DAILY NEWS

Daily News – 1st, 2nd and 3rd September 2018

Top Story

GDP still vital tool, but new ways needed to take Singapore’s pulse
The gross domestic product (GDP) may be a country’s most closely-watched key performance indicator, but economists said it might be time to start paying more attention to other ways of measuring the well-being of Singaporeans.
https://www.businesstimes.com.sg/government-economy/gdp-still-vital-tool-but-new-ways-needed-to-take-singapores-pulse

Valuations of property stocks down, but it’s not time to jump in yet
Following the July 6 measures to preempt runaway prices in the Singapore housing market, valuations of real estate stocks have fallen somewhat. But analysts caution against jumping in too quickly, unless the counter is a diversified play.
https://www.businesstimes.com.sg/real-estate/valuations-of-property-stocks-down-but-its-not-time-to-jump-in-yet

Development charge hikes set to ease collective sale fervour
The collective sales market in some prime areas will likely be further dampened by the higher development charges (DC) for non-landed residential use announced yesterday, said property consultants. The rates, which are assessed every six months, are payable by developers seeking to enhance the use of a site or build a bigger project on it.
https://www.straitstimes.com/business/property/development-charge-hikes-set-to-ease-collective-sale-fervour

Singapore Economy

Price-quality evaluation to be default approach for govt procurement tenders
The government will look beyond the lowest quote and use price-and-quality evaluation instead as the default approach for public tenders, as it upgrades its procurement regime to promote innovation. But Minister for Education Ong Ye Kung, who unveiled the changes on Friday, underscored that the guiding principles of value-for-money purchases and transparent, objective processes behind government procurement will not change.
https://www.businesstimes.com.sg/government-economy/price-quality-evaluation-to-be-default-approach-for-govt-procurement-tenders

Singapore Real Estate

Cushman appoints Dennis Yeo as CEO for Singapore, S-E Asia
Property veteran Dennis Yeo has been appointed chief executive of Cushman & Wakefield Singapore and South-east Asia. Mr Yeo will begin helming the property consultancy in December. His appointment comes after Steve Saul, former managing director for Cushman & Wakefield Singapore, retired in February 2018, according to the consultancy.
https://www.businesstimes.com.sg/real-estate/cushman-appoints-dennis-yeo-as-ceo-for-singapore-s-e-asia

Non-landed DC rates up 9.8% for fifth straight increase
The development charge (DC) rate for redeveloping land has been hiked for non-landed private homes for the fifth straight time, although watchers said that future increases could taper off as property-cooling measures put the lid on the collective-sale frenzy.
https://www.businesstimes.com.sg/real-estate/non-landed-dc-rates-up-98-for-fifth-straight-increase
https://www.businesstimes.com.sg/real-estate/development-charge-rates-raised-by-an-average-of-98-for-non-landed-residential-land-use
https://www.straitstimes.com/business/property/development-charge-rates-hiked-by-98-for-non-landed-residential-land-use

Reits
https://www.businesstimes.com.sg/real-estate/reits-29

AI eyed to help bring lift maintenance to a higher level
A “fresh pair of eyes” to look at an age-old problem: How to better predict when a lift is going to break down, or when it is in urgent need of servicing to prevent a malfunction? That is the problem Surbana Jurong is hoping to solve as it monitors 25,000 lifts under its charge.
https://www.channelnewsasia.com/news/technology/ai-lift-maintenance-artificial-intelligence-training-programme-10671366

Kampung Admiralty wins HDB design, construction awards
Kampung Admiralty, the pioneering retirement community recently lauded by Prime Minister Lee Hsien Loong in his National Day message, has won two awards in design and construction, announced the Housing and Development Board (HDB) on Sunday (Sep 2).
https://www.channelnewsasia.com/news/singapore/hdb-kampung-admiralty-hdb-punggol-waterway-bukit-batok-10676450

31 projects win HDB awards, including ‘rustic’ themed Waterway View at Punggol
Its rustic “kelong” (Malay for fishing jetty) theme has blocks in the Waterview View estate fitted with a facade mimicking wooden planks, and the use of stilt-like columns along outdoor corridors — inspired by Punggol’s early beginnings as a kelong.
https://www.todayonline.com/singapore/31-projects-win-hdb-awards-including-rustic-themed-waterway-view-punggol

