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Real Estate Daily News

09th, 10th, 11th, 12th and 13th August 2019 (Fri, Sat, Sun, Mon and Tue)
2019

Singapore Real Estate

Boon Keng 5-room HDB flat sells at record $1.2m, but resale prices dip 0.2% in July
Despite a Boon Keng area five-room flat selling for a record sum recently, HDB resale prices remained fairly stable in July, new figures show.  The 39th-floor unit at City View @ Boon Keng was sold for S$1,205,000, S$5,000 more than the previous record for a HDB resale set by a five-room flat in Boon Tiong Road in Tiong Bahru in April.
https://www.businesstimes.com.sg/real-estate/boon-keng-5-room-hdb-flat-sells-at-record-12m-but-resale-prices-dip-02-in-july
https://www.straitstimes.com/singapore/housing/boon-keng-5-room-hdb-flat-sells-for-record-12-million

Developers dangle higher commissions to clear less ideal units
Some developers are dangling fatter commissions to incentivise property agents to help clear inventory.  A check with property agents suggested that commissions in some cases could rise to 3-4 per cent, or more.  Developers may also wheel out incentives or a cash bonus when it comes to units that are harder to sell, such as ground-floor units or units with a less-attractive facing, as agents need to work harder to find…
https://www.businesstimes.com.sg/real-estate/developers-dangle-higher-commissions-to-clear-less-ideal-units

High rentals fuel demand for illegal ‘cubicle’ units in apartments
Four square metres - or just enough space to squeeze in a modest clothes rack, a creaky bunk bed with worn-out mattresses, and two unfussy occupants.  There is little room to stand and the air is heavy with the smell of damp clothes. A narrow window in the otherwise depressing cubicle home offers a glimpse of a noisy Chinatown, 20 floors down.
https://www.straitstimes.com/singapore/courts-crime/many-apartments-carved-up-and-let-out-as-cubicle-homes
https://www.todayonline.com/singapore/visit-can-no-overnight-stay-residents-arms-over-tough-new-rules-peoples-park-complex

Too fast, too much: Property agents unhappy over PropertyGuru hiking prices
Singapore — Two years after a backlash over price hikes by PropertyGuru, property agents are up in arms again as the property portal is increasing the price agents have to pay for listing on its platform.  The changes, which will take effect from Sept 1, will see price increases ranging from 11.3 per cent to 26.6 per cent across four different packages. 
https://www.todayonline.com/singapore/too-fast-too-much-property-agents-unhappy-over-propertyguru-hiking-prices-agent-packages

Across Asia Pacific, cold is now officially hot
Growing investor interest in cold storage real estate has been brewing for some time. This appetite is part of a larger push into less competitive areas of industrial real estate. The shift in demographic and consumer behaviour is also playing a major role in fanning the interest.  We have seen robust demand for high quality industrial and logistics assets in Asia Pacific in recent years. Irrespective of asset type, the driver has…
https://www.businesstimes.com.sg/real-estate/across-asia-pacific-cold-is-now-officially-hot

 

Singapore Economy

Singapore slashes economic growth forecast to 0-1% for 2019
Singapore has cut its official growth forecast for the second quarter running, on a flat economic performance in the first half of the year.  The gross domestic product (GDP) is likely to come in between zero growth and 1 per cent for the full year, the Ministry of Trade and Industry (MTI) said early on Tuesday.
https://www.businesstimes.com.sg/government-economy/singapore-slashes-economic-growth-forecast-to-0-1-for-2019
https://www.straitstimes.com/business/economy/singapore-cuts-full-year-gdp-growth-forecast-to-0-to-1-q2-growth-falls-to-decade
https://www.channelnewsasia.com/news/singapore/singapore-slashes-annual-gdp-forecast-to-0-1-amid-strong-11803990
https://www.todayonline.com/singapore/singapore-slashes-2019-gdp-growth-forecast-after-sharp-q2-contraction

NODX forecast slashed to -9 to -8% for 2019; Q2 performance sinks by double-digits
Singapore’s key non-oil domestic exports (NODX) sank by double digits in the second quarter, contracting by 14.6 per cent compared to a year ago, Enterprise Singapore said on Tuesday.  This is a much steeper fall compared to the 6.4 per cent drop seen in the first quarter, and is Singapore’s third straight quarter of NODX decline.
https://www.businesstimes.com.sg/government-economy/nodx-forecast-slashed-to-9-to-8-for-2019-q2-performance-sinks-by-double-digits
https://www.straitstimes.com/business/economy/singapore-exports-forecast-slashed-to-9-to-8-for-2019-shipments-shrank-146-in-q2
https://www.channelnewsasia.com/news/singapore/singapore-s-exports-nodx-fall-14-6-in-q2-11803984

