DAILY NEWS

Daily News – 03 Jan 2020

Singapore Real Estate

Private home prices expected to rise this year after 2.5% gain in 2019
Prices of private homes in Singapore are expected to rise by between 1 and 5 per cent this year, analysts say, after clocking a 2.5 per cent gain in 2019. At 2.5 per cent, the price growth moderated from the 7.9 per cent clip in 2018, the Urban Redevelopment Authority’s (URA) flash estimate showed.
https://www.businesstimes.com.sg/real-estate/private-home-prices-expected-to-rise-this-year-after-25-gain-in-2019
https://www.straitstimes.com/business/private-home-prices-up-last-year-but-fall-short-of-2018-pace

CBD Grade A office rentals likely to be flat this year
Property consultants are generally expecting Grade A office rentals in the Central Business District (CBD) to be flattish this year, after this segment posted slower growth in 2019 than in 2018. JLL Singapore’s head of research and consultancy, Tay Huey Ying said: “Clouded business prospects and subdued growth in Singapore’s economy will provide little impetus for rent growth for the most part of 2020.”
https://www.businesstimes.com.sg/real-estate/cbd-grade-a-office-rentals-likely-to-be-flat-this-year

Singapore developers to deliver strong ROE for FY2020-21: DBS Research
Mong key trends in 2020, Singapore’s developers are projected to deliver strong return on equity (ROE) for fiscal 2020-2021. This comes on the back of recent mergers and acquisitions (M&As), as well as continued asset recycling activities, DBS Group Research said in an industry note on Thursday. With the M&A deals contributing from 2020 onwards, the brokerage is anticipating an improvement in ROEs. Asset recycling activities, meanwhile, will raise net asset value.
https://www.businesstimes.com.sg/companies-markets/singapore-developers-to-deliver-strong-roe-for-fy2020-21-dbs-research

Ultra-luxury River Valley condo opens for previews
Previews start for the ultra-luxury Avenir condominium in the prime River Valley area at 6pm today. The freehold complex will have 376 units across two 36-storey towers, with two levels of basement parking, a 50m lap pool, a hydrotherapy pool and a bicycle park, among other facilities.
https://www.straitstimes.com/business/property/ultra-luxury-river-valley-condo-opens-for-previews

Singapore Economy

Decade-low growth in 2019 clouds 2020 forecasts for Singapore GDP
While Singapore’s 2019 economic growth was in line with economists’ expectations, it is the worst showing in 10 years, leaving economists divided on the extent of recovery that 2020 would bring. Full-year gross domestic product (GDP) in 2019 was 0.7 per cent, according to advance estimates from the Ministry of Trade and Industry (MTI) on Thursday, as predicted by a Monetary Authority of Singapore (MAS) poll of economists released early last month.
https://www.businesstimes.com.sg/government-economy/decade-low-growth-in-2019-clouds-2020-forecasts-for-singapore-gdp
https://www.straitstimes.com/business/economy/singapores-economy-grows-07-in-2019-flash-data
https://www.channelnewsasia.com/news/business/singapore-economy-gdp-2019-q4-mti-12226222
https://www.todayonline.com/singapore/singapores-economic-growth-slows-07-2019-mti-flash-data

Companies’ Brief

CDLHT hotel deals ‘not prejudicial’ to securityholders’ interests: IFA
CDL Hospitality Trusts’ (CDLHT) two proposed hotel transactions are both on normal commercial terms, according to independent financial adviser Deloitte & Touche Corporate Finance. The proposed redevelopment of Novotel Singapore Clarke Quay as well as the potential acquisition of W Singapore in Sentosa Cove are “not prejudicial” to the interests of CDL Hospitality Real Estate Investment Trust (H-Reit)…
https://www.businesstimes.com.sg/companies-markets/cdlht-hotel-deals-not-prejudicial-to-securityholders-interests-ifa

Refurbishments at AA Reit’s NorthTech boost value to S$116.5m
The manager of Aims Apac Reit (AA Reit) on Thursday announced that the base contract for the refurbishment at its industrial property NorthTech has been completed within budget. The enhancement works have also raised the property’s value to S$116.5 million as at Jan 2, 2020, as valued by Savills Valuation and Professional Services, compared to S$102 million as valued at end-March 2018 by Colliers International Consultancy & Valuation (Singapore).
https://www.businesstimes.com.sg/companies-markets/refurbishments-at-aa-reits-northtech-boost-value-to-s1165m