SINGAPORE REAL ESTATE
Redevelopment of ageing CBD buildings gains momentum; pick-up helps support pandemic rents
The take-up of two government schemes that incentivise the redevelopment of ageing buildings in certain areas has picked up, and will inject buzz in those precincts as new mixed-use developments emerge, analysts said.
https://www.businesstimes.com.sg/real-estate/redevelopment-of-ageing-cbd-buildings-gains-momentum-pick-up-helps-support-pandemic
Singapore slaps 35% ABSD on residential property transfers into living trust, closing loophole
An additional Buyer’s Stamp Duty (ABSD) of 35 per cent will be imposed on any transfer of residential property into a living trust, where the transfer occurs from May 9, the Ministry of Finance announced late on Sunday night (May 8).
https://www.businesstimes.com.sg/real-estate/singapore-slaps-35-absd-on-residential-property-transfers-into-living-trust-closing
https://www.straitstimes.com/business/property/absd-of-35-to-be-levied-on-transfers-of-residential-property-to-living-trust
Piccadilly Grand sells 77% of units at average S$2,150 psf on launch weekend
Piccadilly Grand, a joint residential project by City Developments Limited (CDL) and MCL Land, has sold 315 out of 407 units – or 77 per cent of units – at an average selling price of S$2,150 per square foot (psf).
https://www.businesstimes.com.sg/real-estate/piccadilly-grand-sells-77-of-units-at-average-s2150-psf-on-launch-weekend
https://www.straitstimes.com/business/companies-markets/piccadilly-grand-sells-77-of-units-at-average-2150-psf-on-launch-weekend
Golden Mile Complex sold to Far East, Perennial, Sino Land for S$700m
Conservation landmark Golden Mile Complex has been sold to a consortium comprising Far East Organization, Perennial Holdings and Sino Land for S$700 million, sole marketing agent Edmund Tie announced on Friday (May 6).
https://www.businesstimes.com.sg/real-estate/golden-mile-complex-sold-to-far-east-perennial-sino-land-for-s700m
https://www.straitstimes.com/business/property/golden-mile-complex-sold-for-700m-developers-to-restore-building
Bukit Sembawang starts previews for Liv @ MB; units priced from S$1.08m to S$3.63m
Bukit Sembawang Estates’ project Liv @ MB in the Mountbatten area opened for preview on Friday (May 6), with indicative prices ranging from S$1.08 million for a 1-bedroom unit to S$3.63 million for a 4-bedroom deluxe one.
https://www.businesstimes.com.sg/real-estate/bukit-sembawang-starts-previews-for-liv-mb-units-priced-from-s108m-to-s363m
New private residential project assessments to have glass stress tests, water seepage checks
Singapore – Water ponding in common areas, sudden shattering of glass and leakage from swimming pools will soon be included in assessments of private residential construction projects. These checks will be added to the Construction Quality Assessment System, or Conquas, that was introduced in 1989.
https://www.straitstimes.com/singapore/housing/glass-shattering-water-ponding-leakage-from-pools-added-to-assessments-of-private-residential-construction-projects
SINGAPORE ECONOMY
Office lunches may not prove much costlier as low demand caps CBD food prices
As the office crowd returns to the central business district (CBD) amid loosened Covid-19 curbs, one might expect workers to face higher lunch costs than when they were working from home – but that is not necessarily the case, say office workers to whom The Business Times spoke.
https://www.businesstimes.com.sg/government-economy/office-lunches-may-not-prove-much-costlier-as-low-demand-caps-cbd-food-prices
COMPANIES’ BRIEF
Far East Orchard back in the black with Q1 net profit of S$2.6m
Mainboard-listed real estate player Far East Orchard : O10 0% (FEO) was back in the black in the first quarter on the recognition of a sale and unrealised foreign exchange gains as the Australian dollar strengthened, according to a business update released on Friday (May 6).
