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Weekly News Select
Dec 24, 2020 / Issue 52
Top News for the Week
• Analysts expect strong demand for the 17,000 BTO flats to be launched in 2021, in
both mature and non-mature estates
• December's new home sales could spike if buyers expect better growth in 2021
• First shipment of Covid-19 vaccine lands in Singapore on SIA flight from Brussels
• Details of vaccine roll-out here likely to be out in Jan
• More than 95,000 employers get over $1b in wage credit payouts
• Singapore bars visitors from UK and New South Wales
• Job market shows signs for optimism in 2021: Labour chief
• Jobs, businesses unlikely to fall off cliff when government aid ends
• Singapore's core, headline inflation at -0.1% in November
Residential
Analysts expect strong demand for the 17,000 BTO flats to be launched in 2021, in
both mature and non-mature estates
The Housing and Development Board (HDB) plans to offer about 17,000 Build-to-Order (BTO)
flat units in 2021, just slightly more than the number launched this year.
Property analysts TODAY spoke to said they expect demand for the new flats to be quite strong,
especially given the recession, as homebuyers tend to flock towards public housing amid economic
uncertainty.
Mr Lee Sze Teck, director of research at property agency Huttons Asia, said that 2021's BTO
supply of 17,000 units is “well-balanced”, considering the constraints in the construction industry
and ensuring sufficient demand in the resale market.
“Demand for BTO will vary across HDB towns with the mature estates generally seeing more
applications. That being said, some younger towns with bold transformation plans also attract
many buyers,” said Mr Lee.
Links to the story:
https://www.todayonline.com/singapore/analysts-expect-strong-demand-17000-bto-flats-be-launched-2021-both-
mature-and-non-mature
https://www.businesstimes.com.sg/real-estate/hdb-to-launch-17000-bto-flats-in-2021
https://www.straitstimes.com/singapore/housing/around-17000-bto-flats-to-be-launched-next-year
GCB segment ends 2020 on high note; buoyant mood expected to continue
The Good Class Bungalow (GCB) segment appears poised for further increases in transaction
volumes and prices, even after ending 2020 on a high note. Going by the viewing activity
underway, agents whom The Business Times spoke to are sanguine about prospects for 2021.
Although the number of GCB deals to-date matches that for 2019, the total transaction value is
S$893 million - up 14 per cent from the S$782 million for 2019.
And their prices have appreciated.
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Dec 24, 2020 / Issue 52
Data for Q1 2021 could continue reflecting this trend of higher prices as some options to purchase
GCBs at relatively high prices were granted in Q4 2020, but they have yet to be exercised.
The final tally of transactions in GCB Areas for 2020 as captured in the URA Realis database may
rise if more caveats are lodged in the next few weeks by buyers who have either recently exercised
options to purchase properties or who are due to exercise options by year-end
Link to the story:
https://www.businesstimes.com.sg/real-estate/gcb-segment-ends-2020-on-high-note-buoyant-mood-expected-to-
continue
Unit at Chuan View sold for tidy profit in Nov
A favourable entry timing helped a seller reap the top profit-making transaction by percentage for
the month of November as a 1,518 sq ft unit at freehold development Chuan View was sold for
nearly four times the purchase price.
Located in District 19, the unit at Chuan View was bought for S$520,000 (S$343 psf) in March
2005 and sold for a profit of 270 per cent at around S$1.92 million (S$1,267 psf).
Based on the holding period of over 15 years, this translated to an annualised profit of 8.7 per cent
for the seller.
By quantum, the most profitable transaction in the month of November was a 5,038 sq ft unit on
the fourth floor of Nassim Jade.
Four of the top five transactions by quantum were in the Core Central Region, and all five were
held for a period of 15 years or more.
Link to the story:
https://www.businesstimes.com.sg/real-estate/unit-at-chuan-view-sold-for-tidy-profit-in-nov
Proportion of loss-making transactions in resale market up in November
The share of loss-making transactions for landed and non-landed properties in the resale market
ticked up to 17.1 per cent in November, from 15.9 per cent in October, in contrast to the more
sanguine performance in the primary sales market.
When zooming in solely on non-landed properties, the proportion of loss-making transactions in
the resale market increased more significantly, going from 16.6 per cent in October to 18.4 per
cent in November.
