DAILY NEWS

Daily News – 5 Oct 2022 (Wed)

SINGAPORE REAL ESTATE

Kensington Park condo back on the en bloc market at S$1.28b
Kensington Park condominium in Serangoon Gardens has been relaunched for en bloc sale via tender with an unchanged guide price of S$1.28 billion, sole marketing agent CBRE said on Tuesday (Oct 4).
https://www.businesstimes.com.sg/real-estate/kensington-park-condo-back-on-the-en-bloc-market-at-s128b

Property investment sales plunge in Q3 amid waning business sentiment: Knight Frank
Total property investment sales in Singapore dropped 48.9 per cent in the third quarter to S$4.8 billion, according to a Tuesday (Oct 4) report by real estate consultancy Knight Frank. The market’s negative turnaround from previous quarters of growth was attributed by the company to a decline in business sentiment around the world, exacerbated by worsening economic conditions and rising interest rates.
https://www.businesstimes.com.sg/real-estate/property-investment-sales-plunge-in-q3-amid-waning-business-sentiment-knight-frank

New HDB flats more affordable than housing in comparable cities: Desmond Lee
In Singapore, a first-time home-owning couple with a new four-room Housing Development Board (HDB) flat in a non-mature estate would have a median home price to median household income ratio of four times.
https://www.businesstimes.com.sg/government-economy/new-hdb-flats-more-affordable-than-housing-in-comparable-cities-desmond-lee
https://www.straitstimes.com/singapore/politics/singapore-committed-to-affordable-public-housing-will-intervene-as-needed-desmond-lee
https://www.todayonline.com/singapore/bto-flats-still-affordable-based-govt-benchmarks-despite-high-demand-and-rising-hdb-resale-prices-desmond-lee-2010566

HDB will incur S$270 million development loss from Central Weave BTO flats in Ang Mo Kio, says Desmond Lee
Singapore : The Housing and Development Board (HDB) will incur an estimated development loss of about S$270 million from the Central Weave @ Ang Mo Kio Build-to-Order (BTO) project, Minister for National Development Desmond Lee said in Parliament on Tuesday (Oct 4).
https://www.channelnewsasia.com/singapore/hdb-270-million-loss-central-weave-amk-bto-2985301
https://www.todayonline.com/singapore/ang-mo-kio-bto-loss-s250m-desmond-lee-2010546
https://www.straitstimes.com/singapore/politics/hdb-incurred-270m-loss-for-ang-mo-kio-bto-project-desmond-lee

S-Reit acquisitions up in September, but smaller deals signal weakening appetite amid uncertainty
Despite concerns over rising interest rates and a global economic slowdown, September has emerged as the most active month this year for acquisitions by Singapore-listed real estate investment trusts (S-Reits).
https://www.businesstimes.com.sg/companies-markets/s-reit-acquisitions-up-in-september-but-smaller-deals-signal-weakening-appetite

Poor returns show expanding S-Reit market isn’t giving joy to investors
In the beginning, the Singapore market had just a handful of real estate investment trusts (Reits). These were platforms with predominantly domestic assets. And for the early development of the local Reit sector, it was good.
https://www.businesstimes.com.sg/opinion/poor-returns-show-expanding-s-reit-market-isnt-giving-joy-to-investors

SINGAPORE ECONOMY

Singapore’s household debt, public finances healthy despite volatile high-rate environment: Chee Hong Tat
Amid rising interest rates, Singapore’s household and corporate debt situation remains healthy, as does the government’s financial position, said Senior Minister of State for Finance Chee Hong Tat in Parliament on Tuesday (Oct 4).
https://www.businesstimes.com.sg/government-economy/singapores-household-debt-public-finances-healthy-despite-volatile-high-rate
https://www.straitstimes.com/singapore/politics/support-such-as-flexible-loan-policies-needed-for-sporeans-to-manage-higher-interest-rates-mp-saktiandi
https://www.todayonline.com/singapore/govt-work-financial-institutions-help-borrowers-mortgages-2010981

Rising interest rates: Up to 3.85% for fixed mortgage rate in Singapore; more people placing fixed deposits
Singapore — Property buyers are facing the highest housing loan interest rates in years, with some close to 4 per cent per annum. However, as interest rates are going up, several banks have also reported a spike in the number of customers opening a fixed deposit account with them.
https://www.todayonline.com/singapore/mortgage-rates-highest-years-inflation-2010701
https://www.straitstimes.com/business/banking/homeowners-faced-with-tough-decisions-as-home-loan-rates-rise

Understanding the financial implications of sustainability
There has been growing evidence in recent years that companies with a strong environmental, social and governance (ESG) proposition tend to benefit from superior financial performance. This link became even more evident during the pandemic, a crisis that reinforced the need to foster a more inclusive form of capitalism.
https://www.businesstimes.com.sg/government-economy/strategy-spotlight/understanding-the-financial-implications-of-sustainability

COMPANIES’ BRIEF

Brokers’ take: CGS-CIMB lowers target prices for property plays amid cooling measure
CGS-CIMB has lowered target prices for real estate companies PropNex : OYY 0% and Apac Realty : CLN +1.72% as it expects near-term market prospects to be dampened by the latest set of property cooling measures.
https://www.businesstimes.com.sg/companies-markets/brokers-take-cgs-cimb-lowers-target-prices-for-property-plays-amid-cooling

Cortina Holdings to buy 15 Scotts Road floor for S$49 million
Cortina Holdings will buy over the fourth level of 15 Scotts Road, a freehold commercial building, from Singapore Institute of Management Group for S$49 million, the luxury watch retailer and distributor announced on Tuesday (Oct 4).
https://www.businesstimes.com.sg/companies-markets/cortina-holdings-to-buy-15-scotts-road-floor-for-s49-million

VIEWS, REVIEWS, FORUM AND OTHERS

Singapore designates 4 HDB estates as ‘car-lite’, with more greenery and public transport connections
Singapore: Four public housing estates will be designated as “car-lite” from Oct 31, with parking spaces reduced to make way for more public facilities and greenery, the Housing and Development Board (HDB) and the Land Transport Authority (LTA) said in a joint press release on Wednesday (Oct 5).
https://www.channelnewsasia.com/singapore/car-lite-hdb-ulu-pandan-parking-mount-pleasant-tengah-keppel-club-walking-cycling-2987866

Singapore records 6,888 new Covid-19 cases days after F1 weekend
There were 6,888 new Covid-19 infections on Tuesday (Oct 4), days after the return of the F1 Grand Prix race that attracted more than 300,000 people at the weekend. A day earlier on Monday, there were 2,587 cases.
https://www.businesstimes.com.sg/government-economy/singapore-records-6888-new-covid-19-cases-days-after-f1-weekend
https://www.straitstimes.com/singapore/singapore-records-6888-new-local-covid-19-cases