DAILY NEWS

Daily News – 1st and 2nd Oct 2019

Singapore Real Estate

Two quarters of rises in private home prices raise question of cooling measures
Two straight quarters of increases in the overall private home price index of the Urban Redevelopment Authority (URA) have sparked a debate on whether this might prompt the authorities to respond with more measures to cool down the property market. Barclays’ regional economist Brian Tan thinks the risk of more cooling measures has risen to “a relatively high level”, and that the government could act quickly.
https://www.businesstimes.com.sg/real-estate/two-quarters-of-rises-in-private-home-prices-raise-question-of-cooling-measures
https://www.straitstimes.com/business/property/private-home-prices-up-09-in-second-straight-quarterly-hike
https://www.channelnewsasia.com/news/singapore/singapore-private-property-ura-home-prices-climb-q3-11958002
https://www.todayonline.com/singapore/singapore-private-home-prices-climb-09-q3

HDB resale flat prices rise 0.1% in Q3: Flash estimates
[Singapore] Housing Board (HDB) resale prices rose 0.1 per cent in the third quarter of this year compared with the quarter before, according to the latest HDB flash estimates released on Tuesday. The resale price index was 130.9, up from 130.8 in the second quarter of the year.
https://www.businesstimes.com.sg/real-estate/hdb-resale-flat-prices-rise-01-in-q3-flash-estimates
https://www.channelnewsasia.com/news/singapore/hdb-flats-q3-resale-prices-property-housing-increase-slightly-11957968
https://www.todayonline.com/singapore/hdb-resale-prices-increase-slightly-q3-after-four-quarters-decline

Cascadale condo in Changi relaunched for en bloc sale at same S$270 million price
The owners of Cascadale condominium in Upper Changi Road East are making a second attempt at an en bloc sale at the same reserve price of S$270 million, marketing agent JLL said on Tuesday. The 25-year-old freehold property in District 16 was first launched for collective sale in May this year. The reserve price translates to a land rate of about S$1,065 per square foot per plot ratio (psf ppr), after factoring an…
https://www.businesstimes.com.sg/real-estate/cascadale-condo-in-changi-relaunched-for-en-bloc-sale-at-same-s270-million-price
https://www.straitstimes.com/business/property/cascadale-condo-in-changi-relaunched-for-en-bloc-sale-at-same-270m-price

2 Duxton Hill shophouses put on the market
Two double-storey conservation shophouses in Duxton Hill in Tanjong Pagar has been launched for sale with an S$11 million guide price, marketing agent JLL announced on Monday. The indicative price works out to about S$2,800 per square foot on the estimated gross floor area. Located at 39 and 40 Duxton Road, the shophouses have a combined land area of 2,161 sq ft, and an estimated built-up area of 3,929 sq ft.
https://www.businesstimes.com.sg/real-estate/2-duxton-hill-shophouses-put-on-the-market
https://www.straitstimes.com/business/property/pair-of-duxton-hill-conservation-shophouses-on-sale-with-11m-guide-price

Facilities management industry mulls over climate change
Some 10,000 visitors are expected at a three-day series of conferences for the architecture and building-services sector, at which climate change and sustainability in built environments are set to be key topics of discussion. In his opening speech at Architecture & Building Services (ABS) 2019 on Tuesday, Tony Khoo, president of the Singapore International Facility Management Association, said climate change has…
https://www.businesstimes.com.sg/real-estate/facilities-management-industry-mulls-over-climate-change

Singapore workplace fatalities dip in first half of 2019, but injuries rise
Workplace deaths have taken a dip in the first half of this year to reach a seven-year low. Seventeen workers died on the jobs from January to June this year, down from 18 in the same period last year and 23 in the second half of last year.
https://www.businesstimes.com.sg/government-economy/singapore-workplace-fatalities-dip-in-first-half-of-2019-but-injuries-rise
https://www.straitstimes.com/singapore/workplace-deaths-down-in-1st-half-of-2019-but-injuries-up
https://www.straitstimes.com/singapore/manpower/more-hurt-on-the-job-but-deaths-in-workplace-at-seven-year-low

