SINGAPORE REAL ESTATE
Global IPOs in first 9 months outstrip 2016’s full-year tally
The global market for initial public offerings (IPOs) is buoyant – the number of listings and amount raised in the first nine months of this year alone have already surpassed that for the whole of 2016 on both counts. There were 1,156 IPOs between January and September, 59 per cent more than in the corresponding period last year; these 1,156 IPOs raised US$126.9 billion, 55 per cent more than in the year-ago period.
Strong investment performance lifts global wealth
Strong investment performance buoyed the wealth of high net worth individuals (HNWIs) globally, driving a global wealth expansion of 8.2 per cent in 2016 compared to 4 per cent previously, despite a slight deceleration in the Asia-Pacific. The portion of wealth managed by wealth managers – estimated at about a third of total wealth – appreciated by a robust 24.3 per cent on average globally, Capgemini’s 2017 World Wealth Report has found.
SINGAPORE REAL ESTATE
Govt to bring forward another S$700m of construction jobs
Recognising that the construction sector is undergoing a difficult time, the government is looking at measures to help local SME (small and medium enterprise) contractors, including bringing forward S$700 million in construction projects. This is on top of the S$700 million worth of public infrastructure projects that the government is bringing forward to 2017 and 2018, as announced during the Budget this year, bringing the total amount to S$1.4 billion.
Singapore home prices seen reversing after a long downward trend
For the first time in four years, more analysts seem to be agreeing that the Singapore property market is at an inflection point, and on the cusp of recovery. In a report on Thursday, OCBC Investment Research noted that the Urban Redevelopment Authority’s (URA) third-quarter price index is poised to rebound, marking the end of the Singapore housing bear
Completed condo prices in August see first year-on-year rise since October 2013
Prices of completed non-landed private homes in August rose for the first time in nearly four years on a year-on-year basis, according to flash estimates released by the National University of Singapore’s Institute of Real Estate Studies on Thursday (Sept 28). Its Singapore Residential Price Index (SRPI) showed prices of these completed properties, which are mostly resale condominiums, increased 0.8 per cent in August from a year ago – the first time they have done so since October 2013.
Prime office rents to jump 15.8% over three years: Knight Frank
Singapore’s prime office rents are expected to rise 15.8 per cent over the next three years as demand starts to exceed supply, Knight Frank experts said at the release of the fourth edition of the Global Cities report. This projected average growth pace for Grade A and A+ buildings in the Raffles Place and Marina Bay area could put Singapore in third position among 15 markets in the Asia-Pacific after Manila and Brisbane, where prime office space rents are expected to increase by 19.1 per cent and 16.5 per cent respectively from 2018 to 2020.
Construction firms upbeat about new tender criteria
Construction firms are hopeful that new tender criteria that place greater emphasis on quality rather than price will raise industry standards and minimise price wars. The quality component of a tender will now be given greater weighting – 40 per cent to 60 per cent, Minister for National Development Law-rence Wong said yesterday. This is up from the usual 30 per cent. This means the Government will scrutinise a firm’s past performance, productivity and safety record more tho-roughly before awarding a contract.
Bids for Florence Regency come in below independent valuation
Florence Regency, a privatised HUDC estate in Hougang, received three bids at the close of its public tender. But the collective sales committee was not able to award the tender to the top bidder as the bid price, while above the reserve price of S$600 million, was below valuation, BT understands. A valuation report was submitted by independent valuer Colliers International that valued the estate at S$629 million.
Beach Road shaping up to be a Quek and Kwek playground
A tie-up between GuocoLand and its Hong Kong-listed parent Guoco Group is poised to build a plush office, residential and retail project near City Developments-IOI’s South Beach – putting Malaysian tycoon Quek Leng Chan’s project near that of his City Developments (CDL) cousin Kwek Leng Beng’s. The Urban Redevelopment Authority tender for the two-hectare Beach Road commercial site, which closed on Thursday, drew five bids. GuocoLand-Guoco Group’s S$1.622 billion top bid works out to S$1,706.30 per square foot per plot ratio (psf ppr).
Koh Brothers unit makes tunnelling debut with S$520m PUB job
A subsidiary of Catalist-listed Koh Brothers Eco Engineering marked its first foray into tunnelling by clinching a S$520 million contract from PUB in collaboration with its joint venture partner Penta-Ocean Construction Co Ltd. The contract won by Koh Brothers Building & Civil Engineering Contractor Pte Ltd (KBCE) and Penta-Ocean is for the Deep Tunnel Sewerage System (DTSS) Phase 2 project.