Link to the story:
https://www.businesstimes.com.sg/real-estate/proportion-of-loss-making-transactions-in-resale-market-up-in-
november
December's new home sales could spike if buyers expect better growth in 2021
Buyers piling into new condos could push December sales to spike with one prediction that sales
could be 70 per cent more than November's 767.
In their respective first weekend launches earlier this month, 640-unit Clavon moved 442 units or
about 70 per cent, while 660-unit Ki Residences sold 135.
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www.huttonsgroup.comWeekly News Select
Dec 24, 2020 / Issue 52
Link to the story:
https://www.businesstimes.com.sg/real-estate/decembers-new-home-sales-could-spike-if-buyers-expect-better-
growth-in-2021
Commercial
Keppel Land to divest Keppel Bay Tower to Keppel Reit at $657.2m valuation
Keppel Land is divesting its 100 per cent interest in Keppel Bay Tower to Keppel Reit (real estate
investment trust), based on an agreed property value of S$657.2 million, inclusive of rental support
of up to S$3.2 million, according to exchange filings.
The initial net property income yield is estimated to be 4 per cent, taking into account rental
support.
Keppel Bay Tower is a Grade A office building located near HarbourFront MRT station. It has a
total net lettable area of about 386,600 sq ft, and comprises an 18-storey tower block as well as a
six-storey podium block. As at end-September 2020, committed occupancy stood at 99.2 per cent.
Links to the story:
https://www.businesstimes.com.sg/companies-markets/keppel-land-to-divest-keppel-bay-tower-to-keppel-reit-at-
6572m-valuation-0
https://www.straitstimes.com/business/property/keppel-land-to-divest-keppel-bay-tower
Retail
Malls packed despite call for caution in lead-up to phase 3
Malls in Singapore were teeming with pre-pandemic crowd sizes on the final weekend before
Christmas as shoppers sought last-minute presents in a festive year-end mood.
This was despite the Government urging caution in the lead-up to phase three of Singapore's
reopening on Dec 28, which will allow larger gatherings of up to eight and expanded capacity
limits at public places.
Link to the story:
https://www.straitstimes.com/singapore/consumer/malls-packed-despite-call-for-caution-in-lead-up-to-phase-3
Burger chain Carne coming to S'pore
Argentinian chef Mauro Colagreco, whose three-Michelin-starred restaurant Mirazur in France
was voted No. 1 in last year's World's 50 Best Restaurants, will open an outlet of his hamburger
chain Carne in Singapore in February.
The outlet, which is the first outside Argentina and is being marketed as a hamburger bar, will be
in Amoy Street and offer local beers from artisanal breweries here.
Carne's burgers in Singapore will cost between $18 and $24, and its combo sets - which include
fries, salads and drinks - will cost between $26 and $34.
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.comWeekly News Select
Dec 24, 2020 / Issue 52
Link to the story:
https://www.straitstimes.com/life/food/burger-chain-carne-coming-to-spore
Mak's Noodle to shut last outlet here
Wonton noodle specialist Mak's Noodle will be shutting its flagship - and last remaining - outlet
in Singapore at The Centrepoint mall on Feb 28 next year.
Its outlet at The Centrepoint, which opened five years ago, was its first in Singapore and a joint
venture with food and beverage (F&B) company Asia Gourmet.
Mak's Noodle used to have branches at VivoCity and Westgate, but both have since closed. Asia
Gourmet converted the Westgate outlet into another Hong Kong-style cha chaan teng - Honolulu
Cafe - in 2018.
Despite the pending closure of The Centrepoint outlet, there are plans to retain the brand in
Singapore at a "suitable location", says Mak's Noodle's general manager Lee Cheng Ling.
Also shutting next year is Mediterranean restaurant Summerlong, after four years at Robertson
Quay. Its last day of operations is Jan 10.
Other recent restaurant closures include Cantonese restaurant-bar Sum Yi Tai in Boon Tat Street,
both the Suntec City and Circular Road outlets of Taiwanese restaurant The Salted Plum, and
Northern Indian restaurant Kinara's outlet in Holland Village. Kinara's other branches - including
the ones in Boat Quay and Upper East Coast Road - are still operating.
Link to the story:
https://www.straitstimes.com/life/food/maks-noodle-to-shut-last-outlet-here
FCT to divest Anchorpoint mall for S$110m
Frasers Centrepoint Trust (FCT) will divest Anchorpoint shopping centre for S$110 million to
unrelated third parties, the manager said in a bourse filing.
