DAILY NEWS

Daily News – 8th February 2018

Top Story

Budget not expected to target property upswing
With the real estate upturn, calls for the government to lift property cooling measures have tailed-off noticeably. Instead developers and property investors are now keeping their fingers crossed against any new Budget “sticks” that might affect the sector’s nascent rebound. Apart from the possibility of revenue-raising tax tweaks that may affect property, the market in general does not expect any Budget measure targeted at the real estate sector, especially since such measures have traditionally been introduced outside of the annual Budget. In addition, market watchers also noted that there are already many anti-speculative measures still in place.
http://www.businesstimes.com.sg/government-economy/singapore-budget-2018/budget-not-expected-to-target-property-upswing

Singapore Economy

Singapore government still studying e-commerce tax: Indranee
With less than two weeks to go till the unveiling of Budget 2018 on Feb 19, the government is still studying the best way to implement an e-commerce tax, Senior Minister of State for Law and Finance Indranee Rajah said on Wednesday.
http://www.businesstimes.com.sg/government-economy/singapore-budget-2018/singapore-government-still-studying-e-commerce-tax-indranee
http://www.straitstimes.com/politics/e-commerce-tax-still-being-studied-indranee

Share of job vacancies for PMETs up in 2017
The number of job vacancies declined for the third year in a row last year, but more were for professionals, managers, executives and technicians (PMETs), reflecting the overall shift towards higher value-added jobs.
http://www.businesstimes.com.sg/government-economy/share-of-job-vacancies-for-pmets-up-in-2017
http://www.straitstimes.com/singapore/manpower/more-vacancies-for-pmets-even-as-job-openings-shrink

Singapore Real Estate

Tax experts on how to burnish Singapore’s status as Reit listing hub
Tax experts, in the run-up to Budget 2018, have tossed up a number of proposals to enhance the real estate investment trust (Reit) sector in Singapore. These include introducing tax transparency for exchange-traded funds (ETFs) tracking Reits and for wholly-owned subsidiaries of Reits.
http://www.businesstimes.com.sg/government-economy/singapore-budget-2018/tax-experts-on-how-to-burnish-singapores-status-as-reit

Singapore office, retail rents to see strong growth over next few years: report
Singapore’s office rental growth is likely to see the strongest overall growth over the next three years, according to M&G Real Estate’s latest market outlook on real estate in the Asia-Pacific region. M&G expects rental growth in Singapore offices to rise at 6 per cent per annum over the next three years, driven by a medium-term grade A supply drought.
http://www.businesstimes.com.sg/real-estate/singapore-office-retail-rents-to-see-strong-growth-over-next-few-years-report

Freehold development City Towers sold for S$401.9m
City Towers, a freehold development in prime District 10, has been sold for S$401.9 million to an undisclosed buyer, an announcement by real estate services firm Colliers late on Wednesday said. The sale price – which is more than 13 per cent above the owners’ reserve price – works out to a land rate of approximately S$1,847 per square foot per plot ratio (psf ppr), after factoring in a development charge of S$3.5 million.
http://www.businesstimes.com.sg/real-estate/freehold-development-city-towers-sold-for-s4019m
http://www.straitstimes.com/business/property/city-towers-sold-for-4019m
http://www.todayonline.com/singapore/city-towers-sold-s4019m-latest-en-bloc-sale

WeWork set to grow Singapore footprint to over 300,000 sq ft
US-based co-working space provider WeWork, which launched its operations in Singapore only last December, is set to expand its presence. The Business Times understands that it has signed up at several new locations – including City House and Mapletree Anson – and is in advanced discussions at others, such as 8 Cross Street and Suntec Tower 5.
http://www.businesstimes.com.sg/real-estate/wework-set-to-grow-singapore-footprint-to-over-300000-sq-ft

Singapore investors in UK project worry about costs of fixing fire hazard
Several Singapore investors have found themselves in a limbo over their units in a luxury building apartment outside of London after it was found to be a fire hazard last year. The building warranty provider, BLP, has not yet decided if it will cover the cost of replacing the cladding and the compartmentalisation for Nova House, which was converted from an office block.
http://www.businesstimes.com.sg/real-estate/singapore-investors-in-uk-project-worry-about-costs-of-fixing-fire-hazard

Rate of workplace deaths hit 13-year low in 2017
The rate of workers dying from workplace injuries hit a 13-year low last year, with 1.2 deaths per 100,000 employees. This was revealed by Second Minister for Manpower and Home Affairs Josephine Teo yesterday at the annual bizSafe convention in the Singapore Expo.
http://www.straitstimes.com/singapore/rate-of-workplace-deaths-hit-13-year-low-in-2017

Five projects to give drone estate lift-off
Testing the use of drones for parcel deliveries, security checks and the inspection of buildings may soon take off at Singapore’s first drone estate at one-north in Buona Vista. Plans to designate the 200ha business park as an estate for drones, or unmanned aircraft systems, were first announced by Transport Minister Khaw Boon Wan on the sidelines of the Singapore Airshow 2018 on Monday.
http://www.straitstimes.com/singapore/transport/five-projects-to-give-drone-estate-lift-off