UOL associate to buy Nanak Mansions for S$201m
An associated company of UOL Group is set to purchase en bloc the freehold property of Nanak Mansions at S$201.08 million after putting in a winning bid in a tender. JLL’s senior consultant Karamjit Singh said that the tender for Nanak Mansions attracted six bids. “The developers found the site very attractive, with its prime Meyer Road address, a large park next door, and an MRT station close by.”
Mencast, FEG seek cash from asset deals
Two listed offshore and marine (O&M) counters, Mencast Holdings and Falcon Energy Group (FEG) are looking to seal asset deals in a bid to cash up to tide over a protracted industry downturn. Mencast said after Thursday trading close that it is in early-stage exploratory discussions with unnamed parties over the divestment of its assets. It clarified that no definitive agreement or contract has been signed. FEG said that it is looking to complete the sale and leaseback by Oct 2 of non-core assets, #15-19 and #22-14, 10 Anson Road, International Plaza.
APAC Realty surges above IPO price on its debut day
Shares in APAC Realty Ltd surged to an intra-day high of S$0.775 on brisk trades in the counter following the initial public offering (IPO) of the real estate player, which operates under the ERA brand. This is 11.5 Singapore cents above its IPO price of S$0.66 per share. APAC Realty ranked as the third most actively traded stock on Thursday on the Singapore Exchange, with over 39.3 million shares changing hands.
Roxy-Pacific buys Auckland office tower for NZ$63m
Real estate developer Roxy-Pacific Holdings announced on Thursday that it will acquire NZI Centre in Auckland, New Zealand, for some NZ$63 million (S$61.7 million), excluding taxes. The proposed acquisition will be made through its subsidiary, Roxy-Pacific NZI, the set-up of which was announced on Sept 22. NZI Centre is a commercial office building located at 1 Fanshawe Street on the western side of Auckland’s Central Business District.
Aspen to fork out RM66.7m for Kajang land
Malaysia-based property development group Aspen (Group) Holdings said after Thursday trading close that it has entered into a sale and purchase agreement for some 22,954 square metres of freehold land for over RM66.71 million (S$21.4 million). The agreement was signed on Sept 28 between its wholly owned subsidiary, Aspen Vision Development (Central) and privately-held Tropicana Kajang Hill.
Soilbuild to bolster procurement unit equity by S$8.5m
Soilbuild Construction Group said after Thursday’s trading close that it has bolstered the equity of a wholly-owned subsidiary by S$8.5 million. Soilbuild said that it has subscribed another 8.5 million shares in SB Procurement Pte Ltd at an aggregate consideration of S$8.5 million. This brings the group’s total equity injection into SB Procurement to S$15 million.
Asia’s first YOTEL opens in Singapore
YOTEL, the global chain of microhotels inspired by Japanese capsule hotels but infused with a sense of compact luxury, opens its first property in Asia on Sunday – right in the heart of Orchard Road. The 30-floor YOTEL Singapore has 610 rooms, called “cabins”, each equipped with adjustable Smartbed, technowall and smart TV. The hotel promises to provide guests with “everything they need and nothing they don’t”.
VIEWS, REVIEWS & FORUM
Powering the Smart City vision through the use of visual analytics
The impression many people hold of an Asian city is one of unplanned, unregulated and uncontrolled growth. Whether this is fair comment or not, the rapid and increasing pace of urbanisation across the region means Asian cities have no choice but to become more organised and efficient. Improved management of every aspect of city life – from socio-economic issues to the provision of infrastructure, the delivery of public services and the ensuring of public safety and security – is essential if Asia’s vast urban conglomerations are to fulfil their potential.
Electronics transformation map can make all manufacturing in Singapore Industry 4.0 ready
Last week’s launch of the Electronics Industry Transformation Map (ITM) by Minister for Trade and Industry (Industry) S Iswaran has been welcomed by the electronics cluster as a step in the right direction to prepare the sector for the changes that are sweeping through it, thanks to Industry 4.0. Within the manufacturing sector, an ITM for the precision engineering cluster was launched last year.
GLOBAL ECONOMY & GLOBAL REAL ESTATE
Q2 GDP revised higher; hurricanes slow Q3 growth momentum
Airbnb enters restaurant reservation business
London skyscrapers draw highest rents in Europe despite Brexit
Euro-area economic confidence beats forecast
Chinese Money Is Still Leaking Into the World’s Housing Markets
China’s Developers Swing Wildly After World-Beating Gains in ’17
Luxury back in vogue in China but this time women, middle class lead the way
This $9.1 Billion Korean Fund Is Eyeing Europe Student Housing
Japan inflation ticks up again, but way off target
ADDITIONAL ARTICLES OF INTEREST – LOCAL & OVERSEAS REAL ESTATE
Local & Overseas Real Estate – Full Article