Commentary

Singapore’s real estate sector will soon see a tightening of its customer and transaction due diligence requirements. From 28 June 2023, property developers will need to implement enhanced measures to prevent money laundering and terrorism financing. This will include the requirement to conduct customer due diligence (CDD) checks on new and existing property purchasers.

Real estate is by no means immune to the volatility impacting capital markets. The current macro environment offers no shortage of reasons for investors to hesitate in pursuing opportunities. Many are confining capital to the sidelines, awaiting more clarity and for relative stability to return.

Despite high airline ticket prices and new widespread Covid-19 variants, we have seen a surge in the demand for travel across regions which have eased Covid-19 restrictions. With staff and operational reductions over the past 2 and a half years, the tourism sector in Europe has been struggling to cope with pent-up demand and the high numbers of travellers. For example, in July 2022, Heathrow Airport controversially applied a daily 100,000 passenger cap to better manage excessive queues, baggage delays and flight cancellations.

Living environment has been a topic close to everyone’s heart during the pandemic.

As new operating models emerge, property valuers may need to be mindful of the way real estate is run when making valuations.

According to the Government's Land Sale Programme, the commercial plot New Central Harbourfront Site 3 will go to tender in the third quarter of this year. Instead of the usual highest bidder wins approach, the tender of this site will adopt a “two-envelope approach”. Developers will be required to submit separately a design proposal and a price proposal. The Development Bureau earlier further explained its scoring methodology to the Harbourfront Commission and the Land and Development Advisory Committee, in which the weightings for design and price will be 50-50. The tenderer with the highest combined score will be awarded the tender.