Property Market Trends #2 [Archive] - Page 2

shctaw

May 24th, 2007, 01:50 AM

有地房地产后市看好

李韵玲译　(2007-05-20)

　　火热的私人房地产市场过去一年里成为全城的焦点，街头巷尾大家都在谈论这个热门话题。

　　我国整体屋价自2004年开始复苏，但回升的步伐相当缓慢，2004年和2005年分别上涨了0.9％和3.9％。直到2006年，屋价才大力回弹，全年飙涨了10.2％。在豪华公寓的销售表现的刺激下，整体房屋价格再接再厉，在今年第一季里继续飙升4.8％。

　　从市区重建局最新发布非有地房地产价格数据可见，过去一年多来，引领我国房屋市场走俏的无疑是高档私人公寓。非有地房地产价格在2004年微起1.1％，2005年增长也仅有4.5％。到了2006年，非有地房地产价格的上涨速度加快了，达11.1％；今年第一季更取得5.3％的增长。

有地房地产价格在过去两年分别上扬2.4%和6.7%，今年第一季起2.9%。

　　与高档私人公寓处于同一阶级的有地房地产，命运又如何？有地房地产的需求是否能跟上私人住宅市场直冲云霄的势头？

　　虽然有地房地产价格并没有像高档私人公寓那样在过去一年上多次头条，价格增长步伐追踪了整体市场的走势。从2004年的0.6％增长，有地房地产的价格在2005年、2006年和今年第一季里分别起了2.4％、6.7％和2.9％。

独立式洋房增长最大

　　如果将有地房地产分类，独立式洋房的价格增长最大。根据市区重建局的数据显示，独立式洋房的价格继2006年的8.1％增长，在今年第一季上涨了4％。半独立式洋房以及排屋的价格则在去年分别取得5.3％和5.2％的增长，并在今年持续上扬1.8％和2.1％。

　　独立式洋房也包括优质洋房（Good Class Bungalow），在豪华住宅需求暴涨的刺激下，价格增长尤其显著。至于其余的有地房地产，价格在过去一年只享有适度增长。这是否意味有地房地产像大众市场公寓一样，需要多一些时日才能赶上“表兄”高档私人公寓的步伐？

　　尽管如此，市场存在许多有利因素为有地房地产市场营造光明前景。

　　首先，由于有地房地产价格攀升的速度没有非有地房地产来得快，买家可找到优质住宅。不包括优质洋房在内，有地房地产的适度价格增长对于没有能力购买黄金地段豪华高档公寓的本地买家来说，更具吸引力。

　　二来，在寸土如金的新加坡，有地房地产被视为稀有商品。截至2007年3月，我国有6万8402个有地房产，占总私人房产（23万3195个单位）的29％。由于物以稀为贵，拥有有地房地产将一直是富裕新加坡人的最终目标。

租金价格显著改善

　　此外，投资有地房地产能为买家赚取固定收入。新加坡一向积极吸引外国专业人士前来，给出租住宅市场提供源源不绝的需求。对于在自己国内习惯居住在有地房产，但因限制而无法在本地购买这类房地产的外来人才来说，租用是唯一途径。　

　　市区重建局的数据显示，各种类的有地房地产的租金在今年第一季里有显著的改善。在今年首三个月里，独立式洋房的租金上涨了5％，随后的是半独立式洋房，租金起了4％；排屋的租金涨幅最大，达6.5％。相比有地住宅的资产价值，其租金增长的幅度更可观。

　　打个比方，位于莱道路的独立式洋房的租约，最近就以每月2万6000元租金续约，这比之前每月2万1900元的租金高了19％。另一位于巴慕乐区的独立式洋房，以每月1万1000元的租金续约，比之前的每月9000元租金多了22％。

　　以供应的角度来说，有地房地产在可预见的将来继续是稀有商品。接下来五年里，有2465个有地房地产目前已处于施工阶段，另外2646个则已在规划中。相比目前已在建设中的4万8141个非有地住宅单位，加上另外3万1513个还没开始施工的新单位，从2007年第二季到2011年之前将陆续登场的新一批有地房产，只占所有新私人住宅供应的6.2％。

有望取得10％的增长

　　纵观以上种种因素，有地房地产价格接下来可能取得10％的增长似乎已成定局。只要买家能了解有地房地产不单只是投资，而且有带来租金收入的潜能，价格上涨的幅度目前并没有豪华公寓来得大，有地房地产的需求相信将持续增加，价格肯定会被炒高。

　　基本上，有地房地产在新加坡这个城市国家里是稀有商品的根本事实，将在中期到长期里推动这类房地产的价格步步高升。

shctaw

May 24th, 2007, 01:55 AM

Just Visiting 2007

May 24th, 2007, 04:03 AM

.

The market must be crazy...........

My favourite quotation on insanity in from Einstein: “Insanity: doing the same thing over and over again and expecting different results.”

By this measure, people buying as prices rise is the most sane thing to do! :lol:

I really support the government's bold measures in remaking Singapore. This time is a real re-making, no the glasnost, "lip service" version of post-1997.

Yesterday I heard a successsful business contact talk about Singapore being able to lead HK in prices for the first time. To me its an incredibly powerful statement. As harsh as its sounds, I think most of us at some level still think we are inferior to HK in many ways.

nav14

May 24th, 2007, 04:04 AM

I was waiting to book a unit of Novelis @ Novena.

I waited until 8 pm on 23 May 2007 until I found out that the whole block was sold to 1 buyer.

I thought this is a so-so investment only, did not know there is an investor willing to buy up the whole block.

I think the price is $1400-1500 psf.

The market must be crazy...........

Anyone who pays 1400-1500psf for Novelis which has only 24 units,built on 9000sf plot, located next to a hospital and where mosts units are odd shaped must be crazy. For that price, the investor will be better off buying a sub-sale Newton Suites or Park Infinia or even City Edge(located behind Novelis) for 1200psf -1300psf. What is this with people who only want to buy newly launched developments even if the price is higher than other better located condos which are under construction. Is this buyer expecting to sell his Novelis units at higher prices than PI or Newton Suites in future?

shctaw

May 24th, 2007, 04:50 AM

Anyone who pays 1400-1500psf for Novelis which has only 24 units,built on 9000sf plot, located next to a hospital and where mosts units are odd shaped must be crazy. For that price, the investor will be better off buying a sub-sale Newton Suites or Park Infinia or even City Edge(located behind Novelis) for 1200psf -1300psf. What is this with people who only want to buy newly launched developments even if the price is higher than other better located condos which are under construction. Is this buyer expecting to sell his Novelis units at higher prices than PI or Newton Suites in future?

NowI heard the buyer willing to let go if anyone willing to pay $1.8k psf.

I just :lol: :lol: :lol: :lol: :lol: .

Sailorman

May 24th, 2007, 05:00 AM

My favourite quotation on insanity in from Einstein: “Insanity: doing the same thing over and over again and expecting different results.”

By this measure, people buying as prices rise is the most sane thing to do! :lol:

I really support the government's bold measures in remaking Singapore. This time is a real re-making, no the glasnost, "lip service" version of post-1997.

Yesterday I heard a successsful business contact talk about Singapore being able to lead HK in prices for the first time. To me its an incredibly powerful statement. As harsh as its sounds, I think most of us at some level still think we are inferior to HK in many ways.

How can we compare with HK.Look at their history,the ppl and culture.
It will take us another generation to be at their present level.We dont have their natural landscape or hills.Their harbour is alive.Ours are just for goods and containers and cranes.They have mountains behind,nice islands and bays.We have only one bay.We are flat and flat.Climate and geographically we dont measure up.Maybe we can compare with Johore and Indo lah.

Just Visiting 2007

May 24th, 2007, 05:12 AM

Sailorman

May 24th, 2007, 05:16 AM

By the way my significant half is a HK gal.

nav14

May 24th, 2007, 05:51 AM

How can we compare with HK.Look at their history,the ppl and culture.
It will take us another generation to be at their present level.We dont have their natural landscape or hills.Their harbour is alive.Ours are just for goods and containers and cranes.They have mountains behind,nice islands and bays.We have only one bay.We are flat and flat.Climate and geographically we dont measure up.Maybe we can compare with Johore and Indo lah.

They have a very bad pollution problem which is driving away a lot of expats and affecting its competitive edge. Despite all that nice scenery they are more crowded and claustrophobic and is a less nicer place to live in than Singapore.
They are not that superior as you make it sound it to be.

Just Visiting 2007

May 24th, 2007, 05:56 AM

We dont have their natural landscape or hills.Their harbour is alive.They have mountains behind...

By the way my significant half is a HK gal.

Hi Sailorman

Hope you don't take offense (and I will understand if you or anyone else does and delete this post), but the evil goblin inside me wishes to enquire if you look for the same features in your property as your gal friends :lol: :lol: :lol:

Sailorman

May 24th, 2007, 06:04 AM

Hi Sailorman

Hope you don't take offense (and I will understand if you or anyone else does and delete this post), but the evil goblin inside me wishes to enquire if you look for the same features in your property as your gal friends :lol: :lol: :lol:

Well guys.Would you like to stay near Changi Airport.Flat flat flat.
Would you want like to sleep next to Changi Airport.Flat flat flat.
I need rolling hills and deep crevices for my recreation.

Just Visiting 2007

May 24th, 2007, 06:18 AM

Well guys.Would you like to stay near Changi Airport.Flat flat flat.
Would you want like to sleep next to Changi Airport.Flat flat flat.
I need rolling hills and deep crevices for my recreation.

:lol: :lol:

freelance

May 24th, 2007, 07:58 AM

Finlayson office, which is neighbour to current Raffles Ascott Service apartment is being offered $2500psf record price.
You can imagine how much the properties at Raffles and Marina Boulevard will cost going forward.

this exact reason is why i thought few months ago that best resi investment in s'pore is the SOHO units....not for living, but for those desparate SMEs that soon cannot afford CBD proper office space...

most buyers always look at SOHO as "what can i get for residential rents..."? miss the real opportunity:

2 yrs from now, if ORQ and Republic Plaza rent for $15-20 psf, no problem to get $10 psf for your SOHO unit done up as pure office...then, i suspect you will find NO ONE LIVING IN THESE BLDGS....as resi tenants all outbid by tiny office users...plus, can get 3 yr lease from these tenants...

normal strata office space, can only finance up to 75% (considered commercial investment)....yet, SOHO can finance 80-90% as considered residential by the banks...

if A-grade office can sell for $2,500 psf today (with less leverage), what will it be in 2 yrs time?

And what does that mean for SOHO?

think, think, think....
(to steal a guru's line...)

shctaw

May 26th, 2007, 02:47 AM

Singapore office rents the 5th fastest growing globally
May 25th, 2007
The latest evidence of fast escalating office rentals in Singapore is provided by a CB Richard Ellis report which shows that office rents on the island are the fifth fastest growing globally. The report, issued yesterday, compared percentage change in occupation costs over a 12-month period for 176 cities worldwide.

Rents in Singapore jumped 53.6 per cent year-on-year to US$67.97 per square foot per annum (or S$8.60 psf per month) in the study dated May 2007 and based on Q1 2007 data. CBRE’s survey also shows that 90 per cent of the office markets monitored reflected positive growth in the 12 months to Q1 2007.

Abu Dhabi reported the highest year-on-year rental rise globally (up 102.9 per cent), followed by New Delhi (79.1 per cent), Sofia, Bulgaria (62.9 per cent), Edmonton (60.1 per cent) and Singapore (53.6 per cent). Mumbai took the sixth place (45.1 per cent).

The US$67.97 psf annual rental figure for Singapore makes it the 24th most expensive office market globally as of May 2007, up from 37th placing in November last year and 43rd spot in May last year.

London’s West End was the world’s most expensive office market in the latest survey, with annual rental of US$241.22 psf, followed by the City of London (US$165.72 psf), and Tokyo’s Inner and Outer Central Five Wards.

CBRE executive director (office services) Moray Armstrong, while acknowledging that increases in cost base are always going to be an issue for occupiers, reasons that ‘the more immediate concern is the lack of office space, which is placing constraints on business expansion’.

‘I don’t think we are at the pivotal point where Singapore is becoming uncompetitive and businesses are starting to re-think expansion plans. After all, the driver for this strong office demand is an economy that’s performing extremely well and a city that MNCs and international banks are excited about,’ he added.

‘Of course, things could change at some point if exponential rental growth continues unabated. But the government’s policy reaction is already in play - with the Urban Redevelopment Authority’s plans to release temporary office sites, additional office plots and other measures. And the private sector, that is developers and investors, are gearing up to build future offices.’

Singapore still has huge tracts of prime developable land, especially in the Marina Bay area. ‘So its position as an attractive place for accommodating business growth is assured,’ Mr Armstrong reckons.

saigalt

May 31st, 2007, 04:59 AM

Hello friends - does anyone have the idea about 1 ROCHESTER - I understand that the launch is 18th June . Any views on the developent , floorp lans , pricing etc - would be helpful

ChauTauVillager

May 31st, 2007, 06:16 AM

Thought give you guys a quick update on Macau, the 'other' IR with developments coming on stream THIS July !!

1Q2007 real GDP up 25.6%, lead by gaming receipts up 43.5% in nominal terms. Gross fixed capital formation, a gauge of investment up 38.1% led by investment in construction (+42.9%). Total visitor spend up 16% (excluding gaming) with private consumption up 12.4% in nominal terms. Except where stated, figures are real (ie adjusted for inflation).

1Q coincided with the opening with Grand Lisboa. Also Wynn & Starworld (in 3Q 2007) figures reflected in yearly comparison.
New Casinos since 1Q include Crown (May) and the first mega IR, Venetian (due July/August).

Population in 1Q was 520k up 6% YoY with non-residents at 71.1k (up 10% on 4Q). There is an estimated shortage of 200k workers in the next few years.

2Q figures expected to be even better as tourist arrivals during golden week was up 30% YoY. However since then, some provinces in China (including Guangdong) in late May imposed more travel restrictions to Macau, so growth from China is expected to slow. However, most expect this to be counteracted by the opening of the Venetian this year.

These figures indicate that Macau will clearly have the highest GDP in the region by this year (having overtaken HK in 2006). However, much of this GDP growth is concentrated in a small segment of the population.

seakei

May 31st, 2007, 02:18 PM

However, much of this GDP growth is concentrated in a small segment of the population.

Hmm.. I wonder where this small segment (casino related no doubt) of the population will spend their new found wealth. :cheers:

Baby

May 31st, 2007, 02:34 PM

Hmm.. I wonder where this small segment (casino related no doubt) of the population will spend their new found wealth. :cheers:

Casino :lol: ...

ChauTauVillager

May 31st, 2007, 06:01 PM

I think some of them bought the expensive units at MBFC !!! :lol:

And then you stopped them buying into the Sentosa IR !!

SEAfan

June 1st, 2007, 12:03 AM

I don't really know where to put this, but I just found a lengthy article on Singapore development (http://www.time.com/time/magazine/article/0,9171,1624897,00.html) in TIME Magazine.

Although you're no doubt fairly familiar with most of the content, I thought you might find it interesting reading. :)

arthur

June 1st, 2007, 02:13 AM

Taken from Time magazine

There was something a bit unusual about Lee Kuan Yew's annual Chinese New Year speech this year. The words of Lee, Singapore's former Prime Minister and founding father, are heeded by the public, because they provide a road map for the city-state's economic development. Hewing to custom, Lee spoke dryly of free-trade agreements and strengthening economic ties with the region. But then he started talking about art exhibitions, jazz bands, museums and alfresco dining. In fact, eating outdoors was mentioned no fewer than three times as Lee laid out the government's vision for a multibillion-dollar residential and commercial real estate project located near the downtown core. The Marina Bay development would transform the way people live and work in Singapore, the Minister Mentor said. Electric golf buggies will whiz by diners as they gaze from the water's edge upon the "sailing, boating, windsurfing and fishing." Singapore aspires to be "a tropical version" of New York, Paris and London all in one, Lee said, adding "the Marina will be like the St. Mark's Piazza in Venice."

Say what? It was hard to tell if the architect of Singapore's rise from third world to first was charting an economic course or making a sales pitch for a master-planned leisure community—because he was, in a way, doing both. Marina Bay is just one part of a government-orchestrated effort to change the face of Singapore. This is no Botox job. Work is underway on an epic facelift, one that could within a few years render Singapore nearly unrecognizable: the financial district will have a striking new skyline while casinos and other amusements will dot the city. Even sleepy Sentosa Island, a 500-hectare tourist hangout located 15 minutes from the city center, is slated for overhaul via a 10-year, $5 billion plan to turn it into a world-class playground for the wealthy, with multimillion-dollar seafront homes, a megayacht marina and a Universal Studios theme park. The point of this real estate renaissance: change Singapore's image as a prosperous but rather dull commercial hub into that of a vibrant, fun destination—a place people will want to live in or at least visit on holiday, not merely transit on their way to more exotic Southeast Asian locales such as Bangkok and Bali. "Our entire nation is focused on a self-transformation," says Lim Neo Chian, CEO of the Singapore Tourism Board. "Singapore is changing its image in the eyes of the world."

Change it must. Faced with challenging long-term economic prospects and a flagging birth rate, Singapore's leaders have determined that the future of its 4.4 million citizens depends upon attracting multinational corporations along with hundreds of thousands of ambitious, educated (and preferably wealthy) foreigners to work and live there. Like other Asian tigers such as Taiwan, Singapore is losing high-tech manufacturing jobs—once crucial to economic growth—to lower-cost countries such as China. Manufacturing now provides work for just 20% of the island's 2.5 million workforce, down from 33% a decade ago, a decline reflected in people's paychecks. The poorest 30% of Singaporeans have seen their wages drop consistently for the past five years, according to United Nations data. This economic predicament is complicated by flagging demographics. Younger Singaporeans—the most productive workers—are increasingly seeking employment overseas, while the ones who remain are having fewer children. At the current birth rate, the population will begin to shrink in 2020. And that portends stagnating economic growth and a declining standard of living.

The antidote: open the gates to immigration. The city aims to boost its population by 25% to 6.5 million over the next few decades. Due to the flagging birth rate, that goal can be reached only by admitting up to 1 million foreigners, more than doubling the current expat population of 875,400. Drawing in so many worker bees will require a lot of honey, in the form of good jobs, recreational opportunities, decent housing—the myriad elements that factor into a city's lifestyle. It will also require a certain amount of buzz—and Singapore is not currently thought of as an exciting city. Not that it isn't a model in many ways. It's admired for its efficient government, first-world infrastructure, solid educational system—a real plus if it is to attract high-income talent from overseas—and clean, crime-free streets. Singapore is regularly named in regional surveys as one of the best places in Asia for expats to live. Per capita income last year was $30,900, equal to that of Japan, and the economy is popping; GDP grew 7.9% last year.

But detractors have long complained about Singapore's paternalistic politics and its straitlaced social environment that can be as stuffy as its equatorial climate. "I tell people Singapore is the Lexus of countries," says David Martin, a U.K. citizen who moved to Singapore three years ago and now is general manager of the Marina Bay Financial Centre, a $2 billion office-and-residential project that is under construction in downtown Singapore. "Lexus could be the most well-made car out there, but it will never be as attractive as a Mercedes or BMW." This ambivalence is perhaps heightened by Singapore's unprepossessing cityscape. Many great metropolises have icons and landmarks like Big Ben or the Chrysler Building. The only physical attributes associated with Singapore are its statues of "merlions," a chimera with a lion's head and fish's body that was invented by the tourism board for a 1964 marketing campaign.

The government for years has been trying to liven up the place. In 2002 nightclubs were allowed for the first time to remain open around the clock, an attempt to inject some oxygen into the tourist trade and nightlife (lawmakers also repealed a law barring dancing on tabletops). Two years ago, city officials stopped tinkering and got serious: over considerable public objection, gambling was legalized. The government subsequently struck deals with major gaming companies to build two casino/resort developments, each costing about $4 billion. When completed, they will be the twin suns around which a solar system of new developments and diversions are expected to revolve.

One casino is located on a 24-hectare strip of land on the southern shore of Marina Bay, not far from the city's growing financial district at the mouth of the Singapore River. In February American casino operator Las Vegas Sands broke ground there on what will be the city's first integrated resort, scheduled to be completed in 2009. Beyond gambling, the Marina Bay Sands—composed of three nearly identical 50-story towers—will offer 2,500 hotel rooms, 93,000 sq m of convention space, two theaters, an ice-skating rink, shops and restaurants. A revitalized waterfront will sport the world's tallest Ferris wheel, miles of walkways and a 100-hectare botanical garden. To help bring in tourists, Singapore recently announced it had cut a deal to become a stop on the Formula One Grand Prix circuit starting in 2008; the city will host the annual event on downtown streets and may hold Formula One's first night race. For those with more genteel interests, a world-class art-and-science museum is being built near the Marina Bay Sands. Designed by renowned Israeli architect Moshe Safdie, the facility looks on paper to be as distinctive a landmark as the Sydney Opera House—its dramatic roofline resembles flower petals or an upturned palm. "We call it the Hand of Singapore," says George Tanasijevich, general manager of Singapore development for Las Vegas Sands.

The other casino, to be developed by Malaysia's Genting International, will stand on Sentosa Island, which is connected by bridge, light rail and cable car to the main island. Using land it had been reclaiming since the 1970s, the government several years ago began auctioning Sentosa plots to the private sector, but only to be developed under its careful guidance and marketing. Beaches that ringed the island were spruced up, and two golf courses modernized. Thirteen hotels containing about 3,500 rooms are planned, providing lodging for tourists drawn to the beaches, the casino and a Universal Studios theme park, which is also being built by Genting International and is slated to open in 2010.

Then there's what is arguably the capstone of the Sentosa initiative: Sentosa Cove, Singapore's first waterfront property development and also its first gated community. Each of its approximately 600-sq-m lots will soon sport luxury homes costing up to $20 million, each with infinity pools and private boat berths. Mixed in with the single-family homes will be four condominium complexes, a five-star hotel and a megayacht marina.

The government hopes the high-end properties will be purchased by wealthy locals as well as expat residents and overseas investors. To bring in the latter, a new property law was passed last year making Sentosa Cove the first land in Singapore that could be owned by foreign individuals (through 99-year leases) without special government clearance. Previously, foreigners could not easily secure land rights; those wishing to invest were obliged to purchase condominiums.

Backed by an international marketing campaign, Sentosa Cove homes are nearly sold out—more than half of the buyers are foreigners—and are generating a little bit of buzz that is music to the ears of the city fathers. When Hong Kong housewife and property investor Betty Ling first saw advertisements for Sentosa Cove three years ago, her Singaporean friends warned her "only ghosts live there." But she says she chose to buy in Singapore instead of Bali or Phuket because, "It's an international city and you have all the infrastructure of city life. You can feel safe there. Bali and China are scary. You don't know whom to trust." Plus, she says, prices are relatively low, adding, "Where in Hong Kong can you moor your boat right outside your house?" Another Sentosa Cove owner is Rick Scanlon, a 37-year-old investment-fund manager who has lived with his family in Singapore since 1996. "Our lot is right on the water, sort of carved into the hillside," says Scanlon, an American expat. "It reminds me almost of living in Malibu."

Malibu? In some ways, what's happening in Singapore more closely resembles recent events in Macau, the former colonial enclave on the Chinese mainland that saw its property market and economy soar after the government in 2002 ended a longstanding gambling monopoly and touched off construction of a spate of new casinos, resorts and residential projects. Singapore's actions are having a similar effect. Development is booming and property prices have been soaring. Upscale home prices that averaged about $8,500 per sq m two years ago are expected to reach more than $21,300 per sq m this year. Developers are piling into the market. Beyond Sentosa, several new luxury residential projects have gone up around the city in the past year, and units are selling out at record prices within hours of going on the market. In one such project, St. Regis Residences, located in Singapore's shopping district, seven penthouses sold at an average price of $18 million; three-quarters of the buyers were from Europe, the U.S. and the Middle East. "Singapore has entered a new era in terms of costs," says Tay Huey Ying, Singapore research director for Colliers International property brokers. "The top tier—and its prices—are here to stay."

The commercial-property sector is also buoyant, especially around Marina Bay, the western shore of which is being promoted as Singapore's answer to Wall Street, but with sailing, waterskiing and dining on your doorstep. Eight new skyscrapers are in the works that would quadruple Singapore's supply of top-quality office space by 2010. Partnering with both local and foreign developers, government planners have applied every element of its newest mantra—"live, work, play"—to the area. "It's definitely [the government's] vision," says Martin, the general manager of Marina Bay Financial Centre. "But they've convinced the private sector to foot the bill."

In fact, the government effort to revamp Singapore goes beyond property development. After the 1997 Asian financial crisis, bureaucrats realized the city could no longer rely upon manufacturing to fuel its economy, and began setting policies designed to create higher-paying, white-collar jobs in specific sectors: biotechnology, education, and private banking and finance. Singapore aspires to be a regional or even global center in those areas by offering incentives to corporations such as tax breaks, reasonably priced premium office space and Singapore's corruption-free business climate.

The push appears to be contributing as much to recent economic growth as property. Since 2000, production of drugs and medical devices has quadrupled to $15 billion. World-class educational institutions such as INSEAD and Johns Hopkins University have established Singapore campuses. The city-state is becoming the largest hub for private banking outside Zurich. Assets held in the Singapore offices of private banks including UBS and Citigroup have been rising 20% annually since 2003. More than 100 hedge funds have relocated to the island, up from 20 in 2004, according to the Singapore Monetary Authority. The Boston Consulting Group reckons Singapore now has more millionaire households as a percentage of total households than any other Asian economy.

