The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 22nd April 2016

Top Stories

Lifting curbs ‘not key to property sector’s outlook’: Lawrence Wong
The property market’s long-term prospects are not dependent on whether market cooling measures are lifted but the overall state of the local economy, said National Development Minister Lawrence Wong.  Real estate industry players have repeatedly lobbied the Government recently to ease the cooling measures, which have weakened demand for new homes.  Mr Wong said he knows the industry is “fixated” over the measures, but the key issue is for the country to grow and remain a successful global city with a thriving economy over the next 10 to 20 years.

Q1 deals may signal market for Good Class Bungalows looking up
The Good Class Bungalow (GCB) market may be headed for a pick-up in transaction volumes this year, if the results for the first quarter are anything to go by.  A mix of lower price expectations by owners and pent-up demand for the limited-supply, prestigious landed housing form has helped to narrow the price gap.  The result is that more deals were sealed in Q1 than in the previous quarter and in the year-ago quarter – notwithstanding the current weak economy and the stockmarket volatility at the start of the year, noted agents.

Singapore Real Estate

CDL heading to Indonesia to promote Gramercy Park
City Developments Limited (CDL) is holding roadshows in Jakarta this weekend for its freehold condominium project Gramercy Park in Singapore’s District 10, followed by Surabaya the following weekend.  This is part of a marketing effort to raise awareness of the project, which will be launched soon, in regional markets including China and Hong Kong. CDL has appointed DTZ, Huttons, Savills and Luxury Real Estate, a partnership between JLL and PropNex, as the marketing agents.

Adelson thinking about selling MBS retail assets next year
Gambling tycoon Sheldon Adelson, whose Las Vegas Sands Corp owns Singapore’s landmark Marina Bay Sands, is considering selling the casino resort’s retail assets after a government-imposed moratorium expires next year.  The company has spoken with potential buyers, Mr Adelson said in a conference call after Las Vegas-based Sands announced first-quarter results on Wednesday. “We have been approached. We have been talking to people.”  Capitalisation rates at the 800,000 square foot mall, in Singapore’s prominent downtown district, “are attractive, and we may or may not sell a portion”.

Developers get creative with sales pitches
Developers are getting creative in marketing their projects, from sure-win games dangling up to $250,000 in cash rebates as prizes to organising trips to Singapore for those overseas eyeing units across the Causeway.  Developers here are also increasingly banking on overseas markets – for their prime properties in particular – with two of them taking their projects to Indonesia before even launching here.  Leading the way in eye-catching marketing, Kingsford Development is holding a “250k Property Tycoon Challenge” for Kingsford Hillview Peak in Upper Bukit Timah this weekend.

MBS’ results hit by poor luck and strong greenback
Poor luck and a strong United States dollar again dragged down Marina Bay Sands’ (MBS) first-quarter revenues and net profit.  Revenues fell 23.1 per cent to US$603.7 million (S$813.2 million) from a year earlier, while net profit plunged 33.8 per cent to US$274.9 million.  Bad debt provisions at MBS were US$32 million for the first quarter, compared with Genting Singa- pore’s estimated bad debt provisions of S$52 million, according to Morgan Stanley.

Companies’ Brief

Suntec Reit’s Q1 DPU up with help from Park Mall sale
Suntec Reit on Thursday reported a 6.3 per cent increase in distribution per unit (DPU) to 2.371 Singapore cents for its first quarter ended March 31, 2016.  This was despite its divestment of Park Mall, completed last December, although as promised, the Reit manager used part of the sales proceeds to mitigate the otherwise inevitable dip in DPU.  Including a capital distribution of S$4 million from the sale proceeds of Park Mall, distributable income came up to S$60 million, 7.2 per cent higher than a year ago.

Properties boost Q2 earnings for Frasers Commercial Trust
Improved performance at two properties and contribution from a third acquired last August bolstered second-quarter earnings at Frasers Commercial Trust (FCOT).  The trust posted a 19.5 per cent year-on-year rise in distributable income to $19.35 million for the three months to March 31.  Distribution per unit rose 2.9 per cent to 2.45 cents and will be paid on May 30.  “The good performance of the trust was bolstered by Alexandra Technopark and Caroline Chisholm Centre (in Canberra) and the contribution from 357 Collins Street (in Melbourne), which was acquired in August 2015 and has a full occupancy rate,” said Mr Low Chee Wah, chief executive officer of the trust’s manager.

The Straits Times, epaper, page 54

Views, Reviews & Forum

S’pore still top choice for Asia-Pacific regional HQs
The Republic remains the most attractive Asia-Pacific destination for multinational companies (MNCs) to set up their regional headquarters (RHQs), but competition is expected to intensify in the coming years from cities such as Shanghai, said leading commercial real estate services firm Cushman & Wakefield.  Economic growth in Asia Pacific over the last decade has outpaced Europe and the United States, and the region is forecast to increase its share of global gross domestic product from 31 per cent last year to 36 per cent by 2030, said the property consultancy in a report. Despite recent market volatilities, economies in the region are well-positioned to offer rich long-term opportunities and, as businesses continue to seek locations close to their target markets, the number of RHQs in Asia Pacific is expected to increase.

Global Economy & Global Real Estate

Crystal City, once cast off by Washington, reinvents itself

American Copper Buildings almost done

Tokyo interior design and real estate companies cater to cat lovers

How Hadid’s firm plans to move on

Property taxes for foreign buyers to more than double in Victoria, Australia

Hamptons Home Sales Hit Three-Year Low on Wall Street Turbulence

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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