DAILY NEWS

Daily News – 26 July 2022 (Tue)

SINGAPORE REAL ESTATE

Chuan Park homeowners to get proceeds of S$1.16m to S$2.53m; some unhappy over lack of timely updates
Owners of the 444 homes at Chuan Park condominium, which was sold en bloc on July 5, will receive gross proceeds of about S$1.16 million for a 710 square foot (sq ft) unit and up to S$2.53 million for a 2,045 sq ft unit.
https://www.businesstimes.com.sg/real-estate/chuan-park-homeowners-to-get-proceeds-of-s116m-to-s253m-some-unhappy-over-lack-of-timely

Meyer Park launched for collective sale at S$420m reserve price
A freehold seafront residential site at 81 and 83 Meyer Road has been launched for collective sale at a reserve price of S$420 million. This works out to a land rate of about S$1,720 per square feet per plot ratio (psf ppr) after factoring in a development charge of S$78.2 million, which factors in a 7 per cent bonus floor area.
https://www.businesstimes.com.sg/real-estate/meyer-park-launched-for-collective-sale-at-s420m-reserve-price
https://www.straitstimes.com/business/property/meyer-park-in-marine-parade-launched-for-collective-sale-at-420-million

GCB market may be hurt by higher taxes and weaker wealth creation
Every Singapore citizen can buy one private home here, without incurring additional buyer’s stamp duty (ABSD). Permanent residents (PRs) buying their first home pay ABSD of 5 per cent. The ABSD rate for home purchases was raised in late 2021 for all buyers, except citizens and PRs who are buying their first home.
https://www.businesstimes.com.sg/opinion/gcb-market-may-be-hurt-by-higher-taxes-and-weaker-wealth-creation

Auctions rebound in Q2 as interest rates surge: Knight Frank
Auction listings rebounded by 47.5 per cent in Q2 2022 as interest rates surged, according to Knight Frank’s market update on Monday (Jul 25). Including repeat listings and excluding properties sold outside of auction, 118 properties were listed in Q2, of which 50 were recorded in June when the Federal Reserve announced the most aggressive benchmark interest rate hike since 1994 at 0.75 percentage points.
https://www.businesstimes.com.sg/real-estate/auctions-rebound-in-q2-as-interest-rates-surge-knight-frank
https://www.straitstimes.com/business/property/property-auctions-rebound-in-q2-as-interest-rates-surge-knight-frank

S-Reits’ results to test reopening, recovery narrative as risks loom
Most of the Singapore-listed real estate investment trusts (S-Reits) are scheduled to announce their latest quarterly results for the period ended Jun 30 over the next couple of weeks. The S-Reits’ performance over the first half of the year – particularly in the latest quarter to June – will test the strength of the sector’s recovery from the Covid-19 pandemic.
https://www.businesstimes.com.sg/companies-markets/s-reits-results-to-test-reopening-recovery-narrative-as-risks-loom

More information from Reit managers could comfort investors as inflation, interest rates surge
Surging inflation and interest rate hikes are likely to be at the top of the minds of investors in Singapore-listed real estate investment trusts (S-Reits), as earnings season rolls in. After all, the European Central Bank (ECB) late last week hiked interest rates for the first time in over a decade, while the US Federal Reserve is expected to increase rates again later this week.
https://www.businesstimes.com.sg/opinion/more-information-from-reit-managers-could-comfort-investors-as-inflation-interest-rates

SINGAPORE ECONOMY

Singapore inflation busts analyst forecasts in June; more MAS policy tightening expected
Singapore inflation blew past analysts’ expectations and surged in June to levels last seen during the tail end of the global financial crisis (GFC), when energy prices were high. All the same, analysts do not expect the central bank to ease policy settings – as the Monetary Authority of Singapore (MAS) did then, when gross domestic product (GDP) was in decline.
https://www.businesstimes.com.sg/government-economy/singapore-inflation-busts-analyst-forecasts-in-june-more-mas-policy-tightening

Singapore core inflation hits 4.4% in June, highest level since global financial crisis
Singapore’s core inflation hit 4.4 per cent in June – up from 3.6 per cent in May, and the first time that it has breached the 4.0 per cent handle since end-2008. Meanwhile, headline inflation – which includes accommodation and private transport costs – surged to 6.7 per cent, from 5.6 per in May, according to figures out on Monday (Jul 25).
https://www.businesstimes.com.sg/government-economy/singapore-core-inflation-hits-44-in-june-highest-level-since-global-financial
https://www.straitstimes.com/business/economy/spore-core-inflation-in-june-hits-new-record-at-44

Inflation rose the most for high-income group in first half of 2022
Singapore – The highest-income group in Singapore saw the largest increase in consumer prices in the first half of 2022, compared to other income groups. Those whose household incomes were in the highest 20 per cent bracket saw a 6 per cent year-on-year increase in consumer price index (CPI) for all items during the period, according to data released by the Department of Statistics (SingStat) on Monday (July 25).
https://www.straitstimes.com/business/inflation-rose-the-most-for-high-income-groups-in-first-half-of-2022

S’pore firms start to feel benefits of stronger Singdollar but competitiveness could be hit
Singapore – Companies here that deal with overseas trade as part of their business have recently been experiencing – or are now beginning to – the impact of a strengthening Singapore dollar. The effect goes two ways: A stronger local currency tends to make imports cheaper for businesses such as property developers, food and beverage (F&B) businesses like supermarkets and restaurants, as well as retailers that purchase materials or products from abroad.
https://www.straitstimes.com/business/economy/spore-firms-start-to-feel-impact-of-stronger-singdollar-but-competitiveness-could-be-hit

