The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 20th, 21st & 22nd May 2023 (Sat, Sun & Mon)

Singapore Real Estate


Private housing rents likely to soften in 2H2023: Savills
Singapore – According to Savills Research, private residential rents will likely soften in 2H2023, despite seeing a 7.2% q-o-q increase in 1Q2023 based on URA data.  Notwithstanding the growth in private residential rents, the consultancy points to a slowing down in the leasing market, with URA figures showing private rental transactions fell 11.7% y-o-y during the first quarter, while HDB rental applications declined 5.2% y-o-y. “[The figures suggest] that demand is falling more out of economic-driven factors than high rents pushing foreign demand away from Singapore,” Savills states in a research report.


Why paying ABSD for a second property beats setting up a trust
If you are thinking of buying a second property, it may be simpler to just pay the additional buyer’s stamp duty (ABSD) than to buy the home under a trust set up for your family members.  Buying a property under a trust now requires an upfront ABSD of 65 per cent of the purchase price, following the hike on April 27 that increased the previous levy of 35 per cent by a whopping 30 percentage points.


Training requirement for property agents to renew licence to be raised from October 2025
Singapore – Property agents will have to meet a higher training requirement to renew their licences from October 2025, in a move by the Council for Estate Agencies (CEA) to raise professional standards in the industry.  They will have to clock 16 hours of training a year, up from the six to nine hours currently required for agents to renew their licence each year.


More than 70% of flats in Bidadari delivered, estate on track for completion
The new Bidadari Housing and Development Board (HDB) estate is on track for completion, with more than 70 per cent of flats in the estate now completed.  HDB said on Sunday (May 21) that 6,418 of the 8,872 flats in the estate have been delivered, with the remaining 2,454 on track to be completed by 2025. Meanwhile, some 5,500 flats will be launched on May 30 across five projects islandwide.


The impact of cooling measures: How HDB resale prices have changed in every Singapore town
Singapore: Singapore has imposed three sets of property cooling measures in less than 18 months – all aimed at bringing prices down in a red-hot market.  But while the quarterly number of Housing Board (HDB) resale transactions has fallen since its peak in 2021, prices have continued to rise, albeit slower than before.  In the first quarter of 2023, the HDB resale price index grew 1 per cent from the preceding quarter – slower than the 2.3 per cent growth in the fourth quarter of 2022. However, it was also the 12th consecutive quarter that the resale price index has increased.


150 HDB flat owners caught buying new homes in restriction period in last 5 years
The desire to live the Singapore dream of upgrading to private property has driven some newer owners of Housing Board flats to jump the gun in investing in a second home, even when they are still barred from doing so.  Owners of HDB flats are prohibited from investing in any private residential home during the minimum occupation period (MOP), which is five years for most flats now.



Singapore Economy


155ha of skyrise greenery up as Singapore closes in on Green Plan target of 200ha
Singapore – Efforts by the National Parks Board (NParks) to restore nature in the urban landscape have reached a milestone with the achievement to date of about 155ha of skyrise greenery, an area larger than 155 football fields. The target is to have 200ha of skyrise greenery under the Singapore Green Plan 2030. To meet this goal, NParks’ Skyrise Greenery Incentive Scheme (SGIS), which provides funding of up to 50 per cent of installation costs for rooftop greenery and vertical greenery projects on existing buildings, had been extended from March 2023 for another three years, to the end of March 2026.


Singapore to build new ‘fast start’ power station to ensure reliable electricity supply
Singapore: Singapore will build a new power station capable of generating electricity quickly to ensure a stable and reliable supply.  On Friday (May 19), the Energy Market Authority (EMA) announced that its subsidiary Meranti Power will build, own, and operate two open cycle gas turbine (OCGT) units housed within the station on Jurong Island.



