First bring a Kilogram of Physical Gold to the bank and ask how much can you sell.

Next bring the Gold certificates to the bank and ask how much can you sell.

If the Bank tell you they don't buy the physical gold and the certificate then you know you should not have buy the Gold in the first place.

Will you change you cash for metal and wait for the price of the metal to increase, Or would you use your cash and leverage it.

How much do you need to pay for a million dollar property? How much do you need to pay for a million dollar worth of metal? What do you get from both of them?

HDB build 18580 unit for Singaporean between 2006 to 2008.

https://lh5.googleusercontent.com/-7LIxOQjfSjg/TjDpHCpIvUI/AAAAAAAAGSQ/ryTnF4FlFzc/s800/HDB.JPG

https://mail.google.com/mail/?ui=2&ik=3d88ba9d48&view=att&th=13162a26f742a20f&attid=0.3&disp=emb&realattid=ii_13162a0d2c94c15c&zw

https://mail.google.com/mail/?ui=2&ik=3d88ba9d48&view=att&th=13162a26f742a20f&attid=0.4&disp=emb&realattid=ii_1316290c92b5958f&zw

https://mail.google.com/mail/?ui=2&ik=3d88ba9d48&view=att&th=13162a26f742a20f&attid=0.1&disp=emb&realattid=ii_131626e162a0424b&zw

https://mail.google.com/mail/?ui=2&ik=3d88ba9d48&view=att&th=13162a26f742a20f&attid=0.6&disp=emb&realattid=ii_1316267c2c9ce68d&zw

We need more High IQ Frankie Mao and Singapore will be half own by FT.

https://lh3.googleusercontent.com/-VDRxhVfm6is/TjDvPmZkwrI/AAAAAAAAGSc/WY1D6C9HFwU/s800/landed.JPG

We need more High IQ Frankie Mao and Singapore will be half own by FT.

https://lh3.googleusercontent.com/-VDRxhVfm6is/TjDvPmZkwrI/AAAAAAAAGSc/WY1D6C9HFwU/s800/landed.JPG

The Property Law is easily circumvented. Just take up citizenship. :)

green-eyed frankie

We need more High IQ Frankie Mao and Singapore will be half own by FT.

https://lh3.googleusercontent.com/-VDRxhVfm6is/TjDvPmZkwrI/AAAAAAAAGSc/WY1D6C9HFwU/s800/landed.JPG

cant imagine opening landed to foreign investment.. will rocket out of reach for Singaporean.. this guy donno wat he saying..want to sell high but when buy will complain high.

Public housing is no more public if most of the public cannot afford to buy.

https://lh5.googleusercontent.com/-7tLlC8Zdt3Y/TjJCJtXM7cI/AAAAAAAAGTM/E1a-kkQicns/s800/hdb%25252060.JPG

https://lh5.googleusercontent.com/-rVz-8jsBe3w/TjJEsq7E68I/AAAAAAAAGTc/bqYQTW8hylc/s800/Popular%252520school%2525202012%252520Pr%2525201%252520execise.JPG

https://lh3.googleusercontent.com/-HGkdNPnIRxs/TjOaXIyLrbI/AAAAAAAAGUE/BJJOY5ukM9U/s800/Popular%252520school%2525202012%252520Pr%2525201%252520execise%2525202.JPG

Public housing is no more public if most of the public cannot afford to buy.

https://lh5.googleusercontent.com/-7tLlC8Zdt3Y/TjJCJtXM7cI/AAAAAAAAGTM/E1a-kkQicns/s800/hdb%25252060.JPG

Not to mention declining standards of living too. :ohno:

We need more High IQ Frankie Mao and Singapore will be half own by FT.

https://lh3.googleusercontent.com/-VDRxhVfm6is/TjDvPmZkwrI/AAAAAAAAGSc/WY1D6C9HFwU/s800/landed.JPG


Does that mean if more High IQ people like Frankie Mao ask to lift the restriction MOL will consider.

https://lh5.googleusercontent.com/-kK5jTe_qRSA/TjOXzw9-N8I/AAAAAAAAGT0/UrNQFJ04tHE/s800/landed%252520reply.JPG

Not to mention declining standards of living too. :ohno:

Lucky MBT not in MND, he will advise those who want a higher standards of living to go North.:banana:

https://lh6.googleusercontent.com/-EflMqPp9Ahw/TkFzgiF6r5I/AAAAAAAAGWg/KTLFQnH6BJk/s800/MWL.JPG

Seems to see a pick up in activities in the last few weeks..

With the latest EC at Tampines selling quite well..

A Treasure Trevose at Punggol is selling very well this weekend. This could be the star sales this month.

A Treasure Trevose at Punggol is selling very well this weekend. This could be the star sales this month.

Name : A Treasure Trove
Developer : Sim Lim Group
Location : 50-76 Punggol Walk
Land Size : 296,298 sqft (approx)
Plot Ratio: 3.0
District : 19
Total Unit: 882 units
No of Blocks/Storey: 14 Blocks/16 Storey

Seems to see a pick up in activities in the last few weeks..

With the latest EC at Tampines selling quite well..

I wonder how many unit is on DPS.

https://lh5.googleusercontent.com/-iJGOiFkNV60/TmyFlaAjfDI/AAAAAAAAGWw/dKXxzvt8R7A/s800/30000.JPG

HDB building 25,000 per year enough meh, LPPL.

https://lh5.googleusercontent.com/-RI7kstbTfO8/TmyHOHxMbYI/AAAAAAAAGXA/cUwBTk93aKM/s800/30000%252520a.JPG

Tresure Trove and Arc @ Tampines selling about 800 - 900psf.. good buys?

