Real Estate Daily News
8th May 2019
Singapore Real Estate
Options for buyers when developers go bust and projects are unfinished
It is a rare case of a Singapore developer going bust, leaving the residential projects unfinished. But for some 183 people, their worst nightmare came true when developers of the 70-unit freehold condominium at Laurel Tree along Hillview Terrace and the 96 residential units and 17 shops in the Sycamore Tree project in Joo Chiat went belly up, leaving the projects uncompleted.
Land costs to expand IRs: S$1.3b for MBS, S$1b for RWS
Land to expand Singapore's two integrated resorts (IRs) will cost S$1.3 billion for the 3.3 hectare site for Marina Bay Sands (MBS), while Resorts World Sentosa (RWS) has set aside S$1 billion to intensify the use of its existing land and to buy around one hectare of new land. Senior Minister of State for Trade and Industry Chee Hong Tat told Parliament on Monday: "The IRs will pay fair market value for their land, as determined by the chief valuer in accordance with market conditions and established valuation principles."
Resale of older HDB flats continues upswing in face of policy tweaks: OrangeTee
Despite lingering concerns about their depreciating value and the adverse impact of the latest cooling measures, older HDB flats in Singapore are still in demand, says the latest quarterly report on HDB trends published by OrangeTee & Tie. For the first quarter this year, 628 older flats - those more than 40 years old - were sold. They made up 13.9 per cent of total resale transactions - the highest percentage of older flats sold on record, the property consultancy noted.
Some commercial buildings finding it hard to sell en bloc
Some commercial buildings are facing an uphill task trying to achieve collective sales, with buyers deterred by high retail vacancy rates and prohibitive selling prices. One of the more recent candidates for such a sale is Queensway Shopping Centre, a 45-year-old freehold site known for its sporting goods, but it has been far from smooth sailing.
Laurel Tree, Sycamore Tree dispute with buyers a private matter: URA
The ongoing negotiations between the receivers and the buyers of the unfinished Laurel Tree and Sycamore Tree residential projects is a "private matter", the Urban Redevelopment Authority (URA) said. URA said it was informed by the receivers - three partners of KPMG led by Bob Yap - in Feb 2019 that they had been appointed to take over management of the projects from the developers.
Far East Orchard Q1 earnings fall 55.4% on higher costs, drop in JV profits
Mainboard-listed property player Far East Orchard saw its earnings more than halved in the first quarter on surging finance costs and a sharp drop in share of joint-venture profits. Net profit fell to S$3.42 million for the three months to March 31, down 55.4 per cent from S$7.67 million the year prior, according to unaudited financial statements released on Tuesday.
Property, finance veteran Lim Hua Tiong is first CEO of Frasers Property Vietnam
Frasers Property on Monday appointed Lim Hua Tiong as its first chief executive officer of Frasers Property Vietnam. He will be based in Ho Chi Minh City, and will report to Panote Sirivadhanabhakdi, group chief executive officer of Frasers Property.
CapitaLand's revamped Funan secures 98% pre-leasing commitment for twin office blocks
The twin office blocks of CapitaLand's revamped Funan integrated development has garnered 98 per cent pre-leasing commitment of its total office net lettable area (NLA) of 214,000 square feet (sq ft). The CapitaLand Mall Trust-owned (CMT) Funan secured the pre-leasing commitment of about 210,000 sq ft of its NLA when it got its Temporary Occupation Permit in April.
Chip Eng Seng Corp cautious despite Q1 profit almost doubling
Caution will be Chip Eng Seng Corp's middle name, the mainboard-listed real estate player said as it delivered first-quarter results on Monday. It said that it "will exercise caution" in bids for new projects in Australia and Singapore, after contributions from property development and hospitality lifted its latest quarter.
United Engineers converts S$333m debt to green loan for private property development
United Engineers has converted a S$333 million loan into a green loan for residential property development, the company said in a media statement on Monday. The company secured the original loan from DBS, OCBC and UOB in November 2018. The green loan will be used to develop a land parcel along Dairy Farm Road into a green residential property comprising about 450 residential units.