https://www.businesstimes.com.sg/companies-markets/far-east-orchard-back-in-the-black-with-q1-net-profit-of-s26m
Fraser and Neave H1 profits down by 20.8% to S$65.3 million as higher costs bite
The earnings of mainboard-listed drinks manufacturer Fraser and Neave (F&N) shrank in the first half-year, as the bottom line took a hit from rising material and energy costs.
https://www.businesstimes.com.sg/companies-markets/fraser-and-neave-h1-profits-down-by-208-to-s653-million-as-higher-costs-bite
Brokers’ take: Analysts raise CDLHT target price on hospitality and travel rebound
CDL Hospitality Trusts (CDLHT) continues to be seen as a major beneficiary of the rebound in tourism, with analysts revising their estimates to account for an improving outlook.
https://www.businesstimes.com.sg/companies-markets/brokers-take-analysts-raise-cdlht-target-price-on-hospitality-and-travel-rebound
Brokers’ take: Analysts expect CICT will be key beneficiary of Singapore reopening
Analysts are positive on CapitaLand Integrated Commercial Trust (CICT) as it can likely ride on the recovery of the office and retail sectors in Singapore to become one of the key beneficiaries of the Republic’s reopening.
https://www.businesstimes.com.sg/companies-markets/brokers-take-analysts-expect-cict-will-be-key-beneficiary-of-singapore-reopening
Brokers’ take: Analysts positive on Lendlease Reit amid recovering retail sector, high portfolio occupancy
Analysts are positive on Lendlease Global Commercial Reit (Lendlease Reit) amid its high portfolio occupancy, noting that it should benefit from the recovering retail sector.
https://www.businesstimes.com.sg/companies-markets/brokers-take-analysts-positive-on-lendlease-reit-amid-recovering-retail-sector
Reits and property trusts on SGX: Varied choice, with diverse sectors and overseas exposure
There are 44 real estate investment trusts (Reits) and property trusts on the Singapore Exchange (SGX) with a market capitalisation of around $116 billion – or 13 per cent of the total value of the local market, based on data as at March 31.
https://www.straitstimes.com/business/invest/varied-choice-with-diverse-sectors-and-overseas-exposure-0
Tenant sales back at pre-Covid levels for Retail S-Reits
Singapore’s retail sales increased 8.7 per cent in March 2022 on a year-on-year basis, a reversal from the 3.5 per cent decrease in February 2022, according to the Singapore Department of Statistics (SingStat).
https://www.businesstimes.com.sg/companies-markets/tenant-sales-back-at-pre-covid-levels-for-retail-s-reits
Aims Apac Reit in ‘exclusive due diligence’ to acquire Sydney office property
Aims APAC Reit (AA Reit) is in exclusive due diligence to acquire Avaya House, an office property located in Macquarie Park in Sydney, Australia, its manager said on Friday morning. In a clarification note announcement posted to the Singapore Exchange…
https://www.businesstimes.com.sg/companies-markets/aims-apac-reit-in-exclusive-due-diligence-to-acquire-sydney-office-property
First Reit posts 1.5% rise in Q1 2022 DPU to 0.66 Singapore cents
First Real Estate Investment Trust (First Reit) posted a distribution per unit (DPU) of 0.66 Singapore cents for its first quarter ended Mar 31, 2022, up 1.5 per cent from 0.65 cents a year ago, its manager said in a business update on Friday night (May 6).
https://www.businesstimes.com.sg/companies-markets/first-reit-posts-15-rise-in-q1-2022-dpu-to-066-singapore-cents
Manulife US Reit posts 91.7% occupancy in Q1; expects positive rental reversion
US office-focused Manulife US Real Estate Investment Trust (Manulife US Reit) on Monday (May 9) said that portfolio occupancy for the first quarter ended Mar 31 remained stable at 91.7 per cent, above the US Class A average of 83 per cent.
https://www.businesstimes.com.sg/companies-markets/manulife-us-reit-posts-917-occupancy-in-q1-expects-positive-rental-reversion
https://www.straitstimes.com/business/companies-markets/manulife-us-reit-sees-917-occupancy-in-q1-expects-positive-rental-reversion
OUE Commercial Reit looks to acquire office assets in Sydney, Melbourne and London
Just 1 out of the 7 assets in OUE Commercial Real Estate Investment Trust’s (OUE C-Reit’s) portfolio is outside Singapore, but there are plans to acquire more overseas assets to grow the trust, with a focus on office assets in Sydney, Melbourne and London.