Personally I think A Treasure Trove is a good buy considering how close it is to the MRT station and the future mixed use development. Forget about the rumors about Matilda House, rumors are always temporary, once people start to stay around it, it'll become a gem. I recommend the units facing Matilda House, because you'll always have a good view, without the noise from the pool.

Furthermore, remember how high the bid for the mixed use site was? Once the residential units are out for sale, you'll see the psf for your unit jump immediately.

What's with the Matilda House?

What's with the Matilda House?

If you don't know, then it's okay. I have no idea how the rumor started but whenever you have a house that is left unoccupied for some time, people will start to talk. Truth is, it is nothing more than just a house that was left behind by the heir of a rich family, who went overseas.

http://en.wikipedia.org/wiki/Matilda_House

http://www.spi.com.sg/study/fm/punggol_kampong_house/main.htm

This development is good for HDB upgraders staying nearby. Personally I think A Treasure Trove is a good buy considering how close it is to the MRT station and the future mixed use development. Forget about the rumors about Matilda House, rumors are always temporary, once people start to stay around it, it'll become a gem. I recommend the units facing Matilda House, because you'll always have a good view, without the noise from the pool.

Furthermore, remember how high the bid for the mixed use site was? Once the residential units are out for sale, you'll see the psf for your unit jump immediately.

http://www.bbc.co.uk/news/business-14486465

One hundred and thirty metres below the sea bed of Singapore lies a most unusual construction site.

The project, dubbed the Jurong Rock Caverns, is costing about $740m (£450m).

It is currently in its first phase of construction and is due for completion in 2014.

Five oil storage caverns are being dug out under the seabed of Banyan Basin, off Jurong island, a series of mostly-reclaimed islands that house most of Singapore's petrochemical industry.

The BBC's Sharanjit Leyl reports.

With the number of PR applications for landed going down would it drive up the price of condo and drive landed down??

With the number of PR applications for landed going down would it drive up the price of condo and drive landed down??

That what I'm thinking too, it may have an effect of driving condo prices up again, which of course is a benefit to developers, but not upgraders. But I have a feeling that as the quality of HDB flats increase and more BTOs with the likes of Waterway Terraces and Dawson, the perception for HDB flats among Singaporeans will be better, while keeping them affordable. Ultimately I feel that HDB and URA in general will like to let most of the residential areas remain ungated.

Heard there are many left over for the older new flats in matured estates.. nice..

Post by Reporter2 in CondoSingapore

Published October 22, 2011

Dizzy new world of S'pore high rollers

They show up with US$30m in hand, play for stakes never seen before

By GRACE LEONG


WHEN whales come to Singapore, they make a big splash.

Arriving mostly from the Asian region, they are surfacing at Marina Bay Sands with up to US$30 million in hand, ready to roll.

That's the kind of action even Las Vegas - the byword for gambling up until recent years - has rarely seen. Small wonder that bets are on Singapore's gaming duopoly, barely 20 months old, to surpass gaming revenues from the Las Vegas Strip as early as this year.

'There are people who show up with US$10 million, US$20 million, US$30 million, and no one knows who they are until they say: 'I have US$20 million. Can you help me get started on gambling?' ' said Rob Goldstein, LVS's president of global gaming operations at a recent gaming investment forum in Las Vegas. 'That's the market in Singapore. We're unearthing opportunities that hitherto we never saw.'

Even with the absence of licensed junket operators, the size and volume of direct VIP play in Singapore has far exceeded industry expectations - including Mr Goldstein's, a gaming business veteran with experience in the Caribbean, Atlantic City and Las Vegas.

'On credit issuance, it's a whole new world out there,' he said. 'I don't have that much experience with direct credit (funds from VIP players to the casino) of US$10 million to US$20 million a day. It's new to all of us.'

Under existing gaming laws, there are no restrictions on how much funds gamblers can bring into the casinos in Singapore and how they bring it into the casinos.

Typically, many VIP high rollers don't physically bring in such massive sums to the casino, preferring instead to wire a smaller amount to their account at the casino, and getting casino credit.

'We have days on our numbers in Singapore where we have 10-20 people winning or losing US$1 million a day. It's a pretty extraordinary business,' Mr Goldstein said.

Compared with Singapore, Las Vegas doesn't see that level of frequency and size of direct VIP play as there just aren't many people gambling US$1 million a day in Las Vegas.

In Macau, the volume of direct play is dwarfed by the scale of funding brought by junket operators.

Analysts cite Singapore's low gaming tax rate compared with Macau's, which enables Singapore casinos to pay higher commissions to attract direct VIP players.

'The tax structure is designed to bring in foreign money. The tax on VIP business is about 11.5 per cent compared with a 22 per cent tax on mass gaming,' HSBC analyst Sean Monaghan said.

Singapore is also unique in that it has the ability to attract a broader array of high net worth people, many of whom are permanent residents (PRs) with means and who help fuel a good chunk of the local VIP business growth, he said.

'A disproportionate number of high net worth people like visiting Singapore because it's a safe place, family-friendly and business-friendly. In Macau, over 90 per cent of the wealth comes from China and North Asia. But in Singapore, most of the wealth comes from Southeast Asia, and some from North and South Asia. It's far more diversified,' Mr Monaghan said.

