DAILY NEWS

Daily News – 7th December 2017

Top Story

Singapore property bulls ignore MAS warning into 2018
Property developers in Singapore may extend their share rally into 2018 on a reviving home market, according to money managers and analysts, who say the central bank’s warning on a potential oversupply may not play out for years. After double-digit gains this year, Morgan Stanley sees a 42 per cent jump in shares of CapitaLand, the nation’s largest developer, and a 24 per cent increase in City Developments, the second-biggest, in the next 12 months. Property companies such as City Developments and UOL Group are among the top performers in Singapore in 2017, with developers collectively on track for their best annual performance in five years.
http://www.businesstimes.com.sg/real-estate/singapore-property-bulls-ignore-mas-warning-into-2018

Singapore Economy

Singapore’s ageing population a ticking ‘time bomb’
Singapore’s population will reach a critical juncture next year, as the number of people above 65 will equal those under 15 for the first time in history, UOB economist Francis Tan has said in a research note. But even as the greying demographic exacts its toll on government spending, economists have different takes on how revenue can be raised to fund this spending. In his report, Mr Tan warned that the situation is a ticking “demographic time bomb”, with implications on costs, taxes, labour and productivity.
http://www.businesstimes.com.sg/government-economy/singapores-ageing-population-a-ticking-time-bomb
http://www.straitstimes.com/business/economy/spore-faces-demographic-time-bomb

Govt expenditure on healthcare expected to ‘rise quite sharply’: Heng Swee Keat
Singapore may have to foot a bigger healthcare bill for its ageing population. Government expenditure on healthcare is expected to “rise quite sharply” in the next three to five years, said Finance Minister Heng Swee Keat. He expects it to go up by at least S$3 billion by 2020 from current levels. To put that in perspective, the total budget for the Ministry of Health (MOH) in 2010 was S$4 billion. In this year’s Budget, Mr Heng allocated it S$10 billion. A jump of another S$3 billion by 2020 would mean that, in 10 years, the Budget will climb to more than three times its 2010 level.
http://www.businesstimes.com.sg/government-economy/govt-expenditure-on-healthcare-expected-to-rise-quite-sharply-heng-swee-keat
http://www.straitstimes.com/politics/spending-on-healthcare-expected-to-rise-sharply

PwC calls for threshold for personal tax to be raised to S$40,000
Professional services firm PwC unveiled on Wednesday its wish list for next year’s budget. Among the recommendations it said it has submitted to the Ministry of Finance and the Monetary Authority of Singapore to consider for inclusion in Singapore Budget 2018 is its request that the government help the middle class in Singapore by raising the income threshold for personal income tax from the current S$20,000 to S$40,000.
http://www.businesstimes.com.sg/government-economy/pwc-calls-for-threshold-for-personal-tax-to-be-raised-to-s40000
http://www.straitstimes.com/business/pwc-calls-for-personal-income-tax-tweaks-in-budget-2018

Singapore Real Estate

Spring Court restaurant owner pays S$52.9m for Jervois Green
Jervouis Green, a four-storey freehold development at 100A Jervois Road, has been sold for S$52.9 million to investors led by Mike Ho, third-generation owner of Spring Court, one of Singapore’s oldest Chinese restaurants. The price works out to a land rate of S$1,601 per square foot per plot ratio inclusive of an estimated S$6.95 million development charge.
http://www.businesstimes.com.sg/real-estate/spring-court-restaurant-owner-pays-s529m-for-jervois-green-0
http://www.straitstimes.com/business/property/jervois-green-sold-for-529m-to-investors-led-by-eatery-owner

Brookvale Park in Sunset Way up for en bloc sale
Brookvale Park, located along Sunset Way in Clementi, has been launched for sale by tender for a minimum price of S$530 million. Built in 1983, the 373,008 square feet (sq ft) site is zoned “Residential” with a gross plot ratio of 1.6. According to sole marketing agent JLL, the 999-year leasehold site could be potentially redeveloped from its current 160 units into a residential development of 550 units across 12 storeys, with an average unit size of 1,100 sq ft.
http://www.businesstimes.com.sg/real-estate/brookvale-park-in-sunset-way-up-for-en-bloc-sale-0
http://www.straitstimes.com/business/property/brookvale-park-condo-launched-for-collective-sale

Companies’ Brief

Dennis Wee Realty hit with record S$66,000 fine
Dennis Wee Realty (DWR) has been fined a record S$66,000 by the Council for Estate Agencies’ (CEA) disciplinary committee for not highlighting to investors the risks involved in buying overseas properties. DWR was also banned from transacting or marketing properties abroad for 12 months with effect from Nov 24, 2017.
http://www.businesstimes.com.sg/real-estate/dennis-wee-realty-hit-with-record-s66000-fine
http://www.straitstimes.com/business/property/dennis-wee-realty-fined-record-66000?login=true

CRCT gets nod to list 64.4m new units at S$1.612 apiece from upsized placement
CapitaLand Retail China Trust (CRCT) on Thursday said it has obtained in-principle approval from the Singapore Exchange (SGX) for the listing of new units from its upsized S$103.8 million private placement of new units at S$1.612 apiece.
http://www.businesstimes.com.sg/companies-markets/crct-gets-nod-to-list-644m-new-units-at-s1612-apiece-from-upsized-placement
http://www.straitstimes.com/business/companies-markets/crct-gets-nod-to-list-644m-new-shares-at-s1612-apiece-from-upsized

First Sponsor partners shareholders CDL, Tai Tak to acquire Le Meridien Frankfurt Hotel
First Sponsor Group Limited is making its first foray into Germany in partnership with its key shareholders City Developments Limited (CDL) and Tai Tak Estates Sdn Bhd to acquire the Le Méridien Frankfurt Hotel in Germany for about 85 million euros (S$135.9 million).
http://www.businesstimes.com.sg/companies-markets/first-sponsor-partners-shareholders-cdl-tai-tak-to-acquire-le-meridien-frankfurt
http://www.straitstimes.com/business/companies-markets/first-sponsor-partners-shareholders-cdl-tai-tak-to-acquire-frankfurt

Wee Hur moves to sell Australia land for A$79m
Property firm Wee Hur Holdings on Wednesday said it has entered into a put and call option agreement to sell a plot of land fronting Ann Street, Brisbane, Australia for A$79 million (S$81.2 million). This follows approval obtained from Wee Hur shareholders in late April to sell the land to Mirvac Projects Pty Ltd.
http://www.businesstimes.com.sg/companies-markets/wee-hur-moves-to-sell-australia-land-for-a79m