Companies’ Brief


CDL’s Q1 sales slow to S$213.2 million due to absence of new launch
Property developer City Developments Limited (CDL) saw sales slow in the first quarter ended Mar 31 due to the absence of a new launch during the period. The group and its joint venture associates sold 88 units with a total sales value of S$213.2 million in Q1, compared with 188 units at S$477.9 million in the same period last year, CDL said in an operational update on Friday (May 19).


GIC to jointly acquire commercial assets in India at enterprise value of US$1.4 billion
GIC on Friday (May 19) said that it, in partnership with Brookfield India Real Estate Trust, will acquire two commercial real estate assets in India with an enterprise value of US$1.4 billion.


Hiap Tong expects ‘significantly higher’ FY2023 net profit
Catalist-Listed crane provider Hiap Tong Corporation : 5PO 0% said that it expects to record “significantly higher” net profit after tax for its FY2023 ended Mar 31, as compared with FY2022. In a bourse filing on Saturday (May 20), the group attributed the higher net profit after tax to new construction projects under the lifting and haulage segment, as well as the full resumption of business operations in Singapore and Malaysia after the pandemic.


Savills signs Mou with Malaysia’s UM Land for halal manufacturing hub in Johor
Singapore – Savills’ integrated real estate advisory services (IREAS) has signed a memorandum of understanding with an entity of Malaysian developer UM Land to establish an international manufacturing hub for halal-related businesses in the Iskandar region of Johor. Called the Iskandar Halal Park, it will include a halal logistics centre that offers warehousing, cold storage, and transportation services for halal products. The park is targeted towards halal manufacturers, service providers and investors, with the aim of becoming a halal regional hub.


S-Reits’ operating performance robust in Q1 but some macroeconomic headwinds remain
Singapore-Listed real estate investment trusts (S-Reits) mostly delivered robust operating performance for the first quarter of 2023, with stable occupancy rates and positive rental reversions.  Even though the sector continued to face headwinds from higher borrowing costs and adverse foreign exchange movements, analysts remain optimistic that S-Reits are in a better position for recovery given the potential pause in interest rate hikes.



Global Economy & Real Estate


Oil supply won’t be affected by stricter price cap enforcement: IEA


Oil slips as debt talks pause, Fed warns of high inflation


Biden says US-China relations set to improve ‘very shortly’


US dollar weakens after gains all week


Traders brace for volatility with US debt deal still elusive


US economy headed for downturn in second half of 2023, according to forecasters


Manulife US Reit recapitalisation: Placement of new units to Mirae should be priced at NAV


Uber plans to give up a third of its space at San Francisco headquarters


Confidence returning to UK housing market as asking prices jump: Rightmove


ECB has more ground to cover to tame inflation: Lagarde


Even at record prices, gold continues to retain allure over silver and platinum


Record UK migration surge set to expose government divisions


European banks’ rates bonanza is peaking as savers shift money


ECB needs to keep interest rates ‘sustainably high’ to combat inflation: Lagarde


Hong Kong’s homebuyers return to market, snapping up new flats at In One Above project in Ho Man Tin on Sunday


New anti-heatstroke curbs may boost Hong Kong developer costs


Is green the new black? Hong Kong developers rush to make offices energy efficient to shrink carbon footprint, fight for tenants amid glut


Hong Kong land sale could fetch US$294 million for Kennedy Town plot expected to yield 450 flats


Luxury resort on Dubai’s Palm Islands close to selling for 1.1 billion dirhams


Business tough in China as national security trumps all


China’s yuan jumps after central bank vows to curb speculation


China’s US$23 trillion local debt mess is about to get worse


China budget retailer opens Times Square store in bold US plan


Australia to regulate buy now, pay later sector with credit laws



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Real Estate Developers’ Association of Singapore (REDAS) does not warrant the accuracy, adequacy or completeness of the information and expressly disclaims liability for errors or omissions therein. The content, accuracy, and opinions expressed are not investigated, verified, monitored, nor endorsed by REDAS. Every effort is taken to ensure that all information extracted is correct at the time of dissemination.

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