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Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Top News for the Week
Sales of new private homes up 30% in May
6 of 11 'super penthouses' on sale globally are in S'pore
Effects of trade war starting to bite in Singapore
Nodx are likely to remain weak in the months ahead given slow global growth and
rising trade tensions
Residential
Sales of new private homes up 30% last month
Property developers, under pressure from a substantial pipeline, pushed out nine new projects last
month following a lull in April, but the bulk of last month's sales came from earlier launches,
analysts say.
Developers sold 952 units, up nearly 30 per cent from 735 units in April, but down 15 per cent
from the 1,122 units booked in May last year. This is according to figures released by the Urban
Redevelopment Authority (URA).
Of last month's total sales, 70.2 per cent were from previous launches. URA Realis data shows
3,491 unsold units in launched private residential projects as at the first quarter of this year, up
from 1,066 units a year ago.
Developers sold 3,525 new private homes (excluding executive condos) in the first five months of
the year, up 2.6 per cent from 3,436 units in the same period last year.
Meanwhile, 1,394 private homes were released for sale last month, more than triple the 444 units
in April, and up 32 per cent from 1,060 units launched a year ago.
Links to the story: https://www.straitstimes.com/business/property/sales-of-new-private-homes-up-30-last-month
https://www.businesstimes.com.sg/real-estate/buyers-mop-up-more-new-homes-in-may-amid-surge-in-launches
https://www.straitstimes.com/business/economy/biggest-plunge-in-spores-non-oil-exports-in-3-years
UOB reaffirms offer to buyers of two condo projects under receivership
United Overseas Bank (UOB) has reaffirmed its offer to bear the additional costs to complete the
construction of two unfinished residential projects which have been put under receivership after
their developers ran into financial difficulties.
However, the bank, which is the mortgagee in both projects, told The Business Times that this
remains conditional on the home buyers waiving their rights to claim liquidated damages -
compensation that developers must pay buyers for delays - against their progress payments. Based
on the sale and purchase agreement, the developer will have to pay liquidated damages of 10 per
cent per annum of what buyers have to pay.
The receivers for both Sycamore Tree and Laurel Tree - three partners of KPMG led by Bob Yap
- have commenced a tender process to identify financially sound and quality contractors to
determine the cost to take over and complete the construction.
Link to the story:
https://www.businesstimes.com.sg/real-estate/uob-reaffirms-offer-to-buyers-of-two-condo-projects-under-
receivership
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Two good class bungalows up for sale
Two good class bungalows (GCBs) - one at 5 Bin Tong Park in District 10, and the other at 22A
King Albert Park in District 21 - have been put up for sale via expression of interest.
The Bin Tong Park bungalow - a colonial-style, single-storey unit - is a freehold estate with a total
land area of 2,611.4 sq m (28,109 sq ft). It has a frontage of 58m, and a swimming pool.
It is in an area that comprises GCB enclaves, such as Leedon Park, Cornwall Gardens, Belmont
Park, Rebecca Park and Victoria Park.
The GCB at King Albert Park is also a freehold estate with a total land area of 3,387.6 sq m (36,464
sq ft). The two-storey house has a basement and swimming pool, and is situated on a private cul-
de-sac and elevated plot. It is bounded by Bukit Timah Road and Clementi Road.
The expression-of-interest submissions close on July 18 at 3pm.
Links to the story:
https://www.straitstimes.com/business/two-good-class-bungalows-up-for-sale
https://www.businesstimes.com.sg/real-estate/2-gcbs-at-bin-tong-park-king-albert-park-up-for-sale
Bungalow in Belmont Rd selling for S$39.8m
A newly-completed, fully furnished freehold bungalow off Holland Road is being transacted for
S$39.8 million.
The price works out to S$2,653 per sq ft on land area of 15,001 sq ft. Located in Belmont Road,
in the Belmont Park Good Class Bungalow (GCB) Area, the two-storey property comes with an
attic, roof terrace and a basement for 10 cars.
The property has six bedrooms, a guest room, swimming pool, home theatre/entertainment room,
a gym and a wine cellar.
The buyer is understood to be Angela Loh Moo Cheng, the former wife of Centurion Corporation
director David Loh, who in April this year sold a seafront bungalow named Copper House along
Cove Drive on Sentosa. That house went for S$32 million or S$1,773 psf on land area of 18,053
sq ft. At the time of the deal, the site had 861/2 years left on its lease.
