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 September 2016

Singapore Economy

S’pore nine-month bond issuance hits 4-year high
Primary bond offerings from Singapore-domiciled issuers hit US$21.5 billion to-date this year – the highest-ever first nine-month period for Singapore bond offerings since US$27.5 billion in 2012.  A Thomson Reuters debt capital markets report released on Wednesday showed that bond proceeds in 2016 rose more than 25 per cent from the first nine months of last year, as local companies tapped both domestic and offshore bond markets to raise funds.

Less China, more India make Singapore hedge funds Asia’s best
Singapore-based hedge funds outperformed Asian rivals during the first seven months of the year thanks to a greater focus on India and global markets, according to data provider Eurekahedge Pte Ltd.  Funds headquartered in Singapore returned 2 per cent through July, while Hong Kong-based funds declined an average 2.3 per cent, Eurekahedge said in a report Tuesday. Funds based in Australia rose 1.9 per cent, while Japan-based funds declined 2.5 per cent, the report said.

Singapore an ideal destination for Swedish firms: Lim Hng Kiang
Singapore’s robust intellectual property regime, pro-business policies and its location as a regional hub make it an ideal destination for Swedish companies, said Trade and Industry Minister Lim Hng Kiang yesterday.  Mr Lim told the inaugural Sweden-South-east Asia Business Summit: “Asean remains a region with diverse cultures and differing levels of economic development.  “Companies venturing into new markets often face challenges, such as financial risks, cultural differences, and availability of competent employees. Having a reliable partner who understands the market can help mitigate some of these risks.”

S’pore business sentiment crumbles amid domestic, global concerns
Companies in Singapore were the most pessimistic among their Asian peers in the third quarter, a Thomson Reuters/Insead survey revealed yesterday, as concerns over slowing economic growth, weak global demand, manpower shortage and a flagging oil and gas sector dragged on sentiment.  Sentiment fell to 38 in the July to September quarter, plunging 25 points from 63 in the previous three months, the steepest decliner among all the economies polled in the Thomson Reuters/Insead Asian Business Sentiment Index.

Singapore households 10th richest in the world: Allianz report
Singapore took 10th spot in a global ranking of the world’s wealthiest households based on per capita net financial assets.  The top spot was taken by Switzerland, followed by the US and UK. Japan ranked sixth, and Taiwan was eighth.  The Allianz Global Wealth Report looks into the asset and debt situation of households in over 50 countries. It found that Singapore’s total financial asset growth last year was 4.5 per cent, dampened by the negative performance of the stock market. But as loan growth also slowed to 2.4 per cent, the rise in net financial assets was relatively strong at 5.7 per cent.

Ideas to make it a really great Singapore sale
If shoppers could design their own Great Singapore Sale (GSS), they would offer newer stock and deals on more items.  The marquee event would also tie in with the annual F1 race, feature a mascot, and have a “pasar malam” or night market atmosphere.  To cater to tourists, for whom the event was started in 1994, there would also be perks to make the GSS more attractive – such as the option to pay in their own currencies at malls and restaurants, lower charges for excess baggage at the airport, and free transportation from hotels to shopping areas.

New sale aims to draw Chinese tourists
A special 18-day sale will be held from the end of this month to the middle of next month to coincide with a national holiday in China.  Called the Singapore Golden Week, like the week-long holiday in China, the event is geared to attract Chinese visitors, the biggest spenders here last year.  The Singapore Retailers Association (SRA), the sale organiser, has secured Chinese payments firm UnionPay as the official card.

Singapore Real Estate

JTC to trial robot for building inspection
Early next year, a Wall-E lookalike autonomous robot will be deployed in an almost-completed industrial project in Singapore’s west to check for architectural defects.  And if the trial, undertaken by Singapore’s industrial developer JTC, proves successful, it can take over some aspects of the job currently done by humans in the near future.

Deutsche Asset Management sees mid to high single-digit returns for Asia-Pac office sector
Mid to high single-digit returns are expected in most cities in the Asia-Pacific office sector over the next five years on the back of healthy demand and moderate supply, says Deutsche Asset Management in its regional report on the real estate outlook.  “Forecast five-year performance in highly volatile markets such as Hong Kong, Singapore and Perth are projected to come in relatively weaker, though good entry points should arise following the beginning of anticipated market recoveries occurring sometime around 2017-2018,” it said.  This prognosis of the office sector echoes recent views of local analysts who are tipping that office rents in Singapore will find some support next year.

