Singapore Real Estate Private home prices to drop 5-15% over 2016-2017: OCBC OCBC Investment Research said it expects private home prices to slip 5 to 15 per cent over 2016-2017 and 2016 primary residential sales to remain muted at between 6,000 and 9,000 units. Residential rents could also drop 8-15 per cent over two years, analyst Eli Lee said in his report on Friday. Foreign developers out to woo Singapore buyers With so much wealth being created in Asia, it is no wonder foreign property launches are gathering pace in this part of the world. Some developers are even starting their campaigns in this region first, as New York firm Extell Development Company did last month. It began selling its 80-storey condominium One Manhattan Square in China, Taiwan, Hong Kong, Singapore and Malaysia before launching it in the United States. The units were priced at between US$1 million and US$3 million (S$1.4 million and S$2.1 million). http://www.straitstimes.com/business/invest/foreign-developers-out-to-woo-singapore-buyers Waning rents, tenant demand prompt malls' repositioning In the heyday of the retail-property market, many landlords were eager to slice retail spaces into smaller units to lease out at higher rents per square foot. Now in the face of softening rents and dwindling tenant sales, some landlords are changing tack to lure back the bigger tenants they were once inclined to shoo away. While this curating of tenant mix may lend support to mall occupancies and footfall, it will do little to reverse an anticipated fall in retail rents next year. http://www.businesstimes.com.sg/real-estate/waning-rents-tenant-demand-prompt-malls-repositioning Rental gap narrowing between suburban and Orchard malls The rental gap between prime spaces in suburban malls and Orchard malls has been narrowing - and this trend is slated to continue into 2016. Property consultants noted that the relative resilience of suburban malls stems from their larger local catchment and lower susceptibility to tourist spending, which has been dealt a blow from lacklustre tourist arrivals and competition from other global cities for their spending. Tenants' market as industrial property fever cools Times are good for tenants such as Mr Matthew Goh, owner of a warehousing and logistics firm. Until September, his company was occupying a 2,100 sq ft Basement 1 unit in Lorong Bakar Batu in MacPherson, for about $1.70 per sq ft per month (psf/mo). http://www.straitstimes.com/business/property/tenants-market-as-industrial-property-fever-cools Properties put up for auction at 6-year high More distressed properties were put up for auction this year, but barely a fraction were sold. The number of auction properties rose to a six-year high of 796 in 2015, going by Colliers data which includes relistings, but the number that got sold was dismal at just 33. CapitaLand looking to invest in Vietnam's office segment – exec Singapore's CapitaLand Ltd is looking to invest in Vietnam's office property segment, its country head said, as the real estate developer seeks to grow its portfolio beyond residential and serviced apartments in the fast-growing economy. Besides land, the company is looking to buy completed office buildings and upgrade them, Chen Lian Pang, chief executive officer of CapitaLand Vietnam, told Reuters. Green building a smart, socially-responsible way to do business Developers and occupiers, who perhaps in the early days of green buildings considered themselves more progressive, may have picked the green path because "it was the right thing to do". But these days, what's drawing them in are rather hard, tangible benefits such as cost and energy savings, Ross Shuster, president of international operations for United Technologies' Climate, Controls & Security (UTCCS) unit told The Business Times in a recent interview. M1, Keppel Land run pilot of smart home system at condo A pilot programme to create smart homes has been introduced by M1 and Keppel Land. Thirty households at The Luxurie, a 622-unit condominium in Sengkang, will have smart healthcare and home solutions installed in their homes under the M1-Keppel Smart Lives programme. 9 in 10 satisfied with Building Service Centres: HDB Just over a decade ago, new homeowners had to go to their Housing Board branch to report problems with their completed flats. But this changed in 2005, with dedicated Building Service Centres (BSC) for each completed project. There, residents can report defects, receive advice and borrow equipment to do their own inspections. http://www.straitstimes.com/singapore/housing/9-in-10-satisfied-with-building-service-centres-hdb http://www.channelnewsasia.com/news/singapore/stringent-quality-checks/2354620.html Government in talks with construction firm over delay in finishing Ng Teng Fong hospital The Government is in negotiations with GS Engineering and Construction over the delay in the completion of the Ng Teng Fong General Hospital. Under their agreement, the South Korean construction firm has to pay $100,000 a day for any delay in completing the 700-bed hospital, which became operational in the middle of this year. Rise in loan interest 'won't be drastic' Interest on home mortgages and business loans in Singapore will increase further next year after this week's historic rate rise by the United States Federal Reserve. However, the rises will not be too drastic as the US monetary tightening cycle, which kicked off on Thursday, is expected to be gradual. http://www.straitstimes.com/business/companies-markets/rise-in-loan-interest-wont-be-drastic Proposed rules worry training centres Centres that run workplace safety courses for construction workers here are uneasy about the prospect of tighter regulations. In an e-mail sent out in October, the Workplace Safety and Health Council had asked training providers, who are accredited by the Ministry of Manpower (MOM), for feedback on possible higher criteria in order to remain in the industry. http://www.straitstimes.com/singapore/manpower/proposed-rules-worry-training-centres Companies' Brief More retail-friendly bond issues in 2016 Singapore's fixed-income market next year is tipped to be active, with more retail-friendly issuances. What's more, perpetuals will continue to be popular even as financial conditions are likely to remain volatile. Fitch affirms GLP at BBB+, with stable outlook Fitch Ratings on Friday affirmed Global Logistic Proper-ties' (GLP) long-term foreign-currency issuer default rating at BBB+ with a stable outlook. The senior unsecured rating and all outstanding bonds are also affirmed at BBB+. http://www.businesstimes.com.sg/companies-markets/fitch-affirms-glp-at-bbb-with-stable-outlook Architect of green building movement Over the last decade, green buildings have sprouted up across the island from Jurong to Pasir Ris. From just 17 in 2005, there are now more than 2,500 of these environmentally friendly buildings, making up around 30 per cent of all buildings here. http://www.straitstimes.com/singapore/architect-of-green-building-movement?login=true Views, Reviews & Forum S'pore as Asia's start-up nation, infrastructure financing hub? Singapore's economic model over the last 50 years has, undoubtedly, been a great success. The state recognised early on the limitations of a small domestic market and embarked on an aggressive drive to attract foreign capital from the developed West. This, combined with a hard-working workforce, generous tax incentives for multinational corporations (MNCs) and a competent and honest bureaucracy, enabled Singapore to become the most attractive place for foreign businesses looking to grow in Asia. Global Economy & Global Real Estate The Fed could be forced to reverse rate hikes The US Federal Reserve is slowly raising the cost of borrowing after seven years of exceptionally loose monetary policy. But by taking so long, there's a danger the central bank under Chair Janet Yellen may need to cut rates again relatively soon. While a swift retreat might be insignificant on paper, the Fed's credibility would suffer. http://www.businesstimes.com.sg/government-economy/the-fed-could-be-forced-to-reverse-rate-hikes Impact of Fed rate hike disappointing http://www.businesstimes.com.sg/companies-markets/impact-of-fed-rate-hike-disappointing US eases 35-year-old tax on foreign property investors http://www.businesstimes.com.sg/real-estate/us-eases-35-year-old-tax-on-foreign-property-investors US$5.4b Stuyvesant Town complex deal completed after threatened lawsuit Malls, high rise buildings transforming ex-ghost city Phnom Penh http://tablet.todayonline.com/world/asia/ghost-city-boomtown-phnom-penh-soars-high S Africa builder sees prospects in graves http://www.businesstimes.com.sg/real-estate/s-africa-builder-sees-prospects-in-graves China home prices rise for second straight month in November |