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 October 2017

Top Story

Developers grow more optimistic but worry about cooling moves
Developers have grown more optimistic about the current and future state of the Singapore property market, but they worry about the government introducing more cooling measures.  The Real Estate Sentiment Index (Resi), jointly developed by the Real Estate Developers’ Association of Singapore (Redas) and the Department of Real Estate at the National University of Singapore, had a composite reading of 6.6 in the third quarter, from 6.1 in the second. The composite index gives an overall indicator of sentiment.

Singapore Economy

Singapore banks beat benchmark index as they ride property bull
The local banks’ Q3 results – with OCBC kicking off on Thursday – will be scrutinised closely to see if their 2017 strong rally still has legs.  United Overseas Bank and DBS Bank will report Q3 results on Nov 3 and 6 respectively.  Year-to-date, OCBC and DBS have risen as much as 30 per cent while UOB has lagged at a slower 21 per cent. The benchmark ST Index is up just 16 per cent.

Singapore productivity loss due to sick leave may hit S$3.3b by 2030: Mercer study
Singapore productivity loss due to sickness absenteeism may reach S$3.3 billion by 2030, says Mercer in a study released on Wednesday.  The study reveals that an ageing workforce and medical cost inflation in Singapore are projected to drive up average medical costs per employee by 108 per cent to S$1,973 per year in 2030, representing a mounting financial burden for employers.

Singapore among top performers in new ADB regional integration measure
Singapore is among the top performers in the Asia-Pacific Regional Cooperation and Integration Index, a new measure of the progress of regional cooperation and integration in the region.  According to the Asian Economic Integration Report 2017, a new report released by the Asian Development Bank (ADB), Singapore scores high in all the six dimensions that make up the composite index devised by ADB: trade and investment; money and finance; regional value chains; infrastructure and connectivity; movement of people; and institutional and social integration.

Singapore Real Estate

URA’s request for en bloc tender details intrigues market
The Urban Redevelopment Authority (URA) is seeking detailed information on the tender results of private-sector en bloc sales from marketing agents, including the names of all bidders and their bid prices.  Some market watchers think it may be gathering information with which to formulate the Government Land Sales (GLS) Programme for the first half of next year; others say the authorities could be keeping tabs on the heating en bloc sales sector, with a view to imposing cooling measures if the market spirals out of control.

2018 may deliver better year for hospitality sector
2018 could shape up to be a more buoyant year for the local hospitality industry, thanks in part to a slowdown in supply.  Over 2011-2016, hotel room inventory expanded at a compound annual growth rate of 5.1 per cent, with a further 4 per cent slated to come onstream this year.  Heightened competition has been putting pressure on revenue per available room (RevPAR), especially as new entrants to the markets roll out promotional rates to try and fill their rooms.

Companies’ Brief

Keppel-KBS US Reit to raise gross proceeds of US$553m
Keppel-KBS US Reit, sponsored jointly by Keppel Capital and KBS Pacific Advisors, is expected to raise gross proceeds of US$553.1 million from its initial public offering (IPO) and sale of units to its sponsors and cornerstone investors at US$0.88 per unit.  This marks the second US Reit to be listed in Singapore, following the listing of Manulife US Reit that raised US$519.2 million (US$0.83 per unit) last May.

Keppel divests unit Keppel China Marina for 2.9b yuan
Keppel Corporation has divested its subsidiary Keppel China Marina Holdings (KCMH) to Delight Prime Limited for 2.9 billion yuan (S$597.4 million).  KCMH indirectly owns an 80 per cent effective stake in Sunsea Yacht Club (Zhongshan), which is both owner and developer of Keppel Cove, an 891,752 square metre integrated residential cum marina lifestyle project on Modao Island in Zhongshan, China.

Mapletree’s Q2 results boosted by higher input from its Business City, VivoCity
A full-quarter contribution from Mapletree Business City I (MBC I), as well as higher contribution from VivoCity, gave a lift to results for landlord Mapletree Commercial Trust (MCT) in its second quarter.  Distribution per unit rose 9.3 per cent to 2.24 Singapore cents from 2.05 Singapore cents in the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening.

FCT’s DPU for Q417 climbs to 2.97 cents
FY2018 is expected to be a more stable financial year for Frasers Centrepoint Trust (FCT) thanks to positive rental reversions achieved during FY17 and a rejuvenated Northpoint City North Wing (NPNW).  Amid a slower retail environment, FCT nonetheless reported a 5.5 per cent increase year on year in distribution per unit (DPU) to 2.97 Singapore cents.

SPH Reit sells S$19.8m worth of units in married deal
SPH Reit said its trustee-manager has sold 20 million units worth S$19.8 million in a married deal to an undisclosed party.  A married deal is an off-market transaction, or a block trade, to a specific party. The sale represents less than one per cent of the total number of voting units. Identities of unitholders are made public only when their total holdings cross 5 per cent, and the unitholders are deemed substantial unitholders.

First Sponsor’s Q3 profit up 13.9%, revenue down 21.4%
Robust sales from developer First Sponsor’s China projects in Chengdu and Dongguan, and higher contribution from the higher-yielding property financing business raised net profit for the third quarter by 13.9 per cent to S$22.02 million from the year-ago period.

Ascendas India Trust’s Q2 net property income rises 26% to S$31.6m
Higher rentals and new income contribution lifted results for Ascendas India Trust (a-iTrust) in its second quarter.  In Singapore dollar (SGD) terms, net property income jumped 26 per cent to S$31.6 million from the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening.

Views, Reviews & Forum

Construction site of the future
On Tuesday, an Industry Transformation Map to lift the construction sector — which is the worst performing in Singapore and is set to grow by only 0.3 per cent this year — was unveiled. It aims to push the industry towards more automation, digital technology and sustainable design. Research is underway to create or improve various tools that are part of the construction process. The Straits Times looks at some of these.

Global Economy & Global Real Estate

US single-family home sales hit 10-year high

Manafort’s LA property stakes seen ending in US$4m loss

Is the time right for the Fed to tighten policy?

UK economy picks up speed in Q3, puts BOE rate hike firmly on track

China’s push for green financing will be felt globally

China Jinmao’s HK office ensnared in corruption probe

The Hong Kong Shopping Experience Is Changing

Desaru Coast integrated development banks on regional demand as it prepares for June 2018 launch

Hudson’s Bay sells Lord & Taylor NY building

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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