DAILY NEWS

Daily News – 31st July 2018

Top Story

Discounts, launch delays in wake of property cooling measures
New private property projects after Daintree Residence – the first new launch since the surprise round of cooling measures kicked in on July 5 – are expected to enter the market at slightly lower prices, following slower sales at some projects launched earlier this month, analysts say. Discounts of up to 5 per cent from expected launch prices and other incentives are being offered to entice buyers in the wake of the higher Additional Buyer’s Stamp Duty (ABSD) rates and tighter loan limits. For instance, Parksuites in Holland Grove Road is offering an additional 5 per cent discount “for a limited time only”, according to its newspaper advertisement last Saturday.
https://www.straitstimes.com/business/property/discounts-launch-delays-in-wake-of-cooling-measures

Singapore Economy

Offshore sector on the mend, but don’t expect quick recovery
A big drag on Singapore’s growth in recent years, the embattled offshore and marine industry has broken a three-year losing streak. Yet industry executives are not betting on a return to the glory days any time soon. The industry, along with a top-class finance sector, has been a key pillar of Singapore’s economic transformation into a First World economy and a source of national pride. But a 2014 collapse in oil prices led to thousands of jobs lost, several defaults and billions of dollars in debt restructurings.
https://www.straitstimes.com/business/companies-markets/offshore-sector-on-the-mend-but-dont-expect-quick-recovery
https://www.channelnewsasia.com/news/singapore/singapore-s-offshore-industry-recovering-but-no-return-to-glory-10573770
https://www.todayonline.com/singapore/singapores-offshore-industry-recovering-no-return-glory-days-0

Retirement age review, reskilling: Firms say flexibility is key
When it comes to manpower decisions such as raising the mandatory retirement age or retraining workers for new roles before retrenchment, businesses say flexibility is key. This viewpoint arose in response to news of the upcoming review of whether changes are needed on the statutory retirement age at 62 and re-employment age extending to age 67. It will also evaluate the impact of the Central Provident Fund contribution rates on retirement adequacy for older workers.
https://www.businesstimes.com.sg/government-economy/retirement-age-review-reskilling-firms-say-flexibility-is-key
https://www.straitstimes.com/forum/letters-in-print/legislation-needed-on-raising-retirement-age
https://www.channelnewsasia.com/news/singapore/preparing-older-workers-will-require-more-than-reskilling-10564212

Singapore Real Estate

Completed condo price rise eases to 0.7% in June: NUS index
Prices of completed non-landed private homes climbed at a slower pace in June, appreciating 0.7 per cent month-on-month, according to the National University of Singapore’s (NUS) flash estimates for its Singapore Residential Price Index (SRPI) released on Monday. In May, prices rose 1.6 per cent, up slightly from the preliminary estimate of 1.5 per cent.
https://www.businesstimes.com.sg/real-estate/completed-condo-price-rise-eases-to-07-in-june-nus-index
https://www.straitstimes.com/business/property/completed-condo-prices-rise-at-slower-pace-in-june

Fragrant Gardens seeks S$65m reserve price
Fragrant Gardens is the latest to launch its en bloc tender, as the property market holds its breath for the first successful collective sale since cooling measures came into effect in early July. At a S$65 million reserve price, owners of the 37-unit freehold development, which spans 38,576 sq ft, could net S$1.3 million to S$2.69 million should they succeed.
https://www.businesstimes.com.sg/real-estate/fragrant-gardens-seeks-s65m-reserve-price
https://www.straitstimes.com/business/property/fragrant-gardens-up-for-collective-sale-at-65m

Companies’ Brief

Far East Hospitality Trust reports 4.1% rise in DPS for Q2
Far East Hospitality Trust on Tuesday reported a 4.1 per cent increase in its distribution per stapled security (DPS) for the second quarter, thanks to better performance mainly due to its hotel portfolio. DPS for the three months ended June 30, 2018 stood at 1.01 Singapore cents, compared to 0.97 Singapore cent.
https://www.businesstimes.com.sg/companies-markets/far-east-hospitality-trust-reports-41-rise-in-dps-for-q2
https://www.straitstimes.com/business/companies-markets/far-east-hospitality-trust-reports-41-rise-in-dps-for-q2

