DAILY NEWS

Daily News – 5th May 2017

Top Story

HDB resale volumes, prices ease in April: SRX
Prices as well as transaction volumes of Housing & Development Board (HDB) resale flats fell last month, according to the latest flash estimates from SRX Property. Its price index for HDB resale flats fell 0.3 per cent last month over March 2017 – reversing the 0.3 per cent month-on-month gain posted in March 2017.

Year on year, the price index also shed 0.3 per cent from April 2016. From the peak in April 2013, the index has slipped 11.4 per cent.
http://www.businesstimes.com.sg/real-estate/hdb-resale-volumes-prices-ease-in-april-srx
http://www.straitstimes.com/singapore/resale-volume-of-hdb-flats-down-4
http://www.todayonline.com/business/hdb-resale-prices-dip-03-volume-falls-4
https://www.srx.com.sg/research/36382/hdb-resale-prices-decrease-by-03-volume-decrease-by-40

MOF mulls greater powers for property tax investigation
Among the three amendments the Ministry of Finance (MOF) is looking to make to the Property Tax Act is one that will give the Inland Revenue Authority of Singapore (IRAS) more enforcement and investigative powers. On Thursday, MOF issued a statement saying that it is conducting a public consultation on the draft Property Tax (Amendment) Bill 2017, and is seeking feedback from stakeholders. One of its proposed amendments seeks to “provide clarity and to enhance the information gathering powers of the Comptroller of Property Tax, the Chief Assessor and the officers authorised by either of them”.
http://www.businesstimes.com.sg/real-estate/mof-mulls-greater-powers-for-property-tax-investigation
http://www.straitstimes.com/business/property/property-tax-notices-to-go-electronic-though-opting-out-allowed-under-changes-up
http://www.channelnewsasia.com/news/singapore/feedback-sought-on-changes-to-property-tax-act-8818978

Singapore Economy

Investment, infrastructure, digital economy to drive Asean prospects: EY
A new report has given an upbeat reading of Asean’s prospects: investment interest in the region in the next five years will be high, as will be infrastructure spending on regional transport connectivity, energy security and digital connectivity. The report by EY, “Rediscover Asean: A growth story of 10 countries”, projected that 87 per cent of US companies expect to increase trade and investment in the regional bloc in the next five years, followed by 86 per cent of Australian companies, 85 per cent of European companies and 55 per cent of Japanese companies.
http://www.businesstimes.com.sg/government-economy/investment-infrastructure-digital-economy-to-drive-asean-prospects-ey
http://www.businesstimes.com.sg/government-economy/asean-to-focus-on-digital-economy-trade-facilitation-in-2018-with-singapore-as
http://www.straitstimes.com/business/economy/combined-asean3-economies-set-to-grow-52-this-year-report
http://www.straitstimes.com/business/spore-to-lead-e-commerce-push-in-region-as-asean-chair
http://www.channelnewsasia.com/news/singapore/singapore-to-focus-on-regional-digital-economy-trade-when-it-8817156
http://www.todayonline.com/business/spore-prioritise-digital-economy-when-it-takes-asean-chair-next-year

Singapore Real Estate

Capitol Singapore’s potential compromised, says judge
The iconic heritage property Capitol Singapore has “fallen into economic slumber” and its potential has been compromised, a High Court judge has said. The impasse over the Stamford Road property has come as relations between the shareholders – real estate veteran Pua Seck Guan and a member of the prominent Kwee family – have soured badly.
http://www.straitstimes.com/business/companies-markets/capitol-singapores-potential-compromised-says-judge

Changi Airport’s Terminal 4 to get 80 retail outlets, ‘heritage zone’
More than 80 retail outlets and a new heritage-themed zone will open at Changi Airport’s Terminal 4 (T4) when it opens in the second half of this year. A quarter of the retail and dining outlets opening at T4 will be new to the airport, Changi Airport Group said in a news release on Friday (May 5).
http://www.channelnewsasia.com/news/singapore/changi-airport-s-terminal-4-to-get-80-retail-outlets-heritage-8819984
http://www.todayonline.com/singapore/revamped-duty-free-shopping-heritage-zone-open-changi-t4-over-80-shops

Investigations into AHTC likely, say observers
Corporate governance experts said it is likely the authorities will hold an investigation into the Workers’ Party (WP) town council, following an auditor’s report that said the town council had failed to ensure proper financial management. The report, released by accounting firm PwC on Tuesday, found that circumstances surrounding the appointment of the town council’s managing agent “may give rise to potential criminal offences under the Penal Code, including criminal breach of trust”.
http://www.straitstimes.com/politics/investigations-into-ahtc-likely-say-observers?login=true

