If you are a business owner or possibly even looking to be one, it is important to understand that there are different loans out there that are meant to help you fund your company.

By: Hitesh Khan/

Besides banks, there are other financial institutions that are more than willing to offer different loans for small or medium business owners.

These different loans for businesses are very similar to personal loans because of the fact they must be repaid in full by a certain amount of time, whether this be some sort of a repayment plan or a large lump sum payment.

The money being borrowed can be used for a number different reasons. For example, you can use this money to purchase new equipment that is needed, purchasing additional inventory or materials, hiring employees, covering for operational expenses, or even to pay staff salaries.

But as with all loans, it is very important that the borrower takes this money very seriously and plans out first how the funds will be used. Many new company owners make the mistake of borrowing a lot more money than they need because they did not plan ahead of time.

This will make it very difficult to make the payments, especially when such different loans come with a high interest rate.

For example, think about how you are going to use the funds borrowed:

• Are you looking to start your business and get things going?
• Do you have a business but are now looking to expand?
• Do you just need a little help with this months payroll?
• Have you considered other financing to cover the funds you need?

These are just some of the questions you should ask yourself before taking on this type of different loans. Remember you do not want to forget about certain risks that come along with owning your own business.

Once you have decided you want to take on this loan you must come up with a business plan to present to the lender. You must come with a business plan and data sheets that are easy enough for the loan officer to understand your field of work.

The loan officer will need to be convinced that you will be able to take on this loan and pay it back with ease. If you can achieve this, then there should be no problem getting this type of loan to help your business. But be mindful that over half of entrepreneurs are expecting to increase their revenues by 50 per cent in 2019, yet many are facing an uphill battle when it comes to funding their business expansion.

Singapore SMEs starting to be affected by trade tensions

An SME Development Survey by DP Info in November 2017 said a major sticking point for entrepreneurs in Singapore is cashflow management, It said that an increasing number of firms struggling with delays in client payments.

The survey found about 35 per cent of SMEs saying they had finance-related issues – 13 percentage points more than a year earlier and the highest since the survey began tracking the issue in 2011. And among these 35 per cent, the proportion experiencing delays in payments from customers skyrocketed from 14 per cent in 2016 to 81 per cent last year.

A separate Spring Singapore poll conducted in Dec 2017 showed that 64 per cent of SMEs said they were facing some form of delay in receiving payments from customers.

Mr Paul Ho, chief mortgage consultant at iCompareLoan said, “businesses need to borrow when they do not need money.”

He added: “When your business is struggling and you need additional funding to tide over a tough patch, then you will find that your access to funding is completely cut off and end up with very expensive funding.”

SME loans – with low success rate, it is important to work with trusted hands

It may be wise to plan 6 to 12 months ahead for any potential funding needs. Even if you do not need funding now, you may want to quickly refinance your home loans for any potential equity and stand-by cash even if you do not need it now.

Remember, banks assess your credit and affordability at the point of application, so you should apply when your status is good, not when you have further deteriorated. At that time, no banks will lend you. You should also read about more about the different loan types. If your business is profitable and you only need short term funding, but your access to bank’s working capital is temporarily cut off, then you should consider personal loans as a source.

As you know, a loan is based on a simple idea: someone gives you money and you promise to pay it back, usually with interest. Loans are so common that you probably are familiar with the mechanics, but nevertheless it makes sense to review the basics. The success or failure of your business can hinge on the question of if you did borrow funds when you were in the black. You may want to borrow funds which are just enough that your company can reach its potential, but not so much that you have severe difficulty paying it back.

It can be a mistake to pour too much money into your business at the beginning. A fair number of small businesses fail in the first year, so raising and spending a pile of money for an untested business idea can lead to much grief – especially if you’re personally on the hook for borrowed funds. Consider starting as small and cheaply as possible.

You have many options when looking a loan for your business. For small ventures, responsible borrowing means considering if friends and family members are willing to help. For sophisticated or mid-sized businesses, banks, cooperatives, and savings and loans may be willing to lend you money.

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CDL IS ONLY SINGAPORE REAL ESTATE COMPANY LISTED ON BLOOMBERG GENDER-EQUALITY INDEX 2020 FOR THIRD CONSECUTIVE YEAR

• Only Singapore real estate company listed on global index
• Women employees form 67% of CDL’s workforce and 50% of its department heads
• 25% women representation on CDL’s Board, above the Council for Board Diversity’s recommended target of 20% for Singapore-listed companies by 2020

City Developments Limited (CDL) has once again been selected for the 2020 Bloomberg Gender-Equality Index (GEI) which distinguishes companies committed to transparency in gender reporting and advancing gender diversity in the workplace. In a traditionally male dominated industry, CDL is the only Singapore real estate company to be listed this year, and to be listed for three consecutive years since the inauguration of the global index in 2018. CDL is part of 325 companies selected for the 2020 GEI from nearly 6,000 companies across 84 countries and regions.

The GEI tracks the financial performance of public companies committed to supporting gender equality through policy development, representation, and transparency. The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand.

Mr Sherman Kwek, CDL Group Chief Executive Officer, said, “CDL values diversity as a strategic advantage that enhances decision-making in the workplace. The insights harvested from people of different skills, experiences, gender, age groups and cultures have been invaluable in helping CDL stay relevant, cultivate a more engaged workforce, and furthering the organisation’s endeavours. We are deeply honoured by this recognition and strive to continue championing corporate diversity and promoting a culture of inclusiveness in the workplace.”

To promote the awareness and adoption of diversity and inclusion within the company and wider community, CDL established an internal Diversity and Inclusion Task Force in 2017. This Task Force complements CDL’s Women4Green network, a first in Singapore, which inspires and empowers women to create a financially, environmentally and socially sustainable future.

