Singapore Real Estate
Slowing markets, still-high financing costs cloud outlook for Singapore property companies
Profit warnings have come thick and fast since December from Singapore-listed property companies ahead of the start of reporting season last week. However, cost pressures and current market weakness are not expected to hurt too much, said investment analysts, though numbers may be less than stellar.
https://www.businesstimes.com.sg/property/slowing-markets-still-high-financing-costs-cloud-outlook-singapore-property-companies
The distortionary effects of ABSD on the property market
I read the article Let local couples jointly own two private homes without incurring ABSD (BT, Jan 8, 2024) with interest and thought that the suggestion certainly makes sense. Why would two individuals be allowed to own two separate properties, but a married couple be restricted to one? Certainly, one could view this as a clear disincentive to tie the knot.
https://www.businesstimes.com.sg/opinion-features/distortionary-effects-absd-property-market
Singapore Economy
Singapore draws $12.7b in fixed asset investments in 2023, set to create over 20,000 jobs
Singapore – The Republic attracted $12.7 billion in fixed asset investments in 2023 amid a challenging global environment that impacted business and investor sentiment, the Economic Development Board (EDB) said on Jan 30.
https://www.straitstimes.com/business/economy/singapore-draws-127b-in-fixed-assets-investments-in-2023-set-to-create-over-20000-jobs
Red Sea shipping crisis could see more costly food, higher inflation in Singapore
Singapore – With the festive season around the corner and the Red Sea crisis still playing out, observers say prices of goods here could rise, fuelling inflation. Still, the analysts said any impact on inflation will not be as severe as during the Covid-19 pandemic, while supermarket chain NTUC FairPrice has pledged to keep prices stable for as long as it can.
https://www.straitstimes.com/business/red-sea-shipping-crisis-could-see-more-costly-food-higher-inflation-in-singapore
Global anti-graft watchdog places Singapore as 5th least corrupt country in world index
Singapore – Global anti-graft watchdog Transparency International has ranked Singapore as the fifth least corrupt country in the world, with a score that also places the Republic as the least corrupt nation in Asia.
https://www.straitstimes.com/singapore/courts-crime/global-anti-graft-watchdog-places-singapore-as-5th-least-corrupt-country-in-world-index
https://www.channelnewsasia.com/singapore/singapore-ranks-fifth-least-corrupt-country-world-2023-4085011
https://www.scmp.com/news/asia/southeast-asia/article/3250326/singapore-ranked-5th-least-corrupt-country-2023-only-asian-nation-top-10-denmark-finishes-first
Companies’ Brief
Frasers Logistics & Commercial Trust leases 128,000 sq m in Q1, posts 95.8% occupancy rate
Frasers Logistics & Commercial Trust (FLCT) leased 128,000 sq m of space across its portfolio in the first quarter ended Dec 31, with a portfolio occupancy rate of 95.8 per cent. The leased space includes the 62,000 sq m lease at the newly completed Ellesmere Port in North West England in the UK, FLCT said in a business update on Tuesday (Jan 30).
https://www.businesstimes.com.sg/companies-markets/frasers-logistics-commercial-trust-leases-128000-sq-m-q1-posts-958-occupancy-rate
https://www.straitstimes.com/business/companies-markets/frasers-logistics-commercial-trust-leases-128000-sq-m-in-q1-posts-958-occupancy-rate
https://www.theedgesingapore.com/news/reits/flct-maintains-portfolio-occupancy-958
GuocoLand H1 profit rises 12% to S$66.2 million on revenue growth
Real estate group GuocoLand reported net profit of S$66.2 million for the first half ended Dec 31, 2023, up 12 per cent year on year from S$59 million. Earnings per share for H1 rose 15 per cent to S$0.0513, from S$0.0446 previously.
https://www.businesstimes.com.sg/companies-markets/guocoland-h1-profit-rises-12-s662-million-revenue-growth
https://www.theedgesingapore.com/capital/results/guocoland-reports-1hfy2024-earnings-662-mil-12-higher-y-o-y-revenue-surged-61
UOB seeks S$92 million in losses from Lippo housing unit over inflated home loans
UOB is seeking to get S$92 million from Indonesian developer Lippo Marina Collection (LMC) over losses incurred from disbursing approximately S$182 million in inflated home loans.