https://www.businesstimes.com.sg/companies-markets/oue-commercial-reit-looks-to-acquire-office-assets-in-sydney-melbourne-and-london
VIEWS, REVIEWS, FORUM AND OTHERS
How big business is profiting from inflation
(Nytimes) – Last autumn, as container ships piled up outside the Port of Los Angeles, it looked as if inflation was going to be with us for longer than many had predicted. Curious how CEOs were justifying higher prices…
https://www.straitstimes.com/opinion/how-big-business-is-profiting-from-inflation
Fed action: This time could really be different
The US Federal Reserve’s decision to raise rates by the widely-expected 50 basis points last week sparked a large and immediate “relief rally’’ in US stocks and a new mantra making the rounds on Wall Street that “50 is the new 25’’.
https://www.businesstimes.com.sg/opinion/fed-action-this-time-could-really-be-different
Moving forward with lessons from Covid-19
Singapore needs to make the most of the changes forced on it by the coronavirus pandemic to improve the way it does things even as it shifts to a strategy of living with Covid-19 from the early days of a zero-Covid strategy.
https://www.straitstimes.com/opinion/st-editorial/moving-forward-with-lessons-from-covid-19
How to reap returns from Reits
Inflation in the US stood at a 40-year high in April, prompting the Federal Reserve to raise rates by half a percentage point to a range of 0.75 to 1 per cent last week. As markets digest the impact of the rate hike and of more to come, one area that might see an impact will be real estate investment trusts (Reits), a popular investment vehicle in Singapore.
https://www.straitstimes.com/business/invest/finding-value-in-reits-0
Don’t expect the Fed to work miracles
Much as expected, the Federal Reserve has raised its policy interest rate by half a percentage point and announced an accelerated schedule for reducing its holdings of financial assets. This is a faster pace of tightening than the central bank intended after its previous meeting in March.
https://www.businesstimes.com.sg/weekend/dont-expect-the-fed-to-work-miracles
Inflation and the investment outlook
Too much inflation is bad news for asset prices and for living standards. We are now at the point where high inflation is biting into people’s incomes and forcing them to make tougher choices about what they can afford.
https://www.businesstimes.com.sg/weekend/inflation-and-the-investment-outlook
Banks in S’pore raise fixed-rate mortgage loans; Sora-pegged loans still relatively cheaper
Singapore – Home owners will have to fork out more for their fixed-rate mortgage payments after some banks here raised their fixed interest rates in anticipation of further rate hikes in the United States.
https://www.straitstimes.com/business/property/banks-raise-fixed-rate-mortgage-loans-sora-pegged-loans-still-relatively-cheaper
Recent spate of workplace deaths is ‘far too many, and not acceptable’: PM Lee
Singapore – The recent spate of workplace fatalities is far too many, and not acceptable, said Prime Minister Lee Hsien Loong on Monday (May 9). Companies are being urged to impose a two-week safety time-out from Monday, after 10 workplace fatalities were reported last month.
https://www.straitstimes.com/singapore/recent-spate-of-workplace-deaths-is-far-too-many-and-not-acceptable-pm-lee
https://www.straitstimes.com/singapore/jobs/mom-wsh-council-and-ntuc-urge-firms-to-take-safety-time-out-after-10-workplace-deaths-in-april
UPDATE ON COVID-19 (CORONAVIRUS DISEASE 2019) SITUATION
Singapore records 2,423 new Covid-19 cases on Sunday; infection rate above 1 for first time since Apr 23
There were 2,423 new Covid-19 cases reported in Singapore on Sunday (May 8), with a weekly infection growth rate of 1.01. This is the first time the rate is more than 1 since Apr 23. The rate refers to the ratio of community cases for the past week over those of the week before. A rate of more than 1 shows that the number of new weekly Covid-19 cases is increasing.
