DAILY NEWS

Daily News – 27th, 28th and 29th July 2019

Singapore Real Estate

Private home prices up 1.5% in Q2; 2019 could end in positive territory
Private home prices rose 1.5 per cent quarter-on-quarter in Q2 in the first increase since last July’s cooling measures, and analysts suggest that private residential prices for 2019 could grow slightly year-on-year on the back of new launches. The 1.5 per cent increase, higher than the 1.3 per cent cited in the flash estimate of the Urban Redevelopment Authority (URA), was led by non-landed properties in the prime and city fringe districts.
https://www.businesstimes.com.sg/real-estate/private-home-prices-up-15-in-q2-2019-could-end-in-positive-territory
https://www.straitstimes.com/business/private-home-prices-rebound-15-in-q2
https://www.channelnewsasia.com/news/singapore/private-home-prices-ura-q2-rentals-residential-property-index-11755208
https://www.todayonline.com/singapore/singapore-private-home-prices-climb-15-q2-highest-least-5-years
https://www.businesstimes.com.sg/real-estate/flash-singapore-retail-rents-ease-15-q-o-q-in-q2-ura
https://www.straitstimes.com/business/property/singapore-retail-rents-ease-15-in-q2-vacancy-rate-drops-to-77-ura
https://www.businesstimes.com.sg/real-estate/flash-singapore-office-rents-rose-13-q-o-q-in-q2-2019-ura-data
https://www.straitstimes.com/business/property/singapore-office-rents-rise-13-in-q2-vacancy-rate-falls-to-115-ura

Positive office market numbers, but clouds loom
The latest official data points to overall positive indicators for the Singapore office market, but some analysts see warning signs. CBRE’s associate director of research Catherine He said: “We have observed more cautious sentiments as firms are assessing the full impact of the trade war, with more opting for renewals rather than committing capital expenditure to expand or relocate.”
https://www.businesstimes.com.sg/real-estate/positive-office-market-numbers-but-clouds-loom

Singapore hotel room rates to rise by 2% in 2020: report
Singapore’s hotel room rates are expected to rise by 2 per cent in 2020, following “significant” investments into the travel market, according to data from American Express Global Business Travel (GBT) on Friday. Such investments, which includes the multibillion dollar expansions of Changi Airport and Resorts World Sentosa, are expected to increase tourism and the meetings, incentives, conferencing…
https://www.businesstimes.com.sg/real-estate/singapore-hotel-room-rates-to-rise-by-2-in-2020-report
https://www.straitstimes.com/business/property/singapore-hotel-room-rates-to-rise-by-2-in-2020-report

Jewel, revamped Funan boost net absorption of retail space
Strong net absorption of retail space in the second quarter led to a one percentage point drop in the island-wide vacancy rate for retail space, but the outlook for this property segment remains weak. Official data shows that the net absorption of retail space – as reflected in the change in occupied space – was 74,000 square metres in net lettable area (NLA) island wide, making it the highest in 18 quarters.
https://www.businesstimes.com.sg/real-estate/jewel-revamped-funan-boost-net-absorption-of-retail-space

Piermont Grand EC sells 375 of 820 units on launch weekend
The first executive condominium (EC) launched this year, Piermont Grand, sold 375 of its 820 units in its launch weekend at an average of S$1,080 per sq ft (psf). The 46 per cent sales rate, as of 6pm on July 28, made it “by far the best-selling property launch” this year, said developer City Developments (CDL) in a release on Sunday evening.
https://www.businesstimes.com.sg/real-estate/piermont-grand-ec-sells-375-of-820-units-on-launch-weekend
https://www.straitstimes.com/business/property/46-of-punggol-ec-sold-at-launch-despite-big-price-tag

Billionaire Dyson to buy second lavish Singapore property
[Singapore] Inventor of the bagless vacuum cleaner James Dyson is poised to purchase his second luxury property in Singapore, complete with an infinity pool and indoor waterfall, weeks after news broke that he had snapped up the city-state’s priciest penthouse. The Straits Times newspaper reported on Friday that the British billionaire had been given approval to buy the plush house…
https://www.businesstimes.com.sg/real-estate/billionaire-dyson-to-buy-second-lavish-singapore-property
https://www.todayonline.com/singapore/billionaire-dyson-buy-second-lavish-singapore-property

