DAILY NEWS

Daily News – 29th December 2017

Top Story

Brighter economic outlook for 2018, but concerns remain
Singapore’s economy has staged a dramatic turnaround over the past year, going from the cusp of recession to its fastest pace of growth in almost a half-decade. This strong showing is fuelling optimism among economists, corporates and market watchers about growth prospects for 2018. Much of the lift has come from surging global demand for electronic gadgets, which is expected to continue driving growth in the new year.
http://www.businesstimes.com.sg/government-economy/brighter-economic-outlook-for-2018-but-concerns-remain
http://www.businesstimes.com.sg/infographics/6-risks-to-singapore%E2%80%99s-economy-in-2018

Singapore Economy

Study finds evidence of class divide in Singapore
The sharpest social divisions in Singapore may now be based on class, instead of race or religion, a study released yesterday suggests. The Institute of Policy Studies’ (IPS) Study On Social Capital In Singapore shows that Singaporeans who live in public housing have, on average, about one friend or fewer who lives in private housing.
http://www.straitstimes.com/singapore/study-finds-evidence-of-class-divide-in-singapore

Singapore Real Estate

The Wilshire launches en bloc sale; guide price at S$1,525 psf ppr
The tender for the collective sale of the freehold The Wilshire along Farrer Road has been launched. Savills Singapore, the marketing agent for the District 10 property’s collective sale, said that the indicative guide price is S$98.07 million, which works out to S$1,525 per square foot per plot ratio (psf ppr) based on the existing gross floor area (GFA) of 64,310 sq ft.
http://www.businesstimes.com.sg/real-estate/the-wilshire-launches-en-bloc-sale-guide-price-at-s1525-psf-ppr

IRS sets limited conditions for prepayment of property taxes
The Internal Revenue Service (IRS) announced on Wednesday (Thursday morning, Singapore time) that US taxpayers could prepay their 2018 property taxes only if they have already received a tax assessment from their local government and they make payment by Dec 31 this year. The announcement both clarifies who can prepay property taxes but also threatens to create confusion in state and localities across the country where taxpayers have been rushing all week to prepay property taxes after US President Donald Trump signed into law a new Republican tax bill before Christmas.
http://www.businesstimes.com.sg/real-estate/irs-sets-limited-conditions-for-prepayment-of-property-taxes

Hillview, Sengkang private housing sites up for tender
The Urban Redevelopment Authority (URA) on Thursday launched two sites that will provide new private housing at Sengkang Central and Hillview Rise for sale by public tender. The two sites come under the confirmed list of the second half 2017 Government Land Sales (GLS) programme.
Together, the two sites can potentially yield about 1,235 residential units, the URA said.
http://www.businesstimes.com.sg/real-estate/hillview-sengkang-private-housing-sites-up-for-tender
http://www.straitstimes.com/business/property/hillview-rise-sengkang-central-sites-up-for-tender

Reits reign as investors continue yen for yields
Singaporean investors are not known for being romantics. But in yield stocks, they have found the love affair of a lifetime. Income plays, notably real estate investment trusts (Reits), continue to be snapped up as Singapore stocks head for the finish this year. The FTSE ST Reit Index hit a new high yesterday, and is at levels not seen since May 2013. That was before the “taper tantrum” began on worries around US tightening of its monetary policy.
http://www.straitstimes.com/business/companies-markets/reits-reign-as-investors-continue-yen-for-yields

Companies’ Brief

CapitaLand, Lum Chang buy Frankfurt office building for 234.3m euros in cash
A joint venture between CapitaLand and Lum Chang Holdings has acquired an office building in Frankfurt for 234.3 million euros (S$375.1 million) in cash. CapitaLand, a real estate developer, holds 94.9 per cent of the joint venture and paid 222.3 million euros of the consideration. Lum Chang, a construction company, holds the remaining 5.1 per cent. The freehold, multi-tenanted building known as Main Airport Center will be CapitaLand’s first office building in Germany.
http://www.businesstimes.com.sg/real-estate/capitaland-lum-chang-buy-frankfurt-office-building-for-2343m-euros-in-cash
http://www.straitstimes.com/business/capitaland-and-lum-chang-buy-office-building-in-frankfurt

Soilbuild Reit sells Tuas property for S$55 million
The trustee of Soilbuild Business Space Reit has on Thursday signed a put and call option agreement to divest to SB (Pioneer) Investment its Tuas property, commonly known as KTL Offshore after its tenant, for S$55 million. The buyer is a wholly owned subsidiary of Soilbuild Group Holdings, which is the sponsor of Soilbuild Reit.
http://www.businesstimes.com.sg/companies-markets/soilbuild-reit-sells-tuas-property-for-s55-million

Views, Reviews & Forum

GST and the digital economy – some possible effects
During his Budget speech in February, Finance Minister Heng Swee Keat said the government has been studying ways to apply the Goods and Services Tax (GST) to the digital economy. The issue came under the spotlight again recently after Prime Minister Lee Hsien Loong spoke about the need to raise taxes as government spending on investments and social services continues to grow.
http://www.businesstimes.com.sg/opinion/gst-and-the-digital-economy-some-possible-effects