DAILY NEWS

Daily News – 4 Feb 2021 (Thu)

Singapore Real Estate

Singapore’s CBD will never be the same again
Singapore’s office market, with its roughly 8 million square metres (sq m) of completed space, is under stress. Islandwide office vacancy rate dipped for the second consecutive quarter to 11.8 per cent in the fourth quarter of 2020. Office space net demand for last year fell by 79,000 sq m, contrasting with net positive demand of 155,000 sq m in 2019.
https://www.businesstimes.com.sg/real-estate/singapores-cbd-will-never-be-the-same-again

Six shophouses at Joo Chiat Place sold for more than S$2m each
Six shophouses at Joo Chiat Place have been sold for prices ranging from S$2.65 million to S$2.72 million. Four out of six of the two-bedroom units were sold in the past eight months, bought mainly by young Singaporean couples, according to marketing agent Isabel Redrup Agency, which closed all six deals. The freehold residentials, which are 2.5-storeys high, occupy 900 square feet (sq ft) of land area and 2,100 sq ft of built-up area.
https://www.businesstimes.com.sg/real-estate/six-shophouses-at-joo-chiat-place-sold-for-more-than-s2m-each

Property firms face setback as workers stay away from offices
Singapore’s battered property firms are hitting a snag in their recovery, after rising coronavirus infections led to an extension of remote work in the city-state. Shares of commercial developers and real estate investment trusts (Reits) have fallen since the authorities announced last month that working from home will remain the default arrangement.
https://www.straitstimes.com/business/property/property-firms-face-setback-as-workers-stay-away-from-offices

Spike in property agent commissions may draw greater scrutiny given its wider impact
Singapore’s physical property market has been resilient, but this has not been reflected in the share prices of the listed developers. Shares of CapitaLand and City Developments, two of the largest local players, have declined nearly 10 per cent and 30 per cent, respectively, in the past year. But the share prices of the property agents tell a slightly different story. PropNex, for instance, has gained more than 60 per cent.
https://www.businesstimes.com.sg/companies-markets/spike-in-property-agent-commissions-may-draw-greater-scrutiny-given-its-wider

Additional 7-day testing regime for newly arrived foreign workers: MOM
All newly arrived work permit and S Pass workers in construction, marine and process sectors from higher-risk countries or regions will be subjected to an additional seven-day testing post-stay-home notice (SHN) starting from Feb 5, the Ministry Of Manpower (MOM) said in a press statement on Wednesday.
https://www.businesstimes.com.sg/government-economy/additional-7-day-testing-regime-for-newly-arrived-foreign-workers-mom

Singapore Economy

WEF meeting in Singapore moved to August amid pandemic
The World Economic Forum (WEF) special annual meeting in Singapore will now take place from Aug 17 to 20, several months after it was to have been held from May 25 to 28. The move is in light of global travel restrictions and the international challenges in combating the virus at this stage, said the Ministry of Trade and Industry (MTI) in a statement on Wednesday night.
https://www.businesstimes.com.sg/government-economy/wef-meeting-in-singapore-moved-to-august-amid-pandemic
https://www.straitstimes.com/singapore/wef-meeting-in-singapore-pushed-back-to-aug-17-to-20

Aviation sector expected to continue receiving support, given strategic value
Observers expect the government to adopt a targeted approach to the hard-hit aviation sector in the upcoming Budget, with several existing relief measures including the Jobs Support Scheme (JSS) likely to be extended. This is particularly so given the sector’s strategic national value. Irvin Seah, senior economist at DBS Group Research, wrote in a recently published report that Budget 2021 will likely direct fiscal efforts at sectors that have been blindsided by the pandemic and are still struggling one year on.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2021/aviation-sector-expected-to-continue-receiving-support

Tourism firms hope for tax relief, special grants in Budget 2021
Tourism industry players are eyeing more aid to transform their businesses in the upcoming Budget, as well as extensions of last year’s key wage and cashflow support schemes. Beyond immediate handouts, “medium-term themes such as deepening enterprise capabilities, restructuring jobs and skills training with the aim of making Singapore future-ready will likely be included in the Budget”, said Barnabas Gan, economist at UOB.
https://www.businesstimes.com.sg/government-economy/singapore-budget-2021/tourism-firms-hope-for-tax-relief-special-grants-in-budget

