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Weekly News Review
                                                                                                 Dec 20 2019 / Issue 51

Top News for the Week
        •    Modest economic recovery expected for Singapore in 2020
        •    Modest private home price growth expected in Singapore
        •    New private home sales rebound in Nov
        •    More BTO launches in 2020 to meet additional demand

Residential
Modest private home price growth expected in Singapore
Singapore’s private housing market is poised for modest price growth next year, amid a resilient
leasing market. However, developers are expected to continue being challenged by the significant
supply of unsold private housing units in the pipeline although, by some estimates, the oversupply
could ease by the end of 2021.
Data from the Urban Redevelopment Authority (URA) shows that as at the end of the third quarter
of this year, there were 31,948 unsold units in uncompleted private housing projects with planning
approvals - down from the most recent high of 36,839 at end-Q1 this year. Assuming that
developers continue to sell about 9,000 private homes on average per year, take-up will total
around 18,000 units in the next two years (2020 and 2021). Land supply from the confirmed list
of the Government Land Sales (GLS) Programme, on the other hand, is assumed to be about 3,000
private homes annually - or 6,000 units over the two years.
The higher take-up numbers against the GLS supply will result in a net reduction of around 12,000
units from the pool of unsold, uncompleted private homes.
If the GLS continues to be conservative and outstripped by primary-market sales, we could see the
figure fall to under 20,000 units by end-2021, potentially setting the stage for a market recovery.
For 2020, analysts are expecting a price increase of between 2-4 per cent.

Link to the story:
https://www.businesstimes.com.sg/real-estate/modest-private-home-price-growth-expected-in-singapore

Singapore private home prices to rise 2% in 2020, 2021: Fitch Ratings
Prices of private homes in Singapore are expected to show modest growth over the next two years,
rising by about 2 per cent in both 2020 and 2021, down from nearly 8 per cent in 2018. This is
according to the Fitch Ratings' Global Housing and Mortgage Outlook 2020 report.
It said improving borrower affordability, as household incomes grow faster than home prices, as
well as lower interest rates will also contribute to rising property prices. But Fitch added: "If the
government views home prices as rising more than is justified by economic fundamentals, we
expect that the government would again cool the market through macro-prudential measures."

Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-private-home-prices-to-rise-2-in-2020-2021-fitch-ratings
https://www.straitstimes.com/business/property/private-home-prices-set-to-grow-2-fitch

                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 Review
                                                                                                Dec 20 2019 / Issue 51

New private home sales rebound in Nov
Sales of new private homes picked up strongly last month despite the start of the year-end holiday
period and amid a property glut, data showed.
Developers sold 1,147 units last month - excluding executive condominiums (ECs) - 23.2 per cent
more than in October but 4.5 per cent fewer than in November last year.
If ECs were included, 1,168 units were sold last month, a 21.9 per cent increase from October but
3 per cent lower than a year ago, the Urban Redevelopment Authority (URA) data noted.
Developers launched 740 private homes for sale last month, down 17 per cent from October and
44.9 per cent fewer than the 1,342 in November last year. There were no ECs launched last month.
Last month's take-up was led by projects in suburban areas, known as outside central region, with
608 sales, followed by 351 in the city fringes or rest of central region, and 188 in prime areas or
core central region.

Links to the story:
https://www.straitstimes.com/business/property/new-private-home-sales-rebound-in-nov
https://www.businesstimes.com.sg/infographics/developers-private-home-sales-in-jan-nov-2019-up-102-y-o-y

More BTO launches in 2020 to meet additional demand
Around 16,000 to 17,000 Build-To-Order (BTO) flats will be launched next year to meet additional
demand following key policy changes this year, National Development Minister Lawrence Wong
announced in a blog post.
New flats will be available in Sembawang and Toa Payoh next February. They will also be
launched in Choa Chu Kang, Tengah, Pasir Ris and Tampines next May.
Experts said the increase in flat supply will give home seekers more housing options amid
increased demand.
However, others were more cautious. Huttons Asia director of research Lee Sze Teck said the
expected increase in demand could potentially be met by unsold BTO flats from earlier launches,
which he estimates to be in the "low thousands".
Besides ensuring housing affordability, Mr Wong said the Government is "investing significantly"
in the upgrading of HDB estates and has spent about $3 billion on various upgrading programmes
over the last five years.
The Lease Buyback Scheme (LBS), which helps seniors supplement their retirement income and
age in place, has nearly doubled in take-up rate to around 1,500 households this year.
Mr Wong said the Government is working out the implementation details of the Voluntary Early
Redevelopment Scheme to redevelop older HDB towns. He acknowledged that there is greater
need for the "long-term undertaking" of comprehensive redevelopment and renewal works as HDB
estates get older.

