DAILY NEWS

Daily News – 26th, 27th and 28th January 2019

Top Story

Singapore private property market set to face demand tests in 2019
The private residential property market here could face some demand tests ahead as higher interest rates and heftier duties from the authorities’ cooling measures weigh on buyers’ wallets. As it is, property curbs unleashed in July have already sent the private property market on roller-coaster year in 2018.
https://www.businesstimes.com.sg/real-estate/singapore-private-property-market-set-to-face-demand-tests-in-2019
https://www.straitstimes.com/business/property/new-private-home-prices-up-79-in-2018-despite-cooling-measures

Cross Island Line’s first phase to be completed by 2029
The first phase of the Cross Island Line – Singapore’s longest fully underground MRT line – will be completed by 2029 and span 12 stations from Changi to Sin Ming. Transport Minister Khaw Boon Wan said yesterday that the alignment of the 29km first phase has been finalised. When it is completed, more than 100,000 households will enjoy better access to the rail network and shorter travelling times.
https://www.straitstimes.com/singapore/transport/cross-island-lines-first-phase-to-be-completed-by-2029
https://www.straitstimes.com/singapore/transport/cross-island-mrt-a-unique-line-with-great-potential

Singapore Real Estate

Private home rentals weaken ahead of increased supply
Private home rentals ended a three quarter winning streak in the fourth quarter despite vacancy rates hitting a five-year low, analysts said. This, as a large supply pipeline is looming and hiring sentiment has turned cautious due to geopolitical uncertainty and an expected economic slowdown.
https://www.straitstimes.com/business/private-home-rentals-weaken-ahead-of-increased-supply

Retail property market may be on stronger recovery footing
A wave of cautious optimism has washed over the retail property market. This follows quarter-on-quarter upticks of above 1 per cent in the Urban Redevelopment Authority’s retail rental and price indices for Singapore’s central region. This was the first time both indexes had risen by this much since the series began in 2011.
https://www.businesstimes.com.sg/real-estate/retail-property-market-may-be-on-stronger-recovery-footing
https://www.straitstimes.com/business/property/retail-rents-up-12-in-q4-vacancy-rate-climbs-to-85-ura

URA office rental index grows at slower clip in Q4, points to smaller hike in office rents this year
Office rents are poised for a smaller hike this year than the increase last year, going by the slowdown in the pace of growth in office rents in the fourth quarter of 2018. The Urban Redevelopment Authority’s rental index for office space in Singapore’s central region rose by 0.5 per cent during the quarter over the previous three months. In Q3 2018, the rise had been by 2.5 per cent.
https://www.businesstimes.com.sg/real-estate/ura-office-rental-index-grows-at-slower-clip-in-q4-points-to-smaller-hike-in-office
https://www.straitstimes.com/business/property/office-rents-in-singapore-cool-to-05-rise-in-q4-as-vacancy-rate-climbs-to-121

New State Courts Towers on track for opening in 2020
Standing out among its Chinatown neighbours at 178 metres, the new State Courts Towers is now the tallest government building in Singapore. A ceremony, officiated by Chief Justice Sundaresh Menon, was held on Friday to mark the completion of structural works of the 35-storey building, which comprises two interconnected towers.
https://www.businesstimes.com.sg/real-estate/new-state-courts-towers-on-track-for-opening-in-2020
https://www.straitstimes.com/singapore/new-state-courts-towers-on-track-for-2020-opening

Singapore mortgage demand slows, may drag down housing market
Rising interest rates and the latest round of property curbs have put the brakes on mortgage demand at Singapore’s banks, potentially further dragging down the city’s housing market. Home-loan growth slowed to 1.9 per cent in the first 11 months of 2018, less than half the 4.2 per cent increase posted in 2017, the latest Monetary Authority of Singapore data showed.
https://www.businesstimes.com.sg/real-estate/singapore-mortgage-demand-slows-may-drag-down-housing-market

3,100 flats to be launched in first BTO exercise of 2019
The Housing and Development Board (HDB) said on Friday that the first Build-To-Order (BTO) exercise of the year will be launched in February, offering up about 3,100 flats in Jurong West, Kallang/Whampoa and Sengkang. There will also be a concurrent reoffer of balance flats exercise, HDB said, adding that it plans to launch about 15,000 new flats for sale in 2019.
https://www.businesstimes.com.sg/real-estate/3100-flats-to-be-launched-in-first-bto-exercise-of-2019

