DAILY NEWS

Daily News – 23rd, 24th and 25th February 2019

Singapore Real Estate

$6m programme launched to fast-track building technology projects
A $6 million accelerator programme was launched yesterday to fast-track development and commercialisation of building technology, especially innovations that do not get past the research stage. The programme will help firms and innovators find funding and development support to ultimately become real-world projects. National Development Minister Lawrence Wong, who launched the Built Environment Accelerate to Market Programme at Capital Tower in Robinson Road, said universities have built up expertise in key areas such as materials science and engineering.
https://www.straitstimes.com/business/companies-markets/6m-programme-launched-to-fast-track-building-technology-projects

S-Reits stand to gain this year as markets turn in their favour
SINGAPORE-listed real estate investment trusts (S-Reits) could soon spring back to life spurred by more new listings and acquisitions amid dovish signals from the US Federal Reserve, global macro uncertainties and aversion to risky assets. These factors in turn, could make it ripe for investors to take cover in S-Reits after the sector spent much of last year dampened by the rising interest rate environment, say experts.
https://www.businesstimes.com.sg/real-estate/s-reits-stand-to-gain-this-year-as-markets-turn-in-their-favour

Companies’ Brief

Razer unveils Echo Base, a startup with mission to disrupt traditional real estate
Gaming company Razer is poised to shake up traditional real estate development with a new startup that aims to incorporate artificial intelligence, the Internet of Things, and other next-generation technologies in real estate projects. Named Echo Base, the Singapore-based digital real estate startup was announced on Friday (Feb 22) as Razer marked the groundbreaking of its new South-east Asian headquarters in one-north, which is expected to be ready by the middle of next year.
https://www.businesstimes.com.sg/technology/razer-unveils-echo-base-a-startup-with-mission-to-disrupt-traditional-real-estate
https://www.straitstimes.com/business/property/tech-focused-real-estate-start-up-echo-base-backed-by-razer-ceo-tan-min-liang

UIC posts higher FY18 profit on fair-value gains
The full-year profit for property group United Industrial Corp (UIC) for the year ended last Dec 31 rose five per cent year on year to S$313.37 million, strengthened partly by fair-value gains on investment properties. This was despite its revenue slumping 49 per cent to S$656.97 million on the back of lower sales from property trading. Revenue from property trading was 89 per cent lower at S$87 million as the group’s development projects were completed and “substantially sold” in 2017.
https://www.businesstimes.com.sg/companies-markets/uic-posts-higher-fy18-profit-on-fair-value-gains

LMIRT slashes Q4 payout
Lippo Malls Indonesia Retail Trust (LMIRT)’s fourth-quarter distribution per unit (DPU) was down amid what the manager called “challenging conditions”, in results out on Friday. It will pay 0.3 Singapore cent per unit for the three months to Dec 31, 2018, against 0.79 Singapore cent the year before. The trust’s full-year DPU is 2.05 Singapore cents, down from 3.44 Singapore cents before.
https://www.businesstimes.com.sg/companies-markets/lmirt-slashes-q4-payout

Views, Reviews, Forum & Others

Budget 2019: A step closer to Smart Nation
Last Monday’s Budget was aimed at strengthening the capabilities of both corporates and individuals as the country moves towards an innovation-led economy in the next decade. There were no specific announcements on real estate. Instead, Finance Minister Heng Swee Keat focused heavily on the fundamentals of Singapore’s growth story.
https://www.straitstimes.com/business/property/budget-2019-a-step-closer-to-smart-nation

Online property auctions: a new norm for transactions?
The e-commerce market in Singapore is growing fast. According to Statista Portal, Singapore’s e-commerce revenue will total US$3.74 billion by end-2018, and with an expected annual growth rate of 10.1 per cent, is likely to result in a market volume of US$5.5 billion by 2022. To date, electronics and media form the largest share of the e-commerce pie.
https://www.businesstimes.com.sg/real-estate/online-property-auctions-a-new-norm-for-transactions

Home sweet home is also a wise investment
Saying that civil servant Sebastian Tan had it tough growing up doesn’t come near to describing the hardship of his childhood. Having three decent meals a day was a luxury for him. His home was a cramped three-room HDB flat in Queen’s Crescent that he shared with 10 or 11 others at times. He was so malnourished then that he was given cartons of milk in the morning in school.
https://www.straitstimes.com/business/invest/home-sweet-home-is-also-a-wise-investment

Renewing HDB estates in financially viable way
Since the announcement of the Voluntary Early Redevelopment Scheme (Vers) last year, there has been public interest in its design and implementation. This complex long-term undertaking requires significant public resources, and we should take time to carefully work through the details to ensure a fiscally sustainable scheme.
https://www.straitstimes.com/forum/letters-in-print/renewing-hdb-estates-in-financially-viable-way

Older buyers of 2-room flexi flats pick short lease
About nine in 10 older buyers of HDB’s two-room flexi flats have chosen shorter leases, an option that frees up more cash for them. The lease lengths range from 15 to 45 years. Only those aged 55 and above qualify to take up this option.
https://www.straitstimes.com/singapore/housing/older-buyers-of-2-room-flexi-flats-pick-short-lease