The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 25th January 2018

Top Story

Property market sentiment hits a high in Q4
Overall property market sentiment hit a high in the fourth quarter of last year, amid rising confidence in the market recovery in the coming six months.  This is according to the National University of Singapore and developers body Redas’ Real Estate Sentiment Index (RESI), which posted a 6.9 reading for its composite sentiment index, which takes into account current and future sentiment. This was up from 6.6 in the preceding quarter and surpasses the previous high of 6.8 in Q1 2010, when the index series was minted.

Singapore Economy

Wealth taxes may hit the rich; but other factors can mitigate impact
While the average worker is wringing his hands in anticipation of a GST hike, the possibility of new wealth taxes is also not lost on the rich.  Though wealth managers are split on whether wealth taxes – for example, tax on capital gains and inheritance – will dent Singapore’s status as Asia’s private banking hub, they say some family offices and rich clients are watching closely what next month’s Budget might have in store for them.

Professional services sector roadmap aims to create 5,500 new jobs a year for PMETs
A new roadmap to help boost the professional services sector aims to generate 5,500 new jobs for professionals, managers, executives and technicians (PMETs) every year until 2020.  The sector’s Industry Transformation Map (ITM) will also equip workers with skills in high-growth areas such as data science, analytics and artificial intelligence.

Singapore can play key role in Belt and Road: Chun Sing
Singapore can play a critical role in the China-led Belt and Road Initiative (BRI) as a global financial hub, providing the banking and legal support for projects as well as facilitating in the “software transfer” to ensure projects are sustainable once completed.

Singapore Real Estate

A new way of reining in property price increases?
Heated land sales have prompted Singapore’s central bank to scrutinise bank financing for property development more closely through a new survey of banks last month. The Monetary Authority of Singapore (MAS) is said to have sought information from banks on their exposures and details of loan facilities granted for each project, such as key covenants and loan-to-value (LTV) ratios.

Mega sites raising stakes in collective sale craze
Home owners are taking Singapore’s latest collective sale craze to a new level, with mega developments – sitting on sites close to or over one million sq ft each – jumping onto the bandwagon.  Owners of Mandarin Gardens, a 99-year condominium on a one million sq ft plot off East Coast Park, have given the green light to kick-start its collective sale process.

More help on upkeep of Singapore’s heritage buildings
Maintaining a heritage building is a lot harder than just slapping plaster and paint on the walls.  Take the 1860s St Andrew’s Cathedral in City Hall for instance.  To concoct and develop the appropriate lime-based plaster to repair the place of worship, a trial formula had to be first applied to a small area in the cathedral.

TA Realty puts 12onShan in Novena up for sale
TA Realty, an indirect subsidiary of TA Corporation, is putting up its freehold serviced apartment project in Novena for sale by tender.  It has obtained written permission from the Urban Redevelopment Authority (URA) in November last year to operate 12onShan as serviced apartments.  The development is valued at S$107 million on a completed basis and is expected to obtain its temporary occupation permit (TOP) in the second quarter, said Knight Frank Singapore and Savills Singapore, the marketing agents for the tender.

Companies’ Brief

CapitaLand Mall Trust grows DPU despite tough market conditions
Singapore’s first and largest retail Reit has put on a brave face amid the tougher bricks-and-mortar market.  CapitaLand Mall Trust will pay out a fourth-quarter distribution per unit (DPU) of 2.9 Singapore cents on Feb 28, the manager announced on Wednesday.  This was up by 0.7 per cent on the previous year, and came on a distributable income of S$102.9 million for the three months to Dec 31, 2017.

CCT reports 13% fall in DPU for Q4 on lower net property income, rights issue
CapitaLand Commercial Trust (CCT), which earns income through commercial properties such as Capital Tower and Six Battery Road, on Thursday reported a 13 per cent fall in its distribution per unit (DPU) for its fiscal fourth quarter.  DPU for the three months ended Dec 31, 2017 stood at 2.08 Singapore cents, down from 2.39 Singapore cents from a year ago.

Higher rents boost Mapletree Commercial’s Q3
Retail landlord Mapletree Commercial Trust (MCT) on Wednesday posted a 1.3 per cent increase in income available for distribution to S$66.5 million for its third quarter ended Dec 31, 2017.  Distribution per unit (DPU) also rose to 2.3 Singapore cents, up from 2.28 Singapore cents a year ago. This will be paid on Feb 28; the books closure date is Feb 1.

FHT’s Q1 FY18 DPS dips slightly on higher stapled security base
Frasers Hospitality Trust (FHT) reported a 1.1 per cent year on year dip in distribution per stapled security to 1.3107 Singapore cents for the first quarter ended Dec 31, 2017, owing to a higher stapled security base.  FHT is a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust.

Frasers Commercial Trust prices upsized S$100m placement of units at top end of S$1.48
Frasers Commercial Trust (FCOT) has priced an upsized S$100 million placement of units at S$1.48 apiece, the top end of its indicated price range.  The commercial property landlord had planned to issue at least S$80 million of units between S$1.44 and S$1.48 per unit, with an over-allotment option of at least S$17.8 million. DBS bank and Merrill Lynch (Singapore) were joint book runners for the private placement.

Suntec Reit’s DPU up 0.31% for Q4
Lower revenue from Suntec Singapore and a fall in office rentals dented retail and commercial owner Suntec Real Estate Investment Trust’s (Suntec Reit) earnings for its fourth quarter.  The distribution per unit (DPU) for the fourth quarter rose 0.31 per cent to 2.604 Singapore cents from 2.596 Singapore cents for the preceding year, the group said in a Singapore Exchange filing on Wednesday morning.

CDL’s M&C offer yet to hit conditional acceptance threshold as deadline looms
City Developments Ltd (CDL) on Wednesday reported that the percentage of valid acceptances for its takeover offer of London-listed Millenium & Copthorne Hotels (M&C) is still shy of the conditional acceptance threshold.

Oxley unit prices S$150m 5.70% notes due in 2022 under US$1b note programme
A unit of Oxley Holdings has priced its S$150 million 5.70 per cent notes, which mature on Jan 31, 2022 under a US$1 billion guaranteed euro medium term note programme.  Under the programme, its subsidiary Oxley MTN may “issue medium term notes unconditionally and irrevocably guaranteed by the company”.

Views, Reviews & Forum

Challenges of regulating new industries and the future
New industries, new technology, new economy … new problems! Changes in business models and the fourth industrial revolution (4IR) are throwing up many challenges and opportunities for countries. At the centre of how driverless cars or new energy sources will develop is how they will be regulated.

Singapore should seize opportunities on free trade
Free trade made a strong comeback on the global scene this week.  The 11 countries that remain in the Trans-Pacific Partnership announced that a deal had been reached, one year after the United States unceremoniously pulled out.

Global Economy & Global Real Estate

US ‘strong dollar’ policy in question

Rates at some Trump hotels have dropped a year into his presidency

Super Bowl’s Minneapolis stadium brings a surge in development

Kushner Cos secures US$57m loan for troubled New Jersey towers

SoftBank leads US$865m investment in construction technology startup Katerra

Stamp duty cut no boon as UK home sales fall to 13-month low

Eurozone businesses start 2018 on decade high as work floods in

China likely to wield more soft power in coming decades

China Starts Experiment to Tame Its Wild Property Market

China to roll out new market-opening measures this year

Beijing to demolish 40 sq km of illegal structures

HNA Group seeks investors for Hong Kong property

Philippines building $3b administrative centre as ‘back-up city’

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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