Case in point, Mr Goldstein said he recently met a 'very, very big businessman' from Vietnam who attracted attention at the MBS casino because he was betting house limits. 'I asked him: 'How did you find us?' He said he has a vacation home in Singapore and wants to try out gambling here. I asked him why he doesn't go to Macau. He said he feels comfortable in Singapore.'

Cannibalisation of business between the Macau and Singapore gaming markets hasn't been an issue so far, Mr Goldstein said.

'Singapore is a spectacular market at all levels. The mainland Chinese, Japanese, Singaporeans, Indonesians and Malaysians are all our customers here . . .One reason credit here has been a good experience for us is that we're dealing with people who are very wealthy, and very liquid, and money is available to them in terms of the banks here,' he said.

'The private wealth business is wildly positive for us as is the desirability of this property (MBS). There are people who just won't go to Macau. They prefer Singapore because of the easy access, great airport, retail, tourism market. It's a privileged place to do business,' he said.

But seriously, the plot at Bidadari looks really good..

But seriously, the plot at Bidadari looks really good..

With existing new property at Potong Pasir and Woodleigh going up to $1,450psf, anyone can see how attractive it is.

With existing new property at Potong Pasir and Woodleigh going up to $1,450psf, anyone can see how attractive it is.

Resale or new? MM units again? NiN?

With existing new property at Potong Pasir and Woodleigh going up to $1,450psf, anyone can see how attractive it is.

why is Potong Pasir $1450psf?

why is Potong Pasir $1450psf?

Why not?

Resale or new? MM units again? NiN?

Yes Nin Residences. And also a recent subsale at 8@Woodleigh for a MM unit.

Not surprising..

Likely to be a studio unit / MM. But it is still a good $psf. Price will go north in this area with the announcement of development in Bidadari.

No more MM units nestled in landed housing areas.
http://www.ura.gov.sg/circulars/text/dc11-14.pdf

Measures to Improve the Living Environment for Non-Landed Residential Estates through the Following:
a) Minimum Plot Size for Flat Developments Island-Wide
b) Guide on Maximum Allowable Number of Dwelling Units for Flat and Condominium Developments in Residential Areas Zoned for GPR 1.4

Basic Points:
1. A minimum plot size requirement of 1,000sqm is introduced for all new flat
developments island-wide to safeguard a better quality residential development.
This will align flat developments with other residential developments like landed
housing and condominiums which also have minimum plot size controls.

2.To ensure that redevelopment carried out within GPR 1.4 residential estates can
be supported by the local infrastructural capacities, a guide on the maximum
number of dwelling units (DUs) for flat and condominium developments within
GPR 1.4 residential estates is introduced using the following formula:
Maximum number of DUs per development ≤ (MP Allowable GPR x Site Area)/70sqm

3. To better address these local issues, URA and LTA have jointly studied the
road capacity of Telok Kurau Estate to ensure further redevelopment within the
estate is carried out at a more sustainable manner. Based on the study, in
addition to the minimum plot size requirement of 1,000sqm for flat
developments, a more stringent guide on the allowable number of DUs for flat
and condominium developments within the Telok Kurau Estate is applicable
using the following formula:
Maximum number of DUs per development ≤ (MP Allowable GPR x Site Area)/100sqm

4. Besides Telok Kurau Estate, URA and LTA have also identified 2 more estates
– Kovan and Joo Chiat/ Jalan Eunos (see Appendix 3-5), as potentially
problematic GPR 1.4 clusters because of their critical mass, with these being
the 2 largest GPR 1.4 clusters across the island. Hence, the potential
cumulative effect of redevelopment at these areas could pose a more severe
strain on the local infrastructure than other GPR 1.4 clusters island-wide.

5. A detailed joint study between URA and LTA is currently underway for these
two areas to determine if more stringent DU guides, similar to those applied to
Telok Kurau Estate, are required based on the infrastructural capacity of the
area. The study is expected to be completed by the 3Q of 2012

Report pointed to Joo Chiat, Kovan and Telok Kurau.

Specifically, it points to all residential estates with GPR=1.4. This include Tanjong Katong/Dunman Rd area, Upper East Coast Rd (Bedok South) area, Bartley/Upper Serangoon Rd area, and Jln Jurong Kechil area, which are also starting to see a few MM developments as well. The Joo Chiat, Jalan Eunos and Kovan areas have pretty rampant building of MM developments, and hence URA is contemplating applying the more stringent max. unit restriction similar to Telok Kurau for these 3 areas.

Are estates with GPR > 1.4 included? Or less than 1.4 excluded?

GPR < 1.4, I don't think you can even build flats/apartments, if there is any site with max GPR < 1.4. This rule applies to all sites with GPR=1.4.

Landed home prices to fall in some areas after new rules, say analysts
by Wong Siew Ying
Nov 26, 2011

SINGAPORE - Prices of landed homes in Telok Kurau, Kovan and Joo Chiat could fall by 10 to 20 per cent following the introduction of new rules by the Urban Redevelopment Authority (URA) to limit the number of apartments that can be built in low-density housing areas, property analysts said.

The rules, which kicked in on Thursday, are more likely to affect smaller developers, the analysts said. The plot size for all new flat developments in Singapore must now be at least 1,000 sq m and there is a cap on the number of units that can be built in a project in certain areas to prevent overcrowding.