Singapore's resilience will see it through latest slowdown: PM Lee
Singapore will take the upcoming slowdown in its stride, Prime Minister Lee Hsien Loong said in his annual National Day Message on Thursday night. Whenever the island has faced trials, it reinvented and renewed itself to thrive again, he said.  Notwithstanding slowing economic growth, weaker global demand and trade, and the worldwide electronics down-cycle, other parts of the economy are doing well, he noted.
https://www.businesstimes.com.sg/government-economy/singapores-resilience-will-see-it-through-latest-slowdown-pm-lee
https://www.straitstimes.com/singapore/spore-must-prepare-for-a-very-different-future-says-pm-lee
https://www.channelnewsasia.com/news/singapore/pm-lee-hsien-loong-national-day-message-2019-11793210
https://www.todayonline.com/singapore/troubled-period-world-ahead-singapore-will-invest-and-support-its-people-pm-lee

Retail sales in June plunge for the fifth straight month
Takings at the till plunged for the fifth consecutive month in June, this time quite substantially, according to figures released by the Department of Statistics yesterday.  Retail sales fell 8.9 per cent compared with the same period last year, far more steeply than the 3.7 per cent that analysts polled by Bloomberg had predicted.
https://www.straitstimes.com/business/economy/retail-sales-in-june-plunge-for-the-fifth-straight-month
https://www.businesstimes.com.sg/infographics/retail-sales-in-june-fall-for-the-fifth-straight-month
https://www.channelnewsasia.com/news/singapore/singapore-retail-sales-fall-8-9-in-june-11791914

Instability in HK a problem for all, including Singapore: Shanmugam
Singapore's Minister for Law and Home Affairs doesn't believe the city-state stands to benefit from any instability in Hong Kong, as protests stretch into a third month.  The rival financial centres are widely seen as investor-friendly havens from which to tap into fast-growing Asian markets. Since protests started in June, sparked by a proposal to ease extraditions to the mainland, the idea has been mooted that business…
https://www.businesstimes.com.sg/government-economy/instability-in-hk-a-problem-for-all-including-singapore-shanmugam
https://www.todayonline.com/singapore/no-easy-way-forward-hong-kong-conundrum-shanmugam

 

Companies' Brief

CDL acquires full control of W Singapore-Sentosa Cove, Quayside Isle
City Developments Limited (CDL) acquired the remaining 62.5 per cent stake from the investors of Profit Participation Securities (PPS) 1 structure for S$393 million, giving it full control of W Singapore-Sentosa Cove and Quayside Isle as it seeks to ride on the government's plans to reshape Sentosa.  At an earnings briefing on Thursday morning, group chief executive officer Sherman Kwek said that the group sees "a lot…
https://www.businesstimes.com.sg/companies-markets/cdl-acquires-full-control-of-w-singapore-sentosa-cove-quayside-isle

Frasers Property Q3 net profit rises 68.2% on fair-value gains
Frasers Property on Thursday posted a net profit of S$333.9 million in the third quarter, up 68.2 per cent from the same period a year earlier.  Revenue in the three months ended June 30 was S$638.8 million, down 53.1 per cent, due mainly to the timing of sales and settlements of development projects in Australia, Singapore and China.
https://www.businesstimes.com.sg/real-estate/frasers-property-q3-net-profit-rises-682-on-fair-value-gains

No injection of PGIM malls for now: Frasers Property
Analysts' hope of a quick injection of five suburban malls - Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1 - into Frasers Centrepoint Trust (FCT), after the Reit and its sponsor, Frasers Property, spent more than S$1.3 billion to chalk up a three-quarter stake in PGIM Real Estate Asia Retail Fund, may not pan out so soon.  A Frasers Property spokesperson, in response to queries from The…
https://www.businesstimes.com.sg/companies-markets/no-injection-of-pgim-malls-for-now-frasers-property

Higher fair value gains on property investment lift UOL's Q2 earnings
Higher fair value gains on its investment properties outweighed lower revenue recognition from development and higher finance expenses to lift results for UOL Group (UOL) in its second quarter.  Net profit for the developer and hotel operator for the three months ended June 30 shot up 48.1 per cent to S$195.4 million from the previous year's S$131.9 million.
https://www.businesstimes.com.sg/companies-markets/higher-fair-value-gains-on-property-investment-lift-uols-q2-earnings
https://www.straitstimes.com/business/companies-markets/uols-earnings-up-48-on-fair-value-gains

MD Ong Pang Aik increases Lian Beng stake following FY19 results
For the five trading sessions from Aug 2 to 8, the Straits Times Index (STI) declined 3.7 per cent, with the Nikkei 225 Index, Hang Seng Index and S&P/ASX 200 Index averaging a 3.3 per cent decline, weighed by the Hang Seng Index's decline of 4.6 per cent.  By comparison, the iEdge S-Reit Index generated a more defensive 0.9 per cent decline over the five sessions, with dividend distributions paring the decline to 0.4…
https://www.businesstimes.com.sg/companies-markets/md-ong-pang-aik-increases-lian-beng-stake-following-fy19-results

 

Views, Reviews, Forum & Others

Ensuring a bright future and a sustained competitive edge
Chia Ngiang Hong, President, Real Estate Developers' Association of Singapore (REDAS)