FCT's trustee entered into two sale and purchase agreements with each of the undisclosed
purchasers for the proposed sale of two strata lots (together with the accessory lots) to each buyer.
These lots collectively comprise the shopping centre.
Anchorpoint is a mall with a net lettable area of approximately 6,616 sq m. It comprises two retail
levels (including one basement level) and an adjacent two-storey building.
The shopping centre has 51 tenants as at Sept 30, 2020. Key tenants include household retailer Mr
D.I.Y., fashion retailer Cotton On, Koufu food court, Xin Wang HK Café, as well as restaurants
Sakuraya, Uncle Leong Signatures and Jack's Place.
Link to the story:
https://www.businesstimes.com.sg/companies-markets/fct-to-divest-anchorpoint-mall-for-s110m
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www.huttonsgroup.comWeekly News Select
Dec 24, 2020 / Issue 52
Government
First shipment of Covid-19 vaccine lands in Singapore on SIA flight from Brussels
Singapore is looking to play a role in the global packaging and distribution of vaccines, as the
Republic marks the successful shipment of its first batch of vaccine from Belgium following
multiple trials and deliberate planning.
The Pfizer-BioNTech vaccine, the first such shipment to arrive in Asia, was carried by a Singapore
Airlines (SIA) Boeing 747-400 freighter, SQ7979. The scheduled freighter service landed at
Changi Airport at about 7.30pm on Dec 21.
The vaccine was picked up from the manufacturing site in Puurs, Belgium by DHL Global
Forwarding, and was accompanied by security escorts to Brussels International Airport.
Temperature trackers equipped with sophisticated GPS were packed within each thermal shipper
box to provide full visibility throughout the shipment's entire journey, said DHL in a statement.
Transport Minister Ong Ye Kung, Kevin Shum, the director-general of the Civil Aviation
Authority of Singapore, and the chief executives of the Changi Airport Group and SIA were on
hand to witness the arrival of the vaccine.
Ground handler Sats moved the shipment to its cold-chain facility after unloading it. The vaccine
will be stored at the Sats Coolport temporarily before it is passed back to DHL to handle the final
delivery of the vaccine to the designated location in Singapore.
Links to the story:
https://www.businesstimes.com.sg/government-economy/first-shipment-of-covid-19-vaccine-lands-in-singapore-on-
sia-flight-from-brussels
https://www.straitstimes.com/singapore/first-shipment-of-covid-19-vaccines-arrives-in-singapore
https://www.straitstimes.com/singapore/transport/spore-aims-to-be-hub-for-vaccine-distribution-in-region
Details of vaccine roll-out here likely to be out in Jan
More details of the effort to inoculate Singaporeans against Covid-19, including the different
phases of the vaccination programme and who will go through them, will hopefully be released by
as early as next month, said Education Minister Lawrence Wong.
The exact details on the roll-out of the vaccine will depend on multiple variables, including their
supply and delivery schedule, and when other vaccines get authorised for use here, added Mr
Wong, who co-chairs the multi-ministry task force on Covid-19.
These factors are still uncertain for now, he said.
Link to the story:
https://www.straitstimes.com/singapore/details-of-vaccine-roll-out-here-likely-to-be-out-in-jan
More than 95,000 employers get over $1b in wage credit payouts
More than 95,000 employers received over $1 billion in payouts under the Wage Credit Scheme
(WCS) this year to help them fund the wage increases of their Singaporean employees.
The next tranche of payouts will take place in March next year, said the Ministry of Finance and
Inland Revenue Authority of Singapore (Iras) in a statement.
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.comWeekly News Select
Dec 24, 2020 / Issue 52
Employers do not need to apply for WCS payouts. Those who are eligible will be notified by end-
March on the amount they will receive.
Link to the story:
https://www.straitstimes.com/singapore/jobs/more-than-95000-employers-get-over-1b-in-wage-credit-payouts
Singapore bars visitors from UK and New South Wales
Long-term pass holders and short-term visitors who have travelled to the United Kingdom within
two weeks of leaving for Singapore, as well as short-term travellers with travel history to
Australia's New South Wales in the past fortnight, will be denied entry into Singapore.
These UK travellers are barred from transiting through the Republic as well, as the authorities here
tightened border measures, said the Ministry of Health (MOH).