Homeowners hoping to sell their plots for redevelopment in the areas identified by the URA as "problematic" will be particularly hit, analysts said. According to its circular to professional institutes, the URA named Telok Kurau, Kovan and Joo Chiat/Jalan Eunos estates.

Mr Eugene Lim, key executive officer at property consultancy ERA, said: "Developers are known to pay higher prices for land because they know they can build small units and they can price them at higher per square foot.

"There are now restrictions. You will see developers being less aggressive in their bids and we could possibly see prices for land in these areas coming down by as much as between 10 and 20 per cent."

With the new requirements, developers will not be able to build as many units on the site. For instance, in the past, a 1,000-sq-m plot would yield about 20 units, but now the developers can build just over 10 units on the same plot.

Because the URA has limited the number of "shoebox" or small units that can be built in a project in order to improve the overall living environment, analysts said developers will now have to rethink their marketing strategy.

"If you are looking at a much larger unit, say about 1,200 sq ft and you are hoping to sell at the same unit price of S$1,000 psf, then you are talking about close to S$1.2 million, as opposed to less than a million kind of quantum. Therefore it may not be easy to sell," said Ms Chia Siew Chuin, director of Research & Advisory at Colliers International.

But the upside of the new rules is that housing units will be better designed, more spacious and with larger areas for landscaping.

Depending on whether there will be a continued demand for 1-2 bedroom units with a low quantum, this will cause the supply of such units to dampen. If market conditions remain, this would have caused the smaller units in area with GPR>1.4 to jump. However given current market conditions, there should not be a lot of effect on the prices. All in all I think the timing and the restriction itself is a calculated move. On one hand implementing such a rule would have undesirable effects of unbalancing the prices of landed vs shoebox units one year ago, on the other hand doing so now will likely stabilize the market if in case there is an imminent crash given that the eurozone crisis goes out of hand.

Wow, flooding affecting AMK area too?!

--------------------------------------------------------------------------------------------------------
Heavy rains flood FairPrice supermarket
Posted: 28 November 2011 1948 hrs

SINGAPORE: Heavy rains on Monday afternoon caused flooding in a supermarket in Ang Mo Kio.

An NTUC FairPrice branch located at Block 712, Ang Mo Kio Avenue 6 saw ankle-deep water seeping up to its cashier area.

FairPrice said the incident happened at about 3pm. It added staff reacted immediately by escorting customers out to ensure their safety.

The affected areas were cleaned up within the hour.

Business resumed shortly after when it was ascertained that the goods on the premises are not affected and the safety of customers not compromised.

FairPrice said it is working with the building management and town council to determine the cause of the water seepage, and to ensure such an incident does not happen again.

Landed may be heading down but non-landed still upward trend?!

----------------------------------------------------------------------------------------------------------
Private non-landed home prices resume upward trend in Oct
By Millet Enriquez | Posted: 28 November 2011 2024 hrs

SINGAPORE: Prices of private non-landed homes in Singapore resumed their upward trajectory in October, according to figures from the National University of Singapore (NUS).

The NUS Singapore Residential Price Index (SRPI) rose 0.9 per cent from the previous month, after a decline of 0.1 per cent in September.

SRPI is a transactions-based index that tracks the month-on-month price movements of private non-landed residential properties in Singapore.

The SRPI Small Unit index also rose by 0.9 per cent, after a decline of 3.5 per cent in September.

This index tracks the volatile prices of small units measuring 506 square feet or smaller, also known as shoe-box units.

Excluding small units, private non-landed home prices in the central region rose 1.0 per cent in October, a turnaround from the 0.4 per cent fall in September.

In the non-central regions, prices of such properties increased by 0.8 per cent, after rising 0.1 per cent the previous month.

SINGAPORE: Three new residential sites for private housing have been released under the Government Land Sales (GLS) Programme.

The sites are at Mount Vernon Road, Jalan Lempeng and the Kovan Road/Simon Road area.

The Urban Redevelopment Authority and the Housing & Development Board said the sites are for sale on Tuesday, by public tender.

Together, they are expected to yield about 1,830 units, adding to the 14,945 units launched under GLS this year.

The 2.1-hectare land parcel at Mount Vernon Road is near Bartley MRT station and can provide potentially some 785 housing units.

The 2.4-hectare land parcel at Jalan Lempeng is near Clementi Town Centre and can potentially yield about 685 housing units.

Meanwhile, the 1.7-hectare land parcel at Kovan Road/Simon Road in the north east can potentially yield about 360 housing units.

- CNA/wk

The Kovan Rd site has a PR of 2.1 but also comes under the recent restriction for max no. of units. The max given by URA is 509, or an average of 70sqm per GFA per unit.

The Kovan Rd site has a PR of 2.1 but also comes under the recent restriction for max no. of units. The max given by URA is 509, or an average of 70sqm per GFA per unit.

I thought the restriction applies to site with PR of 1.4.

I thought so too, but it seems that for all NEW sites in the problematic areas (Kovan, Joo Chiat, Telok Kurau and Jalan Eunos), URA is extending the rule to include those with PR>1.4. Makes me wonder though, why in the first place would they want to give a Max.PR of 2.1 for that site?

I thought so too, but it seems that for all NEW sites in the problematic areas (Kovan, Joo Chiat, Telok Kurau and Jalan Eunos), URA is extending the rule to include those with PR>1.4. Makes me wonder though, why in the first place would they want to give a Max.PR of 2.1 for that site?

