DAILY NEWS

Daily News – 1, 2 & 3 Feb (Sat, Sun & Mon)

Top Story

Developers’ worries about oversupply remain: Redas
Even as the private residential market appears to be stabilising in line with economic fundamentals, developers’ concerns over the upcoming supply and build-up of unsold inventory remain, Real Estate Developers’ Association of Singapore (Redas) president Chia Ngiang Hong said. “Although new home sales seem resilient, sales performance across the different projects and segments are uneven,” he said at Redas’ annual Spring Festival lunch yesterday.
https://www.straitstimes.com/business/developers-worries-about-oversupply-remain-redas
https://www.channelnewsasia.com/news/singapore/private-residential-property-market-expected-to-remain-resilient-12374342

Private home demand may see weakness on travel restrictions
Private home buying demand from Chinese investors may see some short-term weakness with the temporary entry ban into Singapore for all Chinese passport holders who are not residents here, as well as travellers who were in mainland China in the past fortnight amid the Wuhan virus outbreak.
https://www.businesstimes.com.sg/companies-markets/private-home-demand-may-see-weakness-on-travel-restrictions

‘Strong Budget’ to support economy amid virus outbreak: Lawrence Wong
Minister for National Development and Second Finance Minister Lawrence Wong said on Friday that the government is looking at a “strong Budget for 2020” to provide support to the economy, given the impact from the Wuhan virus outbreak. The Singapore Budget will be announced on Tuesday, Feb 18.
https://www.businesstimes.com.sg/government-economy/strong-budget-to-support-economy-amid-virus-outbreak-lawrence-wong

Singapore Real Estate

Parc Canberra executive condo launches, prices start from S$855,000
Parc Canberra, an executive condominium (EC) in Singapore’s north region, on Friday launched its sales gallery and online applications. Online applications are open till Feb 10. The booking of units will start on Feb 15. The average price for Parc Canberra units is about S$1,080 per square foot (psf), said its developer Hoi Hup Sunway Canberra, a joint venture between Hoi Hup Realty and Sunway Developments.
https://www.businesstimes.com.sg/real-estate/parc-canberra-executive-condo-launches-prices-start-from-s855000

Singapore Economy

Housing loans shrink for 12th straight month in December
Housing loans in Singapore shrank for the 12th straight month in December, leading to a fall in total consumer loans, preliminary Monetary Authority of Singapore (MAS) data showed on Friday. On a month-to-month basis, housing loans, which account for three-quarters of consumer lending,
https://www.businesstimes.com.sg/companies-markets/housing-loans-shrink-for-12th-straight-month-in-december

Manufacturers’ business sentiment improves; service sectors less upbeat
Companies in Singapore’s manufacturing sector expect business conditions to improve in the first half of 2020, although the services sector is less optimistic. This is according to separate surveys by the Economic Development Board of Singapore (EDB) and the Singapore Department of Statistics (SingStat) released on Friday.
https://www.businesstimes.com.sg/companies-markets/manufacturers-business-sentiment-improves-service-sectors-less-upbeat
https://www.straitstimes.com/business/economy/manufacturers-more-upbeat-on-1st-half-outlook

Wuhan virus likely to have ‘much wider and deeper impact’
THE Wuhan virus outbreak is likely to have a much wider and deeper impact on the world economy than the severe acute respiratory syndrome (Sars) episode of 2003, and Singaporeans need to be mentally prepared for this, said Minister for Trade and Industry Chan Chun Sing on Sunday.
https://www.businesstimes.com.sg/government-economy/wuhan-virus-likely-to-have-much-wider-and-deeper-impact
https://www.straitstimes.com/singapore/health/key-focus-on-protecting-jobs-and-helping-businesses-chan

Budget 2020: A game changer for Singapore’s climate policies?
As Climate change increasingly occupies public discourse in Singapore, observers are expecting it to feature more strongly in Budget 2020, alongside the government’s priorities in business restructuring and social spending.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/budget-2020-a-game-changer-for-singapores-climate-policies

DPM Heng to give outline of Budget moves to mitigate virus impact
Three weeks before the national Budget, Deputy Prime Minister Heng Swee Keat is already on his way to outlining the support that businesses can expect, as Singapore digs in for a tough time from the impact of the Wuhan virus outbreak on growth.
https://www.businesstimes.com.sg/government-economy/dpm-heng-to-give-outline-of-budget-moves-to-mitigate-virus-impact

Targeted help for transport, tourism sectors worst hit by Wuhan virus outbreak in Budget 2020
The transport and tourism sectors, worst hit by the coronavirus situation, will get targeted help in the coming Budget on top of broader measures to address any wider economic slowdown, Deputy Prime Minister Heng Swee Keat said yesterday.
https://www.straitstimes.com/singapore/targeted-help-for-transport-tourism-sectors-in-budget

Companies’ Brief

Ascendas Reit Q3 DPU down 12.3% on enlarged base following rights issue
Ascendas Reit’s distribution per unit (DPU) for its third quarter fell 12.3 per cent to 3.507 Singapore cents due to an enlarged number of units in issue after a rights issue in December last year. Gross revenue for the quarter under review rose 5.9 per cent from a year earlier to S$239.73 million,
https://www.businesstimes.com.sg/companies-markets/ascendas-reit-q3-dpu-down-123-on-enlarged-base-following-rights-issue

AA Reit posts flat Q3 DPU of 2.5 Singapore cents
Aims Apac Reit’s (AA Reit) distribution per unit (DPU) for the third quarter ended Dec 31 amounted to 2.5 Singapore cents, unchanged from a year ago. Gross revenue was down 1.2 per cent at S$29.5 million for the quarter, from S$29.8 million previously, it said in a statement on Friday.
https://www.businesstimes.com.sg/companies-markets/aa-reit-posts-flat-q3-dpu-of-25-singapore-cents

Resources Global debuts with 10% premium over IPO price
The Singapore bourse on Friday saw its first trading debut of an initial public offering (IPO) for the year, with Resources Global Development (RGD) closing at S$0.22 on the Catalist board. The closing price is 10 per cent above the IPO price of S$0.20. The counter had opened at S$0.21.
https://www.businesstimes.com.sg/companies-markets/resources-global-debuts-with-10-premium-over-ipo-price

Views, Reviews, Forum & Others

Critical to have Business Continuity Plans in place
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
Striking the right balance between ”business as usual” and ”taking care of the risks” requires a clear and accurate understanding of the ”enemy” we are facing. It is good that Ministry of Health and various ministries/agencies are closely tracking developments of the threat, the risks it poses and its severity level, and updating businesses and the public continually.
https://www.businesstimes.com.sg/views-from-the-top/critical-to-have-business-continuity-plans-in-place

Real estate investing in the Year of the Rat
Asian markets have just ushered in the Year of the Rat, marking the beginning of another 12-year zodiac cycle. The Year of the Pig in 2019 saw global growth trudge to a multi-year low, as heightened uncertainties arising from trade and geopolitical tensions reversed the general momentum observed at the start of the year.
https://www.straitstimes.com/business/invest/real-estate-investing-in-the-year-of-the-rat