These came as the UK was trying to control a more virulent strain of the novel coronavirus while
New South Wales (NSW) has seen a flare-up. Singaporeans or permanent residents (PRs) flying
in from the UK must undergo a Covid-19 Polymerase Chain Reaction (PCR) test upon arrival in
Singapore, before serving a 14-day Stay-Home Notice (SHN) at dedicated facilities.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-bars-visitors-from-uk-and-new-south-wales
https://www.straitstimes.com/singapore/curbs-on-visitors-from-uk-amid-fears-over-new-strain
Singapore, Zhejiang to boost cooperation in areas like trade, innovation
Collaboration between Singapore and Zhejiang in eastern China will be stepped up in areas like
trade and connectivity, innovation and sustainable urban management, Enterprise Singapore
(ESG) said.
"Zhejiang's 'Future Communities' initiative and integration with the wider Yangtze River Delta
region also presents opportunities for Singapore companies in urban planning and environmental
services," ESG added.
Seven memorandums of understanding in areas such as urban governance, water technology and
environmental protection were also signed at a virtual meeting co-chaired by Senior Minister of
State for Communications and Information Sim Ann and Zhejiang vice-governor Zhu Congjiu.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapore-zhejiang-to-boost-cooperation-in-areas-like-
trade-innovation
https://www.straitstimes.com/business/companies-markets/spore-zhejiang-to-boost-tie-ups-in-areas-like-trade-
urban-management
Singapore increasing checks on F&B outlets' Covid-19 measures during festive period
Government agencies will be stepping up enforcement checks at food and beverage (F&B) outlets
in Singapore, starting this weekend and over the "next few weeks".
This is to ensure compliance with safe-management measures amid the Covid-19 pandemic, the
Ministry of Sustainability and the Environment (MSE) said in a statement.
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.comWeekly News Select
Dec 24, 2020 / Issue 52
"While we recognise that many may wish to meet up with family and friends during the festive
period or visit popular areas such as Orchard Road, F&B outlets and members of the public must
continue to take safe-management measures seriously," the ministry said.
Links to the story:
https://www.businesstimes.com.sg/consumer/singapore-increasing-checks-on-fb-outlets-covid-19-measures-during-
festive-period
https://www.straitstimes.com/singapore/stepped-up-checks-on-fb-outlets-over-festive-period
Economy
Job market shows signs for optimism in 2021: Labour chief
The job market has shown signs for optimism next year, although some sectors will remain in the
doldrums, labour chief Ng Chee Meng said.
The aviation and aerospace sectors, engineering clusters which support those sectors, as well as
hospitality and tourism, are likely to stay muted, he said, noting that these are areas in "survival
and sustainability modes".
But others like healthcare, biotech and logistics should trend positively overall, he said, while
acknowledging that the local and global health situation will be a big factor in determining how
the economy recovers from its low base this year.
Link to the story:
https://www.straitstimes.com/singapore/jobs/job-market-shows-signs-for-optimism-in-2021-labour-chief
Jobs, businesses unlikely to fall off cliff when government aid ends
Government support and relief schemes have seen companies big and small through the worst of
the pandemic's impact for much of this year.
But as these measures taper off into 2021, one worry is whether firms are strong enough to go it
alone - or whether retrenchments and cessations were only delayed rather than avoided, and may
now occur with a vengeance.
A sharp cliff effect, at least, should not manifest. The fiscal impact of government support will
remain large in the new year "because of the extension and timing of payouts, coupled with
transmission lags.
Measures such as the Jobs Support Scheme (JSS) wage subsidies have been extended "to
'smoothen' the policy cliff" into 2021.
Link to the story:
https://www.businesstimes.com.sg/government-economy/jobs-businesses-unlikely-to-fall-off-cliff-when-
government-aid-ends-0
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.comWeekly News Select
Dec 24, 2020 / Issue 52
SMEs in Singapore wary of expanding and investing, even as sentiment improves:
poll
Business sentiment among small and medium-sized enterprises (SMEs) in Singapore has eased off
its record low, but firms are still expected to hold off expansion and capital investments for the
first half of 2021.
That's according to the Singapore Business Federation (SBF) and information service Experian's
latest quarterly poll, where 2,100 SMEs across six sectors were surveyed between Oct 6 and Nov
13.
The SBF-Experian SME Index for January to June 2021 rose to 48.2, up from the all-time low of
46.3 observed in the previous quarter. Readings below 50 signal contractionary sentiments.
However, their expectations of business expansion and capital investments weakened.
The indicator for business expansion fell to 5.04 from 5.08 previously, marking a new low, while
that for capital investments decreased to 5 from 5.03.