Overall, an unprecedented 173,300 jobs were created in Singapore last year, and not just in high-pay professions. The construction and tourism sectors are also on the upswing. The Marina Bay Sands and Genting casino projects by themselves will add $8 billion of foreign investment. When completed, the developments are expected to create 38,000 service-sector jobs. "We have more than 450,000 citizens over 55 that are underemployed and undereducated," says Dr. Loo Choon Yong, a lawmaker and chairman of the Sentosa Development Corporation. "These are jobs they can do." Today, 68% of Singaporeans work in service industries, according to the Ministry of Manpower.

Despite this economic revitalization, many Singaporeans find the changes their city is undergoing to be bewildering and even threatening. According to public opinion polls, a majority of citizens were against the legalization of gambling, fearing casinos would result in increased crime and other social ills. Today, there's additional anxiety over ambitious efforts to boost immigration. In January, a local newspaper poll showed that 90% of Singaporeans opposed those efforts because they fear losing their jobs to foreign professionals. Nearly 43% said they believe the government is more concerned about foreigners than its own people; they also expressed doubt that Singapore's open-door policy will translate into more jobs. "The backlash comes from so-called foreign talents taking the best jobs without any obligations to maintaining the national good," says National University of Singapore sociology professor Chua Beng Huat.

There's also backlash over the potential impact that an influx of up to a million immigrants could have on society in coming years. Singapore has steadily been adding about 100,000 expats annually since 1990, census data shows. Foreigners now make up about 19% of the city's population, in contrast with Hong Kong, where expats make up less than 8% of all residents. "There are concerns over how in the world Singapore's tiny island and infrastructure will support the increased foreign population and how that will impact transportation, taxes, traffic, housing and schooling for the locals," says Singaporean Cheryl Liew, a consultant for an executive-search firm. One of those locals, Lance Lim, summed up this skepticism in a letter to the local Straits Times newspaper published in March. "We need to seriously consider whether our country is prepared to sacrifice its national identity for supposed economic growth," Lim wrote.

But not everyone is having an identity crisis. Pinchin Kwok chose to return to her native Singapore last year after living in New York for five years. The 28-year-old banker says she came home for "the good life" and that she's excited by the changes. "Many of the reasons people leave Singapore when they are young will be gone," Kwok says. "Life can only become more cosmopolitan and sophisticated. Everything will be less boring." Kwok adds that she expects Singapore will become "more of a melting pot like Manhattan, but at the core will be the heartlanders who've lived here for a long time and can pass along their values."

So maybe Lee Kuan Yew was right when he compared this new Singapore with Venice, London and New York. Those cities grew into giants not by copying blueprints of other capitals, but by being open to fresh ideas and unfamiliar DNA. "Yes, we should study best practices and features from other great cities," says Cheong Koon Hean, CEO of Singapore's Urban Redevelopment Agency. "But, ultimately, we need to seek out answers that best suit Singapore. To find our own soul." With their usual determination, Singaporeans are looking.

Veru

June 5th, 2007, 03:30 AM

Does anyone know what the psf rate for the June auction of the 4 seafront plots at Sentosa Cove went for ? I am sure it was $1500 or so psf and with approx 8000 sqft lots should be S$12M ++++. I took a round of these 4 lots in April 07--simply fab--they sure save the best for last...

ChauTauVillager

June 5th, 2007, 07:05 AM

Foreigner home buys hit record in Q1
Corporate purchases of private units also at new peak

By KALPANA RASHIWALA
(SINGAPORE) Companies and foreigners upped their share of caveats lodged for private home purchases in the first quarter of this year, according to an analysis of caveats by estate agents DTZ Debenham Tie Leung.

Companies accounted for 8 per cent, or 538 of the total 7,042 caveats lodged for private homes in the first quarter of the year, up from a 6 per cent share in the preceding quarter.
The 538 homes that companies bought in Q1 this year is an increase of 15.2 per cent from the preceding quarter and the highest quarterly figure ever captured by the Urban Redevelopment Authority's Realis caveats data, which go back to Q1 1995.
During the height of the last major bull run in Q2 1996, companies bought 462 private homes while the figure for Q3 1999, a year that saw a short-lived property rally, was 413.
Companies include both entities incorporated in Singapore and overseas and these buyers would include property funds as well as high-net-worth individuals who set up offshore companies to purchase properties for tax or confidentiality reasons, suggests DTZ executive director Ong Choon Fah.
Some of the caveats for private homes lodged by companies are for collective sale deals.
Among the caveats lodged by companies in the first quarter were 35 caveats for Amaryllis Ville, 24 for The Fernhill, 12 for Water Place and 11 for Marina Bay Residences.
Mrs Ong expects corporate buyers like funds to continue growing in importance as private residential property buyers. 'Traditionally, overseas property funds buy offices in Singapore, but with opportunities becoming more limited, they will increasingly turn to the residential sector,' she added.
DTZ's analysis of caveats lodged for private homes captured by the Realis system also shows that foreigners (including permanent residents) snapped up 1,938 private homes in the first three months of this year.
While this is up just marginally from the 1,934 caveats lodged by foreigners in the preceding quarter, it is nonetheless the highest level of foreign purchases in a quarter ever captured by Realis.
Foreigners also upped their share of private home purchases to 27 per cent in Q1 this year, a figure that has been previously surpassed on just one other occasion. That was in Q4 1995, when foreigners accounted for 32 per cent or 1,534 of the total 4,781 caveats lodged for private homes.
DTZ also observed that while the number of private apartments and condos that foreigners bought from developers in the primary market declined 21 per cent quarter-on-quarter to 540 in Q1 2007, the number of apartments/condos foreigners picked up in the secondary or resale market rose 13 per cent to 1,315 over the same period. 'This was the largest number of resale apartments that foreigners purchased in a quarter. Foreigners accounted for a 32 per cent share in overall resale condos/apartments transacted. This trailed only Q4 1995, when the share was 48 per cent,' DTZ said.
'Unlike new projects, private homes in the secondary market are usually ready for lease. This therefore attracts foreign investors who wish to have a share in the current buoyant leasing market. Similarly, resale properties are valued by foreigners who are new in Singapore and require immediate accommodation. There are also some who have received permanent residence and are keen to own residential properties, partly as rents have been rising,' DTZ observed.
Projects that saw a high percentage of caveats lodged by foreign buyers in the secondary market in Q1 included Costa del Sol, Caribbean at Keppel Bay, The Nexus, Cuscaden Residences, Pebble Bay and Leonie Gardens. Districts 10, 9 and 15 were the three most popular locations for foreigners who bought condos and private apartments in the secondary market in Q1.
As for foreigners who purchased condos/apartments directly from developers in the primary market, the three most sought-after districts in Q1 were 9, 10 and 11, followed by 15 and 1.
Tribeca, Residences @ Evelyn, RiverGate, St Regis Residences, Waterfall Gardens and Marina Bay Residences were among the projects that saw a high proportion of foreign buying in the primary market in Q1.
The 540 condos/apartments that foreign buyers purchased from developers in Q1 accounted for 28 per cent of developer sales of non-landed homes during the period.
Indonesians and Malaysians continued to be the largest groups of foreign buyers of overall private homes in Q1 this year, accounting for 21 per cent and 19 per cent respectively of caveats, followed by buyers from India, with a 14 per cent share. Indian nationals picked up 275 private homes in Q1 this year, an increase of 13 per cent from Q4 last year.
Buyers from the United Kingdom were the fourth-largest home buying market in Q1 (9 per cent share) followed by mainland China (5 per cent). Australians lodged caveats for 100 private homes in Q1, up 15 per cent from the preceding quarter. Koreans also continued to increase their investments in private residential properties in Singapore, picking up 96 homes in Q1, reflecting a 30 per cent quarter-on-quarter increase and a 380 per cent year-on-year jump.
-----------
Wonder if guru has a theory on why Amaryllis was so popular ??

freelance

June 5th, 2007, 01:01 PM

-----------
Wonder if guru has a theory on why Amaryllis was so popular ??[/FONT]

Probably because it is 99-yr...company buying for its employees to stay will have slightly different "investment criteria" than private investor so Amarylis View will be a good less expensive alternative to FH that allows staff to stay in a newer building in Newton area. Or, if it is investment co using 80-90% leverage, they may consider that 99 yr will have higher yield to cover its finance costs during holding period....

Just guessing though...

ChauTauVillager

June 6th, 2007, 09:42 AM

Just had a look at the SISV database. Back in March, a whole series of deals at the same price psf (something like $1030psf). Must be fund buying from developer ?? Thought developer didn't have that many left !

Baby

June 6th, 2007, 10:04 AM

ChauTauVillager

June 6th, 2007, 11:25 AM

Could be caveats lodged delayed ?

Maybe, but it doesn't explain why 35 deals were all done at 1030psf for different sizes. This seems to be an agreed average price for all the apartments in one go.
I think this was a fund. Remember being offered Amaryllis by Wing Tai with tenants (rents at various rates). Maybe Wing Tai still had these rented units, and decided to sell all of them to a fund in one go. At that time, I remember Amaryllis had the best yield basically the whole of SG, and with rent rises, its yield must still be one of the best (of course 99-year leasehold improves yield). I think rents must have gone up 50% since then (something like 5-6k for $1.05m 1238 sq ft unit then or 6% compared with 2-3% for freehold).
I think this bodes well for other condos in area - obviously underpriced for yield.

ChauTauVillager

June 7th, 2007, 09:52 AM

Amaryllis now at $1188psf in BT

robinsonscentrepoint

June 7th, 2007, 10:52 AM

Amaryllis now at $1188psf in BT

that was last done price a couple months ago. current asking prices are above $1200 psf or more.

DKSG

June 7th, 2007, 11:19 AM

Baby

June 7th, 2007, 02:35 PM

Published June 7, 2007

Foreign purchases of subsale units hit 11-yr high
Indons lead buyers, followed by M'sians, Aussies, Brits and Indians

http://i202.photobucket.com/albums/aa277/tiong_guan_ng/BT_6389090_07_06_2007.jpg

FOREIGNERS bought 241 private apartments and condos in the subsale market during the first quarter of this year, up 35 per cent from the preceding three months and the highest figure since 1996, according to DTZ Debenham Tie Leung's analysis of caveats captured by Urban Redevelopment Authority's Realis system.

The 241 subsale condos/apartments foreigners purchased in Q1 2007 gave them a nearly 36 per cent share of the total of 673 non-landed private homes purchased in the subsale market during the quarter. This is a much higher share compared with foreigners' overall 27 per cent share of total private home purchases in the same period.

DTZ in its report suggests the increasing foreign subsale interest may mean that foreigners are turning to the subsale market to buy homes because they may have less access to high-profile launches in the primary market. 'However, of greater significance is the fact that it also reflects their confidence about the investment potential of quality projects in Singapore,' the study added.

Subsales, often seen as a gauge of speculative activity, refers to secondary market deals - properties not bought directly from developers - in projects yet to receive Certificate of Statutory Completion.

The Sail @ Marina Bay and Icon were among the projects that attracted relatively strong foreign buying in the subsale market in Q1. Foreign buyers accounted for 36 per cent, or 24 of the total 67 units at The Sail transacted in the subsale market in Q1 2007. Foreign purchasers also made up 25 per cent, or 18 of the 72 Icon units purchased in the subsale market. Other projects favoured by foreign buyers in the subsale market during the quarter included Sky @ Eleven in Thomson, The Cosmopolitan at River Valley/Kim Seng roads, Twin Regency at Kim Tian Road and Watermark at Robertson Quay.

DTZ observed that foreigners also upped their subsale purchases for high-end apartments/condos in the first three months.

At 26 per cent, Indonesians accounted for the lion's share of foreign buyers of subsale apartments/condos, followed by Malaysians (21 per cent share) Australians (10 per cent), United Kingdom nationals (8 per cent), Indians (7 per cent), Koreans (5 per cent) and US citizens and mainland Chinese (with 3 per cent share each).

Historically, the highest levels of foreign buying of subsale condos/apartments were recorded in Q4 1995 (485 subsales), Q1 1996 (329 subsales) and Q3 1996 (321 subsales).

The total 673 subsale apartments/condo deals (involving buyers of various nationalities including Singaporeans) in the first quarter was 18 per cent higher than the preceding quarter and just over six times the 111 subsale deals done in Q1 2006.

The latest subsale figure was 8 per cent shy of the previous high recorded in Q2 1999, when 735 non-landed private homes changed hands in the subsale market. The highest figure ever reported was 1,653 in Q2 1996, at the peak of speculative fever in the mid-nineties. The 673 caveats lodged for subsale apartment/condo deals in the first quarter made up 11 per cent of total caveats lodged for non-landed private homes (comprising both primary and secondary market transactions) during the period. During the first three quarters in 1995, subsales made up 30 per cent or more of deals.

The median subsale price fell 2 per cent quarter-on-quarter to $1,005 psf in Q1 this year. However, it was still 65 per cent higher than the $609 psf posted in Q1 last year.

DTZ's report also said the momentum in the subsale market is expected to keep up, particularly for high-profile projects, with likely support from foreigners increasingly positive about the potential of the Singapore residential property market. 'However, the subsale market is expected to be increasingly competitive as choices increase,' the firm added.

Baby

June 7th, 2007, 02:45 PM

Any thoughts why in Q1, foreigners purchased of subsales are concentrated on that 10 projects ?

My guess :

(i) still mainly prime core central district 1,2,9,10,11, except Sky&Eleven, Meraprime, Twin Regency which are Central Zone.

(ii) properties just TOP and next to MRT - Metz, Meraprime, Twin Regency. Foreigners start to buy for stay rather than rent due to rental hike.

(ii) properties close to TOP and next to MRT - 8@Mount Sophia, Icon.
Same reason as (ii) except that their rental lease will be ending in 3-6mths.

(iii) Cosmopolitan, WaterMark - Investment, or Same reason as the above except their rental lease will be ending in a year.

(vi) Sail & Sky - for investment because they have most upward appreciation potential as they're superior development but under-priced compared to it's new neighbours.

Still, I couldn't understand why no other properties are in the foreigners subsale buy lists in Q1. ( e.g. Sentosa Cove ? East Coast ? Newton ? Holland ?) )

butthead

June 7th, 2007, 05:17 PM

Any thoughts why in Q1, foreigners purchased of subsales are concentrated in just 10 projects ?

My guess :

(i) still mainly district 1,2,9,10,11. No foreigners buy outside Prime Core Central except Sky&Eleven, Meraprime, Twin Regency which are Central Zone.

(ii) properties just TOP and next to MRT - Metz, Meraprime, Twin Regency. Foreigners start to buy for stay rather than rent due to rental hike.

(ii) properties close to TOP and next to MRT - 8@Mount Sophia, Icon.
Same reason as (ii) except that their rental lease will be ending in 3-6mths.

(iii) Cosmopolitan, WaterMark - Investment, or Same reason as the above except their rental lease will be ending in a year.

(vi) Sail & Sky - for investment because they have most upward appreciation potential as they're superior development but under-priced compared to it's new neighbours.

Still, I couldn't understand why no other properties are in the foreigners subsale buy lists in Q1. ( e.g. Sentosa Cove ? East Coast ? Newton ? Holland ?) )

District 3 and 21 also targeted by foreign investors .The nexus at bukit timah has quite a lot of foreign buyers I think. As for sentosa cove area, it is indeed quite few investors buying the subsale unit.

ChauTauVillager

June 8th, 2007, 05:35 AM

Hi all !

I heard that it is bought by a Fund ... but ... dont think Funds buy them to house people ... they buy for 2 reasons :

1) Yield ~ earn a rate of return superior to their other investments (albeit low risk)
2) Capital gain ~ sell later (or immediately) at a higher price ... I thought of this option and think that for the Fund to make this worthwhile .. they have to mark up (and probably think that they can mark up) about 25% ... which makes the implicit price expectation to be abt 1.288k psf ...

Sit tight ... the roller coaster is ramping up .... like some Space Mountain ride ...

YFG ... ...
Agree. These are main factors, and as mentioned, yield esp good at Amaryllis.
But I think funds look at 25-50% gain (of course 25% in 1 year is good, and 50% in 3 years). So maybe looking at 1500psf ? So 1800-2000psf freehold ?

Regarding subsales, surprised that Malaysians and Indonesians still buying in subsales. Thought they were the early buyers so should've stocked up before - or is it they have made so much from the earlier sales they are buying more !!!

ChauTauVillager

June 8th, 2007, 05:39 AM

Oh, one more point. Interesting no-one mentions any downturn given previous figures (1996) was before a crash.....

My guess is that newer peaks will be established (given greater global liquidity), and that one of these peaks someone will get burnt. Maybe peak will be double previous level ??

Baby

June 11th, 2007, 07:05 AM

In today's business times.

==============

URA studying plans for prime sites

State land in Scotts Rd, Goodwood Hill, North Bridge Rd areas under study

(SINGAPORE) More prime sites could be made available if ongoing studies by the Urban Redevelopment Authority (URA) on some of these potential sites prove feasible.

So far, URA has revealed that it is studying the areas around Scotts Road and Goodwood Hill, as well as around Capitol Theatre and Capitol Centre.

URA said: 'For both studies, they involve the future redevelopment plans for only the state-owned land and properties within the respective areas.'

The URA would not say if these are part of a larger urban planning study, but it is known that a new Master Plan is expected in 2008.

The Master Plan, which was last revised in 2003, is the statutory land use plan which guides Singapore's development in the medium term, over the next 10 to 15 years. It is reviewed every five years, and translates the broad, long-term strategies set out in the Concept Plan into detailed implementable plans. It shows the permissible land use and density for every parcel of land here.

For the area comprising Capitol Theatre and Capitol Centre on North Bridge Road, URA says that the site has not been gazetted for conservation. It has been zoned for commercial use but a gross plot ratio (GPR) has not been assigned yet.

The GPR could have a bearing on the redevelopment potential on the particular site as well as surrounding areas. Knight Frank director (research and consultancy) Nicholas Mak said: 'Once you up the plot ratio of one site, you might have to do it for the whole street.'

CapitaMall Trust (CMT) does have plans to partially redevelop Funan DigitaLife Mall on North Bridge Road.

It is understood that under current planning parameters, existing building height limits have put some restrictions on its plans. Revised GPR could also see CMT build an even bigger building on the site.

An indication of how soon redevelopment could take place would be the length of the leases. The leasing agent for the state-owned properties is the Singapore Land Authority.

For Capitol Centre, currently home to TMC Academy, its spokesman said it had just renewed its lease for another year. 'We don't know what happens after that,' said TMC Academy.

Leases for the colonial bungalows on Scotts Road, now being used as F&B outlets, are even shorter. BT learned that some tenants have been told their leases will expire in September.

The area under study also includes Goodwood Hill, a neighbourhood of colonial bungalows for residential use. It is not known how many 'black-and-white' bungalows there are on state-owned land in Singapore. But URA said that some of these, including those at Scotts Road and Goodwood Hill - which are not gazetted for conservation - are within sites where 'long-term plans are still being studied'.

Perhaps more important is that the areas along Scotts Road may not be maximised to their full potential yet. According to the Master Plan 2003, there are still large tracts of land around Newton MRT Station still undeveloped and subject to detailed control.

Recent developments on Scotts Roads have indicated that the area could be ripe for redevelopment.

The former Hotel Asia, being rebuilt by Hayden Properties into a luxury condo, could set a new benchmark for residential properties there if the developer achieves its target of $4,000 psf for the units.

The area also includes the Environment Building, home to the Ministry of Environment and Water Resources (MEWR). A spokesman for MEWR said it has 'no immediate plans to vacate its premises'.

On what to expect in next year's Master Plan, Mr Mak said he did not think there was pressure to add more residential sites to the government land sales programme as there are already many collective sale sites being redeveloped.

'This time round, they could increase the plot ratio in some commercial areas to spur redevelopment. I think the focus could be on Marina Bay and New Downtown,' he added.

Baby

June 11th, 2007, 07:06 AM

Looks like focus are on 3 key sites in the 2008 master plan.

- New Downtown - Marina Bay ( Mak confirmed verbally )
- City Hall - North Bridge Road
- Orchard - Scotts Road

ChauTauVillager

June 11th, 2007, 10:25 AM

I think Marina Bay area implies more offices...

Newton/Goodwood area seems interesting ... implies under-developed (maybe under-priced ??).
Will they come up with another, grand vision ??? Or Scotts Rd as a natural extension to Orchard Road (Somerset-Orchard-Newton full of mega shops/hotels ? There is a 'gap' where the tourist stop at FE Plaza and the Sheraton (plus) Hotel Asia/ScottsHighpark. This Scotts-Orchard Road shopping district begins at Somerset, via Tangs/Orchard Turn, and may now end at Newton Hawker Market ???

Believe earlier plan indicated they wanted to build Newton MRT as a transport hub. What areas have enough room for the proposed SG-KL high speed rail station?
Will the gahmen/developers wait till 08 review or begin things based on existing 03 guidelines ???

wees8

June 12th, 2007, 05:03 PM

Title : Ho Bee, Choice Homes JV puts in top bid for Dakota Crescent site
By :
Date : 12 June 2007 1945 hrs (SST)
URL : http://www.channelnewsasia.com/stories/singaporebusinessnews/view/281769/1/.html

SINGAPORE : A tie-up between Ho Bee Investment and Choice Homes Investments has put in a top bid of nearly S$229 million for the tender of a land parcel at Dakota Crescent.

The bid was just S$7 million ahead of the second highest bidder, and nearly double the reserve price.

It works out to $524 per square foot per plot ratio.

The tender exercise, carried out by the Housing & Development Board, attracted 15 bids.

The lowest bid for the 11,600 square metre site was S$142 million.

CB Richard Ellis (CBRE) says the optimistic bids reflect the confidence of developers in mid-tier residential projects in fringe areas.

It cites the examples of one-north residences at Buona Vista and Sky@Eleven at Thomson.

CBRE says the bid will translate into a breakeven price of about $900 per square foot for the future condominium project to be built on the site. - CNA /ls

wees8

June 14th, 2007, 04:31 AM

Today's Straits Times reported that St Regis has set a new record at $4,653.5 psf for a penthouse unit. It was a subsale.

The Straits Times article by Joyce Teo:

Penthouse sold for record $4,653.5 psf

THE owner of a two-storey penthouse in St Regis Residences has reaped a profit of $12.77 million in just eight months after a foreigner paid $28 million for the plush apartment last month.

The buyer smashed the old price benchmark by shelling out a record $4,653.5 per sq ft (psf) for the 6,017 sq ft unit in Tanglin Road, according to the caveat lodged for the purchase. It represents a remarkable capital gain because the penthouse was initially sold for $15.23 million just last August.

The previous known record for a residential unit in Singapore was set by a four-bedroom unit at Chyau Fwu Group's 35-unit Parkview Eclat in Grange Road that went for nearly $4,200 psf late last month.

It also underlines the astonishing surge in demand for high-end property.

'The uber-rich believe Singapore has the potential to grow, reinforcing our point that Singapore is undervalued compared with other global cities such as London and New York,' said Savills Singapore's director of marketing and business development, Mr Ku Swee Yong. 'Nothing short of the very best will do for this group.'

The 999-year leasehold St Regis Residences, which has penthouses ranging in size from 5,000 sq ft to 7,300 sq ft, was officially launched in June last year. One of its units was sold for what was at the time a record high price of more than $3,000 psf.

LittlePig

June 14th, 2007, 04:36 AM

I heard last evening’s papers reported a Tiong Bahru 5 room HDB flat sold for $675,000… buyer took 2 hours, didn’t wait for valuation and paid cash…

PrecisionDrive

June 14th, 2007, 08:18 AM

Nation Property
12 June 2007

The property market's upswing is complete and Singapore is now in the beginning of a boom phase of the real estate cycle. This is welcome news to all those who have suffered the financial embarrassment of seeing helplessly their mortgaged properties slipping into negative equity in the past decade.

This time round the property bull looks resolute and sustainable with all the economic indices pointing upward.

Chiefly of all is the ultimate plan to transform the island city into a tourist capital, most visibly headlined by the mega integrated resort (IR) projects which will incorporate a casino each. Next is the systematic push to re-engineer the already established regional hub into a global hub for private wealth management. To accomplish the above, the foundation of high literacy level and a solid middle-class affluence is needed. And that is where the property values come in.

The virtuous cycle is now on with the vibrancy in the job market and new expatriate residents looking for quality homes. With home rents still lagging behind those in Hong Kong, Tokyo and Seoul, Singapore's home prices and rents still have vast room for upward climb.

PrecisionDrive

June 14th, 2007, 08:19 AM

Nation Property
14 June 2007

The ripple effect of the property boom in the private property segment has caused prices of bigger HDB flats to rise.

Reportedly, the recent spate of private estate collective sales has created many cash-rich individuals who are ‘down-grading’ to larger resale HDB flats. With the windfall from their earlier collective sales, they could well afford to pay top dollar for big flats in good location.

Meanwhile, the soaring of private apartment rents has also stoked rents of HDB units. Experts have put the rent hike of HDB flats to as high as 35% compared to last year. With rental yield improving, fewer flat owners are putting their flats up for sale. This has caused more tenants to want to own a flat more urgently. And such severe constraint in the demand and supply situation is certainly pushing prices further up.

Bigger flats tend to benefit more from the current situation because of the higher rent that they command in today’s market. Many executive flats are now selling for about $20,000 above their value. Just last year, an ordinary E-flat, as they are called, would have to settle for just the market valuation prices.

When a flat is bought at a cash premium above its market valuation price, the buyer cannot use his Central Provident Fund savings or a home loan to pay for the difference. The cash premium has to be settled with upfront cash within ten days of the first HDB appointment.