The S$2,653 psf price for the bungalow is higher than the S$2,243 psf that another newly-built
bungalow on the same road fetched last August. That deal amounted to S$33.8 million for the
property, which stands on 15,069.46 sq ft of land.
Link to the story:
https://www.businesstimes.com.sg/real-estate/bungalow-in-belmont-rd-selling-for-s398m
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
6 of 11 'super penthouses' on sale globally are in S'pore
Out of the 11 super penthouses around the world now on the market, six are in Singapore, based
on listings from 2016 to April 2019.
The biggest of these "super penthouses" in Singapore is in the 950 ft high Wallich Residence in
Tanjong Pagar, with a floor area of 21,108 sq ft. Spanning levels 62 to 64, the property has five
bedrooms, a family room, a viewing deck, a private garden, a 12 metre pool, a cabana, a jacuzzi,
an entertainment room and bar facilities.
The next largest in Singapore is in The Marq, which has a floor area of 17,642 sq ft, followed by
Reflections At Keppel Bay, Hilltops, Boulevard Vue and Concourse Skyline. Both The Marq and
Hilltops are developed by SC Global, while Reflections At Keppel Bay, Boulevard Vue and
Concourse Skyline are developed by Keppel Land, Far East Organization and Hong Fok
respectively.
Super penthouse could reasonably go for over S$100 million, due to the scarcity of super
penthouses in the market, bucking the notion that the "bigger the floor area, the lower the price per
sq ft (psf)".
Links to the story:
https://www.businesstimes.com.sg/real-estate/no-budget-for-a-s100m-super-penthouse-therere-5-others-in-
singapore-up-for-sale
https://www.straitstimes.com/business/property/6-of-11-super-penthouses-on-sale-globally-are-in-spore
Want to rent a luxury home for $1,000 a night?
One is a 1920s heritage bungalow in Grange Road, a stone's throw from Orchard Road. It comes
with a sprawling courtyard, playground, garden and pool, complete with a caretaker and a
gardener, and parking for up to five cars.
The other is a 5,000 sq ft mansion in Dunearn Road, just a three-minute stroll from the Botanic
Gardens, also with a private lap pool and garden.
Both are available on Airbnb for slightly over $1,000 for a night's stay, excluding cleaning and
service fees.
They are among at least 20 landed properties available for rent on the home-sharing platform, out
of around 300 listed Singapore homes.
One of the more expensive ones is a three-storey semi-detached house near Frankel Avenue going
for $2,400 a night. It is advertised as being able to house up to 20 people.
All of the landed property owners who listed their houses on Airbnb and approached by The
Sunday Times declined comment. Based on their profiles, they are a mix of Singaporeans and
expatriates.
Property consultants were surprised to hear of such listings. They said these owners of luxury
houses, which can cost from $15 million to $35 million in today's market, may be turning to Airbnb
short-term leases simply because they fetch money.
Those who rent these houses have left largely positive reviews on Airbnb. They wrote that they
rented these houses because they are spacious, allowing for large families to stay in or for corporate
team meetings to be held.
Link to the story:
https://www.straitstimes.com/singapore/want-to-rent-a-luxury-home-for-1000-a-night
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Commercial
Beauty World Plaza in 2nd sale bid at unchanged S$165m price
Owners at the residential-and-retail complex Beauty World Plaza have launched another tender
for a collective sale at a reserve price of S$165 million - unchanged from that of their previous
attempt last November.
The authorities have also provided for an in-principle approval for the redevelopment of the
residential component into serviced apartments, said the marketing agent.
Located next to Beauty World MRT station, Beauty World Plaza has a site area of 24,817 sq ft
and is zoned "commercial and residential". There is no development charge payable for
redevelopment to the maximum permissible gross floor area of about 75,362 sq ft.
The land rate works out to S$2,189 per sq ft per plot ratio (psf ppr).
The tender for Beauty World Plaza closes on July 17.
Link to the story:
https://www.businesstimes.com.sg/real-estate/beauty-world-plaza-in-2nd-sale-bid-at-unchanged-s165m-price
71 Robinson Road quietly put on the market
Stealth marketing is going on at 71 Robinson Road, which was last transacted in April 2008 at a
then-record price of S$3,125 per sq ft.
The Business Times understands that an expression-of-interest exercise to find a buyer for the 15-
storey office block began without publicity in April, with the appointed marketing agents
approaching a small pool of potential buyers.
