DAILY NEWS

Daily News – 20th, 21st and 22nd October 2018

Top Story

Pace of new home launches to remain steady despite cooling measures
Home buyers are more discerning and selective in their purchases as the market adjusts to the new cooling measures. Demand is beginning to gravitate towards projects with perceived strong value propositions. The August and September 2018 sales figures seem to bear this trend out. Two months after the new cooling measures were introduced, top selling projects appear to be enjoying higher market share gains.
https://www.businesstimes.com.sg/real-estate/pace-of-new-home-launches-to-remain-steady-despite-cooling-measures

Singapore Economy

Singapore bucks global trend; draws more investments in H1
Multinational corporations were still pumping more money into factories and offices in Singapore in the first six months of the year, even as they slashed global investments at the same time. Some US$35 billion in foreign direct investments flowed into Singapore, driving FDIs in South-east Asia up 18 per cent over the first half of 2017 to US$73 billion in January-June this year, according to the latest Investment Trends Monitor published by the United Nations Conference on Trade and Development (UNCTAD).
https://www.businesstimes.com.sg/government-economy/singapore-bucks-global-trend-draws-more-investments-in-h1

Singapore Real Estate

Spanish Village goes en bloc again at same price
Home owners haven’t abandoned their en bloc dreams just yet, with Spanish Village being the latest to take another crack at the market at the same price of S$882 million. Its earlier attempt this year was launched in June and closed on 18 July without a winning bidder. This coincided with the government implementing the most recent wave of property cooling measures on July 6, which brought higher additional buyer’s stamp duty and tighter loan-to-value limits on residential property purchases
https://www.businesstimes.com.sg/real-estate/spanish-village-goes-en-bloc-again-at-same-price
https://www.straitstimes.com/business/spanish-village-makes-second-bid-to-sell-en-bloc

Collective-sale fever cools for large residential sites
Even before new rules to raise the minimum average unit size for condominium and private apartment projects outside the central area were announced last Wednesday, the collective-sale fever was abating for larger sites, as owners at Chuan Park condo know all too well. The 99-year leasehold estate of 446 units in Lorong Chuan has failed in its second attempt to secure an 80 per cent mandate for a $900 million collective sale.
https://www.straitstimes.com/business/collective-sale-fever-cools-for-large-residential-sites

Live, work, play: Life by the water calls
A lush island with housing complexes, served by driverless electric vehicles only. Linked to it, an island for play and a high-tech waterfront city that is both an extension to the central business district and a link for Singapore’s green pathways. These are among the ideas urban planners have for a future area that the Government hopes to brand as the Southern Gateway of Asia.
https://www.straitstimes.com/singapore/live-work-play-life-by-the-water-calls

Three new hotels on Sentosa aimed at drawing more locals
Sentosa, one of the country’s most popular tourist destinations, is looking to court more Singapore residents, who make up just a third of its 19 million annual visitors. Three new hotels will open on the resort island next year, offering more affordable staycation options and niche events.
https://www.straitstimes.com/singapore/three-new-hotels-on-sentosa-aimed-at-drawing-more-locals

Founders’ Memorial to go up on 5ha Bay East Garden site
The plans for a memorial to honour the pioneer leaders of Singapore are moving forward, with a committee calling for ideas on how the Founders’ Memorial, which will be located at a 5ha site in Bay East Garden in Gardens by the Bay, should look.
https://www.straitstimes.com/singapore/founders-memorial-to-go-up-on-5ha-bay-east-garden-site

Companies’ Brief

Frasers Commercial Trust’s Q4 DPU flat at 2.4 Singapore cents
Despite a fall in gross revenue and net property income, commercial and business park owner Frasers Commercial Trust (FCOT) was able to report a jump in distribution income for its fourth quarter, thanks to contributions from Farnborough Business Park, higher distribution from capital returns and payment of management fee in units in lieu of cash.
https://www.businesstimes.com.sg/companies-markets/frasers-commercial-trusts-q4-dpu-flat-at-24-singapore-cents
https://www.straitstimes.com/business/companies-markets/frasers-commercial-trust-q4-dpu-dips-to-24-cents

CDL to launch Whistler Grand in the west at average S$1,380 psf
City Developments Limited (CDL)’s Whistler Grand condo will go at an average selling price of S$1,380 per square foot (psf), which the giant developer touts as the most affordable launch for the fourth quarter. CDL will begin previews this weekend for the 716-unit development comprising two 36-storey towers at West Coast Vale.
https://www.businesstimes.com.sg/real-estate/cdl-to-launch-whistler-grand-in-the-west-at-average-s1380-psf

Oxley, KSH, SLB and Heeton say Gaobeidian sales launch to be delayed
Oxley Holdings, KSH Holdings, SLB Development and Heeton Holdings said on Friday that the sales launch of Phase 1 of their Gaobeidian development project in China will be delayed. Oxley holds an effective interest of 27.5 per cent in the project. KSH has an effective interest of 22.5 per cent, SLB Development’s interest is not more than 10 per cent, and Heeton has an effective interest of 7.5 per cent.
https://www.businesstimes.com.sg/companies-markets/oxley-ksh-slb-and-heeton-say-gaobeidian-sales-launch-to-be-delayed-0

