Weekly News Select Aug 7, 2020 / Issue 32 Top News for the Week • Prices of toniest flats slipping, but they're not exactly a steal yet • Borrowers in jobs at risk face tighter processing for new home loans • HDB resale volume surges in July; prices inch up • PM to deliver televised National Day message on Aug 9 • Foreign worker levy waiver, rebates to be extended • Most building projects to resume by end of next month amid new protocols • Crucial to revive air travel and preserve S'pore's hub status • RTS Link to boost Singapore-Johor investments • Grim business outlook extends to year-end: surveys • S'pore factory activity expands in July after 5 months of contraction • Singapore's visitor arrivals in June sink to 2,200 from 1.6m a year ago • Online retail sales spike points to sustained structural shift Residential Prices of toniest flats slipping, but they're not exactly a steal yet For those coveting Singapore's swankiest homes, prices of some may have come off but they're still far from bargain basement levels. In the posh home segment, prices of new sale or new launches have fallen while resale seems to be resilient. Going by the URA Property Price Index which includes new and resales, CCR private home prices have risen by 0.4 per cent in 1H 2020 from end-2019 and is now 4.7 per cent below the all-time peak in Q1 2013. For those with smaller budgets, there is little to cheer as prices in the more affordable rest of central region (RCR) and outside central region (OCR) have even risen as remote working becomes more prevalent and the decentralisation of economic city centres gains momentum. Link to the story: https://www.businesstimes.com.sg/real-estate/prices-of-toniest-flats-slipping-but-theyre-not-exactly-a-steal-yet Borrowers in jobs at risk face tighter processing for new home loans Home buyers are reportedly facing tighter credit assessment when they apply for mortgages - especially if they work in sectors that have been severely affected by Covid-19. On the other hand, for existing borrowers hoping to re-finance to cheaper home loans, banks are supportive and are easing the debt servicing criteria. Those earning variable income in industries which have been badly hit by the pandemic such as in the food and beverage and hospitality businesses have seen a higher "haircut" applied to their incomes when applying for a home loan. Banks say they are prudent in their credit assessment of home loan applicants while keeping within guidelines. 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 Aug 7, 2020 / Issue 32 Link to the story: https://www.businesstimes.com.sg/banking-finance/borrowers-in-jobs-at-risk-face-tighter-processing-for-new- home-loans HDB resale volume surges in July; prices inch up The number of Housing and Development Board (HDB) flat resale transactions continued to remain high in July with prices creeping up, according to flash data released by a real estate portal. An estimated 2,470 HDB resale flats were sold last month, a 0.7 per cent increase from June when 2,453 units were sold. July's sales estimates are the highest monthly sales in two years since July 2018, when 2,553 units were transacted. The two months of high sales came after exceptionally low numbers of 423 and 364 flats sold in April and May respectively, during the circuit breaker period that lasted from April 7 to June 1. The latest estimates showed HDB resale prices had increased 0.4 per cent in July 2020 compared with June 2020, with the resale price index at 132.9 in July, up from 132.3 in June. Links to the story: https://www.businesstimes.com.sg/real-estate/hdb-resale-volume-surges-in-july-prices-inch-up https://www.straitstimes.com/singapore/hdb-resale-volume-in-july-highest-in-two-years-prices-also-up Home owners doing renovations face delays and increase in costs Home renovation costs have increased by 10 to 20 per cent industry-wide in recent weeks, compared with pre-Covid-19 days, according to contractors and ID companies interviewed by The Straits Times. This comes even as more home renovation projects have been given the green light by the Building and Construction Authority to resume works. BCA told The Straits Times that around 60,000 renovation projects have been approved, including 24,000 residential projects that were previously suspended. Companies are now pinning their hopes on the resumption of cross-border travel between Singapore and Malaysia, for which applications will kick off on Aug 10. Link to the story: https://www.straitstimes.com/singapore/housing/home-owners-doing-renovations-face-delays-and-increase-in-costs Commercial JustCo to open two co-working centres in Singapore JustCo's new co-working centres at OCBC Centre East and The Centrepoint will be able to house over 2,000 members when they open in August and October respectively. The company said global enterprises L'Oreal, Riot Games and foodpanda will have about 300 employees at these new flexible workspaces. Game developer Riot Games and food delivery firm foodpanda are existing clients. 