The recent URA ruling on average unit size for residential projects launched from Jan 17, 2019 states that the average size of new private apartments outside the Central Area has to be 85 sq m, up from 70 sq m before is welcomed by buyers as it makes apartment space more liveable for homeowners.

The upsizing of units was announced on Oct 17 by URA through three circulars on building guidelines for non-landed residential developments. Nine areas in Singapore — up from four currently — will be subject to a more stringent requirement of an average unit size of 100 sq m. These nine areas are Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens Road-Chancery, Pasir Panjang, Kovan-How Sun area, Shelford and Loyang.

With effect from Jan 17, 2019, the bonus gross floor area (GFA) cap for outdoor spaces — such as balconies, private enclosed spaces and private roof terraces —in private non-landed projects will be reduced from 10% to 7%. The total balcony area for each unit will be capped at 15% of the net internal area. A new scheme that will take effect immediately will offer a bonus of up to 1% GFA to encourage developers to provide residents with more indoor recreational spaces such as gyms or function rooms.

​This latest URA circular addresses the problem of rising psf prices and shrinking apartment sizes and is generally expected to benefit consumers as it means developers will have to build more family-friendly units outside the Central Area. With up to 50,000 residential units in the pipeline, the authorities do not want too many shoebox apartments because it could lead to problems down the road.

The likely effect of increasing the floor area of units will mean the average psf selling price of residential projects will be lowered as developers try to maintain affordability in terms of the absolute price of the unit therefore may result in a moderation in overall prices. The increase in floor area of units will mean more comfortable and livable homes. Fewer units per project will translate into lower density in housing estates, and thus, an improvement in the living environment.

The increase in floor area of units will mean apartments will mean apartments will not be as densely built as they are now. 

In the near term, the revised guidelines should not affect developers that have bought land and obtained both the pre-application traffic feasibility study (PAFS) from the Land Transport Authority and planning approvals from URA, e.g. the four recently acquired sites by CDL at Amber Park, West Coast Vale, Handy Road and Sumang Walk Executive Condominium sites.

Generally, the supply that is scheduled through 2023 — assuming five years of construction — should be unaffected by the new circulars. From 2023, there is likely to be a readjustment of unit sizes in line with changing economics and demographics. Together, a greater choice of unit sizes, an optimal balcony size, more indoor recreational spaces and less traffic congestion within an estate should lead to a more sustainable property market.

The revised average unit sizes translate into a 20% reduction in the number of units, and together with the restrictions on the spread of units and usage of balconies, is likely to discourage developers from participating in government land sale or collective sale tenders.

While we may see a decline in land prices in the near term, a lack of supply in the future might be an unintended consequence. Given that the revised development guidelines will only be implemented three months from now, developers with existing land parcels are likely to bring forward their planning process. Developers that have purchased land through en bloc deals this year could face some challenges in obtaining planning permits.

The restrictions to average unit size of 85 and 100 sq m do not apply to the Central Area, which URA defines as 11 planning areas such as Outram, Newton, River Valley, Singapore River, Marina South and Marina East, Rochor, Orchard and Downtown Core.

Home owners looking for property in the city usually don’t mind living in an apartment the size of a hotel room for the convenience of being close to the MRT station, Orchard Road or the CBD. Thus, in the prime districts of Orchard Road and the financial district, there is still a market for compact one- and two-bedroom apartments.

Singapore property 'standstill' expected in 2019: analysts

Just when Singapore's residential property market was reviving after a four-year slump, government moves to curb the exuberance might play spoiler going into the new year. Home prices that are forecast to climb as much as 10 per cent this year could remain flat in 2019 and may decline as much as 3 per cent, estimates from property brokers compiled by Bloomberg News showed. Home sales that lagged behind 2017 levels this year may once again be below that mark in 2019, according to forecasts. The pace of residential property price increases is slowing after the government added measures to cool the market in July. Additional guidelines that limit the number of "shoebox" apartments developers can build, plus anti-money laundering safeguards that restrict builders, are further constrictions. The government said earlier this month it also plans to slow its release of land sales for residential use in the first half of 2019, citing a spike in supply and a cooling in demand.


Housing demand could still fuel 2019 growth in Singapore

The local housing market could still support Singapore's growth in 2019, despite the curbs unveiled this year, bank analysts said this week. Standard Chartered's (StanChart) global chief economist David Mann, who is based here, acknowledged that "there are lots of cross-currents" in the air, from dampeners like an electronics cycle slowdown to upsides like a ramp-up in investment diversions into Asean. Domestic drivers could include "a relatively robust market demand for housing" that supports home prices as inflation grows while lauding shock cooling measures as a cap on "unnecessary speculative froth". Where Singapore is concerned, though, the house hews to the street's view: It expects economic growth to cool to 2.6 per cent in 2019, from an estimated 3.3 per cent this year.

Condominiums and private apartment resale prices strengthened by 0.2 per cent last month from October. This follows a 0.3 per cent drop in October, a figure revised from an earlier estimated decline of 0.4 per cent. Before August, resale prices had an unbroken 12-month run to new highs. Now, year-on-year, they are still up by 8.8 per cent from November 2017, but are down 0.7 per cent from their peak in July when the additional property curbs were announced. Buying activity in the resale market continued to remain lacklustre. An estimated 662 units were resold in November, a 4.6 per cent decline from the 694 units in October. Resale volume compared to a year ago was 55.4 per cent lower than the 1,483 units moved in November 2017. 

Singapore condo rents up 0.6% in November; HDB rents down 0.5%

The rental market for private non-landed property in Singapore picked up in November while it slowed for HDB properties, going by flash data. Rents for condominiums and private apartments in November increased by 0.6 per cent from the previous month. The monthly decline in rents for October was raised to 0.9 per cent from 0.7 per cent estimated earlier. They were unchanged in August. Year on year, private rents are up by 0.3 per cent from November 2017. However, compared to their record high in January 2013, they are down by 19.6 per cent. 


Fintech workers helping to prop up private rental market

More hiring in the fast-growing fintech services sector has been holding up the rents for condominiums and private apartments. Rentals for HDB properties, however, slowed last month according to flash data. Rents for private, non-landed homes last month increased by 0.6 per cent from the previous month. Year on year, private home rents were up by 0.3 per cent last month. However, compared with their record high in January 2013, they were down by 19.6 per cent. Although the leasing volume dipped by 11.8 per cent last month from a year ago, the number of units leased for the first 11 months rose 5.9 per cent to 51,757 units from 48,882 units in the same period a year ago. Private rents in the prime or core central region (CCR) rose 1.8 per cent last month from a month ago, while rents in the city fringes or rest of central region (RCR) grew by 0.6 per cent. However, rents in the suburbs or outside central region (OCR) fell by 0.3 per cent. Year on year, RCR and OCR rents have risen 1.2 per cent and 0.8 per cent respectively, but CCR rents have dropped by 1.5 per cent.


Condo management has no power to make by-law: Judge

A condominium management corporation took a unit owner to court to pay damages it had based on a condo by-law - but the High Court ruled that the MC did not have the power to make such a by-law in the first place. Striking down the MC's bid to seek some $344,000 from the owner, whose tenant had encroached on common walkway space, the judge said there was no provision under the Building Maintenance and Strata Management Act (BMSMA) for the MC to make such a by-law. Instead, the BMSMA provides for the MCs to recover damages arising from breaches of by-laws by applying to the court, said Judicial Commissioner Dedar Singh Gill in judgment grounds.