No word on Malaysia’s proposal for a third link to Pulau Ubin: Desmond Lee
The Republic has not received any proposal from the Malaysian government for a third link to Singapore via Pulau Ubin, said Minister for Social and Family Development Desmond Lee.
https://www.todayonline.com/singapore/no-news-malaysias-proposal-third-link-pulau-ubin-desmond-lee

HDB flat an appreciating asset, but value will not increase as fast as S’pore’s economy matures: Khaw
Amid spirited public debate on the lease expiry of public housing flats, Coordinating Minister for Infrastructure Khaw Boon Wan stressed on Sunday (Sep 2) that Housing and Development Board (HDB) flats are an appreciating asset, although the increase would not be “as sharp as” in the past due to moderating economic growth in Singapore.
https://www.todayonline.com/singapore/hdb-flat-appreciating-asset-value-will-not-increase-fast-spores-economy-matures-khaw

Companies’ Brief

Sabana Reit issues termination notice to tenant over S$2.14m in rental defaults
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) announced it had issued a notice of termination on Aug 31 to Adviva Distribution, the tenant at 10 Changi South Street 2, due to the tenant’s “failure to pay rent and other sums payable” under the lease agreement.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-issues-termination-notice-to-tenant-over-s214m-in-rental-defaults
https://www.straitstimes.com/business/companies-markets/sabana-reit-gives-notice-of-termination-to-tenant-over-214m-in-rent

ESR-Reit, Viva Industrial Trust request lifting of trading halt after merger gets nod
ESR-REIT requested a lift of its trading halt on Monday morning before trading hours began, days after unitholders approved a merger with Viva Industrial Trust that brings the real estate investment trust (Reit) closer towards becoming Singapore’s fourth-largest industrial property trust.
https://www.businesstimes.com.sg/companies-markets/esr-reit-viva-industrial-trust-request-lifting-of-trading-halt-after-merger-gets
https://www.straitstimes.com/business/companies-markets/esr-reit-viva-industrial-trust-request-lifting-of-trading-halt-after

FLT acquires two prime Australian properties for A$62.6m
Frasers Logistics & Industrial Trust (FLT) has acquired two prime industrial properties in Australia from Frasers Property Australia Pty Limited, a wholly-owned subsidiary of sponsor Frasers Property Limited for a total of A$62.6 million (S$62.3 million).
https://www.businesstimes.com.sg/companies-markets/flt-acquires-two-prime-australian-properties-for-a626m

ESR-Reit unitholders approve Viva Industrial Trust merger
Unitholders of ESR-Reit on Friday approved a merger with Viva Industrial Trust, sending the real estate investment trust a step closer towards the creation of Singapore’s fourth-largest industrial property trust.
https://www.businesstimes.com.sg/companies-markets/esr-reit-unitholders-approve-viva-industrial-trust-merger
https://www.straitstimes.com/business/companies-markets/esr-reit-unitholders-approve-merger-with-viva-industrial-trust
https://www.straitstimes.com/business/companies-markets/company-briefs-esr-reit-0

Nets appoints OCBC COO Ching Wei Hong as next chairman
OCBC Bank chief operating officer Ching Wei Hong will be the next chairman of electronic funds transfer group Nets, beginning Sept 1. He replaces Tan Su Shan, managing director and group head of wealth management and consumer banking at DBS Bank, who will remain a board director of Nets.
https://www.businesstimes.com.sg/companies-markets/nets-appoints-ocbc-coo-ching-wei-hong-as-next-chairman
https://www.businesstimes.com.sg/banking-finance/nets-appoints-ocbc-coo-ching-wei-hong-as-next-chairman

Keppel partners Chinese group to help rural poor
Keppel Corporation marked its 50th anniversary by launching a new partnership with the China Foundation for Poverty Alleviation (CFPA) at a commemorative dinner on Friday evening in Beijing.
https://www.straitstimes.com/business/companies-markets/keppel-partners-chinese-group-to-help-rural-poor

Keppel Corporation
Keppel Corporation’s wholly owned subsidiary, DC Reit Holdings, has signed a sale and purchase agreement to sell about 55.1 million units in Keppel DC Reit, representing about a 4.08 per cent stake, for S$74.96 million. The units were sold for at least S$1.36 per unit or any such higher price that UBS (as the placement agent) was able to procure, taking into account the last transacted price per unit of S$1.40, and the volume-weighted average price per unit of S$1.3986 for the full market day on Thursday.
https://www.businesstimes.com.sg/companies-markets/corporate-digest-737
https://www.straitstimes.com/business/companies-markets/kepcorp-sells-4-stake-in-dc-reit-for-75m

