DAILY NEWS

Daily News – 4th Oct 2019

Singapore Real Estate

Logistics sector tops warehouse occupancy in Singapore: Colliers
Third-party logistics (3PL) and logistics companies are the top warehouse space occupier in Singapore, according to Colliers International’s latest report. The sector, comprising freight forwarders, transport agents, supply chain and logistics support companies, delivery services, storage services and e-commerce, takes up 44 per cent of occupied warehouse space here.
https://www.businesstimes.com.sg/real-estate/logistics-sector-tops-warehouse-occupancy-in-singapore-colliers
https://www.straitstimes.com/business/property/e-commerce-and-logistics-sector-top-warehouse-occupancy-in-singapore-colliers

Fewer HDB resale flats sold in Sept as prices continue slide: SRX
Fewer Housing and Development Board (HDB) resale flats were sold in September compared with the previous month, and their prices fell. In all, 1,875 such flats changed hands, a 4.9 per cent fall from the figure in August, real estate portal SRX Property said on Thursday when releasing its preliminary figures. Compared with a year ago, last month’s decline was 6.3 per cent.
https://www.businesstimes.com.sg/real-estate/fewer-hdb-resale-flats-sold-in-sept-as-prices-continue-slide-srx
https://www.straitstimes.com/singapore/housing/fewer-hdb-resale-flats-sold-last-month-as-prices-continue-to-slide

Still room for co-working spaces even as WeWork IPO hits the skids, say analysts
WeWork’s stalled initial public offering (IPO) has flagged risks in the co-working sector, though market watchers say there is still room for co-working spaces in Singapore. Hefty losses at the co-working giant, which failed to impress investors as it sought a listing, could prompt investors and landlords to be more cautious about the co-working segment from hereon.
https://www.businesstimes.com.sg/companies-markets/still-room-for-co-working-spaces-even-as-wework-ipo-hits-the-skids-say-analysts

WeWork concerns seeping into Singapore office Reits: Credit Suisse
[Singapore] Concerns about co-working giant WeWork may amplify the negative impact of a weakening economy on Singapore’s commercial real estate investment trusts (Reits), according to Credit Suisse Group. Poor sentiment on the company could further damp demand for co-working spaces amid slowing gross domestic product growth, hurting office Reits, analysts led by Nicholas Teh wrote in a report.
https://www.businesstimes.com.sg/companies-markets/wework-concerns-seeping-into-singapore-office-reits-credit-suisse
https://www.straitstimes.com/business/companies-markets/wework-concerns-seeping-into-singapores-office-reits

Allgreen to start preview for Royalgreen on Oct 5
Allgreen Properties Limited – the real estate arm of the Kuok Group in Singapore – will start its preview for Royalgreen condominium on Saturday. The 285-unit Royalgreen – a five-storey development over eight blocks – is a freehold development in the Bukit Timah residential enclave.
https://www.businesstimes.com.sg/real-estate/allgreen-to-start-preview-for-royalgreen-on-oct-5

New measures to develop construction industry professionals, raise building standards
The Singapore Contractors Association Ltd (SCAL) announced new initiatives on Thursday to boost the professional development and leadership of small and medium sized construction firms and help raise building standards amid the industry’s transformation. SCAL will launch a Construction Professional Accreditation Scheme to provide better recognition and career paths for industry professionals.
https://www.businesstimes.com.sg/government-economy/new-measures-to-develop-construction-industry-professionals-raise-building
https://www.straitstimes.com/business/economy/new-measures-to-develop-construction-industry-professionals-raise-building

Singapore Economy

Factory activity slumps to three-year low
Factory activity in Singapore sank to its lowest in three years, following similar weakness in several other countries. Singapore’s Purchasing Managers’ Index (PMI), a key gauge of factory activity, came in at 49.5 for last month, indicating a contraction.
https://www.straitstimes.com/business/economy/factory-activity-slumps-to-three-year-low
https://www.businesstimes.com.sg/infographics/singapore-factory-outlook-darkens-to-three-year-low-in-september
https://www.straitstimes.com/business/economy/singapores-factory-slump-deepens-sparking-talk-of-technical-recession