HDB to launch around 15,000 new flats in 2019

The Housing Board (HDB) will launch about 15,000 new flats in 2019 in neighbourhoods like Sengkang, Jurong West and Kallang/Whampoa. This includes around 2,000 flats with shorter wait times in Tengah, where prospective home owners can expect to collect the keys to their new flats in two to three years from the point of application. "HDB will continue to monitor the housing needs of Singaporeans closely and calibrate our flat supply carefully to provide affordable and quality housing to all," it said

Landmark Tower buyer continues to seek funds to finance collective sale

The Singapore wealth management and real estate services company who is buying Landmark Tower is continuing to raise funds to finance its stake in the collective sale. The joint venture had bought the Chin Swee Road site through a joint venture for S$286 million or $1,406 psf ppr, including the lease upgrading premium of S$57 million. The fundraising target is S$55 million by the end of Q1 2019, the company told The Business Times. The condo project will be launch in the second half of 2019, at a "low S$2,000 psf"


En bloc hopefuls cut prices as reality bites

Amid a decidedly quieter collective sale market, some homeowners have become more measured in their expectations as seen by the downward price adjustments at some en bloc potentials. The latest of these is Park View Mansions, which relaunched its tender at a reserve price of S$250 million, or 22 per cent lower than when it first launched earlier this year. In late October, Gilstead Mansion relaunched its en bloc at S$65 million, or S$3 million less than its guide price in June. At Park View Mansions, more than 80 per cent of the owners at the 191,974 sq ft development right by Jurong Lake Gardens consented to the new price, "in view of current market conditions", marketing agent Huttons Asia said in a statement. The new price translates to a land rate of roughly S$969 psf ppr, after taking into account an estimated differential premium and lease upgrading premium of some S$140.8 million. Angela Lim, deputy head of investment sales, told BT that the first time round, there was interest but no bid higher than the reserve price. She said developers had been "closely tracking" Park View Mansions' progress of securing a lower reserve price for the past few months. Terence Lian, head of investment sales for Huttons Asia, said in a statement: "The site presents an excellent redevelopment opportunity for developers as it is located right next to Jurong Lake Gardens. This is a rare piece of land which offers a seamless connection to the gardens and provides a natural environment, hence enhancing the well-being of residents." He also pointed to the Jurong Lake District, slated to be Singapore's second Central Business District. The break-even could be S$1,450 psf according to Huttons' estimate. The tender for Park View Mansions closes at 12pm on Jan 18.


Kampung Admiralty project attracts international attention

Kampung Admiralty, nestled in the Woodlands heartland, buzzes like any HDB community, but has lately become a destination from people from all over the world looking to learn about and photograph this retirement community. Designed by local architecture firm Woha Architects, the village with its own amenities won World Building of the Year at the World Architecture Festival in Amsterdam last month. It beat 535 projects from 57 countries; it also won the Mixed Use Completed Building category in the same competition. The win has since catapulted the development into the spotlight on the world architecture map. 

Malaysia says it will take steps to de-escalate situation

Malaysia said it will take all effective measures to de-escalate the situation on the ground and handle the ongoing maritime boundary dispute with Singapore in a calm and peaceful manner. It also reiterated the importance of strong bilateral relations, and hoped that talks on resolving matters would start expeditiously, Malaysia's Foreign Ministry said in a statement. Singapore responded by saying it is "encouraged" that Malaysia has said it will take all effective measures to de-escalate the situation. Singapore also welcomes the Malaysian government's agreement that officials meet in the second week of January to exchange views on resolving the Johor Baru port limits issue, said the Republic's Ministry of Foreign Affairs (MFA). Still, MFA said Singapore is "disappointed" that Malaysia is unable to accede to its proposal to revert to the pre-Oct 25 status quo. The Johor Baru port limits were unilaterally extended by Malaysia that day, with Malaysia claiming waters belonging to Singapore as its own.


Six moneylenders with unique business models issued new licences

It is the first time in six years that MinLaw is issuing new moneylending licences since a moratorium was imposed in 2012. The one-time lifting of the moratorium is part of an initiative to better protect borrowers through business-led improvements. The new models include more comprehensive use of data to assess creditworthiness, using digitalised processes to lower cost and giving better terms to those who repay their loans early or on time, MinLaw said. All six firms have paid-up capital of at least S$1 million and demonstrated a track record in providing consumer credit, whether in licensed moneylending or in other sectors of consumer credit. MinLaw said there are currently 162 moneylending outlets in Singapore. The new licensees will be allowed to operate for up to two years from next year, after which MinLaw will evaluate the results of the pilot and consider options for refining the moneylending regulatory regime.


Trade tensions seen among 2019's top business risks

Trade tensions between China and the United States, nationalist politics and increased environmental regulation are among the top risks for firms in 2019, according to specialist risk consultancy Control Risks' annual look at the year ahead. In Asia, pressure on China's slowing economy will not bode well for commodity-focused economies such as Indonesia, Australia and Malaysia. And countries in the Asia Pacific - including Singapore - will increasingly have to choose between the competing visions which China and the US have for Asia. Another risk is that amid rising nationalist sentiment, multinationals will come under pressure. In Asia, as economies cool, politicians may "play the nationalist card" in areas such as foreign investors' access to sectors, and preferential policies for local companies. Climate change will not only bring business disruptions through extreme weather - from storms and floods to droughts and fires - but also encourage politicised environmental regulation.


Economy watchers trim Singapore 2019 GDP forecasts

Singapore is headed for a slowdown, private-sector analysts said, while agreeing that the US-China trade war is the top risk to the economy. Growth in next year's gross domestic product (GDP) is expected to ease by a wider margin than was projected three months ago, according to the latest quarterly survey by the Monetary Authority of Singapore (MAS). The manufacturing sector - where the linchpin electronics segment has hit a bump - could continue to weigh down the Singapore economy, with the long-awaited recovery in construction perhaps unable to offer relief. Economists trimmed their forecast for next year and predicted that Singapore's growth will come in at 2.6 per cent, down from the 2.7 per cent forecast earlier. For 2018, GDP growth is expected at 3.3 per cent, 0.1 point lower than the projection from a similar poll in September - even as 2018's full-year estimate was bumped up from 3.2 per cent. 

Singapore shoppers 2nd in Asia-Pacific for buying foreign goods online

Online shoppers in Singapore are second only to their counterparts from Hong Kong in the AsiaPacific when it comes to making purchases from overseas, particularly from Chinese websites. An Ipsos study commissioned by PayPal found around 73 per cent of online shoppers here bought items from overseas in the past year, with 14 per cent shopping exclusively on foreign websites. Ipsos is a market research and consulting firm based in France. The results showed that 75 per cent of shoppers in Hong Kong made cross-border online purchases. Ipsos surveyed more than 34,000 respondents in 31 markets from March to May this year for the study, including 1,000 from Singapore. Clothing, footwear and accessories topped the list of most popular categories of items bought online, with around 70 per cent of respondents in Asia buying at least one item in the past year. Global shoppers mostly went to online stores based in China, with respondents citing better prices as the primary reason. The rise of international e-commerce in Singapore is a positive sign at a time when countries are putting up more barriers as trade protectionist sentiments grow around the world, concluded a panel of industry insiders while discussing the PayPal report at Republic Plaza.


