Real Estate Daily News
16th June 2017
Upbeat mood holds sway despite drop in developer sales in May
Singapore developers' private home sales fell by about a third (34.3 per cent) between April and May 2017. Amid the absence of major launches last month, 1,024 units were sold, down from 1,558 in April. This marks the second consecutive decline in the month-on-month numbers; developers had moved 1,780 units in March.
Fed raises rates, but there is still plenty of liquidity
Asian stocks fell slightly and bond markets continued to be buoyant even as the US Federal Reserve raised interest rates to the 1-1.25 per cent range on Thursday morning. Observers said asset valuations can stay elevated because the liquidity unleashed by central banks after the global financial crisis is still very much in the global financial system.
SGD bonds rally, key interest rates tumble
Local bonds rallied and key interest rates fell on Thursday as markets shrug off the second rate-hike this year by the US Federal Reserve. Prices of recent perpetual issues sold this month have surged as much as 1.6 per cent. Prices of Sembcorp Industries 3.7 per cent and Lippo Malls Indonesia Retail Trust 6.6 per cent, both sold this week were quoted at 101 and 101.56 respectively on Thursday.
Private equity deals to be more robust in 2017: EY
According to the EY - Private equity briefing: Southeast Asia (April 2017) report, 1Q17 experienced an uptick in fundraising - possibly signalling the continuing trend of large deals in 2017. Ernst & Young Solutions LLP EY Asean M&A and private equity leader Luke Pais said: "We expect a continued uptick in deal activity this year. Market conditions in South-east Asia are currently attractive for PE investments."
Singapore slips to No 7 in global innovation; Switzerland is tops for 7th straight year
Singapore slipped one spot to seventh in this year's global ranking of the world's most innovative countries, but emerged top among its peers in South-east Asia. In this year's Global Innovation Index, Switzerland kept its No 1 place for the seventh year in a row; Sweden, the Netherlands, the US and the UK rounded off the top five.
Singapore Real Estate
Here's Another Sign Singapore's Housing Market Is Recovering
Chalk up another sign Singapore’s housing market is recovering: redevelopment deals are back. After slowing to a trickle the past three years as housing prices fell, four redevelopment deals -- where a group of owners band together to sell entire apartment blocks at a hefty premium -- have been struck already this year, with a combined value of S$1.5 billion ($1.1 billion).
Property & construction group TA Corp's fortunes seen turning around this year
Property and construction group TA Corporation may see a turnaround in its fortunes this year as it seeks to scale up its distribution business and ride the expected recovery in construction and property development through pre-cast manufacturing and prefabricated prefinished volumetric construction (PPVC).
Ascott secures first 3 properties under co-living brand lyf
CapitaLand's serviced residence unit, The Ascott, said on Thursday it has secured contracts to manage its first three properties under lyf, its latest brand and co-living concept. The properties are located in its two key markets, China and Singapore. They are the 112-unit lyf Wu Tong Island Shenzhen (which will open in the first half of 2018); the 120-unit lyf DDA Dalian (scheduled to open in end-2018); and the 240-unit lyf Farrer Park Singapore (the biggest of the three lyf properties and slated to open in 2021).
Ascendas-Singbridge joins Firstspace to target India's industrial, logistics sector
Ascendas-Singbridge Group and Indian industrial real estate specialist Firstspace Realty are working hand in hand to build logistics and industrial facilities in major warehousing and manufacturing hubs across India. The joint venture Ascendas-Firstspace aims to meet the infrastructure needs of businesses in India tapping high-growth industrial verticals such as third-party logistics, e-commerce, vehicles, fast-moving consumer goods, modern retail and manufacturing, the group announced on Thursday
World Class Global higher and active in Catalist debut
World Class Global (WCG), a real estate developer whose counter debuted on Catalist on Thursday, was the most active stock on the Singapore Exchange (SGX) on Thursday morning, over five million shares having changed hands just after market opening. WCG, which specialises in residential and mixed-use projects in Australia and Malaysia, opened for trading at S$0.27, one Singapore cent above its issue price of S$0.26.
Hiap Hoe ventures into UK hospitality industry with hotel buy in Manchester
Property company Hiap Hoe on Friday announced that it has, through subsidiaries, signed a sale and purchase agreement to buy Holiday Inn Express in Trafford City, Mercury Way, Manchester, from Topland (No. 18), Mill Lane Estates, and Marick Capital. The purchase price of £26.3 million (S$46.2 million) is equal to its net asset value, after taking into account a valuation report prepared by an independent professional valuer, trade projections for the hotel and the recently transacted prices for other hotels in Manchester.
Low Keng Huat posts 65% rise in profits for Q1
Construction company Low Keng Huat reported a 65 per cent increase in net profits at S$5.4 million for the three months ended April 30 when compared to a year ago. This comes as it reported a 7 per cent increase in revenue to S$16.9 million for the same period. As a result, earnings per share rose from 0.44 Singapore cent a year ago to 0.73 cent for the quarter. Mainboard-listed Low Keng Huat shared its financial statement for the first quarter of the financial year in a release to the Singapore Exchange on Thursday evening after market close.
Yongnam secures four Singapore contracts worth S$36.2m
Yongnam Holdings Limited, an established structural steel conductor and specialist civil engineering solutions provider, on Thursday, announced it has won the award of four contracts worth S$36.2 million for projects in Singapore. The first contract is awarded by Evonik Methionine (SEA) Pte Ltd, and involves steelworks and building works for the construction of its plant on Jurong Island. The second contract, awarded by Woh Hup (Private) Limited, involves steelwork in its new commercial development project in northern Singapore.
Views, Reviews & Forum
Borrowing costs may rise, but stronger US economy good for Singapore
The move by the Federal Reserve to raise its benchmark interest rate for the second time in three months is a sign of the central bank's confidence in the stability of the US economy. The widely anticipated hike was accompanied by a further show of confidence: A description of the US central bank's plans to start reducing its portfolio of more than US$4 trillion (S$5.5 trillion) in bonds later this year.
What is the drill in the event of fire in HDB point block?
Watching the London tower block on fire was horrifying. I understand that the fire started on the lower floors and quickly spread to the upper ones. There is only one exit route in the tower and people trapped inside were asked to stay in their apartments as there was no other way to escape from the fire. In Singapore, there are many 25-storey HDB point blocks (similar to the London Tower Block) with only one exit route in a block.
Global Economy & Global Real Estate
US pension giant plans to invest US$1b in Japan real estate
Property insurer expects London fire payouts to exceed £25m
China stands pat on rates despite Fed action
Home buyers face squeeze as Shanghai curbs office-to-flats market
Hong Kong raises rate following Fed's move, risking housing sell-off
Car park lots in Hong Kong now cost HK$4-5m
ICP enters deal to acquire Hong Kong hotel
Eco World International pares losses, aims for RM2.5 billion property sales
HSBC Malaysia to invest US$250m to build HQ in TRX financial district
Australia's economy might be in better shape than GDP suggests
Construction holds back NZ growth in Q1, OECD calls for home loan limits
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