Singapore has not entered a recession yet; govt keeping close eye – Indranee
Singapore’s economy probably hasn’t slid into recession yet, although the government is monitoring conditions closely and will step in with support measures if needed, said Minister in the Prime Minister’s Office Indranee Rajah on Thursday. “We are not new to difficult economic situations, we’re not new to recessions,” said Ms Indranee, who is also Second Finance Minister and Second Education Minister…
https://www.businesstimes.com.sg/government-economy/singapore-has-not-entered-a-recession-yet-govt-keeping-close-eye-indranee
https://www.straitstimes.com/business/economy/recession-not-here-yet-but-govt-on-lookout-indranee

Singapore takes top spot in inaugural global smart city citizen survey
Singapore has taken top spot in a new citizen-centric global smart city index (SCI) which surveyed 120 citizens from each of the 102 cities that took part. The inaugural index looks at how citizens perceive the scope and impact of efforts to make their cities “smart”, balancing economic and technological aspects with “humane dimensions”.
https://www.businesstimes.com.sg/government-economy/singapore-takes-top-spot-in-inaugural-global-smart-city-citizen-survey
https://www.straitstimes.com/tech/singapore-tops-world-smart-city-index

Companies’ Brief

Lendlease Global Reit achieves 4.5% premium on trading debut
Lendlease Global Commercial Reit (real estate investment trust) on Wednesday ended its first day of trading on the mainboard at S$0.92, 4.5 per cent above its initial public offering (IPO) price of S$0.88. From the start of trading at 2pm till market close, the units traded within a band of S$0.915 to S$0.945.
https://www.businesstimes.com.sg/companies-markets/lendlease-global-reit-achieves-45-premium-on-trading-debut
https://www.straitstimes.com/business/companies-markets/lendlease-global-reit-up-45-on-ipo-price-in-debut

Ascendas Reit buys Aussie property for A$110.9m
Ascendas Real Estate Investment Trust (Reit) is acquiring its fourth suburban office property in Australia for A$110.9 million (S$104.4 million), the Reit’s manager announced on Thursday. The purchase, from ESR FPA (Wellington Road) Pty Limited, is of the freehold land at 254 Wellington Road in Melbourne and the subsequent development of the office building there, which will have a net lettable area of 17,507 square metres.
https://www.businesstimes.com.sg/real-estate/ascendas-reit-buys-aussie-property-for-a1109m

Capital World takes out S$5.5m, 15% convertible loan
Property firm Capital World has inked a S$5.5 million convertible loan agreement with two individual investors, it said in a bourse filing on Thursday night. The Catalist-listed firm took the loan to repay an outstanding convertible bonds subscription agreement. After deducting expenses, it will have net proceeds of about S$5.1 million.
https://www.businesstimes.com.sg/companies-markets/capital-world-takes-out-s55m-15-convertible-loan
https://www.straitstimes.com/business/companies-markets/capital-world-takes-out-s55m-15-convertible-loan

Raffles Infrastructure eyes smart city projects with new major shareholder
Raffles Infrastructure Holdings – currently on the Singapore Exchange’s watch-list – and its new substantial shareholder, South Korea-listed Magic Micro, will explore potential partnerships in infrastructure and smart city projects in the global market. Both companies signed a memorandum of understanding (MOU) on financial and technological cooperation in infrastructure investment opportunities, according to Raffles…
https://www.businesstimes.com.sg/companies-markets/raffles-infrastructure-eyes-smart-city-projects-with-new-major-shareholder

Views, Reviews, Forum & Others

A recession is never a necessity for economies
I recently received an email from my friend Mark Thoma of the University of Oregon, asking if I had noticed an increase in commentaries suggesting that a recession would be a good and healthy purge for the economy (or something along those lines). In fact, I, too, have noticed more commentators expressing the view that “recessions, painful as they are, are a necessary growth input”. I am rather surprised by it.
https://www.businesstimes.com.sg/opinion/a-recession-is-never-a-necessity-for-economies

Home Front: Since GE2011, have HDB issues been resolved?
It is a rite of passage for most Singaporeans. No, not getting married, though that is closely tied to it – but owning their first HDB home. And that has just become easier because of measures announced by National Development Minister Lawrence Wong on Sept 10.
https://www.straitstimes.com/singapore/have-hdb-problems-been-resolved

Explainer: WeWork — the rise and fall of another tech darling
Singapore — Once valued at US$47 billion (S$65 billion), co-working space operator WeWork is now in the doldrums. Its parent We Company lost US$1.9 billion last year. Founder and chief executive officer Adam Neumann has been ousted and the firm has also shelved its Initial Public Offering (IPO) plans.
https://www.todayonline.com/singapore/explainer-how-did-wework-end-not-working