Singapore Economy

Aug bank lending bounces back on business loans
Higher lending across various business segments contributed to an overall 0.6 per cent lift in total bank loans for August, reversing a contraction of 0.9 per cent in July even as housing loans extended their slide for the eighth straight month. Preliminary data from the Monetary Authority of Singapore on Monday showed that loans to businesses grew 1.1 per cent month-on-month to S$422.7 billion in August, up from…
https://www.businesstimes.com.sg/banking-finance/aug-bank-lending-bounces-back-on-business-loans
https://www.straitstimes.com/business/bank-lending-up-06-in-august-on-business-loans

Companies’ Brief

CapitaLand aims to more than double India AUM to S$7b by 2024
Property group CapitaLand plans to more than double its assets under management (AUM) in India to S$7 billion by 2024, from S$3.3 billion currently, riding on the dynamism of the world’s second most populous country. To achieve this, CapitaLand will invest capital towards growing its development pipeline and work with capital partners to expand its fund management business over the next five years, it said.
https://www.businesstimes.com.sg/companies-markets/capitaland-aims-to-more-than-double-india-aum-to-s7b-by-2024
https://www.straitstimes.com/business/companies-markets/capitaland-aims-to-more-than-double-assets-under-management-in-india-to

CapitaLand Mall Trust snags maiden S$200m green loan from OCBC
CapitaLand Mall Trust (CMT) has secured a S$200 million, five-year green loan from OCBC Bank, its manager announced on Tuesday. This mark’s CMT’s first foray into green financing where all proceeds will be used to finance or refinance properties within its portfolio that have achieved the BCA Green Mark certification.
https://www.businesstimes.com.sg/companies-markets/capitaland-mall-trust-snags-maiden-s200m-green-loan-from-ocbc
https://www.straitstimes.com/business/companies-markets/capitaland-mall-trust-snags-maiden-200m-green-loan-from-ocbc

Frasers Centrepoint Trust appoints Edmund Tie & Co CEO as non-exec director
Frasers Centrepoint Asset Management has appointed Ong Choon Fah as a non-executive and independent director, the manager of Frasers Centrepoint Trust announced on Monday after market close. Ms Ong, 61, has also been appointed a member of its audit committee, and of its nominating and remuneration committee. All appointments take effect from Oct 1.
https://www.businesstimes.com.sg/companies-markets/frasers-centrepoint-trust-appoints-edmund-tie-co-ceo-as-non-exec-director

Frasers Property’s new industrial, logistics unit names Reini Otter as CEO
Frasers Property Industrial (FPI), the new integrated industrial and logistics strategic business unit of Frasers Property, will be led by Reini Otter as its chief executive officer (CEO). The new integrated platform will combine Frasers Property’s industrial and logistics operations in Australia and Europe. It will work closely with group’s Singapore-listed Frasers Logistics & Industrial Trust in terms of asset and property…
https://www.businesstimes.com.sg/companies-markets/frasers-property%E2%80%99s-new-industrial-logistics-unit-names-reini-otter-as-ceo
https://www.straitstimes.com/business/companies-markets/frasers-propertys-new-industrial-logistics-unit-names-reini-otter-as-ceo

Keppel Reit sells Bugis Junction Towers for S$547.5m, S$388m above purchase price
Keppel Reit has sold Bugis Junction Towers to Village Prop Pte Ltd for S$547.5 million or S$2,200 per square foot, S$388 million more than the S$159.5 million the property was acquired for in 2006. The Business Times understands the main buyer is a fund managed by Angelo Gordon, a US-headquartered global alternative investment manager.
https://www.businesstimes.com.sg/companies-markets/keppel-reit-sells-bugis-junction-towers-for-s5475m-s388m-above-purchase-price
https://www.straitstimes.com/business/companies-markets/keppel-reit-sells-bugis-junction-towers-for-5475m-388m-above-purchase