Prices of resale HDB flats may have inched up only 1.3% in the first quarter as compared to the 4.6% achieved by private properties, the acute shortage of private rental properties will definitely improve things in the HDB resale arena. It used to be that four people would respond to each HDB property advertised. Currently, more than 10 people would respond to the same advertisement.

However, the basic fundamental of the resale market remains the same. It all boils down to the flats’ location. Right now, the boom is felt for flats closest to the city centre - like those near Tiong Bahru, Redhill and Queenstown MRT stations. Those flats in outlaying areas and newer towns such as Punggol or Sengkang will continue to face selling pressure because of the availability of unsold new HDB flats.

Baby

June 14th, 2007, 12:25 PM

I heard last evening’s papers reported a Tiong Bahru 5 room HDB flat sold for $675,000… buyer took 2 hours, didn’t wait for valuation and paid cash…

This is about 562psf !
According to the HDB rule, don't think the owner can sell or rent within 2.5yrs and 3 yrs respectively ?
Is he trying to stay or wait for appreciation ?
Hard to believe he invests so much in cash for appreciation on HDB rather than Private condo.

wees8

June 14th, 2007, 02:18 PM

This is just out today. See URA website:

http://www.ura.gov.sg/pr/text/2007/pr07-57.html

14 June 2007

Government Land Sales Programme for Private Residential, Commercial and Hotel Development for the Second Half of 2007
The Ministry of National Development (MND) today announced:

a The Government Land Sales (GLS) Programme for private residential, commercial and hotel development for the second half of 2007; and

b The supply of private residential, commercial and hotel space from projects that will be initiated by various government agencies in the second half of 2007, apart from the GLS Programme.

More Sites in Second Half of 2007 to Meet Strong Demand

In line with the robust growth of the economy and the increase in demand for various types of properties, MND will inject 15 new sites in the GLS Programme for the second half of 2007. These 15 new sites comprise 8 residential sites, 2 commercial sites, 4 hotel sites and 1 white site. The remaining 26 unsold sites from the first half of 2007 GLS Programme will be carried over to the second half of 2007 GLS Programme (see details of the status of the first half of 2007 GLS Programme in Appendix 1).

The GLS Programme for the second half of 2007 will therefore consist of 41 sites, comprising 20 residential sites, 5 commercial sites, 4 white sites, 10 hotel sites and 2 commercial & residential sites. These sites can potentially yield about 8,000 private residential units, 354,000 sqm GFA of commercial space and 6,500 hotel rooms.

Confirmed List for Second Half of 2007

The GLS Programme for the second half of 2007 will continue to have sites in both the confirmed list1 and the reserve list2 . In response to the market conditions and the need for certain sites to be developed early, a total of 14 sites will be sold through the confirmed list in the second half of 2007. This is higher than the 7 sites placed on the confirmed list in GLS Programme for the first half of 2007.

Out of the 14 confirmed sites, 3 are new sites and 11 are sites3 carried over from the GLS Programme in the first half of 2007. The 14 sites are:

a 8 residential sites at Sembawang Park, Simon Road, Enggor Street (A), Enggor Street (B), Woodlands Avenue 2/Rosewood Drive, Elias Road/Pasir Ris Drive 3, Boon Lay Way/Yuan Ching Road and Choa Chu Kang Road/Woodlands Road;

b 1 commercial site at Toa Payoh Lorong 6;

c 3 white sites at Marina View, Race Course Road/Rangoon Road and Serangoon Central; and

d 2 hotel sites at Upper Pickering Street and New Market Road/Merchant Road;

(See Appendix 2)

The 3 new sites in the confirmed list are the white site at Marina View and the residential sites at Sembawang Park and Boon Lay Way/Yuan Ching Road.

Many of the sites are to be sold on the confirmed list so that they can be developed early to facilitate the development of certain key areas. For example, the release of the Marina View site via the confirmed list will maintain the momentum of building up Marina Bay and facilitate the seamless growth of the existing Central Business District (CBD) into the Marina Bay area. It will also help to cater to the demand for prime office space and hotel rooms as the successful tenderer will be required to develop a minimum quantum of office and hotel space.

Similarly, the development of the 2 sites at Enggor Street (A) and Enggor Street (B) will help to continue the rejuvenation of the Tanjong Pagar area, which has started with the recent award of the hotel site at Tanjong Pagar Road/Gopeng Street on 4 June 2007 and the forthcoming sale of the other hotel site at Tanjong Pagar Road/Tras Street, the tender of which will close on 3 July 2007.

The early development of the 3 sites at Race Course Road/Rangoon Road, Upper Pickering Street and New Market Road/Merchant Road will cater to the increasing demand for hotel rooms, and help to add vibrancy to the Little India, Hong Lim Park and Singapore River areas, respectively. There has also been market interest in these sites.

Many of the sites, for example, the residential sites at Simon Road and Boon Lay Way/Yuan Ching Road, the commercial site at Toa Payoh Lorong 6 and the white site at Race Course Road/Rangoon Road, are located near Rapid Transit System (RTS) stations. The sale of these sites will expedite the development of land around RTS stations and help to increase the ridership catchment for the rail system.

As 10 sites were earlier in the reserve list for the first half of 2007, namely the sites at Simon Road, Enggor Street(A), Enggor Street(B), Woodlands Ave 2/Rosewood Drive, Elias Road/Pasir Ris Drive 3, Toa Payoh Lorong 6, Race Course Road/Rangoon Road, Serangoon Central, Upper Pickering Street and New Market Road/Merchant Road, they will be withdrawn from the reserve list and released for tender through the confirmed list based on the scheduled launch dates, as indicated in Appendix 2.

Reserve List for Second Half of 2007

A total of 27 sites will be placed on the reserve list for the second half of 2007. These sites will provide flexibility for the market to adjust the supply to meet demand. The 27 sites will comprise 15 sites carried over from the reserve list of the first half of 2007 (i.e. excluding the 10 sites transferred to the confirmed list of the second half 2007), and another 12 new sites. These 12 new sites comprise:

a 5 residential sites at Alexandra Road/Tiong Bahru Road, Toa Payoh Lorong 2/3, Yishun Avenue 1/Avenue 2, New Upper Changi Road/Tanah Merah Kechil Avenue and Bishan Street 14;

b 1 Executive Condominium (EC) site at Punggol Road/Punggol Field;

c 4 hotel sites at Jalan Bukit Merah/Alexandra Road, Jalan Besar/Sturdee Road, Race Course Road/Bukit Timah Road and Bernam Street/Tanjong Pagar Road; and

d 2 commercial sites at Jalan Sultan and Tampines Concourse

(See Appendix 2)

Together with the sites on the confirmed list, the 5 new residential sites will provide more choices for private housing development on different parts of the island. The Government is also launching an EC site to replenish the supply of new EC units in the market, and to ensure that ECs remain a viable housing option for those who aspire to private housing.

Together with the existing hotel sites from the first half of 2007, the addition of the 4 new hotel sites to the reserve list will provide a good variety of hotel sites to cater to a range of visitors. This will also contribute to meeting the demand for hotel rooms.

The commercial site at Jalan Sultan is located within the gazetted Kampong Glam Conservation Area and consists of 17 units of existing buildings to be restored. The sale of this site will facilitate the early restoration of the conserved shophouses in the area and add vibrancy to Kampong Glam Historic District. The amalgamation of 17 shophouses into a single land parcel will make it more attractive for the successful tenderer to put the site to hotel or office use.

The commercial site at Tampines Concourse will add to the list of sites which can be developed to meet the demand for office space and will in particular cater to the needs of office users who do not require prime space in a CBD location.

Other Government Supply to be Made Available in Second Half of 2007

Apart from the GLS Programme, the Government also makes available other supply of land and properties which provide additional residential, commercial and hotel space. MND works closely with other agencies to coordinate the supply of space from GLS and other sources made available by the Government.

The supply of private residential, commercial and hotel space by the Government outside of the GLS Programme in the second half of 2007 is as follows:

a 180,000 sqm GFA of commercial space, including:

i Interim use of vacant State buildings and small land parcels for office and other commercial uses, including transitional offices (about 130,000 sqm);
ii Mixed-use development at Lavender Street (about 14,000 sqm);
iii Fusionopolis Phase 2B at one-north (about 7,500 sqm);
iv Mixed-use development at Changi Business Park (about 3,400 sqm); and
v Localised retail facilities in parks, business parks, tourist attractions and MRT stations.

b 800 hotel rooms; and

c about 120 private residential units at Sentosa Cove.

Much of the supply of commercial space from the sources above can go towards meeting the near term demand for office space.

Among the supply, sites will be made available for the development of transitional offices. Such low-rise developments of about 3 to 4 storeys can be built quickly in about one year and at relatively low cost. Suitable sites, including a site at Newton MRT Station, have been identified. The Government is finalising the details of these sites and will release them in due course.

The development at Fusionopolis 2B will also cater to businesses which require office space outside the CBD.

The announcement of the planned supply to be made available by the Government outside of the GLS Programme will provide a more complete picture of the overall Government supply of space for the second half of 2007.

Supply in the pipeline expected to be completed in next few years up to 2010

In order to give a more complete picture of the supply situation in the next few years up to 20104 , URA will release information on the supply of various types of space from all sources of supply of properties.

Apart from the potential supply from the GLS Programme and other Government sources in the second half of 2007, there is also additional supply of space from projects in the pipeline which have been initiated in the first half of 2007 or earlier, both from the Government and private land sources.

For the private housing sector, a total of about 42,200 new private residential units from projects in the pipeline are expected to be completed from the second half of 2007 to 20105 . These units come from awarded GLS sites, other Government projects (e.g. private housing projects at one-north) and private land projects, including new projects from en-bloc sale sites. Of this supply, about 16,400 units will be in Core Central Region, 12,700 units in Rest of Central Region, and 13,100 units in Outside Central Region.

For the office sector, a total supply of about 640,000 sqm of office space is expected to be completed from the second half of 2007 to 2010. This includes 180,000 sqm of office space from Phase 1 of the Marina Bay Financial Centre, which is expected to be completed in 2010. In addition, about 250,000 sqm of Business Park space, mainly from Changi Business Park and Alexandra Distripark, are expected to be completed from the second half of 2007 to 2010. Space in business parks (BPs) can meet the needs of some companies, such the backroom operations and data centres of financial institutions and SMEs.

For the shop and hotel sectors, a total supply of about 610,000 sqm of shop space and 9,100 hotel rooms are expected to be completed from the second half of 2007 to 2010. This includes the supply of new shop space and hotel rooms from the two Integrated Resorts - Marina Bay Sands and Resorts World at Sentosa, which are expected to be completed in 2009 and 2010 respectively.

Re-assignment of GLS Sites by Successful Tenderers and
Private Land by Foreign Housing Developers

MND had announced in October 2001 that successful tenderers of GLS sites and foreign housing developers of private land can dispose of the land which is vacant or under development, or dispose of their interest in the projects on such land, if the transaction is not of a speculative nature. This measure was extended to all developers of GLS sites awarded on or before 23 June 2003 and foreign housing developers of projects on private land for which the application for the Qualifying Certificate (QC) was made on or before 23 June 2003. In June 2006, MND announced that the deadline for those who wish to apply for such re-assignment was extended to 30 June 2007.

The deadline to apply for such re-assignment has now been further extended by one year to 30 June 2008. This will continue to apply to all developers who were awarded GLS sites on or before 23 June 2003, and foreign housing developers of projects on private land for which the application for the QC was made on or before 23 June 2003 (see Appendix 4).

All applications for re-assignment of GLS sites are to be made to the appropriate GLS agent. Applications by QC holders for the re-assignment of private land are to be made to the Controller of Residential Property in SLA.

1 Sites under the confirmed list are released for tender at a pre-determined date, without the need for the sale to be triggered by an application.

2 Under the reserve list, the Government will only release a site for sale if an interested party submits an application for the site to be put up for tender with an offer of a minimum purchase price that is acceptable to the Government.

3 Of the 11 sites, 10 sites are transferred from the reserve list in the first half of 2007 and the sale of 1 site at Choa Chu Kang Road/Woodlands Road is deferred from first half of 2007confirmed list to that of second half of 2007.

4 The supply that is expected to be completed from second half of 2007 to 2010 is based on the expected completion dates as declared by the developers for private residential or commercial projects that have been granted planning approval (i.e. Outline Planning Permission, Provisional Permission or Written Permission) and the GLS sites that have been awarded.

5 Specifically, about 3,300 private residential units are expected to be completed in the second half of 2007, 7,700 units in 2008, 16,800 units in 2009 and 14,400 units in 2010 (see Appendix 3).

Issued by Ministry of National Development

PrecisionDrive

June 14th, 2007, 04:31 PM

This is about 562psf !
According to the HDB rule, don't think the owner can sell or rent within 2.5yrs and 3 yrs respectively ?
Is he trying to stay or wait for appreciation ?
Hard to believe he invests so much in cash for appreciation on HDB rather than Private condo.

$125,000 above valuation!

sarah168

June 15th, 2007, 08:17 AM

See HDB rules - you cansell after 1year provided the conditions are met below:
http://www.hdb.gov.sg/fi10/fi10203p.nsf/WPDis/Selling%20Your%20FlatMinimum%20Occupation%20Period?OpenDocument

Resale Flat bought in the open market (without CPF Housing Grant Scheme)
2½ years from effective date of resale if the owner takes a loan from HDB:

1 year from the effective date of resale if

i. the owner has not taken a loan from HDB; or
ii. he has refinanced HDB market interest rate loan with the bank/financial institution; or
iii. he has taken a loan from the bank/financial institution to finance the purchase; or
iv. he has fully redeemed the market interest rate loan obtained from HDB.

spore123

June 16th, 2007, 05:11 AM

This is just out today. See URA website:

http://www.ura.gov.sg/pr/text/2007/pr07-57.html

[B]14 June 2007

The supply of private residential, commercial and hotel space by the Government outside of the GLS Programme in the second half of 2007 is as follows:

a 180,000 sqm GFA of commercial space, including:

i Interim use of vacant State buildings and small land parcels for office and other commercial uses, including transitional offices (about 130,000 sqm);
ii Mixed-use development at Lavender Street (about 14,000 sqm);
iii Fusionopolis Phase 2B at one-north (about 7,500 sqm);
iv Mixed-use development at Changi Business Park (about 3,400 sqm); and
v Localised retail facilities in parks, business parks, tourist attractions and MRT stations.

Issued by Ministry of National Development

anyone know what and where this "mixed-use development at Lavender street" is?

what does GFA stand for?

hyacinthus

June 16th, 2007, 06:40 AM

anyone know what and where this "mixed-use development at Lavender street" is?

http://www.ura.gov.sg/pr/graphics/2007/pr07-57a37.pdf
Likely a hotel.

what does GFA stand for?

Gross Floor Area

You can check on URA website for the details on GFA.

Sailorman

June 16th, 2007, 08:35 AM

"A beneficiary from an en bloc sale has splashed out some $720,000 on a HDB flat, eclipsing the previous mark of $650,000 one buyer paid yesterday for a five-year-old flat on Jalan Membina. The new owner of the six-year-old, 115sqm Kim Tian Place flat had paid $150,000 above the market value. The 29th storey unit affords an uncompromised view of the city and Sentosa, which according to the agent who sold the unit, is one of the factors for the high price. "

One day the HDB will fetch $1000000!:nuts:

SmallInvestor

June 17th, 2007, 04:22 AM

Govt keeping an eye on home prices

By Nur Dianah Suhaimi
Jun 17, 2007
The Straits Times

PEOPLE panicking that they may have missed the boat in the surging property market had some reassurance from the Government yesterday.

Minister for National Development Mah Bow Tan said the housing sector was being closely monitored to ensure there was sufficient supply and if demand went up, new housing sites would be released.

Asking Singaporeans not to panic, he said there was sufficient supply of housing in the next two to four years.

'Don't feel that you have missed the boat because there are quite a lot of boats coming along,' he said.

Home prices shot up by 10 per cent last year and are expected to rise by another 12 per cent this year.

Analysts see the Government's release of 15 new sites for development last Thursday as a move to cool down the market.

The release brings the total number of residential sites on sale in the second half of this year to 41. This is the largest number since 1997.

Asked about the land release, Mr Mah said that since the take-up rate for new buildings had been 'very strong' in the past year, the Government decided to release more development land.

But he also said that it was important that the Government struck a balance, as an oversupply or shortage was undesirable.

'It is very important for us to make sure that the prices do not overshoot or race ahead of the real growth in the economy.

'I think it is not sustainable in the long run and, of course, it is also not good for our competitiveness if prices and rentals go up too fast.'

The minister said there was also no danger that the heat from the private property market would filter down to HDB public housing.

Referring to the record sale prices fetched by two five-room HDB units last week, he said they were exceptional cases because of their good locations and views.

'The broader market is really quite steady. There is an increase but this increase is in line with the increase in the strength of the economy. I'm quite comfortable with the pricing in the broader market at the moment.'

He added that the sheer number and variety of HDB flats up for sale also helped to keep prices stable and there was no need for buyers to feel that they were being priced out of the market.

'If you can't buy an executive flat, buy a five-room. If you can't afford central area, go to the suburbs. If you can't afford Tampines, go to Woodlands or Yishun,' he said.

Asked why most of the residential sites released on Thursday are mostly in the suburbs, such as Bishan and Sembawang, Mr Mah said the central areas were not a worry as collective sales will release new developments in these areas.

While 'it's not the Government's job to add more supply in these areas', he said it was important for the Government to ensure there was sufficient supply of housing in the suburbs.

'I'm not talking about the multimillion-dollar apartments in the central area. I think those people can take care of themselves.'

SmallInvestor

June 17th, 2007, 04:41 AM

This is how i have read the article:

From what Minister for National Development Mah Bow Tan has said, i think it's obvious that the land released recently will be located out of super prime areas where multi million dollar apartments exist.

He believes in a 2 tier market where the super prime will find its own level which will most probably be within the range of the international market.

For the broad market, he believes prices of such areas should be pegged to the economy of the country. The recent land sales suggests a desire by the government to cap the rise to prevent it from rising ahead of the economy of the country.

The many boats he has mentioned i believe are spurs through government initiatives to stabalise broad market prices as well as to push the economy of the country to grow faster. This suggest the window of opportunity for 1st home buyers has narrowed considerably compared to the past.

He has also suggested that he is expecting the broad market to rise further as he expects people to downgrade if they are living beyond their means.

spore123

June 17th, 2007, 11:06 AM

http://www.ura.gov.sg/pr/graphics/2007/pr07-57a37.pdf
Likely a hotel.

Gross Floor Area

You can check on URA website for the details on GFA.

thanks!

Dounut

June 18th, 2007, 09:25 AM

Wah, looks like I can't afford my house already by the time I am qualify to get one for myself.

PrecisionDrive

June 18th, 2007, 10:13 AM

Wah, looks like I can't afford my house already by the time I am qualify to get one for myself.

Q&A With National Development Minister Mah Bow Tan

Q: There has been news of HDB flats going for $600,000 to $800,000. Are there concerns that this may price average Singaporeans out of the property market?

A: If you look at the two cases that have been reported, the buyers are not really your average HDB upgrader.

In fact, I'm told the two buyers paid cash for it, they didn't even ask for valuations, didn't even take a loan.

The flats are also quite special in the sense that they're in special locations, got good views; renovation is probably also of a very high standard. They're more the exception rather than the rule.

I think the general market, based on the information that we have, is really quite steady. There is an increase but this increase is in line with the increase in the strength of the economy, in line with job growth.

I think, by and large, I'm quite comfortable with the pricing in the broader market at the moment.

shctaw

June 19th, 2007, 12:13 PM

Baby

June 19th, 2007, 03:35 PM

Is Mr Mah hinting that price now is still at acceptable level......?

Anyway our property price still 30% below our historical high. I am waiting for the URA to announce the 2Q residential index by the end of June. Should be very strong figure.

I believe the govt concern is focusing on the mass market, i.e. suburban or even city fringe private properties and HDB, which add up to more than 90% of the market.

Govt is less concern on the high end & super luxury segment. This segment can increase as high as the international markets are willing to pay.

The expectation is mass market price growth should follow closely the country GDP growth. If 2007 GDP growth is 6%, Govt is expecting mass market price to grow 6% over 2007, i.e. average 1.5% per quarter.

Govt might had felt the mass market property price will hike or probably has hiked beyond a comfortable level in the near term. Govt prefer to moderate it right now than later. Thus, it's releasing a substantial residential lands at suburban and city fringe to ensure increase supplies to cool down price hike at new launches.

In fact, this is good news for those early buyers of prime high end properties. As long as the mass market grow at the rate of GDP rate, the Govt will not intervene the market through hard and unfavourable regulatory policy.

I expect if the mass market growth is controlled within single digit, the prime high end will continue to grow at double digit rate.

I interpreted the below Mr. Mah's speech as a hint that the Govt doesn't really care how the prime high end market grow as they're the playground for the rich. Govt will have much concern if the mass market growth looses control due to over-speculation as it'll affect > 90% of the residences.

"
While 'it's not the Government's job to add more supply in these areas', he said it was important for the Government to ensure there was sufficient supply of housing in the suburbs.

'I'm not talking about the multimillion-dollar apartments in the central area. I think those people can take care of themselves "

wees8

June 19th, 2007, 06:27 PM

Maverick713

June 19th, 2007, 09:03 PM

Quote:
Originally Posted by spore123
anyone know what and where this "mixed-use development at Lavender street" is?

http://www.ura.gov.sg/pr/graphics/2007/pr07-57a37.pdf
Likely a hotel.

I don't think this is the one. The annoucement reads as "supply of commercial space outside of the GLS programme" but this site is already part of the GLS programme. Furthermore it says "at Lavender Street" but this site is at Jellicoe Road, about 200m from Lavender Street. I wonder where it really is since there is hardly any govt-owned properties there ....

Baby

June 20th, 2007, 04:46 AM

The government has announced more residential sites for sale. It will be interesting to watch what kind of psf ppr prices these sites will fetch.

If the psf ppr prices achieved is relatively high, maybe the goverment will release even more sites?

Recently the Dakota Crescent site was sold for $524 psf ppr, and this can be used as a very rough basis for comparison.

Govt releases more lands, in the hope that more supply will mean property prices will be controlled....supply vs demand logic.

However in a hot property market, the other possibility is that developer bid even more fierce. The next bidding achieve a higher psf than it's neighbour. Developer sell the new property at higher price. The properties at it's neighbourhood increase prices to match.

Actually I think in the short term, the latter scenario will happen that prices still hike furthur. In the long term, the price can get controlled when over-supply kicks in.

shctaw

June 20th, 2007, 04:53 AM

duckweed

June 20th, 2007, 05:51 AM

regarding rental....

has anyone heard of expats making u-turn on their relocation to singapore? it is true that some have decided not to come here after all? how will this affect the rental market?

shctaw

June 20th, 2007, 05:57 AM

For 1 that decide not to come , at least 10 have already arrived.

Singapore is now the most happening place in term of Investment, Career, Living & Play.

Baby

June 20th, 2007, 06:36 AM

For 1 that decide not to come , at least 10 have already arrived.

Singapore is now the most happening place in term of Investment, Career, Living & Play.

Look at the global financial institutions hubbing in Singapore via the big way... just gives 2 examples....

- Merrill Lynch commitment to the new 6 storey buildings at Harbourfront at xx years ;
- Standard Chartered commitment to almost one tower of MBFC phase 1 for at least 12 years....

Govt. releasing so many huge commercial sites at Marina View and Anson Road, despite MBFC phase 2 will follow up on phase 1..... there must be huge demand for the Office grade A by global financial institutions that MBFC cannot take them even in 2010 and 2011.

You think job will come or go ?

If that 1 expatriate doesn't want the job, there are at least 10 similar qualified will compete for it !

Baby

June 20th, 2007, 06:46 AM

I talk to a junior executive with CDL. CDL own a land near Elais Rd, hence they are monitoring the Elias Rd land release by the government.

It make sence to me that those developer will protect they current land bank by bidding into other land near their own land. If the price goes too low, the competitor will have a upper hand.

It is time for the show down of the developers.

This is indeed true.

Look at Marina Bay commercial sites, Cheung Kong and it's conglomerate partners bidded so aggressively to get the MBFC sites to protect it's interest in ORQ.

City Dev and UOL are going to bid aggressively for the white sites at behind OneShenton. Not only they own the properties at neighbourhood, they need to get a piece of the pie in Marina Bay or loose out as 2nd tier landlord in future.

I will not be surprised Cheung Kong and it's partners will join the bid aggressively. If they succeed again, they will monopolize the commercial office rental at Marina Bay.

wees8

June 20th, 2007, 09:40 AM

Business Times - 20 Jun 2007

A balancing act on property prices

THE latest government land sales programme reflects the balancing act that is required to respond to the booming property market in Singapore. The government announced last week its biggest ever land sales programme, offering a total of 41 sites in the second half of this year comprising 14 through the confirmed list and 27 in the reserve list.

The 14 confirmed-site offer is double the seven in the H1 2007 programme and also the highest figure since the reserve list system was introduced in 2001. The 41 plots the government is offering for the second half can potentially yield 8,000 private homes and 3.8 million sq ft gross floor area (GFA) of commercial space and 6,500 hotel rooms. But the programme - despite its scale - is no sledgehammer response to rising demand and prices.

Worth noting is the fact that none of the 20 residential sites in the programme are in prime district locations, where prices have climbed the steepest. It is a clear indication that the government, while keen to keep prices in the mass market affordable for Singaporeans, is willing to let market forces regulate prices in the luxury segment. The market has welcomed the approach, and property stocks rose the day after the programme was announced.