Singapore's consumer confidence hits 3-year high in Q3

Consumers remained pessimistic about their lot in the economy but felt a little bit cheerier in the third quarter. In fact, confidence in the three months to Sept 30 rose to its highest level since it entered gloomy territory three years ago. The Singapore Consumer Confidence Index was at 98 points for the quarter, up from 94 in the previous three months. Any score below 100 denotes pessimism. The index has been in pessimistic territory - and below the global index level as well - since the fourth quarter of 2015, when it dipped from 101 points to 94. Three indicators underpin the index: consumers' perception of the state of their personal finances, local job prospects and their spending intentions. Singapore recorded improvements in all three, both on year-on-year and quarter-on-quarter bases.


Retail sales up 0.1% in October, way below forecast

Retail sales ticked up slightly in October but came in well below market expectations. Takings at the till rose just 0.1 per cent over the same month last year - a far cry from the 1.9 per cent increase in September and a mile short of the 1.5 per cent tipped by analysts polled by Bloomberg. ​Excluding motor vehicles, retail sales rose 0.5 per cent. Car sales fell by 2 per cent year on year, noted the Department of Statistics. However, takings at department stores dropped 3.6 per cent, and those at supermarkets and hypermarkets were down by 2.9 per cent compared with October last year. Retailers of optical goods and books recorded sales declines of 1.9 per cent, while those selling recreational goods saw a drop of 1.8 per cent. The total retail sales value in October was about $3.7 billion, with online accounting for an estimated 5.3 per cent. 

S'pore doing well in human capital: World Bank report

Singapore is generally doing well in investing in human capital and is well positioned to deal with the changing nature of work, experts and the World Bank said. The World Bank noted that although there were concerns that technology would replace jobs, new platforms will create employment opportunities in fresh areas. "Robot density per worker in 2018 is the highest in Germany, Korea and Singapore. Yet in all of these countries, despite the high prevalence of robots, the employment rate remains high," it said. New platforms such as Grab expand job opportunities and Singapore is able to take on these changes.


Job market picks up, but hiring may be easing

The labour market continued to improve in the third quarter of this year, but several indicators show that hiring may be slowing amid global uncertainties. Between July and September, more people were employed here and fewer lost their jobs, compared with the preceding three months. Official figures released by the Ministry of Manpower (MOM) showed that total employment, excluding foreign domestic workers, grew by 16,700 from July to September. This was the fastest rate in four years, surpassing even the preliminary estimates of 15,200 released in October. Observers said this is likely driven by good economic growth in the first half of the year. But overall unemployment crept up slightly, and the proportion of residents who found work last quarter within six months of being retrenched slipped to 62 per cent, down from 64 per cent in the second quarter. Lower re-entry rates were seen across all age groups.

Singapore on radar for foreign institutional investors again

After years of lacklustre foreign institutional interest in the Singapore commercial property market, Singapore is appearing on investors' radar again. Inflows from foreign institutional investors - equity and pension funds, insurance, sovereign wealth funds among others - between 2016 and 2018 have amounted to US$5.3 billion (S$7.3 billion) in transaction value, well up on the US$1.1 billion recorded in the 2010 to 2015 period. In 2015, foreign institutional buyers stayed out of the market due to weakness in the Singapore office sector. Supply overhang coupled with a sub-2 per cent gross domestic product growth had taken a toll on the commercial property market, with office and retail rents sliding and vacancy rates rising. Weak demand persisted into the early part of 2016 despite some early shoots of recovery in the global economy.

However, 2016 saw a return of foreign institutional investors as the office market started to stabilise, resulting in a surge in transaction value to US$4.3 billion. The annual transaction value decreased to a more sustainable pace at US$1.5 billion last year and US$1.6 billion so far this year. The charge in 2016 was led by Qatar Investment Authority's acquisition of Asia Square Tower 1 for $3.4 billion. Then last year, Manulife bought PWC Building for $747 million and insurer FWD Group bought a 50 per cent stake in One George Street for $591.6 million. 


London fintech Revolut to launch in Asia-Pacific; regional HQ likely in Singapore

London-based fintech Revolut announced that it will debut in the Asia-Pacific in the first quarter of next year, and has already been granted the necessary licences to operate in Singapore and Japan. Its Asia-Pacific headquarters "will most likely" be based in Singapore, with a number of key personnel responsible for business development, public relations and compliance already hired in the region, it said. Users of Revolut's app can spend abroad in more than 150 currencies with no fees; they can also hold and exchange 24 currencies in-app and make free domestic and international money transfers at the real exchange rate.


Real estate goes data-heavy in a disrupted world

In the last few years, technology has brought about a wave of disruption. From transport to retail, financial services to real estate, disruption has become the new norm. While the gravity of disruptive forces varies across industries, there remains a unanimous element - data. Closer to home, the use of data has been identified as a cornerstone of the Asean Smart Cities Network, the region's geopolitical masterplan for smart and sustainable urban development with the use of technology as an enabler to improve people's lives. In fact, the fusing of technology and data has given rise to a dynamic new sub-sector of real estate, PropTech. The facts augur well for PropTech and its role within the Asean Smart Cities Network. With 400 million Internet users, favourable demographics where 70 per cent of the population are below 34 years old and massive urbanisation with the rise of mega cities such as Singapore, Kuala Lumpur, Jakarta, Manila, Bangkok and Ho Chi Minh City - this initiative could not have come at a better time. Furthermore, with Singapore acting as a sandbox for PropTech due to its intense focus on becoming a smart city and its leadership in the innovation space across Asean, the future looks bright for PropTech. Commercial real estate providers are looking at data sets to build specific solutions and provide more actionable intelligence for clients. For example, PropTech solutions now extend to harnessing sales and leasing and sales activity, asset management data and portfolio valuation data. 

E-cigarette company Juul Labs, industrial cannabis grower CannAcubed set up base in Singapore

An e-cigarette company that has been accused of fanning the flames of the underage smoking epidemic in the United States has set up its regional headquarters in Singapore. This is despite the fact that some products sold by firms like Juul Labs were recently banned here when the Government outlawed the sale, purchase and use of all e-cigarette products in February. CannAcubed's arrival here comes against the backdrop of countries in the region, like Thailand and Malaysia, exploring legalising cannabis for medical purposes.As for Juul, the firm told The Sunday Times that it has "no intention to sell, market or distribute our product in markets - such as Singapore - where the law does not permit such activity".


World's most popular travel destinations of 2018

Jerusalem is poised to lead growth in inbound arrivals, making the Israeli city one of the world's most popular travel destinations in a year in which Japan and India continued to lure visitors, Euromonitor International said. Arrivals to this year's top-100 city destinations are poised to increase by 7.5 per cent overall, with city hubs extending their importance for the global travel industry. Porto, named Europe's leading destination at the 2018 World Travel Awards, is another city to watch, according to Euromonitor. The Portuguese city is predicted to benefit from a 7 per cent increase in arrivals in 2018, and has advanced 42 slots in the rankings since 2012 to reach the top 100 this year. Hong Kong leads the list of cities with the most arrivals. It's forecast to receive 29.8 million people in 2018, 7 per cent more last year. Bangkok, London, Singapore, Macau, Paris, Dubai, New York, Kuala Lumpur and Shenzhen, China, round out the 10-most popular destinations, according to Euromonitor. 