Ascendas Reit’s Q1 DPU falls 1.2%; net property income rises 3.8%
Ascendas Reit on Monday reported a 1.2 per cent drop in distribution per unit (DPU) to 4.002 Singapore cents for the first quarter ended June 30, 2018, from 4.049 cents last year. However, this was due to the absence of a one-off distribution totaling S$5.9 million, mainly for upfront fees for some credit facilities. Excluding this, DPU would have grown 4 per cent, while amount available for distribution would have risen 4.1 per cent, the manager for the trust said.
https://www.businesstimes.com.sg/companies-markets/ascendas-reits-q1-dpu-falls-12-net-property-income-rises-38
https://www.straitstimes.com/business/companies-markets/ascendas-reit-posts-12-fall-in-dpu-in-q1

MNACT Q1 DPU edges up to 1.88 cents
Higher rental rates from its properties in mainland China and Hong Kong, as well as new contribution from its recently acquired Japanese properties boosted results for landlord Mapletree North Asia Commercial Trust (MNACT) in its first quarter. The property trust was formerly known as Mapletree Greater China Commercial Trust (MGCCT), prior to the acquisition of the said properties in Japan on May 25, 2018.
https://www.businesstimes.com.sg/companies-markets/mnact-q1-dpu-edges-up-to-188-cents

Memstar to transfer listing status to TBN in exchange for shares
Memstar Technology has agreed to sell its listed status on the Singapore Exchange (SGX) to Thailand mall operator TBN Property Co in exchange for shares of the incoming company. Memstar, a cash company facing delisting from the SGX Mainboard, on Monday announced it will undertake a transfer of its listing status to TBN through a scheme of arrangement.
https://www.businesstimes.com.sg/companies-markets/memstar-to-transfer-listing-status-to-tbn-in-exchange-for-shares
https://www.straitstimes.com/business/companies-markets/memstar-selling-listed-status-to-thailand-mall-owner

Sheng Siong Q2 net profit up 6.4% at S$17.1m
Supermarket chain Sheng Siong Group’s net profit grew 6.4 per cent to S$17.1 million for the second quarter ended June 30, up from S$16.1 million in the year-ago period, the group announced on Monday evening after the market closed. This was on the back of a 5.7 per cent rise in revenue to S$213 million, mainly contributed by the opening of new stores – four in the first quarter and three in the last five months of FY 2017 – and comparable sales from existing stores.
https://www.businesstimes.com.sg/companies-markets/sheng-siong-q2-net-profit-up-64-at-s171m
https://www.straitstimes.com/business/companies-markets/sheng-siongs-q2-net-profit-up-64-to-171m

VIEWS, REVIEWS, FORUM & Others

Property curbs prompting developers, especially smaller players, to rethink strategy: Experts
Singapore: The halting of an en bloc purchase by Tee Land reflects the turn in sentiment among property developers in Singapore who have begun redoing their sums on the back of the latest cooling measures, industry observers told Channel NewsAsia. This cautious approach is especially the case for smaller players that may not have the same financial muscle as their bigger rivals, they added.
https://www.channelnewsasia.com/news/singapore/property-cooling-measures-en-bloc-deals-developers-10574492

Services nearby a boon for the needy
Location, location, location, goes the old adage in many areas of business, from retail to real estate. Not surprisingly, social workers too see location as an important enabling factor in social services. Under a pilot programme unveiled by Minister for Social and Family Development Desmond Lee last week, some public rental housing tenants, who come from lower-income bands, will have key services sited closer to them. In addition, various government agencies and non-profit groups that help the families will formulate joint plans for assisting them.
https://www.straitstimes.com/opinion/st-editorial/services-nearby-a-boon-for-the-needy

Short-term rentals can help home owners earn a living
Mr Toh Cheng Seong has chastised the Urban Redevelopment Authority for yet another survey to seek views on Airbnb-style stays (Authorities dragging their feet on short-term rental issue; July 26). He further termed such businesses “nefarious”.
https://www.straitstimes.com/forum/letters-in-print/short-term-rentals-can-help-home-owners-earn-a-living