Currently, women employees form 67% of CDL’s workforce and 50% of its department heads. Over the past 5 years, CDL has consistently had over 65% of its workforce comprising female employees and the number of women department heads in CDL has steadily increased over the past few years.

In 2017, CDL also adopted a formal Board Diversity Policy, which sets a clear framework for promoting diversity on its Board. Currently, two (or 25%) out of eight directors on CDL’s Board are women. This exceeds the Council for Board Diversity (CBD)’s recommended target of having a 20% women representation on the boards of Singapore-listed companies by 2020, as well as the 15.7% women representation on the boards of Singapore’s top 100 primary-listed companies. Mr Kwek is a member of the CBD, established by the Ministry of Social and Family Services, which seeks to promote an increase in women participation on the boards of listed companies, statutory boards and non-profit organisations.

Mr Peter T. Grauer, Chairman of Bloomberg, said, “The 325 companies included in the 2020 GEI have shown their commitment to transparency and demonstrated leadership in genderrelated data reporting. Disclosure of company statistics and practices is an important first step in supporting gender equality globally.”

The GEI expanded in 2020 to represent 42 countries and regions, including firms headquartered in the Czech Republic, New Zealand, Norway, Philippines, Poland, and Russia for the first time. Companies range from a variety of industries, including automotive, banking, consumer services, engineering and construction, and retail.

On Jan 21, CDL was ranked the world’s top real estate company on the 2020 Global 100 Most Sustainable Corporations by Corporate Knights. CDL is the first and only Singapore real estate company to be listed on Global 100 for 11 consecutive years.

Announced on Jan 21 at the World Economic Forum in Davos, Switzerland, City Developments Limited (CDL) has been ranked the world’s top real estate company on the 2020 Global 100 Most Sustainable Corporations in the World, taking 36th place.

Since 2010, CDL is the first and only Singapore real estate company to be included for 11 consecutive years in Global 100, one of the world’s leading sustainability indices. This year, CDL has once again emerged as Singapore’s top-ranked sustainable company, a position held since last year.

Analysed by Corporate Knights, a Toronto-based international media and investment research firm, the Global 100 ranking is recognised as the world’s preeminent sustainability equity index and gold standard in corporate sustainability analysis. Companies listed on the 2020 Global 100 ranking were selected after a rigorous assessment of 7,395 companies with more than US$1 billion in revenues – each evaluated on a set of up to 21 Environmental, Social and Governance (ESG) indicators relative to their industry peers using publicly available information.

CDL’s Future Value 2030 Sustainability Blueprint Since CDL launched its Future Value 2030 sustainability blueprint in 2017, which sets ambitious ESG targets that contribute towards the UN SDGs, CDL increased its carbon emissions reduction target from 38% to 59% (from baseline year of 2007) and aims to reduce embodied carbon in building materials by 24% compared to their conventional equivalents.

Over the years, the Singapore real estate company has consistently demonstrated that a company that inculcates sustainability within its business goes hand-in-hand with good financial performance.

Rising the ranks to become the world’s top real estate company on the Global 100 is a remarkable achievement CDL also recently emerged as the only company in Southeast Asia and Hong Kong to be placed in the 2019 CDP A List, for its steadfast action on climate change and robust carbon strategy.

In addition, CDL is listed on 11 other leading sustainability benchmarks, rankings and indices such as CDP (since 2008); Dow Jones Sustainability Indices (since 2011); FTSE4Good Index Series (since 2002); and MSCI ESG Leaders Indexes (since 2009) and ‘AAA’ rating by MSCI ESG Research (since 2010).

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CDL RANKED TOP REAL ESTATE & TOP SINGAPORE COMPANY IN GLOBAL 100 MOST SUSTAINABLE CORPORATIONS IN THE WORLD

• First and only Singapore company listed on Global 100 for 11 consecutive years
• CDL’s Future Value 2030 sustainability blueprint continues to drive ESG performance, with targets aligned with the United Nations Sustainable Development Goals (UN SDGs)

Announced on Jan 21 at the World Economic Forum in Davos, Switzerland, City Developments Limited (CDL) has been ranked the world’s top real estate company on the 2020 Global 100 Most Sustainable Corporations in the World, taking 36th place. Since 2010, CDL is the first and only Singapore company to be included for 11 consecutive years in Global 100, one of the world’s leading sustainability indices. This year, CDL has once again emerged as Singapore’s top-ranked sustainable company, a position held since last year.

Analysed by Corporate Knights, a Toronto-based international media and investment research firm, the Global 100 ranking is recognised as the world’s preeminent sustainability equity index and gold standard in corporate sustainability analysis. Companies listed on the 2020 Global 100 ranking were selected after a rigorous assessment of 7,395 companies with more than US$1 billion in revenues – each evaluated on a set of up to 21 Environmental, Social and Governance (ESG) indicators relative to their industry peers using publicly available information.

Mr Sherman Kwek, CDL Group Chief Executive Officer, said, “Climate change affects all of us and concerted action is needed to mitigate its impact. Beyond delivering financial performance, businesses have a responsibility to their investors, stakeholders and the community to drive environmental stewardship. We are immensely honoured to be recognised as the world’s most sustainable real estate company. Over the past two decades, our ethos to conserve as we construct has led to our prioritisation of ESG integration to create value and future-proof our business. The Global 100 ranking affirms our progress and initiatives to drive transformations for our industry and be a change catalyst. We will continue to strengthen our ESG targets, innovate and proactively encourage a global green-minded business mindset.

Working together with other stakeholders within the larger ecosystem, we will forge ahead in the new climate economy and steer our built environment towards a more sustainable future.” CDL’s Future Value 2030 Sustainability Blueprint Since CDL launched its Future Value 2030 sustainability blueprint in 2017, which sets ambitious ESG targets that contribute towards the UN SDGs, CDL increased its carbon emissions reduction target from 38% to 59% (from baseline year of 2007) and aims to reduce embodied carbon in building materials by 24% compared to their conventional equivalents.