HDB resale volume jumps almost 30% in second quarter
The number of Housing and Development Board (HDB) resale flats that changed hands in the second quarter of 2019 grew nearly 30 per cent as compared with the first three months of the year, latest public housing figures showed. There were 6,276 resale transactions in the second quarter of the year, up 29.8 per cent from the 4,835 deals in the first quarter, according to the HDB, which released the data on Friday.
https://www.businesstimes.com.sg/real-estate/hdb-resale-volume-jumps-almost-30-in-second-quarter
https://www.straitstimes.com/singapore/housing/sales-of-hdb-resale-flats-up-nearly-30-in-q2-but-prices-dip
https://www.channelnewsasia.com/news/singapore/hdb-resale-prices-sales-launches-11755206
https://www.todayonline.com/singapore/hdb-resale-transactions-nearly-30-q2-prices-dip-slightly

Singapore Economy

Singapore June factory output down 6.9%, less than expected
Singapore’s industrial output fell 6.9 per cent in June, deepening from May’s 2 per cent fall and marking the fourth straight month of year-on-year decline, according to preliminary estimates from the Singapore Economic Development Board on Friday. This was a smaller decline than economists’ expectations of an 8.5 per cent fall. Excluding the volatile biomedical manufacturing sector, however, output fell 9.9 per cent.
https://www.businesstimes.com.sg/government-economy/singapore-june-factory-output-down-69-less-than-expected
https://www.straitstimes.com/business/factory-output-down-69-biggest-drop-in-312-years

Q2 unemployment up for Singaporeans amid ‘subdued’ hiring
Unemployment for Singaporeans continued to rise as the pace of employment growth slowed in the second quarter of this year, amid trade tensions and global uncertainties. However, retrenchments dipped, according to preliminary data released by the Ministry of Manpower (MOM) on Friday.
https://www.businesstimes.com.sg/government-economy/q2-unemployment-up-for-singaporeans-amid-subdued-hiring
https://www.straitstimes.com/business/unemployment-for-sporeans-up-amid-cautious-hiring

Companies’ Brief

CapitaLand secures 95% retail take-up for Chongqing mega project
CapitaLand has achieved a 95 per cent leasing rate for the retail component of Raffles City Chongqing ahead of the mega-mall’s opening in September this year, the mainboard-listed property heavyweight said on Monday. The shopping mall will be the first component to begin operations at the iconic mega-structure spanning a total of 1.12 million square metres (sq m) in construction floor area.
https://www.businesstimes.com.sg/companies-markets/capitaland-secures-95-retail-take-up-for-chongqing-mega-project
https://www.straitstimes.com/business/companies-markets/capitaland-secures-95-retail-take-up-for-chongqing-mega-mall-project

FLT raises Q3 DPU by 3.4% to 1.82 Australian cents
Frasers Logistics & Industrial Trust (FLT) has nudged up third-quarter distribution per unit (DPU) by 3.4 per cent year-on-year, as earnings rose. The manager announced on Friday a DPU of 1.82 Australian cents for the three months to June 30.
https://www.businesstimes.com.sg/companies-markets/flt-raises-q3-dpu-by-34-to-182-australian-cents

Fair value, other gains lift UIC Q2 profit to S$409.3m; Wee Cho Yaw’s grandson to join firm as COO
Property group United Industrial Corp (UIC) has posted a net profit of S$409.3 million in the second quarter, 268 per cent higher than the S$111.1 million it made in the same period a year earlier. The bottom line was boosted by a S$135 million fair value gain on investment properties. The valuation gains in the second quarter last year amounted to only S$46 million.
https://www.businesstimes.com.sg/companies-markets/fair-value-other-gains-lift-uic-q2-profit-to-s4093m-wee-cho-yaws-grandson-to-join

Frasers Hospitality veteran Choe Peng Sum named new Pan Pacific CEO
The UOL Group-owned Pan Pacific Hotels Group will soon be led by a Frasers Hospitality veteran, the parent company announced on Friday. Choe Peng Sum, 59, will take over as chief executive of Pan Pacific Hotels Group on Sept 1, reporting directly to UOL CEO Liam Wee Sin. He will manage and develop the Pan Pacific Hotels Group’s hotels and serviced apartments, under the Pan Pacific and Parkroyal brands.
https://www.businesstimes.com.sg/companies-markets/frasers-hospitality-veteran-choe-peng-sum-named-new-pan-pacific-ceo