^^ Will this affect Masterplan 2012?

Not at all, because it's Concept Plan 2011/12, not Master Plan. Next Master Plan is scheduled for release at 2013/14.

Landed may be heading down but non-landed still upward trend?!

----------------------------------------------------------------------------------------------------------
Private non-landed home prices resume upward trend in Oct
By Millet Enriquez | Posted: 28 November 2011 2024 hrs

SINGAPORE: Prices of private non-landed homes in Singapore resumed their upward trajectory in October, according to figures from the National University of Singapore (NUS).

The NUS Singapore Residential Price Index (SRPI) rose 0.9 per cent from the previous month, after a decline of 0.1 per cent in September.

SRPI is a transactions-based index that tracks the month-on-month price movements of private non-landed residential properties in Singapore.

The SRPI Small Unit index also rose by 0.9 per cent, after a decline of 3.5 per cent in September.

This index tracks the volatile prices of small units measuring 506 square feet or smaller, also known as shoe-box units.

Excluding small units, private non-landed home prices in the central region rose 1.0 per cent in October, a turnaround from the 0.4 per cent fall in September.

In the non-central regions, prices of such properties increased by 0.8 per cent, after rising 0.1 per cent the previous month.

Landed is not likely to go down other then the 3 areas mentioned, which is a direct result of restrictions on MM units built on former landed plots. If you refer to URA's latest reports, landed housing has outstripped non-landed with growth of more than 3% Q-on-Q (non-landed recorded less than 1% growth). If you have long money, landed is the way to go as this segment has historically demonstrated consistent growth above inflation and is subject to less speculative activity. Investments in Landed housing in land scarce Singapore makes a very compelling reason to be exposed to this segment if you can afford it.

Thanks y2Koh.

Separately ...

URA awards tender for site at Jelebu Rd
By Millet Enriquez | Posted: 02 December 2011 1938 hrs

SINGAPORE: The Urban Redevelopment Authority (URA) said it has awarded the tender for the commercial and residential site at Jelebu Road/Petir Road to Sim Lian Land and Sim Lian Development.

The firms submitted the highest bid of S$492.8 million for the site in a tender that closed on November 30. The price translates to around S$8,667.73 per sq m.

Launched for sale on October 11, the 99-year lease site measures 18,954.5 sq m and has a gross floor area of 56,864 sq m. It is also integrated with a bus interchange.

URA said at least 19,903 square metres of the maximum permissible Gross Floor Area (GFA) for the development must be for commercial uses.

The site attracted a total of 10 bids.

- CNA/fa

The market is stirring again??

The market is stirring again??

Not necessary, just that the site is in a location that is extremely good. On top of MRT and LRT stations, an integrated bus interchange, near to a major junction, in a matured estate, private property on the south, a huge catchment of young residents for the commercial component, height restriction of >100m AMSL, it's basically as good as Punggol Central, if not, better.

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1170002/1/.html

Additional buyer's stamp duty for private property from Dec 8

SINGAPORE: The government has imposed an Additional Buyer's Stamp Duty (ABSD) for private property of between 3 per cent and 10 per cent for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market.

The changes take effect on December 8.

Foreigners will pay 10 per cent Additional Buyer's Stamp Duty (ABSD) for any residential property.

Permanent Residents owning one and buying second and subsequent properties will pay 3 per cent ABSD.

Singaporeans owning two and buying a third and subsequent residential properties will pay 3 per cent Additional Buyer's Stamp Duty.

The ABSD will be imposed over and above the current Buyer's Stamp Duty, which are 1 per cent on the first $180,000 of purchase consideration or market value of the property (whichever is higher), 2 per cent on the next $180,000 and 3 per cent for the remainder.

In a joint statement on Wednesday, the Finance and National Development ministries say the government's objective is to promote a sustainable residential property market where prices move in line with economic fundamentals.

They said prices of private residential properties have continued to rise, albeit more slowly in the last two quarters.

Prices are now 13 per cent above the peak in the second quarter of 1996, and 16 per cent above the more recent peak in the second quarter of 2008.

They said that even with the current economic uncertainties, the demand for private residential property remains firm.

Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract local and foreign investors.

They added that excessive investment demand will make the property cycle more volatile, and thus increase the risks to Singapore's economy and banking system.

The government said the higher ABSD rate for foreign buyers in particular is necessary, in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market.

The government said foreign purchases account for 19 per cent of all private residential property purchases in the second half of 2011, up from 7 per cent in the first half of 2009.

For purchases made jointly by two or more parties (eg a Singaporean with a PR, or a PR with a foreigner), the higher applicable ABSD rate will be imposed.

For example, if a citizen purchases a property with a foreigner, the ABSD of 10 per cent will apply.

In the case of a joint purchase by Singaporeans, who each already owns properties, the ABSD of 3 per cent will apply as long as one of the purchasers already owns two properties.

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam, said: "We have always had open markets and must keep them that way. However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low.

"The additional buyer's stamp duty should help cool investment demand, and avoid the prospect of a major, destabilising correction further down the road."

Nicholas Mak, Executive Director of Research and Consultancy at SLP International, said: "It will curb investment demand for private residential properties quite drastically, especially demand from non-resident foreigners. And I think in the next one to two months or so, demand from non-resident foreigners will almost dry-up."

Home buyers are mixed in their views.