In addition, CDL proactively adopts sustainable construction methods and integrate innovative technologies to enhance the environmental performance and financial value of its properties, as well as create comfortable green living spaces. To optimise resource and cost-savings, sustainability considerations are factored into the entire development lifecycle, starting from land acquisition and design to construction and building management. Since 2011, CDL has set a minimum target for all its new developments to achieve a Green Mark GoldPLUS certification by Singapore’s Building and Construction Authority (BCA), exceeding the mandatory Green Mark certification level. To date, close to 70% of CDL’s portfolio of Green Mark certified developments and office interiors are rated Green Mark GoldPLUS and Platinum – the highest tier certification. It is also on track to achieve its target of achieving Green Mark certification for 80% of CDL owned and/or managed buildings by 2030.

Mr Toby Heaps, Corporate Knights Chief Executive Officer, said, “Over the years, CDL has consistently demonstrated that a company that inculcates sustainability within its business goes hand-in-hand with good financial performance. Rising the ranks to become the world’s top real estate company on the Global 100 is a remarkable achievement and I commend CDL for their steadfast commitment, years of perseverance to drive change for the built environment. CDL is a trailblazer for the real estate sector and Singapore; and I extend my heartiest congratulations.”

In addition to the above accolade, CDL is listed on 11 other leading sustainability benchmarks, rankings and indices such as CDP (since 2008); Dow Jones Sustainability Indices (since 2011); FTSE4Good Index Series (since 2002); and MSCI ESG Leaders Indexes (since 2009) and ‘AAA’ rating by MSCI ESG Research (since 2010).

On Jan 20, CDL emerged as the only Singapore company in Southeast Asia and Hong Kong to be placed in the 2019 CDP A List for its steadfast action on climate change and robust carbon strategy.

CDL is also listed as the only Singapore company which specialises in real estate listed on Bloomberg Gender Equality Index 2020 (GEI) for 3 consecutive years. The GEI tracks the financial performance of public companies committed to supporting gender equality through policy development, representation, and transparency. The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand.

To promote the awareness and adoption of diversity and inclusion within the company and wider community, CDL established an internal Diversity and Inclusion Task Force in 2017. This Task Force complements CDL’s Women4Green network, a first in Singapore, which inspires and empowers women to create a financially, environmentally and socially sustainable future.

Currently, women employees form 67% of CDL’s workforce and 50% of its department heads. Over the past 5 years, CDL has consistently had over 65% of its workforce comprising female employees and the number of women department heads in CDL has steadily increased over the past few years.

In 2017, CDL also adopted a formal Board Diversity Policy, which sets a clear framework for promoting diversity on its Board. Currently, two (or 25%) out of eight directors on CDL’s Board are women.

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Punggol Digital District: Singapore’s first business park powered by Open Digital Platform

Punggol Digital District (PDD) will be the business park that anchors business innovation and activity in the town. Masterplanned and developed by JTC, the PDD groundbreaking marks the first phase of its development. With 210,000 square metres of business park and mixed use spaces available from 2023, PDD will leverage on the larger Punggol town to be a living lab for cybersecurity, smart living and smart estates solutions. The co-location of SIT’s campus with the business park buildings in PDD will provide students with a full-fledged applied learning environment, while businesses will have access to young talents at close quarters.

Image: Smartnation.sg

Punggol Digital District will be Singapore’s first business park to offer businesses ‘plug and play’ digital infrastructure through the Open Digital Platform (ODP).

ODP is a smart city platform co-developed by ST Engineering, JTC, the Government Technology Agency, Cyber Security Agency of Singapore (CSA), and Infocomm Media Development Authority. With district-level data, businesses and students from SIT can tap on the ODP to conduct rapid prototyping and deployment of technology solutions in a real-world setting, which translates to cost savings and greater operational efficiency.

Punggol Digital District will be an attractive work and lifestyle destination with lush green spaces and an experiential digital environment with smart features. In addition to CSA, the Association of Information Security Professionals (AiSP) has also expressed interest to relocate its operations to PDD in 2023. AiSP plans to organise activities such as conferences, knowledge sharing events, awareness talks, and certification courses for individuals, organisations and the community to build up the cybersecurity sector.

As an environmentally sustainable business park, Punggol Digital District aims to achieve 30% higher energy efficiency than standard commercial buildings, zero water wastage with eco-ponds to collect rainwater for irrigation and to be reused as non-potable water, as well as 100% food and horticulture waste recycling into fertiliser.

Senior Minister and Coordinating Minister for National Security Mr Teo Chee Hean shared these plans at the groundbreaking ceremony of the Punggol Digital District and the launch of the PDD exhibition.

PDD is part of plans to integrate Punggol residential districts, a business park, a university campus, community facilities, and a network of parks and waterbodies, transforming the way we live, work, learn, and play. Bringing together residents, businesses and students, Punggol is slated to become a thriving, tech-enabled, sustainable town showcasing our Smart Nation ambitions.

Punggol will provide opportunities for industry, the Singapore Institute of Technology (SIT) and public agencies to co-create, test and deploy innovative solutions in areas such as cybersecurity and smart facilities management. A multi-agency effort1 will enable greater integration in the planning and running of infrastructure and services, and contribute to a vibrant and innovative ecosystem.

Punggol has been designated as a Strategic National Project for Smart Nation. It will be key in realising Singapore’s Smart Nation vision, and will drive adoption of digital and smart urban solutions throughout Singapore. The trials conducted in Punggol will be scaled to guide the development of future new towns and districts such as Tengah and Jurong Lake District, as well as the redevelopment of existing towns across Singapore.