There was something to take away too, for those keenly watching rising office rentals - which have created fears that Singapore's attraction to businesses may be eroding away. The government, in announcing its land sales programme, took pains to highlight the additional sources of office space that will be coming onstream. This will include around 1.4 million sq ft of space from vacant state buildings, small plots for office and other commercial uses and transitional offices. In all, the government said 6.9 million sq ft of office space will be completed by 2010, including the first phase of the Marina Bay Financial Centre.

While the latest land sales programme is generally welcomed as a measured response to developments in the property market, more may have to be done. For one, some would argue that the government cannot afford to leave the prime segment alone if there is a continued escalation in prices and rentals.

At stake could be Singapore's efforts to attract and retain top-end foreign talent. A recent American Chamber of Commerce survey found that 61 per cent of the senior US executives polled were dissatisfied with housing prices. And the sharp increases in property prices have pushed up Singapore one notch to be the fifth most expensive city for expatriates in Asia and the 14th most expensive in the world, according to a Mercer survey this week.

The government has enough firepower in its arsenal - from land sales to legislative measures - to bring to bear on the property market. But it still faces the challenge to strike the correct balance between supply and demand, and between allowing the property sector to thrive and the need to maintain Singapore's competitiveness. It's a fine balancing act that needs to be performed.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Sailorman

June 22nd, 2007, 12:54 PM

DJ Singapore's Wheelock Buys 10% Of SC Global For S$112M

SINGAPORE (Dow Jones)--Wheelock Properties Singapore Ltd. (M35.SG) said Friday it bought a 10% stake in luxury property developer SC Global Developments Ltd. (S72.SG) for S$112 million.

The 18.682 million shares were purchased from Roveron Pte. Ltd. for S$6 each, Wheelock said in a statement. SC Global's shares closed Friday flat at S$6.45.

"This acquisition is intended to be for long-term investment in a well managed and respected Singapore property company. The purchase consideration will be financed by internal funds," Wheelock said.

Ha.Developers are now wooing each other.

arthur

June 22nd, 2007, 07:28 PM

Bt Timah property hotting up
SLEEPY Bukit Timah - one of the leading lights in the last property boom - is fast making a comeback as property developers gear up for a slew of new launches there.
At least six new residential projects will be launched in the area over the coming months, with prices reaching an $1,900 per sq ft (psf) - a level not seen for 10 years.

Duchess Residences in Duchess Road, for instance, will have apartments priced at between $1,600 and $1,900 psf when it is released for sale next month, said developer United Overseas Land.

At unit sizes of between 1,464 sq ft for the three-bedrooms and 4,101 sq ft for a penthouse, this means prices will start from about $2.4 million for an apartment.

This launch is the clearest sign that the Bukit Timah area, which has stayed under the radar for the last few years, is on track for a strong recovery, say property consultants.

The District 11 corridor, an established residential area dotted with prestigious schools, has long been a favourite with expats and families. But it has been outshone in the current boom by ultra-prime areas such as Orchard Road and Sentosa.

At the peak of the property upturn in 1996, two units at Shelford Apartments fetched an all-time Bukit Timah high of about $2,100 psf.

But prices have plummeted in recent years to below $1,000 psf. They started to pick up only in December with the launch of Sixth Avenue Residences, which was 90 per cent sold in one weekend.

dddddd

June 27th, 2007, 03:20 AM

Govt releases more lands, in the hope that more supply will mean property prices will be controlled....supply vs demand logic.

However in a hot property market, the other possibility is that developer bid even more fierce. The next bidding achieve a higher psf than it's neighbour. Developer sell the new property at higher price. The properties at it's neighbourhood increase prices to match.

Actually I think in the short term, the latter scenario will happen that prices still hike furthur. In the long term, the price can get controlled when over-supply kicks in.

Hi all, first time in this thread.
Baby, very agree that for the short term (2-3 years), prices will still hike. But in the long run, with a population of 6.5mil, i am quite certain over-supply will unlikely to happen.

Baby

June 28th, 2007, 08:11 AM

Curbs on foreigners buying landed property in S'pore to stay

By Tyler Cowen - June 28, 2007
AsiaOne
Restrictions to curb foreigners from buying landed homes in Singapore will stay, the Law Ministry said yesterday.

Responding to media queries on a recent report by Goldman Sachs calling for a review of the Residential Property Act to relax restrictions on foreigners buying landed property, a spokesman for the Law Ministry said: "There are no plans to liberalise the existing system.

"In land scarce Singapore, landed properties have to be treated as a special category where purchases by foreigners are subject to special approval."

Goldman Sachs (Singapore), making a case for lifting restrictions on foreigners, said such a change would serve as a catalyst for further foreign buying of private homes and boost the current residential property up-cycle.

Residential developers would also gain from even greater foreign buying interest given the positive message such a move would send.

Said Golman Sachs in a paper: "We think relaxing restrictions on foreigners buying landed property would accelerate Singapore's efforts to attract foreign talent."

But Singaporeans oppose such a move.

Mr Patrick Chia, managing director of Hospitality Associates, a landed home owner, told The Business Times: "If foreigners are allowed to freely buy landed property, all the non-government owned property could theoretically and practically be bought up, because in this 21st century, the world is flush with liquidity.

"The current abundance of petrodollars from the oil-rich Middle-East countries and Russia can easily buy up Singapore. So can the current American and European funds with their billions.

"Bankers and real estate agents can confirm that foreign funds are looking for Singapore property assets to buy."

Over the past 30 years, the Singapore government has relaxed the curbs as needed, and has been very accommodating in this aspect compared with other countries.

In Singapore, foreigners have to be permanent residents before they can get permission to buy landed homes on mainland Singapore. Sentosa Cove is the only location where non-PR foreigners are allowed to buy landed property. But they must first seek permission from the Land Dealings (Approval) Unit under the Singapore Land Authority.

Foreigners, including PRs, can at any one time own only one landed home in Singapore and must occupy it themselves and not rent it out. They can only buy a landed property of no more than 15,000 sq ft in land area, although exceptions have been made to allow some PRs to buy Good Class bungalows with plot size of over 15,000 sq ft..

When considering applications from foreigners and PRs who want to buy a landed home in Singapore, the Law Minister will weigh the applicant's qualifications and whether the applicant has made or will contribute to the Singapore's economy.

It takes about four weeks for approval to be granted, but in Sentosa Cove, the okay can come in less than 48 hours under a special fast-track approval scheme, says The Business Times.

Baby

June 28th, 2007, 08:13 AM

Goldman Sachs shooting at his own feet. :lol:

Baby

June 28th, 2007, 04:02 PM

Jurong, Paya Lebar designated as new business hubs
By Daryl Loo, Channel NewsAsia | Posted: 28 June 2007 1649 hrs

SINGAPORE: Jurong and Paya Lebar have been designated as new business hubs under the upcoming Master Plan 2008 review.

Giving a preview of the plans in a Channel NewsAsia interview, National Development Minister Mah Bow Tan said the move would provide space for Singapore's continued growth as a global business centre and would offer an alternative to the overcrowded Central Business District (CBD) area.

The Master Plan guides Singapore's medium-term land use and is reviewed every five years.

To grow Jurong and Paya Lebar into new hubs for businesses, the government plans to release sites for new offices, shops, homes and entertainment outlets in these areas.

According to the minister, the lower costs will be a key pull factor.

He said: "I think the best incentive is that it will offer cheaper office space – cheaper than the CBD. It will offer proximity to workers who live in some of the nearby residences. And of course, it's going to be a very nice leisure and recreational area as well. In Jurong, for example, we can redevelop the areas around the Jurong Lake, which can provide very nice retail and F&B outlets on the waterfront."

The specific locations of the sites have yet to be determined, but they will be centred around the existing MRT stations.

For Jurong, these MRT stations would likely be the Lakeside, Boon Lay or Jurong East stations, while the Paya Lebar station is the likely candidate in the east.

Mr Mah added that he does not see the need for land acquisition by the government as there are plenty of empty land sites in these areas.

The new hubs are seen as part of the long-term answer to the current office space crunch.

Mr Mah said: "It will take us quite a number of years to build up Jurong and Paya Lebar. I remember we took at least ten years to fully develop Tampines as a regional centre. So I think, depending on the reaction of the market, it may take just as long. This is really something to help us sustain our growth in the longer term."

Other more immediate options to ease the space crunch in CBD include sale of new sites and short-term transitional office sites.

As for speculation about drastic increases in plot ratios for land around the island to cope with an anticipated rise in population, the minister said there is no need for such a move at this point.

He explained that the figure of 6.5 million is actually a very long-term guide, spanning up to 50 years.

Mr Mah said: "If that is the case, then there's really no urgent need for us to drastically change all our plot ratios or up the intensity of all the various parcels of land that we have.

"We've been doing this gradually over many years. There has been a review of various plot ratios in every Master Plan and we've gradually and steadily reviewed the intensity and use of each of these plots. It's not something that we need to do across the board at this point in time, based on the reviews that we have done."

The Master Plan will also include new details of living options, facilities for leisure and ways to encourage rootedness in Singapore.

The new Master Plan will be put up for public feedback by the middle of next year.

Baby

June 28th, 2007, 04:08 PM

Looks like the anticipation of plot ratio increases in the master plan 2008 is only in specific sites and not across the board.

From the past hints given by the govt, looks like the areas with higher plot ratio revision will be around :

-Marina Bay
-North Bridge
-Scotts Road

Now the hints by the govt are :
-Paya Lebar
-Jurong East

RafflesCity

June 29th, 2007, 03:07 AM

Land-use intensity: No sudden changes

29 Jun 07

Mah dismisses talk of increase in plot ratios; there's enough land for next 10-15 years

By Lydia Lim, Senior Political Correspondent
THE Government has no plans for a major exercise to raise plot ratios anytime soon.
In the lead-up to next year's announcement of the Master Plan for Singapore's physical development, National Development Minister Mah Bow Tan quashed expectations in some quarters that plot ratios are headed upwards, to make room for a future population of 6.5 million.

The plot ratio of a site decides how much total floor area it can support, in other words, whether its buildings can be high-rise or low-rise. It is also known as a site's development intensity.

In an interview this week, Mr Mah said there was no need for a massive across-the-board change in development intensity, as the land available today is more than enough to meet needs over the next 10 to 15 years.

That is the time-frame for the upcoming Master Plan 2008, to be unveiled around the middle of next year.

The statutory document regulates the permissible use and density for land parcels across the island. It is reviewed every five years.

Putting into context the 6.5 million figure, Mr Mah said it was the 'upper bound' for Singapore's population over the long term of 40 to 50 years.

The figure is calculated based on current demographic trends.

It would have little impact on shorter-term, land-use plans.

'There is more than sufficient land for accommodating our population quite comfortably in the next 10, 15 years, which is the time-frame for this Master Plan.

'There does not appear to be any need for a massive across-the-board kind of intensification...some of the land that we have is not built up to full intensity under today's intensity,' he said.

Mr Mah added that his ministry's strategy of intensifying land use gradually had worked well.

Coming in the midst of collective property sale frenzy, Mr Mah's announcement is likely to have the strongest impact on the sentiments of these sellers.

Dr Ong Seow Eng, deputy head of research at the National University of Singapore's department of real estate, said homeowners who have committed to sell their properties will have fewer reasons to be unhappy, while those planning to sell will have less incentive to hold out for higher prices, in anticipation of higher plot ratios.

He said the Government's strategy of gradual intensification made sense as a sudden change could put undue stress on road and MRT networks.

Mr Lui Seng Fatt, regional director at Jones Lang LaSalle, a global real estate consultant, agreed that the minister's statement would result in more 'realistic' expectations among property owners.

The director of research at property firm Knight Frank, Mr Nicholas Mak, said the Government might have wanted to avoid another round of collective sales as that would again reduce the stock of rental units and cause rents to rise further.

During the interview, Mr Mah also debunked some analysts' reports of a short-term shortfall in private homes.

Some 42,200 new private homes are slated for completion from the second half of this year to 2010, he said, as compared with a historical demand of between 8,000 and 10,000 units a year.

To help buyers and sellers in their decision-making amid a very buoyant property market, he said the Urban Redevelopment Authority would release more information on supply, demand and transaction prices.

'There's nothing like total transparency to help people make clear decisions, rather than to make decisions based on panic or try to influence the market on the basis of selective information,' he said.

nav14

June 29th, 2007, 03:26 AM

"Some 42,200 new private homes are slated for completion from the second half of this year to 2010, he said, as compared with a historical demand of between 8,000 and 10,000 units a year."

But the big question is the demand right now equivalent to historical demand. I am sure it far exceeds historical demand in which case the 42,000 homes might be insufficient. Mah Bow Tan is trying very hard to fool investors.

dddddd

June 29th, 2007, 03:29 AM

I would say the demand now and in the future is much higher than previous.

In 2006 alone, SIR has approved 9,000 PR/EP. But in 2007, SIR is receiving 30,000 applications monthly.

This is inline with the Gov initiative to increase the population to 6.5mil.

shctaw

June 29th, 2007, 04:02 AM

30,000 new applications monthly :nuts: plus 66000 millionaires:nuts:

^^ Now I Know Why Our Economy Is Red Hot^^

Baby

June 29th, 2007, 04:00 PM

Baby

June 29th, 2007, 04:27 PM

I was at URA today.

I found that URA has just zoned Capitol Building, Capitol Centre (Capital Theatre ), and Stamford building as conservation area.
They were not conserved previously.

URA has also zoned Peninsula Plaza together with the above 3 conserved buildings into Commercial zone with a plot ratio of 3.5.

I believe this is part of the plot increase at North Bridge road in the 2008 master plan.

wees8

July 1st, 2007, 09:06 AM

Today's (1 Jul 07) issue of the Straits Times newspaper has the article:

Foreign schools bursting at the seams as more expats move in

Some excerpts:

Expats are not only feeling the pinch from rising rents but they are finding it much harder to get their kids into foreign schools, which are chock-a-block with students.

The booming economy is luring lots more foreigners here - the expat population grew from 798,000 to 875,500 last year - and has put severe pressure on international schools.

Baby

July 1st, 2007, 04:25 PM

dddddd

July 2nd, 2007, 08:24 AM

Condos and apartments have hiked to almost double. This is due to high demands by the local and foreign investors. However landed properties have not so, but in no time will follow soon.

=============================

Source: The Straits Times, 02 July 2007

Luxury bungalows enjoy strong demand in buoyant market
July 2nd, 2007
Demand for prime bungalows is still high and prices show no sign of easing either - no surprise given the property market’s resurgence.

So far this year, 47 deals for good class bungalows have been done to the tune of $560 million, said CBRE Research.

This compares with 55 deals worth $564 million completed in the same period last year.

Good class bungalows are defined as those on at least 15,000 sq ft of land in 39 designated areas.

Asking prices for bungalows in coveted areas such as Nassim Road, Dalvey Estate, White House Park and Cluny Park now average $900 per sq ft (psf) to $1,000 psf, said Mr Douglas Wong, who heads PropNex Grandeur Homes.

This is up from transacted prices of $400 psf to $450 psf three years ago when the market for good class bungalows showed its first signs of recovery, he said.

Savills Singapore’s director of marketing and business development, Mr Ku Swee Yong, said asking prices for Nassim Road have crept up to about $1,200 psf.

Average total prices for good class bungalow deals this year have crossed the $12 million mark, compared with last year’s average of $10.8 million and the 2005 average of $8.5 million, he said.

A bungalow on 15,075 sq ft in next door Dalvey Estate in district 10 was sold for $1,091 psf of land area in March. This brought the average price of done deals in the area to $898 psf this year.

It represents an 83 per cent rise from the average price of $501 psf recorded for five deals done last year, said CB Richard Ellis Research (CBRE Research).

Another Dalvey Road bungalow with a land area of 20,139 sq ft was sold in April for $14.2 million, up 63 per cent from the $8.7 million price that the seller paid last February, it said.

The Binjai Park area in district 21, near Bukit Timah Road, has also seen a significant price increase this year.

Three deals worth an average of $666 psf have been done compared with an average of $363 psf for three sales last year.

Higher-priced deals are being recorded because of rising land values, larger plots being sold and newer houses on those plots, said Savills Singapore’s Mr Ku.

Some owners who had bought a few years ago rebuilt or renovated their homes before putting the properties back on the market at higher prices, he said.

The prime bungalow market had a record year last year with 119 deals worth $1.23 billion.

But it cannot be compared with the condominium market as it is largely restricted to local buyers, consultants said.

Foreigners have to be permanent residents and apply for special approval to buy landed homes on mainland Singapore, with Sentosa Cove being the only location where non-PR foreigners can purchase landed property.

Foreigners are further restricted to landed properties with a land area of no more than 15,000 sq ft.

CBRE Research said good class bungalow sales this year would be similar in value to those of last year, but the number of sales may not be as high as the 119 recorded last year.

‘That is because sellers’ expectations are now much higher than before, given the very positive outlook,’ it said.

Nevertheless, where value is concerned, there is still room to move up, said Mr Wong, who predicts a 5 per cent to 10 per cent rise in bungalow prices for the rest of the year.

Prices could move even higher next year given that 99-year leasehold Sentosa Cove bungalow plots have sold for higher prices than good class bungalow plots.

‘Good class bungalows are a unique product. There are only 2,500 units in Singapore and all are freehold,’ said Mr Wong.

=============================

WLCL

July 2nd, 2007, 11:13 AM

July 2, 2007, 12.41 pm (Singapore time)

Updated at 2pm

Singapore's home prices rise 7.9% in Q2

SINGAPORE - Singapore home prices rose 7.9 per cent between April and June, climbing for the 13th quarter in a row, the government real estate agency said on Monday.

The Urban Redevelopment Authority (URA) said the price index for private residential homes rose to 147.3 points for the three months ended June, from 136.5 in the previous quarter, according to its initial estimate.

The second-quarter gain follows a 4.8 per cent rise in the first three months of 2006.

The index rose 9.8 per cent across Singapore for the whole of last year.

Singapore's property sector recovery gained momentum after the government introduced measures in July 2005 to ease real-estate financing rules and foreign investment.

The URA will release the official price index on July 27.

The advance estimate is compiled from transaction prices lodged during the first 10 weeks of the quarter, as well as data from new apartments that have been booked.

The URA also said that the government will ensure that there will be sufficient supply of residential space to meet demand and pointed at the government land sales programme for the second half of 2007, which will create a potential supply of about 8,000 units of private housing and executive condominium housing.

URA also said that in addition to the new sites released for development, there are about 42,200 new units of private housing that will be completed from the second half of 2007 to 2010. About 22,700 of these units have not been sold by developers yet. -- REUTERS

Non-landed private home prices rise

Prices of non-landed private homes in the Core Central Region -- which comprises the traditional prime districts 9, 10 and 11 as well as Downtown Core (including Marina Bay) and Sentosa -- increased 7.6 per cent quarter-on-quarter in Q2, while the index for Rest of Central Region (which includes locations like Queenstown, Bukit Merah, Outram, Bishan, Kallang and Marine Parade) posted an even higher 7.9 per cent gain during the period. URA's latest numbers show the Outside Central Region non-landed private home price index rose 6.5 per cent in Q2.

In the public housing segment, the Housing & Development Board's resale flats price index registered a 2.9 per cent increase in Q2 over Q1 going by the board's latest flash estimate. This was higher than the 1.3 per cent gain for the Q1 index.-- BT

Click here for URA's press release
http://www.ura.gov.sg/pr/text/2007/pr07-65.html

ChauTauVillager2

July 2nd, 2007, 04:14 PM

Wow. But I think most of us knew this with the launch prices in the Q.

However, does URA normally make statements like "the govt will continure to monitor the market very closely". R We becoming like Fed watchers now looking at nuances in statements. And do these have little ultimate meaning like when Greenspan spoke of irrational exuburence ??

PrecisionDrive

July 5th, 2007, 09:22 AM

大宗房产交易次季报101亿 ($10.1 billion)
早报联合
5-7-2007

在房地产发展商积极在私人和公共领域收购可发展地段的带动下，今年第二季(Q2)的大宗房地产交易气氛继续狂热，房地产投资销售额报101亿2000万元($10.12 billion)，这比去年同时期的83亿4000万元增长了21.3％。

房地产投资销售指的是市场上的大宗房地产交易，这包括发展地段、整栋大楼、整层楼面的转手，每一宗交易的金额至少要有500万元($5 million)。一般来说，它是市场景气的领先指标，反映发展商和投资者对房地产市场的中长期看法。

世邦魏理仕（CB Richard Ellis）昨天公布的数据显示，在今年第二季里，私人业主仍然是整个市场的主要供应来源，投资销售额占90％，或90亿9000万元 ($9.09 billion)。政府所卖出的官地只占了总投资销售额的10％，即10亿3000万元 ($1.03 billion)，其中包括政府在5月间把淡滨尼宏道（Tampines Grande）的一块商业地段以2亿2500万元 ($225 million) 的价码，即容积率每平方英尺622元 ($622 ppr)，卖给城市发展。

住宅地皮成交最多

在各领域当中，住宅仍然是最多地皮成交的领域，占了总投资销售额的74.4％，即75亿3000万元 ($7.53 billion)。其中43亿元 ($4.3 billion) （38个项目）属于集体出售 (en-bloc) 地段，包括SC环球以2亿6200万元 ($262 million)，即容积率每平方英尺2338元 ($2,338 ppr)，收购雅茂公寓（The Ardmore）的创纪录交易。

今年第一季也有不少商业大楼成交，占了总投资销售额的17.3％，即17亿5000万元 ($1.75 billion)。在它们当中，有好些是海外基金在本地的收购项目，包括里昂投资银行（CLSA）以5亿2500万元 ($525 million)，将新航大厦转卖给德国SEB基金，销售单位价就比它在去年6月份买下新航大厦时高出53％。

在酒店领域，大宗房地产交易也相当活跃，最受瞩目的交易包括城市发展酒店服务房地产投资信托以2亿零100万元($21 million)，向雷曼兄弟收购诺福特克拉码头酒店，收购价就比雷曼兄弟2004年8月支付的价格，高出一倍多。

sarah168

July 5th, 2007, 11:25 AM

Dear all,

Need some help to recall history.

Can anyone remember before the May 1996 property curb, what was the maximum financing given by banks ?

I vaguely remember that bank (DBS ???) offers 100% financing ??

And Citibank (??) came up with the scheme of 105% financing (including renovation ??), is that right ?

Thanks in advance for the infor.

Baby

July 5th, 2007, 06:02 PM

Treat bullish projections with care, warns URA
By Joseph Yadao, TODAY | Posted: 05 July 2007 1022 hrs

For the second time in three days, the Government has stepped in with a cautioning note to calm the bullish property sector, even going so far as to single out parties that may have helped fan the flames.

Urging the public to take media reports of rising office rentals with a pinch of salt, the Urban Redevelopment Authority (URA) said "the public should take into consideration information on future supply of office space".

"One example was the recent projection by property consultant Savills that office rentals in Singapore could surpass those in Hong Kong by end-2008," the URA said in a statement to announce the launch of the first transitional office site at Scotts Road.

"The public should interpret such projections with caution. Whether such projections materialise or not depends on many factors ... The consultants may not have taken into consideration the additional supply of office and business park space that will be generated from the latest Government initiatives."

To give the public a "more balanced perspective", the URA will soon release more detailed rental and vacancy data on office space.

Meanwhile, it has put up for tender the 1.04-ha land parcel next to the Newton MRT station. With a 10-year lease, a three- to four-storey building yielding 15,666 square metres of transitional office space could be ready within a year. If response is good, said the URA, the Government will release more of such sites for tender.

On Monday, in releasing the latest figures on private home prices, the authority had likewise warned would-be home buyers to be savvy about upcoming supply.

When contacted yesterday, Savills declined to comment on the URA statement. All the director of Savills Residential, Mr Ku Swee Yong, would say was: "These measures reaffirm the very pro-business stance of the Singapore Government. The URA is reacting swiftly to the needs of enterprises growing their operations and tapping on the rosy economic conditions here."

But analysts point out the consultancy firm was not the only one talking up the market.

"The media has played its role in increasing the profile of the property market, increasing the speed of the property sector," said Mr Vasu Menon, chief editor of finatiQ.com.

For instance, an HDB flat in Tiong Bahru that fetched $720,000 and the $5,100-per-square-foot price tags for apartments at The Marq had made the headlines, and even front pages, of newspapers.

"The public will worry about these media reports. People could get scared, thinking that they missed the boat," said Mr Menon.

However, he noted that it was unusual for the Government to single out a particular company — a sentiment echoed by property analysts.

"It is unfair to tar every consultant with a single paintbrush," said Mr Nicholas Mak, director of research and consultancy at Knight Frank. "However, Savills may have said something that does not serve the nation's interests."

While agreeing, Chesterton International's head of consultancy and research Colin Tan observed that a shortage of office space did exist, and that would inevitably drive rents up.

"Everyone who is renewing leases is facing rents double or triple their existing ones," said Mr Tan. "If (the URA) doesn't think there's a strong demand for office space, then why provide transitional office sites?"

Apart from the Newton site, the URA has also launched for public tender a 0.25-ha commercial site at Anson, with the potential to yield a maximum permissible gross floor area of 23,418 sqm. A developer has committed to bid at least $116.2 million for it.

Together, both sites are expected to "meet demand for office space in the short term". The announcements come two weeks after the Government said it would make available sites for 534,000 sqm of commercial space in the second half of this year. - TODAY/sh

Baby

July 5th, 2007, 06:10 PM

Personally, I am now worried the govt. may throw in some regulatory policy in the near term to cool down the market. I really hope it's not going to be harsh, but merely warning messages.