More flats sold in 2018, with 71 going for $1m and above
More Housing Board flats changed hands last year, with a record 71 flats sold for $1 million or more each. This came as resale prices slipped for a fifth straight year, hitting a seven-year low. In all, 23,099 resale flats were sold last year, 4.6 per cent more than the 22,077 transactions in 2017, according to HDB’s quarterly report released yesterday.
https://www.straitstimes.com/singapore/housing/more-flats-sold-in-2018-with-71-going-for-1m-and-above

Singapore Economy

Singapore’s factory output ends on a weak note
Singapore’s factory output ended the year on a dismal note as it failed to meet economist expectations in the last month of 2018 – a signal that the manufacturing sector is fast losing its momentum with the peaking of the electronics cycle and slowing global demand. This comes as greater volatility has been observed in the industrial production numbers of late, with uncertainty from the trade war further clouding the outlook and denting business sentiment.
https://www.businesstimes.com.sg/government-economy/singapores-factory-output-ends-on-a-weak-note
https://www.straitstimes.com/business/economy/dec-factory-output-lower-than-forecast

Companies’ Brief

Cache Logistics Trust DPU down for Q4 2018
Perp holders might be pleased, but Cache Logistics Trust unit holders will have to grin and bear it. Payments to perpetual security owners ate into fourth-quarter distributable income for the three months to Dec 31, 2018 – kicking distribution per unit (DPU) down to 1.502 Singapore cents, from 1.597 Singapore cents the year before.
https://www.businesstimes.com.sg/companies-markets/cache-logistics-trust-dpu-down-for-q4-2018

First Sponsor acquires Milan hotel property for 9.3m euros
Real estate developer First Sponsor Group has acquired a hotel property in Milan, Italy for about 9.3 million euros (S$14.4 million) in cash from BNP Paribas real estate investment fund Fondo Kona, according to market filings on Friday. The six-storey building with a basement is located in Corso Buenos Aires no 33, Milan.
https://www.businesstimes.com.sg/companies-markets/first-sponsor-acquires-milan-hotel-property-for-93m-euros-0

Mapletree NAC Trust posts 3.2% rise in Q3 DPU
Mapletree North Asia Commercial Trust on Friday posted a 3.2 per cent rise in distribution per unit (DPU) for its fiscal third quarter, lifted by higher distributable income. DPU for the three months ended Dec 31, 2008 stood at 1.927 Singapore cents, up from 1.868 Singapore cents in the same period a year ago. Its distributable income for the fiscal third quarter rose 15.9 per cent to S$61 million, driven by acquisition of properties in Japan and higher contribution from existing properties.
https://www.businesstimes.com.sg/companies-markets/mapletree-nac-trust-posts-32-rise-in-q3-dpu-0

Keppel to sell 70% stake in Vietnam township project for about $136m
Keppel Corp is selling a 70 per cent interest in a Vietnam township project to Nam Long Investment Corp for 2.3 trillion Vietnamese dong (S$136 million) in cash. Keppel Land, Keppel’s real estate arm, is currently in the process of taking over complete control of Dong Nai Waterfront City LLC from its current joint venture partner in the project through a demerger.
https://www.straitstimes.com/business/companies-markets/keppel-to-sell-70-stake-in-vietnam-township-project-for-about-136m

Oxley, partner to sell Dublin Landings residential units for $270.8m
Oxley Holdings’ wholly-owned subsidiary, Oxley Docklands Quay Three Limited, and National Asset North Quays DAC have agreed to sell 268 residential units in Ireland to Greystar Europe Holdings for €175.5 million (S$270.8 million).
https://www.straitstimes.com/business/companies-markets/oxley-partner-to-sell-dublin-landings-residential-units-for-1755m-euros

VIEWS, REVIEWS, FORUM & Others

Do we even need offices anymore?
We get asked all the time if there is even a future for offices today. Technology is now able to bring people from all corners of the world together for a meeting virtually without needing to be in the same room. Perhaps in the future, we can unanimously agree to eliminate the commute altogether and work from home through virtual offices, especially as virtual reality becomes even more ubiquitous and accessible.
https://www.businesstimes.com.sg/opinion/do-we-even-need-offices-anymore