DAILY NEWS

Daily News – 23rd October 2018

Top Story

Cooling measures ‘dampened developers’ sentiment’
Property-cooling measures announced in July have dampened sentiment towards the Singapore property market, says the latest quarterly Real Estate Sentiment Index (RESI), which assesses perceptions and expectations of real estate development and market conditions in Singapore from the developers’ standpoint. The composite index, comprising a Current Sentiment Index and a Future Sentiment Index, fell sharply to 4.0 in the third quarter from 6.6 in the second quarter on the back of July’s additional buyer’s stamp duty (ABSD) measures.
https://www.businesstimes.com.sg/real-estate/cooling-measures-dampened-developers-sentiment
https://www.straitstimes.com/business/property/property-sentiment-hit-by-cooling-measures-report

Singapore Economy

Global growth outlook dims amid concerns over trade war, tightening financial conditions
The outlook for global growth in 2019 has dimmed for the first time, according to Reuters polls of economists who said that the US-China trade war and tightening financial conditions would trigger the next downturn. At the start of 2018, optimism about a robust global economic outlook was almost unanimous among respondents.
https://www.businesstimes.com.sg/government-economy/global-growth-outlook-dims-amid-concerns-over-trade-war-tightening-financial

Expect a ‘3 plus and minus 5%’ model of future growth
Instead of the “5 plus and minus 1” per cent growth of yesteryear, Singapore’s economy will likely enter a phase of “3 plus and minus 5” per cent growth, arising from technological disruption and global trade tensions, said Minister for Trade and Industry Chan Chun Sing.
https://www.businesstimes.com.sg/government-economy/expect-a-3-plus-and-minus-5-model-of-future-growth
https://www.straitstimes.com/business/prepare-for-wider-growth-range-and-its-impact-chan-chun-sing

Singapore must help all to get good start: PM
Singapore has a meritocratic system, but it has to ensure a level playing field and help everyone get to a good starting point so that they can succeed regardless of family background, said Prime Minister Lee Hsien Loong. Speaking at a closed-door dialogue this month, PM Lee stressed the importance of reducing income inequality and safeguarding social mobility.
https://www.straitstimes.com/singapore/spore-must-help-all-to-get-good-start-pm
https://www.straitstimes.com/politics/spore-must-ensure-no-one-is-left-behind-as-country-progresses-pm

Emerging markets more upbeat about global trade: Survey
Business professionals in developing countries are surprisingly more optimistic about the global trade outlook than those in the developed world, according to a new survey. It found that 63 per cent of professionals from emerging markets say they believe there will be more global trade in five years’ time, a view seemingly at odds with rising protectionism and trade tensions.
https://www.straitstimes.com/business/economy/emerging-markets-more-upbeat-about-global-trade-survey

Singapore Real Estate

BuildTech showcases innovative tech for construction sector
Can robots build cities? Increasingly so, it appears. Singapore-based Japanese construction firm Kajima uses its Mighty Hand robot to lift heavy materials such as concrete and glass to assemble walls in Japan, under human supervision. South Korean company Roboprint, which has a subsidiary in Singapore, makes robots that can paint the walls of high-rise buildings, making it safer for workers.
https://www.businesstimes.com.sg/sme/buildtech-showcases-innovative-tech-for-construction-sector
https://www.straitstimes.com/business/showcasing-innovative-tech-for-building-sector

HDB’s annual deficit grows by 44 per cent to $1.7b
More new flats were sold and more existing flats underwent upgrading, contributing partly to a 44.4 per cent spike in the Housing Board’s (HDB) net deficit in the last financial year. In its annual report released yesterday, the HDB incurred an overall deficit of $1.717 billion in the financial year of 2017/2018, up from $1.189 billion. The report also showed an increase in the deficit for HDB’s home ownership programme, from $861 million previously to $1.383 billion in the last financial year.
https://www.straitstimes.com/singapore/housing/hdbs-annual-deficit-grows-by-44-per-cent-to-17b

Car-Free Sunday to stretch over 3 days
The Car-Free Sunday event will stretch over three days this month to allow more to experience parts of the city centre unclogged by traffic, with Singapore’s first Car-Free Weekend event. It began in February 2016, as part of a six-month trial in line with the Republic’s car-lite initiatives. It has since become a regular affair. Last held in July, Car-Free Sunday is usually held on the last Sunday of the month. This time, the event will start on Friday, with the closure of Telok Ayer Street and Amoy Street between 11am and 3pm.
https://www.straitstimes.com/singapore/transport/car-free-sunday-to-stretch-over-3-days

Companies’ Brief

Mapletree Logistics Trust posts higher Q2 DPU at 1.958 cents
Distribution per unit for Mapletree Logistics Trust edged up to 1.958 Singapore cents from 1.887 Singapore cents for the second quarter ended Sept 30. That came as Q2 income available for distribution jumped 32.5 per cent to S$63.9 million from the year-ago period. Distribution payment will be made on Nov 1.
https://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trust-posts-higher-q2-dpu-at-1958-cents

Keppel-KBS US Reit to raise US$93.1m from 295-for-1,000 rights issue
The manager of Keppel-KBS US Reit (real estate investment trust) announced late on Monday night the launch of an underwritten and renounceable rights issue to raise gross proceeds of around US$93.1 million. Both Keppel Capital Investment Holdings and KBS SOR Properties will take up their full entitlement of the rights units, but the Reit manager will not be subscribing for its pro rata share of the rights units.
https://www.businesstimes.com.sg/companies-markets/keppel-kbs-us-reit-to-raise-us931m-from-295-for-1000-rights-issue
https://www.straitstimes.com/business/companies-markets/keppel-kbs-us-reit-to-raise-us931m-from-295-for-1000-rights-issue

VIEWS, REVIEWS, FORUM & Others

Good move to curb growth in small flats
The Real Estate Developers’ Association of Singapore (Redas) asserted that developers are building fewer smaller flats as the demand for these has reduced over the years (Affordability for home buyers may be affected as developers have to build bigger units: Redas; Oct 18). Yet, a recent property launch along Grange Road comprising only small units of less than 65 sq m sold like hot cakes.
https://www.straitstimes.com/forum/letters-in-print/good-move-to-curb-growth-in-small-flats

Hope for more liveable, affordable homes
I find the comments from the Real Estate Developers’ Association of Singapore (Redas) interesting (New guidelines may price some buyers out of market: Redas; Oct 19). I believe the whole idea of setting the minimum average size of condominium apartments is to curb rising property prices and the miniaturisation of homes.
https://www.straitstimes.com/forum/letters-in-print/hope-for-more-liveable-affordable-homes