SMEs should seize ‘window of opportunities’ in digital and green economies, supply chain movement: panel
With the reopening of Singapore’s economy, small and medium-sized enterprises (SMEs) should seize the “window of opportunities” in the post-pandemic era, especially in the digital economy, green economy, and supply chain movement, said panellists at a forum.
https://www.businesstimes.com.sg/sme/smes-should-seize-window-of-opportunities-in-digital-and-green-economies-supply-chain-movement

COMPANIES’ BRIEF

CapitaLand China Trust posts 3.1% drop in H1 DPU to S$0.041
CapitaLand China Trust (CLCT) on Tuesday (Jul 26) posted a 3.1 per cent year-on-year drop in H1 DPU to S$0.041 after opting to retain S$3.6 million of the amount available for distribution for financial flexibility.
https://www.businesstimes.com.sg/companies-markets/capitaland-china-trust-posts-31-drop-in-h1-dpu-to-s0041

Keppel DC Reit posts 2.5% growth in H1 DPU amid rising energy costs, currency fluctuations
Data centre-focused Keppel Data Centre (DC) real estate investment trust (Reit) reported 2.5 per cent growth in its H1 2022 distribution per unit (DPU) to S$0.05049 from S$0.04924 a year prior.
https://www.businesstimes.com.sg/companies-markets/keppel-dc-reit-posts-25-growth-in-h1-dpu-amid-rising-energy-costs-currency

Mapletree Industrial Trust reports 4.2% year-on-year gain in Q1 DPU to 3.49 cents
Mapletree Industrial Trust (MIT) reported a 4.2 per cent year-on-year gain in distribution per unit (DPU) to 3.49 cents in the first quarter of its financial year ended Jun 30, its manager said on Monday (Jul 25). Sequentially however, its DPU was flat.
https://www.businesstimes.com.sg/companies-markets/mapletree-industrial-trust-reports-42-year-on-year-gain-in-q1-dpu-to-349-cents

OUE Commercial Reit 1H 2022 DPU falls 12.2 per cent on lower net property income
Mainboard-listed OUE Commercial real estate investment trust (Reit) on Monday (Jul 25) reported a 12.2 per cent fall in 1H 2022 distribution per unit (DPU) to S$0.0108 from S$0.0123 a year prior.
https://www.businesstimes.com.sg/companies-markets/oue-commercial-reit-1h-2022-dpu-falls-122-per-cent-on-lower-net-property-income

Aims Apac Reit Q1 DPU up 1.3% to S$0.0228
Aims Apac Real Estate Investment Trust’s (AA Reit) distribution per unit (DPU) rose by 1.3 per cent to S$0.0228 in the first quarter of FY2023, from S$0.0225 in the year-ago period. Gross revenue was up 29.8 per cent to S$41.3 million in Q1, from S$31.8 million a year ago, while net property income (NPI) grew 34.3 per cent to S$31 million, from S$23.1 million last year.
https://www.businesstimes.com.sg/companies-markets/aims-apac-reit-q1-dpu-up-13-to-s00228

ESR raises over US$1 billion in first close of inaugural data centre fund
Real asset manager ESR Group on Monday (Jul 25) announced the first close of more than US$1 billion in equity commitments for its inaugural data centre fund. The Hong Kong-listed company said in a statement it will raise a separate discretionary capital sleeve to co-invest into its Data Centre Fund 1, which will likely close the balance of the fund at the hard cap of US$1.5 billion.
https://www.businesstimes.com.sg/companies-markets/esr-raises-over-us1-billion-in-first-close-of-inaugural-data-centre-fund

Hwa Hong’s directors clarify intentions of potential competing offerors
Hwa Hong’s directors have clarified that none of the potential competing offerors will be making an offer for the company. This comes as the Securities Industry Council laid down a Jul 25 deadline for potential competing offerors to make a firm intention about their offer.
https://www.businesstimes.com.sg/companies-markets/hwa-hongs-directors-clarify-intentions-of-potential-competing-offerors

VIEWS, REVIEWS, FORUM AND OTHERS

Train, support workers to bring out their best: Manpower Minister Tan See Leng
Singapore – As many as eight in 10 employers here allow flexible work, but many are doing it so casually that job seekers, and even their own employees, know nothing about their flexible work option.
https://www.straitstimes.com/singapore/jobs/train-support-workers-to-bring-out-their-best-manpower-minister-tan-see-leng

Rise of ‘buy now, pay later’ creates a blind spot
There’s a glaring contradiction in the “buy now, pay later” (BNPL) business. Companies are building empires on serving the unbanked and underbanked populations, which have long been starved of credit.
https://www.businesstimes.com.sg/garage/rise-of-buy-now-pay-later-creates-a-blind-spot

Singapore reports 9th case of monkeypox
Singapore – One monkeypox case was reported in Singapore on Monday (July 25), bringing the total number of cases detected here to nine. The 31-year-old male Philippine national tested positive on Monday, and is currently warded at Singapore General Hospital, said the Ministry of Health (MOH) in an update on its website.
https://www.straitstimes.com/singapore/singapore-reports-9th-case-of-monkeypox

Covid-19 vaccination for kids aged 4 and below to be ready around year end: MOH
Singapore – Covid-19 vaccination for children aged between six months and four years will likely be ready towards the fourth quarter of this year, the Ministry of Health (MOH) said on Monday (July 25).
https://www.straitstimes.com/singapore/covid-19-vaccination-for-children-between-six-months-and-four-years-to-be-ready-around-year-end-moh