DAILY NEWS

Daily News – 5th May 2016

Singapore Economy

A quality strategy for tourism
The $700 million boost that the tourism sector will receive over the next five years is a substantial investment in its potential for innovation and growth. Those goals are not new. The early phase of tourism history included the use of major attractions, such as Sentosa Island and the Singapore Zoo, to raise awareness of the Republic as a destination. That strategy broadened into moves to promote Singapore as a regional tourism hub. Higher aspirations were met with the setting up of the two integrated resorts and the hosting of the Formula One Singapore Grand Prix.
http://www.straitstimes.com/opinion/st-editorial/a-quality-strategy-for-tourism

FDI confidence in S’pore up again
With world trade slowing, leading global firms are turning to foreign direct investment for growth opportunities – and Singapore is one of the biggest targets. Confidence in Singapore has surged among key corporate decision-makers, according to A T Kearney. Singapore made the biggest jump in the global management consulting firm’s latest Foreign Investment Confidence Index, rising from 15th in 2015 to 10th this year in its annual rankings.
http://www.businesstimes.com.sg/government-economy/fdi-confidence-in-spore-up-again

Singapore Real Estate

Price cuts at some housing projects help boost sales
Some developers have been reducing prices for their projects, encouraging sales in the process. Ardmore Three in Ardmore Park has sold about 20 units since relaunching last month at effective prices of about $2,600 to $2,700 per sq ft (psf) – after factoring in a 15 per cent cash rebate. This is below earlier launch prices of $3,400 to $3,500 psf. Sales are decent considering most units at the project go for about $5 million.
http://www.straitstimes.com/business/property/price-cuts-at-some-housing-projects-help-boost-sales

More undecided about using a property agent
As A harbinger of how technology is encroaching into the role of real estate agents, the latest survey by the Council for Estate Agencies (CEA) suggests that more people may eventually choose to complete property transactions on their own. In the Public Perception Survey, three in every 10 consumers were undecided about whether to engage a property agent for future transactions. This was up from 25 per cent of consumers polled in 2012, the last time the survey was conducted.
http://www.businesstimes.com.sg/real-estate/more-undecided-about-using-a-property-agent

Chopard siblings pay S$25m for Tong Building space
The brother-and-sister pair that runs Swiss luxury watch and jewellery house Chopard has picked up an office floor at Tong Building in Orchard Road for S$25.5 million. The price works out to S$3,713 per square foot on freehold strata area for the 13th floor of the 19-level building located between Lucky Plaza and The Paragon.
http://www.businesstimes.com.sg/real-estate/chopard-siblings-pay-s25m-for-tong-building-space

HDB tightens rules on changes on flat ownership
Keen to have a second property as a “vacation house”, 46-year-old Mr Khoo has been on the lookout for a private condominium since the start of 2016. The Singaporean, who did not want his full name to be used, currently owns an HDB flat with his wife, so he was keen on taking up his property agent’s suggestion to “decouple” from his existing property to avoid having to pay Additional Buyer’s Stamp Duty (ABSD).
http://www.channelnewsasia.com/news/singapore/hdb-tightens-rules-on/2695844.html

Aeropostale seeks six months to beat bankruptcy
Struggling teen apparel retailer Aeropostale Inc filed for Chapter 11 bankruptcy protection on Wednesday (May 4), succumbing to years of losses as shoppers thronged fast fashion retailers and competitors. The mall-based retailer listed assets in the range of US$100 million (S$135 million) to US$500 million, and liabilities of between US$100 million and US$500 million, according to a court filing.
http://www.todayonline.com/business/aeropostale-files-chapter-11-bankruptcy-protection-0
http://www.channelnewsasia.com/news/singapore/uncertainty-looms-over/2756160.html
http://www.businesstimes.com.sg/consumer/aeropostale-files-for-bankruptcy

Companies’ Brief

Average DPU of 5 industrial Reits for January-March quarter down 3.5%
With the supply of industrial space here outstripping demand, the average distribution per unit (DPU) for five of the seven industrial real estate investment trusts (Reits) that have released their earnings for the quarter ended March 31, has gone down. The average DPU for the five was 2.1 Singapore cents, down an average 3.5 per cent from the year-ago period, said an SGX (Singapore Exchange) My Gateway report on Wednesday.
http://www.businesstimes.com.sg/companies-markets/average-dpu-of-5-industrial-reits-for-january-march-quarter-down-35