DAILY NEWS

Daily News – 4th Aug 2017

Top Story

HDB resale prices continue to dip but volumes are up
Prices of Housing & Development Board (HDB) resale flats fell 0.6 per cent in July from the preceding month, based on SRX Property’s flash estimate for last month released on Thursday. This follows a month-on-month decline of 0.2 per cent in June 2017. SRX Property’s overall resale price index for HDB flats is down 1.6 per cent year on year, and is also 12.2 per cent below its peak in April 2013.
http://www.businesstimes.com.sg/real-estate/hdb-resale-prices-continue-to-dip-but-volumes-are-up
https://www.srx.com.sg/research/39482/hdb-resale-prices-decrease-by-06-volume-increases-by-18

Singapore Economy

Appetite for faster growth could fuel cross-border deals in S-E Asia: report
Regional corporates trying to accelerate their growth could spur cross-border merger and acquisition (M&A) activity in South-east Asia, risk consultancy Kroll and deal intelligence service Mergermarket said in a report on Thursday. The value of intra-regional deals in South-east Asia rose more than fourfold, or 368 per cent, to US$18.9 billion in 2016, according to the report.
http://www.businesstimes.com.sg/companies-markets/appetite-for-faster-growth-could-fuel-cross-border-deals-in-s-e-asia-report

Young workers in Singapore ‘won’t have enough for retirement’
Young workers in Singapore are at risk of a shortfall in retirement income despite widespread and high levels of private savings, a study by a member of a multinational consortium has found. In its report, The Global Savings Gap, the International Longevity Centre UK (ILC-UK) said the average earner in 24 out of 30 high-income economies will face a retirement-income shortfall.
http://www.businesstimes.com.sg/government-economy/young-workers-in-singapore-wont-have-enough-for-retirement

‘Jobs for life’ now an extinct concept: Poll
It has become the norm for workers to switch jobs every few years, making the lifelong career in one organisation a thing of the past in Singapore and Hong Kong. That is according to human resources firm Randstad’s latest Workmonitor Research, which found that 73 per cent of employees globally felt that a “job for life” was an extinct concept.
http://www.straitstimes.com/business/jobs-for-life-now-an-extinct-concept-poll

Growth in S’pore private sector edges up
Growth in Singapore’s private sector picked up last month although lower employment persisted, according to the latest Nikkei PMI survey released yesterday. The headline Nikkei Singapore Purchasing Managers’ Index (PMI) rose to 51.3 last month from 50.7 in June. A reading above 50 points to growth, while one below 50 indicates contraction.
http://www.straitstimes.com/business/growth-in-spore-private-sector-edges-up

Discounts climb as sale period draws to a close
Price-conscious shoppers who live or shop in neighbourhoods in the north such as Yishun, Sembawang and Woodlands will find retailers reserving their best bargains for the last week of this year’s Great Singapore Sale (GSS). The GSS, which began on June 9, is fast approaching its final act with the annual shopping event ending on Aug 13.
http://www.straitstimes.com/singapore/discounts-climb-as-sale-period-draws-to-a-close

Singapore firms upbeat on Philippines
Singapore companies remain upbeat about growth prospects in the Philippines, despite the conflict in the southern city of Marawi and creeping Islamist extremism that has forced President Rodrigo Duterte to place Mindanao island under martial law. “We look at business prospects in the long term. Ultimately, we do look at the long-term fundamentals of the Philippines, and the signs are all positive,” Philippine-Singapore Business Council (PSBC) co-chair Loh Chin Hua said at a news briefing in Manila.
http://www.straitstimes.com/asia/se-asia/singapore-firms-upbeat-on-philippines

Singapore Real Estate

Property market ‘bottoming out’, says CapitaLand CEO
Singapore’s biggest developer, CapitaLand, detects signs that the residential property market is “bottoming out” after a run of price declines, its chief executive officer Lim Ming Yan said on Thursday (Aug 3). Many investors see Singapore as relatively more attractive than Hong Kong, London or Australian cities, Mr Lim, who’s also president of the firm, said in a Bloomberg TV interview. Extra liquidity was a factor in higher transaction volumes and slower price declines in recent months, he said.
http://www.straitstimes.com/business/property/property-market-bottoming-out-says-capitaland-ceo
http://www.todayonline.com/business/property/spores-property-market-bottoming-out-capitaland-ceo

Big and green
Our Tampines Hub (OTH) is having its opening on Sunday. The first integrated community and lifestyle hub that houses a sports stadium, six swimming pools, at a regional library, a sports hall and a hawker centre, among others. OTH is also a huge test bed for various technologies.
http://www.businesstimes.com.sg/infographics/big-and-green

Companies’ Brief

CapitaLand’s Q2 net profit leaps 97% to S$579.3m
Better operating performance, higher revaluation gains from investment properties and divestment gains boosted CapitaLand’s second-quarter net profit to S$579.3 million, a 97 per cent jump from a year ago. Earnings per share almost doubled to 13.6 Singapore cents, from 6.9 Singapore cents a year ago. Revenue, however, fell 12.3 per cent to S$992.4 million, mainly due to lower contribution from development projects in Singapore.
http://www.businesstimes.com.sg/companies-markets/capitalands-q2-net-profit-leaps-97-to-s5793m

CapitaLand to remain aggressive but disciplined in land bidding: CEO
CapitaLand will continue to be “aggressive but disciplined” when tendering for land to bulk up its Singapore residential land bank, president and group CEO Lim Ming Yan said at the company’s results briefing on Thursday. This was in response to an analyst’s question regarding its bullish bid for a mixed-use Bidadari site, which was eventually sold to a consortium linked to Singapore Press Holdings and Kajima Development for S$1.132 billion, or S$1,181 per sq ft per plot ratio (psf ppr), in June.
http://www.businesstimes.com.sg/companies-markets/capitaland-to-remain-aggressive-but-disciplined-in-land-bidding-ceo
http://www.straitstimes.com/business/companies-markets/capitaland-to-be-more-aggressive-but-disciplined

