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 October 2017

Top Story

Private home prices rise 0.7% in Q3, ending almost 4 years of decline: URA data
Private residential property prices increased 0.7 per cent in three months to September compared to the previous quarter, rising for the first time in almost four years.  This was according to figures from the Urban Redevelopment Authority (URA) on Friday (Oct 27), with the headline number coming in slightly higher than the flash estimate released at the start of the month.

Singapore Economy

Another star showing by electronics likely to upgrade Q3 GDP growth
The predicted slowdown of Singapore’s manufacturing output has not come in as sharply as economists feared for the month of September, as the electronics cluster continued to power ahead with double-digit growth.  The Economic Development Board on Thursday reported that factory production for September increased 14.6 per cent compared to a year ago, beating economists’ expectations of 10 per cent in a poll by Bloomberg.

Singapore’s family-owned firms doing well, survey shows
Family-owned companies here are in a class of their own, according to a new survey yesterday.  The study focused on mid-to large-cap listed firms in which the family or founder held at least 20 per cent of shares and spoke for at least 20 per cent of voting rights.  Researchers polled almost 1,000 such firms globally, with 90 per cent of them having a market capitalisation of at least US$1 billion (S$1.4 billion), although the ones here had an average market cap of US$7.5 billion.

Asia billionaire pool surpasses US; region’s income gap not expected to widen
For the first time, the number of billionaires in Asia has surpassed those in the US – but the issue of a widening income gap between the haves and have-nots in Asia is not a cause for concern, as the trickle-down effect of wealth is said to be felt across all segments.  According to the findings of the Billionaires Report 2017 by UBS and PricewaterhouseCoopers (PwC) published on Thursday, there was a 23 per cent increase from 2015 to 637 Asian billionaires in 2016, compared with a 5 per cent rise to 563 billionaires for the same period in the US.

Singapore Real Estate

Green shoots for rent at some industrial segments
While industrial rentals continued to moderate in the third quarter, the absorption of industrial space has picked up pace in certain sub-segments following positive manufacturing and trade performance in Singapore.

Office rents rise 2.4% in Q3 on higher space absorption
Office space rentals rose 2.4 per cent in the third quarter of 2017, compared with a decline of 1.1 per cent in the previous quarter, according to figures released by the Urban Redevelopment Authority (URA) on Friday.  This came as the amount of occupied office space increased by 10,000 sq m (nett) in the quarter, compared with an increase of 1,000 sq m (nett) in the previous quarter.

Resale prices, transactions for HDB flats fall in Q3
The resale prices and transactions both fell in the third quarter of this year, according to the latest figures from the Housing and Development Board (HDB) on Friday (Oct 27).   The Resale Price Index fell by 0.7 per cent from the previous quarter, from 133.7 to 132.8 in the third quarter, HDB figures showed. Resale transactions also dropped by 3.2 per cent from 6,001 in the second quarter to 5,808 in the latest quarter, it added.

Crystal Tower up for en bloc sale at S$138m
Crystal Tower, a freehold residential site at Ewe Boon Road, has been put up for collective sale by tender, joining the swelling pool of hopefuls in the en bloc market.  Owners are asking for S$138 million, which reflects a land rate of S$1,406 per square foot per plot ratio (psf ppr) based on its existing gross floor area.

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.

Small firms still relevant even as construction sector goes high-tech
While the new technology advocated by the recently announced construction sector overhaul favours bigger firms with resources to invest, industry players stressed that the plan does not render smaller companies irrelevant.

Building maintenance to get boost from technology
It could soon become easier for facilities managers of buildings to locate a leaking pipe or a hidden cable. Facilities management is an area that is on the radar for the authorities, as they seek to transform the construction sector.

Companies’ Brief

Keppel sells stake in Zhongshan waterfront project for 2.9b yuan
Keppel Corp’s subsidiary Keppel Land China has sold its stake in a China waterfront residential and recreational development for 2.9 billion yuan (S$597.4 million) as part of a portfolio refocusing effort.  Under the deal, Keppel China Marina Holdings (KCMH) will sell its indirectly held 80 per cent effective interest in Sunsea Yacht Club (Zhongshan) Co to Delight Prime Ltd.

