The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 23rd, 24th, 25th and 26th December 2017

Top Story

Singapore govt’s housing market warning may fall on deaf ears
Singapore’s authorities are concerned the island-state’s property market could be setting itself up for a fall.  A series of aggressive land deals by developers, against the backdrop of rising apartment sales and the first quarterly rise in private home prices for four years, was enough to prompt a recent warning from the nation’s central bank to lenders, homebuyers and real estate firms.

Singapore Economy

Private-sector employees ‘may enjoy bigger bonuses’
Employees in the private sector have some reason to cheer this festive season, as the outlook for bonuses has brightened somewhat on the back of Singapore’s better-than-expected economic growth this year.  But they might want to hold back on the champagne and confetti as not every sector stands to gain, say HR analysts. Given that many sectors have yet to benefit from improved economic conditions, soaring bonuses across the board this year are going to be unlikely.

November exports beat forecasts but growth eases
Sinagpore’s exports beat economists’ projections in November, but eased from October’s sizzling pace as high base effects from a year ago kicked in and electronics growth continued to slow.  Non-oil domestic exports (NODX) rose 9.1 per cent in November year on year, down from the revised 20.5 per cent growth in October, according to the latest data by trade agency IE Singapore.

Singapore’s tourism industry set to finish 2017 on strong note
With the festive period under way, Singapore’s tourism industry looks poised to finish the year strong, bolstered by growing arrivals from China.  But the retail industry, on the other hand, continues to grapple with weakness, despite the improving economy.  According to preliminary estimates from the Singapore Tourism Board (STB), the nation received about 13.05 million visitors in the first three quarters of 2017, up 5 per cent year-on-year.

Singapore Real Estate

Kovan Lodge, Ampas Apartments up for collective sale
Two more collective sale sites have hit the market – the freehold development of Kovan Lodge and Ampas Apartments.  The owners of Kovan Lodge, which sits on 27,091 square feet of land, are asking for $43 million. Under the Urban Redevelopment Authority’s Master Plan 2014, the site is zoned for residential use with a 1.4 plot ratio. It currently houses 16 apartments in a four-storey development with a total strata area of 30,440 sq ft. It is near Kovan MRT station and Heartland Mall-Kovan.

Companies’ Brief

FCL enters German last-mile logistics sector
Frasers Centrepoint Ltd (FCL) is set to expand its European logistics property footprint with an announcement over the weekend of a purchase of six German logistics facilities for about 257 million euros (S$408.6 million).  The purchase, which will boost the group’s proportion of recurring income, also marks the mainboard-listed group’s entry into the German last-mile logistics sector.

CDL Hospitality Trusts to sell 2 Brisbane properties for A$77m
CDL Hospitality Trusts is selling the Mercure Brisbane and Ibis Brisbane for A$77 million (S$79.6 million), the stapled group announced on Friday.  The sale price represents an exit yield of 5.3 per cent on the fixed rental; a 43.4 per cent premium over the A$53.7 million original purchase price; and a 10 per cent premium over an independent valuation of A$70 million.

Keppel Corp unit acquires two residential sites in Vietnam
Keppel Corp’s subsidiary, Keppel Land, has entered into two conditional sales and purchase agreements to acquire two prime sites in Ho Chi Minh City, which will yield about 1,550 homes in total.  The two sites will have a total development cost of US$297 million.  At the first site, which is located in Saigon South and has easy access to the central business district, Keppel Land plans to develop about 220 landed homes and a 1,029-unit high-rise condominium spanning a gross floor area (GFA) of about 36,110 sq m and 141,540 sq m respectively. The total development cost of the first project, including land cost for the 13 ha site, is about US$235 million.

Pavillon to issue 3-year, 5% convertible bonds to pay for Johor Baru properties
Mainboard-listed Pavillon Holdings on Friday said it will pay the remaining RM29.9 million (S$9.84 million) for its Johor Baru properties acquisition by issuing three-year convertible bonds, at 5 per cent interest per annum. Interest will be payable every six months, and the bonds will have a conversion price of RM0.3025 per share. This price represents an initial conversion premium of 108 per cent against Pavillon’s closing price of S$0.048 a share on Dec 22.

First Sponsor to buy second office property in Amsterdam’s CBD for 55.5m euros
Mainboard-listed First Sponsor Group has proposed to acquire a second office building in Amsterdam’s central business district for 55.5 million euros (S$88.6 million) through the group’s wholly owned subsidiary.  The proposed deal, entered to on Dec 22, is for the majority apartment rights of Meerparc, a mixed use office property in the Netherlands. The amount includes transaction costs.

Global Economy & Global Real Estate

Mortgage giants cut deal with US Treasury to cover expected losses

World’s most expensive home to hit market at US$500 million

Prime London property market shows signs of life

China home prices still on steady growth as buyers shrug off govt curbs

Fosun sells tower as China cracks down on outbound deals  

Thinking outside the box to ease Hong Kong’s housing crisis

Skyscraper city becomes citadel of Putin’s state capitalism

German residential property firm Vonovia buys Austria’s Buwog

RBS to pay US$125m to settle California mortgage bond claims

Macron rebuffs criticism for birthday stay in lavish chateau

Holy Land Christians resisting Greek Orthodox Church’s land deals

Bethlehem hotels teem with tourists, defying Jerusalem tensions

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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