DAILY NEWS

Daily News – 24th July 2019

Singapore Real Estate

Singapore CBD Grade A office rents hit 10-year high: Colliers
Grade A office rents in Singapore’s central business district (CBD) rose for the eighth straight quarter, hitting a 10-year high at S$9.93 per square foot per month (psf pm) in the second quarter. This is up 12.6 per cent from a year ago, according to Colliers Research data. Out of the six office micro-markets tracked, rental growth remained the strongest in the Beach Road or Bugis area, rising 18 per cent…
https://www.businesstimes.com.sg/real-estate/singapore-cbd-grade-a-office-rents-hit-10-year-high-colliers-0
https://www.straitstimes.com/business/property/grade-a-office-rents-in-spore-cbd-hit-10-year-high-colliers

4-bedroom unit at Sculptura Ardmore sold for S$4,687 psf
A four-bedroom apartment at SC Global Developments’ Sculptura Ardmore development has been sold at S$4,687 per square foot (psf), one of only 11 transactions of private non-landed residential units here to have crossed S$4,500 psf in the past five years, based on caveats data. The absolute price for the unit, which is above the 20th floor of the 36-storey, completed freehold project, is S$16.8 million.
https://www.businesstimes.com.sg/real-estate/4-bedroom-unit-at-sculptura-ardmore-sold-for-s4687-psf

Lakepoint condo up for collective sale with S$640m reserve price
Lakepoint Condominium near Jurong Lake District, positioned as Singapore’s second Central Business District, has been put up for collective sale via tender with a reserve price of S$640 million, its joint marketing agents SLP International Property Consultants and Strata AMC said on Tuesday. The property is a five-minute walk from Lakeside MRT station, and is close to shopping malls such as JEM, Westgate, IMM and JCube. It is also near Jurong Innovation Districtand Jurong Industrial Park.
https://www.businesstimes.com.sg/real-estate/lakepoint-condo-up-for-collective-sale-with-s640m-reserve-price-0
https://www.straitstimes.com/business/property/lakepoint-condo-in-jurong-up-for-collective-sale-with-640m-reserve-price

4 burnt shophouses in Geylang for sale with S$14m guide price
A row of four freehold, adjoining conversation shophouses – which caught fire earlier this year – in Geylang have been launched for sale via expression of interest, with a guide price of S$14 million, property consultancy Knight Frank Singapore said on Tuesday. In March, a massive fire broke out early in the morning to fully engulf five of seven double-storey shophouses along the row.
https://www.businesstimes.com.sg/real-estate/4-burnt-shophouses-in-geylang-for-sale-with-s14m-guide-price
https://www.straitstimes.com/business/property/row-of-4-burnt-shophouses-in-geylang-selling-at-14m

Oei Hong Leong wins long-running court fight over redevelopment of Vancouver property
Singapore businessman Oei Hong Leong has won a long-running court battle involving one of Canada’s largest property developers and a commercial site in the heart of Vancouver. The case, which began in October 2015, pitted Mr Oei against Concord Pacific Acquisitions, which is part of Concord Pacific Group.
https://www.businesstimes.com.sg/real-estate/oei-hong-leong-wins-long-running-court-fight-over-redevelopment-of-vancouver-property
https://www.straitstimes.com/business/singapore-tycoon-oei-hong-leong-wins-war-of-titans-over-canada-property

Singapore Economy

Services ‘not strong enough’ to mitigate Singapore economy’s slowdown
With manufacturing caught in the doldrums, Singapore’s services sector may seem like a lifeline for optimists hoping for economic growth. But it is unlikely that services – which fed nearly 70 per cent of last year’s nominal gross domestic product (GDP) – could pull enough weight to shelter the Republic from the ongoing pangs of a slowdown, economists told The Business Times.
https://www.businesstimes.com.sg/government-economy/services-not-strong-enough-to-mitigate-singapore-economys-slowdown

Singapore’s core inflation hits two-year low in June
A fall in inflation last month – by one measure to levels not seen for more than two years – has heightened expectations that policy changes loom for the Singdollar in October. Core inflation – which strips out private road transport and accommodation costs to give a more accurate snapshot of price movements – came in at 1.2 per cent last month. It was down from 1.3 per cent in May and the lowest since March 2017.
https://www.straitstimes.com/business/economy/singapores-core-inflation-hits-two-year-low-in-june
https://www.businesstimes.com.sg/infographics/headline-core-inflation-ease-in-june
https://www.channelnewsasia.com/news/singapore/singapore-core-inflation-cpi-june-11745840
https://www.todayonline.com/singapore/singapore-core-inflation-hits-over-2-year-low-raising-bets-policy-easing

Companies’ Brief

CapitaLand Mall Trust raises Q2 DPU by 3.9% on higher Westgate contribution
Capitaland Mall Trust (CMT) raised its second-quarter distribution per unit (DPU) by 3.9 per cent on the back of full contribution from recently acquired Westgate mall. DPU for the three months ended June 30 will be 2.92 Singapore cents, from 2.81 cents for the year-ago period, according to first-half financial results released by Singapore’s largest mall owner on Tuesday.
https://www.businesstimes.com.sg/companies-markets/capitaland-mall-trust-raises-q2-dpu-by-39-on-higher-westgate-contribution
https://www.straitstimes.com/business/companies-markets/capitaland-mall-trust-sees-39-rise-in-q2-dpu-0