Companies’ Brief

CDL signs WorldGBC Commitment, eyes 2030 net zero carbon target
City Developments Limited (CDL) will make use of smart technologies to maximise energy performance for buildings under its direct control – among other measures – as part of its efforts to achieve net zero carbon emissions by 2030. The developer has signed the World Green Building Council’s (WorldGBC) Net Zero Carbon Buildings Commitment in line with its pledge to meet the target by 2030, making it the first real estate developer in Singapore to do so.
https://www.businesstimes.com.sg/real-estate/cdl-signs-worldgbc-commitment-eyes-2030-net-zero-carbon-target
https://www.straitstimes.com/business/companies-markets/cdl-pledges-to-reach-net-zero-carbon-emissions-by-2030

Surbana Jurong’s public sustainability-linked bond more than 6 times oversubscribed
Surbana Jurong (SJ) Group has priced a S$250 million sustainability-linked bond due 2031. The urban, infrastructure and managed-services consulting firm said in a statement on Wednesday that the bond – more than six times oversubscribed – is the first Singapore dollar-denominated sustainability-linked bond, and the first public sustainability-linked bond issuance from a Southeast Asia based company.
https://www.businesstimes.com.sg/companies-markets/surbana-jurongs-public-sustainability-linked-bond-more-than-6-times-oversubscribed
https://www.straitstimes.com/business/companies-markets/public-sustainability-linked-bond-by-surbana-jurong-more-than-6-times

Wing Tai Holdings H1 net profit jumps 73.1% to S$56.8m
Mainboard-listed property and retail player Wing Tai Holdings’ saw its net profit rise by 73.1 per cent to S$56.8 million for the half year ended Dec 31, 2020, thanks to higher contribution from its development properties. Its bottom line jumped to S$56.8 million from S$32.8 million for the corresponding period a year ago, on the back of a 32.7 per cent increase in revenue.
https://www.businesstimes.com.sg/companies-markets/wing-tai-holdings-h1-net-profit-jumps-731-to-s568m

Brokers’ take: Analysts maintain calls on Ascendas Reit, positive on diverse portfolio
Analysts continue to like Ascendas Real Estate Investment Trust (Ascendas Reit) for its resilient and well-diversified portfolio and growth visibility. This comes as the Reit on Tuesday posted a lower distribution per unit (DPU) of 7.418 Singapore cents for its second half ended Dec 31, 2020, meeting UOB Kay Hian’s expectations. The Reit’s full-year DPU of 14.688 cents met CGS-CIMB’s expectations, but was below DBS Group Research’s projections.
https://www.businesstimes.com.sg/companies-markets/brokers-take-analysts-maintain-calls-on-ascendas-reit-positive-on-diverse

Views, Reviews, Forum & Others

Update on COVID-19 (Coronavirus Disease 2019) Situation

Woman tests positive for virus two weeks after completing SHN
A 35-year-old long-term visit pass holder from India is the sole locally transmitted coronavirus case announced yesterday, said the Ministry of Health (MOH). The ministry added that her case may be reclassified as an imported case as her serology test result is pending. “Should her serology test come back positive, and epidemiological investigations assess that this is a past infection, we will reclassify this as an imported case,” it said.
https://www.straitstimes.com/singapore/woman-tests-positive-for-virus-two-weeks-after-completing-shn
https://www.businesstimes.com.sg/government-economy/35-year-old-long-term-visit-pass-holder-from-india-is-sole-covid-19-community

Singapore keeps key links going with very selective quarantine-free entry
The Lion City is still open for business: Key global travellers who need to enter Singapore are given flexibility by the authorities, even if they do not qualify for the inbound travel channels formally in place here. Stay-home notice (SHN) requirements can even be waived for some of these business and essential visitors, although government agencies told The Business Times that the number of short-term entries remains low and SHN exemptions are not a given.
https://www.businesstimes.com.sg/government-economy/singapore-keeps-key-links-going-with-very-selective-quarantine-free-entry

Singapore approves Moderna’s Covid-19 vaccine
Singapore has approved Moderna’s Covid-19 vaccine for use in the city-state, and expects the first shipment to arrive around March. The vaccine is the second to be authorised for use by the Health Science Authority (HSA) after the Pfizer-BioNTech vaccine, which is now being administered in the city-state. It will be progressively rolled out to individuals aged 18 years and up, said the Ministry of Health (MOH) in a separate statement. Singapore is the first in Asia to approve the Moderna Covid-19 vaccine.
https://www.businesstimes.com.sg/government-economy/singapore-approves-modernas-covid-19-vaccine
https://www.straitstimes.com/singapore/health/spore-approves-moderna-vaccine-for-those-18-and-up
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation