The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 28th October 2016

Top Story

Singapore private home prices fall steeper 1.5% in Q3 as sales drop 12%: URA
Overall private home prices in Singapore fell 1.5 per cent in the third quarter from the second quarter, according to data from the Urban Redevelopment Authority on Friday.  The decrease in prices was similar with the pace of decline reported in the flash estimates earlier this month.  Third quarter’s price drop was markedly higher than the 0.4 per cent dip in the previous quarter.  This is the 12th straight quarter of price decline, following a slew of property cooling measures that have crimped demand for private homes and put a lid on rising home prices.  To lift market transparency, URA’s latest data include for the first time the net sales prices of de-licensed projects – as opposed to gross prices that might include discounts and rebates.

Singapore Economy

Singapore employment dips in Q3 as resident joblessness stays flat
The number of employed people in Singapore fell over the July-September period, marking only the second time that total employment has contracted since the 2009 global financial crisis.  According to preliminary estimates released by the Ministry of Manpower (MOM) on Thursday, total employment contracted by 3,300 in the third quarter. This contrasts with growth of 4,200 in Q2, and 12,600 a year ago.  The ministry’s Manpower Research and Statistics Department attributed the Q3 fall to contractions in construction and manufacturing, affecting mainly work permit holders.

Singapore Real Estate

Singapore industrial rents slide further in Q3
Industrial property rentals continued their decline for the sixth consecutive quarter, falling 2 per cent in Q3 from Q2, culminating in a 6.3 per cent decline for the first nine months of this year.  Even as some analysts think the decline could hit double-digit after including the expected lull in the fourth quarter, JTC appears satisfied that its efforts have paid off in arresting rising operating costs for industrialists.  Since 2012, the state industrial landlord has installed a slew of anti-speculation and other industrial property cooling measures – including capping land tenures at 30 years, introducing seller’s stamp duties, and the latest, imposing more stringent subletting rules.

Residential reserve site at Serangoon North Ave 1 released for application
A private residential site at Serangoon North Avenue 1 that could potentially yield up to 505 units has been released by the Urban Redevelopment Authority (URA) on Thursday for application.  It is under the Reserve List of the second half 2016 government land sales (GLS) programme. Sites on the Reserve List are triggered for tender only when there is a minimum acceptable bid.  The 99-year 1.7 ha leasehold site is located near Chomp Chomp Food Centre and Serangoon Garden Market. It has a maximum gross floor area of 42,973 sq m given its maximum building height of two storeys within the low-rise zone.

Companies’ Brief

Ascendas Reit to sell Shanghai business park for S$222m
Ascendas Real Estate Investment Trust (A-Reit) on Thursday said its manager will sell a business park in Shanghai for a net S$222 million.  The business park, A-Reit City @ Jinqiao, will be sold to Vanke Property (Hong Kong) Company’s unit, Wkland Investments II Limited.  The total consideration stands at S$228 million, and that amount includes an assignment of A-Reit’s shareholder loan to its unit that owns the business park.

AA Reit posts 1.8% drop in fiscal Q2 DPU
Faced with rental pressures, AIMS AMP Capital Industrial Real Estate Investment Trust (AA Reit) posted a 1.8 per cent drop in distribution per unit (DPU) from a year ago to 2.75 Singapore cents for the second fiscal quarter ended Sept 30.  Gross revenue was 4.3 per cent lower year on year at S$29.91 million, dragged by lower rental contributions for the properties at 27 Penjuru Lane, 8 and 10 Pandan Crescent and 11 Changi South Street 3, as well as the loss in revenue due to the redevelopment of 30 and 32 Tuas West Road and 8 and 10 Tuas Avenue 20.  Net property income slipped 6.9 per cent to S$19.27 million in tandem.

Currency woes, taxes cut Mapletree GCCT’s Q2 DPU
Distribution per unit (DPU) for Mapletree Greater China Commercial Trust (MGCCT) for the second quarter, or the three months ended Sept 30, was down 2.4 per cent to 1.765 Singapore cents.  This comes as the Singapore dollar strengthened and additional taxes at one of the trust’s properties weighed on performance.  Together with its first-quarter DPU, a total of 3.610 cents will be distributed for the half-year, some 3.2 per cent higher than the same period a year ago.

