Commercial site at Beach Road triggered for public tender
A commercial site at Beach Road with at least a 70 per cent office component has been triggered for sale under the Reserve List of the government land sales (GLS) programme, reinforcing analysts’ perception that a recovery in sentiment for the office market is underway. The Urban Redevelopment Authority (URA) said on Wednesday that it has accepted an application from a developer to put up the site for public tender. The unidentified developer has committed to bid at a price of no less than S$1.138 billion.
SMEs’ optimism improves again, but profit outlook stays weak
Small and medium enterprises (SMEs) are slightly more optimistic about business prospects for the next six months, marking the second consecutive quarter that the outlook has improved. The SBF-DP SME Index – a joint initiative by the Singapore Business Federation and DP Information Group – increased marginally by half a point to 50.9. A reading above 50 indicates that SMEs expect growth in the coming two quarters, while a reading below 50 indicates pessimism. The latest survey measures the business outlook for Q3-Q4 2017 from a poll of more than 3,600 SMEs in April and May.
Asian cities among world’s most expensive for expatriates: Mercer
Globalisation may have boosted the growth strategy of many companies, but it does not necessarily follow that operating overseas always makes sense – cost-wise, at least. In fact, with the world’s markets being created unequal, it would help to know where to get the most bang for one’s buck. Global consultant Mercer’s 2017 Cost of Living Survey looks at how much it costs to house employees in cities around the world, with the aim of helping organisations with their global talent strategy.
3-month SOR tumbles back to November levels
The three-month swap offer rate (SOR) has tumbled further amid a rally in the US dollar (US$), as the market grapples with what some see as possibly aggressive moves by the US central bank to shrink its balance sheet as part of its normalising monetary policy. The key three-month SOR fell below 0.70 per cent, to 0.68419 per cent on Tuesday, back to last November levels. The more volatile SOR is used to price commercial loans. The three-month Sibor or Singapore interbank offered rate – a benchmark for home loans – was stable at 0.99308 per cent. Meanwhile the US$ has rallied to S$1.39 against the Singapore dollar (S$), from S$1.38 a week ago.
Singapore Real Estate
Serangoon Ville put up for collective sale
Serangoon Ville, a former HUDC estate at Serangoon Avenue North, has been launched for collective sale, with the owners expecting offers in the range of S$400 million to S$430 million. This joins the spate of properties being put up for sale this year, spurred by a revival in the en bloc market. The 244-unit Serangoon Ville sits on a land area of 296,913 sq ft with a plot ratio of 2.8. Each unit is expected to receive sale proceeds ranging from S$1.6 million to S$1.7 million from the collective sale. Serangoon Ville has 69 years left on its lease.
SPH, Kajima to build over 600 homes in Bidadari Estate
Singapore Press Holdings (SPH) and Kajima Development plan to develop more than 600 residential units and a retail/commercial component with a gross floor area of about 310,000 square feet on a 99-year leasehold site in the new Bidadari Estate that they were awarded on Wednesday. The two teamed up to form an equal partnership that placed the top bid for the site at a tender conducted by the Housing & Development Board. The tender closed on June 13, drawing 12 bids.
112 Katong owners evaluating offers; mall expected to fetch S$500m
Keppel Group has put 112 Katong, a mall at the junction of East Coast Road and Joo Chiat Road, on the market. The property is expected to fetch around S$500 million. The Business Times understands that a private expressions of interest exercise is being conducted for the sale by property consulting groups CBRE and JLL on behalf of the mall’s owners Alpha Asia Macro Trends Fund (AAMTF) and Keppel Land.
TripleOne Somerset office space put up for sale
A plush office space on the top floor of the Somerset Tower at TripleOne Somerset, near Orchard Road, is on the market for about $31.4 million. The office will be sold with existing tenancy, which The Straits Times understands to be luxury brand Gucci’s local headquarters. The 17th-floor office space generates a yield of 3.5 per cent per year, noted marketing agent CBRE. Interest for the property is likely to be keen as few new strata office units in the Orchard Road area come up for sale.
