S’pore inflation negative for 21st straight month, but core inflation holds steady
Singapore may have recorded its 21st straight month of negative inflation in July – its longest stretch of falling prices on record – but economists continue to stress that the country is not in a deflationary spiral. This is because the sub-zero headline reading – at -0.7 per cent in July from a year ago, said the Department of Statistics (DOS) – has not been marked by broad-based and persistent price declines across the economy. Instead, economists emphasise that it has been “the usual suspects” weighing overall inflation down: car and accommodation costs, as well as low oil prices.
3-month Sibor falls to 12-month low amid Singdollar strength
Local interest rates are falling as the strong Singapore dollar is attracting inflows. The key three-month Sibor (Singapore interbank offered rate) used to price home loans is at a 12-month low of 0.87192 per cent on Tuesday, a level it reached on Aug 19. The three-month Sibor is now some 30 per cent lower than the year’s high of 1.254 per cent on Jan 19. The three-month SOR (swap offer rate), a benchmark for commercial loans, has fallen even more; at 0.75448 per cent on Monday, it has plunged almost 60 per cent from its January high of 1.76235 per cent.
Singapore Real Estate
Sengkang EC site draws land-hungry developers
Land-hungry residential developers made a beeline for an executive condominium (EC) site in Anchorvale Lane, Sengkang, on Tuesday. The site drew 16 bids, a whopping turnout not seen for an EC site since July 2013. The top bid of S$355.07 per square foot per plot ratio (psf ppr) from a Hoi Hup Realty-Sunway Developments tie-up exceeded all expectations and is the highest offer for an EC site since a Choa Chu Kang Drive plot (coming up as Wardervale) fetched S$361 psf ppr in September 2014.
Hougang project most popular in August BTO exercise
Contrary to expectations, new Housing Board flats in Tampines were not the top draw in this month’s Build-to-Order (BTO) launch, which closed at midnight. Instead, Buangkok Woods in Hougang was the most popular project, with 4.4 applicants for each three-room flat and 4.3 for each four-room flat as of 5pm yesterday. There were 1.3 to 2.3 applicants for each available unit in Tampines, depending on flat type. This was also generally lower than application rates in the non-mature estates of Yishun and Sembawang.
Surge in demand for Tampines flats in latest BTO exercise
After a relatively slow start, the Build-to-Order (BTO) flats in Tampines launched last week have enjoyed a surge in interest, with all flat types oversubscribed as of 5pm on Tuesday (Aug 23), hours before the exercise ended at midnight. In particular, the 5-room/3-Generation flats saw strong interest, with 2,022 applications for the 879 flats on offer, or a subscription rate of 2.3. The demand was powered by second-time applicants, with 15 applications for every unit available to them.
Former HUDC estate could be put up for collective sale
Another privatised former HUDC estate could go on the market soon following the landmark sale of Bishan’s Shunfu Ville for $638 million in May. Sources say owners of the 175-unit Raintree Gardens in Potong Pasir Avenue 1 have got the minimum consent level required for the site to be launched for sale. The 201,405 sq ft plot, next to Kallang River and near Potong Pasir MRT station, has just over 70 years of lease left. It is zoned for residential use with a 2.8 plot ratio.
Decent job with queries on property
Built to answer questions about the Singapore residential property scene, such as market valuations and plot ratio, Sevi is found on the Singapore Real Estate Exchange website. The chatbot is relatively sluggish with its replies when used at the website, but it is faster when used via Facebook Messenger.
CapitaLand to roll out e-waste recycling bins at 10 malls in Singapore
CapitaLand is rolling out electronic waste (e-waste) recycling bins across 10 of its shopping malls in Singapore to encourage shoppers and tenants to adopt e-waste recycling, the group said in a filing to the bourse operator on Tuesday. The developer’s move to ramp up its e-waste recycling efforts is a natural progression of its waste-recycling journey – which started in 2008 with recycling bins for paper, metal and plastic in all its Singapore properties – making it the largest mall network with such an initiative here.
Ley Choon wins contract, updates debt revamp
Along with its announcement of a new contract win by a subsidiary on Tuesday, construction firm Ley Choon Group gave an update on what it is doing to pare its debt. Ley Choon and its lenders have on June 8 agreed on and signed a term sheet setting out the key terms of the restructuring of the group’s debt obligations. This will subsequently be encapsulated in a debt restructuring agreement within 90 days.
Views, Reviews & Forum
Reits still the flavour of the season
Real estate investment trusts (Reits) will likely remain the flavour of the season as oversupply and rent revenue concerns appear priced in while interest rates are likely to stay low for longer. OCBC Investment Research said in a report yesterday that it remains overweight on the sector, and has added SPH Reit and Mapletree Greater China Commercial Trust to its list of top picks.
Global Economy & Global Real Estate
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London boom to end next year on Brexit
US new home sales race to near nine-year high in July
US$ dips as focus shifts to Yellen’s Friday speech
Housing sector lifts U.S., European stocks; oil pares gains
US retailers’ heavy discounting hurting luxury brands
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Local & Overseas Real Estate – Full Article