Companies’ Brief

SingHaiyi’s Q3 net profit up 12.8%; revenue more than triples
SingHaiyi Group on Wednesday posted a 12.8 per cent increase in net profit to S$1.4 million for its third quarter ended Dec 31, 2017, as revenue more than tripled to S$41.7 million. The property developer said the surge in turnover arose mainly from the revenue recognised for its completed executive condominium project, The Vales, as well as sales of completed units from Vietnam Town in the US.
http://www.businesstimes.com.sg/companies-markets/singhaiyis-q3-net-profit-up-128-revenue-more-than-triples

Parkway Life Reit buys nursing home in Saitama prefecture for 1.5 billion yen
Parkway Life Reit on Wednesday announced the acquisition of a nursing rehabilitation facility, Konosu Nursing Home Kyoseien, under a sale-and-leaseback agreement with nursing home operator Iryouhoujin Shadan Kouaikai for 1.5 billion yen (S$17.8 million). The acquisition of the 120-room property in Saitama prefecture will be made at 7.4 per cent below the valuation of 1.62 billion yen as at end-December 2017 by KK Halifax Associates.
http://www.businesstimes.com.sg/companies-markets/parkway-life-reit-buys-nursing-home-in-saitama-prefecture-for-15-billion-yen
http://www.straitstimes.com/business/companies-markets/parkway-life-reit-buying-japanese-nursing-home-for-18m

Frasers Hospitality invests US$250m in serviced residence in Tokyo’s Ginza
Frasers Hospitality, part of Frasers Property Group, is investing US$250 million to develop a new serviced residence in the Ginza district in Tokyo. The property, to be launched under its millennial-focused hotel residence brand Capri by Fraser, is expected to open around 2020.
http://www.businesstimes.com.sg/real-estate/frasers-hospitality-invests-us250m-in-serviced-residence-in-tokyos-ginza

First Sponsor Q4 profit falls 41.5% in absence of one-off gain; announces rights, bonus issues
Despite a big jump in revenue, mainboard-listed First Sponsor Group saw earnings fall 41.5 per cent to S$42.7 million for its fiscal fourth quarter from the year ago period. The property group, whose key shareholders are City Developments Limited and Tai Tak Estates Sdn Bhd, attributed the drop to the absence of a one off gain of S$97.3 million arising from the partial Star of East River Project divestment in fiscal 2016’s fourth quarter.
http://www.businesstimes.com.sg/companies-markets/first-sponsor-q4-profit-falls-415-in-absence-of-one-off-gain-announces-rights
http://www.straitstimes.com/business/companies-markets/first-sponsor-q4-profit-falls-415-in-absence-of-one-off-gain-announces

Perennial Q4 profit up 7.9% to S$27.6m
Perennial Real Estate saw its fourth-quarter net profit rising 7.9 per cent to S$27.6 million from S$25.6 million last year, largely driven by net fair value gains on the revaluation of investment properties held through its subsidiaries and joint ventures, the integrated real estate and healthcare company said on Thursday.
http://www.businesstimes.com.sg/companies-markets/perennial-q4-profit-up-79-to-s276m
http://www.straitstimes.com/business/companies-markets/perennial-q4-profit-up-79-to-s276m

Roxy-Pacific to buy adjoining property on Lorong Kismis
A subsidiary of Roxy-Pacific Holdings has entered into a put and call agreement to acquire a property, 19 Lorong Kismis, for S$5.7 million. The property, a residential site with a tenure of 99 years from Nov 9, 1960, has estimated total land area of 9,473 square feet with an existing plot ratio of 1.4. Roxy-Pacific said that it intends to amalgamate the property with the other development it has agreed to buy, Kismis View, for residential development.
http://www.businesstimes.com.sg/companies-markets/roxy-pacific-to-buy-adjoining-property-on-lorong-kismis
http://www.straitstimes.com/business/companies-markets/roxy-pacific-to-buy-adjoining-property-on-lorong-kismis

OKP Holdings subsidiary to purchase Perth property for A$43.5m
OKP Holdings announced that its subsidiary Bennett WA Investment has entered into a contract for sale to purchase a property in East Perth, Western Australia for A$43.5 million (S$45.2 million). The group intends to purchase the property for investment, and the rental income is expected to contribute to the revenue of the Group.
http://www.businesstimes.com.sg/companies-markets/okp-holdings-subsidiary-to-purchase-perth-property-for-a435m

Views, Reviews & Forum

Asean e-commerce – Hidden tigers meet tech dragons
With 158 million middle-class consumers, Asean is often seen as the next frontier for the e-commerce market. Despite experiencing rapid expansion over the past five years, e-commerce penetration is still less than 2 per cent of total retail sales in Asean. For context, this was where China was in 2010 and only a tenth of Chinese e-commerce penetration today.
http://www.businesstimes.com.sg/opinion/asean-e-commerce-hidden-tigers-meet-tech-dragons

Shaking up Singapore’s transfer pricing regime
When the Inland Revenue Authority of Singapore (IRAS) published the first edition of the Singapore Transfer Pricing (TP) Guidelines in 2006, it was a concise circular of just 42 pages. The overall messaging of the circular was friendly – it laid out the key transfer pricing concepts and guiding principles, recommending (but not mandating) taxpayers to prepare transfer pricing documentation to reduce the risk of double taxation.
http://www.businesstimes.com.sg/opinion/shaking-up-singapores-transfer-pricing-regime