DAILY NEWS

Daily News – 25 Oct 2019

Singapore Real Estate

URA private home price index up 1.3% q-o-q in Q3, higher than flash estimate rise of 0.9%
Singapore’s benchmark private residential property price index rose 1.3 per cent in the third quarter of 2019 over the second quarter, faster than the 0.9 per cent increase shown in the flash estimate released on Oct 1, according to the latest data from the Urban Redevelopment Authority (URA) on Friday. In Q2 this year, the index rose 1.5 per cent quarter on quarter.
https://www.businesstimes.com.sg/real-estate/flash-ura-private-home-price-index-up-13-q-o-q-in-q3higher-than-flash-estimate-rise-of

HDB resale prices inch up 0.1% in Q3 as number sold dips 0.2%
Prices of Housing Board resale flats rose by a marginal 0.1 per cent in the third quarter of 2019 compared to the second quarter. This came as the number of resale flats changing hands dipped slightly – by 0.2 per cent – from the previous three months, the latest public housing figures show.
https://www.businesstimes.com.sg/real-estate/hdb-resale-flat-prices-inch-up-01-in-q3-as-volume-dips-02
https://www.channelnewsasia.com/news/singapore/hdb-resale-transactions-dip-slightly-in-q3-as-prices-rise-12033220

Singapore office prices fall 3.9% q-o-q in Q3; vacancy rate eases to 10.6%: URA
Prices of office space in Singapore’s central region decreased by 3.9 per cent in the third quarter, compared with the 0.9 per cent increase in the previous quarter, according to the latest data from the Urban Redevelopment Authority (URA). URA’s rental index of office space in the central region declined by 0.6 per cent in Q3, versus a 1.3 per cent increase in the prior quarter.
https://www.businesstimes.com.sg/real-estate/singapore-office-prices-fall-39-q-o-q-in-q3-vacancy-rates-ease-to-106-ura
https://www.straitstimes.com/business/property/singapore-office-prices-drop-39-in-q3-while-rents-rents-slip-06-ura-data

Singapore retail rents up 2.3% q-o-q in Q3; vacancy rate drops to 7.5%: URA
Rents of retail space in the central region of Singapore increased by 2.3 per cent in the third quarter, after falling 1.5 per cent in the previous quarter, according to data released by the Urban Redevelopment Authority (URA) on Friday. URA’s price index of retail space in the central region was up 1.1 per cent in Q3, versus the 0.4 per cent increase in Q2.
https://www.businesstimes.com.sg/real-estate/singapore-retail-rents-up-23-q-o-q-in-q3-vacancy-rate-drops-to-75-ura
https://www.straitstimes.com/business/property/retail-rents-in-singapore-rise-23-as-vacancy-rate-tightens-to-75-ura-data

Industrial market posts stable Q3 despite external headwinds, but outlook cloudy
Rents and prices of industrial space in Singapore remained relatively stable in the third quarter of this year compared with the previous three months, even as the industrial market faces headwinds from the US-China trade spat. However, between the slowing economy and the ongoing trade war, overall rents and occupancy could face pressure in the quarters to come.
https://www.businesstimes.com.sg/real-estate/industrial-market-posts-stable-q3-despite-external-headwinds-but-outlook-cloudy
https://www.straitstimes.com/business/property/rents-prices-of-industrial-space-hold-steady-in-q3-jtc-0

Lendlease’s S$3.7 billion mixed-used Paya Lebar Quarter officially launched
Paya Lebar Quarter (PLQ), a mixed-used project developed by Lendlease, was officially launched on Thursday. The opening ceremony was graced by guest of honour Lawrence Wong, Minister for National Development and Second Minister for Finance, and Bruce Gosper, the Australian High Commissioner to Singapore.
https://www.businesstimes.com.sg/real-estate/lendleases-s37-billion-mixed-used-paya-lebar-quarter-officially-launched
https://www.straitstimes.com/business/property/paya-lebar-quarter-officially-launched

Entrepreneur’s out-of-the-box idea for shipping-container hotel in Singapore
Repurposed shipping containers could make for unusual hotels in surprising locations, say, on Coney Island, or the Marina Barrage overlooking the National Day Parade fireworks. Depending on how his first two container hotels do at one-north in December, entrepreneur Seah Liang Chiang dreams of having 50 spread across 20 locations islandwide, and eventually popping up in Malaysia and Indonesia.
https://www.straitstimes.com/singapore/entrepreneurs-out-of-the-box-idea-for-shipping-container-hotel

