The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 27th July 2017

Top Story

Oxley-led consortium acquires Serangoon Ville for S$499m in collective sale
A consortium led by Oxley Holdings has acquired Serangoon Ville, a former HUDC estate in Serangoon North Avenue 1, for S$499 million in a collective sale.  Offers of S$400 million to S$430 million had been expected.  This collective sale brings the year’s number so far to seven, in deals worth S$2.5 billion; for the whole of last year, only three deals worth S$1 billion were closed.

Singapore Economy

Jump in June factory output sees economists revising upwards Q2 GDP growth estimates
Better-than-expected industrial production numbers in June have led economists to expect Singapore’s gross domestic product (GDP) growth for the second quarter to be upgraded to closer to 3 per cent, up from the latest flash estimate of 2.5 per cent.  Singapore’s factory output went up 13.1 per cent last month from a year ago, making it the 11th straight month of expansion, going by data released on Wednesday by the Economic Development Board.

For Singapore retail, a new Amazon challenge
Amazon, the world’s No. 1 online marketplace, is finally here. Singapore shoppers can now buy on Amazon Prime Now, the highly vaunted platform that delivers orders to your doorstep within a hitherto unheard of two hours.  Even as thousands of consumers embrace its arrival, Amazon’s presence here would also witness a major shake-up for many retailers big and small.

On-time debt payment by SMEs hits 2-year low
The percentage of debt paid on time by small and medium enterprises (SMEs) fell to 37 per cent for the second quarter of 2017, its lowest in two years, according to research by DP Information Group (DP Info).  It fell from 52 per cent in the first quarter, and stands at its lowest level since the second quarter of 2015, where the percentage of on-time payments was 35 per cent.

Singapore Real Estate

City Plaza unit owners looking to sell en bloc
Collective sales fever is spilling into the commercial sector as many City Plaza unit owners prepare for their first annual general meeting in years on Saturday, to discuss a sale with a possible price tag of as high as $1 billion.  The 18-storey freehold building near Paya Lebar MRT station was completed in 1972 and is known for its wholesale shops, which mainly sell apparel.

Dunearn Court latest offered for en bloc sale, asking for $38.8m
Owners at Dunearn Court – a freehold condominium off Dunearn Road – are putting their property on the market for S$38.8 million.  The tender, to be launched on Thursday (July 27), comes hot on the heels of a slew of collective sale deals sealed in recent months amid rising optimism in the private residential market here.  The asking price works out to a land rate of about S$1,443 psf per plot ratio, said marketing agent Knight Frank on Wednesday (26 Jul).

Bukit Panjang CC’s green revamp pays off
Refurbishment works to Bukit Panjang Community Club (CC) have helped it go green, save money on energy used and achieve a Green Mark Gold Plus certification awarded by the Building and Construction Authority (BCA).  This benchmarking scheme is used by BCA to evaluate a building on its environmental design and performance.

Mandai eco-link for animals to be ready by end-2019
An elevated wildlife crossing in Mandai will be ready for animals to use by the end of 2019, allowing creatures such as the Sunda pangolin and lesser mouse deer to move between forested areas in the upcoming eco-tourism hub.  The 44m-wide eco-link, which will be 9m above ground and span the width of Mandai Lake Road, is part of developer Mandai Park Holdings’ (MPH) plan to facilitate safe crossings for animals. Over the years, there have been reports of animals ending up as roadkill as they attempt to cross Mandai Lake Road.

Companies’ Brief

Lian Beng Q4 profit expands 5.3% to S$32m
The completion of industrial development project Mandai Foodlink lifted results for mainboard-listed Lian Beng Group for its fourth quarter ended May 31, it announced in a Singapore Exchange filing on Wednesday evening.  Also contributing significantly are the group’s investment holding segment, comprising property portfolio in Australia and Singapore, and its investment securities portfolio.  Net profit increased 5.3 per cent to S$31.99 million from the previous year, the group said in a Singapore Exchange filing on Wednesday evening.