Recently, you can see Savills Mr Ku Swee Yong had been very active in the public seminar, newspaper and TV media talking extreme optimistics on the property trends.

The recent hot property and enbloc fever has already caused a lot of pressure on the Ministers.

In this case looks like the ministers have not been too happy with some property consultant companies that had been trying to talk (or smoke ?) up the property market.

Arthur, is Ku your boss ?
I saw him presented in the seminar and his presentation was interesting with his unique thoughts.
He looks like a frank and honest person, but just ...树大招风.
Probably should advise him to be low profile at least in the next month or so to avoid being "arrowed" again.

arthur

July 6th, 2007, 03:53 AM

PrecisionDrive

July 6th, 2007, 02:04 PM

SM Goh: Property Prices At "Higher End" But Government "Not Too Worried"

Prices are still affordable for middle-income and HDB heartlanders, he says
(Edited transcript of SM Goh's interview with CNBC)
Irene Ngoo
AsiaOne
6 July 2007

Property prices in Singapore are at the "higher end" now but this does not mean a property bubble forming, said Senior Minister Goh Chok Tong.

While he noted that the property market is active, he said the government is "not too worried" and is watching the property market closely.

Mr Goh said this in an interview with CNBC, when he was asked if a property bubble seems to be forming in Singapore.

"Property bubble is short-term. I think the property market is active, but at this stage, we are not too worried. The prices are at the higher end. We watch very closely," he said in the interview, aired on CNBC today.

"Prices for the middle-income and for the HDB heartlanders … are still quite affordable for Singaporeans in general. So, my worry will be where do we go from here? It's a longer-term worry. It's not a short-term worry. It comes back to my point about talent. For Singapore to grow, you need talent, talent from Singaporeans or within Singapore and talent from outside."

Private home prices have shot up across the board in Singapore because of the property boom, robust economy and influx of foreign capital. The continuing rising trend has raised concerns that the property is getting overheated.

Estimates released by the Urban Redevelopment Authority (URA) earlier this week show that private property is on a dramatic upswing with plenty of momentum. Prices for the April to June period rose 7.9% – the biggest jump since the third quarter in 1999, when the market staged a brief recovery before sliding into a lengthy slump. The increase comes on top of a 4.8% rise in the first three months this year.

The Senior Minister said some MNCs have complained about the rising rental because of the property boom here but they are not staying away.

Mr Goh was interviewed for a CNBC special marking the 10th anniversary of the Asian financial crisis. He was then Prime Minister of Singapore when the financial meltdown swept the region, bringing several Asian economies to their knees. Singapore was not spared either, and was forced to cut 20,000 jobs, wages and CPF contributions.

Asked if rising costs could put Singapore at risk again of another crisis, SM Goh said: "I myself do not think a financial crisis is going to happen. The stock markets in Asia, of course, are very lively. Share prices are generally at an all-time high, but the banking structure is strong. In Singapore, we are resilient and have hardly any non-performing loans which we need to worry about."

"We have separated the non-financial activities of the banks from the financial activities. Banks running hotels, for example, and other non-financial activities have been taken out. So, in Singapore, we are less concerned about another financial crisis. But in the region, I think we need to watch that. But generally, my sense is that the banking industry in the region is also resilient."

SM Goh, who is chairman of the Monetary Authority of Singapore, also made this point in an earlier interview yesterday with the BBC, saying that while Singapore's buoyant stock market may suffer a correction, a financial crisis is not on the way. He also said that the government should not interfere in the stock market.

Asked again by CNBC if rising costs - not just business costs but cost of living as well - could put Singapore at a disadvantage, he said this is a worry and the government is monitoring inflation.

He added: "Costs are always a factor, but generally, you do want the standard of living of Singaporeans to go up. And a higher standard of living means more income in real terms, in the real sense. We do monitor inflation."

"Costs - we do worry. But that means you've got to move into higher value-added industries, like biomedical services and financial services, education, health and so on. We cannot be doing things which we were doing before 1997, where China and India will become much more competitive. So, costs are always important, but we are not going to allow costs to prevent us from growing. Just move into the right sector."

Has this kept any MNC from setting up base here or setting up plants here?

SM Goh said: "We are seeing quite a few of these - not so much in the manufacturing side but MNCs in the sense of international financial institutions - more wealth management, hedge funds and other such regional head offices are being set up in Singapore."

On the biggest lesson from the Asian financial crisis, Mr Goh cited having a strong financial sector as a key factor to withstand such a shock.

"We realised very much earlier that the financial industry is a global industry and, therefore, you’ve got to be more aware of what’s happening in the world and in the region, in particular. So you've got to set up, not just internally but also externally, a system of regional surveillance of the financial performances of banks outside Singapore too. In other words, it requires cooperation from other countries as well."

Just as Singapore has learnt a lesson from the financial upheaval a decade ago, he said other Asian economies are also "very much more acutely aware of the importance of bank supervision and good corporate governance."

"Our neighbours' own banking sectors - as far as you can see - are also much more resilient today than during the financial crisis or just before that."

Government may not be introducing any measures so soon right?

Baby

July 6th, 2007, 04:20 PM

Government may not be introducing any measures so soon right?

We hope it never happen.

But beware Govt gives a surprise punch when everyone thought nothing will happen...that's always the trick.

shctaw

July 7th, 2007, 05:35 AM

The surprise factor will decide the effectiveness of the measures.

If the government says they are worry, you expect them to do something.

My understanding is the "Price" the government want is to be on par with top cities in the world.

Baby

July 7th, 2007, 04:00 PM

Check spike in office, property prices or lose competitiveness: MM Lee
By Wong Siew Ying, Channel NewsAsia | Posted: 07 July 2007 2137 hrs

Minister Mentor Lee Kuan Yew

SINGAPORE: Check the spike in rents for office and residential space or risk losing out on competitiveness, said Minister Mentor Lee Kuan Yew.
Singapore, he warned, must never allow its rents to shoot up as high as those in Hong Kong.

Mr Lee made these points when he attended a Tanjong Pagar GRC community event at Orchard Road's Ngee Ann City on Saturday evening.

Orchard Road is buzzing, tourism is up, consumer confidence is evident at restaurants and food courts.

Last year, Singapore attracted 9.7 million visitors. This positive trend has continued into 2007.

Minister Mentor Lee, who noted all these when he and other MPs mingled with youths and young families from their constituency, said Singapore has done well and is now enjoying good economic growth and social development.

Its economy grew by 6.6 percent in the last quarter of 2006 and 6.1 percent in the first quarter this year.

This golden period could stretch over a few years, barring any wars or oil crises.

Mr Lee said: "The chances are, it'll be around 5 to 6 percent for the whole year. And for a mature economy like Singapore, with a per capita of over US$25,000, that's not bad at all. Once you have growth, all problems can be managed. When you have no growth and you have unemployment and no jobs, then all problems become intractable."

Investors are injecting funds into the East and Southeast Asia by investing in stock markets in the region.

Led by the growth of China and India, Mr Lee said the entire Asian region is getting a lift-up, with Singapore well-positioned to benefit from it.

He said: "The developed countries like America, Europe and Japan know that the growth for the world is in East Asia and in India, so they want to ride on this growth, and they are pouring money through fund managers, who are investing in stock markets of all the countries in the region. On average, ASEAN's stock markets have risen by 48 percent in the last few months."

And this has led to many financial institutions moving their top people and their regional headquarters to Singapore to manage the wealth, pushing up demand for high-end office and residential accommodation.

Mr Lee said: "Many homeowners who sold their condos in en bloc sales have received windfall gains. Some of them, in turn, are buying upper-end HDB executive and 5-room flats, pushing up their values."

Hence the need to check the spike in property prices to stay competitive.

Mr Lee added: "We are releasing more land for new office blocks and condos. While they are being built, we may have to make available other forms of office spaces such as the transitional office site at Scotts Road and release state-owned properties for office use to help keep rents from spiralling up.

"We must not allow our rent to shoot up like Hong Kong. As for residences, URA has assured us that there are more than 42,000 units of private housing being completed in the next three years."

As to whether there would be another Asian financial crisis, Mr Lee said even if there were a sudden withdrawal of funds like before, it would not be like the crisis of 1997.

This is because no Asian country today is heavily indebted in US dollars.

The minister mentor said how well an ASEAN country does during this golden period will depend on how sound it has become for foreign investments.

And he has noted that China has been getting the largest inflow, about US$70 billion a year, with India attracting about over US$10 billion a year.

Singapore has kept up its FDIs (foreign direct investments) at around S$6 billion to S$7 billion. Other Southeast Asian countries are also getting increasing FDIs, although they have not recovered to their pre-Asian crisis levels.

Looking ahead, Mr Lee said Singapore's future has been envisioned as a city with night buzz – with more liberal arts and entertainment scenes, and upcoming attractions like the integrated resorts and the first-ever Formula One night racing in the world

Mr Lee believes that in the next five years, Singapore will be transformed into one of the most vibrant cities in this part of the world. .

But some of the challenges that need to be tackled include ageing, working beyond retirement age, keeping medical costs down and narrowing the income gap.

Still, he is confident that an experienced team of ministers is getting Singapore's policies set in the right direction.

And the young in Singapore will have a bright future.

He added: "If we maximise our opportunities in this golden period, in five years' time, we will have a more vibrant, cosmopolitan Singapore that is not only clean, green and safe, but also a city that is fun to work and live in for Singaporeans and for the many foreign professionals and their families."

Baby

July 7th, 2007, 04:09 PM

This time the most heavy weight sound the alarm on property price and rental concern.

BUT, .... noticed he stressed he wanted the Singapore story to be a success and the most critical period is to ensure a successful transformation over the next 5 years.

So I interpret this as :

- to ensure property price doesn't over heat, government will try to increase land and property supply over time, and will tighten the governance.
- but will not apply any harsh policy causing any abrupt disturbance, stopping or harming the economy as a whole.
- If necessary will apply moderate or mild policy control if it reaches a threshold levels that government cannot tolerate.
- govt will try their best within effort to ensure Singapore will do very well in the next 5 years....so expect property to do well as well at least until 2012, provided no major global crisis.

Hope I am right...trying to consolate myself as well.

landlubber

July 7th, 2007, 05:14 PM

Baby

July 7th, 2007, 05:53 PM

Foreign investments inflow :

China - $70 billion
India - $10 billion
Singapore - $6 - 7 billion.

Singapore just a red dot had attracted more than half of India and a tenth of China. Singapore's attractiveness is incredible !

Take note of this as well :

"And this has led to many financial institutions moving their top people and their regional headquarters to Singapore to manage the wealth, pushing up demand for high-end office and residential accommodation."

This means the super and luxury high end still has much to go up, and that's not the govt's worry at all.

"
Mr Lee said: "Many homeowners who sold their condos in en bloc sales have received windfall gains. Some of them, in turn, are buying upper-end HDB executive and 5-room flats, pushing up their values."
Hence the need to check the spike in property prices to stay competitive."

However, I think the mid and mass market are really the government's main concern. In the past 3 months they had really gone up too much which are not healthy. He even mentioned enbloc sales has started to cause HDB prices to surge abnormal.

landlubber

July 7th, 2007, 06:23 PM

China and India foreign investment numbers are in US$, Singapore's in S$. But yes on a proportionate basis Singapore's is v healthy.

Baby

July 7th, 2007, 07:26 PM

China and India foreign investment numbers are in US$, Singapore's in S$. But yes on a proportionate basis Singapore's is v healthy.

Thanks for the correction.
Needs a pair of eagle eyes to noticed that.
But still very good at around US$4-5 billion.

shctaw

July 8th, 2007, 03:15 AM

Just what I thought, they want a vibrant city but not a "Too expensive" city.

Property price will still goes north. I doubt rental can go much higher.

In Monaco rental yield is only 2% because property price out run rental increase.

WLCL

July 8th, 2007, 11:20 AM

shctaw

July 9th, 2007, 12:32 AM

Baby,

The more the government says about property concern, the better for us.:)

For long term invest strategy, property should move at 7% annually. Right now the property market is doing leaps & bounces. (20% to 100%)

I think the price jumping should be stable by 2Q 2008. At the meantime just accept our profit with grace.:lol:

For those who are very scare, just cash out lah. :lol:

This time the most heavy weight sound the alarm on property price and rental concern.

BUT, .... noticed he stressed he wanted the Singapore story to be a success and the most critical period is to ensure a successful transformation over the next 5 years.

So I interpret this as :

- to ensure property price doesn't over heat, government will try to increase land and property supply over time, and will tighten the governance.
- but will not apply any harsh policy causing any abrupt disturbance, stopping or harming the economy as a whole.
- If necessary will apply moderate or mild policy control if it reaches a threshold levels that government cannot tolerate.
- govt will try their best within effort to ensure Singapore will do very well in the next 5 years....so expect property to do well as well at least until 2012, provided no major global crisis.

Hope I am right...trying to consolate myself as well.

dddddd

July 9th, 2007, 04:52 AM

well, if rental yield is stagnant, and prices stabilize next year, in this case, loan interest rates will be adjusted to balance between them.

in short, lower loan interest rates will kick in if rental yield is falling.

ChauTauVillager2

July 9th, 2007, 04:45 PM

Foreign investments inflow :

China - $70 billion
India - $10 billion
Singapore - $6 - 7 billion.

Singapore just a red dot had attracted more than half of India and a tenth of China. Singapore's attractiveness is incredible !

You should add Macau to the list....
Macau - $35 billion USD (contracted, with 20% spent, so say USD10bn/year for next few years.....)

This is an even smaller dot (with 500k people) !!!

wees8

July 17th, 2007, 05:36 PM

On 27 Jul, the government will be releasing price indices for 2nd quarter 07.

From the URA website, the average psf prices for condos/apartments for the following months are:

Mar 07 - $856 psf
Apr 07 - $905 psf
May 07 - $912 psf
Jun 07 - $959 psf

The (Jun 07)/(Mar 07) = 959 / 856 = 1.12, meaning a 12% increase. Let's see if my calculated figures are close to the official figures on 27 Jul.

I hope that I did not make any mistake in my calculations.

arthur

July 18th, 2007, 12:00 PM

MND announces revision in development charge rates
Posted: 18 July 2007 1428 hrs

Photos 1 of 1

Orchard Turn Site

SINGAPORE: The Ministry of National Development has announced that development charge rates will be revised from the current 50 per cent of the appreciation in land value to 70 per cent.

The revised rates take effect immediately and apply to development applications where provisional permission is issued on or after 18 July.

The statement added that the development charge was lowered from 70 per cent to 50 per cent in 1985 to avoid eroding the share of value enhancement that accrued to developers in a declining market.

But with the current buoyant property market, the government has decided to reinstate the development charge to its original rate of 70 percent.

For land with title restrictions on the use and intensity, which are subjected to a levy of differential premium by the Singapore Land Authority, the differential premium will be similarly adjusted to the 70 per cent rate based on the published table of development charge rates.

- CNA/yy

wees8

July 18th, 2007, 04:12 PM

Maybe the government had compiled the 2nd quarter price indices and the larger than expected increase which added more reason for them to do something.

PreciseDrive

July 18th, 2007, 05:17 PM

Maybe the government had compiled the 2nd quarter price indices and the larger than expected increase which added more reason for them to do something.

I think this increase in DC has limited effect but does serve a real warning.
The message is clear: "We will do something. Don't pray pray!"

The question is what other measure(s) will follow.
I believe capital gain tax and increase in stamp duties are out.

Baby

July 18th, 2007, 06:08 PM

I think at this stage, they're not trying to be harsh but just warning.

Looks like at this stage, they are merely restoring previous policy that had been relaxed in the pasts recessions.

- In Dec 06, they restored the stamp duty payment within 14 days.
- Now July 07, they restored the DC charged to 70%.

At the same time, the govt wants to benefit from the higher tax revenue collection sooner than later.

May be if someone can trace back and lists down what other policy they had relaxed previously during recession. These will help to understand what are the measures they may throw in if the property heat continues to accelerate.

Some of those that might be restored could include :
- In 2003, correct if I'm wrong they allowed deferred payment scheme.
- In May 2005, they reduced 20% to 10% cash upfront payment and allow up to 90% bank loan.

nav14

July 18th, 2007, 06:30 PM

I think this increase in DC has limited effect but does serve a real warning.
The message is clear: "We will do something. Don't pray pray!"

The question is what other measure(s) will follow.
I believe capital gain tax and increase in stamp duties are out.

Abolish deferred payment and increase minimum age to 25 years before a condo can go enbloc and the market will cool down very fast.

Maverick713

July 19th, 2007, 03:10 AM

Abolish deferred payment and increase minimum age to 25 years before a condo can go enbloc and the market will cool down very fast.

Even this increase in development charge rates could squash the en-bloc fever in suburban parts of Singapore. Developers would think twice about buying en-bloc land as government land sales might appear more attractive in these areas.

dddddd

July 19th, 2007, 03:41 AM

dddddd

July 19th, 2007, 03:44 AM

Even this increase in development charge rates could squash the en-bloc fever in suburban parts of Singapore. Developers would think twice about buying en-bloc land as government land sales might appear more attractive in these areas.

These move will only result in:
1) Developer will look for fresh land rather than enbloc
2) Even if enbloc is preferred, developer will transfer the cost to purchasers

shctaw

July 19th, 2007, 11:33 AM

It can only reduce en-bloc, it will not cool the market. Infact it may hot up the market as developer will have less option to refill their land bank.

Developer will pass the cost of the development charges to the buyer which will make property more expensive & more risky to invest.

Developer will go for maximum profit as they have lesser properties to sell. (more time to drag and sell higher. Novelty Group are such developer.)

Developer may opt to buy government 99 yrs leasehold land & futher push up the price of freehold land.

Developer may delay in launches as less property in hand. The longer they delay the higher the price. (eg. The Rochester should launch at $500 in Dec 2006, but end up launching $1200 in July 2007.)

This government move may add more burning fuel to our red hot property market.

My 2 cents; The move may not be the Government trying to cool the hot property market. It is trying to cool the Rental market. Government is also trying to get more revenue. My opinion is the government want a high price for our properties but at a low yield.(Low rental.)

PS; I can still remember MP Mah annoucing the move to allow 90% financing for properties. They call it "Announcement which will affect property market."
Their intention is to push the property market up back then.

We cannot have a Cosmopolitan city if our city is fill with cheap properties for any Tom,Dick & harry from oversea to come and stay. We must have people with $$$ & education full of inspiration to stay in Singapore.

Government will prefer to have another 2 millions new millionaire PR to stay in Singapore to push our population to 6.5 million.

cnud

July 19th, 2007, 08:04 PM

With the new DC hike, what will happen is there will be a 20% difference for Leasehold and Freehold properties. Simple?

PreciseDrive

July 20th, 2007, 02:51 AM

With the new DC hike, what will happen is there will be a 20% difference for Leasehold and Freehold properties. Simple?

Assuming both plot ratios remain unchanged.

PreciseDrive

July 20th, 2007, 02:58 AM

Fiona Chan
Property Reporter
The Straits Times
Friday, 20 July 2007

Singapore's office buildings have shot up in value by more than anywhere else in the world over the past year. These soaring values, as well as a rush of investment capital into Singapore, have made the property market here the world's hottest.

This was revealed by property firm Jones Lang LaSalle (JLL) earlier this week, ahead of a fuller report on global real estate investment due out next month. It will track property deals above US$5 million (S$6.5 million) worldwide, most of which involve commercial real estate, such as offices and shops.

JLL's head of Asia capital markets, Mr Stuart Crow, elaborated on the preliminary findings yesterday.

He told The Straits Times that capital values of property in Singapore, particularly offices, have risen the most in the world in terms of a straight monetary increase rather than a percentage rise.

In the prime Raffles Place area, office values rose by US$804 psf in the last 12 months, boosted by a supply crunch and soaring rentals. This is more than double the increase in Hong Kong's central district, where offices rose about US$280 psf in value on average, he said.

In percentage terms, Singapore's office values jumped a staggering 105% in a year to reach $1,568.50 psf last month.

In Hong Kong, values rose only 16.7% in the same period to hit US$1,958.60 psf. But Mumbai's growth beat Singapore's in percentage terms - up 123% to US$1,166.20 psf.

Office values in Singapore have been driven up by an acute supply crunch as well as soaring demand from expanding businesses. But some experts have warned that rising office prices and rent could hurt the Republic's competiveness.

The surge in real estate values here has also been boosted by buzzing investor interest in Singapore, said Mr Crow.

In the first half of this year, US$3.7 billion worth of real estate changed hands here - a 40% jump from a year earlier and the fourth highest figure in the Asia-Pacific region, behind Japan, Australia and China.

Mr Crow believes property investments here will double in the next 6 months to reach about US$8 billion for the whole year. 'We're still in the early stages. Next year, investment flows may strengthen even further.'

He said many new foreign players have arrived in Singapore's real estate market, adding that it has been transformed from an 'opportunistic' destination to a 'core market'.

Of the last 18 major office transactions in Singapore, 16 have involved foreign buyers, noted Mr Crow. About 11 of these were making their first acquisition in Singapore; for some, their first in Asia.

British-based property fund Develica, for one, bought its first Asian building last month, 1 Finlayson Green, for $231 million.

Sharkie

July 20th, 2007, 05:28 AM

can someone help?

will the fees paid to top up a site's lease back to 99 years will be affected?

wees corrected me the other day when the news were announced. the article did state that lease renewal will be affected. however, in a article today "Developers unfazed by rise in property fee," seems like there is no increase in fees for renewal of leasehold land.

did i misinterpret wrongly? thx.

confused sharkie

PreciseDrive

July 20th, 2007, 05:32 AM

Sharkie

July 20th, 2007, 05:44 AM

so whats differential premium in this context? thx

PreciseDrive

July 20th, 2007, 06:36 AM

so whats differential premium in this context? thx

DP is the top-up required for 99-leasehold land.

Baby

July 20th, 2007, 06:59 AM

yoongf

July 20th, 2007, 07:24 AM

Capitaland should be the biggest impact, although the spokeman claim they have included buffer.

According to the media, Gillman Height and Farrer Court incurred increase of DC of 90m to 126m and 275m to 385m. This is 36m and 110m increase or 146m in total. For Farrer Court, it's a 6% increase in total land acquisition cost, which is pretty high.

SC Global has to pay additional 18.8m for Ardmore acquisition.

I just wonder if the developer will reduce the payout to the enbloc owners or they will absorb the additional cost and pass it down to the buyers of the new developments in future ?

Usually for enbloc purchase, no legal avenue to revise price for such changes.
At most threaten to abort and forgo the option fee paid.

Hmm.. the increase in DP ... I think the impact is greater, since DPand DC is payable upfront, and there would be interest costs to consider as well.

Sharkie

July 20th, 2007, 11:43 AM

DP is the top-up required for 99-leasehold land.

today's article says

"These fees are payable if developers want to intensify the use of a site, for instance, by building a bigger project. However, fees paid to top up a site's lease back to 99 years will not be affected. "

which means the increase only affects dc but lease renewal remains the same.

very confused sharkie :?

wees8

July 20th, 2007, 12:46 PM

Maybe an unintended side effect could be an increase in successful en bloc deals. See the article:

Business Times - 20 Jul 2007

DC hike changes market dynamics, mood

Some fence-sitters stirred into action, others wait

By KALPANA RASHIWALA

(SINGAPORE) A day after the government effectively raised development charge (DC) rates across-the-board by 40 per cent, there seemed to be a shift in the mood and dynamics of the Singapore property market.

Some worried that Wednesday's surprise move could presage more measures from the government that might impact the market while others were stirred into action as greed gave way to a dose of realism.

Property consultants told BT that owners in estates planning collective sales were busy calling one another yesterday, saying they should stop sitting on the fence and speed up the signing of the collective sale agreement (CSA) before any further measures were announced - instead of waiting for higher and higher prices.

'There's caution, more realism in the air today,' Knight Frank's managing director Tan Tiong Cheng confirmed.

The hike also made some developments more attractive and others less so - depending on how high their DC component was.

DTZ Debenham Tie Leung director Shaun Poh reckons that developers who wish to continue landbanking may focus on sites with little or no DC component.

Some of these sites are in prime areas - such as Rivershire, The Claymore and Watten Estate Condo - and already have high development baselines.

In contrast, developers are likely to adopt a wait-and-see attitude for sites with significant DC components - say 15 per cent or more of total land value. Wednesday's hike is likely to add 6 per cent or more to the land cost of these sites. Those affected are likely to include 99-year leasehold properties such as privatised HUDC estates.

One influential developer told BT that while the measure was unlikely to cool the market, it could add to the cost of doing business. For example, if en bloc sellers in prime locations refused to budge, the move could fuel further hikes in the price of luxury homes on such redeveloped sites. The other question hanging in the air was: What next?

'Basically the question is: Is there going to be another jab from the government?' said Knight Frank's Mr Tan.

The announcement could also make the players more realistic in their expectations.

DTZ's Mr Poh said: 'Hopefully, this announcement will bring some balance to the property market. Owners can't just keep pushing up reserve prices higher and higher all the time.'

Agreeing, a seasoned industry player added that developers, too, may become cautious about buying en bloc sales sites and increasingly turn to the Government Land Sales programme. 'They'll see how buyers respond to new launches in coming weeks,' he added.

The Real Estate Developers Association of Singapore has so far not given any reaction to Wednesday's change.

A City Developments spokesman said: 'Our preliminary finding is that there will be insignificant impact on our existing projects. However, we will take this increase into consideration for future acquisitions.'

