The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 26th May 2016

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Economists expect Singapore growth forecast for 2016 to be cut again
The government on Wednesday stuck to its economic growth forecast for 2016, but there is clear indication the door is open for further downward revision.  The Ministry of Trade and Industry (MTI) said that it was keeping full-year growth forecast at 1-3 per cent when it released the full estimates for first-quarter gross domestic product (GDP) on Wednesday.  But importantly, it said that global growth prospects have dimmed, which changes its stance made just three months ago.

Singapore Economy

Let market forces weed out less productive firms: MTI study
Even as the government doles out support to help companies restructure, competitive market forces should be allowed to work through the economy, as these help to weed out less productive firms, said a Ministry of Trade and Industry (MTI) study released on Wednesday.  By letting market forces work, Singapore can achieve higher productivity growth in two ways: One is when labour is re-allocated from less-productive firms to more productive ones, a process called the positive re-allocation effect; the other is when less productive firms exit and make way for new and more productive entrants, in a process called the positive churn effect.

MTI flags concern over slower rates of capital investment
Downward pressures on machinery & equipment (M&E) investments – and hence, Singapore’s overall investment in capital – will likely remain in the near term, said the Ministry of Trade and Industry (MTI) on Wednesday.  This is especially given continued uncertainties in the global economy, as well as the sluggish outlook for the manufacturing sector amid weak global demand.

Singapore Real Estate

CityDev CEO says it’s a good time to buy commercial property
City Developments Ltd, Singapore’s second-largest developer, may seek to buy offices this year as rising interest rates makes such assets cheaper worldwide.  “We are coming into a very good time for acquisitions,” said Grant Kelley, chief executive officer of City Developments, in an interview in Singapore. “The long-term trend line for assets for the next 12-24 months could be deflationary because I believe as interest rates go up, fixed income will become more attractive and maybe liquidity will drain from real estate assets a little bit.”

Last units of Starlight Suites sold
The developers of Starlight Suites yesterday sold the remaining units in a bulk sale, just in time to beat the Qualifying Certificate (QC) sales deadline at the end of this month. They sold the 23 units at the River Valley project for about $48 million to an entity associated with Evia Capital, The Straits Times understands.  The sale price works out to about $1,670 per sq ft (psf), compared with average prices of about $2,000 psf when the project was launched in 2010. The deal was done via a sale of shares in the development company, Meadows Property (Singapore).

Consultants have mixed views about reserve site in West Coast Vale
The Urban Redevelopment Authority (URA) on Wednesday released detailed sales conditions for a residential reserve site in West Coast Vale, which property specialists are mixed in their views about the site’s appeal.  The 99-year leasehold site under the first-half of the 2016 Government Land Sales (GLS) programme can potentially yield up to 520 residential units. The reserve site will be triggered for public tender when a minimum acceptable bid is received.

High demand for 3-room and larger BTO flats
On the second day of this month’s Build-To-Order (BTO) launch of new Housing Board homes, there were already more applicants than the three-room or larger flats on offer.  As of 5pm yesterday, there were 2,393 applications for 2,351 units.  The response was cooler for two-room flexi flats, with 519 applicants for 1,419 units.  Still, the high demand is in line with the predictions of experts, who point to flats in the mature estates of Ang Mo Kio and Bedok as especially attractive.

Savills Investment ramping up Asian business
A Newly appointed Asia-Pacific CEO. Two new regional offices. A three-year game plan to grow its assets under management (AUM) in Asia five-fold to more than US$10 billion. The signs are all there: Savills Investment Management is serious about expanding in Asia.  The investment management arm of the Savills Group opened its Sydney office last week, and will open its Shanghai office in a few weeks’ time. It already has offices in Tokyo, Hong Kong and Singapore, the latter being its Asia-Pacific headquarters.

Record 34 projects win BCA’s accolades
A record 34 projects have been recognised by the Building and Construction Authority (BCA) for overcoming challenging site conditions or delivering stellar workmanship.  They received 16 awards and 18 certificates of merit under the annual Construction Excellence Award, which is now in its 30th year.  “The record number is a testament to the progressive improvements made by builders,” said Construction Excellence Award assessment committee chairman Lai Huen Poh, who is also the managing director of RSP Architects Engineers and Planners.

Global Economy & Global Real Estate

China banks lending more to property sector

Bank Indonesia mulls easing of loan rules to boost credit growth

Toll Brothers’ quarterly revenue up 31% on higher home sales

These Multimillion-Dollar Homes Let the Outdoors In

WTO sees Brexit costing UK billions in trade tariffs

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