Submissions of offers by potential buyers were made last month; building owner Commerz Real
is still in talks with shortlisted parties, BT understands.
The word in the street is that the building, with almost 74 years of its leasehold tenure left, was
presented to the market with an indicative pricing of S$2,850 psf on net lettable area (NLA).
Based on 71 Robinson Road's approximately 237,645 sq ft NLA, this works out to a price tag of
around S$677.3 million.
Link to the story:
https://www.businesstimes.com.sg/real-estate/71-robinson-road-quietly-put-on-the-market
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Retail
Two new restaurants opening at MBS
Marina Bay Sands (MBS) will be opening two new restaurants and revamping its celebrity
restaurant Waku Ghin this year.
The integrated resort will be bringing in Mott 32, an upmarket Chinese restaurant from Hong Kong
that opened in 2014 in the basement of the Standard Chartered Bank Building in Central.
MBS will operate the restaurant here together with Maximal Concepts, the Hong Kong owner
which has also opened Mott 32 in Vancouver and Las Vegas. It runs Palais de Chine in Seoul's
L'Escape Hotel as well.
There is no opening date yet, said Ms Christine Kaelbel-Sheares, vice-president of food and
beverage for MBS, but it will be "towards the end of the year".
It will take over the 7,000 sq ft space now occupied by Italian restaurant Nostra Cucina on level
B1 at The Shoppes at Marina Bay Sands, facing the Sands Theatre. Nostra Cucina will close in
"one to two months", she said.
Opening even sooner is Koma, a 230-seat Japanese sushi bar and restaurant that will complete a
trio of concepts that include Marquee and Avenue, the integrated resort's new nightspots that
opened in the last two months. It is a new brand that is developed with Tao Group, a restaurant
and lifestyle company that also collaborated with MBS on Marquee, Avenue and Lavo, an Italian
restaurant on its SkyPark.
Another major change at MBS is the temporary closure of Waku Ghin by Sydney-based celebrity
chef Tetsuya Wakuda. The two-Michelin-starred fine-dining Japanese restaurant will reopen in "a
few months" with a new concept in an expanded space that "will be very close" to the original
location on Level 2.
Link to the story:
https://www.straitstimes.com/lifestyle/food/two-new-restaurants-opening-at-mbs
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Physical stores tap tech for better shopping experience
Shoppers who dread waiting in line for a changing room or having to trawl through racks of clothes
in a crowded store in Singapore to find what they want can take heart.
A number of stores have turned to technology to address their gripes. For example, Popular
Bangkok-based fashion retailer Pomelo, which opened its first store in Singapore on June 12, has
an online booking system on its mobile app for booking its 14 fitting rooms. As long as customers
are 1km from the store, they can make a booking while waiting for their turn.
The 6,000 sq ft store at 313 @ Somerset is the biggest one for the brand and its first outside
Thailand, where it has seven outlets.
Another time-saving feature on the app is a virtual shopping basket that can be swopped for a real
one of products by scanning a QR code at pick-up kiosks inside the store. Pomelo chief executive
officer David Jou says technology is a means to improve the fashion retail experience.
Local fashion label Love, Bonito, is also helping customers minimise their wait for a changing
room. The brand, which started online, has a store at 313 @ Somerset, where it has installed an
electronic queueing system for its 14 fitting rooms. Similar to systems used in banks, customers
take a queue number upon entering the store and mounted screens display the numbers and
available fitting rooms.
Love, Bonito plans to open another store at the newly renovated Funan mall at the end of this
month. The 6,000 sq ft store will also have the same queueing system.
Link to the story:
https://www.straitstimes.com/singapore/physical-stores-tap-tech-for-better-shopping-experience
Shorter, more festive Great Singapore Sale kicks off today
The Great Singapore Sale kicks off 21 June and will be five weeks long - ending on July 28 -
instead of 10.
But it hopes to pack a bigger punch in a shorter time.
Renamed GSS: Experience Singapore, the sale promises to be more like a festival, with an
interactive fashion show, a pop-up market on Orchard Road with over 40 stalls, and screenings of
short films made by Temasek Polytechnic students.
GSS activities will also expand into Kampong Glam, with a showcase of traditional fashion, a
handicraft bazaar and a flea market for vintage and pre-loved clothing.
