The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 21st December 2016

Singapore Economy

No longer business as usual for SMEs
The year 2016 has certainly not been kind to many of the small and medium-sized enterprises (SMEs) in Singapore. Many are feeling the triple whammy of weak economic growth, technological disruptions, and the reverberating effects of the oil-and-gas downturn.  And, right now, it doesn’t look like 2017 will be much better.  While that hardly sounds reassuring, the good news is that our SMEs are now being forced out of their comfort zone to rethink their business models and strategy to find new ways to compete.

Singapore Real Estate

Limited scope for reversal of property measures for now
With the US Federal Reserve signalling a faster pace of interest rate hikes next year, should Singapore continue to stand pat on property cooling measures?  Whether these measures should be tweaked has been a perennial question bogging the industry. Now with the prospect of swifter rate hikes looking more certain, it is rekindling hopes among those who have been lobbying for policy relaxation.  Citing stronger economic headwinds ahead, some industry players also argue that it is better to tweak the measures earlier than to try reviving the market when the economy is in a more dire state.

Companies’ Brief

Sabana Reit to raise S$80m mainly for property purchases
Sabana Reit is looking to raise gross proceeds of about S$80.2 million through an underwritten and renounceable rights issue – S$76.8 million of which will be used to partly finance the acquisition of three properties.  These are located at 107 Eunos Avenue 3, 72 Eunos Avenue 7, and 47 Changi South Avenue 2.  In the exercise, the trust plans to issue more than 310.7 million new units on the basis of 42 rights units for every 100 existing units, at S$0.258 per rights unit.

Views, Reviews & Forum

Remove cap on clinics in commercial developments to rein in rentals
Cooling measures on medical properties alone won’t help to lower costs (“Time for cooling measures on medical properties?” by Mr Lionel Loi Zhi Rui; Dec 17).  Rather, the Government should be more proactive in helping general practitioner clinics rein in high rentals.  Capping the number of clinics allowed in commercial developments inadvertently created an artificial shortage of clinic spaces and allowed the owners to inflate rentals.

Extend Proximity Housing Grant to singles living near their parents
I applaud the Proximity Housing Grant for encouraging inter-generational contact and the strengthening of familial bonds (“Proximity grant a boon for over 5,200 households“; Dec 11).  However, there seems to be a misconception that married couples and singles receive the grant equally as long as they wish to live near their parents.  This is not the case.

Heed tell-tale signs of wall cracks
Short of an earthquake, wall plasterings and well-designed concrete structures are highly unlikely to fall without first showing tell-tale signs (“Plaster falls 12 storeys from HDB blocks in Hougang“; ST Online, Nov 28 and “Sunshade dislodged at Tampines block had no rebars“; Dec 5).  Small plaster cracks must be repaired before they widen. When exposed to the elements, the concrete structure beneath may deteriorate.  If the cracks are not repaired, the reinforcement bars (rebars) embedded in the concrete structure will corrode and expand due to exposure to air and moisture.

Global Economy & Global Real Estate

US reflation seen having mixed impact on Asean economies

Banks loosen lending standards for fourth straight year: U.S. regulator

Beijing faces test of reining in property speculation even when growth slows

Vanke sees US$10b erased as takeover battle loses sway

Soft property market in China will hurt Macau: Nomura

Runaway Australian Property Market Shows First Signs of Cooling

Bank of Japan keeps policy steady, offers brighter economic view

Here comes the sun and it will cost you: Portugal

Additional post-quake checks for 70 Wellington buildings

Additional Articles of Interest – Local & Overseas Real Estate 

Local & Overseas Real Estate – Full Article

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