Pending US home sales down to 4-year low in October

Contract signings to purchase previously-owned US homes unexpectedly fell by the most since January, reaching the lowest level since mid-2014 amid mounting evidence that the housing market is struggling. The index of pending home sales dropped 2.6 per cent, after a 0.7 per cent gain the previous month, according to data released by the National Association of Realtors (NAR) in Washington. That missed the median estimate in Bloomberg's survey calling for a 0.5 per cent rise. The gauge was down 4.6 per cent from a year earlier on an unadjusted basis, following a 3.3 per cent decrease. The results underscore the challenges as elevated prices and rising mortgage rates are keeping more Americans on the sidelines of the housing market. 


US NZ haven for mega-rich feeling pain of crackdown on ownership

New Zealand's Central Otago, whose ski fields, vineyards and golf courses have made it a popular bolthole for the world's mega-wealthy, may be showing the effects of the South Pacific nation's crackdown on foreign home owners. Average asking prices for homes in the South Island's Central Otago-Lakes District fell 19 per cent to NZ$857,011 (S$810,385) in November from the previous month after New Zealand implemented legislation restricting foreign ownership. New listings in the region - whose property owners are reported to include hedge-fund pioneer Julian Robertson and Hong Kong-based financier Michael Nock - fell 4.6 per cent, according to a report. There were 10,431 homes for sale in the country's most-populous city, or 5 per cent more than a year earlier. Nationally, asking prices for properties averaged NZ$653,575 last month, down 3.3 per cent from October. 


Australia house prices fall the most since global financial crisis

Sydney's property downturn accelerated in November, propelling nationwide house prices to the biggest monthly drop since the global financial crisis, as credit curbs and buyer nerves continue to bite. Nationwide home values fell 0.7 per cent last month, led by a 1.4 per cent drop in Sydney and one per cent in Melbourne, according to data released. The drop takes the total decline in Sydney since the July 2017 peak to 9.5 per cent, on the cusp of overtaking the 9.6 per cent top-to-bottom decline recorded during the last recession 27 years ago. This decline is even steeper than the 1989-91 fall, showing how quickly sentiment has flipped. November is usually the start of the peak selling season in Australia, so the deepening downturn points to continued weakness ahead.

Embrace, not obstruct, technological change: PM

Prime Minister Lee Hsien Loong has called on countries to embrace technological change instead of yielding to their anxieties by obstructing it. During a brief speech about the future of work at the Group of 20 summit, he urged governments to help workers displaced by new technology take on new jobs. Companies and industries must adapt to new technologies and market conditions, while workers have to adopt the mindset of lifelong learning. Singapore is attending the G-20 summit as a representative of Asean - which it chairs this year - at the invitation of this year's G-20 president, Argentina. Singapore is also speaking on behalf of an informal coalition of small and medium-sized states known as the Global Governance Group. 


Singapore extends port limits off Tuas, says will guard sovereignty

Singapore has extended its port limits off Tuas in response to Malaysia's latest intrusion in its waters, warning it would not hesitate to take firm action to protect its territory and sovereignty if necessary. "This extension is well within Singapore Territorial Waters and tracks the eastern boundary of the 1999 Johor Bahru Port Limits," Transport Minister Khaw Boon Wan said in a prepared statement at a press conference. He explained that Malaysia had unilaterally drawn and published the territorial water it claims in 1979. This included its claim on Pedra Branca as well as areas at the eastern and western approaches to Singapore. Mr Khaw said the boundary lines Malaysia claimed at the western approach to Singapore have intruded into the Republic's port limits. Singapore has protested to Malaysia to reject its claim on Pedra Branca and stated categorically that these new boundary lines violated Singapore's sovereignty and were unacceptable.


MAS unveils S$30m grant to bolster cybersecurity

The Monetary Authority of Singapore (MAS) launched a S$30 million Cybersecurity Capabilities Grant to raise the cybersecurity capabilities of the financial sector and help financial institutions develop local talent in cybersecurity. Funded under the Financial Sector Technology and Innovation Scheme (FSTI), the grant will support the development of advanced cybersecurity functions within financial institutions. MAS will co-fund up to 50 per cent of qualifying expenses, capped at S$3 million, for financial institutions to establish their global or regional cybersecurity centres of excellence in Singapore, and financial institutions with key global or regional cybersecurity functions and operations in the Republic to expand and deepen their cybersecurity capabilities locally. It will also encourage Singapore-based financial institutions to upskill their local workforce through cybersecurity-related training programmes. This will help attract more cybersecurity professionals and expand the local talent pool in the financial sector.


Singapore is Asia's second most costly city for rich Asians:

Julius Baer report Boosted by a stronger Singapore dollar and costlier luxury goods and services overall, the Republic is now Asia's second most expensive city for luxury living, up from third place last year. This finding came from private bank Julius Baer's latest wealth report, which tracks luxury spending by Asia's high-net-worth individuals, defined as those with net investable wealth of US$1 million or more, excluding the property that is their main residence. Singapore is also Asia's third most expensive city to secure a luxury property. Julius Baer said that the demand for luxury homes in Singapore is being driven by foreigners, especially those from China, Malaysia and Indonesia, as is the case in Hong Kong and Shanghai. But for the global elite, luxury homes in Singapore still remain "relatively more affordable than in cities like Hong Kong or New York for a similar, if not higher, standard of living". In contrast, Kuala Lumpur remains Asia's cheapest city for luxury goods and services, particularly residential property, hotel accommodation, wine, jewellery, pianos and cars, compared to other Asian cities.

Cabinet reshuffle to take place after Budget 2019: PM Lee

Changes to the Cabinet to put younger ministers in key posts will be announced sometime after the Budget debate next year. Prime Minister Lee Hsien Loong indicated this timeframe for a reshuffle in an interview with Singapore media in Argentina, where he was attending the Group of 20 leaders' summit. The Budget debate ends in March, and Mr Lee hinted that the changes could be made in April or May. But for the leadership transition to the fourth generation (4G) team to go according to plan, the People's Action Party (PAP) must first win the next general election, Mr Lee added. Finance Minister Heng Swee Keat is expected to be deputy prime minister, the post which the second and third PMs - Goh Chok Tong and Mr Lee - held while they were earmarked for the top post.


Plan unveiled to help the media industry become digital-ready

Small-and-medium-sized enterprises (SMEs) as well as professionals in the media industry can now access a step-by-step guide to see how they can develop their digital capabilities and get advice on how to thrive in the digital economy. The Media Industry Digital Plan (IDP) was announced by Sim Ann, Senior Minister of State, Ministry of Communications and Information, and Ministry of Culture, Community and Youth, at the opening ceremony of the Asia TV Forum & Market (ATF) and ScreenSingapore at Marina Bay Sands Expo and Convention Centre. She said that the plan was created as the media environment continues to "evolve at a fast pace". She said: "We recognise the need for stronger, more agile companies and more higher skilled professionals to seize opportunities in Asia and beyond. Not only must we build creative skills, which remain important in the media sector, but also digital skills, so our media SMEs and professionals can thrive in an increasingly digital environment." At the core of this plan is something known as the digital roadmap, which includes a list of solutions to guide media industry SMEs and professionals in their adoption of technology at each stage of their growth. This can start at the basic level of an SME wanting to streamline operations for freelancer contracts and billing management, for example, or moving on to more advanced levels of creating artificial intelligence-enabled content. 


