Daily Briefing: Singapore's rental market may soften 3% amidst lower expat arrivals; SPH REIT Management buys 85% stake in Australian shopping centre for US$124.5m

And the Singapore dollar hits a 13-month high against the Malaysian ringgit.

From PropertyGuru:

Singapore’s rental market is expected to soften in 2019 with private condo rents projected to increase 1 to 3% on the back of declining expat arrivals.

Expatriate housing packages have been on the downtrend in recent years. This effectively placed some downward pressure on rental growth, Savills Singapore said.

“If one believes this conventional wisdom, then demand from overseas nationals for housing in Singapore should decline so long as decision makers in multinational companies continue to hold such pessimistic views. For market observers who are marrying the negative macro picture to the 9,100 units of private residential properties expected to be completed in 2019, the rental market will be soft next year,” Savills Singapore senior director Alan Cheong said.

Nonetheless, the softening expat demand may be offset by the growing rental demand from permanent residents and citizens, including tenants and owners from en bloc sale projects.

Read more here.

From Deal Street Asia:

Real estate investment trust SPH REIT Management is in talks to purchase an 85% stake in a Sydney shopping centre for US$124.5m which will be its first overseas investment.

Figtree Grove Shopping Centre is located about 3.7 km southwest of the Wollongong and 71 km southwest of Sydney. It occupies a total gross lettable area of 21,984 sqm, including facilities like a 24-hour Kmart, supermarkets, retailers and dining options. It sits on a freehold land area of 50,900 sqm.

The proposed acquisition will be made through Figtree Holding Trust, a wholly owned sub-trust of a joint venture between SPH Reit and entities managed by Moelis Australia which is an ASX-listed financial services group.

The property is priced at US$146.4 million.

Read more here.

From Channel News Asia:

The Singapore dollar reached a 13-month high against the Malaysian ringgit of RM3.065 which was mainly attributed to reduced demand for the Malaysian currency amidst weaker oil prices.

This is the highest since the Singapore dollar touched RM3.0724 on 20 November 2017.

Oil prices are under pressure as traders fret over a global supply glut, higher production and the outlook for demand.

Malaysia's deputy finance minister Amiruddin Hamzah said that the Malaysian central bank would always make sure that the ringgit is stable, by using proactive measures to ensure sufficient liquidity and a resilient market.

Read more here.