Sembcorp sells commercial construction business to Chip Eng Seng for S$49.9m
Sembcorp Industries has signed an agreement to sell the commercial construction business under its subsidiary to Chip Eng Seng Corp’s unit for about S$49.9 million, both mainboard-listed firms said in separate bourse filings on Wednesday. Sembcorp Design & Construction (SDC) will sell its commercial construction business to Chip Eng Seng Construction Pte Ltd, but will retain its defence-related…
https://www.businesstimes.com.sg/companies-markets/sembcorp-sells-commercial-construction-business-to-chip-eng-seng-for-s499m
https://www.straitstimes.com/business/companies-markets/sembcorp-sells-commercial-construction-business-to-chip-eng-seng-for-499m

GuocoLand’s Midtown Bay condo to open for booking on Oct 5
GuocoLand will open the sale and viewing of units for its 99-year leasehold Midtown Bay on Oct 5, with prices starting from S$1.38 million for a one-bedroom unit and S$2.08 million for a two-bedder. This works out to an estimated S$3,000 to S$3,400 per square foot (psf) for one-bedroom homes and a starting price of S$2,800 psf for two-bedroom units, according to Lee Nai Jia, senior director and head of research at Knight Frank Singapore.
https://www.businesstimes.com.sg/real-estate/guocolands-midtown-bay-condo-to-open-for-booking-on-oct-5-0
https://www.straitstimes.com/business/property/guocolands-mega-project-gets-bigger-with-addition-of-800m-site
https://www.todayonline.com/singapore/midtown-bay-residential-part-guocolands-s24b-mixed-use-project-bugis-launch-oct-5

Lendlease Global Commercial Reit’s public tranche 14.5 times taken up
The Lendlease Global Commercial Reit’s (real estate investment trust) initial public offering (IPO) has ended with its public offer tranche 14.5 times subscribed, the Reit’s manager announced on Tuesday night. Its units are expected to start trading on the Singapore Exchange’s mainboard at 2pm on Oct 2.
https://www.businesstimes.com.sg/companies-markets/lendlease-global-commercial-reits-public-tranche-145-times-taken-up

Boustead Projects JV to buy IBM’s Tampines technology park property for S$77.4m
Boustead Projects Limited’s 51 per cent-owned JV company, BP-TPM LLP, is buying IBM’s manufacturing facility in Tampines for S$77.4 million. Completed in 2010, the three-storey light industrial building has a gross floor area of 430,999 square feet.
https://www.businesstimes.com.sg/companies-markets/boustead-projects-jv-to-buy-ibms-tampines-technology-park-property-for-s774m
https://www.straitstimes.com/business/companies-markets/boustead-projects-joint-venture-to-buy-ibms-tampines-technology-park

Views, Reviews, Forum & Others

CapitaLand shows good ESG policies do pay off
The tangible positive results of good governance may not be obvious when companies do well on the back of a growing economy and market. It is during a downturn that those with good governance, which sifts out the wheat from the chaff, will stand tall. Companies with good environmental, social and governance (ESG) practices weather the storm with greater equanimity than those that have poor governance, as this year’s…
https://www.businesstimes.com.sg/companies-markets/capitaland-shows-good-esg-policies-do-pay-off

WeWork: A warning about private market exuberance
A ubiquitous short-term office group with a paper valuation of close to US$100 billion and a small British brokerage with fewer than 200 staff. At first glance, they have little in common. But within a matter of days, WeWork and Shore Capital illustrated a common truth – public markets are going out of fashion. When market historians look back on 2019, they might well see WeWork’s decision a fortnight ago to pull…
https://www.businesstimes.com.sg/opinion/wework-a-warning-about-private-market-exuberance

Economic Affairs: Negative interest rates and yields hurt more than they help, says UBS chairman
Additional interest rate cuts by the European Central Bank (ECB) deeper into negative territory are unlikely to be effective, says Dr Axel Weber, chairman of the world’s largest private bank, UBS. Negative interest rates and negative bond yields in a world of growing uncertainty are also creating problems for banks, investors and the pension industry. “Negative rates are a bit like medication,” he tells The Straits Times in…
https://www.straitstimes.com/opinion/negative-interest-rates-and-yields-hurt-more-than-they-help-ubs-chairman