One Indian foreigner said: "I know there is a stamp duty, but any increase in that will probably take it out of my level where I want to buy."

An Indian who is a Permanent Resident said: "Nowadays, HDB properties are also difficult to buy, because of more conditions. So they have to buy property here. Definitely they'll keep buying more irrespective of whether the stamp duty is increased or not."

One Singaporean said: "It probably wouldn't have an effect in the short-term, because the property market prices are still rising, people are still speculating."

Minister for National Development Khaw Boon Wan said: "We are ramping up the supply of new Executive Condominium units through the Government Land Sales Programme.

"This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only."

Singaporean first-time buyers and upgraders, and buyers of HDB flats will not be affected by the new measure.

Certain reliefs will be provided so that the measure will not impact home occupation demand by residents.

For example, relief will be provided for Singaporean-foreigner/PR married couples buying their homes.

Reliefs will also be provided for qualifying developers and for purchases falling within the scope of Singapore's international trade agreements.

The government will continue to ensure an adequate supply of private housing to meet-medium term demand.

There are 41,000 unsold private housing units in the pipeline.

The government will inject sites that can potentially yield a total of 14,100 units in the 1H2012 Government Land Sales (GLS) Programme, similar to the supply in previous GLS programmes.

Of these, about 7,000 units will be from sites on the Confirmed List.

These numbers take into account the ample pipeline supply and the dampening effect of the ABSD.

The government will also expand the supply of executive condominiums (ECs) in 2012 and is prepared to release sites that can potentially yield 5,000 EC units for the entire year.

Sites for 3,500 EC units will be made available in 1H2012, including 3,000 EC units on the Confirmed List.

The Confirmed List quantum is comparable to the 3,000 EC units from five sites sold for the whole of 2011. More details will be provided in the press release for the 1H2012 GLS Programme on MND's website.

The Government will continue to monitor the property market and adjust its property policies in step with changes in the market and the economy.

- CNA/de

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1170002/1/.html

Additional buyer's stamp duty for private property from Dec 8

SINGAPORE: The government has imposed an Additional Buyer's Stamp Duty (ABSD) for private property of between 3 per cent and 10 per cent for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market.

Cooling measures: A bolt out of the blue

Sales will be slower in coming weeks, maybe even months
by Colin Tan
04:45 AM Dec 08, 2011

The announcement of the latest set of cooling measures for the residential market yesterday probably drew extreme emotions from many in Singapore - either cheers or despair, depending on which side you are on.

The emotions - accentuated by the fact that it came right out of the blue - are probably enough to induce a heart attack, some would say.

The new rules were specifically targeted at investment buys, while the announced plans to increase the supply of Executive Condominiums recognises the fact that the majority of potential upgraders have been largely left out of the current market run-up.

The announcement probably came as a shock to many but you could say the warning signs were there, the increased buying from foreigners and the ever shrinking apartment sizes being offered on the market.

However, it does not mean that all investment buys will be affected as the rules left just enough room for some investment buys by Permanent Residents (PRs) and Singapore citizens. PRs buying their first property and citizens their second property onwards are not affected.

Already people are asking me whether the new measures will induce a price correction? It really depends on the reaction of developers and how much of the current purchases are investment buys.

If the majority of buyers have been investors, the measures have the equivalent effect of a sudden price increase of 3 per cent or more on the market.

Sales will be a lot slower in the coming weeks or maybe even months. Investors may stay away while genuine buyers will take their time to commit. Depending on how long this phase drags on, some developers may panic and start offering bigger discounts.

However, if they hold their nerve, there is enough liquidity in the market to overcome this latest set of measures, provided of course, the expected economic slowdown next year does not hit us hard.

Look at it from another perspective, if Sentosa Cove is a "carrot" scheme to attract more people to take up residence in Singapore, can this be considered a "stick" scheme to get more foreigners to take up PR or even Singapore Citizen status in Singapore?

Furthermore note the following:
Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD of 10%

I think the key to this rule is also to plug the loophole once and for all, for those who chooses the shortcut of setting up a BVI registered company to buy a property, and circumvate the 16% Seller's Stamp Duty rule implemented 11 months ago.

Furthermore note the following:
Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD of 10%

I think the key to this rule is also to plug the loophole once and for all, for those who chooses the shortcut of setting up a BVI registered company to buy a property, and circumvate the 16% Seller's Stamp Duty rule implemented 11 months ago.

^^ That's an interesting angle.

Property cooling measures may cause price correction: agency
Posted: 08 December 2011 1241 hrs

SINGAPORE: At least one real estate agency thinks the immediate reaction to the latest cooling measures will be a slowdown in the private property market.

CEO of PropNex Realty Mr Mohamed Ismail said he expects a price correction of approximately 15 to 20 per cent in the central core region and a correction of 10 to 15 per cent in the mass market segment in the next six months.

Propnex also expects transaction volume to dive by as much as 40 per cent in the core central region and by as much as 20 per cent in the mass market segment.

Under the latest changes, foreign buyers of private properties in Singapore will now have to fork out 10 per cent more in stamp duty while permanent residents and Singaporeans are also affected with an increased stamp duty on their second and third properties respectively.

Propnex said the new measures could have been targeted to preserve affordable pricing in the mass market segment - homes costing less than S$2 million where prices have surpassed S$1,000 psf.

It argues that having a blanket policy will impact the high-end market which has been the investment interest of the foreign buyers.

