The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 31st January 2018

Top Story

Multiple tender closings, but bids still bullish
The Urban Redevelopment Authority’s batched tender exercise, or simultaneous tender closings, for three 99-year private housing sites does not seem to have tempered bullish bids by developers, say some property consultants.  In the exercise which closed on Tuesday, property giant City Developments Ltd (CDL) emerged as the top bidder for two of the three sites.

Singapore Economy

EDB forecasts S$8-10b in fixed-asset investments for 2018
Investment commitments in Singapore held steady last year at S$9.4 billion, similar to 2016 levels and within the Economic Development Board’s (EDB) forecasts.  This year, Singapore is once more expected to attract between S$8 billion and S$10 billion in fixed-asset investments (FAI), though fewer jobs are expected to be created, the EDB said at its annual year-in-review briefing on Tuesday.

MAS mopping up excess liquidity amid decline in interest rates
The plunge in short-term local interest rates has prompted the regulator to mop up excess liquidity by increasing the size of its bill auctions.  The weekly Monetary Authority of Singapore (MAS) bill auction sizes have responded to ample liquidity conditions domestically, with one-month bills starting the year at S$1.4 billion and increasing to S$1.6 billion on Jan 30, noted Heng Koon How, United Overseas Bank’s head of markets strategy.

Consumer sector to lead mergers and acquisitions growth in 2018
The changing habits of consumers around the world are set to make the sector one of the most exciting in the year ahead.  Global consumer transactions are expected to rise to US$632.6 billion this year, turning the consumer goods and retail (CG&R) sector into the top sector for mergers and acquisitions (M&A) growth this year, says Baker McKenzie.

Only 14% of SMEs plan to go abroad: Survey
Only 14 per cent of small and medium-sized enterprises (SMEs) here intend to expand overseas while almost half have no interest in taking their business beyond Singapore soon, a survey found.  In the poll by QBE Insurance of more than 400 firms, 45 per cent said they will not explore expansion across borders – a figure that rises to 56 per cent for smaller SMEs.

Singapore Real Estate

Signs of upswing in Sentosa property market
A nascent recovery in Singapore’s housing market is showing signs of reaching Sentosa, a tiny isle off the southern tip of the country that is both a playground for partying Singaporeans and home for rich expatriates.  Measuring just five sq km, Sentosa is a niche market. Offering a resort lifestyle just a bridge away from the city, Sentosa is the only place in Singapore where foreigners can buy landed property.

JTC launches sale of two industrial sites in Tuas
JTC has launched one confirmed list site at Tuas South Link 3 and one reserve list site at Tuas Bay Close under the first half 2018 Industrial Government Land Sales (IGLS) Programme.  The 0.43 ha site at Tuas South Link 3 is zoned for Business-2 development and has a 20-year tenure with a maximum permissible gross plot ratio of 1.4. The tender closes at 11am on March 27 this year.

Companies’ Brief

OUE H-Trust posts lower DPS
Higher interest expenses and an absence of income support dragged landlord OUE Hospitality Trust (OUE H-Trust)’s distribution per stapled security (DPS) down by 6.6 per cent to 1.27 cents for the fourth quarter ended 2017.  Distributable income fell by 4.2 per cent to $22.99 million for the stapled security which comprises OUE Hospitality Real Estate Investment Trust (OUE H-Reit) and OUE Hospitality Business Trust (OUE H-BT).

CapitaLand Retail China Trust’s Q4 DPU flat at 2.37 cents
CapitaLand Retail China Trust’s (CRCT) fourth-quarter distribution per unit stayed flat at 2.37 Singapore cents as net property income slipped during the period.  This came as income available for distribution for the fourth quarter rose 6.8 per cent to S$22 million.  The DPU for the fourth quarter includes an advanced DPU of 1.54 cents paid on Dec 21, 2017 for the period from Oct 1 to Dec 6. The remaining 0.83 cent will be paid out to unitholders on Feb 23, the Reit said. For the full 2017, distribution per unit will work out to 10.10 Singapore cents.

Views, Reviews & Forum

Reframing the debate on ageing and immigration
Earlier this month, Monetary Authority of Singapore managing director Ravi Menon made an insightful presentation on the links between three critical issues facing Singapore: ageing, immigration and productivity.  Speaking at the Institute of Policy Studies’ Singapore Perspectives conference, he noted that Singapore’s working age population – residents aged 15-64 – will start to decline from 2020. Since economic growth is the sum of the growth of the labour force and productivity, if Singapore freezes immigration and is not able to increase fertility beyond the replacement rate, productivity will be the only source of growth.

Global Economy & Global Real Estate

Should you pay more taxes if you live near the subway?

Global jobs abound but wage gains stay soft

Amazon opens its own rainforest in Seattle

Residential projects boost construction in British cities: survey

US businesses optimistic on China growth but bemoan unfair treatment

Tencent leads acquisition of 14% stake in Wanda’s property unit

Wanda selling US$5.4b property unit stake, to seek listing ‘soon’

Manila plans to move govt staff to new city

Indonesia’s fintech lending boom exploits shortfall in bank loans

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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