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 2018

Top Story

Singapore private home prices rose 3.4% in Q2, same as flash estimates: URA
Private residential prices here continued their climb in the second quarter according to statistics released by the Urban Redevelopment Authority (URA), posting a 3.4 per cent increase that was in line with earlier flash estimates.  This followed a 3.9 per cent jump in the first quarter, meaning private home prices rose by 7.3 per cent in the first half of 2018.

Singapore office rentals rose 1.6 % in Q2, islandwide vacancy eases to 12.2 %: URA
The Urban Redevelopment Authority’s rental index of office space in the central region rose 1.6 per cent in the second quarter of this year over the prevous three months.  This is a smaller gain compared with the 2.6 per cent increase in the previous quarter.


Singapore Economy

Singapore June factory output beats forecasts with biomed boost
Singapore’s factory output came in ahead of forecast in June, but that has not lifted fears over manufacturing cooling down from recent highs.  Industrial production was up by 7.4 per cent on the previous year, according to Economic Development Board data out on Thursday. It beat economists’ expectations of 3.3 per cent growth, but still eased from the month before, with the revised figure for May coming in at 12.9 per cent.


Singapore Real Estate

4,300 new flats to be launched as resale transactions rise 33% in Q2
Singapore: About 4,300 new flats in Punggol and Yishun will be offered for sale next month, the Housing and Development Board (HDB) said in its release of public housing data for the second quarter.  In addition to the Build-to-Order (BTO) launch, a Re-Offer of Balance Flats sales exercise will also be held at the same time, HDB said on Friday (Jul 27).

Tee Land ditches en bloc purchase of East Coast condo
Tee Land has decided against exercising its option to purchase Teck Guan Ville in what was to have been a S$60 million collective sale.  With this move following the government’s announcement of fresh cooling measures, Tee Land will forfeit its 1 per cent deposit.

Katong Plaza, Fortune Park extend tender close
Katong Plaza and Fortune Park are the latest collective sale hopefuls to extend their tender closing dates to Sept 11 and Sept 14, respectively, in light of property cooling measures. Huttons Asia, which acts as the property consultant for both freehold projects, announced the extensions on Thursday.  Huttons Asia said that the decision was made in consultation with each collective sale committee. The cooling measures which kicked in on July 6 include higher additional buyer’s stamp duty (ABSD) rates and tighter loan-to-value limits.

Reits with business parks could gain from rental uptick
As INDUSTRIAL propery prices here stabilise, Reits with exposure to business parks could enjoy the continued rental uptick in the sector, but not all spaces in that class of industrial property are doing equally well, said analysts.  JTC said in its second quarter industrial property report on Thursday that business park rents have risen 0.5 per cent, the fifth straight quarter of growth and the strongest showing among the various types of spaces here.

Construction in for long winter as cooling measures dash hopes
Just when a silver lining appears to be on the horizon for Singapore’s construction industry, the latest round of property cooling measures has put paid to the sector’s recovery.  Earlier in the year, builders – many of them small and medium-sized enterprises (SMEs) – had forecast that after enduring years of decline, the worst will be over by the end of 2018.


Companies’ Brief

Ascendas Reit acquires 12 logistics properties in UK
Ascendas Real Estate Investment Trust (Reit) is making its maiden foray into Europe with the acquisition of 12 logistics properties in the United Kingdom.  The Reit has entered into a share purchase agreement with two third-party vendors, Oxenwood Catalina Midco Limited and Oxenwood Catalina II Midco, to acquire 10 companies for £207.27 million (S$373.15 million).

CapitaLand Retail China Trust’s Q2 DPU rises 0.8%
Capitaland Retail China Trust’S (CRCT) distribution per unit (DPU) increased 0.8 per cent to 2.64 Singapore cents for the second quarter ended June 30 from 2.62 cents a year ago on the back of new contribution from the Rock Square mall in Guangzhou.  If year-ago results were restated to account for a private placement exercise in December 2017 that issued 64.4 million new units to part finance the acquisition of Rock Square, DPU would have risen 8.2 per cent from 2.44 Singapore cents, the China-focused mall trust announced on Friday.