The most pressing issue, in my view, would be to build on and strengthen the understanding and trust between the government and the people, keep our society cohesive and united, and our politics constructive, inclusive and forward-looking. This is important as our society becomes more diverse, our people better educated and better exposed all round the world, and also observing how quickly society is…
https://www.businesstimes.com.sg/views-from-the-top/ensuring-a-bright-future-and-a-sustained-competitive-edge

Commentary: Did aggressive land bidding by Chinese developers push up Singapore property prices?
Singapore: After the cooling measures slapped on in July 2018, many have wondered whether Singapore property remains a good investment bet.  To be sure, the measures targeted speculators and hot foreign money, and aimed to cool speculative sentiments.  Investing in overseas real estate is not traditionally a popular option for investors because managing foreign properties is costly and time-intensive…
https://www.channelnewsasia.com/news/commentary/land-bidding-chinese-developers-singapore-property-rising-cost-11764932

Pandan Valley condominium's management corporation not to blame for tree that fell and damaged cars, rules judge
A district judge has held that a condominium management corporation (MC) was not liable for damage caused to cars parked on its grounds overnight when stormy weather uprooted a tree in the estate.  District Judge Lee Li Choon, in dismissing damages sought by two residents for negligence, ruled that they failed to show that the MC of Pandan Valley condominium breached its duty of care.
https://www.straitstimes.com/singapore/courts-crime/condos-mc-not-to-blame-for-tree-that-fell-and-damaged-cars-rules-judge

 

Global Economy & Global Real Estate

US recession concerns rising with trade row: Goldman Sachs
https://www.straitstimes.com/business/economy/us-recession-concerns-rising-with-trade-row-goldman-sachs

Battle over Epstein's mysterious estate
https://www.businesstimes.com.sg/real-estate/battle-over-epsteins-mysterious-estate

New 'coliving' housing option spreads its wings in New York
https://www.businesstimes.com.sg/real-estate/new-coliving-housing-option-spreads-its-wings-in-new-york

Could your house be an Instagram star?
https://www.businesstimes.com.sg/real-estate/could-your-house-be-an-instagram-star

'Emoji' house in LA beach town infuriates feuding neighbors
https://www.businesstimes.com.sg/real-estate/emoji-house-in-la-beach-town-infuriates-feuding-neighbors

WeWork's looming IPO lights the path for rivals
https://www.businesstimes.com.sg/real-estate/weworks-looming-ipo-lights-the-path-for-rivals

UK GDP shrinks unexpectedly for first time since 2012
https://www.businesstimes.com.sg/companies-markets/uk-gdp-shrinks-unexpectedly-for-first-time-since-2012

Sellers of UK luxury homes forced to bargain amid Brexit woes
https://www.businesstimes.com.sg/real-estate/sellers-of-uk-luxury-homes-forced-to-bargain-amid-brexit-woes

China July exports rise 3.3%; imports decline by 5.6%
https://www.businesstimes.com.sg/government-economy/china-july-exports-rise-33-imports-decline-by-56
https://www.straitstimes.com/business/companies-markets/china-exports-make-surprise-return-to-growth

China's builders brace for winter; buy less land as home sales weaken
https://www.businesstimes.com.sg/real-estate/chinas-builders-brace-for-winter-buy-less-land-as-home-sales-weaken

Japan economy grows faster than expected on new-era holidays
https://www.businesstimes.com.sg/companies-markets/japan-economy-grows-faster-than-expected-on-new-era-holidays

Australian rate cut working to support demand 'as usual': central bank
https://www.businesstimes.com.sg/government-economy/australian-rate-cut-working-to-support-demand-as-usual-central-bank

Australia's housing market heating up again
https://www.businesstimes.com.sg/real-estate/australias-housing-market-heating-up-again
https://www.straitstimes.com/asia/australianz/housing-slump-starts-to-ripple-through-australian-economy

India's Taj hotel chain to sell assets as economy weakens
https://www.businesstimes.com.sg/real-estate/indias-taj-hotel-chain-to-sell-assets-as-economy-weakens

China's crackdown on Philippines casinos  hits property firms
https://www.businesstimes.com.sg/real-estate/chinas-crackdown-on-philippines-casinos-%C2%A0hits-property-firms

Berlin rent freeze gives real estate stock investors cold feet
https://www.businesstimes.com.sg/real-estate/berlin-rent-freeze-gives-real-estate-stock-investors-cold-feet

Housing crisis grips Ireland a decade after property bubble burst
https://www.businesstimes.com.sg/real-estate/housing-crisis-grips-ireland-a-decade-after-property-bubble-burst

20-year mortgages hit zero for first time in Danish rate history
https://www.businesstimes.com.sg/real-estate/20-year-mortgages-hit-zero-for-first-time-in-danish-rate-history

Romania's 'Roma palaces', a status symbol for poor minority
https://www.businesstimes.com.sg/real-estate/romanias-roma-palaces-a-status-symbol-for-poor-minority

 

Additional Articles of Interests - Local & Overseas Real Estate

Local & Overseas Real Estate - Full Article
http://www.asiaone.com/business
http://www.btinvest.com.sg/property
http://www.stproperty.sg/articles-property/singapore-property-news/c/11

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