And with the 'second whammy' on the way on Sept1, when the government is expected to raise DC rates for specific locations and use groups based on market values, it makes more sense for developers to wait for another six weeks for a clearer picture to emerge before making any decisions on such sites.

DTZ's Mr Poh reckons that in cases where owners controlling the minimum 80 per cent of share values have signed CSAs or where signing is at advanced stages, 'there'll be no rolling back' in terms of lowering prices. Most CSAs give sales committees the power to raise reserve prices, but not to lower them, he explains.

'But for cases where signing of CSAs has not begun, agents will be discussing price strategies with sales committees, especially if the DC component is big and urge owners to be more realistic as developers' potential profit margins will be eroded,' he added.

Baby

July 20th, 2007, 03:25 PM

With only 40 days to Sep 1 when the DC rates will be revised up again, it's too late for those that are still at the signing of CSA stage or even those request to express of interest to avoid the next increase in DC rates. The next DC rates increase will likely be a huge hike across most locations given huge increase of selling price of new launches across the island.

PreciseDrive

July 21st, 2007, 02:52 AM

Jessica Cheam
The Straits Times
Saturday, 21 July 2007

Public housing rents have hit a 10-year high as sizzling demand for private property rentals spills over to Housing Board flats.
For the first time in recent memory, monthly rents for some HDB flats have pushed northwards of $2,000 in leases signed in the last couple of months.

These flats are located near the city or MRT stations, but rents for flats in less sought-after areas are rising too, say property consultants.

This growing demand to rent HDB flats is a spillover from the red-hot private rental market, where supply is declining and rents have been escalating, say property experts.

This is partly because of an influx of foreigners on the back of Singapore's booming economy, they say. Also, there is a squeeze on rental units, given the number of private properties that have been sold in en bloc sales.

Recent transactions released to The Straits Times by several property agencies included one 4-room HDB flat at Crawford Lane, not far from Lavender MRT station, renting at an eye-popping $2,800 a month.

Even on Singapore's outskirts, leases were signed for $2,400 a month for a Bedok North 4-room flat and $2,500 for a 3-room flat in Jurong East.

Rentals like these have been unheard of since the last property peak in 1996, said Mr Andy Low, marketing director of property agency EM Services, an HDB subsidiary. Rents slid as the Asian financial crisis took hold in 1997.

But flats fetching these high rents are still in the minority. 'The whole HDB market has not reached that level yet,' said Mr Low.

Flats in good locations, with good views, or those which have been recently refurbished, will command higher prices, he added.

Average rents islandwide are still below $2,000, but they are climbing steadily, said Mr Eric Cheng, senior division director of PropNex.

If private sector rents keep soaring, more tenants will turn to HDB flats - and this will cause a further supply crunch and lead to higher rents.

Mr Cheng said current HDB rents still have a buffer of 10% to 15% before hitting 1996 peak prices. Back then, a 5-room flat averaged $2,200. The present average is about $2,000, he said.

The figure cited by Mr Cheng is above HDB's average rental rates for each estate published quarterly on its website. For the second quarter, the average monthly rent for 5-room flats ranged from $1,100 to $1,700.

Managing director of C&H Realty, Mr Albert Lu, said the rise in rents, coupled with the HDB's recent relaxation of sub-letting rules, has pushed up rental yields - the annual rent expressed as a percentage of the flat's value.

Yields for many HDB flats are now 5% to 8% - a return considered by property experts to be strong.

In March, HDB announced that flat owners may rent out their entire unit after living in them for just 3 or 5 years, depending on how they bought the unit. This means over two-thirds of all flats may be sub-let.

Rental yields for HDB flats have typically been lower than those of private properties - usually 4.5% to 5%.

For example, an executive flat in Woodlands which cost $330,000 can now fetch a monthly rent of $2,200. This gives it a rental yield of 8%, said Mr Lu.

But buying up large numbers of HDB flats to make a fast buck is not an option, said ERA Singapore's assistant vice-president Eugene Lim.

Nobody can own more than one flat, and owners are still required to stay for a minimum period of time.

Mr Lim said public housing is still an attractive alternative for tenants to the rising rents in the private sector.

'In the long run, prices will start to come down when more units come online.'

Baby

July 22nd, 2007, 07:01 PM

Rise in land development charge will allow fair sharing of property gains
By Ng Baoying, Channel NewsAsia | Posted: 22 July 2007 2106 hrs

Rise in land development charge will allow fair sharing of property gains

SINGAPORE : The primary intention of the land development charge increase is not to slow down the frenzied property market.

National Development Minister Mah Bow Tan says the aim is to facilitate a fair sharing of the enhancement in the value of the land.

Last Wednesday, the government announced an increase in the land development charge from 50 to 70 per cent.

Experts were split, with some saying it would slow down the en bloc sales frenzy as developers would have to fork out more for land.

This would in turn stem rising rental costs as fewer redevelopments mean fewer apartments torn down.

But others said the bullish market sentiments would override that.

Weighing in, the National Development Minister says the impact on en bloc sales will be minimal and underlines the rationale behind the charge.

He says: "The development charge is to take some of that increase in value to go and improve the infrastructure. Roads, rail, power, whatever. Because you know when you increase the plot ratio - build more flats, build to a higher level - you need to provide the infrastructure. So that's what the development charge is. You could say it's a tax on the increase in the value as a result of government action."

So depending on the stipulated land use, some projects may not be affected.

Mr Mah says: "When you look at the different en bloc sales you'll realise that some en bloc sales actually do not incur development charge at all, partly because they are actually able already to develop up to a higher intensity. So, the government doesn't have to go in and change the planning parameters."

He notes that a recession in 1985 led to the downward revision of the land development charge.

But now that the property market has more than recovered, it is time to reinstate things.

Mr Mah says: "It's what we feel to be a fair share of the enhancement of the value of the land. So that's why during this time, the market is healthy, we decided it's timely for us to go back to the original."

He says the current squeeze will only last a short while as he expects ample supply to come in over the next 2 or 3 years in various categories.

And to further ensure smooth functioning of the market, there should be comprehensive information sharing by analysts and developers.

He says: "This is not just government coming out with such information. I think developers and analysts should also make it a point when they put out information that they should put it out based on facts, not based on speculation. And if they do publish information based on their own analysis of the situation, I think it's important for them to upfront say so, so that people know."

"It's not just the government agencies putting out information. It's very important to make sure that you keep publishing out this information so everybody knows, so they don't get spooked, panicked by one particular headline, one report in the papers about record prices here or record rentals there."

In all, Mr Mah says the property market will continue to be monitored with sustainable growth in mind, and more land will be released through the government land sales programme if necessary. - CNA/ch

Baby

July 22nd, 2007, 07:05 PM

He notes that a recession in 1985 led to the downward revision of the land development charge.

But now that the property market has more than recovered, it is time to reinstate things.

Mr Mah says: "It's what we feel to be a fair share of the enhancement of the value of the land. So that's why during this time, the market is healthy, we decided it's timely for us to go back to the original."

He says the current squeeze will only last a short while as he expects ample supply to come in over the next 2 or 3 years in various categories.

Why the Govt didn't re-instate the 50% to 70% DC during the 1995-1997 when property was hot and went up so much ? Why now but not in the last peak ?

If a squeeze in supply will last over next 2-3 years, is he hinting us to buy more now ?

wees8

July 25th, 2007, 10:35 AM

Business Times - 25 Jul 2007

COMMENTARY
Will property market see a repeat of 1996?

Industry watchers expect govt to take more calibrated approach this time round

By KALPANA RASHIWALA

THERE'S a sense of deja vu in the air for those of us who witnessed the last residential property boom in the 1990s. Record prices being reported by developers, an en bloc sale being attempted in just about every private estate, foreign buying at record levels, and subsales again in favour.

Even the government's approach to dealing with the situation seems reminiscent of 1996, according to some market watchers.

The Ministry of National Development and Urban Redevelopment Authority have been giving assurances lately that there will be sufficient supply of homes and that they will make more sites available, if necessary. And just like over a decade ago, MND and URA have recently been making public more information on the property market to provide greater transparency.

Flashback to the mid-90s. As far back as 1994, the government raised booking and forfeiture fees to curb speculative activity. But speculation picked up again and in January 1996, URA announced that the government had set aside enough land for 100,000 private homes for the five-year period from 1997 to 2001 - more than thrice the amount necessary to meet its target of releasing land for 6,000 private homes a year.

The following month, URA revealed the sales status (as defined by options granted by developers) of individual private residential projects, and said it would do this each quarter. This was to correct any wrong impression of high take-up rates.

Fast forward to 2007. Last month MND announced the biggest Government Land Sales (GLS) Programme with enough land for about 8,000 private homes.

Earlier this month, URA said that there were about 32,700 yet-to-be-sold private homes in uncompleted projects as of Q1 2007 - possibly enough to meet demand for the next three years.

On the transparency front, URA last week released for the first time information on the number of units sold for each uncompleted private residential project by price bracket, in the month of June. Such information will henceforth be released monthly.

But what if, like in 1996, such measures fail to calm the market?

The thing with the property market is that it is primarily sentiment driven. In a bull run, people may not heed reason and logic and are driven by fear and greed instead.

When the strategy of giving assurances of adequate supply and releasing more market information failed to stem speculation in 1996, the authorities were forced to announce a slew of measures on May 14 that year. These included taxing as income the gains made from selling properties within three years of purchase and introducing a sellers' stamp duty for those who sold residential properties within three years of purchase.

Financing was also clamped down. Banks could not make housing loans for more than 80 per cent of the purchase price or value of a property, whichever was lower. Permanent residents were limited to one Singapore dollar housing loan each while foreigners were denied such loans altogether.

All of the May 1996 anti-speculation measures were subsequently removed during the property doldrum.

To many market industry participants now, the writing is on the wall. They figure that the government may come up with measures to cool the market if the property bull run threatens Singapore's competitiveness.

However, the stakes are higher now. Many credit the current property boom to the government's efforts to promote Singapore, which have put Singapore on the radar screens of overseas property investors again, and its embrace of foreign talent and high net-worth individuals.

In short, many of the foreign investors in the local property market today were wooed by Singapore. Slapping a set of harsh measures might send out a negative message about Singapore as an investment destination as a whole.

Also, speculation is yet to reach the heady levels seen in 1996.

Some in the industry think a 'whisper campaign' by the government to tighten financing targeted at banks and developers may be less harsh and avoid a panic crash.

For example, banks could be asked to be more careful in screening housing loan applications. 'Maybe, instead of giving loans up to the maximum 90 per cent of the value of homes, they could limit this to 80 per cent. This will make people think twice before they pay record prices for homes,' reckons a seasoned industry observer.

Deferred payment schemes extended by developers could also be moderated or suspended, some industry players said. The ability to buy a property by making an initial payment of just 10 or 20 per cent of its value, with the next payment postponed to after the project is completed, makes things a whole lot easier for those thinking of flipping properties for a quick gain. Removing deferred payments should help take the froth from the market.

But there is a school of thought which believes that getting rid of the deferred payment, which often entails buyers paying 3 to 5 per cent more for the price of a home than under a progressive payment scheme, could crash the market.

Some suggest that taxing gains from selling properties within a short period of time may be a fairer way to contain the current exuberance. Those who make quick gains from flipping their properties should be prepared to part with a portion of their gain by paying income tax on it.

It remains to be seen if history will repeat itself.

Baby

July 28th, 2007, 09:23 AM

Guys, do you know if just locals or foreigners have been buying the city fringe and suburban in the recent new launches ? The news media reported that most of these new launches like the recent Duchess Residences at Bukit Timah are all locals.

If foreigners are forced to move out of prime districts due to rental hike and buying to stay, would they buy existing completed built houses or new launches that have not even been built yet ?

If owners of enbloc had been forced to moved out of their homes, would they buy existing completed built houses or new launches that have not even been built yet ?

It seems that the new launches at City fringe and suburban are all crowded by local investors which are not for stay. Will this be sustainable ?

The D1,4,9,10,11 are definitely crowded with investors, foreigners and local. I would think the price over these areas despite going up are more sustainable as they're supported by rich foreigners and funds ?

wees8

July 28th, 2007, 06:26 PM

If foreigners are forced to move out of prime districts due to rental hike and buying to stay, would they buy existing completed built houses or new launches that have not even been built yet ?

Just announced ... JTC is renting out more flats to foreigners and SERS (Selective En-bloc Redevelopment Scheme) flats that were originally targeted to be demolished will now be rented out to the public. The first SERS flats involved are in a choice location ... Tiong Bahru.

Baby

July 28th, 2007, 07:21 PM

I read one of the latest Aug article -"Business Review"- that an expatriate who had came to Singapore a few years back had purchased 11 residential property across 5 districts over the past few years. He had stopped his purchasing giving the reason they had priced up too much since beginning of this year. However, property consultants had different opinion that the price will continue up trend towards at least 2010, & advise people to continue to buy. Despite contrary opinion, at least this guy must have had bag over multi-millions of profit at least on paper...that's the kind of foresight that deserves admire, but of course must have that kind of money to do that in the first place.

ayanami

July 29th, 2007, 01:34 AM

Any comments/thoughts about the recent "bad news" about Wall Street woes (due to US housing slowdown and subprime mortgages) ?

It seem to have affected the regional bourses quite badly, including Singapore.

I am really not good with macro-economics, anyone care to share their take on these recent developments ? Bottomline, will it cause a slowdown in our property market ? Should one be exiting the market sooner rather than later ? [in the next few months, rather than year-end or early next year].

shctaw

July 29th, 2007, 01:40 AM

Do not worry, a sky rocketing stock market is bad news for property investment. Why invest in property when you can make more in stocks.

Now that the stock market shiver and move to correction phase, fund managers may take it as a reason to sell stocks & buy into property.

To me a stock market that is trending downward (but not crashing) is good for property.

Baby

July 29th, 2007, 03:04 PM

That's true indeed. In the China case, 18mths ago, China govt clamp down on property and the money went into stock market. Then stock market rally and property market grow slower, until recently China clamp down on stock market, and part of the money start to go into property market accelerating again.

If you look at Singapore market over past 2 years, property market and stock market rally up together. I think it's probably due to just too much liquidity inflow and the sentiment change in Singapore over the positioning change towards global city and the upcoming IRs effect.

ayanami

July 30th, 2007, 03:57 AM

shctaw, baby, thanks for sharing your views.

I have heard and read about the limited correlation (in fact, some theories suggest inverse correlation) between stock markets and property markets. But to me, that's just theory and I appreciate and put more weightage on your views/first hand observations you have encountered in your investment experiences.

Just feeling a little jittery recently with the bad stock markets, and a little assurance will certainly help to calm my fears. :)

Baby

July 30th, 2007, 04:19 PM

July 30, 2007
Govt to take a more 'hands-off' approach to property market
By Imelda Saad, Correspondent

'I think we try to avoid interfering in the market if we can and that's the reason why we continue to depend on broad dissemination of information even sometimes persuading various parties to come up with more accurate information and then collating them and getting URA and HDB to push out this info in a very timely and very comprehensive manner,' said Mr Mah. -- ST

THE Government will depend on 'non-interventionist measures' to cool the red hot property market.
National Development Minister Mah Bow Tan said the Government's twin approach is to give out more information and push up supply.

Speaking to the media just three days after the release of Singapore's first comprehensive data on housing prices, Mr Mah also said 'there's no reason to be alarmed.'

Referring to sub-sale figures, he said: 'If you look at the numbers, it's quite a distance away from what we have in the mid 90s, particularly in 1996.'

The minister also declined to say if the government will introduce more measures to cool the property sector.

'I think we try to avoid interfering in the market if we can and that's the reason why we continue to depend on broad dissemination of information even sometimes persuading various parties to come up with more accurate information and then collating them and getting URA and HDB to push out this info in a very timely and very comprehensive manner,' he said.

Mr Mah added long term measures are already in place.

There will be sufficient supply to meet housing demands over the next three to five years.

In June, the Ministry of National Development (MND) announced the biggest Government Land Sales (GLS) Programme with enough land for about 8,000 private homes.

Another 56,182 housing units are in the pipeline. Of which 30,158 units have not been sold. These units are expected to be ready between the end of this year and 2010

'The long term measures are very well in hand and we know that there's going to be enough supply in the next 3 to 5 years. I think that's a fact and nobody disputes that. It's really what happens in the short term.

'I think there's a lot of excitement and maybe a little bit of panic in the short term - maybe next month, 6 months, one year', said Mr Mah.

This is where measures like releasing vacated flats under the Selective En Bloc Redevelopment Scheme or Sers will help.

120 such flats in Tiong Bahru will be released for short term rental.

The flats, which are built in the 50s, will be spruced up by the Managing Agents, tasked with renting out the flat.

'The Managing Agent will do some renovations, touch up, repairs and do some short term rental for one or two years. It's not going to make a big dent in the market but it will test the market,' Mr Mah explained.

If response to these flats is good, up to 5,000 more units can be added to the supply over the next there years.

Mr Mah said he's confident that by pushing out information and increasing housing supply, property prices will be moderated.

He said the latest data released last Friday showed that although prices have gone up across the board, rates remain 'affordable'.

'The government will keep an eye on the situation to make sure we remain competitive,' he said.

Baby

July 30th, 2007, 04:20 PM

Guys, can go and buy more now !

ayanami

July 30th, 2007, 04:31 PM

landlubber

July 30th, 2007, 05:48 PM

Thanks Baby for contributing the article.

Good piece of news. Rather reassuring. Apart from external economic factors, I was initially quite concerned about measures that the government will put in place. With this press release, I think in the near term (3-6 months), it is unlikely to have any drastic measures (if any at all).
The govt knows that it cannot be interventionist- one hint of unpredictability and all the funds will pull out of Singapore. That will precipitate a crash that will make 1996 look like a minor hiccup. The recent market volatility is another reminder that the market should dictate. Just imagine the govt intervenes now and 2 months later a 2001 style global bust comes along. Singapore will take another 20 years to recover.

shctaw

July 31st, 2007, 03:57 AM

http://www.straitstimes.com/Video+News/Singapore/STIVodcast_2284.html?playid=2284&type=Top

Mah interview. For those who do not like to read, here is the news.

Free Market economy do not allow government to put their hand on. Investors all over the world know how to punish such government. Selling the stock index futures, sell the currency, sell the assets, sell the stock market until the government down on their knee.

Who suffer? The citizen who are mostly innocent.

Who gain? The rich again can start buying cheap properties using their foreign currency reserve. Buy shares at hugh discount.

dddddd

July 31st, 2007, 04:26 AM

sigh... credit limit almost reached liao. cannot buy. hahaha.

shctaw

July 31st, 2007, 04:40 AM

sigh... credit limit almost reached liao. cannot buy. hahaha.

Hahaha.....Mi too. DBS do not want to loan me anymore. (UOB still quite keen though:) )

I am now releasing my investment to keep some cash for investing.

I just sold my Pasir Ris apartment..............Orchard Rd I am coming liao. Wilkie Studio wait for me haah. CDL wait for me hor.

dddddd

July 31st, 2007, 05:07 AM

haha. yu, since yours also reached liao. then we can co-invest. hahahahah

LittlePig

July 31st, 2007, 05:36 AM

let's max-out all our credit cards and credit lines and pool our funds... hahaha...

PreciseDrive

July 31st, 2007, 06:04 AM

let's max-out all our credit cards and credit lines and pool our funds... hahaha...

Maybe we can start a cooperative to provide loans or perhaps a trust to invest in properties?

stingraytan

July 31st, 2007, 09:07 AM

Baby

July 31st, 2007, 03:52 PM

Hahaha.....Mi too. DBS do not want to loan me anymore. (UOB still quite keen though:) )

I am now releasing my investment to keep some cash for investing.

I just sold my Pasir Ris apartment..............Orchard Rd I am coming liao. Wilkie Studio wait for me haah. CDL wait for me hor.

Is that the penthouse you stay or the other one you rented out ?
I thought you just increased the rental on that poor tenant ?

Any tips why Wilkie Studio is a better choice among the rests given prices at D9-11 are skyrocketing ?

wees8

July 31st, 2007, 05:01 PM

Congrats to shctaw!

Veru

July 31st, 2007, 08:07 PM

Congrats to shctaw!

Hip Hip hooray -- shctaw we WANT, no no we DEMAND the VC champagne now :banana:

shctaw

August 1st, 2007, 12:38 AM

couldnt resist the 850k offer?? :banana:

congrats on your sale!

Mis-understood lah.

I sold the Penthouse I bought back in Feb. My wife says she love our current place, hence no chance to stay in the penthouse. In a bear market this project will never sell.

I spend $20k on furnishing, furniture & even a 42' plasma TV. The buyer see liao cannot resisit. He only ask for discount a bit.

shctaw

August 1st, 2007, 12:41 AM

Is that the penthouse you stay or the other one you rented out ?
I thought you just increased the rental on that poor tenant ?

Any tips why Wilkie Studio is a better choice among the rests given prices at D9-11 are skyrocketing ?

I thought CDL ex-buyer got discount. Now that I find out no discount............:ohno:

Maybe I should just wait and see.

I think there are 6 new projects launching one after another in Sophia & Wilkie Area. I think it may hit $2k psf by end 2007 because of all the new launches.

Maybe will consider other area................

stingraytan

August 1st, 2007, 06:32 AM

Mis-understood lah.

I sold the Penthouse I bought back in Feb. My wife says she love our current place, hence no chance to stay in the penthouse. In a bear market this project will never sell.

I spend $20k on furnishing, furniture & even a 42' plasma TV. The buyer see liao cannot resisit. He only ask for discount a bit.

i see.. thot its loyang gardens from the other thread. paiseh paiseh..
CDL ex buyer only get "exclusive invitation" to new "PRE" launches ah..

actually, if the chances of hitting 2kpsf by yr end is high, wouldnt getting an place now at mkt prices of 1.2-1.5k psf be a good buy now?? or are there other properties that can potentially provide even higher returns??

Baby

August 1st, 2007, 10:27 AM

That day at the street outside CDL office, I just smiled at Chia NH, GM of CDL. Not sure like that can get discount on new launches ? :)

Actually I think Sentosa is a good buy with 2 new launches 2H07. One from CDL, although I think the site is looking at waterway rather than sea front. With SC Global bought that beachfront site, they will definitely be selling above $4000psf. So, I think if new launches in 2H07 sell below $2500psf, may be can still try despite going up a lot since the Coast launch in 4Q06 at 1600psf ? Limited sites left, and no threat from Govt releasing more lands for sale at Sentosa Cove.

dddddd

August 1st, 2007, 10:52 AM

Yes, some agents i talked to advised me to get one in Sentosa. Really exlusive. But my worry is, if the Genting IR does not work out, it will be a dead investment. Unlike Marina Bay, at least the new downtown and financial centre is there... what think you?

shctaw

August 1st, 2007, 11:31 AM

dddddd

August 1st, 2007, 11:54 AM

Good point. Will consider. Sentosa I am coming.:cheers:

what good point? but then you said you were going for sentosa??? so which one? :D Sentosa or Marina Bay? :lol:

Baby

August 1st, 2007, 03:55 PM

what good point? but then you said you were going for sentosa??? so which one? :D Sentosa or Marina Bay? :lol:

Yes, some agents i talked to advised me to get one in Sentosa. Really exlusive. But my worry is, if the Genting IR does not work out, it will be a dead investment. Unlike Marina Bay, at least the new downtown and financial centre is there... what think you?:

Invest at both IRs will not be wrong, at least in the next 10 years. Where got competition in the Asia region over next 10 years except Macau ? Even Macau is a different segment from Singapore, just like luxury prime (SGP) vs mid-low (Macau) segments.... or put it this way, International vs Local focus.

I was at Harbourfront on Monday, and I was surprise with the progress at the other side of the bridge at Sentosa. The clean up progress was tremendous, nothing left...I believe they will be on-time, on-target for the IR at Sentosa.

I regret didn't buy Oceanfront last year indeed. Not sure if I can afford the new launch although I desire to own it now then late. I had missed the Sentosa country club when it was $80k in 2005 vs 260k now. Even SICC used to be #1 most expensive in Singapore has to queue up after Sentosa club. The Marina Bay Golf club is a public course own by NTUC, or if privatised it will be the #1 most expensive club in the country.

Sentosa is exclusive although I don't like that "ulu" way drive to the Sentosa Cove.

Veru

August 1st, 2007, 04:08 PM

Invest at both IRs will not be wrong, at least in the next 10 years. Where got competition in the Asia region over next 10 years except Macau ? Even Macau is a different segment from Singapore, just like luxury prime (SGP) vs mid-low (Macau) segments.... or put it this way, International vs Local focus.

I was at Harbourfront on Monday, and I was surprise with the progress at the other side of the bridge at Sentosa. The clean up progress was tremendous, nothing left...I believe they will be on-time, on-target for the IR at Sentosa.

I regret didn't buy Oceanfront last year indeed. Not sure if I can afford the new launch although I desire to own it now then late. I had missed the Sentosa country club when it was $80k in 1995 vs 260k now. Even SICC used to be #1 most expensive is now 1st runner after Sentosa club.

Sentosa is exclusive although I don't like that "ulu" way drive to the Sentosa Cove.

In April 2007 my agent & I went to see the Sentosa Cove plots for auction in May 2007. We went with the Cove office staff to drive around the underconstruction homes as well as to physically stand on the auction plots--they were quite gorgeous--by far the best investment in Sg if you have USD 10 million to invest in the land + structure (lots of restrictions on the time limit to build, no rental etc etc). As I have mentioned before in this forum, The Sail et all are "low class" vis-a-vis the real high end of sg--The Sentosa Cove beach front plots. Get your act together Mr high-roller shctaw !!