Punggol: A thriving, smart and sustainable town for all

Punggol will be a demonstration of the future of living in Singapore. It will showcase how digital technologies can improve liveability and sustainability, create business opportunities, and forge a closer community. This builds on existing efforts by the Housing & Development Board (HDB) to develop Punggol as Singapore’s first eco-town since 2010. The entire Punggol town, with its housing precincts and the PDD, provides a unique environment for innovation to prosper, and for companies, researchers, students and even residents to work together on novel and impactful ideas. Technology will also be deployed to re-engineer services to respond to citizens’ different and changing needs.

Progressively from 2023, Punggol will serve as a living lab to test out new concepts of living, working and service delivery. The wider Punggol community can look forward to:

• New operating and service delivery concepts. Smart amenities that citizens can look forward to include a Specialist Community Club, imPAct@Punggol Digital District, which will be a one-stop social space, with a focus on programmes for youth and working professionals. There are also plans to develop one-stop, seamless public services to citizens in Punggol. Residents can look forward to the Punggol Regional Sport Centre that supports online and offline engagement such as virtual coaching, Augmented Reality gamification and online facilities booking. A hawker centre with a smart facilities management system will use technology to provide more efficient cleaning and maintenance services.
• A smart transport system that improves travelling around Punggol. This includes the pilot deployment of autonomous buses in the early 2020s, to enable the Punggol community to travel around the town efficiently and conveniently.
• A pro-enterprise business environment that nurtures innovation and collaboration. Academia, industry and government will forge a “Triple Helix Partnership” to develop ideas, productise them and overcome regulatory
  hurdles; and accelerate the testing and translation of new concepts to tackle challenges in areas like cybersecurity, smart grid and smart facilities management. This will help create job opportunities in key growth sectors of the digital economy.
• A green and sustainable town that minimises wastage and maximises resource efficiency. When completed later this year, residents living in the Punggol Northshore housing district can look forward to having their homes outfitted with built-in smart sockets and smart distribution boards that enable smart applications for the home, such as better monitoring of household energy consumption. Around the estate, features such as smart lighting will help save energy. In addition to the provision of solar panels by HDB on the roofs of housing blocks, JTC, SIT and SP Group will also collaborate on smart energy grid solutions to integrate energy generation and storage systems such as solar photovoltaic and batteries within PDD so as to optimise energy consumption and reduce carbon footprint by up to 1,500 tonnes annually. The implementation of pneumatic waste conveyance systems will also benefit the wider Punggol community. It allows for waste to be collected via air suction in underground pipes, minimising the traffic, noise, pests and smell nuisances associated with traditional waste collection.

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Investment sales and office space cum residential sub markets remained resilient in a subdued 2019 says new Research

Notwithstanding a muted domestic economy, the on-going trade war and other geopolitical tensions, private investment in real estate and the demand for office space remained robust as the Singapore property market continues to position itself as a safe haven for investment and commerce.

Investment sales

In tandem with the slowdown in sites sold under the Government Land Sales (GLS) Programme due in part to the soft residential collective sales market, the overall investment sales value dropped to $23.2bn in 2019, down 22.2 per cent from 2018’s $29.9bn.

Private investment sales, however, gained momentum, accounting for 78.1 per cent of total sales compared 76.2 per cent in 2018. Activity was supported by notable transactions in the office and hospitality sectors.

With Chevron House’s $1bn transaction topping the list in 2019, and the sale of Bugis Junction Towers in Q4 for $547.5m, the office sector enjoyed a 53.5 per cent year-on-year (y-o-y) increase in total private sector deals and GLS sites.

Hospitality assets – underpinned by yet another record year in international visitor arrivals to Singapore – likewise enjoyed brisk deal activity, with investment sales value increasing 216 per cent y-o-y. Q4 2019 saw the sales of the luxury Andaz Singapore hotel for $475m and Liang Court for $163.3m.

EDMUND TIE’s chief executive officer, Ms Ong Choon Fah said: “Given escalating risks in equities and shrinking yields in the debt market, real estate presents itself as an alternative asset class in which investors can safely park their wealth over the mid- to long-term.”

“In addition to a stable political landscape, the historical strength and stability of the Singapore dollar also preserves the value of investments, hence making the country a highly attractive destination for investors,” she added.

Office space investment sales

Sound fiscal and pro-business policies, supported by strong economic fundamentals, have also catalysed activity for office space, with substantial demand originating from the information & communications and finance & insurance sectors, even as the co-working industry continues to expand its footprint here.

“As businesses here undergo digital transformation, there is a healthy demand for IT and digital solutions as well as sustained demand for payment processing services,” said Ms Alice Tan, EDMUND TIE’s head of research and consulting.

Notable movements in Q4 2019 included the relocation of First Abu Dhabi Bank to 22,000 sq ft of space in Asia Square Tower 2, technology firm Upgrade Pack’s setting up office at 9 Battery Road, and JustCo’s opening of its 50,000 sq ft co-working office in Manulife Centre.

Ms Tan added: “Firms providing asset management and legal services could also be on the lookout for office space since inbound investment to Singapore is expected to step up as investors search for safe haven investment destinations in Asia.”

Residential investment sales

While the total sales volume of private homes is anticipated to reach 19,000 units for 2019, lesser than the 22,139 units sold in 2018, residential demand nonetheless stayed remarkably resilient in spite of the soft economy and modest job market.

Well-conceptualised projects with good locational and site attributes enjoyed good sell-through rates. One Holland Village Residences, for example, achieved a sell-through rate of about 29 per cent one month after its launch in end November 2019, transacting 87 out of its total of 296 units.

Other integrated developments with residential units launched in the fourth quarter that saw encouraging responses include Midtown Bay, which saw a sell-through rate of 22 per cent since October 2019, and Sengkang Grand Residences, which enjoyed a 35 per cent sell-through rate since November 2019.

“Notwithstanding the new high pricing set by new launch projects in 2019, there is growing acceptance from homebuyers on the price premium factors accorded to well-located projects with concepts that appeal in lifestyle and convenience,” said Ms Tan.

