The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 4th January 2018

Top Story

Property market finally on the upturn
After three years of falling prices, 2018 is looking like the year that the Singapore property market’s long-awaited turnaround finally gains traction. Analysts reckon that a trough has been reached though they are careful to tamp down excessive optimism.  While market watchers generally agree that prices will move up, their forecasts for the increases vary from as low as 3 per cent to a giddy 15 per cent. Most also agree that resales will drive transaction numbers higher this year than last year.

Singapore Economy

SMEs hope for pickings in 2018, but are still dogged by challenges
The Singapore economy may have performed much better than expected last year, but many small and medium-sized enterprises (SMEs) are still waiting to reap the gains from that.  This year, they are hoping that the spillover from the improved environment will finally trickle down to them – and 2018 looks a lot more promising than the gloom that hung over the start of 2017.

Manufacturing expands for 16th straight month in December but signs of slowing growth emerging
Singapore manufacturers ended 2017 on a high, fuelled mainly by strong growth in electronics. But the sector’s pace of expansion is showing signs of moderating after a year of breakneck growth.

Singapore Real Estate

Reits, business trusts, F&B to drive IPOs on SGX in 2018
Apart from real estate investment trusts (Reits) and business trusts (BTs), companies in niche sectors such as food and beverage (F&B) will continue to offer listing aspirants on the Singapore Exchange (SGX).  In a report entitled Equity Capital Markets Watch – Singapore: 2017 Year in Review, PwC said that Reits and BTs would likely continue to be the niche for the SGX.

City Towers, Sixth Avenue Centre and Kovan Apts join en bloc wagon
The en bloc fervour shows no sign of abating. Residential and commercial owners continue to be upbeat about the prospects of collective sales as Wednesday saw the announcement of three more projects being marketed en bloc.  The first is freehold development City Towers at 317-325Q Bukit Timah Road, which will be launched for collective sale for S$355 million by tender on Thursday.

Companies’ Brief

Perennial-led consortium rolls out US$1.2b JV to expand in China
Singapore-listed Perennial Real Estate Holdings is making major inroads into China via a US$1.2 billion joint venture to acquire and develop healthcare integrated mixed-use developments connected to China’s high-speed railway (HSR) stations.

Perennial Real Estate and Pontiac Land reach settlement on Capitol Singapore
The deadlock in the fate of Capitol Singapore is finally coming to an end after its major shareholders Perennial Real Estate Holdings Limited and Pontiac Land reached a settlement agreement.  The pact inked on Jan 3 provides a mechanism for either Perennial or Pontiac Land to purchase all of the others’ shares in the iconic heritage property.

GIC joint venture buys US student housing portfolio for US$1.1b
The joint venture formed by Singapore sovereign wealth fund GIC, the Canada Pension Plan Investment Board (CPPIB) and The Scion Group has acquired a student housing portfolio in the United States for approximately US$1.1 billion.

Low Keng Huat to launch 2 freehold landed projects
Singapore-listed property developer Low Keng Huat will launch two freehold landed projects in the landed residence enclave of Lorong Kismis and Eng Kong Park off Upper Bukit Timah Road this Friday.  One is Kismis Residences, a 31-unit freehold landed development; the other is the adjacent seven-unit freehold strata landed development, Tranquilia@Kismis. The latter will be launched by Low Keng Huat’s joint venture with Wenul Development.

Real estate veteran named ARA assistant group CEO
ARA Asset Management has appointed Chia Nam Toon, who has over 10 years of real estate experience, as assistant group chief executive officer.  He has also taken on a dual role as CEO, Reits & Business Development. His appointment with ARA Asset Management took effect on Jan 2.

SingLand offer closes with UOL controlling 99.772% stake
UOL’s mandatory offer for Singapore Land shares closed at 5.30pm on Jan 3 and is no longer open for acceptance.  UOL had earlier this year made the offer for all the SingLand shares it does not already own, at S$11.85 apiece in cash.

Allianz plans to double Asian property investments over 3 years
Allianz SE’s property unit plans to double investments in Asia over three years as the German firm is drawing in more money from its insurance operations in the region.  Property investments may swell to 3.75 billion euros (S$5.99 billion) by the end of 2020 from about 1.8 billion euros, according to Rushabh Desai, Asia-Pacific chief executive officer of Allianz Real Estate.

Views, Reviews & Forum

Bidding adieu to the idea of a core business – for now
When Singapore Press Holdings put its landmark Times House site up for sale years ago, a senior executive vice-president then said: “We consider property assets as non-core and have said that we will divest them in a manner that would maximise shareholders’ value.”  That was back in 2003.

Ensure mix of big and small homes in new developments
En bloc fever hit Singapore last year. For many residents, it was a windfall that secured their financial future. For others, it was an emotional goodbye to their homes, friends and neighbourhoods.

Each report announcing a successful sale included information on how many units each development had and how many units the plot could yield.

Global Economy & Global Real Estate

Federal Reserve members divided over US rate hikes in 2018

US office vacancy rate rises in fourth quarter: Reis

Manhattan home resales drop as buyers waver on tax reform

Farewell to an architect who re-envisioned the modern hotel

Airbnb defeats Aimco lawsuit over unauthorised subleases

China boosts investment in Sri Lankan mega-project

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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