Links to the story:
https://www.straitstimes.com/singapore/great-spore-sale-kicks-off-today-with-interactive-fashion-show
https://www.straitstimes.com/singapore/shorter-more-festive-great-spore-sale-kicks-off-today
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Government
Singapore seeks to deepen UK ties for new era
Deepening bilateral relations and forging new platforms of cooperation were some of the key
elements of the Singapore government delegation's trip to London.
Speaking to The Straits Times, Education Minister Ong Ye Kung said: "Britain is going through
some uncertainties but notwithstanding, our agencies got together prior to forge a series of
cooperation agreements in various areas, from fintech to innovation to data.
"So whatever it is, whatever happens to Britain, we are forging ahead with our cooperation for a
new era."
Mr Tharman also had a useful exchange of views on domestic policy responses to the challenges
faced by both countries, the statement added.
Earlier this week, he and Dr Tan met UK parliamentarians, where topics discussed included
bilateral relations, regional developments and higher education reforms.
Describing the meetings as "fruitful", Dr Tan said: "The key message is that the bilateral
relationship is longstanding. It is deep. It is also forward-looking."
Links to the story:
https://www.straitstimes.com/world/europe/spore-seeks-to-deepen-uk-ties-for-new-era
https://www.businesstimes.com.sg/government-economy/singapore-uk-to-deepen-ties-in-digital-government-
services
4G leaders will partner citizens in policymaking: Heng Swee Keat
Deputy Prime Minister Heng Swee Keat set out how his generation of leaders plans to take
Singapore forward: The Government will partner Singaporeans in new ways to design and
implement policies together.
And it will work with Singaporeans to create a shared future where everyone will have a part to
play, he said at a dialogue on building the country's future together.
Mr Heng, leader of the ruling People's Action Party's (PAP) fourth-generation team, sketched out
for the first time in detail the approach it will adopt to govern the country in a more challenging
environment.
He spoke of the need to shift from government that works for the people to one that works with
them.
Constructive politics and unity remain critical, he added, as Singapore becomes more diverse and
navigates serious challenges such as the shifting global order and changes brought about by
technological advancements.
Link to the story: https://www.straitstimes.com/politics/4g-leaders-will-partner-citizens-in-policymaking
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Singapore 'must stay relevant to China and the world'
The strong relationship that Singapore has with China could not have come about if Chinese
patriarch Deng Xiaoping had not told the Chinese to learn from Singapore and if he did not have
a good relationship with Lee Kuan Yew, said Professor Zheng Yongnian.
But many things have happened since then to change that relationship.
Both countries have had new generations of leaders and China has grown from a poor country to
the world's second largest economy, surpassing Singapore in some areas along the way. including
in high-tech, he said.
Singapore, however, has developed the know-how to manage its relations with its giant neighbour
and, importantly, remains relevant to the major power.
As for staying relevant as a small country in order to survive, Prof Zheng said Singapore needs to
stay relevant not just to China but also to the United States, its neighbours and even Europe. As a
small country, "you don't want to be abandoned or isolated", he said.
He added, however, that staying relevant to China would be more important because of its growing
clout in economic terms was well as in the security arena.
Link to the story:
https://www.straitstimes.com/singapore/singapore-must-stay-relevant-to-china-and-the-world
Singapore, Jordan look forward to deeper cooperation
As small countries with limited resources, both Singapore and Jordan must remain nimble to deal
with external challenges, President Halimah Yacob said during a state banquet held in honour of
King Abdullah II of Jordan.
And Singapore looks forward to working with Jordan to weave more threads of cooperation into
their tapestry of relations, she added.
The formal dinner at the Istana rounded off the King's two-day state visit to Singapore, during
which both countries inked a pact to set up a bilateral consultation mechanism to enhance
communication between their officials.
A second agreement on water resource management was also signed by Jordan's Ministry of Water
and Irrigation and Singapore's Ministry of the Environment and Water Resources. It will promote
cooperation in areas like water reuse, desalination and waste-water treatment.
Links to the story: https://www.straitstimes.com/singapore/singapore-jordan-look-forward-to-deeper-cooperation
https://www.straitstimes.com/business/opportunity-for-firms-to-expand-reach-in-asean-mid-east-says-chan
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Economy
US-China trade war starts to bite in Singapore
Effects of the tit-for-tat trade war between the United States and China are starting to bite in
Singapore. From factory managers to industry representatives, accounts are beginning to emerge
of falling orders and sales, reduced factory activity and hiring freezes.
Caught in the cross hairs is Singapore, where some of its exports are being hit, said industry
observers.