Ms Ong added: “Home ownership as an aspirational goal has long been a key element of the Singaporean dream since the nation’s formative years. Barring severe shocks, there will always be latent demand that will respond positively to quality supply that comes on-stream. Developers, who continually seek to raise the bar and create more value for homeowners, will continue to outperform the market.”

Everyone wants to know how to make money from investment sales. For those interested in real estate investments, the decision is between jumping in and buying (and perhaps overpaying for reading the market wrongly), and a long, hard wait where one might potentially lose a lot of capital in the process.

Understanding the property cycle and current market conditions would help those interested in investment sales to determine if it is a good time to invest. In order to correctly understand the market, buyers of real estate investment properties need to properly model the market to capture all the inputs and outputs.

Those interested in real estate investment should only go for high quality properties in good location with historical strong rental demand. One important thing such prospective buyers should ask is, “if money is not an issue, where would you rent?”

The prospective buyer would only know where the rental demand is after speaking to 30 – 50 people. So, always buy in those areas where people want to rent (because when times are good, one can get good rentals and when bad, it is still rent-able at a lower rent), you will still be able to find tenants because of the desirable locations.

Look for units that have some price distortion or buy good facing units that are going for less premium during high market. (Note: Some more speculative projects have a price difference of 20 -30 per cent between good facing and average facing units. For example, between 2800 psf versus 2200 psf, during a low cycle, the difference could narrow to 5 to 10 per cent.)

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– Bright spots in the SG real estate market, with marginal improvement in economic growth expected in 2020
– Low global interest rates, benign growth, and strategic asset allocation strategy should position SG real estate market favourably among investors
– Hotel and Office properties tipped as assets that offer mid- to long-term growth in SG real estate marke
– Within SG real estate market industrial and retail sectors bottomed but will remain fragile
– Residential developers to selectively acquire sites as they pare inventory within SG real estate market

Image credit: Alpha Stock Images

Colliers International today published its Singapore Market Outlook 2020 report, which highlights its growth forecasts for the market and the real estate opportunities in various property sectors in Singapore.

Broadly, Colliers Research expects the Singapore real estate market to retain its lustre this year, with the possibility of some sectors outdoing 2019’s performance. This is against a backdrop of the relatively more positive economic outlook in Singapore, stabilising global economy, the favourable interest rate environment, and the US-China trade truce which helps to mitigate some uncertainty in the market.

Tricia Song, Head of Research for Singapore at Colliers International, said, “In 2020, we expect office, hotel and residential sectors to post mild growth in 2020 on favorable demand-supply dynamics. Meanwhile, the industrial and retail property sectors should continue to stabilise after years of consolidation, while the office sector takes a breather after a strong 26% rental growth over three years. In the capital market, while valuations are high, office and hotels would still offer the best risk-reward proposition on the mid- to long-term horizon.”

SG Real Estate Market Outlook 2020 Highlights

Hotel Property Outlook
Colliers Research expects demand for rooms to remain healthy in 2020, supported by rising visitor arrivals, new tourist attractions, and large-scale MICE (meetings, incentives, conferences, exhibitions) events, such as The International Trademark Association’s 142nd Annual Meeting and the 103rd Lions Clubs International Convention. The long-term growth drivers for the hospitality sector include the new airport terminal and expansion of the Integrated Resorts.

In terms of trading performance, revenue per available room (RevPAR) – which has recovered since 2017 – could grow by 1% year-on-year (YOY) in 2020 on tight near-term supply and continued growth in visitor arrivals. Meanwhile, occupancy is expected to improve with limited supply in 2020-2022F. Even with potentially increased room completions in 2023 and 2024, the total new completions over 2020-2024 would average around 1,400 rooms per annum, still well below the last 10-year average of about 2,800 rooms per annum.

Office Property Outlook
In 2020, Colliers Research expects office demand to continue to be led by the technology and flexible workspace sectors, albeit at a slower rate than 2019. The rapid expansion in the flexible workspace sector could lose steam as operators focus more on sustainability and profitability; the tight office vacancy will also likely constrain the sector’s growth.

The average rent of Grade A office space in the central business district (CBD) is projected to rise at a slower pace of 1% YOY to SGD10.19 per square foot per month (psf pm) in 2020, as rents are on a 10-year high and tenants resist further rent hikes in view of macro-economic uncertainty. Colliers Research estimates that CBD Grade A vacancy could increase to 5% in 2020 as net demand declines. That said, the limited supply in 2020-2021 should keep vacancy below the 10-year average of 6.2%.

Retail Property Outlook
The overall retail market will continue to bottom in 2020 with relatively flat rental growth, as the market digests the large new supply that was completed in 2019. Colliers Research anticipates any recovery to be subdued given the lack of catalysts. Ground-floor rents at Orchard Road are expected to rise marginally (+0.3% YOY) in 2020, while that of Regional Centres could stay flat. Island-wide vacancy could also improve in 2020-2023 as front-loaded supply in 2018 and 2019 gets absorbed.

Key themes in the retail sector this year are: consolidation; “reinventing” retail; and omni-channel retail. Retailers are expected to adopt technology to enhance customer experience, as well as diversify their business models and expand their product offerings or services to provide more options for consumers. For the landlords, F&B expansions and the inclusion of flexible workspace in retail malls are likely to continue into 2020.

Residential Property Outlook
About 44 private residential projects are expected to be launched in 2020, of which 45% would be in the prime districts. Colliers Research notes that foreigners are still attracted to selected super luxurious projects.

Colliers Research is of the view that steady household formation, low unemployment, and favourable interest rates will support housing demand. It expects developers to sell about 9,800 new homes in 2020, on par with 2019. From the land sale tender results since the cooling measures in July 2018, developers have been active but cautious in their land bids. Colliers Research expects developers to remain prudent in land bidding, and to focus on moving inventory for most of 2020.