Perennial Hldgs posts Q1 net loss of S$26.9m
Higher finance costs and the absence of a one-off gain dampened results for real estate developer Perennial Real Estate Holdings in its first quarter ended March 31. It fell into the red, posting a net loss of S$26.9 million, from net profit of S$5.1 million in the preceding year.
Property development a drag on OKP as Q1 earnings plunge 62.4%
Mainboard-listed construction player OKP Holdings' earnings have been dragged down by its property development ventures, even as the core construction business cooled. Net profit plunged by 62.4 per cent for the three months to March 31, to S$1.07 million, according to results released on Monday.
Sabana Reit renews master lease worth S$3.76m with sponsor's subsidiary
Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has renewed a master lease with a subsidiary of its sponsor, logistics player Vibrant Group, the manager disclosed on Tuesday. The contract for 33 & 35 Penjuru Lane, near Jurong Port, is worth S$3.76 million, which the manager noted fell within the range given by independent valuer Suntec Real Estate Consultants on Apr 25.
Vibrant's S$227.5 million Jurong Island deal to be completed on May 10
Mainboard-listed logistics player Vibrant Group’s sale-and-leaseback deal for a Jurong Island warehouse facility has kicked in, and is expected to go through on May 10. The board confirmed that buyer SGRE Banyan exercised its call option with Vibrant’s 51 per cent-owned LTH Logistics (Singapore) subsidiary on Monday.
Views, Reviews, Forum & Others
Investors still love Singapore’s struggling malls
[Hong Kong] Singaporeans aren't spending like they used to, at least not in shopping malls. There are too many already and more are being built. But investors still have good reasons to back mall owners. The city-state has 6.1 million square metres of retail space, of which 8.7 per cent is vacant. Yet companies are forecast to add a further 364,000 sq m, with the…
Property slowdown beckons as next risk for emerging markets
[Singapore] As growth worries and trade war jitters threaten to spoil any rebound for emerging markets in 2019, property markets are shaping up as a critical element to monitor for further signs of gloom. Some developing economies from Thailand to Dubai and Brazil are facing double-digit real estate sales declines on the back of weakening domestic growth.
Over 60: Why own when you can rent?
[New York] Does New York City have a bigger booster than Marcelle Shaoul? This is an easy question: It does not. She loves listening to the garbage trucks as they make their early morning rounds. She is equally charmed by the other street sounds (horns, car alarms) that serenade her for the rest of the day. She is even delighted — so she says — by the sight of trash piling up curbside. It is just so very New York.
Marriott's home-sharing lacks a disruptive edge
Marriott International's home-sharing venture lacks a disruptive edge. The US$46 billion hotelier is borrowing Airbnb's model of renting out high-end homes. Potentially, it expands the business without heavy investment. But the upside is probably limited.
Economic outlook a little subdued - but keep calm and carry on
Lately, each fresh release of economic figures for Singapore has seemed to give cause for dismay, although this expected slowdown remains a far cry from an actual recession - as long as we do not talk ourselves into one. Granted, some pessimism might appear warranted. Factory output was down 4.8 per cent year on year in March; this was the first contraction since December 2017.
Latest worry: Inflation not rising fast enough
There are times when it seems we're worrying about things that aren't worth worrying about. A good example these days is inflation. Amazingly, the complaint is that it's not rising fast enough. In March, the consumer price index, or CPI, had increased 1.9 per cent over the past year. The gain of another inflation indicator, the "deflator" of the personal consumption expenditures, or PCE, was 1.5 per cent. What's not to like?
Global Economy & Global Real Estate
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Turning a condo into an experience
Purplebricks CEO leaves amid shakeup of ops
HK's surging weekend property sales show rebound underway
Malaysia joins Asia easing cycle with first rate cut since 2016
Indonesia Q1 GDP growth misses forecast as investment cools
Indonesia is chasing Asean mfg hub dream: Minister
Australia Q1 retail sales worst in near 7 years, rate cut bets alive
RBA holds rates, signals cuts if jobless rate doesn't improve
New Zealand two-year inflation expectations 2.01% for Q2: RBNZ
New Zealand Is Poised to Cut Interest Rates as the Economy Cools
Risks are receding in Canada's housing market
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