ARA Asset Mgt surges more than 8% on Shanghai property investment
Shares of ARA Asset Management surged more than 8 per cent on Thursday, a day after it said it would be setting up a fund, ARA Harmony VI, to invest in a S$4.1 billion China commercial property.  ARA Asset Management hit S$1.410 apiece earlier, before hovering around S$1.405 each, up 5.5 Singapore cents, or 4.07 per cent, at 4.30pm. It eventually closed up 8.1 per cent, or 11 Singapore cents, at S$1.46.  ARA Harmony VI fund will be managed by ARA and boasts of China Life as its core investor. The other fund participating in the deal is Peninsular Investment Partners, which manages the assets of South Korean sovereign wealth funds.

PLife Reit posts lower Q3 DPU on absence of one-off gain
Parkway Life Real Estate Investment Trust (PLife Reit) has posted an 8.8 per cent drop in distribution per unit (DPU) for the third quarter ended Sept 30 to 3.06 Singapore cents. This is due to the absence of one-off distribution of divestment gain of S$2.3 million.  The one-off gain came from the divestment of seven Japan properties in December 2014 and it has been fully distributed to unitholders over four quarters in FY2015, said manager Parkway Trust Management on Thursday.  Correspondingly, the annualised DPU of 12.24 Singapore cents in Q3 dropped 8.8 per cent.

CDL Hospitality Trusts records 3.4% higher DPS for Q3
CDL Hospitality Trusts on Friday posted a 3.4 per cent increase in distribution per stapled security (DPS) for the third quarter, on stronger income.  DPS for the three months ended Sept 31, 2016, stood at 2.44 Singapore cents, compared to 2.36 Singapore cents a year ago.  Net property income rose to 5.3 per cent to S$34.8 million on contribution from its hotels in UK and New Zealand.

Tuan Sing Q3 profit falls 60%
Property firm Tuan Sing Holdings posted a 60 per cent fall in net profit for the third quarter on weaker revenue.  Net profit for the three months ended Sept 30, 2016 stood at S$6.43 million, down from S$16.2 million a year ago.  Revenue fell about half to S$90.3 million. The decrease was due mainly to Seletar Park Residence having obtained its certificate of statutory completion in January 2016, while Sennett Residence and Cluny Park Residence obtained their temporary occupation permits in June 2016 and July 2016 respectively.

Hiap Hoe to sell Cavenagh Properties for S$31.1m to controlling shareholder
Property group Hiap Hoe Ltd on Thursday said it plans to sell its legal rights to several Cavenagh properties for S$31.1 million to its controlling shareholder.  It will sell its legal and beneficial ownership of all of Cavenagh Properties Pte Ltd to its holding company. Cavenagh Properties, in turn, owns several property units on Cavenagh Road. The residential project for these unsold units is known as Waterscape at Cavenagh.  Hiap Hoe said that with property cooling measures, foreigners have diverted their investments to markets outside Singapore.

Mapletree Greater China Commercial Trust Q2 DPU down 2.4% to 1.765 cents
Distribution per unit (DPU) for Mapletree Greater China Commercial Trust (MGCCT) for the second quarter, or the three months ended Sept 30, was down 2.4 per cent to 1.765 Singapore cents.  Together with its first-quarter DPU, a total of 3.610 cents will be distributed for the half-year, some 3.2 per cent higher than the same period a year ago.  Books closure date is on Nov 4, and unitholders can expect to receive the distribution on Nov 25.

Guocoland, Eco World pool expertise in IPO candidate
Guocoland and Eco World Development Group Bhd are pooling their strengths and expertise in soon-to-be-listed developer Eco World International Bhd (EWI).  The companies – which said on Thursday the tie-up will help them better compete and expand amid stiff competition in international markets – plan to subscribe for 640,000 of EWI’s initial public offering (IPO) shares, giving them an equal 27 per cent share in the enlarged paid-up capital of 2.4 billion shares post-listing. Scheduled for early next year, the IPO is targeting to raise more than RM2 billion (S$663.6 million) to fund three projects in London and one in Sydney.

Global Economy & Global Real Estate  

Record amount of empty space on Fifth Avenue as retailers balk at rent hikes

U.S. pending home sales rebound in September

Tata’s Taj Hotels loses bid to extend lease on iconic Delhi site

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

Scroll to Top