Singapore Economy

Singapore Q3 unemployment hits 10-year high
Overall unemployment in Singapore crept up in the third quarter of this year to the highest level since 2009, as more workers were retrenched. At the same time, employment growth shot up to the highest level since 2014. This was the mixed picture painted by the latest preliminary figures on jobs released by the Manpower Ministry (MOM) on Thursday.
https://www.businesstimes.com.sg/government-economy/singapore-q3-unemployment-hits-10-year-high
https://www.straitstimes.com/singapore/manpower/mixed-job-report-in-third-quarter
https://www.straitstimes.com/singapore/manpower/labour-figures-in-q3-paint-a-mixed-picture
https://www.todayonline.com/singapore/new-spore-labour-data-shows-strong-employment-growth-highest-jobless-rate-nearly-decade

Singapore economy could turn around next year: MAS chief
Singapore’s economy may be a few quarters away from a recovery as the decline in trade and manufacturing this year has not really spread to other sectors, said the head of the Monetary Authority of Singapore (MAS). MAS’ baseline view is that the current cycle should be bottoming out towards the end of the year and into next year, its managing director Ravi Menon said in an interview with Bloomberg earlier…
https://www.straitstimes.com/business/economy/economy-could-turn-around-next-year-mas-chief

The time has come for expansionary fiscal policy, say economists
Without a full-blown recession, expansionary fiscal policy still looks unlikely, but the topic is gaining ground, Swiss-Italian economist Beatrice Weder di Mauro noted on Thursday. Her comments came on the heels of central bank chief Ravi Menon’s statement that not every economic threat is tackled by monetary policy.
https://www.businesstimes.com.sg/government-economy/the-time-has-come-for-expansionary-fiscal-policy-say-economists

Singapore keeps 2nd place for ease of doing business: World Bank
China and India made the top 10 list of governments that have done the most in the past year to improve the ease of doing business in their countries, the World Bank said. Despite a bitter trade war, in which Washington is demanding reforms from Beijing to protect intellectual property and open its economy further to American businesses, China made the top 10 improved list for the second year in a row.
https://www.businesstimes.com.sg/government-economy/singapore-keeps-2nd-place-for-ease-of-doing-business-world-bank-0
https://www.straitstimes.com/business/economy/singapore-still-no-2-in-ease-of-doing-business-report

Companies’ Brief

CRCT’s DPU up 0.8% for Q3 on existing mall growth, new malls’ contributions
CapitaLand Retail China Trust’s (CRCT) distribution per unit (DPU) edged up 0.8 per cent to 2.43 Singapore cents for the third quarter ended Sept 30, from 2.41 cents for the year-ago period, following improved growth from existing malls and contribution from three newly acquired malls. Distributable income rose 13.9 per cent to S$26.9 million from S$23.6 million.
https://www.businesstimes.com.sg/companies-markets/crcts-dpu-up-08-for-q3-on-existing-mall-growth-new-malls-contributions
https://www.straitstimes.com/business/companies-markets/capitaland-retail-china-trust-dpu-up-08-for-q3

Ascendas India Trust posts rise in Q2 DPU to 2.28 S cents
Ascendas India Trust on Thursday posted a distribution per unit (DPU) of 2.28 Singapore cents for its second quarter ended Sept 30, up from the 1.98 cents paid out a year ago. This came on the back of higher total property income (in Singapore dollar terms) which rose 11 per cent year-on-year to S$49.6 million, while net property income rose 18 per cent to S$39 million.
https://www.businesstimes.com.sg/companies-markets/ascendas-india-trust-posts-rise-in-q2-dpu-to-228-s-cents

Sales at Martin Modern condo boost GuocoLand’s Q1 earnings
Property developer GuocoLand on Thursday posted a 61 per cent increase in net profit to S$42.1 million for its first quarter ended Sept 30, on the back of a 62 per cent surge in revenue to S$272.5 million. This was mainly due to higher progressive recognition of sales from Martin Modern condominium, it said. Earnings per share rose to 3.36 Singapore cents from 1.93 cents a year ago.
https://www.businesstimes.com.sg/companies-markets/sales-at-martin-modern-condo-boost-guocolands-q1-earnings

OUE Lippo Healthcare buys majority stake in Wuxi Bohai Hospital
OUE Lippo Healthcare (OUELH) on Thursday announced that it will acquire a 70 per cent stake in Wuxi Bohai Hospital Co, whichoperates Wuxi Bohai Hospital, for about 9.8 million yuan (S$1.9 million). The vendor will retain a 30 per cent stake in the hospital. OUELH has signed a joint-venture agreement with the vendor for itself to wholly manage and operate the Grade II 100-bed hospital located in Wuxi, Jiangsu…
https://www.businesstimes.com.sg/companies-markets/oue-lippo-healthcare-buys-majority-stake-in-wuxi-bohai-hospital