Links to the story:
https://www.businesstimes.com.sg/sme/smes-in-singapore-wary-of-expanding-and-investing-even-as-sentiment-
improves-poll-0
https://www.straitstimes.com/business/business-sentiment-improves-but-smes-still-cautious-poll
Singapore's core, headline inflation at -0.1% in November
Singapore’s deflation eased in November, with both core and headline inflation at -0.1 per cent
year on year, compared to -0.2 per cent in October, showed Department of Statistics (Singstat)
consumer price index (CPI) figures.
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) kept
their official inflation outlook for 2020 and 2021 unchanged from earlier months.
November's slower decline was due mainly to smaller falls in the costs of services, and electricity
and gas, as well as higher food inflation.
In Singstat's release, the only three categories with positive inflation year on year in November
continued to be food (1.8 per cent), household durables and services (0.4 per cent) and
communication (0.8 per cent).
The official forecasts remain the same. Core and headline inflation in 2020 are expected to be
between -0.5 per cent and zero per cent. In 2021, core inflation is expected to average zero to 1
per cent, and headline inflation to average -0.5 and 0.5 per cent.
Links to the story:
https://www.businesstimes.com.sg/government-economy/singapores-core-headline-inflation-at-01-in-november-0
https://www.straitstimes.com/business/economy/core-consumer-prices-fall-for-10th-month
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www.huttonsgroup.comWeekly News Select
Dec 24, 2020 / Issue 52
Industrial
Cold store warehouse rents to rise as Singapore aims to be hub for vaccines
Rents for cold store logistics warehouses here could pick up as Singapore positions itself as a
centre for the storage and shipment of vaccines, as limited supply of such facilities should translate
to higher capital gains for investors who enter the market early.
This comes as the development of successful vaccines to fight the Covid-19 virus is expected to
spur sustained demand for temperature-controlled logistics facilities.
Vaccines by pharmaceutical firm Pfizer and biotech company Moderna, for instance, need to be
stored at temperatures of -70 degrees Celsius and -20 degrees Celsius respectively.
Rents for cold store logistics warehouses in Singapore currently stand at S$2.50-S$3.50 per sq ft
per month.
Link to the story:
https://www.businesstimes.com.sg/real-estate/cold-store-warehouse-rents-to-rise-as-singapore-aims-to-be-hub-for-
vaccines
Perfect Day sets up R&D centre in Singapore
Alternative protein company Perfect Day is setting up its research and development (R&D) centre
in Singapore, as the government ramps up efforts to grow the agri-food tech sector.
It plans to hire and train a pool of researchers, scientists and engineers locally, with know-how for
microflora protein innovation, for example, in strain development, protein assays and analysis.
The lab will focus on developing analytical systems that will be critical for ensuring the accuracy,
specificity and consistency of the firm's fermentation processes and protein ingredients.
Agri-food tech was highlighted as a new growth sector and potential export industry by the
Ministry of Trade and Industry in its Committee of Supply in 2019.
Indeed, the sector is of growing importance in Singapore's economy as the world looks for
innovative, cost-effective and sustainable solutions to increase production yield and improve food
quality.
Links to the story:
https://www.businesstimes.com.sg/consumer/perfect-day-sets-up-rd-centre-in-singapore
https://www.straitstimes.com/singapore/us-firm-astar-to-open-singapore-rd-lab-in-april
Singapore launches 3.86 hectares of industrial land supply for H1 2021
The government has launched 3.86 hectares (ha) of industrial land across six sites under the
industrial government land sales (IGLS) programme for the first half of 2021, the Ministry of
Trade and Industry (MTI) announced.
Three sites are on the confirmed list and another three are on the reserve list, similar to what was
offered in H2 2020. However, the total site area for H1 2021 is less than the 4.4 ha in H2 2020.
For H1 2021, all six sites are zoned B2 for heavier industrial use.
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www.huttonsgroup.comWeekly News Select
Dec 24, 2020 / Issue 52
The confirmed sites are in Tampines North Drive 5, Gul Avenue and Jalan Papan, with total site
area of 1.6 ha. All three sites have a tenure of 20 years, with estimated availability from March to
June next year.
Links to the story:
https://www.businesstimes.com.sg/real-estate/singapore-launches-386-hectares-of-industrial-land-supply-for-h1-
2021
https://www.straitstimes.com/singapore/smaller-industrial-land-supply-for-first-half-of-2021
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.
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