Link to the story:
https://www.straitstimes.com/singapore/housing/more-bto-launches-in-2020-to-meet-additional-demand

               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 Review
Dec 20 2019 / Issue 51

HDB lease top-up proposal has drawbacks: Observers
A policy proposal for a one-time automatic lease top-up for ageing Housing Board flats may
immediately tackle the issue of declining value once the leases of these flats are up, but it comes
with long-term drawbacks, observers said.
Topping the leases of all HDB flats owned by Singapore citizens back up to 99 years once they
are 50 years old would be "a handout that is extremely hard to stop".
Another proposal was that all new Build-To-Order flats be sold to first-time buyers at around
construction cost, with the current five-year minimum occupancy period increased to 15 years.
The proposed model could, in the long run, bring the value of HDB flats down to construction-
cost pricing but this would affect those counting on their flats as retirement assets. About 80 per
cent of Singapore households live in HDB flats.
In a separate report released late last month, the Workers' Party (WP) proposed a Universal Sale
and Lease Back scheme for all HDB home owners who have completed the minimum occupancy
period and paid off at least 80 per cent of their loans.
However this proposal would effectively make the Government "a major landlord".
WP also proposed an alternative scheme to the current Selective En bloc Redevelopment Scheme
(Sers), called Sers Plus, where the Government need not secure a replacement site before launching
Sers.
Under the proposed Sers Plus, affected residents would be guaranteed new flats elsewhere.
Huttons Asia director of research Lee Sze Teck said the Sers Plus model "deserves some looking
at", particularly in mature towns where there is no available land to serve as a proxy site.
"Affected residents have more housing options and the Government can take over (the site) more
quickly and go through the urban renewal process and build better flats in its Smart Nation push,"
he said.

Link to the story:
https://www.straitstimes.com/singapore/housing/hdb-lease-top-up-proposal-has-drawbacks-observers

Govt to consider all ideas on managing leases: Minister
The Government will consider all alternative suggestions and ways to manage the expiring leases
of Housing Board flats, Minister for National Development Lawrence Wong said in a blog post.
Mr Wong was responding to two separate policy proposals published over the last three weeks,
recommending alternative solutions to existing public housing issues.
He noted that both proposals share some common ground, recognising "the need for urban renewal
in our land-scarce city" where "land can be recycled and new flats built for future generations".
He added: "This is the reason why so much of our land is on a leasehold basis, be it for private or
public residential properties.”

Link to the story:
https://www.straitstimes.com/singapore/housing/govt-to-consider-all-ideas-on-managing-leases-minister

Weekly News Review
Dec 20 2019 / Issue 51

Commercial
UOI to buy 146 Robinson Road from UOB for S$52 million
United Overseas Insurance (UOI) plans to buy the office property located at 146 Robinson Road,
also known as Overseas Union Trust Building, from United Overseas Bank (UOB) for S$52
million, it said on Wednesday.
The property will be UOI's first real estate investment and it intends to move its own operations
into the premises.
The 12-storey building, including the basement level, has a gross floor area of approximately
4,631.49 sq m and a leasehold of 99 years from June 3, 1992.
The transaction is expected to be completed by Feb 28, 2020.

Link to the story:
https://www.businesstimes.com.sg/real-estate/uoi-to-buy-146-robinson-road-from-uob-for-s52-million

Colliers extends deadline for The Arcade's S$780m collective sale
The tender submission date for the en bloc sale of The Arcade in Raffles Place has been extended
by two months till March 5, 2020, at 3pm.
This is because developers had asked for more time to assess the site, the marketing agent said.
The original deadline was Jan 8, 2020.
Meanwhile, the land rate for the site has been increased after receiving the verified gross floor area
(GFA) from the Urban Redevelopment Authority (URA). The reserve price of S$780 million will
now translate to a land rate of S$2,840 per sq ft per plot ratio (psf ppr), up marginally from the
estimated S$2,833 psf ppr indicated in the tender launch announcement last month.