Finance ministers focused on preparing for a downturn: Heng

Finance ministers from the world's 20 largest economies were concerned about the state of financial markets this year, and some of their work at the Group of 20 summit at the weekend focused on preparing for the eventuality of a downturn, said Finance Minister Heng Swee Keat. "We have had a prolonged period of economic upturn. The question is, when is the downturn coming? And how do we prepare for that?" Mr Heng said in an interview with Singapore media after the summit in Argentina, which he attended. Singapore was invited as chairman of Asean this year. Mr Heng said that the finance ministers focused on three major areas, the first of which was short-term risk in the global financial system. The second area of focus was on building a more resilient financial system with "safety nets" on a national, regional and global scale. The third area listed by Mr Heng was developing the financial system to support structural changes in various economies.


SMEs expect lower turnover in 2018; sentiment weighed down by trade war: survey

More small and medium-sized enterprises (SMEs) in Singapore are expecting a decline in turnover this year, citing the challenging business environment as the main culprit for the dampened outlook, weighed down at least partially by the US-China trade war. The 2018 SME Development Survey by DP Info found that 15 per cent of SMEs project revenues to fall this year, up from 11 per cent in 2017, and 12 per cent in 2016. Only two in five SMEs expect turnover growth in 2018. The survey conducted between June and August this year, which was also when the US-China trade spat began in earnest. According to the study, one in five SMEs said that they were affected by the ongoing trade conflict between the US and China. Among those impacted, 54 per cent said that it would affect the competitiveness of exports, while 40 per cent said that it reduces overseas sales. Some 28 per cent of SMEs said that it would affect or delay their internationalisation plans.


Trade war drives companies to review business plans

In the face of trade tensions between the United States and China, members of the American Chamber of Commerce in Singapore (AmCham Singapore) are delaying or cancelling investment plans, looking to other markets, and tweaking supply chains. Helping members cope is the chamber's top priority for 2019, said AmCham Singapore chairman Dwight Hutchins of a survey on the impact of the trade war. Of 179 member firms who responded to the November survey, 68 per cent said they were reviewing their business strategies in response to the trade war. The most common move, taken by half of these firms, was delaying or cancelling investment decisions. Firms are also looking for alternatives, whether by increasing their presence in other markets (40 per cent) or adjusting supply chains by sourcing components or assembly outside China (38 per cent) or outside the US (30 per cent). Some firms are mulling more dramatic moves, with 15 per cent considering relocating some or all of their manufacturing operations out of China, 10 per cent considering a similar move out of the US, and 5 per cent considering exiting China altogether.

S-E Asia GDP growth to slow in 2019 amid trade war: ICAEW

Economic growth across the South-east Asia region is expected to slow in 2019 to 5 per cent, after an estimated 5.3 per cent in 2018, according to the Institute of Chartered Accountants in England and Wales' (ICAEW) latest Economic Insight report on the region. Singapore specifically is expected to experience the sharpest downturn, with gross domestic product (GDP) growth set to moderate from an expected 3.3 per cent in 2018 to 2.5 per cent next year, as US-China tensions and the resulting slowdown in Chinese demand continue to weigh on growth. Many of the region's economies are small open economies heavily dependent on exports, with a high level of exports to China, noted ICAEW. In particular, Malaysia and Vietnam are both highly exposed to China with total exports to China in value-added terms accounting for 10.7 per cent and 10.3 per cent of GDP respectively in 2017. Of this, more than half were to meet Chinese domestic demand. On the other end of the spectrum, Indonesia and the Philippines will be the least affected by the trade tensions. And, while growth is set to ease in Vietnam, Indonesia and the Philippines in 2019, they will still be among the top 10 fastest growing economies globally. 


StanChart to cut Dubai, Singapore jobs

Standard Chartered Plc is cutting jobs in Dubai and key markets including Singapore as it looks to curb expenses, people familiar with the matter said. Some senior roles are included in the cuts, the people said, asking not to be identified because the emerging-markets lender's strategy isn't yet public. As many as 100 positions may be impacted in Dubai although the number hasn't been finalised, two of the people said. The eliminations also include leadership at the firm's priority banking operations, which offer personalised wealth-management services, one of the people said. The staff reduction is coming as Standard Chartered chief executive officer Bill Winters is looking for ways to reignite growth. The bank is weighing a plan to simplify its structure, reduce funding expenses and free up liquidity, people familiar with the matter said earlier last week. 


S'pore factory growth slows for third month

Manufacturing growth slowed for a third consecutive month in November to record its lowest reading since July last year. The key electronics sector marked its first contraction as well after 27 consecutive months of growth, said the Singapore Institute of Purchasing and Materials Management (SIPMM). The overall Purchasing Managers' Index (PMI) dipped 0.4 point from October to 51.5. A reading above 50 indicates growth.

​This was in line with economist expectations, according to an earlier Bloomberg consensus forecast. The lower PMI reading last month was due to slower growth in new orders, new exports, factory output, inventory and employment levels, said SIPMM, which publishes the index based on a survey of over 150 industrial companies. Despite slower growth, the employment index recorded its 15th month of consecutive expansion. 


Global economic recovery will be hit if trade row escalates:

WTO All countries will lose in a global trade war, the head of the world's trade referee warned in a speech. The outcome in all simulations is that trade and economic growth will slow down and that all countries, without exceptions, will lose out in a global trade war, Mr Roberto Azevedo, directorgeneral of the World Trade Organisation said. That is a warning the International Monetary Fund has also issued. Mr Azevedo stressed that most of the job losses are due to technological change, rather than trade. Trade is "an engine of growth, productivity, innovation, job creation", he said.

Private housing supply to be cut

Private housing supply for the first half of next year under the Government Land Sales programme will be cut by nearly 20 per cent, the Ministry of National Development (MND) said. It cited concerns over the large supply pipeline from buoyant collective sales during this cycle, slower demand in the wake of the July property cooling measures and rising global economic uncertainty. MND said it is releasing 6,475 private residential units for the upcoming land sales programme - the lowest supply since the first half of 2007, when 5,475 units were offered. The upcoming supply is 19.5 per cent lower than the 8,040 units released in this year's second half. The ministry said the supply pipeline now stands at 45,000 units. In contrast, developers' demand for land is moderating, and overall transaction volumes have fallen following the cooling measures. 


Variety of choice sites on H1 slate; seven of total 14 sites are new

In all, there are five sites on the confirmed list and nine on the reserve list. Seven of the total 14 sites are new. Some property consultants rate the most attractive plot as the one along Tan Quee Lan Street, on top of the Downtown Line Bugis MRT Station. It was just made available for application on the current-half reserve list but is being transferred to the H1 2019 confirmed list. The move indicates the authorities' desire to build on the rejuvenation momentum in the area - referring to the completion of DUO and South Beach, and the upcoming Guoco Midtown. The Tan Quee Lan site can generate some 580 homes and about 2,000 sq m gross floor area (GFA) of commercial space. Another favourite is a land parcel in one-north Gateway that can yield 170 homes, making it a relatively small and palatable offering. The site is next to one-north Residences. Lee Sze Teck, head of research at Huttons Asia, said the timing of this site's offering is opportune, given that the number of residences in the locale has remained stagnant while the number of professionals working there have been rising over the years. The Canberra Link executive condominium (EC site) is expected to be hotly contested, given the tight supply for this public-private hybrid housing. The site is next to another EC plot that was awarded in September for S$558 psf ppr and attracted nine bids. 