FCT’s Q3 DPU slips 1.7% on expanded unit base
Contributions from Frasers Centrepoint Trust (FCT)’s holdings in associates PGIM Real Estate AsiaRetail Fund (PGIM ARF) helped to shore up third-quarter earnings for the retail landlord, as it faced lower net property income, higher borrowing costs and an expanded unit base. Distribution per unit (DPU) edged down 1.7 per cent to three Singapore cents from 3.053 cents in the preceding year…
https://www.businesstimes.com.sg/companies-markets/fcts-q3-dpu-slips-17-on-expanded-unit-base

Frasers Property unit to issue S$200m fixed-rate subordinated perps above par
Frasers Property’s wholly owned subsidiary, Frasers Property Treasury (FPT), is proposing to issue S$200 million of fixed-rate subordinated perpetual securities at above par, according to a bourse filing late on Tuesday night. These will be consolidated with the earlier S$400 million 4.98 per cent subordinated perps issued on April 11 to form a single series, under the group’s S$5 billion multicurrency programme.
https://www.businesstimes.com.sg/companies-markets/frasers-property-unit-to-issue-s200m-fixed-rate-subordinated-perps-above-par
https://www.straitstimes.com/business/companies-markets/frasers-property-unit-to-issue-200m-fixed-rate-subordinated-perps-above

Mapletree Industrial Trust’s Q1 DPU rises 3.3%
Mapletree Industrial Trust’s (MIT) distribution per unit for the fiscal first quarter rose 3.3 per cent to 3.1 Singapore cents from three cents a year ago, according to its financial results posted on Tuesday. Net property income (NPI) for the three months ended June 30 rose 12.2 per cent to S$77.9 million, compared with S$69.5 million in the first quarter of the previous year. MIT’s manager attributed the performance…
https://www.businesstimes.com.sg/companies-markets/mapletree-industrial-trusts-q1-dpu-rises-33

Fragrance Group to launch Jervois Treasures in Tanglin at prices starting from S$1.37m
Mainboard-listed property developer Fragrance Group will be launching the sale of its Jervois Treasures condo in prime District 10 on Saturday with prices starting from S$1.37 million for a one-bedroom apartment. Located at Jervois Road in the Tanglin area, the five-storey luxury development has 36 units, comprising one- to three-bedroom units of 506 to 1,432 sq ft.
https://www.businesstimes.com.sg/companies-markets/fragrance-group-to-launch-jervois-treasures-in-tanglin-at-prices-starting-from
https://www.straitstimes.com/business/property/fragrance-group-to-launch-jervois-treasures-in-tanglin-at-prices-starting-from

Winners set pace for corporate governance excellence
The Singapore Corporate Awards (SCA) 2019 on Tuesday honoured 38 companies and six individuals for leading the way in corporate governance and shareholder communication. The CapitaLand group of companies, DBS Group, Keppel Corporation group of companies, United Overseas group of companies led the winners with multiple awards, while the Frasers group of companies, OCBC, Tuan Sing, Frencken…
https://www.businesstimes.com.sg/companies-markets/singapore-corporate-awards-2019/winners-set-pace-for-corporate-governance

Co-living firm Hmlet raises S$40m; opens 150-room Tg Pagar facility
Singapore-based co-living company Hmlet has raised US$40 million in a Series B round, which will allow it to continue growing across gateway cities in Asia, it said in a media statement on Tuesday. The round was led by Burda Principal Investments, with participation from existing investor Sequoia India and new investors Mitsubishi Estate Co, Reinventure Group and angel investors.
https://www.businesstimes.com.sg/garage/co-living-firm-hmlet-raises-s40m-opens-150-room-tg-pagar-facility
https://www.straitstimes.com/business/property/co-living-firm-raises-55m-to-boost-growth-in-asia

Views, Reviews, Forum & Others

HDB working on building cooler flats with more smart solutions
As temperatures rise, the Housing Board is seeking to turn out cooler homes with integrated smart systems that reduce the need for residents to turn on the air-conditioner. It has teamed up with German industrial giant Evonik to study incorporating a high-performance insulation material into the roof panels of blocks of flats to reduce heat gain and transmission. The aim is to cut indoor temperatures by 2 deg C.
https://www.straitstimes.com/singapore/hdb-working-on-building-cooler-flats-with-more-smart-solutions
https://www.straitstimes.com/opinion/st-editorial/fires-in-hdb-homes-are-alarming
https://www.channelnewsasia.com/news/singapore/hdb-bto-cooler-homes-3d-printing-flats-design-11745692
https://www.todayonline.com/singapore/hdb-aims-smarter-more-temperature-resilient-flats-research-collaborations

Private property market holding up despite economic slowdown
Singapore — Despite a dampened economic outlook, the private property market was in rude health in the second quarter, with the transaction volume of new homes and prices both rising. Nevertheless, with Singapore’s economic growth set to slow in the second half of the year, analysts were divided on how the chips will fall for the property market — given that the global uncertainty has already seen an influx of foreign investors snapping up homes here in recent months.
https://www.todayonline.com/singapore/private-property-market-holding-despite-economic-slowdown