- CNA/ck

Today's ST mentioned that analysts believed the landed segment would be immuned from the latest measures since foreigners are generally not allowed to buy freehold landed properties. I do expect this segment to see increased activities in the coming months as the focus get shifted away from condos. Believe you me, there are many rich singaporeans who still are looking for physical assets to park their money as a hedge against inflation.

Business Times - 10 Dec 2011

A different take on latest property curbs

Let's have more carrots for Singaporeans instead of wielding the stick on
foreign buyers. By Ku Swee Yong

THE latest round of measures to promote what the government claims would be
'a stable and sustainable property market' begs many questions. Let's begin
with the basic parameters. First of all, the additional buyer's stamp duty
(ABSD) is applicable only to the private residential segment, not to other
segments such as office, retail, industrial, HDB shops, HDB flats, Executive
Condominiums (ECs), etc. So perhaps a more appropriate claim should be 'a
stable and sustainable private real estate sector'.

Next, the key objective listed was 'to promote a sustainable residential
property market where prices move in line with economic fundamentals'.

Prices of private residential properties have continued to rise, albeit more
slowly in the last two quarters. According to the Urban Redevelopment
Authority, prices are now 13 per cent above the peak in Q2 1996 and 16 per
cent above the more recent peak in Q2 2008.

In the many overseas seminars I have spoken at, I am always happy to
reassure investors that as a broad guiding principle, foreigners and
Singaporeans are not treated any differently when investing in Singapore.
However, now we have imposed a 10 per cent ABSD on foreigners who purchase
residential units. If we apply these stamp duties on the residential real
estate asset class, does it imply that other asset types, such as commercial
properties, stocks, capital equipment, cars, COEs, etc are also likely
future candidates for additional stamp duties if the public perception is
that a particular asset is beyond Singaporeans' reach?

Or, if the stock market becomes too hot and the Straits Times Index
surpasses the October 2007 peak of 3,850 points by 20 per cent, reaching,
say, 4,600 points, will the authorities also implement higher stamp duties
on foreigners' stock investments, 'owing to the small market size of the
SGX' to make the stocks more affordable for Singaporeans?

What about stamp duty on foreigners' purchase of COEs because the COE pool
is limited? What is the significance of measuring our private residential
prices against the previous peaks? And what has this got to do with
foreigners today, given that in 2006-2008, prime properties such as St Regis
Residences, Ardmore II, Sentosa Cove, Orchard Residences and were snapped up
mainly by foreigners.

Most foreigners invested in Singapore's long-term future as part of their
portfolio diversification and wealth protection for their families. Why were
such measures to curb foreign ownership (individuals, families or
institutional funds) of residential properties not implemented at that time
when the luxury residential sector was booming hot?

I have expressed in several articles that the climb in the private
residential index is the result of strong sales at new record prices in
mass-market launches. This climb is mainly contributed by Singaporeans and
Singapore permanent residents (PRs). The proportion of foreigners purchasing
in the mass market is low, at 10-20 per cent as the mass-market residential
segment is not considered 'investment grade'. I have also provided data to
show that foreigners have not been significant contributors to the increase
in mass-market home prices.

The fundamental cause of the climb in mass-market prices has been the
strength of HDB resale prices, where the rate of growth is higher than that
of the private residential index. Owners of HDB flats feel confident about
the rising values of their flats. And since money in savings accounts
devalues due to the prolonged 5 per cent inflation, and mortgage costs are
low, they look for safe, secure investments. This leads them to purchase
private residential properties for rental income and as an inflation hedge.

Unfortunately, the new measures do not address the rising HDB resale prices
and so the effect on mass-market private apartment prices may be limited.
Likewise, newly launched ECs and ECs that are not yet privatised will not be
hit hard in terms of volume and price.

I believe that landed properties may suffer a direct, but limited, impact. A
handful of Singaporean investors who buy many landed properties for the long
term will be affected. They may not mind paying the extra 3 per cent ABSD if
they can find their ideal landed property investments. That said, a Good
Class Bungalow (GCB) collector wishing to invest in a $30 million house will
be paying around $1.8 million (6 per cent) stamp duty if this were his third
or more residential property. If he were to purchase the GCB under a trust,
for wealth transfer purposes, a $3 million stamp duty would also apply.

This round of measures will positively benefit the strata office, retail and
industrial segments of the property market. Many mass-market investors will
surely flock to these products, as well as more exotic overseas properties.
We should expect to see more 150-sq-ft retail units or tiny industrial units
for sale. Time will tell whether such investments will turn out to be stable
and sustainable for the property market, or not.

The biggest impact will be felt by developers of luxury residences who are
more dependent on foreign investors. Several developers have overseas sales
offices to promote their Singapore residential products. However, foreign
investors wishing to buy a $10 million Orchard Road property will now think
many times about paying almost $1.3 million (13 per cent) in buyer stamp
duties. This is not a measure that increases the amount of equity foreign
investors need to put into their properties; it is a tax which once paid
cannot be recovered. Our residential market has just got uglier in terms of
investment returns.

The other stakeholder group directly hit by the measures are the real estate
agents, many of whom are active in promoting Singapore residential
properties in Indonesia, China, Malaysia and Hong Kong. Following closely
behind would be the relationship managers in private banks active in
prospecting foreign high-net-worth individuals (HNWIs) and getting them to
park their investments under Singapore trusts. Then we have the priority
bankers, the mortgage bankers, the contractors and interior designers who
serve the high end market. Many rice bowls, if not already shaken by the
global jitters, will surely be shaken now.