https://www.businesstimes.com.sg/government-economy/singapore-records-2423-new-covid-19-cases-on-sunday-infection-rate-above-1-for
https://www.straitstimes.com/singapore/health/spore-records-2423-new-covid-19-cases-on-sunday-infection-rate-above-1-for-first-time-since-april-23
How Covid-19 changed the way we live, work and shop in Singapore
Singapore – The pandemic has hit life’s fast-forward button, catapulting people into a future of Zoom calls and hybrid work arrangements. Insight looks at some of the biggest ways in which Covid-19 has changed the way Singaporeans live, work and shop.
https://www.straitstimes.com/singapore/community/covid-19s-indelible-marks-on-mental-health-work-and-leisure
The new normal: How can Singapore move beyond Covid-19?
Singapore – Over the past month, as Singapore took its most decisive strides towards life as it was before the pandemic, it appeared to be fulfilling a prognosis by Prime Minister Lee Hsien Loong in October last year.
https://www.straitstimes.com/singapore/politics/moving-beyond-covid-19-how-can-singapore-find-a-new-way-forward-in-a-more-challenging-landscape
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation
GLOBAL ECONOMY & GLOBAL REAL ESTATE
Markets are weaker than US economy, Bridgewater’s Prince says
https://www.businesstimes.com.sg/government-economy/markets-are-weaker-than-us-economy-bridgewaters-prince-says
Majority of traders see euro-US dollar parity as stagflation threat rises: Survey
https://www.straitstimes.com/business/economy/majority-of-traders-see-euro-us-dollar-parity-in-survey-as-stagflation-threat-rises
British pound could fall to as low as S$1.65 amid inflation, recession concerns, say analysts
https://www.businesstimes.com.sg/companies-markets/british-pound-could-fall-to-as-low-as-s165-amid-inflation-recession-concerns-say
UK assets suffer after BOE’s gloomy prognosis on recession
https://www.businesstimes.com.sg/government-economy/uk-assets-suffer-after-boes-gloomy-prognosis-on-recession
UK property firms Capco, Shaftesbury in talks on reported £3.5b merger
https://www.businesstimes.com.sg/companies-markets/uk-property-firms-capco-shaftesbury-in-talks-on-reported-35b-merger
UK construction sector suffers April slowdown on higher costs: S&P/CIPS
https://www.businesstimes.com.sg/real-estate/uk-construction-sector-suffers-april-slowdown-on-higher-costs-spcips
UK annual house price rise eases to 10.8%: Halifax
https://www.businesstimes.com.sg/real-estate/uk-annual-house-price-rise-eases-to-108-halifax
China stimulus fails to ignite housing sales over key holiday
https://www.businesstimes.com.sg/real-estate/china-stimulus-fails-to-ignite-housing-sales-over-key-holiday
https://www.straitstimes.com/business/property/china-stimulus-fails-to-ignite-housing-sales-over-key-holiday
China’s outstanding property loans up 6% y/y at end-Q1
https://www.businesstimes.com.sg/real-estate/chinas-outstanding-property-loans-up-6-yy-at-end-q1
Economists see Japan’s inflation hitting at least 2.1% in April
https://www.businesstimes.com.sg/government-economy/economists-see-japans-inflation-hitting-at-least-21-in-april
Japan’s service sector activity posts first growth since Dec: PMI
https://www.businesstimes.com.sg/government-economy/japans-service-sector-activity-posts-first-growth-since-dec-pmi
Thai inflation slows in April, but pace seen quickening
https://www.businesstimes.com.sg/government-economy/thai-inflation-slows-in-april-but-pace-seen-quickening
https://www.straitstimes.com/asia/se-asia/despite-tourism-comeback-thailands-recovery-hindered-by-inflation
Johor businesses face labour shortage as workers lured across Causeway by strong Singdollar
https://www.straitstimes.com/asia/se-asia/johor-businesses-face-labour-shortage-as-workers-lured-across-the-causeway-by-strong-singdollar