaces more vibrant. We hope to have more Singaporeans play an active role in shaping the use of our public spaces.”
From ‘ulu’ town to ‘heartlands CBD’: What will it mean to live in Jurong?
The Government’s vision for Jurong’s transformation into a distinctive, mixed-use heartlands business hub is gathering pace, following the news that the area will be home to the terminus for the Singapore-Malaysia High Speed Rail (HSR). While many residents seem enthusiastic about the energy and vibrancy that is being added to what used to be a quiet, unfashionable part of Singapore, some are concerned about whether there will be a price to pay in terms of rising costs and congestion.
URA sets limit on carpark spaces at Marina Bay site
The Urban Redevelopment Authority (URA) has imposed a cap on the number of carpark spaces that can be built on a site – the first time it has made such a provision. The URA imposed the limit on the Marina Bay mixed-use site triggered for launch last week, citing its good public transport links as a reason for it needing fewer parking spaces. Future sale sites with comparable transport connections could face similar measures, the URA noted.
One in five condo owners sitting on paper losses
About 22 per cent of private condominium owners are currently in the red, meaning that they are suffering from paper losses on their homes, according to estimates based on SRX Property’s computer-generated X-Value. Singaporean homes were transacted within plus or minus 3.5 per cent of their X-Value on average last year and in the first half of this year. This makes the automated valuation algorithm a reliable indicator of a property’s market value. X-Value, available free at SRX.com.sg, helps homeowners understand when it might be possible to realise capital gains on their homes or if they would suffer losses if they sell their properties.
CK Building ordered to close entirely in interest of public safety: BCA
The owner of CK Building has been ordered to close the entire building in the interest of public safety, after Singapore Civil Defence Force (SCDF) personnel put out a massive fire there, said the Building and Construction Authority (BCA). In a statement released on Thursday evening (Aug 18), BCA said engineers gained access into the building at Tampines Street 92 after SCDF completed damping-down operations this morning. The fire had taken almost 16 hours to put out. The engineers’ findings showed that the fire had affected the structural integrity of the fourth to sixth storeys as well as the steel roof of the six-storey industrial building, said BCA.
No duplicate or fictitious payments made by AHTC: KPMG
Following its review of 207 payments using a “dummy” supplier code, auditor KPMG has determined that the Aljunied-Hougang Town Council (AHTC) did not make any duplicate or fictitious payments, it said in its latest monthly progress report on the Workers’ Party-run town council on Thursday (Aug 18). The payments, amounting to S$271,598.20, were “supported by documentation relating to purchase and receipt of the goods and/or services”, KPMG said.
CapitaLand Retail China Trust to buy shopping mall in Chengdu for 1.5b yuan
CapitaLand Retail China Trust (CRCT) is acquiring a shopping mall in Chengdu for 1.5 billion yuan (S$303 million). Galleria is located in the Xinnan Tiandi retail precinct of Gaoxin District in the south of Chengdu, a major shopping belt in the city. The mall has been valued at 1.52 billion yuan by Savills Valuation & Professional Services as at July 26. Including acquisition-related expenses, the total investment cost for the mall is expected to be about 1.527 billion yuan. CRCT plans to finance the purchase with a mix of existing cash and additional debt.
Soilbuild Reit raising up to S$59.4m for Bukit Batok Connection acquisition
Soilbuild Business Space Reit is raising up to S$59.4 million via a preferential offering to partly fund the acquisition of Bukit Batok Connection. The Reit is issuing up to 94.35 million new units at S$0.63 per unit through a pro-rata non-renounceable preferential offering to its existing unitholders. At S$0.63, this is a discount of 8.2 per cent to the volume-weighted average price of S$0.6865 per unit for trades done on Aug 18. The preferential offering is made on the basis of one new unit for every 10 existing units held by Soilbuild’s entitled unitholders. The Reit will raise net proceeds of up to approximately S$59.2 million.
OUE acquiring two land parcels at Nassim Road after successful tender
Property developer OUE Limited is acquiring two land parcels within Singapore’s most exclusive Good Class Bungalow enclave for S$56.6 million. In an announcement on Thursday evening, it said that it has successfully tendered for the two land parcels totalling 3,100 square metres at 28 Nassim Road, which are adjacent to Eden Hall, the residence of the British High Commissioner.
GLP, China’s CIMC to develop integrated logistics facilities and solutions
Logistics facilities provider Global Logistic Properties (GLP) will work with China International Marine Containers (CIMC) to develop integrated logistics facilities and solutions under a strategic cooperation framework agreement. GLP may also assist CIMC, a China-domiciled transportation equipment and services provider, in planning, redeveloping and managing their existing logistics facilities.
Parkson Retail Asia’s Q4 losses narrow to S$12m
Parkson Retail Asia Limited inked net losses of S$11.98 million for the fourth quarter ended June 30, after chalking up S$59.77 million of losses a year ago. The department store operator managed to narrow its losses in the fourth quarter on the back of a 10.9 per cent rise in revenue to S$93.86 million.
Lion Asiapac’s Q4 net loss improves by 94%
Lion Asiapac, which has dealings in lime manufacturing, steel trading, property development and investment holding, narrowed its fourth quarter net loss by 94 per cent. Net loss for the three months to June 30 was S$2.71 million, while revenue plunged 70 per cent to S$1.96 million compared with the same period a year earlier. Quarterly loss per share was 3.35 cents, up from a loss of 59.68 cents a year earlier, while net asset value per share was 83.08 cents as at June 30, down from 90.68 cents as at June 30 last year.
Views, Reviews & Forum
Boosting standards of condo management
The management of strata-titled residential properties is regulated under the Building Maintenance and Strata Management Act administered by the Ministry of National Development (“Tighten oversight of condominium management” by Mr Frankie Mao; Aug 9, “Require condo management to submit accounts to MND” by Mr Chan Kai Yan; Aug 10, “More regulation needed over managing agents” by Ms Wendy Chan Mei Yoke; Aug 11, and “Home owners should take more interest in how condos are run” by Mr Sum Kam Weng; Aug 11). Condominiums in Singapore are managed by a council of management whose members are elected into office by apartment owners (subsidiary proprietors) at annual general meetings. As council members are volunteers, the vast majority of councils opt to appoint managing agents to assist them with the day-to-day running of the estate and to ensure that operations comply with the laws.
Global Economy & Global Real Estate
China’s Greenland, Ping An, Agile to invest US$1b in US biotech site
Chinese property investment overseas more than doubles in H1: CBRE
More signs of China property market cool-off
US tenant blacklist seen putting homes out of reach for the poor
Developers offer townhouses to millennials hungry for ownership
Norway’s wealth fund cuts value of UK real estate after Brexit
Retail sales in Britain climb higher than expected after Brexit vote
Home prices in London, ‘Remain’ areas decline the most over Brexit
Yuan strengthens to two-month high as US rate concerns ease
Beijing’s response to financial crisis a threat to global economy
Fed officials split in July on rate hike urgency
Yen’s rise could spark conflict over currency market intervention
BOJ cornered as Japanese banks are running out of bonds to sell
Additional Articles of Interest – Local & Overseas Real Estate
Local & Overseas Real Estate – Full Article