West Coast Road Sers flat sold for $330,000
The first West Coast Road flat coming under the Selective En bloc Redevelopment Scheme (Sers) has been resold, with its buyer now eligible for a new replacement flat.  The 68 sq m three-room flat on a low floor was sold for $330,000 earlier this week, according to SRX Property. Before the Sers announcement in August, low-floor three-roomers in the area were fetching $255,000 to $260,000.  The West Coast Road site comprises 994 flats across Blocks 513 to 520. They will be demolished and the site redeveloped, with residents offered new units from two projects: in Clementi Avenue 1 and West Coast Link. Both are expected to be completed in 2022.

A*Star launches innovation facility for biotech start-ups
Biotech start-ups that are short of space and cash are getting a boost from a new facility providing offices and life science labs.  Called A*StartCentral, the space aims to foster innovation while helping scientist-entrepreneurs keep costs down and access mentorship and funding.  The 983 sq m facility at one-north was officially opened yesterday and is the first of its kind here. It will bring scientists, entrepreneurs, investors, mentors, incubators and accelerators together under one roof.

Tree that fell into apartments flagged as risk
A 12-storey-high tree that crashed through five apartments at Pearl Bank Apartments in Outram on Sept 11 had been flagged as a risk by its management council more than a year ago.  Residents had been worried that the tree, a Purple Millettia over 60 years old, would collapse onto the building, management council chairman Cecilia Seet told The Straits Times. “We warned NParks (National Parks Board) and gave them feedback last August that the tree in particular was very tall. It stood on a slope and there are strong winds in the area… so we were very concerned for the safety of our residents,” she said.

Bukit Panjang hawker centre needs repairs – 10 months after opening
Less than 10 months after it opened for business, Bukit Panjang Hawker Centre and Market is already in need of renovation.  The building was officially opened last month and is among 20 hawker centres the Government is building by 2027, boasting larger stalls and better ventilation than their predecessors.

But it has been affected by rainwater splashing in and collecting, and is now undergoing repairs.

No licence, but man worked as estate agent
A Singaporean helped prospective renters lease homes or renew leases even though he was not a licensed agent or registered to work for an agency.  Shakir Khan, 56, was charged yesterday with five counts under the Estate Agents Act – three for acting as a property agent without first being licensed by the Council for Estate Agencies (CEA), and two for presenting himself as a sales executive for a licensed estate agency without being registered.  According to the CEA, Shakir facilitated the closing of a lease transaction for a Housing Board flat in Kallang around May 2012. He arranged for the tenant to view the flat and prepared the Letter of Intent using the HSR International Realtors letterhead, even though he was not an agent with the firm.

Companies’ Brief

HLH Group terminates Cambodian construction project with Yanjian Group
The board of directors of HLH Group announced on Wednesday the termination of the construction project D’Seaview in Sihanoukville, Cambodia with Yanjian Group Co Ltd from July 21.  It was a mutual termination agreement on the basis that Yanjian Group was unable to comply with the terms set in the contract.  As consideration of the termination, HLH Group forfeited the tender deposit of US$10,000 made by Yanjian Group during the tender process for the project. It has also been agreed that both parties are responsible for and shall bear their own costs and expenses as a result of the termination.

Soilbuild Reit 94.4m preferential offering oversubscribed
SB Reit Management announced on Wednesday that its preferential offering to raise S$59.4 million through the issue of about 94.4 million new units received “overwhelming support from unitholders”.  SB Reit Management said that at the close of the preferential offering on Monday, the valid acceptances and applications for excess new units received amounted to about 164.6 million new units, representing about 174.4 per cent of the total number of new units offered pursuant to the preferential offering.

Global Economy & Global Real Estate

Global economy stuck in ‘low-growth trap’ with no easy escape: OECD

US Federal Reserve keeps key interest rate unchanged

Developer pays record 12,517 yuan psm for southern China land

China’s failing home curbs risk bubble that may hurt economy

Beijing gives nod to Marriott’s deal to buy Starwood

China property developers may issue 960b yuan in bonds in 2016

Investors see Hong Kong property as a one-way bet

Valuers drop Brexit clauses from most contracts

Faster than anticipated drop in Europe jobless rate points to reform success

Luxury London home values to fall most since 2008 on Brexit

Fragrance Australian unit gets permit to develop mixed-used property in Melbourne

BOJ turns focus to bailing out finance houses in latest policy moves

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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