Keen developer interest expected for Bugis GLS sites

Bugis' rejuvenation will deepen with two rare residential Government Land Sales (GLS) sites there launched for sale and analysts believe the area's potential will draw keen developer interest. The location of these two plots within the Central Area also makes them unencumbered from the recently revised development control guidelines, which pare down the maximum number of units allowable for the two other GLS sites launched at Geylang and Dairy Farm.

One of the Bugis sites is on Middle Road and has been launched under the Confirmed List. Spanning about 80,300 sq ft, the site which is zoned residential with commercial at the first storey can yield an estimated 375 homes. Just a stone's throw away is a site on Tan Quee Lan Street, launched under the Reserve List. The site is about 124,100 sq ft, also zoned residential with commercial at the first storey, and can yield about 580 homes. Analysts predict a winning bid of between $1,300 and $1,550 psf ppr for the Middle Road plot.

Builders venture abroad for new income streams, to diversify

Singapore property developers have been diversifying into new markets and business segments in recent years after several rounds of property cooling measures, which have contributed to a tougher operating environment. Following the most recent measures, developers that The Business Times spoke to nonetheless still see Singapore as a core market and will continue to look for opportunities here, in addition to overseas. In July, the government announced a hike in the additional buyer's stamp duty rates and tightened loan-to-value limits on residential property purchases. Meanwhile, the Urban Redevelopment Authority (URA) has revised the guidelines for the maximum allowable dwelling units in private residential developments outside the Central Area to curb the number of shoebox units in new projects. The guidelines kick in from Jan 17, 2019.


OCBC neutral on residential property, predicts -3% to 2% price change in 2019

OCBC analysts are taking a cautious stance on Singapore's residential property sector in 2019 on expectations of low-to-negative growth in private home prices. The brokerage's latest report on the sector projected 2019 price growth to range between -3 per cent and 2 per cent, with an expectation of 10,000 to 12,000 private transaction unit sales next year. OCBC stated that negative demand drivers might outweigh the positives in 2019. Negatives will stem from moderating economic growth, continued impact from property cooling measures and continued tight immigration policies. It noted that Singapore's economy is projected to expand at a pace of 1.5 per cent to 3.5 per cent in 2019, slower than the 3 per cent to 3.5 per cent growth expected in 2018. On the positive front, OCBC said investors can look forward to a stable resident household formation and wage growth, redeployment of proceeds from collective sales and increased pool of demand from Housing and Development Board (HDB) upgraders. It sees a spike in the number of public housing units eligible to be sold in 2019, with approximately 30,200 HDB and Design, Build and Sell Scheme (DBSS) flats reaching their ​minimum occupation period (MOP) next year - significantly higher than the yearly average of 10,900 from 2012 to 2018. 


Teeing off for the last time at Toa Payoh Golf Range

Toa Payoh Golf Range was informed by the authorities that the 2.9ha site has been zoned for residential use. The Toa Payoh Golf Range was built after Haw Par Leisure won its Housing Board tender in 1992. Group Exklusiv took over the lease at the start of the millennium, before it was awarded to Poh Bros in 2008. In recent years, numerous golf courses and ranges have closed, including Raffles Country Club this year and Jurong Country Club last year, as well as driving ranges like Nature Park Driving Range (2015) and Queens Golf Range (2009). In 2014, the Law Ministry said Keppel Club will not be able to renew its lease when it expires in 2021. Marina Bay Golf Course faces a similar fate in 2024, as will Orchid Country Club in 2030. Tanah Merah Country Club and National Service Resort and Country Club (Changi) will be offered new leases, but they will be downsized as parts of the sites will be affected by Changi Airport's expansion plans.

Former Midas chairman's bungalow fetches S$30.8m in mortgagee sale

Some notable bungalow deals have taken place recently in Good Class Bungalow (GCB) Areas as well as in the Sentosa Cove waterfront housing locale. In a deal involving a mortgagee sale, a bungalow along Cluny Road owned by Chen Wei Ping, the former executive chairman of embattled Midas Holdings, is being bought by the family of Philip Ng, chief executive of property group Far East Organization, for S$30.8 million. The price the Ngs are paying in the latest transaction reflects S$1,901 psf on the freehold land area of nearly 16,200 sq ft. This pricing is seen as attractive by analysts, given that the house stands on elevated grounds on a quiet cul-de-sac near the Lermit Road locale within the Cluny Park GCB Area. Other recent transactions in GCB Areas include a property in Bishopsgate which went for S$26 million or S$1,571 psf and another along Cassia Drive (in the Raffles Park GCB Area) that fetched nearly S$18.39 million or S$1,731 psf. There was also a S$22 million or S$1,554 psf deal in Oei Tiong Ham Park. 


Exec flats prop up HDB resale prices in Nov

Resale prices of Housing Board flats rose 0.2 per cent last month after a slight dip in October as the number of transactions fell again. The price rise was most significant for executive flats at 2.5 per cent, while the cost of fourroomers dropped 0.3 per cent and that of five-room units fell 0.5 per cent, from flash estimates. Resale prices of three-room flats remained unchanged although costs in mature estates rose 0.6 per cent, and dropped 0.1 per cent in non-mature areas. Compared with November last year, however, resale prices last month were 1.7 per cent lower. They were also down by 14.1 per cent from a peak in April 2013. The number of resale transactions continued to fall last month, with 1,881 HDB resale flats sold - down from 1,994 in October and 1,999 in September, and lower than the resale volume in November last year as well.


Judge orders condo owner to restore balcony's design

The owner of a condo unit in The Acardia widened the entrance from her living room to her balcony by removing the wall columns and installing sliding doors. The management corporation said it did not give her permission to do so.

The High Court has ordered a condo unit owner to reinstate the original design of the balcony area after ruling that her renovations had breached relevant rules and affected the overall aesthetics of the building's facade. The court, in the rare case, clarified that though the works were carried out within the unit she wholly owns, it did not follow that she fully controls the unit, given that there are community interests. The owner is appealing the decision

Global risks grow but S'pore resilient

Tighter financial conditions and ongoing trade tensions have increased risks to global financial stability even as Singapore's system remains resilient, the Monetary Authority of Singapore (MAS) said. Rising interest rates and pressure on currencies could affect governments, corporates and households, particularly those that have borrowed in foreign currencies, making it harder for them to pay off their debts. But stress tests that MAS has conducted showed that companies, banks and households can withstand external shocks, though they need to guard against weaknesses, said the regulator's Financial Stability Review released. For example, companies should exercise financial prudence and watch out for headwinds though corporate balance sheets have remained broadly stable amid a supportive operating environment.


Business groups positive as Heng looks set to be fourth PM

Armed with a clean bill of health by his doctors and a steely resolve to serve Singapore and its people, Finance Minister Heng Swee Keat said he was "deeply conscious" of the heavy responsibility he is taking on at the ruling People's Action Party (PAP). The 57-year-old was elected as the party's first assistant secretary-general, a powerful post that paves the way for him to become Singapore's fourth prime minister after the next general election (GE). He chaired the session alongside Trade and Industry Minister Chan Chun Sing, whom Mr Heng had earlier asked to be his deputy. Mr Chan, 49, was elected as second assistant secretary-general in the PAP's Central Executive Committee, the party's highest decision-making body. Both men are now on course to become deputy prime ministers when Prime Minister Lee Hsien Loong - who has made known his wish to step down before he turns 70 in 2022 - makes the next round of changes to his Cabinet line-up.