Factories here which manufacture products for Chinese companies that would eventually be
shipped to the US are especially hit. Many have pressed the pause button and are churning at less
than full capacity.
The impact is beginning to filter down to Singapore workers.
The Ministry of Manpower's (MOM) latest statistics released show that 3,230 employees were
retrenched in the first quarter of this year, up from 2,510 in the previous quarter and 2,320 in the
same period a year ago. The jump was driven by manufacturing, and it affected mainly production
and related workers in the electronics sector. Among retrenched residents, the bulk of the affected
workers were professionals, managers, executives and technicians.
Link to the story:
https://www.straitstimes.com/business/economy/trade-war-starts-to-bite
Singapore's weak non-oil exports likely to persist, say analysts
Singapore's non-oil domestic exports (Nodx) are likely to remain weak in the months ahead given
slow global growth and rising trade tensions, say observers.
They cited the cyclical slowdown in the electronics market worldwide and the United States-China
tariff war as key challenges.
The slowdown in manufacturing is also affecting workers here, as shown by labour market figures
from the Manpower Ministry last week. Retrenchments rose in the first quarter compared with the
previous three months and the first quarter of 2018.
The increase was driven by manufacturing and affected mainly production and related workers in
the electronics sector.
The seasonally adjusted number of job vacancies also fell for the first time in two years.
Links to the story:
https://www.straitstimes.com/business/spores-weak-non-oil-exports-likely-to-persist-say-analysts
https://www.businesstimes.com.sg/government-economy/electronics-exports-hit-10-year-low-heralding-further-
pain-ahead
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Singapore ranked No. 3 in survey on use of AI in healthcare
Healthcare professionals in Singapore are using artificial intelligence (AI) for clinical diagnosis
more than their counterparts in most other countries, except China and Saudi Arabia.
Among the 15 countries surveyed for the Future Health Index by Dutch technology company
Royal Philips, Singapore had, at 28 per cent, the third-highest percentage of healthcare
professionals who said they use AI to improve diagnostic accuracy. The figure is above the overall
average of 21 per cent among the countries, but behind China's 45 per cent and Saudi Arabia's 34
per cent.
Those with the lowest rates were the United States, with 10 per cent, and Australia and the
Netherlands, both with 8 per cent.
In Singapore, however, AI is used more for administrative tasks, with 37 per cent of respondents
saying that they used it for functions such as staffing and scheduling patient appointments.
Link to the story:
https://www.straitstimes.com/singapore/health/singapore-ranked-no-3-in-survey-on-use-of-ai-in-healthcare
Construction industry sees light at end of tunnel
Recent numbers point to light at the end of the tunnel for the sector, which posted its first
employment gain in almost three years, based on the labour market report for the first quarter of
this year.
Total employment in the industry rose only 0.2 per cent, or 200 jobs, but that was something to
celebrate after 11 consecutive quarters of decline.
In fact, construction was pinpointed as the sole bright spot in the economy amid general pessimism,
according to a quarterly survey of professional forecasters by the Monetary Authority of Singapore
released. It estimated that the sector will grow 3.5 per cent this year, up from the 2.1 per cent
forecast made in March.
Link to the story:
https://www.straitstimes.com/singapore/housing/construction-industry-sees-light-at-end-of-tunnel
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
FDI in Singapore up in 2018 despite slowdown in global flows
Foreign direct investments (FDI) continued to flow into Singapore last year, even when global FDI
fell for a third straight year to its lowest since the 2008 global financial crisis.
FDI in Singapore jumped from US$76 billion in 2017 to US$78 billion in 2018, lifting Singapore
by one placing to 4th in the top 10 world rankings of FDI destinations, according to the World
Investment Report 2019 issued by the United Nations Conference on Trade and Development
(UNCTAD).
The US again tops the ranking despite a drop in FDI to US$252 billion, from US$277 billion in
2017. China, where FDI rose from US$134 billion to US$139 billion in the past two years, remains
in second position.
Investments flowing out of Singapore however dipped from US$44 billion in 2017 to US$37
billion last year, dragging Singapore down two placings to 10th in the top 10 ranking of global
foreign direct investors.
Link to the story:
https://www.businesstimes.com.sg/government-economy/fdi-in-singapore-up-in-2018-despite-slowdown-in-global-
flows
Engineering vital as Singapore enters next phase of development: SM Teo
Engineering has played a major role in Singapore's growth and transformation and will remain
important as the country enters the next phase of development, said Senior Minister and
Coordinating Minister for National Security Teo Chee Hean.