PreciseDrive

August 1st, 2007, 04:18 PM

Invest at both IRs will not be wrong, at least in the next 10 years. Where got competition in the Asia region over next 10 years except Macau ? Even Macau is a different segment from Singapore, just like luxury prime (SGP) vs mid-low (Macau) segments.... or put it this way, International vs Local focus.

I was at Harbourfront on Monday, and I was surprise with the progress at the other side of the bridge at Sentosa. The clean up progress was tremendous, nothing left...I believe they will be on-time, on-target for the IR at Sentosa.

I regret didn't buy Oceanfront last year indeed. Not sure if I can afford the new launch although I desire to own it now then late. I had missed the Sentosa country club when it was $80k in 1995 vs 260k now. Even SICC used to be #1 most expensive in Singapore has to queue up after Sentosa club. The Marina Bay Golf club is a public course own by NTUC, or if privatised it will be the #1 most expensive club in the country.

Sentosa is exclusive although I don't like that "ulu" way drive to the Sentosa Cove.

Wow! Sentosa Country Club went up by 3 times! Incredible!
What a waste! You should have bought it then.
Otherwise, your ball could be hitting those Sentosa Cove bungalows from Tanjong 2nd Tee now.

shctaw

August 1st, 2007, 04:29 PM

At $200k+ still cheap compare to those Condo or houses in Sentosa.

Close one eye for those owners.

Baby

August 1st, 2007, 05:15 PM

Wow! Sentosa Country Club went up by 3 times! Incredible!
What a waste! You should have bought it then.
Otherwise, your ball could be hitting those Sentosa Cove bungalows from Tanjong 2nd Tee now.

I made a typo mistake. It was 80k in 2005, but now is 260k. People are saying it will go up to 360k easily early next year....but I better put money in 10% upfront payment for property lah !

SICC - own by local rich.
Sentosa Country Club - own by foreign rich.
Different levels of playground for the rich...the difference will stretch furthur over the years....just like landed property in mainland and sentosa.

stingraytan

August 2nd, 2007, 04:22 AM

with markets sliding some say due to correction, some say due to structural flaws in US finance houses, good time to stand by some cash to buy into stocks?? or for the courageous, short sell??!!:nuts:

PreciseDrive

August 2nd, 2007, 04:24 AM

....but I better put money in 10% upfront payment for property lah !

SICC - own by local rich.
Sentosa Country Club - own by foreign rich.
Different levels of playground for the rich...the difference will stretch furthur over the years....just like landed property in mainland and sentosa.

Agree with you that it is better to invest in property.
I have foreseen country clubs prices going up since early this year but investing in properties is still my priority at this moment.
Anyway, since I am no golfer and play only occasionally, the purchase can be delayed.

Also agree that the difference will be stretched. Hopefully, I have made enough to be welcomed by one of these clubs. :)

stingraytan

August 2nd, 2007, 06:48 AM

Date Open High Low Close Avg Vol Adj Close*
Mar-98 1,616.00 1,700.50 1,532.60 1,629.20 3,405,500 1,629.20
Feb-98 1,264.70 1,636.80 1,264.70 1,615.40 4,486,700 1,615.40
Jan-98 1,530.20 1,531.30 1,031.30 1,259.90 5,147,900 1,259.90
Dec-97 1,665.00 1,758.40 1,509.30 1,529.80 2,794,800 1,529.80
Nov-97 1,587.40 1,768.50 1,587.40 1,660.60 2,875,500 1,660.60
Oct-97 1,954.80 1,954.80 1,486.70 1,586.10 2,696,000 1,586.10
Sep-97 1,805.60 1,954.70 1,772.20 1,954.70 2,009,400 1,954.70
Aug-97 1,966.40 1,974.20 1,735.70 1,805.60 2,376,500 1,805.60
Jul-97 1,987.10 2,009.60 1,913.60 1,967.10 1,593,200 1,967.10
Jun-97 2,065.30 2,066.70 1,968.70 1,988.00 1,012,900 1,988.00
May-97 2,004.30 2,118.80 2,004.30 2,065.50 1,360,700 2,065.50
Apr-97 2,072.50 2,114.10 1,981.90 2,004.30 1,636,400 2,004.30
Mar-97 2,195.70 2,202.90 2,065.60 2,073.00 1,159,200 2,073.00
Feb-97 2,214.90 2,270.90 2,190.50 2,195.70 1,896,500 2,195.70
Jan-97 2,216.80 2,278.90 2,209.50 2,216.50 1,730,000 2,216.50
Dec-96 2,190.30 2,219.60 2,154.50 2,216.80 869,100 2,216.80
Nov-96 2,086.70 2,221.20 2,062.70 2,188.10 1,858,100 2,188.10
Oct-96 2,175.70 2,177.30 2,035.00 2,083.20 916,000 2,083.20
Sep-96 2,153.50 2,208.30 2,094.50 2,177.20 1,179,700 2,177.20
Aug-96 2,111.80 2,182.60 2,092.70 2,153.50 962,200 2,153.50
Jul-96 2,301.90 2,301.90 2,083.20 2,111.80 1,153,000 2,111.80

if the STI is an indication/gauge of singapore's economy, and with chicken littles and news reporting current property bull run comparable to '96-97 property "bubble" just before the burst, an STI high of 2,500 during that time compared to 3400 now, we are looking at at least 36% margin for property prices before the peak of '97? :lol:

dont mind me.. just tokking rubbish...

stingraytan

August 2nd, 2007, 07:07 AM

Baby

August 2nd, 2007, 07:07 AM

I thought it was like a theory that stock market is always 9-12mths ahead of the actual property price cycle. That means if stock market continue decline , we still have 9-12mths exposure to the property market ? But if stock market goes up again like the correction on the 28 Feb, then property market should continue to go up trend.

stingraytan

August 2nd, 2007, 07:08 AM

oh?? thought stock mkts got a 7-8 years cycle and property 10-12??

Baby

August 2nd, 2007, 07:13 AM

kekeke.. my agent just told me my studio unit at the sail have a projected rental of 6k a month.. :lol:
so a annual rent of 72000, with a rental yield of 4%, i can sell my unit for 1.8million, which translates to around 2700psf..:nuts:

To best gauge the rental will be to take reference to those best facing property along the Singapore River like the Pier at Robertson. Or the best will be to take the Soho@Central and Icon when they TOP shortly. Sail will command a rental premium of at least 10-20% over those.

Sailorman

August 2nd, 2007, 07:26 AM

So many counting chickens before they hatch.Just hope everything goes well for Sg for the next few years.

stingraytan

August 2nd, 2007, 07:36 AM

So many counting chickens before they hatch.Just hope everything goes well for Sg for the next few years.

prehaps you didnt notice the :lol: (laugh out loud) and the :nuts: (nuts) in our post????!!

dddddd

August 2nd, 2007, 09:05 AM

stingraytan

August 2nd, 2007, 09:08 AM

ermm.. did you see the lol and nuts sign???

altho we cant rule out that possibility in future, i always take what agents say with many pinches of salt.. ;p

dddddd

August 2nd, 2007, 09:26 AM

:p agents are agents. just to earn a living to them.... :)

surfers_

August 2nd, 2007, 12:07 PM

Better make him sign a guarantee deal. :lol:

kekeke.. my agent just told me my studio unit at the sail have a projected rental of 6k a month.. :lol:
so a annual rent of 72000, with a rental yield of 4%, i can sell my unit for 1.8million, which translates to around 2700psf..:nuts:

shctaw

August 3rd, 2007, 02:28 AM

Get your act together Mr high-roller shctaw !!

My boss and I when to see the plot during the beginning stage of the Bungalo plot. That time only $400+ psf, but never have fore-sight.

I think a plot of land is only $2 million. A few things make me drop the idea of Sentosa back then.

1. It is scary to see empty land without any neighbour.
2. Troblesome to build from scratch.
3. Do not know whether bank willing to loan or not.

I think in any investment, you make some you loss some.

I think GCB in Singapore still good bet.

Veru

August 3rd, 2007, 04:12 AM

My boss and I when to see the plot during the beginning stage of the Bungalo plot. That time only $400+ psf, but never have fore-sight.

I think a plot of land is only $2 million. A few things make me drop the idea of Sentosa back then.

1. It is scary to see empty land without any neighbour.
2. Troblesome to build from scratch.
3. Do not know whether bank willing to loan or not.

I think in any investment, you make some you loss some.

I think GCB in Singapore still good bet.

Well atleast you went & had a look===good for you---it means you are a very serious player who scouts all opportunities. I think it must be $1600+ psf for the land today, maybe more for on-the-sea plots. Since I have built my farm house from scratch I agree it is 'bothersome" but it was most fulfilling as well

shctaw

August 3rd, 2007, 04:27 AM

Well atleast you went & had a look===good for you---it means you are a very serious player who scouts all opportunities. I think it must be $1600+ psf for the land today, maybe more for on-the-sea plots. Since I have built my farm house from scratch I agree it is 'bothersome" but it was most fulfilling as well

That time I do not have enough money to buy the plot if the bank do not want to loan. That time property quite low also.

If I have to pay in cash I will not be able to buy too.

Now got some cash but everything so high now. Just stick to what I have and be happy about it. I consider myself very fortunate liao. Prior to 2000 I belong to the lower middleclass group.

Veru

August 3rd, 2007, 01:06 PM

That time I do not have enough money to buy the plot if the bank do not want to loan. That time property quite low also.

If I have to pay in cash I will not be able to buy too.

Now got some cash but everything so high now. Just stick to what I have and be happy about it. I consider myself very fortunate liao. Prior to 2000 I belong to the lower middleclass group.

Mr shctaw--you are an inspiration to us all --a Sg Horatio Alger story (& you have proven to be a top-class financial brain my friend :) )

shctaw

August 3rd, 2007, 06:01 PM

Mr shctaw--you are an inspiration to us all --a Sg Horatio Alger story (& you have proven to be a top-class financial brain my friend :) )

I am not an inspiration to anyone, at least not now. I am still vested with a liability of $5 million owe to 3 different banks.

On paper I make a gain, actual fact is that I am still not making any money unless I sell everything tomorrow.

When come to my hard earn money, every cent is like my army/bullets. I am stingy in certain thing which I feel it is a unecessary luxury or a waste. When I feel that my money is sent out to bring in more money to secure my future, I am all out for it.

I do not own a car, I do not have a country club, I hardly have any cash. How can I be an inspiration.:ohno:

Veru

August 3rd, 2007, 06:24 PM

I am not an inspiration to anyone, at least not now. I am still vested with a liability of $5 million owe to 3 different banks.

On paper I make a gain, actual fact is that I am still not making any money unless I sell everything tomorrow.

When come to my hard earn money, every cent is like my army/bullets. I am stingy in certain thing which I feel it is a unecessary luxury or a waste. When I feel that my money is sent out to bring in more money to secure my future, I am all out for it.

I do not own a car, I do not have a country club, I hardly have any cash. How can I be an inspiration.:ohno:

Mr shctaw, you are an inspiration because you had an AMBITION...and most importantly...you are acting and executing and living out your ambition...all my young forumers..live long & learn well the lessons from shctaw..a self made man...hats off to you Sir..and all the best wishes that you pay off the shylock banks & enjoy all your indeed, very hard earned, wealth in the years to come:)

Baby

August 3rd, 2007, 06:38 PM

I am not an inspiration to anyone, at least not now. I am still vested with a liability of $5 million owe to 3 different banks.

On paper I make a gain, actual fact is that I am still not making any money unless I sell everything tomorrow.

When come to my hard earn money, every cent is like my army/bullets. I am stingy in certain thing which I feel it is a unecessary luxury or a waste. When I feel that my money is sent out to bring in more money to secure my future, I am all out for it.

I do not own a car, I do not have a country club, I hardly have any cash. How can I be an inspiration.:ohno:

$5m loan exposure may just result in $5m profit over 3 years in a hot market. That's the value of leveraging when use smartly with timing correct.

Buying car is a waste, unless your job must have it. I regret spending this 4 years ago as it's enough for another 10% upfront investment for another property. I clocked only 25,000km for almost 4 years...lost $13k on depreciation + expenses per year. Ironically, I bought the car to play golf only as I walk to work - 5 min to office. So, I'm the worst. You guys teach me the lesson to be thrifty, and I've decided not to renew my golf term membership when it expires 2 years from now.

Veru

August 3rd, 2007, 06:56 PM

$5m loan exposure may just result in $5m profit over 3 years in a hot market. That's the value of leveraging when use smartly with timing correct.

Buying car is a waste, unless your job must have it. I regret spending this 4 years ago as it's enough for another 10% upfront investment for another property. I clocked only 25,000km for almost 4 years...lost $13k on depreciation + expenses per year. Ironically, I bought the car to play golf only as I walk to work - 5 min to office. So, I'm the worst. You guys give teach me the lesson to be thrifty, and I've decided not to renew my golf term membership when it expires 2 years from now.

Baloney Baby--- I started golf when I was 12 years old and many decades later am still addicted to the sheer thrill of the game--tho I never use golf carts--only walk. My philosophical joke on on golf--What is your handicap Sir ? My wife & children ofcourse :nuts:

stingraytan

August 14th, 2007, 06:10 AM

stingraytan

August 14th, 2007, 06:33 AM

:) Published August 14, 2007

Sub-prime mess just a Chicken Little flap

Recent global market tremors are a disturbing commentary on the power of fear

By BEN STEIN

THE job of an economist, among many other duties, is to put things into perspective. So, because I am an economist, among other duties, here is a little perspective on the recent turmoil in the stock and bond markets.

First, when the story of this turbulence is reported, the usual explanation mainly has to do with some new loss in the sub-prime mortgage world - the universe of mortgages and mortgage-backed instruments related to buyers with poor credit histories or none at all.

Here is the first instance in which proportion tells us that something is out of whack: The total mortgage market in the United States is roughly US$10.4 trillion. Of that, a little over 13 per cent, or about US$1.35 trillion, is sub-prime - certainly a large sum. Of this, nearly 14 per cent is delinquent, meaning late in payment or in foreclosure. Of this amount, about 5 per cent is actually in foreclosure, or about US$67 billion. Of this amount, according to my friends in real estate, at least about half will be recovered in foreclosure. So now we are down to losses of about US$33 billion to US$34 billion.

The rate of loss in sub-prime mortgages keeps climbing. In time, perhaps it will double, maybe back to US$67 billion. This is a large sum by absolute standards, and I would sure like to have it in my bank account.

But by the metrics of a large economy, it is nothing. The total wealth of the United States is about US$70 trillion. The value of the stocks listed in the United States is very roughly US$15 trillion to US$20 trillion. The bond market is even larger.

Much more to the point, the fears and terrors about sub-prime mortgages have helped knock off about 6 per cent of the stock market's value in recent weeks. This amounts to about US$1.1 trillion or more than 30 times the losses so far in the sub-prime market. In other words, these sub-prime losses are wildly out of all proportion to the likely damage to the economy from the sub-prime problems.

The disconnect goes even further. The Dow Jones industrial average has been heavily moved by fears about the sub-prime market. But how are most of the Dow 30 affected by sub-prime mortgages in any meaningful way? No Dow company is short of liquidity, and consumer spending is still strong.

Foreign stocks, especially in developing countries, have been hard hit, and this is supposedly connected with a 'repricing of risk', which in turn is connected with sub-prime mortgages. But how are the risks in Thailand or Brazil or Indonesia closely related to problems in a housing tract in Las Vegas? The developing countries are fantastically strong and liquid.

Why would problems at a mortgage company in Long Island have anything to do with them? European stocks have also been hard hit, and this has to do with relatively small amounts of sub-prime in some European banks. On a global scale, the numbers in Germany and France are minuscule for sub-prime exposure. For European markets to fall on sub-prime issues makes no sense.

News last Thursday that a small amount of unpriceable sub-prime mortgages was in a BNP Paribas fund in France sent the markets in Europe and the US sharply lower. Why? The losses in France are at most in the single billions, while the losses in US markets alone were in the hundreds of billions on the BNP news.

Then there is the supposed 'drying up' of credit for private equity deals because of fears of risk. But this is also puzzling. I can't think of a single recent major private equity deal in which the bonds have defaulted.

Major hits

More to the point, suppose that all private equity deals were stalled for a year. Why would this affect the Dow? None of companies in the Dow 30 is having trouble raising cash. And suppose that all private equity deals went away for good.

Taken together, they are not all that big a piece of the US economy. Why should they put the markets of the richest nation in the world, as well as all of the world's other markets, into turmoil? Then let's take a peek at Bear Stearns. This venerable and clever financial house has taken some major hits on sub-prime mortgages lately. That is sad for the stockholders (I am a very small stockholder), and the price of Bear Stearns stock has tumbled.

A little over a week ago, news about Bear Stearns' liquidity issues lowered the market value by more than US$1.2 billion.

That is a big hit to a single company, to be sure, but then came the shocker: that news also helped wipe out hundreds of billions of dollars off the total value of US stocks.

My point is this: I don't know where the bottom is on sub-prime. I don't know how bad the problems are at Bear. Yet I do know that the market reactions are wildly out of proportion to the real problems that have been revealed or even hinted at. Maybe there is some giant thing hiding in the closet that might rationalise the market's fears.

But if it's hidden, how can the market be reacting to it in the first place? More will be revealed, as the saying goes. But recently investors have been selling out of all relation to what we know.

Reassurances in word and deed from Ben Bernanke, chairman of the Federal Reserve, helped calm the markets on Friday.

But recent events are a disturbing commentary on the power of fear.

This economy is extremely strong. Profits are superb. The world economy is exploding with growth. To be sure, terrible problems lurk in the future: a slow-motion dollar crisis, huge Medicare deficits and energy shortages. But for now, the sell-off seems extreme, not to say nutty.

Some smart, brave people will make a fortune buying in these days, and then we'll all wonder what the scare was about. -- NYT

landlubber

August 14th, 2007, 04:38 PM

landlubber

August 14th, 2007, 04:56 PM

With recent news of UOB capping valuations, and then taking allegations back...

Ong beng seng and family buying up whole chunks of costa de sol at $830 psf..

parc condo sold out and flipping taking place in a not so prime area...

Any gurus care to give their opinions and outlook on the current markets??

am still in the mkt to look for 1 more property, and altho targetting prime areas (marina bay, orchard fringe, river valley, tanjong pagar, tanjong rhu, east coast, etc) , current prices have left me EYE BIG BIG and SALIVA DRIP DRIP, but a little too leveraged for me personally, and thus still watching by the side lines...
i'm no guru, just an opinionated wannabe

i was a bit surprised at the UOB valuation cap story. They are big, but not big enough to control the market that way. Plus foreign $$ don't need UOB's money. I think there was some mis-reporting there.

Ong Beng Seng buying up a block of Costa del Sol was a good deal for him. There's so much economies of scale there- buy at block discount, sell individual unit at premium or turn the block into a serviced apartment. OBS is an expert in the industry and has the resources to extract maximum value out of a block purchase.

Parc is a bit of a mystery to me. I think it's because there're all these upgraders sitting on the sidelines watching everything get priced out of their range, and when something came along that was viable they just grabbed. I am also hearing that foreign funds are starting to look at developments outside the core central area in search of better value.

i'm sitting on the sidelines too. if i had to get one property today, it'll be somewhere where there's going to be a lot of government backed development, such as around mrt nodes. I think a lot of it is priced in already though (eg the Rochester). I'm beginning to like harbourfront more and more. i just wished they hadn't built that ugly overhead highway. it really destroys the entire waterfront feel.

Baby

August 14th, 2007, 07:17 PM

Read what Kwek's mind on the property trend.

=============

City Developments H1 earnings quadruple to S$321m
By Daryl Loo, Channel NewsAsia | Posted: 14 August 2007 2046 hrs

SINGAPORE : City Developments (CDL) has reported a first half net profit of $321 million.

This is nearly four times more than a year ago, as property firms continue to benefit from a booming real estate sector.

Sales rose 35% to more than $1.5 billion.

The company is proposing a special interim dividend of 10 cents per share.

CDL's property development arm posted the strongest growth of nearly 200% in the first half of this year, contributing $469 million in revenue.

Hotels remained its biggest contributor with $952 million sales in the period, up a milder 8%.

While CDL expects price growth to slow for luxury properties, other market segments are likely to catch up.

"The high-end segment is slowing down, simply because it has gone in a straight line. I think it has increased more than maybe 100%, from the low in 1996 when the market crashed. As for the mid and low-end, we are still below the peak of 1996 before the crash. So I think there is room for these mid to low-end to catch up," said Kwek Leng Beng, executive chairman of City Developments.

The company is also considering a new strategy of retaining some of its high-end residential properties for lease to take advantage of the demand for rental homes.

Said Kwek: "I have analysed the scenario in Singapore. Literally if not all developers, they build and then they sell off everything. Why? Because this is very capital intensive, and developers require working capital, cash flow, and so on.

"(But) I want to be the pioneer of this - I want to own it. And when I own it, say 15 years down the road, there could be an en bloc sale. I don't have to buy land again. I can just pull down and redevelop."

One likely candidate is its 110-unit Cliveden at Grange project, which the developer is considering retaining two out of five blocks.
CDL said it is also very keen on the hotly contested Beach Road commercial site, for which it has submitted a bid with the Istithmar Group and Elad Properties. - CNA /ls

Baby

August 14th, 2007, 07:34 PM

At least for the rest of this year 2007, IMO :

Luxury high-end at Orchard - has reached it's saturation price of average $3500-$4000psf. Over the best locations and the best units, it can probably still fetch up to $6000psf. Selling at $3500-$4000psf and above is not easy right now. With the many enbloc redevelopments over the area, it's gonna be tougher to get a sell out with this price range in the up coming new launches. Those new up coming launches at Leonie Hill and River valley gonna get harder if they want to sell at over $3500psf.

Luxury high-end at Marina Bay and Sentosa - plenty of upside potential to match current Orchard luxury price. They are still priced around $1800-$2500psf in the subsale, with only few units exceeding $3000psf. The upcoming MBR phase 2 at Marina Bay, and at Sentosa - the Quayside Collection by CDL and the Waterfront site by Ho Bee launching 4Q07 will see the price moving up to match Orchard current price.

Mid and Mass market - upside potential is there for selective areas but don't expect quantum increment seen in the luxury market. This segment is price sensitive for genuine buyers for stay or rental, excluding flippers of course. Some area has already priced at 1997 peak price in recent new launches.

The next round of property hike breaching the current resistance levels into new record prices and new resistance levels will definitely be closer to, and in 2009 and 2010 when both IRs are up and running.

stingraytan

August 15th, 2007, 09:56 AM

The next round of property hike breaching the current resistance levels into new record prices and new resistance levels will definitely be closer to, and in 2009 and 2010 when both IRs are up and running.

To add on a little of my own amatuer opinion, prices beyond 09-10 after IRs are up and running, will be determined partly by how successful the IRs are, the quality of people they employ, and the number of high paying executives that will be employed, directly or indirectly.

Another factor to keep in mind will be how quickly or successfully the gov's plan of increasing the population can be achieved.

There might be a multiplier effect with the increased population, the success of IR's and international conventions/events etc, and at that point in time, current prices may seem a bargain.. But with all crystal ball gazing and forecasts, we never know for sure until its the present... However, the sustainability of current prices til 09-10 should be quite strong..

2cents... :cheers:

arthur

August 17th, 2007, 02:25 AM

Hungry Ghosts may spook property boom

The subprime crisis half a world away — coupled with the Hungry Ghost Festival in Asia — may mean a quieter month for property agents in Singapore.

August — traditionally a slower month because of superstitious house-buyers — will be hit by the double whammy of poor purchasing sentiment that's spilling over from the US because of the subprime saga, said analysts.

Developers are likely to delay launching condo projects as they wait for the jittery stock markets to settle, said Mr Nicholas Mak, Knight Frank's director of consultancy and research.

This was also what happened during the February/March stock market correction, he noted. "The market correction in February did not present any systemic risk, but this time round with the subprime issue popping up now and then, it appears the market is more volatile, and that can make developers more cautious.

"If you look at the number of property advertisements that usually appear mid-week for launches on the weekends, it now appears to be very quiet," he pointed out.

Already, Singapore property mogul Kwek Leng Beng is reportedly seeing some foreign investors deferring their purchases on concerns over the subprime mortgage woes.

This cooling down period comes after a month of stellar private home sales in July.

The latest Urban Redevelopment Authority (URA) figures on the sale of new private homes showed 1,378 units, or almost 20 per cent more units, were sold in July compared to that of a month earlier.

Overall, the median price achieved for a unit in July was $1,609 per square foot (psf), a 22.2 per cent increase from the previous month's $1,317 psf.

The figures, released on Wednesday, are the second update since the URA first started unveiling more comprehensive data last month to inject more transparency to the market.

Most interestingly, it showed that the number of units sold above $4,000 psf soared by more than 356 per cent to a new record of 72 units, compared to just 16 units in June.

"This is a significant milestone in the evolution of Singapore's private residential market given that before June 2007, units that were sold above $4,000 psf were almost non-existent in Singapore," said Mr Mak.

The super-luxurious Scotts Square development alone posted 150 sales, of which 64 were sold at between $4,000 psf and $4,499 psf, with the remaining 86 units sold between $3,500 psf and $3,999 psf.

The Marq On Paterson Hill scored $4,044 psf in June and $4,943 psf in July - the highest median price achieved in the two consecutive months.

Other properties in the $4,000 psf-club includes The Orchard Residences and Cliveden at Grange.