Govt seeks to modernise wholesale industry with digital roadmap

A guide to help SMEs in the wholesale trade on their journey towards more efficient processes has been launched. Called the Wholesale Trade Industry Digital Plan (IDP), the guide comprises a three-stage digital roadmap that charts out the different solutions that wholesale trade SMEs can adopt at each phase of their growth, as well as the relevant training programmes required to enhance employees' digital skill sets. Contributing about 16 per cent of the nation's gross domestic product (GDP) in 2017, the wholesale trade industry is largely burdened by paper-ridden, old-fashioned processes. Within the sector, SMEs account for about 97 per cent of total outfits. Administered by Enterprise Singapore and the Infocomm Media Development Authority (IMDA), the IDP is one of the strategies under the wholesale trade Industry Transformation Map rolled out last year to help more trading companies adopt digital technology and internationalise. According to data from the Department of Statistics, more than 80 per cent of sales in the wholesale trade are derived from overseas markets. Therefore, it is highly influenced by the evolving global trading environment such as the rise of digital business-to-business (B2B) marketplaces and the use of blockchain and artificial intelligence to improve trade processes. 

​Singapore and Argentina to work on economic pacts

Singapore and Argentina will start talks next year on a pact to avoid double taxation, and plan to conclude negotiations on an investment treaty by the first half of next year. Also, a first round of talks on a free trade agreement between Singapore and the South American Customs union Mercosur is scheduled to take place by the first quarter of next year. Argentina is the incoming chair of Mercosur, whose other members are Brazil, Paraguay and Uruguay. The timelines for the agreements were agreed during a breakfast meeting between Prime Minister Lee Hsien Loong and Argentinian President Mauricio Macri. PM Lee, who is on a four-day working visit to Argentina, will attend the G-20 summit in capital Buenos Aires this weekend.


Headline inflation flat at 0.7% in October

Headline inflation was unchanged last month from September as private road transport costs again declined, although pricier electricity and gas are still putting the squeeze on consumers. The consumer price index, which measures cost rises for all items, rose 0.7 per cent in October over the same month last year - the same pace of increase since August this year. This was a hair's breadth beneath the 0.8 per cent forecast in a Bloomberg survey of economists. But core inflation, which strips out housing and private transport costs, rose marginally as the private watchers had predicted, from 1.8 per cent in September to 1.9 per cent last month, according to the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI). 

Singapore's industrial output up a surprise 4.3% in October

Singapore's manufacturing output grew 4.3 per cent year on year in October, more than rebounding from September's marginal 0.1 per cent fall, according to preliminary estimates from the Economic Development Board. Excluding the volatile biomedical manufacturing sector, output grew 3 per cent. Still, economists remain cautious on the manufacturing outlook, despite October's figure exceeding their expectations of 2.6 per cent growth.

On a seasonally adjusted month-on-month basis, October's industrial production also ended a three-month streak of decline by growing 2 per cent, or 3.9 per cent excluding biomedical manufacturing. With overall manufacturing output having grown 7.5 per cent year on year for the first 10 months of 2018, it is expected to grow 7 per cent in 2018 even if the sector slowdowns in the final months.


Service sector revenue rises across the board - up 8% in Q3

Revenue grew across the board in the service sector in the third quarter. Turnover was up 8 per cent in the three months to Sept 30 over the same period last year, and a smidgen up on the revised growth figure of 7.7 per cent in the second quarter. Growth was led by the information and communications services industry, with revenue up 11.3 per cent on higher receipts from computer programming and consultancy firms, as well as activities such as Web hosting and Web portal services. Financial and insurance services notched up 10.6 per cent revenue growth, beating the previous quarter's 10.4 per cent increase, while turnover in education services raked in 4.5 per cent more than the second quarter and a smart 9.7 per cent increase over the same period last year. Business services - which include real estate, legal and accounting work, travel agencies and security - posted 6.3 per cent growth, slower than the previous quarter's 7.6 per cent improvement.


2019's hottest Singapore jobs are analytics, data-driven roles

Singapore hiring is likely to see stable growth in 2019, with top jobs in demand to be analytical and data-driven in nature, according to the latest annual salary survey by recruitment firm Robert Walters. These include data scientists, product management, user experience (UX) designers, and digital roles, with cybersecurity to remain a major focus, in the wake of recent high-profile cyberattacks in Singapore. The report also found that job movers in Singapore can expect pay increments of 5 to15 per cent in 2019, and larger hikes can be expected for candidates with specialised skillsets in IT, digital and financial services. Among employers, HR professionals with strong experience in HR technologies, as well as talent acquisition professionals for the technology sector will be sought after. Hiring levels for jobs in financial services will also remain positive, with a continued focus on technical and commercial skillsets. Demand will be high for skilled contracting professionals, trade finance professionals in corporate banking, investment and research analysts, and IT professionals in the financial services sector. In addition, sales and marketing professionals with big data, digital, e-commerce and transformation experience will be in increasing demand as companies continue their digitalisation efforts. 


More Singaporeans employed; saw faster pay gains in 2018

A greater share of younger and older Singapore residents were employed in 2018, and the average full-time worker enjoyed faster income growth, with the labour market improving as economic growth picked up. The unemployment rates for resident workers, both professionals, managers, executives and technicians (PMETs), and non-PMETs, also dipped slightly as at June this year, compared with the same period last year. The positive labour market outcomes this year were in line with good economic growth, said the Ministry of Manpower (MOM. The unemployment rate for PMETs was 2.9 per cent in June, compared with 3 per cent a year earlier. For non-PMETs, the rate was 4 per cent, down from 4.5 per cent. The real median gross monthly income of residents in full-time jobs grew by an average of 3.5 per cent per year from 2013 to 2018, taking preliminary inflation figures into account for this year. The median income was S$4,437 this year, including employer contributions to the Central Provident Fund, up from S$4,232 last year. 

Singapore's real estate investment market is No 2 in Asia-Pac: report

Singapore's real estate investment market has been ranked second in the Asia Pacific region in a real estate forecast jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC). This is due to a large number of major office deals in the last 12 months, with domestic investors being the biggest buyers, ULI and PwC said in a joint statement. The forecast report titled "Emerging Trends in Real Estate Asia Pacific 2019" listed the top five Asia Pacific markets for investment and development in 2019 as Melbourne, Singapore, Sydney, Tokyo and Osaka. It also indicated that Singapore continues to rebound from cyclical lows of a couple of years ago, as it climbed to second place from third last year. Office rents have risen strongly due to a lack of supply and revived tenant demand, while coworking and other flexible office space operators are now among the biggest lessors of office space.


More Singaporeans employed; saw faster pay gains in 2018

A greater share of younger and older Singapore residents were employed in 2018, and the average full-time worker enjoyed faster income growth, with the labour market improving as economic growth picked up. The unemployment rates for resident workers, both professionals, managers, executives and technicians (PMETs), and non-PMETs, also dipped slightly as at June this year, compared with the same period last year. The positive labour market outcomes this year were in line with good economic growth, said the Ministry of Manpower (MOM. The unemployment rate for PMETs was 2.9 per cent in June, compared with 3 per cent a year earlier. For non-PMETs, the rate was 4 per cent, down from 4.5 per cent. The real median gross monthly income of residents in full-time jobs grew by an average of 3.5 per cent per year from 2013 to 2018, taking preliminary inflation figures into account for this year. The median income was S$4,437 this year, including employer contributions to the Central Provident Fund, up from S$4,232 last year.


