DAILY NEWS

Daily News – 21th, 22th and 23th Sep 2019

Singapore Real Estate

Chinese demand drives Singapore luxe apartments to hit 11-year high
Sales of Singapore apartments worth at least S$10 million have hit an 11-year high, fuelled by increased demand from Chinese millionaires seeking safe-haven assets, say property consultants OrangeTee & Tie. Investors have long viewed Singapore as an island of stability that attracts the super-rich from its less developed South-east Asian neighbours, as well as multi-millionaires from mainland China.
https://www.businesstimes.com.sg/real-estate/chinese-demand-drives-singapore-luxe-apartments-to-hit-11-year-high
https://www.straitstimes.com/business/property/sales-of-luxury-apartments-here-hit-11-year-high
https://www.todayonline.com/singapore/singapore-luxury-apartment-sales-hit-11-year-high-driven-chinese-demand

1st phase of Sentosa-Brani Master Plan to be completed by 2022
Construction will start by year-end on the long-awaited redevelopment of resort island Sentosa and nearby Pulau Brani, in a blueprint unveiled by national planners on Friday. The Sentosa-Brani Master Plan will be rolled out in phases over the next two to three decades, Quek Swee Kuan, chief executive of government agency Sentosa Development Corp (SDC), told a briefing.
https://www.businesstimes.com.sg/government-economy/1st-phase-of-sentosa-brani-master-plan-to-be-completed-by-2022-0
https://www.straitstimes.com/singapore/90m-project-to-link-sentosas-north-south-shores
https://www.channelnewsasia.com/news/singapore/sentosa-brani-masterplan-merlion-sensoryscape-walkway-gsw-11927258
https://www.todayonline.com/singapore/new-multisensory-link-between-resorts-world-sentosa-and-sentosas-beaches-2022

New vertical ‘kampung’ to be built with flats for elderly
A vertical “kampung”, with flats for the elderly and facilities such as a polyclinic and a dialysis centre, will be built in the north-western part of the island. To be completed in the second half of 2026, it will be located next to Yew Tee MRT station, said Minister for National Development Lawrence Wong yesterday.
https://www.straitstimes.com/singapore/new-vertical-kampung-to-be-built-with-flats-for-elderly
https://www.channelnewsasia.com/news/singapore/new-yew-tee-integrated-development-to-house-seniors-with-11932318

HDB more flexible on criteria for securing public rental flats
The Housing Board has become more flexible on the eligibility criteria for those wishing to rent its flats under the Public Rental Scheme. The criteria, listed on its website, no longer state that there is an “income ceiling” which stipulates that an applicant’s total household gross income must not exceed $1,500 per month.
https://www.straitstimes.com/singapore/housing/hdb-more-flexible-on-criteria-for-securing-public-rental-flats

Singapore Economy

Singapore may fare worse than Asean peers in the next global crash
South-East Asia is more vulnerable to a downturn than it was during the last global financial crisis, Bain & Co warned in a report out on Friday. But Singapore’s economy, historically, falls more sharply in a slump, partner Thomas Olsen told The Business Times.
https://www.businesstimes.com.sg/government-economy/singapore-may-fare-worse-than-asean-peers-in-the-next-global-crash
https://www.straitstimes.com/business/economy/asean-may-fare-worse-in-next-downturn-than-in-earlier-crisis-report

Companies’ Brief

CapitaLand gains big canvas for Singapore redevelopments from ASB purchase
Some folks may think that CapitaLand does not have many Singapore residential developments coming up – with only two projects currently. However, the property group has a much larger canvas for creating development opportunities at home in various asset classes, beyond residential, after its S$11 billion acquisition of Ascendas-Singbridge (ASB) this year.
https://www.businesstimes.com.sg/companies-markets/capitaland-gains-big-canvas-for-singapore-redevelopments-from-asb-purchase

Chip Eng Seng mulling purchase of local construction firm
Mainboard-listed Chip Eng Seng is in discussions to fully acquire a local construction company that is privately held, the property and construction group announced in a bourse filing on Friday after market close. Chip Eng Seng’s board believes that the acquisition will strengthen the company’s construction business, with “a good opportunity for horizontal integration” amid the competitive landscape for…
https://www.businesstimes.com.sg/companies-markets/chip-eng-seng-mulling-purchase-of-local-construction-firm