Speaking at the launch of an exhibition on engineering at the Science Centre, he encouraged young
people to pursue careers in engineering or the sciences, saying that the possibilities are limitless in
Singapore, which offers some of the best facilities and support for both big companies and start-
ups.
"We can see feats of engineering all around us: from NEWater, to our transportation networks;
from the Stamford Detention Tank and Stamford Diversion Canal that protect Orchard Road from
floods, to our new mega port at Tuas scheduled to open in 2021," he said.
Mr Teo, who is also the Science Centre's patron, cited the country's newest attraction Jewel Changi
Airport as an engineering marvel, thanks to its glass roof that creates the illusion that it is
suspended in mid-air. Jewel was designed with minimal columns and beams to prevent its indoor
waterfall and greenery from being obstructed.
Links to the story:
https://www.businesstimes.com.sg/government-economy/engineering-vital-as-singapore-enters-next-phase-of-
development-sm-teo
https://www.straitstimes.com/singapore/engineering-vital-for-spores-growth-sm-teo
Weekly News Review Jun 21 2019 / Issue 25
Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090
www.huttonsgroup.com
Hospitality
Construction of Esplanade's new $30m theatre kicks off
Construction has begun on the new $30 million waterfront 550-seat theatre at the Esplanade -
Theatres on the Bay, which is slated to open in the second half of 2021.
The new mid-sized theatre will have flexible seating, rather than the standard proscenium stage
design, making it "a place where arts groups can create something new, create something
interesting".
The new theatre will occupy a 3,000 sq m area along the Esplanade Waterfront and is being
designed by a team led by local firm architects61. It will be named the Singtel Waterfront Theatre
at Esplanade to recognise the telco's $10 million donation towards its construction.
Link to the story: https://www.straitstimes.com/lifestyle/arts/construction-of-esplanades-new-30m-theatre-kicks-off
Industrial
10 plots in Lim Chu Kang for sale by public tender
Ten land parcels for food farming at Lim Chu Kang have been put up for sale by public tender, the
Singapore Food Agency (SFA) said.
These include six land parcels for beansprout farming, three land parcels for general agriculture
(food) farming and a land parcel for vegetable farming, the agency said in a statement.
The land parcels for general agriculture (food) farming may be used to farm food crops, seafood,
quail eggs, cattle or goats for dairy milk, and/ or frogs reared for food.
The plots, which come with a 20-year lease term, have a land area of at least 6,208 sq m each,
which is slightly smaller than a football field. The largest land parcel has a land area of around
20,000 sq m.
They are located at Sungei Tengah Road, Neo Tiew Crescent and Neo Tiew Harvest Place.
Links to the story: https://www.businesstimes.com.sg/real-estate/10-plots-in-lim-chu-kang-for-sale-by-public-tender
https://www.straitstimes.com/singapore/10-new-land-parcels-in-lim-chu-kang-on-sale-for-farming
https://www.straitstimes.com/singapore/environment/10-land-parcels-for-food-farming-put-up-for-sale
Weekly News Review Jun 21 2019 / Issue 25
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Rapid e-commerce growth to drive logistics sector here: Report
The rapid growth in e-commerce is creating an opportunity for the logistics sector in Singapore,
according to a new report.
The report noted that technologies and new business models are reshaping the Asian logistics
sector, which is under pressure to deliver better service at an ever lower cost.
It said technology is being used to bridge the gap, and added: "Many instances of how AI (artificial
intelligence) is improving logistics are already in place.
The logistics business is largely shaped by e-commerce, which involves various categories of
providers and services.
Four key market trends were picked out for the near future - on-demand warehousing; automation
as a service; co-working spaces in the logistics sector; and utilising technology to modernise
customs systems and processes.
Meanwhile, the report noted that demand for warehouse space here was firm in the first quarter
with a vacancy rate of 10.8 per cent, compared with 11.1 per cent in the same period last year.
The average gross rents for the logistics sector remained unchanged year on year at $13.50 per sq
m per month in the first quarter.
