Weekly News Select Oct 9, 2020 / Issue 41
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Weekly News Select Oct 9, 2020 / Issue 41 Top News for the Week • Government relief measures for developers hit by construction disruptions • Grade A office leasing in Singapore still sluggish in Q3 amid work-from-home trend • Heng unveils extensions to support schemes, new economic strategy • Plans for 3rd phase of reopening to be revealed in weeks • Social, dining group size: 5-person cap may be reviewed • Targeted credit relief measures unveiled for SMEs, individuals • Singapore plans Air Travel Bubbles for general travellers to revive Changi air hub • Optimism in Singapore manufacturing hints at recovery • Singapore retail sales down 5.7% in August • August unemployment rate hits decade-high; worst is not over • Retrenchments hit 4.9 per 1,000 local employees in H1 • Scaled-down Orchard Road Christmas light-up to bank on domestic shoppers • Changi falls from 7th to 58th on the world's busiest airport list • Lim Chu Kang set for makeover into high-tech agri-food cluster Residential Government relief measures for developers hit by construction disruptions Eligible property developers hit by disruptions to construction timelines due to Covid-19 can take up a set of additional temporary relief measures with immediate effect, the government said. Market watchers The Business Times spoke to said that these measures will cushion the impact of the slow resumption of work and the disruptive nature of the pandemic. The additional relief measures are: • A further six-month extension of the project completion period (PCP) for residential, commercial and industrial development projects; • A further six-month extension for the completion of residential development projects in relation to the remission of the Additional Buyer's Stamp Duty (ABSD) for housing developers; • An extension of the PCP by up to six months for residential development projects under the Qualifying Certificate (QC) regime for foreign housing developers. The latest measures are on top of those announced on May 6. Links to the story: https://www.businesstimes.com.sg/government-economy/government-relief-measures-for-developers-hit-by- construction-disruptions https://www.straitstimes.com/business/additional-relief-for-property-developers-affected-by-pandemic Good class bungalow in Lornie Road up for sale at $27 million A good class bungalow in Caldecott Hill Estate has gone on the market for $27 million. The sale is being carried out on behalf of the trustees of the estate. 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 Weekly News Select Oct 9, 2020 / Issue 41 The freehold property at 204 Lornie Road in District 11 sits on a land area of 2,347.6 sq m (25,270 sq ft) and is a 10-minute walk from the Upper Thomson neighbourhood and its restaurants and cafes. The expression of interest exercise for 204 Lornie Road closes at 3pm on Nov 11. Link to the story: https://www.straitstimes.com/business/property/good-class-bungalow-in-lornie-road-up-for-sale-at-27-million Bigger is better for Singapore home buyers Home owners are trading up, spurred to take that plunge of a bigger financial committment by the work from home trend which has led to a surge in sales of large condos. These are defined as more than 1,200 sq ft in size. The most popular large units are in the 1,200 - 1,400 sq ft size as these are more affordable compared to even bigger ones. Overall, in August, 582 condos of over 1,200 sq ft were sold, up 22.5 per cent from July's 475, and 44.4 per cent from August 2019. The 582 sales comprised 127 units in the expensive core central region, 274 in the rest of central region and 181 in the more affordable outside central region. The number is also a 27-month high (751 units in May 2018) and above the two-year average of 338 units (September 2018-August 2020). Rising prices did not deter buyers from upsizing. In July-August 2020, the median unit price of large units was S$1,319 per sq ft, 3.5 per cent higher than the same period in 2019 and 29.2 per cent higher than the same period five years ago. Link to the story: https://www.businesstimes.com.sg/real-estate/bigger-is-better-for-singapore-home-buyers HDB resale prices rise for third consecutive month in September Prices of Housing Board (HDB) resale flats increased for the third consecutive month in September, with demand remaining elevated after the nearly two-month-long circuit breaker period. HDB resale prices rose by 0.8 