Viva Industrial Trust announces clean-up DPS of 1.692 S cents
The managers of Viva Industrial Trust (VIT) have announced a clean-up distribution per stapled security (DPS) of 1.692 Singapore cents, in line with the merger of ESR-Reit (real estate investment trust) and VIT.
https://www.businesstimes.com.sg/companies-markets/viva-industrial-trust-announces-clean-up-dps-of-1692-s-cents
https://www.straitstimes.com/business/companies-markets/viva-industrial-trust-announces-clean-up-dps-of-1692-cents-on-delisting

Keppel Reit Q3 DPU dips 2.9%
Lower contributions from several properties took a toll on results for office landlord Keppel Reit in its third quarter. Distribution per unit (DPU) slipped 2.9 per cent to 1.36 cents from 1.4 cents in the year-ago period, the group said in a Singapore Exchange filing on Monday (Oct 15). That came as Q3 income available for distribution slipped 1.4 per cent to $46.3 million from the year-ago period.
https://www.straitstimes.com/business/companies-markets/keppel-reit-q3-dpu-dips-29

Lian Beng Q1 profit falls 39% on share of losses from SLB Development
Mainboard-listed construction player Lian Beng Group saw smaller profits in the first quarter, as new accounting standards ate into its share of profits from a Catalist-listed spin-off. Net profit fell by 38.9 per cent year-on-year to $6.97 million for the three months to Aug 31, according to unaudited results released on Friday (Oct 12).
https://www.straitstimes.com/business/companies-markets/lian-beng-q1-profit-falls-39-on-share-of-losses-from-slb-development

Tee International, Tee Land in red for Q1
Increased cost of sales and other expenses pushed Tee International further into the red in its first quarter ended Aug 31, as net loss worsened to $3.8 million, from a net loss of $918,000 in the previous year, the group said in a Singapore Exchange filing on Friday (Oct 12). Loss per share stood at 0.77 cent, from a loss per share of 0.18 cent in the preceding year.
https://www.straitstimes.com/business/companies-markets/tee-international-tee-land-in-red-for-q1

VIEWS, REVIEWS, FORUM & Others

Non-residential sector looking up
The property cooling measures announced in July jolted the residential property market. Activity has begun to slow as developers held back launches and collective sales trickled to a halt. Flushed with capital, investors who believe in bricks and mortar are still on the hunt for quality real-estate assets. But with opportunities narrowing on the residential front, they are looking at alternative asset classes.
https://www.straitstimes.com/business/invest/non-residential-sector-looking-up

Shophouses: Shopping for a piece of heritage
My childhood days were spent in a pre-war shophouse owned by my great-grandparents, who operated a traditional Chinese medical hall on the ground floor, and resided on the upper levels. I spent many carefree afternoons playing with other children in the rear court, roaming along the five-foot way and hiding up in the attic.
https://www.straitstimes.com/business/invest/shophouses-shopping-for-a-piece-of-heritage

The future of retail is here, and now
The future of shopping may not be a binary battle between online sites and bricks-and-mortar shops, but an amalgam of the two. Singaporeans have a glimpse of this new option with Thursday’s opening of Habitat by Honestbee, a 60,000 sq ft retail space which stocks 20,000 products. There are no cashiers.
https://www.straitstimes.com/opinion/st-editorial/the-future-of-retail-is-here-and-now

Trusting in bricks and mortar
It comes as no surprise that real estate executive Jerome Tan believes that bricks and mortar are “one of the safest investments” around. Mr Tan, the director of property training firm PIP Holdings and a director at another 16 firms, certainly puts his money where his mouth is.
https://www.straitstimes.com/business/trusting-in-bricks-and-mortar

3 landmark agreements deepen EU-Singapore ties
In this crucial year of Singapore’s role as Asean chair and coordinator of Asean-EU relations for the next three years, three landmark agreements pave the way for even closer ties between the European Union and Singapore.
https://www.straitstimes.com/opinion/3-landmark-agreements-deepen-eu-spore-ties

China’s Belt and Road Initiative: Debt trap or hope?
Asia News Network commentators weigh the pros and cons of working with China on its Belt and Road Initiative. Here are excerpts.
https://www.straitstimes.com/asia/east-asia/chinas-belt-and-road-initiative-debt-trap-or-hope

World must help de-escalate mounting US-China trade conflict: Heng Swee Keat
The world needs to do its best to de-escalate the mounting United States-China trade conflict as there is a risk of the tensions growing into something more difficult, Finance Minister Heng Swee Keat said on Friday.
https://www.businesstimes.com.sg/government-economy/world-must-help-de-escalate-mounting-us-china-trade-conflict-heng-swee-keat