Geylang plot action a wake-up call for property owners, buyers: Experts
With the authorities recently affirming the policy stance that no compensation will be awarded to residential property owners upon lease expiry, private home buyers and sellers will soon need to brace themselves for a reality check. Over the coming decade, thousands of condominium or apartment unit owners here, for example, will find themselves sitting on properties with leases shorter than 50 years — making these properties highly undesirable, going by current buyer sentiments.
First Sponsor buys Dutch property for hotel development
Property developer First Sponsor Group on Wednesday said it has signed a conditional sale and purchase agreement with Hoog Catharijne Mall of the Netherlands, a private company, to buy the third floor to ninth floor of the Poortgebouw Hoog Catharijne. This is a leasehold property located at the Catharijne Esplanade 13 in Utrecht, the Netherlands. Connected to the Utrecht central station, it is a newly-built shell building with a total lettable floor area of about 11,604 sq m.
Cambridge Industrial Trust changes name to ESR-REIT from Friday
Cambridge Industrial Trust (CIT) Management Limited and Cambridge Industrial Trust will change their names to ESR Funds Management (S) Limited and ESR-REIT respectively from Friday. The Reit’s short trading name on the Singapore Exchange (SGX) will also be changed to ESR-REIT with effect from 9am on Friday.
Property firms UOL, Haw Par, UIC ask for trading halt
Three property companies that are substantially owned by veteran banker Wee Cho Yaw called for a trading halt yesterday, sparking speculation that the tycoon may be about to restructure his real estate holdings. The halt pending an announcement affects UOL Group, its associate United Industrial Corp (UIC) and investment holding company Haw Par Corp.
Ho Bee Land buys London office building for $228m
A unit of mainboard-listed Ho Bee Land has acquired a central London office building for £129.3 million (S$228 million). The unit, Stream Field Investments, bought over Emmatown Properties, which owns the freehold office building at 67, Lombard Street, Ho Bee said in a statement on Tuesday.
Sun Electric wins JTC solar roof deal
Power firm Sun Electric has won the first contract allowing solar energy to be fully exported to Singapore’s electricity grid. The agreement announced yesterday involves Sun Electric renting rooftop space on 27 JTC buildings to install solar panels capable of generating up to 5 megawatt-peak (MWp) of electricity. These panels will be rolled out over the course of a year and Sun Electric will own all the power generated.
Views, Reviews & Forum
Will jobs outlook follow upgraded forecasts of S’pore economic growth?
Of several big challenges confronting Singapore, the problem of low economic growth and attendant poor employment outlook arguably ranks below that of, say, tackling the scourges of religious extremism and terrorism or safeguarding cyber security – at least in terms of presenting high and immediate risks.
Equip HDB flats with fire escape ladders
Most fire emergency guidelines put forth by the Singapore Civil Defence Force (SCDF) assume that a fire in a housing block can be kept under control or that the block’s occupants can be rescued. They do not include many contingency plans for situations in which fires rage out of control or when occupants are unable to be rescued.
Small construction firms can follow the big boys overseas
Singapore’s construction industry is facing tough times (Construction industry faces tough times; June 19). With dwindling contracts due to the slowdown in economic growth, competition from overseas, and tightened control on the use of cheap foreign workers, many small and medium-sized construction companies are being squeezed out of business. The aggressive push by the Government to adopt new technologies is making the situation worse.
Global Economy & Global Real Estate
US existing home sales unexpectedly rise in May
NYC pushes for new method to build big infrastructure projects
US malls get makeovers with education elements, entertainment, healthcare
U.S. home refinancing activity climbs to seven-month high: MBA
Vacant homes getting new life in US recovery
Builder Berkeley warns of Brexit impact despite profit leap
Asian firms’ confidence at 3 year-high on brighter global outlook : poll
MSCI includes China stocks in global benchmark
Vanke’s chairman steps aside after building China’s biggest developer
Blackstone, China’s Cindat bid for Lendlease stake
Additional Articles of Interest – Local & Overseas Real Estate
Local & Overseas Real Estate – Full Article