My main worry remains: What is the signal perceived by foreigners?

There are genuine foreign buyers who prefer to purchase the roofs over their
heads. For example, A*Star and our medical fraternity have gone overseas to
attract foreign doctors and medical researchers to work in Singapore. They
may relocate here for our high quality of medical practice but these
professionals also need homes for their families. Not every foreigner likes
to pay rent. Many prefer to build up equity through purchasing their own
homes and taking bank loans.

There is another group under the MAS Financial Investor Scheme (FIS) worth
mentioning. HNW families applying for the FIS invest $10 million into
Singapore are allowed to apply $2 million towards the purchase of a
residential property for their own use. Probably the most expensive PR
scheme in the world, the FIS has a long queue of HNWIs, some having waited
over a year for approval. The latest measures mean that if they choose to
apply $2 million of their $10 million investment into a residential unit,
they need to pay ABSD in excess of $260,000 depending on the value of the
property purchased.

Overall, I think these measures will effectively grind the luxury
residential segment to a crawl. Foreign residential property funds will also
surely stay out while this tax is in place. The measures could be less
effective in the mass markets, given the bulk of Outside Central Region
(OCR) launches are snapped up by Singaporeans who feel confident about their
rising HDB valuations. Recall the queues and fast-paced sales at recent OCR
launches.

I would hope for a tweak in the policy to allow foreigners to buy their
first home at the existing 3 per cent buyer stamp duty. Many foreigners are
here to work and to settle down with their families and they have a genuine
need to own one home for shelter. Singapore is a country made successful by
the influx of foreigners in the last two centuries and it must remain an
open economy in order to survive. The Economic Development Board, the
Monetary Authority of Singapore and other government agencies' efforts to
attract foreign investors to our shores may be tougher if this signal were
read negatively as a protectionist measure.

Foreigners who are already settled here but who have not purchased their
homes may feel short-changed by such discriminatory policies, especially
when there is insufficient evidence that foreigners are the main cause for
the rise in home prices.

With the new measures, are we signalling: Our right hand welcomes you while
our left hand blocks you from getting a comfortable life? Would we want the
government agencies to slow down the pace in attracting foreign financial
institutions and MNCs to expand in Singapore? That will reduce demand for
housing but it will also weaken the robust job environment.

This policy aimed at foreigners will harm our reputation as an investment
capital. Instead of penalising foreigners with heavy taxes, we could give
more incentives to support Singaporeans and Singapore PRs. Already,
loan-to-value ratios for purchasing properties are more attractive for
Singaporeans than those for foreigners. Let's have more carrots for
Singaporeans instead of wielding the stick on foreigners.

* The writer is CEO of International Property Advisor Pte Ltd and author of
the book: 'Real Estate Riches - Understanding Singapore's property market in
a volatile economy'

Ku Swee Yong dont understand that this 15% foreigner tend to pay a much higher price for a unit as compared to previous transaction thus escalating the spiral in property prices preventing sporean (even for the higher middle class) from buying private condo.

To believe that your property will depreciate is unthinkable to all Singaporeans. Why implement something that will erode the price of resale HDB or private?

How much property prices will depreciate will depend on how Singaporeans react. Just last weekend, Singaporeans are already visiting showrooms and asking for "discounts", even foreigners are asking for offsets for stamp duty.

So how long can people wait? Developers in Singapore generally have holding power, that is assisted by the low interest rates. Prices may depreciate by 5% immediately, and 10% in slightly longer term if sentiment remains low, but if developers can sustain this pricing, in a few months time people will start jumping in again believing that prices have hit bottom.

The hardest hit will be the ones above $2k psf, luxury apartments in the CBD. These apartments are regarded as "out of reach" category of housing by Singaporeans, buyers are often foreigners especially in the resale market. In the short term definitely there will be a drastic drop in prices, but there is a limit. If OCR developments in very good locations drop 10% to $0.9-1.2k psf, approximately $1.4-1.7k psf will be the limit for CCR apartments, that is when locals will jump in to grab the "cheap" goods.

Property developers UOL Group and Singapore Land have witnessed strong take-up at their joint condo development, Archipelago (http://www.propertyguru.com.sg/new-homes-listing/archipelago-2188). The consortium sold slightly more than 100 of the 190 units released for preview sales, which began last Friday.
With an average price of S$1,000 psf, the five-storey 99-year leasehold project is located within 500 metres from the upcoming Bedok (http://www.propertyguru.com.sg/condos/bedok-upper-east-coast) Town Park MRT station.
According to The Business Times, about eight to 10 of Archipelago’s 24 strata semi-D homes have been snapped up. Priced from S$3.1 million to S$3.5 million, these units have a strata area of approximately 4,400 sq ft.
The cheapest three-bedroom units cost S$1.18 million, while the 527-sq-ft one-bedroom units are priced from S$590,000. The 1,650-sq-ft four-bedroom units are available from S$1.7 million.
More than 20 percent of Archipelago’s buyers are foreigners (including PRs), comprising mainland Chinese, Taiwanese, Indonesians, Malaysians and Australians.
The development does not require foreigners to secure permission from the Land Dealings (Approval) Unit to purchase strata landed homes that are within a development with condominium status, which makes the project popular among foreign buyers.

http://www.singaporerealestate.info/property%20price%20index%201960%20to%202010.htm