Broker’s take: CGS-CIMB says Boustead could launch a Reit in 2020
Boustead Singapore’s industrial real estate unit, Boustead Projects, could be on track for a Reit listing in as early as 2020, as existing projects under development bring its leasehold portfolio asset base to S$1 billion by next year, according to CGS-CIMB. “With the help of higher occupancy rate after the completion of the ALICE asset (ALICE@Mediapolis) stabilisation, we think a Reit listing could materialise as early as calendar…
https://www.businesstimes.com.sg/companies-markets/brokers-take-cgs-cimb-says-boustead-could-launch-a-reit-in-2020

99.co shows support for inclusivity with diversity-friendly tag for property listings
Singapore property search portal 99.co has launched a new tag on its platform, in an initiative to fight housing discrimination against the LGBTQ (lesbian, gay, bisexual, transgender and queer) community. The “Diversity Friendly” tag is an optional feature for property owners and agents to declare their support for inclusion and diversity when creating listings on the online portal, 99.co told The Business Times (BT) on…
https://www.businesstimes.com.sg/real-estate/99co-shows-support-for-inclusivity-with-diversity-friendly-tag-for-property-listings
https://www.straitstimes.com/business/property/99co-shows-support-for-inclusivity-with-diversity-friendly-tag-for-property

Motorola extends lease at Cromwell E-Reit’s Poland property
Cromwell European Real Estate Investment Trust (Cromwell E-Reit) on Friday announced that the lease with Motorola Solutions at its Polish property, Green Office, has been extended for another five years to 2026/2027. The freehold, predominantly office property is located in Krakow, Poland, with 22,954 square metres of net lettable floor area. In June, Cromwell E-Reit’s manager said that Green Office was fully let to…
https://www.businesstimes.com.sg/companies-markets/motorola-extends-lease-at-cromwell-e-reits-poland-property

Views, Reviews, Forum & Others

Towards gender diversity in the boardroom
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
To increase women representation in the corporate world is a big challenge but not insurmountable. It requires a change in the stereotyped mindset to move the needle more significantly. Concerted efforts by various interest groups such as women’s organisations, SID, Council for Board Diversity and companies, etc, must be directed to first change how boards perceive the importance of diversity and transform the way…
https://www.businesstimes.com.sg/views-from-the-top/towards-gender-diversity-in-the-boardroom

Back to square one? Why are “asset-light” players in the sharing economy buying up property and cars?
Four years ago, an advertising and public relations executive penned these words about four up-and-coming companies: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is…
https://www.businesstimes.com.sg/brunch/back-to-square-one-why-are-%E2%80%9Casset-light%E2%80%9D-players-in-the-sharing-economy-buying-up-property

Real estate may be yielding less than you thought
* Income is an important part of real estate returns, meaning yields are often heavily scrutinised by investors. But headline yields often do not factor in capital expenditure (capex) requirements.
* Variables such as age, location and property type can influence how much capex is required to operate an asset.
https://www.businesstimes.com.sg/investing-wealth/real-estate-may-be-yielding-less-than-you-thought

South-east Asian data centres poised for fast growth
South-east Asia will be the fastest-growing region for co-location data centres in the next five years, with its market size expanding at a compound annual growth rate (CAGR) of 13 per cent between this year and 2024. The uptrend is underpinned by the rapid pace of digitalisation and surge in demand for cloud-based services across the region, which prompted giant companies such as Google, Alibaba Group and Amazon…
https://www.straitstimes.com/business/invest/s-e-asian-data-centres-poised-for-fast-growth

Criterion for new HDB grants
The applicable housing grants are determined at the point of application for a flat (Qualifying for new HDB grants, by Mr Yeo Shuan Chee, Sept 13). As changes to government schemes are not applied retrospectively, the Enhanced CPF Housing Grant will apply only to new flat applications from Sept 11.
https://www.straitstimes.com/forum/letters-in-print/criterion-for-new-hdb-grants