DAILY NEWS

Daily News – 25 February 2016

Singapore Economy

Financial markets’ impact on real economy fairly limited: government
Singapore’s growth outlook for the year remains intact and the banking system is not in a crisis, the government said on Wednesday – even as it flagged a slew of risks to economic growth. Despite a softening in the global economic outlook since the start of the year, the Ministry of Trade and Industry (MTI) maintained its 2016 growth forecast at a modest 1-3 per cent – with the caveat that this is “barring the full materialisation of downside risks”.
http://www.businesstimes.com.sg/government-economy/financial-markets-impact-on-real-economy-fairly-limited-government

2% growth last year, with gloomy outlook for 2016
The Singapore economy grew at a modest pace last year, but things could take a turn for the worse this year, with an increasingly bleak outlook. Risks to growth are rising, with the global economic outlook growing gloomier since the start of the year, the Ministry of Trade and Industry (MTI) said yesterday.
http://www.straitstimes.com/business/economy/2-growth-last-year-with-gloomy-outlook-for-2016?login=true

Singapore Real Estate

Major Japanese bank in advanced talks for space in Marina One
Despite a generally quiet leasing market, there has been buzz about two big transactions involving major players. BT understands that The Bank of Tokyo-Mitsubishi UFJ (BTMU) is in advanced discussions to lease about 140,000 square feet of office space at Marina One. It will be moving out of Republic Plaza, where it is the anchor tenant and also one of the oldest in the building, occupying about 150,000 sq ft.
http://www.businesstimes.com.sg/real-estate/major-japanese-bank-in-advanced-talks-for-space-in-marina-one

9,000 flats in mature estates for this year
Half of all new public flats offered this year will be in mature estates, to help meet high demand for these locations. This means that around 9,000 Build-To-Order (BTO) flats will be launched in towns such as Ang Mo Kio, Bedok and Bukit Merah, where amenities and transport nodes are usually better developed.
http://www.straitstimes.com/singapore/housing/9000-flats-in-mature-estates-for-this-year?login=true
http://www.channelnewsasia.com/news/singapore/about-half-of-hdb-flats/2544592.html
http://www.todayonline.com/singapore/about-half-hdb-flats-be-launched-mature-towns-year-lawrence-wong

Bidadari flats hot property in HDB’s latest sales exercise
Within a day of their launch, five-room and multi-generation flats in Bidadari have become the hottest properties in the Housing Board’s latest sales exercise. There were already 408 applicants vying for just 236 such flats as of 5pm yesterday – an application rate of 1.7.
http://www.straitstimes.com/singapore/housing/bidadari-flats-hot-property-in-hdbs-latest-sales-exercise?login=true&paywall-error-type=concurrentLimitExceeded

S$1,030-1,050 psf average price for The Wisteria
The Wisteria, at the corner of Yishun Avenue 4 and Yishun Ring Road, will be launched soon. Half or 108 of the project’s 216 residential units will be offered in the initial launch at an average price of S$1,030-1,050 per square foot (after a 5 per cent early bird discount). The preview starts this Saturday (Feb 27) with sales slated to begin a fortnight later, on March 12.
http://www.businesstimes.com.sg/real-estate/s1030-1050-psf-average-price-for-the-wisteria

Overwhelming demand for larger flats in Bidadari estate
The first batch of new flats launched this year by the Housing & Development Board (HDB) has again seen an over-subscription for the larger flats in the popular Bidadari area. This followed an overwhelming response for the first build-to-order (BTO) flats in Bidadari released in November.
http://www.businesstimes.com.sg/real-estate/overwhelming-demand-for-larger-flats-in-bidadari-estate

Parts of heritage site Palmer House to be cleared for MRT
Parts of a heritage site in Tanjong Pagar that dates back to Singapore’s colonial era are set to make way for the future Prince Edward MRT station. A knoll that houses the remnants of six Parsi graves will be levelled, along with , likely built in 1956, and part of the Bestway Building – the former Singapore Polytechnic.
http://www.straitstimes.com/singapore/parts-of-heritage-site-palmer-house-to-be-cleared-for-mrt?login=true

Companies’ Brief

Business leader Sia Yong, 90, dies after heart attack
Retired business leader Sia Yong, who founded the Singa-Sino Friendship Association to promote ties between the peoples of Singapore and China, was on his way to the Tanglin Club to have his daily glass of whisky last Saturday when he had a heart attack. He died later in hospital. He was 90.
http://www.straitstimes.com/singapore/business-leader-sia-yong-90-dies-after-heart-attack?login=true

GIC to pump $546m into Indonesian retail giant
Singapore sovereign wealth fund GIC is set to invest 5.2 trillion rupiah (S$546 million) in Indonesia’s PT Trans Retail, which operates hypermarkets, supermarkets and cash and carry stores, under the Carrefour and TranSmart brands. Known previously as Carrefour Indonesia, the firm was established in 1998 and is the main retail arm of Indonesian conglomerate CT Corp.
http://www.straitstimes.com/business/invest/gic-to-pump-546m-into-indonesian-retail-giant

Property firm Cedar Strategic starts anew on road to growth
Real estate firm Cedar Strategic is slowly getting back on track as it emerges from debilitating governance issues and failing businesses. Having cleaned up its internal mess, the Catalist-listed firm plans to grow its once depleted earnings and capital with a view to the resumption in trading of its shares – suspended since April last year.
http://www.straitstimes.com/business/property-firm-cedar-strategic-starts-anew-on-road-to-growth

Views, Reviews & Forum

Are ECs a better long-term investment than condos?
Prices of executive condominiums (ECs) do catch up with private condos after the initial five-year minimum occupation period (MOP), and even more so when they are fully privatised 10 years after purchase. A study by OrangeTee has found that the average price gap between new condos and ECs starts at around 20 per cent, due to the sales restrictions that apply to ECs, as well as their lower land and construction costs.
http://www.businesstimes.com.sg/real-estate/are-ecs-a-better-long-term-investment-than-condos

Don’t write off more affordable BTO flats in new HDB estates, say experts
With half of the new flats this year slated to be built in mature estates, home buyers are cheering the higher chance of getting a home in a coveted location. But some property experts urged young couples not to write off a home in a new estate, which could be friendlier to their budgets than one in a mature neighbourhood.
http://www.straitstimes.com/singapore/housing/dont-write-off-more-affordable-bto-flats-in-new-hdb-estates-say-experts?login=true