Companies’ Brief

OUE H-Trust Q1 distributable income rises 19.1%
OUE Hospitality Trust (OUE H-Trust)’s distributable income rose 19.1 per cent from S$19.7 million in Q1 2016 to S$23.5 million in the first quarter of 2017 ended March 31, the group reported on Thursday. Revenue also increased by 6.4 per cent to S$32.1 million from S$30.1 million in the corresponding quarter of 2016 for the stapled group, which comprises OUE Hospitality Real Estate Investment Trust (OUE H-Reit) and OUE Hospitality Business Trust.
http://www.businesstimes.com.sg/companies-markets/oue-h-trust-q1-distributable-income-rises-191
http://www.businesstimes.com.sg/companies-markets/oue-hospitality-trusts-distributable-income-up-191-for-q1
http://www.straitstimes.com/business/property/dps-for-oue-h-trust-climbs-182-in-q1

Ascott to open first Citadines in US in 2018
The Ascott Limited, property developer CapitaLand’s wholly owned serviced residence arm, has bought a property on New York’s Fifth Avenue and plans to invest “close to” US$50 million in it, CapitaLand said in a Singapore Exchange filing on Friday morning. Ascott will renovate the operating 125-unit Hotel Central Fifth Avenue New York at 15 West 45th Street and rebrand it to Citadines Fifth Avenue New York in 2018.
http://www.businesstimes.com.sg/companies-markets/ascott-to-open-first-citadines-in-us-in-2018
http://www.straitstimes.com/business/companies-markets/ascott-to-debut-citadines-brand-in-us-with-purchase-of-new-york-fifth

FLT’s Q1 DPU slightly above projection at 1.75 Singapore cents
Industrial landlord Frasers Logistics & Industrial Trust (FLT) on Friday posted a first-quarter distribution per unit (DPU) of 1.75 Singapore cents, above a projected 1.64 Aussie cents. That came as Q1 distributable income was 5.9 per cent above forecast at A$25.1 million (S$26 million), the group said in a Singapore Exchange filing.
http://www.businesstimes.com.sg/companies-markets/flts-q1-dpu-slightly-above-projection-at-175-singapore-cents
http://www.straitstimes.com/business/companies-markets/frasers-logistics-industrial-trust-posts-q1-dpu-of-175-cents-67-better

Mapletree prices S$700m principal amount of 3.95% perpetual securities
A subsidiary of Mapletree Investments Pte Ltd has launched and priced S$700 million principal amount of 3.95 per cent perpetual securities in what is seen to be the largest Singapore dollar-denominated perpetual issuance this year so far.
http://www.businesstimes.com.sg/companies-markets/mapletree-prices-s700m-principal-amount-of-395-perpetual-securities

CDL Hospitality Trusts buy Manchester hotel for £52.5m
The trustee-manager of CDL Hospitality Business Trust has acquired a five-star hotel near Manchester’s city centre by way of acquiring all of the issued share capital of its owner-operator for £52.9 million (S$94.7 million). The trust is part of Singapore-listed CDL Hospitality Trusts (CDLHT).
http://www.businesstimes.com.sg/companies-markets/cdl-hospitality-trusts-buy-manchester-hotel-for-%C2%A3525m

Chip Eng Seng’s Q1 profit surges
Mainboard-listed Chip Eng Seng Corporation reported on Thursday a 647.9 per cent increase in its net profit for the first quarter. For the three months ended March 31, 2017, net profit stood at S$6.1 million, compared to S$817,000 the year before. Earnings per share was 0.98 Singapore cent, against the year-ago quarter’s 0.13 Singapore cent.
http://www.businesstimes.com.sg/companies-markets/chip-eng-sengs-q1-profit-surges

Views, Reviews & Forum

Sabana Reit manager faces Syariah constraints
The recent Sabana saga probably reflects growing attention being paid to Reit fee structures here against a backdrop of increasingly challenging economic conditions. One of the issues is the multi-level fees levied by the Sabana manager, but one is hard-pressed to fault the manager on this aspect alone as its fee structure is within industry norms.
http://www.businesstimes.com.sg/opinion/sabana-reit-manager-faces-syariah-constraints

Building data centres at sea an idea worth floating
There was a time not so long ago when all the data I created or needed was in a box on my desk. In it were several 3.5-inch floppy disks, each with the capacity of about 200KB. With that level of technology, the data needed today just for a smartphone would require a storage space as large as a fridge. Data storage efficiency has improved a zillion times. It will improve further, with researchers looking at atoms as the place to store bits and bytes.
http://www.straitstimes.com/opinion/building-data-centres-at-sea-an-idea-worth-floating?login=true