GLP’s independent adviser finds privatisation bid ‘fair and reasonable’
The independent financial adviser for Global Logistic Properties’ (GLP) independent directors has deemed a proposed privatisation to be fair and reasonable, according to scheme documents despatched on Friday.  Evercore Asia, which was appointed after Singapore’s Securities Industry Countil found the previous appointment of ANZ to be non-independent, said that it considered, among other things, that the S$3.38 per share is a premium over historical prices and over a sum-of-the-parts valuation of the business.

Viva Q3 DPS grows 5% as portfolio occupancy improves to 90.9%
Viva Industrial Trust’s distribution per stapled security (DPS) rose 5 per cent to 1.900 Singapore cents for the third quarter as net property income grew 18.3 per cent to S$20.6 million.  Gross revenue for the three months ended June 30 increased by 16.8 per cent to S$28.3 million, driven by higher contributions from Viva Business Park and contributions from 6 Chin Bee Avenue, which was acquired in January.

CDLHT’s Q3 DPS dips 3% on rights issue, but property income grows
CDL Hospitality Trusts posted on Friday a 3 per cent dip in distribution per stapled security, reflecting the effects of a rights issue completed in August.  Distribution per stapled security (DPS) for the three months ended Sept 30, 2017 stood at 2.29 Singapore cents, compared with 2.36 Singapore cents in the year-ago quarter.

Tuan Sing Q3 net profit down 9% to S$5.9m
Property firm Tuan Sing Holdings reported a net profit of S$5.9 million for its third quarter ended Sept 30, 2017, down 9 per cent from S$6.4 million a year ago.  Revenue rose 12 per cent to S$101 million, from S$90 million a year ago. Higher revenue came from its property and industrial services segments.

Yoma Q2 profit drops 56.8% on higher minority interests, lower fair-value gains
Yoma Strategic Holdings’ net profit fell 56.8 per cent in its second fiscal quarter to S$3.7 million, dragged by higher minority interests and the absence of year-ago fair value gains.  On a per-share basis, profit attributable to shareholders fell to 0.21 Singapore cent from 0.49 cent, said Yoma, a Myanmar-based conglomerate with automotive and property businesses. No dividend was declared, in line with the previous year.

Yang Kee Logistics to buy NZ peer Fliway for S$52.1m
Singapore’s Yang Kee Logistics has entered into an agreement to purchase New Zealand-listed logistics firm Fliway Group for S$52.1 million.  Under the agreement, Yang Kee will buy all outstanding shares in Fliway for NZ$1.22 per share in cash. Among other things, the scheme is conditional on the approval of Fliway’s shareholders and the High Court.

MBS Q3 results lifted by VIP segment
Integrated resort Marina Bay Sands’ (MBS) ebitda expanded by 13 per cent year-on-year to US$442 million for the third quarter of 2017, bankrolled by higher contributions from the VIP segment as well as a tighter control on costs.  The better showing in Singapore as well as in Macau during the quarter also helped to lift earnings for parent company Las Vegas Sands (LVS).

Views, Reviews & Forum

What emboldened GuocoLand in Beach Rd bid
Earlier this month, GuocoLand and its parent Guoco Group were awarded the Beach Road commercial site by the Urban Redevelopment Authority.  Their winning bid of S$1.622 billion works out to S$1,706.30 per square foot per plot ratio (psf ppr) – setting a new benchmark price for a Government Land Sale site in Singapore.

Singapore reinvents itself as Asia’s fintech hub
Remittances to developing nations by migrants working abroad have long been an important lifeline for these countries. In Asean, which celebrates its 50th anniversary this year, remittances have contributed to the ongoing economic development and alleviation of poverty in the regional group.

Writing on the wall for low-tech builders
The construction sector has long been associated with the sweat, mud and grime of taxing physical work. It’s little wonder, therefore, that it has failed to draw locals who like to work with their hands and get satisfaction from building, but not under Stone Age conditions. Proper tools and materials, safe operating procedures and inventive fabrication methods could attract more to the sector.

Global Economy & Global Real Estate

U.S. pending home sales flat in September

Las Vegas Sands revamps Macau casino

China to focus on sustainable growth, not GDP targets

Luxury stores’ exit mauls Hong Kong malls

2017 looks set to be best year for Canada builders

Hilton revenue jumps 26.1%

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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