https://www.businesstimes.com.sg/companies-markets/banking-finance/uob-seeks-s92-million-losses-lippo-housing-unit-over-inflated
Global Economy & Real Estate
Fed’s first meeting of 2024 will give clues of its pivot to easier monetary policy
https://www.businesstimes.com.sg/opinion-features/feds-first-meeting-2024-will-give-clues-its-pivot-easier-monetary-policy
US consumer confidence climbs to highest since end of 2021
https://www.businesstimes.com.sg/international/us-consumer-confidence-climbs-highest-end-2021
US job openings unexpectedly rise in December
https://www.businesstimes.com.sg/international/us-job-openings-unexpectedly-rise-december
https://www.straitstimes.com/business/economy/us-job-openings-unexpectedly-rise-quits-at-two-year-low
US home-price growth slows as high mortgage rates squeeze demand
https://www.businesstimes.com.sg/property/us-home-price-growth-slows-high-mortgage-rates-squeeze-demand
Australia inflation slows sharply to two-year low in Q4
https://www.channelnewsasia.com/business/australia-inflation-slows-sharply-two-year-low-q4-4087231
https://www.businesstimes.com.sg/international/australian-inflation-cools-further-easing-rba-rate-pressure
IMF revises up Asia’s growth forecast, warns of China risk
https://www.channelnewsasia.com/business/imf-revises-asias-growth-forecast-warns-china-risk-4085626
Shanghai eyes Singapore as it chases foreign investments amid slowing economy
https://www.straitstimes.com/business/shanghai-eyes-singapore-as-it-chases-foreign-investments-amid-slowing-economy
China’s real estate crisis ‘has not touched bottom’
https://www.businesstimes.com.sg/property/chinas-real-estate-crisis-has-not-touched-bottom
Red Sea crisis seen boosting air freight rates as China factory holiday looms
https://www.businesstimes.com.sg/international/global/red-sea-crisis-seen-boosting-air-freight-rates-china-factory-holiday-looms
https://www.channelnewsasia.com/business/air-freight-rates-rise-amid-red-sea-crisis-and-run-chinese-new-year-4085106
Eurozone economy stagnates as Germany struggles
https://www.businesstimes.com.sg/international/eurozone-economy-stagnates-germany-struggles
https://www.straitstimes.com/business/economy/euro-zone-narrowly-dodges-recession
German economy contracted in Q4, recession on cards in Q1
https://www.businesstimes.com.sg/international/german-economy-contracted-q4-recession-cards-q1
Hong Kong authorities repossess 330 public rental flats, 40 errant tenants to be penalised
https://www.scmp.com/news/hong-kong/society/article/3250337/hong-kong-authorities-repossess-330-public-rental-flats-40-errant-tenants-be-prosecuted
Should private developers take over parts of Hong Kong’s ambitious Northern Metropolis mega project?
https://www.scmp.com/news/hong-kong/article/3250216/should-private-developers-take-over-parts-hong-kongs-ambitious-northern-metropolis-mega-project
Hong Kong property tycoon Ronnie Chan hands reins to son
https://www.businesstimes.com.sg/companies-markets/hong-kong-property-tycoon-ronnie-chan-hands-reins-son
https://www.scmp.com/business/companies/article/3250324/hong-kong-property-conglomerate-hang-lung-unveils-change-guard-its-helm-no-major-strategic-changes
Japan job market remains tight, keeping hopes for wage hikes
https://www.businesstimes.com.sg/international/japan-job-market-remains-tight-keeping-hopes-wage-hikes
BOJ should end risky asset buying if price goal in sight
https://www.channelnewsasia.com/business/boj-should-end-risky-asset-buying-if-price-goal-sight-meeting-summary-4087166
Japan Dec factory output rises 1.8% month/month
https://www.channelnewsasia.com/business/japan-dec-factory-output-rises-18-month-month-4087141
https://www.businesstimes.com.sg/international/japan-factory-output-rebounds-while-retail-sales-cast-shadow
South Korea Jan exports likely rose for fourth month on chip recovery
https://www.channelnewsasia.com/business/south-korea-jan-exports-likely-rose-fourth-month-chip-recovery-reuters-poll-4084686
UK mortgage approvals hit six-month high as rates ease
https://www.businesstimes.com.sg/property/uk-mortgage-approvals-hit-six-month-high-rates-ease
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