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 Aug 7, 2020 / Issue 32 New client L'Oreal will be housing its Asia-Pacific team for the travel retail business at OCBC Centre East in the second half of 2020 to accommodate its growing team in Singapore. With the two new centres, JustCo now operates 42 centres across seven countries, including a centre in Melbourne opening in Q3. It currently has over 25,000 members across the Asia-Pacific. Links to the story: https://www.businesstimes.com.sg/real-estate/justco-to-open-two-co-working-centres-in-singapore https://www.straitstimes.com/business/companies-markets/justco-opening-2-more-workspaces-in-spore Retail Cloud kitchen to offer jobs to vulnerable groups, help food heritage brands survive Singapore's first social enterprise cloud kitchen will provide jobs for vulnerable groups while helping food heritage brands to survive during the pandemic. Its flagship central kitchen will start operations tomorrow, taking over the Y Cafe space at the YMCA in Orchard Road. Its Project SG Makan initiative brings nine food and beverage (F&B) companies together to sell delivery-only and/or takeaway meals from the cloud kitchen. These F&B partners - including Ming Fa Fishball, Gim's Heritage, and Boufe Boutique Cafe - will hire and train persons from low-income families, single mothers, persons with disabilities and their caregivers and family members. Social service agencies will offer employment support services. The Social Kitchen plans to open 50 kitchens across Singapore. Link to the story: https://www.straitstimes.com/singapore/cloud-kitchen-to-offer-jobs-to-vulnerable-groups-help-food-heritage- brands-survive Government PM to deliver televised National Day message on Aug 9 Prime Minister Lee Hsien Loong will be addressing the country in a televised message on National Day. His message at 10am in English will be aired on Channel NewsAsia, Channel 5 and CNA938 before the broadcast of the Padang parade, which is set to begin at 10.15am. Concurrently, the National Day message will be delivered in Mandarin by Deputy Prime Minister Heng Swee Keat on Channel 8, Channel U and Capital 958. Mr Heng is also Coordinating Minister for Economic Policies and Finance Minister. Mr Masagos Zulkifli, Social and Family Development Minister and Minister-in-charge of Muslim Affairs, will deliver the message in Malay on Suria and Warna 974, while Minister for Communications and Information S. Iswaran will deliver the message in Tamil on Vasantham and Oli 968. 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 Aug 7, 2020 / Issue 32 Messages in all four languages will be available on the Prime Minister's Office's website and YouTube channel after the broadcasts. Link to the story: https://www.straitstimes.com/singapore/pm-to-deliver-televised-national-day-message-on-aug-9 Foreign worker levy waiver, rebates to be extended Firms in the construction, marine shipyard and process sectors badly hit by the coronavirus crisis will get more help to defray their labour costs, with the Government waiving more months of the foreign worker levy and giving more levy rebates. The Ministry of Manpower (MOM), announcing the extension of the support schemes, said that $320 million will be set aside to cover the rebates. This increased support is in addition to the $1.36 billion Construction Support Package announced on June 27, and comes as the Government works to clear all foreign worker dormitories of the coronavirus by Aug 7 so that workers can progressively return to work. Links to the story: https://www.straitstimes.com/politics/foreign-worker-levy-waiver-rebates-to-be-extended https://www.straitstimes.com/singapore/manpower/firms-welcome-help-but-say-they-must-restart-work-soon Clients can part with labour suppliers who don't split subsidies Clients of some labour supply firms which do not pass on the savings from Budget wage subsidies can look into backing out of contracts, according to the Ministry of Finance (MOF) and Ministry of Manpower (MOM).