Yanlord revives takeover bid for United Engineers at same S$2.60-per-share price
China-based property developer Yanlord Land Group on Friday renewed its cash offers for United Engineers (UE), in a deal valuing the latter at S$1.66 billion. Its wholly-owned subsidiary Yanlord Investment (Singapore) (YIS) is offering to acquire ordinary and preference shares in UE at S$2.60 apiece in cash – the same price an earlier unsuccessful takeover attempt for UE in July 2017 by a consortium led by…
https://www.businesstimes.com.sg/companies-markets/flash-yanlord-makes-s260-per-share-offer-for-united-engineers
https://www.straitstimes.com/business/companies-markets/yanlord-revives-takeover-bid-for-united-engineers-at-same-260-per-share

Lian Beng bags S$173m contract to build condo at River Valley Close
Contractor Lian Beng Group on Thursday said its order book has been boosted to a record S$1.6 billion following its clinching of a S$173 million contract to build a condominium development at River Valley Close. Awarded by Carmel Development, the contract involves the demolition of the existing buildings on the 128,352 sq ft site occupied by the Pacific Mansion condominium, and the construction of two…
https://www.businesstimes.com.sg/companies-markets/lian-beng-bags-s173m-contract-to-build-condo%C2%A0at-river-valley-close

Chuan Hup in JV with associate to buy and develop Perth site
Chuan Hup Holdings on Friday said its subsidiary Ventrade Australia and associate Finbar Group have formed a joint venture (JV) company to acquire a 1,697 square metre land parcel in Perth for about A$6.5 million (S$6.1 million) and develop it. Located at 240 Adelaide Terrace, East Perth, Western Australia, the site will be developed into approximately 115 residential apartments across 28 levels with additional…
https://www.businesstimes.com.sg/companies-markets/chuan-hup-in-jv-with-associate-to-buy-and-develop-perth-site

ESR-Reit posts 0.4% dip in Q3 DPU to S$0.01 on enlarged unit base after placement
ESR-Reit’s (real estate investment trust) distribution per unit fell by 0.4 per cent from a year ago to one Singapore cent for the third quarter ended Sept 30, weighed down by higher expenses, and an enlarged unit base due to the issuance of new placement units. In June this year, the trust announced that it will issue about 194.2 million new units under its upsized private placement to raise gross proceeds of …
https://www.businesstimes.com.sg/companies-markets/esr-reit-posts-04-dip-in-q3-dpu-to-s001-on-enlarged-unit-base-after-placement
https://www.straitstimes.com/business/companies-markets/esr-reit-sees-04-dip-in-q3-dpu-to-1-cent-on-enlarged-unit-base-from

Sabana Reit Q3 DPU rises on higher occupancies, one-off recovery of revenue
Sabana Reit on Thursday posted a distribution per unit (DPU) of 0.78 Singapore cent for its third quarter ended Sept 30, up slightly from 0.77 cent it paid out a year ago. Gross revenue rose 1.6 per cent to S$20.2 million, mainly due to higher contribution from some multi-tenanted properties on improved occupancies, and a one-off recovery of revenue relating to prior usage of common area from certain tenants.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-q3-dpu-rises-on-higher-occupancies-one-off-recovery-of-revenue

Eagle Hospitality Trust says sponsor won’t lose its key Queen Mary lease
Eagle Hospitality Trust (EHT) said that its sponsor, Urban Commons (UC), is in no danger of losing its lease on the Queen Mary floating hotel which forms part of the trust’s assets. EHT was responding to recent media reports that the city of Long Beach in California, where the former luxury cruise liner is docked, had sent a letter on Oct 1 claiming UC had not met its lease obligations to maintain the historic ship, which had fallen into disrepair.
https://www.businesstimes.com.sg/companies-markets/eagle-hospitality-trust-says-sponsor-wont-lose-its-key-queen-mary-lease
https://www.businesstimes.com.sg/companies-markets/hot-stock-eagle-hospitality-trust-falls-93-despite-assurance-on-queen-mary-lease
https://www.straitstimes.com/business/companies-markets/eagle-hospitality-trust-clarifies-on-cruise-liner

Sasseur Reit reaches settlement with Chinese construction firm
Sasseur Reit on Thursday said that following legal proceedings and negotiations between Hefei Sasseur Commercial Management Co (Sasseur Hefei), Zhongjian Sanju No 2 Construction Engineering (ZS2) and their lawyers, the parties have reached a voluntary settlement of 55 million yuan (S$10.6 million), which Sasseur Hefei will pay to ZS2. Sasseur Hefei is a wholly-owned subsidiary of Sasseur Reit.
https://www.businesstimes.com.sg/companies-markets/sasseur-reit-reaches-settlement-with-chinese-construction-firm

Views, Reviews, Forum & Others

The makings of a true future city
Plans to remake Singapore announced at the National Day Rally 2019 stirred much excitement among the public. A highlight was the intention to reshape the Greater Southern Waterfront into a new, vibrant and thriving destination, where people can work near where they live, and live and play near where they work. The Greater Southern Waterfront redevelopment project reflects Singapore’s continued bid to lead the…
https://www.businesstimes.com.sg/opinion/the-makings-of-a-true-future-city