DBS prices Ascendas’ 7-year senior debt at 3.265%
DBS on Friday said it has priced S$200 million in seven-year senior debt for Ascendas at 3.265 per cent. The unsecured and unsubordinated notes come under the issuer’s S$3 billion euro medium term note programme. The notes will mature on Sept 6, 2025, and will be listed on the Singapore Exchange.
https://www.businesstimes.com.sg/companies-markets/dbs-prices-ascendas-7-year-senior-debt-at-3265
https://www.straitstimes.com/business/companies-markets/dbs-prices-ascendas-7-year-senior-debt-at-3265

VIEWS, REVIEWS, FORUM & Others

These fake islands could signal real economic trouble
Where is it that we’ve seen glittering archipelagos like Malaysia’s Forest City and Melaka Gateway developments before? Those stretches of newly packed white sand, dotted with palm trees, villas, marinas, high-end retail malls and office towers?
https://www.businesstimes.com.sg/real-estate/these-fake-islands-could-signal-real-economic-trouble

New network provides members with co-working spaces, business opportunities across Asia
Small enterprises in the arts, culture and creative industry can tap a new regional network for business opportunities and co-working spaces across Asia. The Millet World Trading Post (MWTP) network, which operates on a subscription basis, gives members access to a digital matching platform as well as physical co-working spaces, ancillary facilities, and events.
https://www.businesstimes.com.sg/companies-markets/new-network-provides-members-with-co-working-spaces-business-opportunities-across

A tale of one HDB flat across two generations
The redevelopment of ageing properties is an important stage in the life cycle of urbanised cities with limited land supply. For a small country like Singapore, when houses built in the country’s early years age, redevelopment becomes increasingly pertinent both from an economic and urban renewal perspective.
https://www.channelnewsasia.com/news/commentary/housing-hdb-ageing-flats-expiring-leases-homeownership-compact-10663280

More than 70,000 one- and two-room flats to get S$25 vouchers for LED lights
Over 70,000 households across Singapore are eligible to receive vouchers for LED lights for their homes as part of the “Switch and Save – Use LED” programme for one- and two-room Housing and Development Board (HDB) flats.
https://www.todayonline.com/singapore/more-70000-one-and-two-room-flats-get-s25-vouchers-led-lights

Lessons on regulating Airbnb from a UK city
The short-term rental market has ballooned in recent years. Airbnb listings in ten UK cities increased by almost 200 per cent between 2015 and 2017, according to one UK residential landlords’ association.
https://www.channelnewsasia.com/news/commentary/airbnb-regulations-short-term-rental-housing-hotel-property-10648236

Forest City project unlikely to be derailed, say experts
The overall development of Country Garden’s Forest City may slow slightly after Malaysia’s decision to examine foreign ownership in the largest residential project in Iskandar, but it will not be derailed as the developer and buyers have not broken any laws, consultants say.
https://www.straitstimes.com/asia/se-asia/forest-city-project-unlikely-to-be-derailed-say-experts

Johor’s Forest City golf course opens even as mega-project’s fate is unclear
A RM1.8 billion (S$599.6 million) golf resort and golf course at Forest City opened its doors to the public as at Sept 1, with Country Garden touting its economic benefits as the mega-project comes under scrutiny.
https://www.straitstimes.com/business/property/johors-forest-city-golf-course-opens-even-as-mega-projects-fate-is-unclear

Malaysian government working on Forest City project ownership guide
Malaysia will have clearer guidelines on foreign ownership in the multibillion-ringgit Forest City project, says Housing and Local Government Minister Zuraida Kamaruddin.
https://www.straitstimes.com/asia/se-asia/malaysian-government-working-on-forest-city-project-ownership-guide
https://www.straitstimes.com/asia/se-asia/kl-working-on-issuing-clearer-foreign-ownership-guidelines

City Harvest founder Kong Hee’s Sentosa Cove penthouse sold at a loss of over $2m
A luxury Sentosa Cove penthouse that City Harvest Church founder Kong Hee co-owned has finally been sold – three years after it was first put on the market. The buyer is Kenyan diplomat Neal Manilal Chandaria, whose family is in the process of moving in.
https://www.straitstimes.com/singapore/kong-hees-sentosa-cove-penthouse-sold-at-a-loss-of-over-2m