Links to the story: https://www.straitstimes.com/business/companies-markets/rapid-e-commerce-growth-to-drive-logistics-sector-here-
report
https://www.businesstimes.com.sg/real-estate/e-commerce-growth-to-drive-singapore-logistics-services-sector-
colliers
ESR-Reit to buy warehouse, enhance 2 assets and raise funds
ESR-Reit will acquire a warehouse for S$225 million under a newly formed joint venture (JV) and
undertake asset enhancement initiatives (AEIs) at two of its existing assets; it will also raise up to
S$150 million in an equity fundraising to finance these transactions and to service existing debt.
The mainboard-listed real estate investment trust's (Reit) manager said that the warehouse
acquisition will be made through PTC Logistics Hub, a limited liability partnership (LLP) in
Singapore. ESR-Reit holds 49 per cent of the partnership interests in the joint-venture, and third-
party logistics firm Poh Tiong Choon Logistics (PTCL), the other 51 per cent.
The LLP has entered into a put-and-call-option agreement with PTCL to acquire the leasehold
interest in the warehouse at 48 Pandan Road in Jurong.
To fund the S$225 million acquisition, the LLP will assume a debt of S$146.2 million; PTCL is
to contribute S$40.2 million by transferring its existing interest in the property. ESR-Reit's trustee
will contribute S$38.6 million in cash or a mixture of cash and units in ESR-Reit.
Link to the story: https://www.businesstimes.com.sg/companies-markets/esr-reit-to-buy-warehouse-enhance-2-assets-and-raise-funds
Weekly News Review Jun 21 2019 / Issue 25
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www.huttonsgroup.com
Evonik to make more animal feed ingredients here
The trade conflict between the United States and China has led to slower growth for Germany-
based chemicals giant Evonik Industries.
But executive board chairman Christian Kullmann, in giving this assessment at a press briefing,
still called target growth levels of above gross domestic product "a must".
Speaking at the launch of the company's new Singapore plant, he said business segments such as
healthcare can still register "good and steady growth, despite the cooling momentum in the Chinese
market's automotive and construction industries.
"We consider Singapore our gateway to extend and expand our businesses, our growth, in the
South Asian region," he added.
Links to the story: https://www.businesstimes.com.sg/companies-markets/evonik-to-make-more-animal-feed-ingredients-here
https://www.straitstimes.com/business/companies-markets/chemical-giant-opens-767m-additive-plant-for-animal- feed
https://www.straitstimes.com/business/companies-markets/evonik-ceo-sees-spore-as-gateway-for-its-growth-in-
south-asia
Overseas
HK tycoons start moving assets offshore as fears rise over new extradition law
Some Hong Kong tycoons have started moving personal wealth offshore as concern deepens over
a local government plan to allow extraditions of suspects to face trial in China for the first time,
according to financial advisers, bankers and lawyers familiar with such transactions.
One tycoon, who considers himself potentially politically exposed, has started shifting more than
US$100 million from a local Citibank account to a Citibank account in Singapore, according to an
adviser involved in the transactions.
"It's started. We're hearing others are doing it, too, but no one is going to go on parade that they
are leaving," the adviser said. "The fear is that the bar is coming right down on Beijing's ability to
get your assets in Hong Kong. Singapore is the favoured destination."
Hong Kong and Singapore compete fiercely to be considered Asia's premier financial centre. The
riches held by Hong Kong's tycoons have until now made the city the larger base for private wealth,
boasting 853 individuals worth more than US$100 million - just over double the number in
Singapore - according to a 2018 report from Credit Suisse.
Link to the story:
https://www.businesstimes.com.sg/government-economy/hk-tycoons-start-moving-assets-offshore-as-fears-rise-
over-new-extradition-law
Weekly News Review Jun 21 2019 / Issue 25
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www.huttonsgroup.com
China's May property sales suffer biggest dip since Oct 2017
China's property investment growth cooled in May and sales saw their biggest decline since
October 2017, suggesting that the frothy housing market may not be able to cushion the effects of
a slumping manufacturing sector and intensifying trade tensions.
Real estate investment, mainly focused on the residential sector but also including commercial and
office space, is a major gauge of growth in the world's second-largest economy.
China's property market has seen a recent resurgence as some local governments eased home
purchase rules to boost economic activity, while Beijing's call for banks to ramp up lending and
lower interest rates has also helped boost investor confidence.
But the picture is very uneven, and some analysts cautioned that such a rebound might be difficult
to sustain as broader economic growth slows and official property market curbs are expected to
remain in place in most cities.