Industrial Property Outlook
Leasing demand is expected to remain soft on weaker trade before outpacing supply in 2021, supported by a projected gradual recovery in the global electronics cycle. According to JTC’s data, total net new supply is projected to intensify in 2020 to 18.5 million square feet, led by factory segment at 77%, before tapering off from 2021 onwards.

In general, Colliers Research forecasts continued two-tier performance between older lower-specifications and newer higher-specifications facilities. In particular, warehouse rents will likely stabilise over 2020-2021, before recovering from 2022 as supply diminishes. In contrast, business park and high-specs rents could improve slightly on sustained demand.

Investment Sales Outlook
Broadly, Colliers Research expects that total investment sales should increase by 6% YOY to SGD31.3 billion in 2020, given the strong institutional interest in Singapore real estate, especially in the commercial property sector.

Tang Wei Leng, Managing Director at Colliers International, said, “We expect the remarkable pace of commercial deals to continue, supported by favorable interest rate outlook, healthy office market, and Singapore’s status as a key global business hub. The government’s effort to rejuvenate the city centre, coupled with investors’ interest and confidence should help to maintain the strong investment momentum in commercial sector.”

In addition, Colliers Research forecasts industrial sales to accelerate, with more big-ticket transactions by industrialists and institutional investors into yield-accretive assets such as business parks and data centres. The investment demand for hospitality assets will remain firm, owing to the muted supply pipeline and robust visitor arrivals on more attractions and MICE events.

The post SG real estate market to retain its lustre in 2020 amid uncertainty appeared first on iCompareLoan Resources.

While it has only been 2 weeks into the new year, a lot of hopeful couples are eagerly anticipating the first round of BTO launch that’s coming up in February 2020 BTO. The February 2020 BTO plots offer some interesting choices for Singaporeans who are looking to settle down with their other half. iCompareLoan is here to help you to make better decision when deciding your BTO choices, i.e. by decoding the upcoming Sembawang BTO and Toa Payoh BTO for hopeful applicants.

Sembawang BTO: Accessible BTO With Good Amenities In A Non-Mature Estate

MAP 1: Sembawang BTO map for February 2020 BTO

Unless you have been living in the Northern part of Singapore for most of your life, it is improbable that you will want to choose to live there. The reason is because most people have the misconception that the Northern part of Singapore is very inaccessible, especially if you are travelling by public transport. Well, that isn’t always the case.

For instance, this upcoming Sembawang BTO is exactly the counter example you need to debunk that misconception. With the Canberra MRT situated right at the feet of the development, future residents of this Sembawang BTO has the luxury of walking to the MRT by foot.

If you look around the map, you will notice that there are a lot of condominiums in the area. These condominiums were built in anticipation of the Canberra MRT station for years. Now that the Canberra MRT station is up and running, you are paying a hugely discounted price to stay right next to Canberra MRT. You don’t even have to wait for the MRT to be built, unlike all those condominium developments. We dare say that you are getting a good deal with this Sembawang BTO if you are lucky enough to get a good ballot number.

February 2020 BTO: Sembawang HDB BTO Details

Table 1: Sembawang BTO Details Table for February 2020 BTO

Toa Payoh BTO: Central Location vs Housing Size

MAP 2: Toa Payoh BTO map for February 2020 BTO

Toa Payoh is one of the oldest housing estates in Singapore. As such, most of its land space is already fully utilized. That’s why when we saw that they are opening up 2 new BTO launches in February 2020 BTO, it was unbelievable.

The demand for these 2 Toa Payoh BTO launches is forecasted to be quite strong given that it is so rare for BTO launches to happen in Toa Payoh. For couples who are looking to stay near your parents in Toa Payoh, this Toa Payoh BTO is your chance.

The other reason for a strong demand is that the Toa Payoh BTO is within 20 minutes from City Hall, both by MRT and by car. For those who are working within the Central Business District (CBD), this is a huge incentive to apply for the Toa Payoh BTO.

However, you will need to consider whether the housing sizes will fit your needs. For the Toa Payoh BTO launch, the biggest housing size is 4R. This could be a tiny bit small for you and your spouse, especially if you are planning for a few kids in the future. You will need to weigh the pros and cons of a very central location against the size of the housing.

For those who buy a BTO, you can opt to use HDB loan or bank HDB loan to finance your HDB BTO flat.

February 2020 BTO: Toa Payoh BTO Details

Table 2: Toa Payoh BTO Details Table for February 2020 BTO

Discuss what you think about the upcoming February 2020 BTO launches with us here.

The post February 2020 BTO: Sembawang, Toa Payoh BTO Flats appeared first on iCompareLoan Resources.

Grab set to scrap $15, $20 and $25 vouchers and increase cost of rewards from March

By: Jewel Stolarchuk/

Grab has announced major revisions to its GrabRewards programme, which will go into effect from 2 March 2020 onwards. Users will see the cost of rewards go up while certain coveted rewards like S$15, S$20 and S$25 vouchers will disappear under the updated rewards programme.

From March, Grab users will earn fewer GrabRewards points with each transaction on the platform. While users currently earn between 2 to 10 points per dollar depending on the Grab service and the rewards tier they belong to, users will only be able to earn 2 to 4 points per dollar across all types of Grab transactions when the rewards update kicks in.

Additionally, members who belong to the higher tiers – like the Gold or Platinum rewards tier – will no longer be able to use fewer points to unlock bigger discounts. From March, Grab ride and food delivery vouchers will cost a standard 550 points for S$1 off, 2,500 points for S$5 off, and 5,000 points for S$10 off no matter which tier members belong to.

For comparison, a S$10 Grab ride or food delivery voucher presently costs 4,200 points for regular members, 4,000 points for Silver members, 3,800 points for Gold members, and just 3,600 points for Platinum members.