per cent in September compared with August, and was 3.1 per cent higher than the previous year. However, they are still 11.4 per cent lower than their peak in April 2013. In all, 2,489 HDB resale flats changed hands in September, a 2.2 per cent increase from August, flash estimates from a real estate portal. Links to the story: https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-rise-for-third-consecutive-month-in-september-srx https://www.straitstimes.com/business/property/hdb-resale-prices-rise-for-3rd-month Designing smart, sustainable HDB homes for the future Smart-enabled homes with built-in smart power sockets and sensor-equipped lights in common areas are some new features residents in the upcoming Punggol Northshore district can look forward to. 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 Weekly News Select Oct 9, 2020 / Issue 41 Owners of these smart homes will be able to control just about any appliance that is connected to a power source - fans, lights and coffee machine - through a mobile application. Within the estate, smart lighting will rely on sensors to automatically dim and brighten based on human traffic, which saves energy in the long run. These features will also be found in new flats in the upcoming "forest town" of Tengah, the first of which are due to be completed in end-2022. Link to the story: https://www.straitstimes.com/singapore/housing/designing-smart-sustainable-hdb-homes-for-the-future Commercial Grade A office leasing in Singapore still sluggish in Q3 amid work-from-home trend Leasing activity for Grade A offices in Singapore came to a halt during the "circuit breaker" period and remained sluggish during the third quarter this year. In the face of business uncertainty, tenants with immediate lease expiries are seeking short-term renewals. And with office space under-utilised as work from home (WFH) remains the default, firms are conducting workplace strategy studies to determine their future office needs. Nonetheless, some vacated spaces are being taken up by other occupiers who are "seizing the opportunity to lease prime space at more attractive rental rates". Amid the worst recession on record, Grade A central business district (CBD) rents continued to decline by 5.1 per cent quarter on quarter to S$9.84 per sq ft per month in Q3 - in line with weak market sentiment. The office sector will also be reshaped by the increase in the remote-working trend due to structural impacts, which will affect leasing demand in the next 12 to 18 months. Links to the story: https://www.businesstimes.com.sg/real-estate/grade-a-office-leasing-in-singapore-still-sluggish-in-q3-amid-work- from-home-trend https://www.straitstimes.com/business/property/singapore-office-rents-drop-in-q3-as-tenants-seek-short-term- renewals Flexible workspaces, tech giants are bright spots for Singapore office demand The expected demand for more flexible workspaces and a ramp-up of operations by tech giants could help to cushion the softness in office leasing demand in Singapore. This comes amid the year-to-date decline of 3.4 per cent in Central Business District (CBD) Grade A office rents and further weakness expected in Q4 2020. In particular, CBD Grade A gross effective rents continued to moderate further by 2.3 per cent quarter on quarter to S$9.77 per sq ft per month (psf pm) in Q3 2020. Meanwhile, CBD Grade B rents slipped 2.4 per cent to S$8.09 psf pm in Q3 as compared with the previous quarter. 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 Weekly News Select Oct 9, 2020 / Issue 41 Links to the story: https://www.businesstimes.com.sg/real-estate/flexible-workspaces-tech-giants-are-bright-spots-for-singapore-office- demand Retail Japanese tempura chain Tenya opens outlet in Orchard Central Get your fix of tendon (tempura on rice) when the popular Japanese chain Tempura Tendon Tenya makes its debut on Oct 15 at Orchard Central. The brand is best known for its value-for-money rice bowls. At $8.50, its signature Tenya Tendon features tempura black tiger prawn, red fish, tender squid, Japanese pumpkin and French beans - drizzled with a savoury glazing sauce made of soya sauce and grilled eel essence. The Seafood Tendon ($12.90) includes anago (saltwater eel), scallop, tempura black tiger prawn, Japanese pumpkin and French beans. The menu also offers an array of tendon or tempura served with either soba or udon (hot or cold, from $11.90). It also offers add-ons such as tori karaage ($4.90) and truffle fries ($3.90).