CDL Hospitality Trust posts 2.9% rise in Q2 DPS
CDL Hospitality Trust (CDLHT) posted a 2.9 per cent rise in distribution per stapled security (DPS) to 2.14 Singapore cents in the fiscal second quarter ended June 30, despite lower revenue and net profit for the period.  Revenue edged down 0.3 per cent to S$47.7 million from S$47.8 million, while net property income was down 3.7 per cent to S$33.6 million from S$34.9 million.

CDL, Unilever crowned overall winners
Property giant City Developments Limited (CDL) has long championed sustainability in its business, as has consumer titan Unilever, which set out a vision where growth does not have to come with a larger environmental footprint.  For their efforts, both firms were last night crowned the overall winners of the Sustainable Business Awards, the region’s leading sustainability awards.

Frasers Hospitality Trust Q3 DPS falls 9.3% on weakness in Australia, Malaysia
Frasers Hospitality Trust’s third-quarter distribution per staple security declined 9.3 per cent year-on-year to 1.1226 Singapore cents on weakness in its Australia and Malaysia properties, the global hotel and serviced residence trust announced Thursday evening.  Net property income slipped 2.8 per cent to S$28.5 million for the quarter ended June 30 as gross revenue shrank 1.8 per cent to S$38.2 million.

Mapletree Commercial Trust maintains Q1 payout of 2.23 Singapore cents
Mapletree Commercial Trust (MCT) on Thursday announced it will maintain its payout of 2.23 Singapore cents in its fiscal first quarter of 2018, unchanged from the same period a year ago.  Income available for distribution in the same period inched up 0.4 per cent to S$64.61 million, while net property income (NPI) for the three months ended June 30 rose 2.1 per cent to S$85.94 million, driven by higher contribution from VivoCity, Bank of America Merrill Lynch HarbourFront, PSA Building and Mapletree Business City.

MindChamps, Keppel Capital sign MOU to set up education real estate fund
Keppel Capital Ventures, a wholly owned subsidiary of Keppel Capital Holdings (Keppel Capital), has signed a non-binding memorandum of understanding (MOU) with MindChamps PreSchool to cooperate and establish a new private fund that will have an initial target fund size of S$200 million.  Keppel Capital is the asset management arm of Keppel Corp.

Hongkong Land H1 earnings drop 64% to US$1.1b
Lower net gains from the revaluation of its investment properties eroded results for Hongkong Land in its first half.  Net profit plunged 63.9 per cent to US$1.1 billion from US$3.1 billion the preceding year, the group said in a Singapore Exchange filing on Thursday evening.

Ascott ties up with developer Cebu Landmasters
The Ascott Limited has entered into a strategic alliance with a top Philippine real estate developer to manage 1,600 units in the country by 2022, the serviced residence owner-operator company said in a Singapore Exchange filing on Thursday.  Ascott, a wholly owned subsidiary of CapitaLand Limited, will work with Cebu Landmasters Inc (CLI) under the alliance to seek properties for CLI to develop into serviced residences to be managed by Ascott.

SingHaiyi Group posts lower Q1 net profit
Property company SingHaiyi Group’s net profit shrank some 92 per cent year-on-year to S$1.24 million for the first quarter ended June 30.  Revenue plunged nearly 91 per cent to S$26.07 million on the back of lower property development income. This was mainly due to the decrease in revenue recognised for the group’s completed Executive Condominium project, The Vales.

SPH in talks to potentially acquire overseas property assets
Singapore Press Holdings (SPH) is in continuing discussions with various parties to potentially acquire cash-yielding, real estate assets overseas, the media group said in response to media speculation.  In the filing to the Singapore Exchange on Thursday, it went on to highlight that the negotiations may or may not materialise in any transaction or any definitive agreement.