Links to the story:
https://www.businesstimes.com.sg/real-estate/colliers-extends-deadline-for-the-arcades-s780m-collective-sale
https://www.straitstimes.com/business/property/new-march-deadline-for-the-arcade-collective-sale-tender

International body to galvanise e-sports launched in Singapore
A global governing body for e-sports was launched in Singapore yesterday, hoping to marry the
fast-growing modern sport with Olympic values often tied to traditional ones.
To that end, the Global E-Sports Federation (GEF) will be helmed by Singapore National Olympic
Council secretary-general Chris Chan, who is its president.
One of its three vice-presidents, Ms Charmaine Crooks, represented Canada at the Olympics,
winning a silver medal in 1984 as part of a 4x400m relay team.
The other two vice-presidents are Mr Wei Jizhong, an honorary life vice-president of the Olympic
Council of Asia, and Mr Edward Cheng, vice-president of Chinese technology giant Tencent,
which is also GEF's global founding partner.

Link to the story:
https://www.straitstimes.com/sport/international-body-to-galvanise-e-sports-launched-in-spore

Weekly News Review
Dec 20 2019 / Issue 51

Ad agency Dentsu to cut 11% of staff in 7 markets
Japanese advertising agency Dentsu will lay off 11 per cent of its employees in seven markets,
including Singapore.
Dentsu Singapore hires over 80 employees, according to its website. The firm declined to comment
when contacted.

Link to the story:
https://www.straitstimes.com/business/companies-markets/ad-agency-dentsu-to-cut-11-of-staff-in-7-markets

Retail
Sim Lim Square launches 2nd bid for collective sale with extra space
Singapore gadget central Sim Lim Square has launched its second collective sale tender with a
sweetener for potential developers - an additional 27 per cent of built-up space plus the possibility
of lower development charges.
But the reserve price remains unchanged at more than $1.25 billion. The closing date of the tender
is Dec 30.

Link to the story:
https://www.straitstimes.com/business/property/sim-lim-square-launches-2nd-bid-for-collective-sale-with-extra-
space

Singapore malls evolve to stay relevant despite online shopping threat
Despite the threat from online shopping, it is not all gloom at Singapore's retail scene with some
landlords continuing to invest and upgrade malls.
That is because online shopping - while growing - remains low at just 6.1 per cent of overall retail
sales, going by October's retail sales data released by the Department of Statistics. And the more
savvy landlords have adjusted quickly to the disruptive environment caused by e-commerce and
consumers' rapidly shifting tastes.
The majority of retail sales are still done at physical stores and points to the relevance of brick and
mortar retail. There is also evidence of e-commerce retailers - such as Love, Bonito which has
opened its third and largest store (more than 6,000 sq feet) at Funan - expanding their physical
footprint in malls.
Retail rents in prime areas such as Orchard Road are expected to remain flat while falling further
in secondary locations.

Link to the story:
https://www.businesstimes.com.sg/consumer/singapore-malls-evolve-to-stay-relevant-despite-online-shopping-
threat

Weekly News Review
Dec 20 2019 / Issue 51

Government
MOM concerned over 'stagnating' safety score in construction
The Ministry of Manpower (MOM) on Friday said it is concerned about what it describes as the
stagnating workplace safety performance of the construction industry, after 14 workers died on the
job, the same number as last year.
There is also a worrying trend of workers dying while working on smaller projects, the ministry
added. Of the 14 workers who died last year, three were at worksites for projects contracted for
less than $10 million. There were five deaths this year at such worksites.
The ministry also pointed out that of the 14 deaths so far this year, four occurred last month,
making it the month with the highest number of construction worker deaths this year.
The MOM has stepped up enforcement efforts during the festive period, initiating an operation
that will see it conduct 400 inspections before mid-February.
Link to the story:
https://www.straitstimes.com/singapore/mom-concerned-over-stagnating-safety-score-in-construction

LTA awards final three contracts worth $954m
The Land Transport Authority (LTA) has awarded the final three contracts - worth a combined
$954.1 million - for the upcoming North-South Corridor (NSC).
Work on these contracts is expected to begin early next year.
With these last contracts, all 14 civil contracts to build the NSC have now been awarded, at a value
of about $7.47 billion in total.