Newly-minted en bloc millionaires offer rich pickings for banks

Banks have been homing in on residents who have sold homes through an en bloc sale, a property transaction process which is throwing up a uniquely Singapore species of freshly minted millionaires who are collectively worth billions of dollars. 11 United Overseas Bank bankers descended on the residents of Dunearn Gardens as they got their cheques for the sale of the 114-unit freehold residential development located off Newton Road. Marketing to en bloc sellers is usually done at the invitation of the MCST, or the Management Corporation Strata Title, the managing body of the condo, one banker said. Other banks which have reached out to en bloc sellers include OCBC, DBS Bank and Citi.


Goodluck Garden gets court's nod for sale despite missteps by committee, advisers

The High Court granted a sale order to Goodluck Garden, making it the latest property to have its collective sale resolved by the courts, though the court also found several missteps in the sale process. Justice Woo Bih Li also found that the conduct of the collective sale committee (CSC), marketing agent and the lawyers for the CSC Rajah & Tann was "wanting in various respects". Still, after considering all the facts, Justice Woo said that he found "no bad faith after taking into account the sale price", which was some 12.6 per cent higher than the independent valuation. He also said that the valuation of the property at S$542 million, was not flawed; whereas a belated S$637 million valuation - which objectors relied on - was. The latter valuation had assumed a higher gross plot ratio than the one used in the Master Plan. One major area of dispute was that of the development charge (DC). The marketing agent had provided various DC estimates from S$48.4 million to S$63.19 million to the owners, and had advised owners that DC rates could increase from March 1.

​The marketing agent and the CSC launched the collective sale without yet getting an official response from the Urban Redevelopment Authority (URA) about the actual amount of DC; but a little more than a week before the tender closing date on March 7, they were officially informed that there would be no DC. Justice Woo said that the results of the DC verification was "material" to potential bidders, and for the purposes of determining the reserve price. The CSC and marketing agent should have been more careful about the possibility that the DC might be materially different, he said. Justice Woo said that the CSC should have extended the tender by at least a week to give more time to spread this information. The CSC should also have informed and consulted owners and let them have their say as to what to do next, Justice Woo said.

​Justice Woo also said that the apportionment of sale proceeds and of the terms and conditions of the collective sale agreement (CSA) should have been approved at a general meeting of the management corporation, and through "overt means" such as voting. Rajah & Tann had advised the CSC that it was enough for those owners who were in agreement to sign the CSA after the meeting, which Justice Woo said was wrong advice as it was in conflict with the Land Strata Titles Act. It is not yet known if the objectors will appeal.

Phoenix Road shops and apartments to sell en bloc for $42m

A row of apartments with commercial shops in Phoenix Road, Bukit Panjang will be put up for collective sale via public tender tomorrow for $42 million. It marks the first time the owners are embarking on a collective sale. The asking price translates to a land rate of $617 psf ppr, or to $566 psf ppr after factoring in the 7 per cent bonus balcony gross floor area. No development charge is payable. The property sits on a 5,853.1 sq m site and comprises a row of 36 units, with 24 apartments and 12 commercial shops spread over two three-storey blocks. The site has a 99-year leasehold tenure with effect from Jan 1, 1969. Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned residential and has a gross plot ratio of 1.4. Subject to relevant approvals, the site can be redeveloped to offer 84 residential units, with an average size of 950 sq ft (88 sq m) each.


Beauty World Plaza up for tender with $165m reserve price

​The owners of Beauty World Plaza are putting up the retail and residential development for tender with a reserve price of $165 million, said its marketing agent. The 2,305.6 sq m site in Upper Bukit Timah comprises a single block with 61 retail and 30 residential units. Under the Urban Redevelopment Authority's (URA) Master Plan 2014, the site is zoned "commercial and residential" with a gross plot ratio of three times the site area. With no development charge payable, the land rate works out to $2,189 psf ppr based on a maximum permissible gross floor area of 7,001.38 sq m. An outline application for the change of use of the residential component to serviced apartments has been submitted to URA. The freehold property at 110 to 122 Upper Bukit Timah Road was built in the late 1980s and comprises seven apartments and seven shops. The tender for Beauty World Plaza will close on Jan 30 at 3pm.


Completed condo, private apartment prices fall 0.6% in Oct

Prices of completed private apartments and condominiums in Singapore fell further by 0.6 per cent in October from the previous month, accelerating from a 0.2 per cent month-on-month decline in September. This is according to the National University of Singapore's flash estimates for Singapore Residential Price Index (SRPI), which tracks prices of completed non-landed private homes. October's decline was driven by a 0.9 per cent drop in prices for apartments in the non-central region, excluding small units, versus a 0.3 per cent fall in the previous month. Prices of apartments in the central region, excluding small units, also fell more steeply - by 0.3 per cent in October, compared with a 0.1 per cent decline in September. However, prices of small units, which are defined as being no bigger than 506 sq ft, rose 0.3 per cent last month, after falling 0.3 per cent in the previous month. 


Coming soon: A one-stop app for HDB residents

Residents will soon have a mobile device application that allows them to make appointments with banks or clinics in Housing Board estates or apply to use public spaces such as void decks. It will even prompt them when shops nearby are having promotions. While the beta version that will be released by the first quarter of next year contains only a digital directory of commercial shops, the app will have more features adapted to residents' needs by the year end. It is part of a tie-up between the HDB, StarHub and tech start-up Sentient, and is the first app in a planned "digital ecosystem" to use smart technologies and data analytics to create services that benefit residents.

YTL launching freehold condo in Orchard Boulevard

Malaysia-based property developer YTL Land & Development (YTL Land) will launch a 77-unit freehold condominium in Orchard Boulevard, with 53 apartments to be released for sale on Saturday. Located at 3 Orchard Boulevard, 3 Orchard By-The-Park will have an average selling price of S$3,400 per sq ft, depending on the size of the unit.

The condominium - envisioned by its Italian architect and designer Antonio Citterio as "villas in the sky" - is a short walk to the Botanic Gardens, and within the enclave of the Orchard Road shopping belt and amenities such as the Camden Medical Centre. 3 Orchard By-The-Park is YTL Land's third luxury residence collection in Singapore and Mr Citterio's first residential development in South-east Asia. The condominium features two-, three- and four-bedrooom apartments, with two five-bedroom penthouses in three towers named "Wood", "Wilderness" and "Water", YTL Land said. For this Saturday's launch, 30 apartments from the "Wood" Tower and 23 apartments from the "Wilderness" Tower will be released for sale. This comprises a mixture of 14 two-bedroom, 22 three-bedroom, 15 four-bedroom, one double storey garden suite with four bedrooms, as well as one five-bedroom penthouse on the top floor.


Shaw Tower alerts tenants it may be redeveloped

Shaw Tower at 100 Beach Road is the latest in a string of post-independence landmarks that could undergo redevelopment, following the advance notice its 150 tenants have been given to relocate elsewhere on or before June 30, 2020. According to an update to tenants seen by The Straits Times, the property's management said it has appointed a project team to undertake a study to "evaluate the most scalable-cum-feasible option for the building". Owned and managed by Shaw Towers Realty, Shaw Tower comprises a 35-storey office/retail block with 260,000 sq ft of office space and 100,000 sq ft of retail space. According to an analyst, the property is "a prime site for redevelopment". "Sandwiched between GuocoLand's Guoco Midtown and the South Beach project by City Developments and IOI Properties, if Shaw Tower were to be redeveloped, then the entire area will be re-gentrified”, he said.