The S$15, S$20 and S$25 ride and food delivery vouchers that are available now will no longer be offered when the update goes into effect.

Users who are part of the Platinum tier – the highest rewards tier – now earn 10 points per dollar spent on GrabPay transaction but will only earn a maximum of four points per dollar spent after the update. This means that Platinum members will need to spend about S$1,250 to accumulate enough points to be eligible for the S$10 discount after the update.

Users will also have to spend more to unlock and maintain each membership tier from March.

Users who now need to spend S$60 to unlock the Silver tier will soon need to spend $150 to achieve that tier, those who need to spend S$240 now to move on to the Gold tier must soon spend $600 to progress to the Gold tier and those who want to move to the Platinum tier must soon spend a hefty S$1500 to do so, compared to the current cost of just S$600.

Additionally, some netizens have pointed out that it is no longer possible to make payments via GrabPay at transaction portals like YouTrip, Revolut and AXS.

Grab said in a press statement that the revisions to its GrabRewards programme will be made to adapt better to “shifts in customer expectations”:

“Our customers today interact with the Grab app more frequently for their transport, food, payments and other needs, and are demanding for better engagement on the platform. With shifts in customer expectations, coupled with the overall growth of our ecosystem, the way we reward and create value for our customers must change too.”

Grab is expected to run more promotional campaigns this year like flash sales and the ongoing ‘Zodiac Coin Hunt’ campaign that was launched to coincide with Chinese New Year.

Assuring users that they will soon have “more places to earn and spend their reward points at millions of merchants” despite the plunge in points per dollar, Grab said: “In addition, customers can also look forward to more ways of earning points and rewards, such as through Challenges, flash sales and moment-based campaigns.”

Commuters who responded to Grab’s announcement of revision to its rewards programme expressed their unhappiness in the various news platforms.

Facebook user Allen Eleaneur Chong writing on The Straits Times FB page said: “That’s the impact of not restricting the M&A between Grab and Uber last time. Now consumers will feel the pain without a competent competitor.”

Some Facebook users commenting on the same platform suggested that the travel app company will lose more business to its competitors because of this unpopular move. Others encouraged commuters to quickly use their rewards before the revised rewards programme kicks in.

Facebook user Rishi Katreddi commenting on Today’s report on the issue said: “This is what happens when one brand monopolizes the market.” Facebook user Joice Toh sid: “We need some worthy competitors.”

Facebook user Ng Swee Shoon said: “As with Lazada’s LiveUp membership, once the threshold of perceived rewards fall below an acceptable level, pioneer members will look for alternatives. A great opportunity for Gojek, Comfortdelgro, Deliveroo and Food Panda.”

And Facebook user Singh Prem said: “Does not surprise me one bit! The richer it gets, it loses integrity, and starts to show its true colours – real ugly, from my perspective. I find this to be in bad taste. It is very much like biting the hand that feeds it.”

Mr Paul Ho, chief mortgage officer at iCompareLoan, said: “This is not the first time Grab has massively devalued its rewards programme.”

He added, “Commuters should quickly redeem their Grab points before the revised rewards programme kicks in. It remains to be seen if commuters will migrate to other competitor apps like Gojek and Tada to protest Grab’s devaluation of its rewards programme.”

In July 2018, Grab gutted the earning rates for rides and hiked the cost of vouchers for its customers. In March 2018, when Uber sold out to Grab many people feared that Grab’s newly-gained monopoly power would lead to higher prices for rides. New entrants to the market have helped to better mitigate the price hikes, but not before critics took the transport travel app company to task.

Aaron Wong writing in The Milelion said then, “this is not how you run a loyalty program. Unannounced devaluations and sticking it to your most loyal customers? Who’d want to use your service then?”

The post Grab set to scrap some vouchers and increase cost of rewards appeared first on iCompareLoan Resources.

Did you borrow funds when your business is successful? The success or failure of your business can hinge on it

By: Hitesh Khan/

As you know, a loan is based on a simple idea: someone gives you money and you promise to pay it back, usually with interest. Loans are so common that you probably are familiar with the mechanics, but nevertheless it makes sense to review the basics.

The success or failure of your business can hinge on the question of if you did borrow funds when you were in the black. You may want to borrow funds which are just enough that your company can reach its potential, but not so much that you have severe difficulty paying it back.

It can be a mistake to pour too much money into your business at the beginning. A fair number of small businesses fail in the first year, so raising and spending a pile of money for an untested business idea can lead to much grief – especially if you’re personally on the hook for borrowed funds. Consider starting as small and cheaply as possible.

You have many options when looking a loan for your business. For small ventures, responsible borrowing means considering if friends and family members are willing to help. For sophisticated or mid-sized businesses, banks, cooperatives, and savings and loans may be willing to lend you money.

While a friend or relative may be willing to lend you money on a handshake, responsible borrowing would tell you that this is a bad idea for both of you. It’s always a better business practice to put the loan in writing, and to state a specific interest rate and repayment plan. Otherwise, you open the door to unfortunate misunderstandings that can chill your relationship.

Close look at small business loan documents now could save you headaches later

If you want to borrow funds responsibly, you should also know how interest rates on your loans work.

Interest is a percentage of the amount that you owe that is added to your balance periodically as a fee for using the money. It will continue to accumulate until your debt has been repaid.

Interest rate is the percentage of the debt that is charged as interest. Every loan, mortgage, credit card, or medical bill that you ever will receive will have an interest rate associated with it. These can vary wildly between financial products, and also between consumers based on their credit histories.

It is very important for you to know how interest works, because otherwise you might not understand why your balance never seems to get any lower even though you are making payments, or just how much your debt really is costing you.

