DAILY NEWS

Daily News – 19 Nov 2020 (Thu)

Singapore Real Estate

Bukit Pasoh shophouse up for sale with S$10.5m guide price
Singapore’s shophouse blitz is showing no signs of abating, with another one at 6 Bukit Pasoh Road up for sale at a guide price of S$10.5 million. The indicative price translates to about S$3,750 per square foot on the total floor area, sole marketing agent PropNex Realty said on Wednesday.
https://www.businesstimes.com.sg/real-estate/bukit-pasoh-shophouse-up-for-sale-with-s105m-guide-price

Bigger BTO flats in Bishan, Toa Payoh see strong demand
Bigger Build-To-Order (BTO) flats in Bishan and Toa Payoh (Bidadari) have been oversubscribed just one day after their launch, even as buyers faced issues submitting applications on the Housing Board website. The HDB website was hit by glitches for more than 24 hours after it launched some 5,700 BTO flats and 5,220 Sale of Balance Flats (SBF) at 10am on Tuesday.
https://www.straitstimes.com/singapore/housing/bigger-bto-flats-in-bishan-toa-payoh-see-strong-demand

Millennium & Copthorne Hotels improving processes, cost structure and marketing
Singapore – Global hotel company Millennium & Copthorne Hotels (M&C) has improved its processes, cost structure and digital marketing in anticipation of improved business sentiment and confidence to travel.
https://www.straitstimes.com/business/property/millennium-copthorne-hotels-limited-improving-processes-cost-structure-and

Singapore housing market a safe haven amid pandemic
Home sales in Singapore so far in this pandemic-ravaged year have exceeded expectations amid a lower-for-longer rates environment and a still-low unemployment rate – a phenomenon also playing out in some other countries.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/singapore-housing-market-a-safe-haven-amid-pandemic

Luxury apartments in hot demand despite economic woes
Wealthy investors are out in force this year although the global economy is teetering on the brink of a deep recession. Well-heeled buyers have been on the prowl for value assets to grow their wealth, having snapped up luxury homes all over the world and sealing multi-million dollar deals in property hotspots such as Singapore, New York, Sydney, Shanghai and Seoul in recent months.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/luxury-apartments-in-hot-demand-despite-economic-woes

Mass-market private homes maintain appeal amid pandemic
Despite the pandemic-led economic downturn, the Singapore private residential sector – particularly the mass market and even the mid-tier segment – has displayed strong resilience, thanks to robust local end-user demand and Housing Development Board (HDB) upgraders.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/mass-market-private-homes-maintain-appeal-amid-pandemic

Demand for city-fringe homes on the rise
The city fringe private residential market, commonly known as the rest of central region (RCR) is a diverse market comprising different planning areas. The sub-central market includes Geylang, Kallang and Marine Parade in the East, Bukit Merah and Outram in the South, Queenstown and Bukit Timah in the West and Bishan and Toa Payoh in the North.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/demand-for-city-fringe-homes-on-the-rise

Regional centres take centre stage
The Singapore government first mooted the idea of decentralisation with smaller employment centres outside the Central Area in its first concept plan in 1971. This took further shape with the 1991 Concept Plan, where a constellation of fringe, sub-regional and regional centres extending out from the central region was envisioned.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/regional-centres-take-centre-stage

Pent-up demand to boost property investment sales for 2021
Singapore property sales dipped in 2020, but still outperformed that of the global financial crisis (GFC). Investors injected some S$12.2 billion into Singapore’s property investment sales market in the first nine months of 2020. This is 55.2 per cent below the S$27.3 billion accumulated in the first nine months of 2019.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/pent-up-demand-to-boost-property-investment-sales-for-2021

Office Reits still viable investments despite challenges in office market
Covid-19 has affected office markets all over the world due to its economic impact and the widespread advent of mass telecommuting. With office space under-utilised as work-from-home remains the default, firms are conducting workplace strategy studies to determine their future office needs.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/office-reits-still-viable-investments-despite-challenges-in

When it comes to asset allocation, how much property is too much?
Property ownership is, much like food, a bit of a Singapore national obsession. But just as overindulgence with food can be unhealthy, is it sustainable for our long-term financial health if we spend our weekends visiting showflats? In terms of asset allocation and, even more critically, how big of a role should real estate play in providing a stable income stream for retirement? We ask the experts.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/when-it-comes-to-asset-allocation-how-much-property-is-too-much

Looking back on 25 years of collective sales in Singapore
Collective sales, or what is more commonly known as en bloc sales, refers to the purchase of all units within a development by a single buyer or a consortium/joint venture. This occurs upon the collective agreement of owners to sell their units, in order to acquire a land parcel that is privately held by multiple owners.
https://www.businesstimes.com.sg/hub-projects/property-2020-nov-issue/looking-back-on-25-years-of-collective-sales-in-singapore

Singapore Economy

RCEP trade deal an important step forward for the region
It is too early to expect the incoming Biden administration to seriously relook American policies in Asia. Domestic concerns will be paramount – the pandemic and economic recovery. Yet, with less than full attention on developments in Asia, there is a danger that misperceptions could arise.
https://www.straitstimes.com/opinion/rcep-trade-deal-an-important-step-forward-for-the-region-0

Leaders of 21 Apec economies to discuss trade at meeting
Leaders from 21 Asia-Pacific economies, including Singapore Prime Minister Lee Hsien Loong, will meet virtually tomorrow to discuss ways to keep trade and investments flowing amid the Covid-19 pandemic. Chaired by Malaysian Prime Minister Muhyiddin Yassin, the 27th Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Meeting comes after last year’s chair, Chile, cancelled it amid widespread protests and riots in the country.
https://www.straitstimes.com/singapore/politics/leaders-of-21-apec-economies-to-discuss-trade-at-meeting