Suntec Reit Q2 DPU slips 0.3% on dilution, retail weakness
Suntec Real Estate Investment Trust’s second-quarter distribution per unit slipped 0.3 per cent to 2.493 Singapore cents as newly issued units and lacklustre retail and convention income offset a stronger office business.  ARA Trust Management (Suntec), the manager of the trust, which holds office and retail assets that include the Suntec City retail mall and convention centre, also announced on Wednesday a A$414.17 million (S$446.4 million) acquisition of a 50 per cent stake in a Melbourne office building.

AA Reit’s Q1 DPU slips 10%
AIMS AMP Capital Industrial (AA Reit) on Thursday announced a distribution per unit (DPU) of 2.50 Singapore cents for the first quarter ended June 30, 2017, a decrease of 10 per cent from 2.78 cents a year ago.  Distributable income fell 9.9 per cent or S$1.8 million to about S$16 million, down from last year’s S$17.8 million.

CRCT’s Q2 DPU marginally up
CapitaLand Retail China Trust (CRCT) on Thursday reported a distribution per unit of 2.62 Singapore cents for the second quarter ended June 30, up 0.4 per cent from 2.61 cents last year.  Distributable income grew 4.3 per cent to S$23.3 million, compared to S$22.4 million in the previous year.  Net property income rose 12.6 per cent from S$35.5 million a year ago to S$39.97 million this year.

Yoma Q1 profit up 54% on higher revenue and gross margins
Backed by higher group revenue and improved gross profit margins, Yoma Strategic Holdings emerged from its fiscal first quarter with a 54 per cent surge in earnings attributable to equity-holders.  The three months ended June 30, 2017 (Q1 FY2018) registered a net profit of S$2.82 million, up from S$1.83 million a year ago. Gross profit margins improved to 40.6 per cent from 38.8 per cent in Q1 FY2017, mainly due to the higher margins achieved for the real estate business, said Yoma.

Higher cost of sales, provision of impairment hit Tee Land’s Q4 earnings
Higher cost of sales and losses from its share of results of associates dampened results for Tee Land in its fourth quarter.  It fell into the red, posting a net loss of S$2.4 million, compared to a net profit of S$4.7 million in the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening.

Views, Reviews & Forum

Uneven growth the new normal for Singapore economy?
Manufacturing – now the brightest spot in the Singapore economy – turned in yet another outstanding performance last month, thanks largely to electronics makers.  This allayed some concerns that factories, which have been a key growth driver so far this year, might be losing steam.

Rowsley’s third revival act in a decade should prompt caution
Who doesn’t love a company that’s on the cusp of getting another shot at reinvigorating itself, huh? Such fascination, albeit premature at this point, led traders to lap up Singapore-listed Rowsley’s stock last week after the company unveiled a ground-shifting all-share S$1.9 billion deal to revive its fortunes and move into the largely lucrative healthcare space.

Tweak HDB income ceiling to help sandwiched couples buy BTO flats
I refer to the report “Attractive pricing draws strong interest at property launches” (July 25).  That the executive condominium in Hougang sold out in seven hours could signal a need to tweak the Housing and Development Board’s (HDB’s) income ceiling upwards, to help more sandwiched couples buy Build-To-Order flats, as private condominiums are beyond their reach.

Global Economy & Global Real Estate

Dollar marks time before US Fed rate decision

U.S. new home sales rise in June, but trend softening

New York suburbs get makeovers to attract millennials

US$16m historic house in San Francisco up for sale

Single-family landlords sinking cash into Rust Belt rentals

North Korea spurs bomb shelter business

US$1 trillion global airport spree threatens Singapore, Hong Kong dominance

China to convert all giant state companies into joint-stock firms by end-2017

Accorhotels beefs up luxury rental ‘onefinestay’ brand to fight Airbnb

Airbnb, Mizuho-backed venture team up to offer Japan-only perks

Architect of Indonesia’s post-crisis economy urges local autonomy

Urban innovation’s the way forward to achieve green goals

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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