Link to the story:
https://www.straitstimes.com/singapore/transport/lta-awards-final-three-contracts-worth-954m

Economy
Modest economic recovery expected for Singapore in 2020
The coming year is expected to bring a modest economic recovery for Singapore, with trade
tensions between the United States and China posing the main risk, say economists.
Manufacturing woes in 2019 were due to trade tensions, high base effects from 2018, and a
slowdown in the global electronics cycle. The latter two, at least, will not apply in 2020.
Trade relations remain "the big risk", with failure to reach a partial deal - and another round of
tariff hikes - set to "derail any hopes of an export recovery".
Apart from manufacturing and trade, tourism is another sector seen as being "on the road to
recovery.
Construction will also continue growing, supported by the expansion of the integrated resorts,
redevelopment of en-bloc residential sites, and major infrastructure projects such as Changi
Terminal 5 and the Tuas Mega Port.

Weekly News Review
Dec 20 2019 / Issue 51

In the latest Monetary Authority of Singapore (MAS) quarterly survey of professional forecasters,
the median forecast was for 1.5 per cent growth in 2020, with the most probable growth range
being 1.5 to 1.9 per cent.

Links to the story:
https://www.businesstimes.com.sg/government-economy/modest-economic-recovery-expected-for-singapore-in-
2020

Food and beverage sector thriving despite retail slump
While the retail landscape has contracted for nine consecutive months since February, weighed
down by weak motor vehicle sales and increasing preference for online shopping, the F&B service
sector has seen year-on-year growth from January to October this year.
The only blip was in February, when it slid 2.2 per cent compared with the previous year.
One expert pointed to tourist arrivals as one reason for strong demand for F&B here.
Visitor arrivals rose 1.3 per cent to 9.3 million in the first half of this year, according to the
Singapore Tourism Board.
Food delivery services have also driven demand in the F&B sector, as they have made it more
convenient for consumers to access different food options.
Link to the story:
https://www.straitstimes.com/business/economy/food-and-beverage-sector-thriving-despite-retail-slump

Singapore NODX falls less in Nov, analysts see signs of recovery
Singapore’s non-oil exports contracted at the slowest pace in November after nine straight months
of decline, leaving analysts hopeful that the worst may be over.
Non-oil domestic exports (NODX) shrank by 5.9 per cent year on year in November, according to
data released by Enterprise Singapore (ESG), outperforming the 6.4 per cent contraction that
private sector economists polled by Bloomberg were expecting. In comparison, NODX slid by
12.5 per cent in October.
November's NODX fell mostly because electronic exports shrank faster than the growth of other
exports, which entered positive territory for the first time since February.
Electronics exports slid by 23.3 per cent year on year, extending October's 16.4 per cent decline,
largely due to a contraction in integrated circuits, personal computers and disk drives, ESG said.
However, most economists believe the electronics sector has bottomed out.
In contrast, non-electronic exports expanded 1.3 per cent year on year, rebounding from October's
11.2 per cent decline. ESG said non-monetary gold, specialised machinery and non-electric
engines and motors contributed the most to the growth.

Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-nodx-falls-less-in-nov-analysts-see-signs-of-
recovery
https://www.straitstimes.com/business/economy/non-oil-exports-down-for-9th-straight-month-but-drop-less-than-
expected

Weekly News Review
Dec 20 2019 / Issue 51

Singapore holds on to fifth place in global city index, but barely
For the 11th straight year, Singapore was ranked fifth in the Global Power City Index that measures
48 major cities worldwide by their level of "magnetism", released last month by Japanese think-
tank Mori Memorial Foundation.
The index, peer-reviewed by Dr Heng Chye Kiang of the National University of Singapore, covers
six broad categories: economy, research and development, cultural interaction, livability,
environment and accessibility.
These are then broken down and scored using 70 indicators that cover such areas as academic
performance (in which Singapore stood first), attractiveness of dining options (27th) and comfort
level of temperature (48th).
All top 10 cities held on to their positions from last year. London, New York, Tokyo and Paris
were ranked above Singapore, followed by Amsterdam, Seoul, Berlin, Hong Kong and Sydney.
Link to the story:
https://www.straitstimes.com/asia/east-asia/singapore-holds-on-to-fifth-place-in-global-city-index-but-barely

Hospitality
Singapore-based airlines cut flights to HK, offer lower fares
Singapore-based airlines plying the Singapore-Hong Kong route have cut flight frequencies in
response to weaker passenger demand, as a direct result of the ongoing protests in Hong Kong.
Singapore Airlines, Scoot and Jetstar Asia have been making adjustments to their respective flight
operations. With Hong Kong protests now lasting for the seventh month, SIA has cut the number
of daily flights to Hong Kong from seven to six. Scoot said that in recent months it has been
running on average 13 to 15 weekly flights to Hong Kong, from 21 previously. Jetstar Asia said it
has reduced by about one return service per week, from the normal seven weekly flights.
Singapore Airlines declined to provide detailed information on specific routes, only saying that it
has seen a decline in demand for travel to Hong Kong and adjusted its flight capacity accordingly.