Bosses can foster positive discussion on mental wellness at the workplace: WSH chair
Singapore – Bosses should take the lead in talking about mental health in the workplace, as they can create greater awareness and shape discussions in a positive manner, said Workplace Safety and Health Council (WSH) chairman John Ng.
https://www.straitstimes.com/singapore/jobs/bosses-can-foster-positive-discussion-on-mental-wellness-at-the-workplace-wsh-chair
https://www.straitstimes.com/singapore/jobs/call-for-bosses-to-foster-positive-conversations-on-mental-health

Companies’ Brief

CRCT prices preferential offering at S$1.17 and private placement at S$1.195 per unit
CapitaLand Retail China Trust’s (CRCT) preferential offering to unitholders has been priced at S$1.17 each, the bottom end of the indicative range. That’s at an 8.6 per cent discount to Monday’s closing price of S$1.28, and a discount of about 9.2 per cent to the volume-weighted average price (VWAP) of S$1.2891 for all trades done on Monday.
https://www.businesstimes.com.sg/companies-markets/crct-prices-preferential-offering-at-s117-and-private-placement-at-s1195-per-unit

Green finance picks up among developers as CapitaLand, Tong Eng sign loans
Green loans have been gaining popularity among Singapore property developers as more look towards green financing to support sustainability-related properties. CapitaLand on Wednesday said it obtained its first three green loans in India totalling 17 billion rupees (S$323 million) from DBS Bank India and HSBC India.
https://www.businesstimes.com.sg/real-estate/green-finance-picks-up-among-developers-as-capitaland-tong-eng-sign-loans
https://www.straitstimes.com/business/companies-markets/capitaland-and-tong-eng-secure-green-loans

CDL’s near-term performance depends on Kweks resolving differences amicably
It has been almost a month since City Developments (CDL) stunned corporate circles with the announcement that its long-standing director Kwek Leng Peck had resigned. Mr Kwek has, among other things, been against CDL’s investment in Sincere Property Group, a privately-held Chinese property group. He does not see eye-to-eye with his cousin, CDL’s executive chairman Kwek Leng Beng, on CDL’s strategy of continuing to provide financial support to Sincere – perhaps seeing this as throwing good money after bad.
https://www.businesstimes.com.sg/companies-markets/cdls-near-term-performance-depends-on-kweks-resolving-differences-amicably

CDL hotel arm mulls asset disposal
City Developments Limited’s (CDL) hotel arm Millennium & Copthorne Hotels (M&C) is reviewing its portfolio and may dispose of some assets in a drive to recover from the effects of the Covid-19 pandemic by as early as 2021, it said on Wednesday night. “Having received expressions of interest for various assets globally, M&C is assessing at least three offers,” it said. Some offers are subject to re-zoning and regulatory approval for a change of use from hospitality.
https://www.businesstimes.com.sg/companies-markets/cdl-hotel-arm-mulls-asset-disposal

Quarz, Black Crane plan EGM requisition to approve internalisation of Sabana Reit manager
Quarz Capital and Black Crane Capital, in a joint statement released on Wednesday and seen by The Business Times, said they intend to requisition an extraordinary general meeting (EGM) for the internalisation of the manager of Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit).
https://www.businesstimes.com.sg/companies-markets/quarz-black-crane-plan-egm-requisition-to-approve-internalisation-of-sabana-reit-0

Views, Reviews, Forum & Others

Why inflation could be on the way back
Are we about to move into a new era of unexpectedly high inflation, rather than the below-target inflation we are used to? Many dismiss this view. But the boy who cried wolf was right the last time. And a book just out is crying wolf insistently. Notably, it states that, as a result of today’s fiscal and monetary largesse, “as in the aftermath of many wars, there will be a surge in inflation, quite likely more than 5 per cent, or even on the order of 10 per cent in 2021”.
https://www.businesstimes.com.sg/opinion/why-inflation-could-be-on-the-way-back

Flexible work, the new normal, should spur, not hamper, productivity
The Covid-19 pandemic is creating the biggest workforce experiment in modern history, as employees have shifted from corporate offices to working from home. Companies need to rethink their work design, from their technology, data and cloud infrastructure to employee and customer interfaces, as they are forced to adopt a work-from-home culture.
https://www.businesstimes.com.sg/opinion/flexible-work-the-new-normal-should-spur-not-hamper-productivity

Humans can work with digital counterparts to help our economy grow
News outlets worldwide – including Singapore’s – recently reported that robots will eliminate 85 million jobs at mid-sized to large businesses by 2025 as the pandemic accelerates changes in the workplace, citing a World Economic Forum (WEF) research study published in October.
https://www.businesstimes.com.sg/opinion/humans-can-work-with-digital-counterparts-to-help-our-economy-grow

Update on COVID-19 (Coronavirus Disease 2019) Situation

Five new imported cases, none in community
There were five new coronavirus cases confirmed yesterday, all of them imported. Those infected had been placed on stay-home notice on arrival in Singapore, said the Ministry of Health (MOH). There were no new locally transmitted cases, for the eighth day in a row.
https://www.straitstimes.com/singapore/five-new-imported-cases-none-in-community

Covid-19 insurance for travellers to S’pore
Travellers arriving in Singapore can now purchase insurance coverage for Covid-19-related costs incurred during their stay here. Changi Airport Group and the Singapore Tourism Board (STB) said in a joint statement yesterday that three insurance companies have developed travel insurance products which provide at least $30,000 in coverage for Covid-19-related medical treatment and hospitalisation costs.
https://www.straitstimes.com/singapore/covid-19-insurance-for-travellers-to-spore
https://www.businesstimes.com.sg/government-economy/ive-got-you-covered-3-insurers-offer-plans-for-visitors-to-singapore
*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