The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 29th November 2017

Top Story

Redas proposing formal joint panel with lead govt agency
The industry body representing real estate players in Singapore is lobbying for a greater say in government policies and initiatives through a proposed joint committee with a lead government agency.  The Real Estate Developers’ Association of Singapore (Redas) hopes to have a formalised platform for regular dialogues with the government through an agency such as the Urban Redevelopment Authority (URA), on issues affecting the real estate sector, such as how to sustain its growth.

Singapore Economy

GST hike – by how much and how soon?
The Goods and Services Tax (GST) is likely to be raised by two percentage points in the coming years as Singapore’s spending needs continue to grow, according to DBS senior economist Irvin Seah.  While the announcement could come as soon as Budget 2018, Mr Seah expects a staggered hike implemented over two years to help cushion the impact on households.

Singapore shoppers prefer to pay with card-linked apps, wallets
Credit card holders here are increasingly using card-linked mobile apps or wallets for their purchases, according to a survey by research firm JD Power.  The study found that with so many payment options available, the credit card remains Singapore’s most popular mode of payment at stores and restaurants, and for online purchases.

Singapore Real Estate

Completed condo prices up 0.6% in October from September: NUS index
Prices of completed private apartments and condos in Singapore rose 0.6 per cent in October compared to the previous month. This is according to the National University of Singapore’s (NUS) latest flash estimates for its Singapore Residential Price Index (SRPI) released on Tuesday.

3rd time’s a charm for How Sun Park en bloc
A subsidiary of SingHaiyi Group Ltd has been awarded the How Sun Park site for S$81.09 million through a collective sale.  The price works out to S$1,092 per square foot per plot ratio (psf ppr), inclusive of an estimated development charge of S$2.92 million.

JTC launches 2 sites each from confirmed, reserve lists
JTC has launched two sites from the confirmed list at Tampines North Drive 3 (Plot 2) and Tuas South Link 3 (Plot 27), and two reserve list sites at Woodlands Height and Woodlands Industrial Park E7/E8 under the second half 2017 Industrial Government Land Sales (IGLS) programme.  This is the sixth and seventh out of eight confirmed list sites and the fourth and fifth out of six reserve list sites for the second half of 2017.

Tighter rules to ensure safety of facades
Building managers could be required to conduct regular inspections of windows, cladding and other external facade features as the Government looks into tightening rules after concerns over safety.  Currently, there is no requirement for building managers to inspect facades for flaws, defects and wear. In recent months, there have been several cases in which cladding or other exterior features failed or fell off buildings.

Companies’ Brief

CRCT, CapitaLand to buy RMB3.36b mall in Guangzhou
CapitaLand and its sponsored real estate investment trust CapitaLand Retail China Trust (CRCT) have formed a joint venture (JV) to acquire all the shares in a company that owns Rock Square mall in Guangzhou’s Haizhu District.  The total purchase consideration payable is about RMB3.36 billion (S$688.9 million).  The transaction is expected to be completed by Q1 2018.

Next change at Cathay: Focus on group’s property business
Cathay Organisation’s recent sale of its iconic cinema brand to mm2 Asia will leave it free to focus on the company’s property business, its managing director Choo Meileen said on Tuesday.  She said at a joint press conference on Tuesday: “We did sell our logo, the cinema logo, to mm2 as well, so we will rebrand our logo, and I think we will concentrate on our properties.”  Cathay Organisation’s real estate portfolio includes The Cathay, a national monument, in Handy Road, and the Cathay Cineleisure Orchard mall.

Centurion to offer 36m shares at up to HK$3.30 in secondary HK listing
Centurion Corp will offer 36 million shares at up to HK$3.30 apiece in a secondary Hong Kong listing, it announced on Wednesday before the Singapore market opened.  The shares will be priced no lower than HK$3 per share, the company said.  Centurion’s offering is split into a six million-share public tranche and the remaining 30 million shares in a placement tranche.

Yoma awards building contracts worth over US$400m for new Yangon developments
Yoma Strategic Holdings on Wednesday announced the signing of an agreement with two global construction companies to build its integrated real estate development Yoma Central, and The Peninsula Yangon, the former headquarters of the Burma Railway Company which will be restored into a luxury hotel.

Ying Li divests 3.3b yuan stake in Chongqing CBD project
Mainboard-listed Chinese property developer Ying Li International Real Estate said on Tuesday that it is selling its stake in a project in Chongqing’s central business district to Shengyu (BVI) – part of China Evergrande Group – for 3.29 billion yuan (S$671.9 million).

Amplefield swings to S$637,000 loss in FY17 after completing Philippine project
Catalist-listed Amplefield Ltd posted a net loss of S$637,000 in fiscal 2017, down from a net profit of S$3.32 million the year before, the property developer and facilities provider said late Tuesday.  Loss per share was 0.18 Singapore cent for the year ended Sept 30, down from year-ago earnings of 0.96 Singapore cent per share. Net asset value per share slipped to 10.65 Singapore cents as at Sept 30, from 11.03 Singapore cents in a year ago. Amplefield shares closed at S$0.044 on Tuesday.

Perennial China Investments incorporates fellow subsidiary
Integrated real estate and healthcare company Perennial Real Estate Holdings Ltd (Perennial) announced on Tuesday that its Perennial China Investments Holdings subsidiary has incorporated another of the group’s wholly-owned subsidiaries, Peng Xi (Beijing) Eldercare Co Ltd.

Lian Beng subsidiary bags S$136.8m contract for proposed development at Potong Pasir
A wholly-owned subsidiary of Catalist-listed construction contractor and developer Lian Beng Group Ltd has secured a contract for construction works on a proposed condominium development in Singapore.  The S$136.8 million contract was secured by subsidiary Lian Beng Construction (1988) Pte Ltd through a tender from UVD (Projects) Pte Ltd.

Hong Kong’s Link REIT agrees to dispose properties worth nearly HK$23b
Hong Kong’s Link Real Estate Investment Trust, one of Asia’s largest REIT by market capitalisation, has agreed to sell its properties valued at HK$23 billion (S$3.9 billion), it said on Tuesday.  Link REIT, which owns assets in Hong Kong, Beijing, Shanghai and Guangzhou as of end-March, is expected to take in net gains of about HK$7.39 billion from the disposals, it said in a filing to the Hong Kong stock exchange.

Building new capabilities
Hua Siah Construction has been busy in recent years putting in place new technologies that can help improve its efficiency and reduce its reliance on manpower.  Since 2014, for instance, the company has been using 3D modelling and design visualisation technologies to manage its projects more effectively.

Views, Reviews & Forum

What next for the Capitol project?
After the Court of Appeal two weeks ago threw out Perennial Real Estate Holdings’ application to wind up its joint entities with Capitol Singapore co-developer Pontiac Land, both sides have been left with two options – neither of them easy.  The winding-up application, if it had been successful, would have allowed a buyer to swoop in and take the entire development – its retail mall, residential development, hotel and the refurbished theatre – off the hands of the two developers.

Global Economy & Global Real Estate

Bright outlook for risk assets in 2018

US retailers go from targeting deal seekers to those yet to buy

As Brexit nears, new London office construction slows

London homes less affordable than ever at 14.5 times earnings

Crunch looms as house correction puts some Canadians under water

Tokyo maintains moderately upbeat view on economy

OECD sees growth peaking at 8-year high next year as investment lags and debt builds

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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