Link to the story:
https://www.businesstimes.com.sg/transport/singapore-based-airlines-cut-flights-to-hk-offer-lower-fares

Industrial
Manufacturing firms to get smart tech help in ITE labs
More help is on the horizon for manufacturing companies and workers to transition to Industry
4.0.
A Digital and Advanced Manufacturing Programme to support digitalisation in the sector was
launched by Senior Minister of State for Trade and Industry Koh Poh Koon at the Institute of
Technical Education (ITE) College Central.
The programme was jointly developed by ITE, the Singapore Precision Engineering and
Technology Association (Speta), and the Singapore Industrial Automation Association (SIAA).

Weekly News Review
Dec 20 2019 / Issue 51

It will allow companies to create digital solutions and experiment with smart equipment at ITE's
Digital and Advanced Manufacturing Living Labs, which showcase various improved front-end
and back-end production technologies.
Workers can also take industry-relevant modules to upgrade their skills for roles in Industry 4.0.
Workers under the programme can sign up for courses by ITE for adult learners that will provide
them with certificates of competency. These modules cover a range of topics such as robotics, the
Internet of Things, cloud computing and cyber security. The courses will be conducted on the ITE
campuses.

Link to the story:
https://www.straitstimes.com/business/manufacturing-firms-to-get-smart-tech-help-in-ite-labs

Overseas
China's November home prices growth slowest in nearly 2 years
China’s new home prices grew at their weakest pace in nearly two years in November while
property investment also eased, with tightening policies continuing to cool the market even as
some local easing is expected to prevent a sharp slowdown.
The property market, which directly impacts more than 40 industries, is a key growth driver for
China as policymakers try to revive the ailing manufacturing sector and restore flagging consumer
confidence amid a bruising trade war with the US.
Average new home prices in China's 70 major cities rose 0.3 per cent in November from the
previous month, lower than the 0.5 per cent growth reported in October and the weakest since
February 2018, according to calculations from official National Bureau of Statistics (NBS) data.
On an annual basis, average new home prices in the 70 cities rose 7.1 per cent in November, down
from 7.8 per cent in October and the slowest year-on-year pace since August 2018.
House prices are expected to grow 3.1 per cent next year, the lowest over a calendar year since
2015, a Reuters poll showed, with tightening policies continuing to cool the market.

Links to the story:
https://www.businesstimes.com.sg/real-estate/chinas-november-home-prices-growth-slowest-in-nearly-2-years
https://www.straitstimes.com/business/property/chinas-new-home-prices-grow-at-slowest-pace-in-nearly-2-years

Tory victory will boost UK housing prices by 2%: report
UK house prices should rise by 2 per cent next year on the back of Boris Johnson's election win,
according to a property website operator.
That's still a relatively small increase and there will be regional variations, the firm said in a report
published Monday.
It sees the biggest gains coming in northerly regions, compared to a more modest rise in the south,
where potential buyers already face extremely high prices.
Home values in London will probably increase by 1 per cent , the first gain since 2016.

Link to the story:
https://www.businesstimes.com.sg/real-estate/tory-victory-will-boost-uk-housing-prices-by-2-report

Weekly News Review
                                                                                                                   Dec 20 2019 / Issue 51

Contact:
Lee Sze Teck
Head, Research
(65) 6500 6510
szetecklee@huttonsgroup.com

This document has been prepared by Huttons Asia for general information only. Huttons Asia does not guarantee warrant or represent that the
information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information.
Huttons Asia excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damage arising directly or indirectly there-from. All rights reserved.
*The Business Times (BT) Online and *The Straits Times (ST) Interactive are a subscribers-only website. As such, you will not be able to access
the URL link to the articles unless you are registered as a subscriber.

                     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

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