Interest rate is a fact of life, so understanding how they work is crucial to financial planning and debt repayment. Do not ignore the power that compound interest can have on your debts, but also remember that interest can work for you just as well as against you!

It is important to understand how Interest rate works as it affects you

Personal guarantee is an inherent part of responsible borrowing but there are many ambiguities and misunderstandings that surround the topic of personal guarantees.

A personal guarantee is an unsecured promise from an individual to make loan payments when a small business is not able to do so. “Unsecured” means it is a promise that is not backed up by a specific asset, such as real estate, in which case, the asset would be considered collateral.

A personal guarantee is an added assurance that you are serious about your business – and most importantly – serious about repaying the loan. One big reason why a personal guarantee is needed is because most lenders are bankers and are in the business of accepting deposits. They use those deposits to make small business and other loans, and, as a result, they are responsible for protecting the interests of their depositors.

Be mindful that while your small business may be a borrower, you are also a depositor. As such, you would be affected if an unscrupulous small business owner borrowed your company’s deposits and did not bother to repay them.

A personal guarantee is a psychological reminder to you of your company’s obligation to make timely payments and eventually repay the loan. If it fails, you are responsible. A personal guarantee shows your commitment to being a responsible business manager and repaying your business loan.

Financial affairs of a small business are commonly intertwined with the personal financial affairs of its owners, so it is logical and reasonable to ask you to promise to repay the loan, if your company cannot. A personal guarantee offers lenders the ability to follow the due process to recover the business loan from you personally.

If you believe it is important to borrow funds, you should speak to a loan consultant who can set you up on a path that can get you a it in a quick and seamless manner. Loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. You should also find out about money saving tips. You should also check out Affordability Tools which can help you make better property buying decisions. Calculators, are also an essential tool which can help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge.

The post Borrow funds to ensure your business venture remains successful appeared first on iCompareLoan Resources.

In an environment of financing restrictions for start-up businesses where funds are limited, a mindset shift is required

By: Hitesh Khan/

We are conditioned to begin the process of looking for new business opportunities by asking: “Where is there a gap in the market and how can I fill that gap?” A gap could be an unfilled customer need or a new invention yet to be brought to market.

Next, we establish a goal to create a venture that will fill that gap. We consider the resources necessary to make our goal a reality and go out in search of those resources. We write a business plan and present it to potential financiers with the promise of a return on investment.

If the financiers like us and like our idea, they provide us with the capital to start the business. If not, we are stuck. Most times, people find it difficult to raise the resources they require, causing the entire project to fall on its head.

There is an alternative route to creating a new venture. Instead of starting with the question, “Where is there a gap in the market and how can I fill it?” ask yourself, “What do I have and who do I know?”

Image credit: Flickr l Aleksandr Zykov

Carefully examine the resources and relationships over which you have influence, and consider how you can put these to work quickly and effectively to create an offering that the market needs or wants. You can experiment using different combinations of resources to test how the market responds to different offerings and over time create an offering that is really valuable to others.

With this approach, an entrepreneur’s goals emerge over time, taking resources, connections and contingencies into account.

They are not fixed at the start of a project as they are when the traditional approach is applied.

More stringent personal loan restrictions to kick in from next year

Here are some principles and guidelines that will provide you with a better chance of effectively launching a business with financing restrictions.

1. Start with what you have

At the outset of looking to start a new business with financing restrictions, take stock of what you have at your disposal. Consider your:

• Skills – what can you do?
• Experience – what have you done in the past?
• Knowledge – what do you know?
• Tangible resources – what do you own and what do you have access to?

2. Take into account who you know

What you have needs to be combined with who you know for it to have real power. Take stock of the relationships you have with others, map out your network of connections and consider how your connections could enable you to use what you have more effectively.

3. Invest what you can afford to lose

There is a big difference in your mindset if you start with the perspective that “I am investing this amount and I expect a 30% return” versus “I can afford to lose this much, therefore I will put it into the business and see if I can make it work”.

If you have only put in what you can afford to lose, you maintain flexibility in the business and minimise stress in managing it. If you are only willing to invest when you expect that you can get a specific return, there is a strong chance that you may never take the leap and launch the business you always dreamed of owning.

An example of this is the entrepreneur who refuses to leave a well-paying job until he finds an opportunity that he predicts will pay more, versus one who decides to invest a small portion of her savings and two years of her life in a project that she believes is worth that amount of time and money – irrespective of whether it will pay more than what she currently earns.

This is one good reason why those with financing restrictions should never not consider using a personal loan to finance their businesses.

5 tips for boosting your chances of getting personal loans

4. Experiment and adapt

With this mindset, flexibility and adaptability are a competitive advantage. You succeed not by becoming too fixated on a single goal or outcome but by being responsive to changes in the environment. Existing firms typically take longer to adapt than new firms because they have more incentive for things to remain the same and they have established routines and practices that reinforce the status quo.

New firms are not tied to the way things have always been done and thus entrepreneurs can benefit from shifts in consumer preferences, or shifts in technology or changing legislation by realigning their businesses to take advantage of such developments.

If you want to expand your business but have financing restrictions, you should speak to loan specialists. Loan specialists can set you up on a path that can get you the best business loans in a quick and seamless manner. Loan specialists are able to not only pre-qualify you with multiple lenders and compare rates and terms, they are also able to get you the best personal loans which has costs and payments that fit into your budget.

To lower the cost of borrowing, try to convince your lender to give you a better rate. You should negotiate with your lender and they may be willing to cut the interest rate to secure your business, and so the loan will cost you less. If you are uncomfortable about negotiating, you should engage the services of a loan specialist.

Loan specialists will not only be able to negotiate a better rate for you, they will also be able to help you compare the best personal loan offers from among the different ones given by the many banks. It also makes sense to engage loan specialists because their services are usually free.

The post Financing restrictions can incapacitate a business if left to fester appeared first on iCompareLoan Resources.