Link to the story:
https://www.businesstimes.com.sg/real-estate/chinas-may-property-sales-suffer-biggest-dip-since-oct-2017
China's May new home prices rise fastest in 5 months
New home prices in China rose at their fastest pace in five months in May, complicating
government efforts to keep frothy housing markets under control as it rolls out more stimulus for
the slowing economy.
Average new home prices in China's 70 major cities rose 0.7 per cent in May from the previous
month, picking up from a 0.6 per cent rise in April and the quickest pace since December,
according to Reuters calculations based on National Bureau of Statistics (NBS) data.
That marked the 49th straight month of price gains. A total of 67 of the 70 cities surveyed by the
NBS reported higher prices in May, the same as April.
On an annual basis, home prices increased 10.7 per cent in May, unchanged from April's growth
rate.
Data also showed the biggest drop in property sales in nearly two years in May, and markedly
slower growth in investment and new construction starts, pointing to further economic weakness
ahead and more government growth boosting measures.
China's home price growth has slowed significantly since the second half of 2017 due to intensive
local curbs on speculative investments.
Link to the story:
https://www.businesstimes.com.sg/real-estate/chinas-may-new-home-prices-rise-fastest-in-5-months
Weekly News Review Jun 21 2019 / Issue 25
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www.huttonsgroup.com
Australian home price dive levels out as auctions lift market
Australian home prices look to be finally finding a floor as a revival in auction demand put Sydney
on track for its first monthly gain in two years.
An end to the relentless losses could be a lifesaver for the economy given the erosion of housing
wealth has been undermining confidence and consumer spending power. Australia's housing stock
is valued at A$6.8 trillion (S$6.4 trillion), or almost four times the country's annual gross domestic
product.
Preliminary data showed that home prices across the capital cities were steady last week, breaking
months of steady declines.
Values in Sydney actually edged up 0.3 per cent for the month the June 15, a major turnaround if
sustained. Prices in Sydney have been falling since mid-2017 and are down around 15 per cent
from their peaks.
Link to the story:
https://www.businesstimes.com.sg/real-estate/australian-home-price-dive-levels-out-as-auctions-lift-market
In China's Chongqing, high-rises buck property slowdown
In many Chinese cities, government restrictions have cooled formerly feverish property markets,
but in the south-western city of Chongqing, construction is booming and sales soaring as investors
rush in.
The most audacious evidence is one of the newest additions to the city's skyline, a mega project of
eight futuristic high-rises, six of which are connected by a vertiginous skybridge.
The behemoth Raffles City Chongqing looms over a bend in the Jialing river, where its dark-green
waters meet the muddy currents of the Yangtze.
The 73-storey towers, part of a project built at a cost of US$4.8 billion (S$6.57 billion), are
unmistakeable proof that a slowdown which has seen sales slump nationwide has not taken hold
in Chongqing.
In recent years, Beijing has banned capital flight, curbing investments in foreign projects like a
luxury development built by Chinese developers in Malaysia.
And the authorities have tightened regulations in the country's main cities, requiring buyers to
show proof of residence before purchasing homes.
Those rules have benefitted places like Chongqing, a key logistics staging point in China's Belt
and Road Initiative.
Links to the story:
https://www.straitstimes.com/asia/east-asia/in-chinas-chongqing-high-rises-buck-property-slowdown
https://www.businesstimes.com.sg/real-estate/chongqings-high-rises-buck-downtrend-in-china
Weekly News Review Jun 21 2019 / Issue 25
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www.huttonsgroup.com
Indonesia luxe home builders get boost from new tax limit
Indonesia just made it cheaper for buyers to own an expensive house by raising the luxury tax
threshold limit.
The luxury levy of 20 per cent on bungalows or high-rise condos will now apply only to properties
valued at 30 billion rupiah (S$2.87 million) or more, according to a Finance Ministry notification.
The levy previously applied to town houses with land title valued at 20 billion rupiah or more, as
well as apartments, townhouses and condos without land title and priced at 10 billion rupiah and
above, the government said in a statement. President Joko Widodo is seeking to fire up South-east
Asia's largest economy by extending tax breaks to the property sector as weakening global growth
and a prolonged US-China trade war cloud the outlook.
Bank Indonesia, which hiked interest rates six times last year, has already eased housing-loan rules
in a bid to spark demand.
Link to the story:
https://www.businesstimes.com.sg/real-estate/indonesia-luxe-home-builders-get-boost-from-new-tax-limit
Contact: Lee Sze Teck
Head, Research
(65) 6500 6510
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