Lian Beng Group Q4 net profit grows 17.3% on gains from disposal
Construction firm Lian Beng Group saw net profit grow 17.3 per cent to S$37.5 million in the fourth quarter ended May 31 as it booked one-time gains from the sale of investment properties in Melbourne, Australia.  The fourth quarter results took the construction and property development company’s full-year net profit to S$54.4 million, up 2.1 per cent from a year ago.

TEE International sees wider net loss of S$8.8m for FY18; Q4 loss narrows to S$1.25m
Mainboard-listed TEE International reported a net loss of S$8.8 million for the 2018 fiscal year ended May 31, compared with a loss of S$1 million in the previous year, the engineering and real estate group said on Thursday.  The loss for the year was mainly attributed to various one-off non-cash items totalling S$10.2 million from the real estate business.

Perennial to develop third HSR integrated development in China
Perennial Real Estate Holdings’ 45 per cent-owned joint venture is making a 2.7 billion yuan investment in an integrated development next to Tianjin South High Speed Railway (HSR) station, the group announced in a regulatory filing before the market opened on Friday morning.  The joint venture, Perennial HC Holdings, was awarded the tender to develop the 76,900 sqm site in Tianjin, China at a land tender price of 718 million yuan.

First Sponsor net profit up 28.9% in Q2; to pay S$0.01 per share interim dividend
Property firm First Sponsor Group’s net profit for the second quarter ended June 30 rose 28.9 per cent to S$12.1 million from S$9.4 million in the year-ago period.  This was despite revenue falling 21.2 per cent to S$44.1 million, due mainly to a decline in revenue from sale of properties, offset partly by higher revenue from property financing, hotel operations and rental income.

Top Global’s Q2 loss narrows
Real estate group Top Global saw its net loss for Q2 FY18 narrow to S$1.76 million from S$2.2 million a year ago.  Revenue was 19 per cent lower year-on-year at S$14.51 million, largely due to decreased revenue from the sale of properties from the Braddell and Bartley projects, while loss per share was 0.55 Singapore cent, compared to 0.68 cent a year ago.

Mandarin Oriental net profit up 49% in H1
Hotelier Mandarin Oriental, a part of the Jardine Matheson Group, has reported a 49 per cent jump in net profit to US$22.3 million in the first half of the year.  The higher earnings were driven by improved performances across most of the portfolio, notably in Hong Kong, the group said. This trend is expected to continue in the second half of the year, it added. 

Parkway Life Reit DPU down 3.7%
Parkway Life Real Estate Investment Trust (Reit) saw distribution per unit (DPU) fall 3.7 per cent to 3.19 Singapore cents for the three months ended June 30, due to the absence of a one-off divestment gain in the year-ago period.  The Reit’s distributable income for Q2 2018, entirely from recurring operations, was SS$19.3 million, down from Q2 2017’s total distributable income of S$20.1 million, but higher than its S$18.7 million distributable income from recurring operations.


Views, Reviews, Forum & Others

Household gas prices to go up from Aug to Oct
Singapore: The gas tariff for households will increase by 3.78 per cent for the next three months, City Gas announced on Thursday (Jul 26).   The tariff will be raised from 18.53 cents per kWh to 19.23 cents per kWh from Aug 1 to Oct 31, the company said in a media release.


Global Economy & Global Real Estate

Trump, EU agree on temporary truce

ECB holds firm through trade tensions

US business spending on equipment strong; trade deficit widens

The U.S. Housing Market Looks Headed for Its Worst Slowdown in Years

UK housing starts slow, led by slump in London

Interest costs, forex losses expected to hit Chinese developers’ earnings

In China’s debt-laden Xiamen, real estate boom chokes consumption                

Hong Kong tourism, retail may take hit from stronger local currency

South Korea’s Q2 growth dips as capital investment, consumption slow

Blackstone picks banks for US$1b India Reit: sources

Canadian Millennials Have a New Reason to Resent Baby Boomers

Kenya’s oldest mortgage lender wants to jettison its entire book


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Local & Overseas Real Estate – Full Article

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