The Ascott to invest S$170m to develop co-living space at Funan integrated project
The Ascott, CapitaLand’s serviced residence operator, will be investing S$170.3 million to develop the co-living space in Funan integrated project, located at the heart of Singapore’s civic and cultural district. Through its 50:50 serviced residence global fund with Qatar Investment Authority (QIA), The Ascott will invest in the serviced residence component of the Funan integrated development, which will be named lyf Funan Singapore.
http://www.businesstimes.com.sg/companies-markets/the-ascott-to-invest-s170m-to-develop-co-living-space-at-funan-integrated-project
http://www.straitstimes.com/business/property/the-ascott-to-develop-9-storey-lyf-branded-serviced-residence-part-of-new-funan

Oxley buys 7.11% of UEL for S$120.3m, but will not be making competing offer for UEL
Oxley Holdings said on Friday that it has bought a total of 45.3 million shares, or a 7.11 per cent stake, in United Engineers Limited (UEL) for about S$120.3 million. The share purchases in UEL – a century old Singaporean property group – were done in the open market. Oxley said the acquisition was undertaken as part of its investments in income generating assets, and is in line with the investment objective of the company.
http://www.businesstimes.com.sg/companies-markets/oxley-buys-711-of-uel-for-s1203m-but-will-not-be-making-competing-offer-for-uel

Far East Hospitality Trust’s DPS down 4% for Q2
Far East Hospitality Trust’s (Far East H-Trust) distribution per stapled security fell 4 per cent to 0.97 Singapore cent for the second quarter in 2017. Net property income was down 1.4 per cent to S$23.15 million, while gross revenue slipped one per cent to S$25.88 million year-on-year due to lower master lease rental from the hotels and serviced residences.
http://www.businesstimes.com.sg/companies-markets/far-east-hospitality-trusts-dps-down-4-for-q2

OUE Q2 profit down 72.6% to S$7m on lower reversal of impairment losses
Developer OUE Limited said net profit for its second quarter ended June 30, 2017, was S$7 million, down 72.6 per cent from S$25.7 million a year ago. Revenue rose 39.5 per cent to S$187.3 million, mainly due to a higher number of OUE Twin Peaks units sold.
http://www.businesstimes.com.sg/companies-markets/oue-q2-profit-down-726-to-s7m-on-lower-reversal-of-impairment-losses

Roxy-Pacific, Chip Eng Seng buy New Zealand office building for NZ$174m
Property groups Roxy-Pacific and Chip Eng Seng jointly said they have bought a Grade A office building in New Zealand for NZ$174 million (S$175 million). Each firm will own a 50 per cent interest. The building, 205 Queen Street, comprises two commercial towers and a retail podium. It has a lease term until June 2081, with a right of renewal for a further term of 98 years, until the year 2179.
http://www.businesstimes.com.sg/companies-markets/roxy-pacific-chip-eng-seng-buy-new-zealand-office-building-for-nz174m
http://www.straitstimes.com/business/property/roxy-pacific-and-chip-eng-seng-acquire-s175-million-office-building-in-new-zealand

MLT to sell Toh Tuck warehouse for S$14.5m to Venus Beauty
Industrial property owner Mapletree Logistics Trust (MLT) on Thursday said it plans to sell its 4 Toh Tuck Link warehouse for S$14.51 million. The property has a gross floor area of 8,641 sq m on a land site of approximately 5,761 sq m. It is currently 60 per cent occupied following the expiry of a master lease in August 2016.
http://www.businesstimes.com.sg/companies-markets/mlt-to-sell-toh-tuck-warehouse-for-s145m-to-venus-beauty

Ascendas Hospitality Trust’s Q1 DPS up 1.6% to 1.31 cents
Hotel owner Ascendas Hospitality Trust on Thursday reported distribution per stapled security (DPS) of 1.31 Singapore cents for its first quarter ended June 30, 2017, 1.6 per cent more than 1.29 cents a year ago. Income available for distribution rose 1.8 per cent to S$14.7 million due to lower financing costs, partially offset by a slightly higher amount of income retained.
http://www.businesstimes.com.sg/companies-markets/ascendas-hospitality-trusts-q1-dps-up-16-to-131-cents

Kingsford Construction fined S$130,000 for safety lapses at Hillview Peak worksite
Kingsford Construction has been convicted and fined S$130,000 under the Workplace Safety and Health Act (WSHA) for multiple safety lapses uncovered during an inspection in June 2016, the Ministry of Manpower (MOM) said on Thursday. Kingsford was engaged to carry out construction works at the Hillview Peak condominium.
http://www.businesstimes.com.sg/real-estate/kingsford-construction-fined-s130000-for-safety-lapses-at-hillview-peak-worksite
http://www.todayonline.com/singapore/china-based-construction-firm-fined-s130000-repeated-safety-lapses-hillview-condo-worksite

Hongkong Land’s net profit soars 147% in first half
A sizeable gain from the revaluation of investment properties saw earnings at Hongkong Land Holdings rocket 147 per cent in the first half of this year. The property group reported a net profit of US$3.13 billion (S$4.2 billion) for the six months ended June 30, well up from the US$1.26 billion in the same period a year earlier. This was after taking into account a net gain of US$2.61 billion arising on the revaluation of its investment properties.
http://www.straitstimes.com/business/companies-markets/hongkong-lands-net-profit-soars-147-in-first-half