Soilbuild Reit mulls options for Pioneer Sector site on rental arrears woes
Soilbuild Business Space Reit, which faces mounting rental arrears by one of its top tenants, is weighing its options for the property at 2, Pioneer Sector 1. The trust could lease the premises to third parties, or embark on asset enhancement to increase the gross floor area, the manager said on Friday, in an update on the unpaid rent.
https://www.businesstimes.com.sg/companies-markets/soilbuild-reit-mulls-options-for-pioneer-sector-site-on-rental-arrears-woes

Suntec Reit Q2 DPU falls 4.6% as Suntec S’pore revenue drops 17%
Suntec Real Estate Investment Trust (Suntec Reit) posted a 4.6 per cent drop in its distribution per unit (DPU) to 2.361 Singapore cents for the second quarter ended June 30, down from 2.474 cents in the year-ago period. Net property income (NPI) shrank 7.2 per cent to S$56.4 million for the quarter, mostly due to the sinking fund contribution for Suntec City Office upgrading works amounting to S$3.2 million.
https://www.businesstimes.com.sg/companies-markets/suntec-reit-q2-dpu-falls-46-as-suntec-spore-revenue-drops-17
https://www.straitstimes.com/business/companies-markets/suntec-reit-q2-dpu-falls-46-to-2361-s-cents-on-lower-convention-revenue

Fortune Reit H1 DPU dips 0.8% to 26.13 HK cents
The recent protests rocking Hong Kong are being watched for their impact on Fortune Real Estate Investment Trust malls, the Reit’s Li Ka Shing-backed manager said. The manager also addressed concerns over economic hits to the Chinese territory’s shopping scene, saying that its malls “are private housing estate retail properties catering mainly for non-discretionary spending, and tend to be relatively resilient”.
https://www.businesstimes.com.sg/companies-markets/fortune-reit-h1-dpu-dips-08-to-2613-hk-cents-0

Eagle Hospitality Trust makes ‘certain improvements’ to master lease agreements
The managers of Eagle Hospitality Trust on Friday said they have made “certain improvements” to the master lease agreements (MLAs) for its 18 properties, including a potential incremental rent stream to the real estate investment trust (Reit). Under each MLA signed for its assets, the Reit component of the stapled trust will receive rental payments with fixed and variable rent components.
https://www.businesstimes.com.sg/companies-markets/eagle-hospitality-trust-makes-certain-improvements-to-master-lease-agreements
https://www.straitstimes.com/business/companies-markets/eagle-hospitality-trust-adds-potential-incremental-rent-in-master-lease

Views, Reviews, Forum & Others

Keeping the headcount up
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
One alarming aspect of the declining birth rate is the indifference to warnings about the new demographic reality of a shrinking workforce. A seemingly easy way out is to tweak the current tight immigration policy. However, this is a stopgap measure that has high socio-political costs. Employers should address immediate manpower concerns by leveraging on technology, innovation and revolution in infotech, etc.
https://www.businesstimes.com.sg/views-from-the-top/keeping-the-headcount-up

Foundations for the future: Things are finally looking up for the built environment sector
For the first time in three years, things are finally looking up for the built environment sector. Besides encouraging figures in growth and employment, new technology and opportunities in the industry are also ushering in an exciting time for shaping Singapore’s skyline.
https://www.straitstimes.com/business/property/foundations-for-the-future

Staying ahead of the curve
For Greyform boss Bob Chan, it is difficult to attract young local talent to his company, which specialises in offering precast and prefabricated solutions to the construction industry. “In general, the younger folks see construction and precasting as not as glamorous an industry to be involved in,” he said, adding that Greyform holds recruitment drives at institutes of higher learning and offers internships.
https://www.straitstimes.com/business/property/staying-ahead-of-the-curve

The Pines club members sue Peter Kwee for damages
Some 103 members of The Pines club have made good on their word. On Friday, they sued Exklusiv Resorts Pte Ltd, the owner of the now defunct The Pines club, and its director, motoring tycoon Peter Kwee, for alleged deceit, negligence, misstatement and breach of contract. This came after the latter failed to deliver a renovated clubhouse at its Stevens Road vicinity as allegedly promised to club members…
https://www.businesstimes.com.sg/real-estate/the-pines-club-members-sue-peter-kwee-for-damages