Q2 rents up for CBD Grade A and Marina Bay offices
Grade A office rents in Singapore’s CBD may have bottomed earlier than expected. Based on preliminary second-quarter estimates from JLL, the average rental values for its overall CBD Grade A and Marina Bay baskets have posted their first quarter-on-quarter increases after having declined for two years. A stronger-than-expected take-up of offices in new developments and easing of supply pressure from 2018 to 2020 are among the factors that have contributed to the uptick in Grade A rents in the two baskets.
Report: S’pore economy to grow 2.7%
The economy is tipped to grow by 2.7 per cent this year despite uneven performances from different sectors, according to a report yesterday. The forecast means expansion would exceed the 2 per cent growth last year and trump the 2.5 per cent estimate for this year by private sector economists in a recent survey by the Monetary Authority of Singapore.
Heady markets belie lingering uncertainty
The financial markets are likely underestimating tail risks that include elevated political uncertainty, even as the global economy is in a better shape than it has been in a long while, said the managing director of the Monetary Authority of Singapore Ravi Menon.
S’pore financial sector, O&M layoffs likely to ease: report
Employment conditions in Singapore are expected to improve later this year as the drag from sharp retrenchments in financial services and oil and gas-related sectors ease, while a property recovery is not on the cards yet, said the latest report by the Institute of Chartered Accountants in England and Wales (ICAEW).
Strong pipeline seen for equity raising despite slow first half
Equity-based fundraising by Singapore-domiciled companies in the first half of 2017 is on track for a 62 per cent slowdown from a year ago, although a robust pipeline is expected to give the next six months a boost. Just US$1.0 billion of equity capital was raised between Jan 1 and June 22, according to data from Thomson Reuters. Most of those proceeds were from follow-on offerings, which raised US$806.1 million.
Heartland shops in east join GSS
The Great Singapore Sale (GSS) has become known as a time when one can shop for the best deals in Orchard Road but, increasingly, shops in the heartland are also putting out their best wares during this sale season.
Singapore Real Estate
Strong take-up drives expansion at Maxwell Chambers
The Ministry of Law (MinLaw) on Thursday announced that 65 per cent of the new office space at 28 Maxwell Road has already been taken up even before refurbishment works begin. To meet the strong leasing demand, the ministry will build a second annexe block to add 3,500 square feet (sq ft) of office space, on top of the 120,000 sq ft expansion that was originally planned.
Trading halt of 3 firms fuels rally of property stocks
Many property counters rose yesterday after the trading halt of three property firms substantially owned by tycoon Wee Cho Yaw stoked talk of a possible restructuring – such as possible privatisation. Investors piled into City Developments, sending its shares up 2.5 per cent, or 27 cents, to $10.92 – their highest level since May 2014.
HNA Commercial Reit’s IPO issue size estimated at S$775m
The upcoming listing of HNA Commercial Reit is expected to have an issue size of around S$775 million, of which Chinese conglomerate HNA Group’s Shenzhen-listed associate plans to take up no less than 35 per cent stake to become its largest shareholder. Based on regulatory filings with the Shenzhen Stock Exchange, HNA Investment Group Co Ltd will also own a 75 per cent stake in the Reit manager.
UOL gains option to buy 60m UIC shares from Haw Par
Property play UOL Group is poised to buy investment holding company Haw Par Corporation’s stake in another property play, United Industrial Corporation (UIC), via a share swap. UOL announced an option agreement under which, if exercised, will see UOL issue 27.3 million new shares to Haw Par in exchange for 60 million UIC shares. On completion, UOL’s stake in UIC will increase from 44.71 per cent to about 48.94 per cent.
Global Economy & Global Real Estate
Cooling US dollar ‘may lift Asian markets’
US existing home sales unexpectedly rise in May
Trump’s net worth falls to US$2.9b as properties underperform
Airbnb said to be ready to launch a premium tier
Bidding wars erupt in Washington with limited supply of homes for sale
After London fire, 600 tower blocks thought to have similar cladding
Some London fire survivors to be housed in luxury complex
China regulator orders checks on offshore loans
The $100 billion city next to Singapore has a big China problem
Home Capital to get C$2b credit facility from Berkshire Hathaway
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