Said Colin Tan, head of research, Chesterton International: "The prices were on the whole better, and the volumes were also better. It's consistent with the trend of the last quarter and it reflects the fact that Singapore is doing quite well selling itself a place to invest."

Overall, private home prices have risen some 13 per cent in the first six months of this year.

"In this current up-cycle, I think there has been more investment buying rather than speculative buying. Because we do not hear of so many stories of people buying properties, and then maybe flipping it within a week," he added.

And while the number of new private homes transactions may slow down this month, analysts don't expect prices to go down as well.

"It will probably show up as lower sales volumes rather than lower prices," said Mr Tan, "The gestation period of property development in general is about two years, so prices will be a little sticky coming down. Developers are not likely to rush to lower prices at the slightest problem."

- TODAY/so

stingraytan

August 17th, 2007, 05:08 AM

Really wished i had the equity and cash now... will be a good time to find bargains in the following few months...

SSPIY

August 17th, 2007, 06:48 AM

Really wished i had the equity and cash now... will be a good time to find bargains in the following few months...

Are the banks tightening credit for everyone or a specific pool of clients?

Maverick713

August 17th, 2007, 08:39 AM

Really wished i had the equity and cash now... will be a good time to find bargains in the following few months...

Ask for a salary or bonus advance? :lol:

stingraytan

August 17th, 2007, 09:19 AM

Ask for a salary or bonus advance? :lol:

:lol:

cannot leh.. self-employed small time business.. buy more toto and 4d??:lol:

stingraytan

August 18th, 2007, 08:06 AM

Weekend, August 18, 2007

MM upbeat as Fed cuts rate

Loh Chee Kong
cheekong@mediacorp.com.sg

AT ABOUT 8pm on Friday, the sub-prime woes gripping the United States and the after shocks bleeding the world's financial markets received a surprise lifeline when the US Federal Reserve slashed its discount rate by 0.5 percentage points to 5.75 per cent.

Less than an hour later, halfway around the globe, Singapore Minister Mentor Lee Kuan Yew had these words of assurance for his Tanjong Pagar residents: Don't worry, the "nervousness" in the financial markets would go away soon.

"Whatever the troubles, they will go away in weeks, if not months. What we are absolutely sure of (about) East Asia is that it is set to grow. Nothing will change the long-term plans and growth of China and India, and the rest of Asia," he said at his constituency's National Day dinner.

Adding that the US and European markets were "beginning to settle down", Mr Lee added: "Just in the last few weeks, trillions of dollars had been wiped out in the stock markets of the world. But it will come back."

Mr Lee said that Singapore's future is secure, at least for the next decade — not least because of the Republic's domestic harmony.

"We have positioned ourselves well. When we say the Pledge, it's not empty words. It's real and it's true. You can see around you: Equal opportunities and shared prosperity," said Mr Lee, who added that the first generation leaders' decision on adopting English as the country's lingua franca has paid off immensely.

But while the "big pieces" are in place, Singapore is not without its problems — namely a shrinking, ageing population that is unable to support the growing economy.

As the country turns to imported labour, this leads to another "huge" problem, that of income disparity, which the Government will tackle by supplementing workers' income and raising the value of Singaporeans' assets by rejuvenating Housing Board estates, said Mr Lee (picture).

"The economic growth is here to stay for the next 10, 15 years or more. Because of globalisation, our less-educated have to compete against the less-educated from China and India. (But) we will solve the problem as long as we have growth."

And to make sure Singapore's growth continues, it's important "to have MPs and Ministers who think long term and work long term". Which is why the search is on for the Republic's fourth generation of leaders, said Mr Lee.

"Before the next elections, the Prime Minister and his team must talent-spot and headhunt for candidates in their 30s and early 40s."

To drive home his point about the drastic changes taking place and their profound effects on the world, Mr Lee turned his attention to an issue half a world away: The melting of the polar ice cap in the Arctic.

"The Russians are claiming a big chunk of the ice cap. The Canadians also ... they say, as the ice melts, the ships will be passing Canadian waters," he said. "One quarter of the world's oil and gas may be under that ice cap. Countries ... around the Arctic will make their claims."

And amid the sea of changes, Singapore "cannot stand still", said Mr Lee. Its people must continue to put up with painful but necessary changes.

He added: "We have to make serious changes and hard decisions. We made the right decision from the beginning."

stingraytan

August 20th, 2007, 10:54 AM

Anybody made a killing today?? STI at 3310 at 430pm...
Sigh...

stingraytan

August 21st, 2007, 05:46 AM

Published August 21, 2007

Is CityDev mulling residential Reit?

By KALPANA RASHIWALA

CITY Developments executive chairman Kwek Leng Beng showed at his property company's latest results briefing why he sees himself as a trend-setter.

Mr Kwek revealed at the group's second-quarter results briefing last week that the group was considering retaining two blocks of apartments of its Cliveden development at Grange Road for rental purposes and long-term investment instead of selling them off in a rush.

The 66-year-old tycoon - who is known to pride himself on not aping the competition's business model - indicated that this could be the start of a new business model for the group's residential business. The idea would be for the group to retain some units in selected high-end residential projects for lease to ride on strong rental demand.

It can then sell these units later at much higher prices - if current trends continue - and who knows, in the longer term, if a collective sale were to materialise, CityDev could then buy out its fellow owners in such condo developments and redevelop these sites into new projects instead of having to go to the market and look for land all the time, as most developers have to.

Or if CityDev doesn't like some of these sites by then, it could also consider selling the apartments it has retained in such condos through a collective sale to other parties.

That seems like a good model. But it does tie up a lot of money. This could put the property giant at a disadvantage relative to its peers, for instance, when making acquisitions.

But Mr Kwek could get around the problem by spinning off these apartments held for investment into a separate vehicle and perhaps listing it, with CityDev still possibly retaining a stake, some market watchers suggest.

Such an entity - holding units in selected residential projects developed by CityDev - could be structured as a real estate investment trust (Reit), business trust or some hybrid security, depending on tax and other considerations.

Retail investors would be keen on investing in such a vehicle. To the average mom-and-pop investor, the prospect of buying an investment home for rental income may seem daunting. It involves a huge outlay, the hassle of finding a tenant, negotiating rentals and lease terms, agreeing and signing a lease, and other potential problems.

The risk would be so much more manageable for such investors if they could have exposure to income from a whole pool of such rental properties by buying any amount of shares/units they are comfortable with in a listed vehicle that owns these apartments, manages them, rents them out and, at the right time, sells them to crystallise capital appreciation.

And CityDev, if it continues to hold a stake in such a listed vehicle, could still eventually get its hands on the land on which these condos stand, possibly by securing at the outset a right-of-first-refusal to buy back the apartments it had earlier sold to the vehicle.

This would facilitate CityDev gaining full control of sites when en bloc sales come up - of course after satisfying Strata Title Board requirements that the transaction is priced on arm's-length basis and done in good faith.

Mr Kwek has been a relative latecomer to the Singapore Reit market but when his CDL Hospitality Trusts was floated on the Singapore Exchange last year, it was a novel instrument in the local market, involving units in Singapore's first hotel Reit stapled to units in a business trust.

Mr Kwek also said in last week's Q2 results briefing that he was not in any hurry to set up a Reit holding some of the group's office blocks, something that has been on the table for quite a while now.

Who knows if, instead of following in the footsteps of others who have floated office Reits here, Mr Kwek might pleasantly surprise investors by offering them an opportunity to invest in Singapore's first residential Reit or some such hybrid vehicle?

Veru

August 23rd, 2007, 11:14 AM

For all you happy happy ınvestors ın Sg, I have spent the last 10 days ın Turkey. For your ınfo the best Bosphorus vıew vıllas go for USD 30-40 mıllıon and prıces ın Istanbul have doubled over the past year. As I have suggested now & then, ıts a bıg bad world out there and Sg ıs an oyster, but not the only one. Also do look back to July 29 (The saıl@Marına Bay # 3) & note my comments on the fınancıal meltdown and the USD surge as a safe haven currency.Thıs baby ıs not over yet my ınnocent young frıends--thıs ıs only the begınnıng of a wave of correctıons-- lets pray that Sg ıs not caught up ın the havoc whıch may come sooner than we expect -- the world wıde property asset bubble has to burst frıends

shctaw

August 23rd, 2007, 11:36 AM

Veru

August 25th, 2007, 06:10 PM

Glad you are back. Happy to find you enjoying life.

Just take a part of money to invest and keep some cash for daily expenses. Even market crash , one should be alright.

Greetings Mr shctaw --- should be an interesting week for global markets. I am in Sg Aug 27-30 at Raffles the Plaza to "eyeball" The Sail 1st hand. Is Baby on holiday?? -- I await your comments as to my July predictions Baby Baby!! My Sg bankers DBS have a pretty penny stuck up in sub-prime & quants -- yes shctaw--even "prudent conservative" Sg bankers get greedy ...sometimes...

ZeeMS

August 25th, 2007, 06:37 PM

Greetings Mr shctaw --- should be an interesting week for global markets. I am in Sg Aug 27-30 at Raffles the Plaza to "eyeball" The Sail 1st hand. Is Baby on holiday?? -- I await your comments as to my July predictions Baby Baby!! My Sg bankers DBS have a pretty penny stuck up in sub-prime & quants -- yes shctaw--even "prudent conservative" Sg bankers get greedy ...sometimes...
Hi Veru

I am new here...but cannot help but seek clarficiation to your post.
Do we have figures (official or otherwise) on the exposures to our local banks?

thanks

Veru

August 26th, 2007, 07:41 AM

Hi Veru

I am new here...but cannot help but seek clarficiation to your post.
Do we have figures (official or otherwise) on the exposures to our local banks?

thanks

Hi ZeeMS--DBS (so far) reported 22% of $850 million investments in debt/loan obligations have exposure to US sub-prime loans. Lets see who else discloses what in due course....

ZeeMS

August 26th, 2007, 05:06 PM

Veru,
many thanks.
best, zeems

Baby

August 26th, 2007, 06:43 PM

Hi ZeeMS--DBS (so far) reported 22% of $850 million investments in debt/loan obligations have exposure to US sub-prime loans. Lets see who else discloses what in due course....

DBS share price dropped last Friday after under declaration discovered. But, I think Monday the share price will recover. No sweat to DBS lah...

ZeeMS

August 27th, 2007, 03:26 AM

Greetings All,

some updates on DBS

historical data....

27/07 - no exposure
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070727:MTFH82594_2007-07-27_05-23-19_SIN282998&type=comktNews&rpc=44

http://www.dbs.com/newsroom/2007/press070807.html

07/08 - exposure $852m

24/08 - exposure $1.6b (additional 722mil)
http://www.iht.com/articles/ap/2007/08/24/business/AS-FIN-COM-DBS-CDO-Exposure.php

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=bankingFinancial&storyID=2007-08-24T120033Z_01_HKG273224_RTRIDST_0_SP_PAGE_012-HKG273224-OISBN.XML

Veru

August 28th, 2007, 09:33 AM

Hi ZeeMS--DBS (so far) reported 22% of $850 million investments in debt/loan obligations have exposure to US sub-prime loans. Lets see who else discloses what in due course....

Just as I suggested my dear ZeeMS...... "DBS(so far)....who else discloses what in due course........." :ohno:

stingraytan

August 31st, 2007, 05:51 AM

Just as I suggested my dear ZeeMS...... "DBS(so far)....who else discloses what in due course........." :ohno:

Guess there's always 2 sides to the coin? only time will tell. :cheers:

Global credit crunch almost over: Mobius
Fund manager says markets may soar to new heights barring unforeseen events

(NEW YORK) The global economy is 'very healthy' and the credit crunch stemming from the United States mortgage losses has 'almost passed', said Mark Mobius, who oversees US$30 billion at Templeton Asset Management Ltd in Singapore.

'We're pretty bullish,' he said during an interview from Hong Kong. 'Markets are probably going to surge ahead to new highs barring any other unforeseen circumstances.' The fund manager said that he has purchased shares of energy companies Sinopec Shanghai Petrochemical Co, PetroChina Co and Petroleo Brasileiro SA during the market rout of the past month. South African shares and those of Chinese companies traded in Hong Kong are among the most attractive in emerging markets worldwide, he said. Dr Mobius added that US shares are 'not very expensive'. The Morgan Stanley Capital International Emerging-Markets Index, a global benchmark, has dropped 9.3 per cent since reaching a record high on July 23, on concern that defaults among US subprime borrowers will spill over to other markets and slow economic growth.

The Federal Reserve earlier this month lowered the interest rate it charges banks and acknowledged for the first time that an extraordinary policy shift is needed to contain the sub-prime mortgage collapse that began roiling the world's financial markets two months ago.

'The Fed has been doing the right thing,' Dr Mobius said. 'The US economy will continue to power along as a result.' The fund manager said that he's 'looking at companies in Egypt and Dubai' and mentioned real-estate stocks in the latter market, without elaborating.

'I can't think of any market where we've been paring down because money continues to flow into the funds,' he said.

His bullishness on stocks is shared by some of the biggest banks. Credit Suisse Group recommended on Aug 21 that investors should raise holdings of stocks worldwide following the sell-off in the past month and on speculation that the Fed won't let a credit-market debacle hurt growth.

Teun Draaisma, the Morgan Stanley strategist who advised trimming holdings in Europe before declines in February and July, raised his recommendation on stocks in the region to 'overweight' from 'neutral', on Aug 13. -- Bloomberg

Baby

August 31st, 2007, 07:15 AM

Uncle Oei is even more pessimistic about this subprime.
He predicted the STI may drop to 2500.
If US Govt can't manage well the crisis over there, STI may drop to 2000.
He predicted a number of foreign funds may not exercise their OTP in the recent property purchases.
I just wonder if the purchase of the Finlayson, Chevron and Hitachi Office towers at Raffles place at record price by foreign funds will go through.

I just hope this stupid crisis created in US will end as soon as possible.
I want to see the property go up like the past few months for the next 5 years !

=======================

本地股市近期随着环球股市坐过山车，七上八下的股市搞得股民进退两难，人人都在寻找一个明确的投资方向。在股市颇有眼光，所触及的公司股价往往直线上扬的黄鸿年告诉本报，股市的大震荡可追究美国次贷(subprime)、基金撤退资金和信贷紧缩的问题，使市场信心受打击，而接下来问题还可能会持续加深。　　　

黄鸿年：股市近期还会大波动

李韵琳 (2007-08-30)

　　“股市金手指”黄鸿年认为，近期的股市还会大幅波动，预料一波会比一波低，海指可能在年底调整到至少2500点，劝股民应加倍谨慎小心。

　　本地股市近期随着环球股市坐过山车，七上八下的股市搞得股民进退两难，人人都在寻找一个明确的投资方向。在股市颇有眼光，所触及的公司股价往往直线上扬的黄鸿年昨天告诉本报，股市的大震荡可追究美国次贷(subprime)、基金撤退资金和信贷紧缩的问题，使市场信心受打击，而接下来问题还可能会持续加深。

　　他认为，这轮调整还未见底，虽然时不时会见股市回弹，但只是昙花一现，股民应该见好就收，手握现金比较有保障。

　　黄鸿年说：“市场的惊慌情绪像传染病一样，尽管新加坡经济的基本面良好，但还是无法对外在因素和环球股市的跌势免疫。这一轮调整还没结束。接下来虽然会有回光反照的时候，但只是昙花一现。我认为，海指至少会调整至2500点，如果美国处理的不好的话，搞不好还可能跌至2000点。”

　　美国人在资产膨胀产生的富裕错觉下一再贷款消费被黄鸿年点为问题的根本。而始于两年多前的这个现象，在日积月累下形成今日的信贷紧缩和债务担保凭证(CDO)问题。股市狂泻则可追究到受影响的对冲和私募基金。它们为了应付问题大量从市场撤退资金。

　　就因为如此，黄鸿年建议那些认为股市猛跌时是进场捡便宜好时机的股民不要轻举妄动。

　　“小股民现在进场就等于在喂对冲和私募基金。喂饱了，它们就会睡觉或随时把你推下去。你可能今天买得比昨天便宜，但相比明天就可能买贵了。以目前的情况来看，抱着现金睡觉会比较好。”

　　他向股民进言：“留得青山在，不怕没柴烧”。

中国经济股市还是有许多隐忧

　　至于他近期的投资，黄鸿年透露，过去几个月主要吸购政府债券。他也认为货币是很稳的投资，并看好人民币值还会继续上扬。

　　谈到人民币，他再次警告，中国经济和股市还是有许多隐忧。

　　“看一看中国的股票，本益比达到50、60倍，即使跌剩一半，还是太贵了。”

　　对于随着股市水涨船高的本地房地产市场，黄鸿年观察到，一年多来热火朝天地的房地产市场近几个星期来似乎已开始静下来，有行无市，并相信接下来还会随着股市的调整进一步后退。

　　他也表示，一些已为新推出的高档公寓项目付了定金的外国基金，可能会因为资金紧缩的问题，而选择放弃执行任购权。

Sailover

August 31st, 2007, 07:45 AM

Guess there's always 2 sides to the coin? only time will tell. :cheers:

Global credit crunch almost over: Mobius
Fund manager says markets may soar to new heights barring unforeseen events

(NEW YORK) The global economy is 'very healthy' and the credit crunch stemming from the United States mortgage losses has 'almost passed', said Mark Mobius, who oversees US$30 billion at Templeton Asset Management Ltd in Singapore.

'We're pretty bullish,' he said during an interview from Hong Kong. 'Markets are probably going to surge ahead to new highs barring any other unforeseen circumstances.' The fund manager said that he has purchased shares of energy companies Sinopec Shanghai Petrochemical Co, PetroChina Co and Petroleo Brasileiro SA during the market rout of the past month. South African shares and those of Chinese companies traded in Hong Kong are among the most attractive in emerging markets worldwide, he said. Dr Mobius added that US shares are 'not very expensive'. The Morgan Stanley Capital International Emerging-Markets Index, a global benchmark, has dropped 9.3 per cent since reaching a record high on July 23, on concern that defaults among US subprime borrowers will spill over to other markets and slow economic growth.

The Federal Reserve earlier this month lowered the interest rate it charges banks and acknowledged for the first time that an extraordinary policy shift is needed to contain the sub-prime mortgage collapse that began roiling the world's financial markets two months ago.

'The Fed has been doing the right thing,' Dr Mobius said. 'The US economy will continue to power along as a result.' The fund manager said that he's 'looking at companies in Egypt and Dubai' and mentioned real-estate stocks in the latter market, without elaborating.

'I can't think of any market where we've been paring down because money continues to flow into the funds,' he said.

His bullishness on stocks is shared by some of the biggest banks. Credit Suisse Group recommended on Aug 21 that investors should raise holdings of stocks worldwide following the sell-off in the past month and on speculation that the Fed won't let a credit-market debacle hurt growth.

Teun Draaisma, the Morgan Stanley strategist who advised trimming holdings in Europe before declines in February and July, raised his recommendation on stocks in the region to 'overweight' from 'neutral', on Aug 13. -- Bloomberg

The fund manager said that he has purchased shares of energy companies Sinopec Shanghai Petrochemical Co, PetroChina Co and Petroleo Brasileiro SA during the market rout of the past month. South African shares and those of Chinese companies traded in Hong Kong are among the most attractive in emerging markets worldwide, he said. Dr Mobius added that US shares are 'not very expensive'

Really? :ohno: :bash:

Baby

August 31st, 2007, 07:56 AM

Chinese Company are traded at PE of 50 - 60 - Is that attractive ?

PreciseDrive

August 31st, 2007, 03:24 PM

Tabassum Zakaria
Reuters
Washington, DC, US
Friday, 31 August 2007

President George W. Bush will outline reforms on Friday intended to help homeowners with subprime mortgages avoid default, a senior U.S. administration official said on Thursday.

"He will also discuss reform efforts to prevent these kinds of problems from arising in the future," the official told Reuters on condition of anonymity.

Financial markets around the world have been in turmoil in recent weeks as defaults have risen on so-called subprime mortgages to less creditworthy borrowers. The Federal Reserve has taken steps to increase liquidity in markets and faces calls for interest-rate cuts to head off a broader credit squeeze that could drag economic growth down.

Bush in a statement scheduled for 11:10 a.m. (1510 GMT) in the White House Rose Garden will discuss the need for Congress to pass Federal Housing Administration reform legislation aimed at giving the agency the flexibility to help subprime mortgage borrowers, the official said.

The risk of a credit squeeze stemming from rising defaults on subprime mortgages has fueled worry that consumers will trim spending at a rate that could tip the economy into recession.

An administration official told Reuters that Bush "will discuss his willingness to work with Congress in a bipartisan way to reform the tax code to help troubled borrowers rework their loans."

Stock prices fell on Thursday on concern that credit market upheaval was spreading, with the Dow Jones industrial average down 50.56 points to close at 13,238.73.

Bush is also expected to direct Treasury Secretary Henry Paulson and Housing Secretary Alphonso Jackson to work together on an initiative to help troubled mortgage holders obtain services and products needed to prevent default, the official said.

He will discuss the need for rigorous enforcement of predatory lending laws and strengthening lending practices, the official said.

PreciseDrive

August 31st, 2007, 04:27 PM

Reuters
Jackson Hole, Wyoming, US
31 August 2007

The Federal Reserve is set to act as needed to limit impacts of financial turmoil on the economy but will not bail out investors who made poor decisions, Fed Chairman Ben Bernanke said on Friday.

"The committee continues to monitor the situation and will act as needed to limit the adverse effects on the broader economy that may arise from the disruptions in financial markets," Bernanke said in a speech to a symposium organized by the Kansas City Federal Reserve.

But the central bank is not ready to shield investors whose actions have resulted in financial losses, he said.

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions," he said.

He also acknowledged that disruptions in markets stemming from a slumping housing market and a sharp rise in delinquencies among subprime loans could have damaging effects on the broader economy. Those distortions would have an impact on the Fed's thinking going forward, he said.

"Developments in financial markets can have broad economic effects felt by many outside the markets, and the Federal Reserve must take those effects into account when determining policy," he said.

Bernanke's comments come as financial markets reel from the effects of declining home prices and revelations of broad exposure to subprime loans. Losses in mortgage markets led to a tightening of credit and tumbling U.S. stock markets in recent weeks.

The Fed chairman said economic data shows the U.S. economy continued to expand moderately into the summer, in spite of sharp declines in housing markets.

PreciseDrive

August 31st, 2007, 04:30 PM

Mike Peacock
Reuters
London
31 August 2007

U.S. President George W. Bush will outline reforms on Friday to help struggling subprime mortgage borrowers, and his central bank chief will deliver a speech which will be pored over for hints of a looming rate cut.

Federal Reserve Chairman Ben Bernanke speaks on "Housing and Monetary Policy" at around 10:00 a.m EDT.

Bush, who will make a statement at the White House an hour later, will announce assistance for homeowners with subprime mortgages to avoid default via changes to the tax code.

"He will also discuss reform efforts to prevent these kinds of problems from arising in the future," a senior U.S. administration official said.

Massive problems with U.S. home loans, stemming from aggressive lending mainly to poor people who have been squeezed as interest rates climbed, have fostered a liquidity crisis around the globe as banks have scrambled to calculate their exposure to the sector.

The risk of a credit squeeze arising from mass mortgage defaults has also raised the prospect of U.S. consumers trimming spending at a rate that could tip the world's largest economy into recession.

Investors have been pinning their hopes on an interest rate cut by the Fed, at its next meeting on September 18, to shore up the U.S. economy and stop the sickness spreading.

Bernanke reiterated on Wednesday the Fed was "prepared to act as needed" to ensure credit market problems do not adversely affect the economy, fuelling speculation the central bank will lower its benchmark federal funds rate from 5.25 percent.

But experts have said the Fed is in no rush to act as it wants to disabuse investors of the idea that it is there to bail out their poor decisions.

European shares rose as investor hopes mounted for dual action from the Fed and the U.S. government. U.S. stock futures pointed to a leap when Wall Street opens.

"It's comforting to investors that Bush and the administration are recognizing that there's a problem, but I still think the subprime mortgage problem is just going to get worse," said Benjamin Halliburton, managing director at Tradition Capital Management in Summit, New Jersey.

"I do think the market is going to have another panic down if Bernanke doesn't signal he'll cut rates in September."

Bush will press for legislation giving state agency the Federal Housing Administration flexibility to help subprime borrowers, including the power to guarantee loans for people at least 90 days behind in mortgage payments to help them avoid foreclosure, the Wall Street Journal reported.

Good News, Bad News

Japanese Finance Minister Fukushiro Nukaga said he had been told by U.S. Treasury Secretary Henry Paulson global economic fundamentals were strong, but that it may take some time for adjustments in markets to take place.

International Monetary Fund First Deputy Managing Director John Lipsky said market turmoil would dent but not derail world growth, but that it was too soon to declare the troubles over.

"Central bank action so far has been appropriate but market turbulence has not fully receded," Lipsky told Reuters on the sidelines of a gathering of central bankers and economists in Jackson Hole, Wyoming.

It is there that Bernanke will speak later.

There were plenty of signs the crisis was far from over.

Rates for three-month sterling hit their highest in 8-1/2 years and rates for other currencies also surged, reflecting persistently strong demand for cash from financial institutions.

Australia's central bank struggled to ease upward pressure on some market interest rates as renewed trouble in the global commercial paper market made institutions reluctant to lend.

Deutsche Bank has shut down its London proprietary credit trading desk and is laying off some of the team, a source familiar with the matter said.

Earlier this month a source close to the bank said Deutsche was set to ditch its credit relative-value trading strategy -- used by the London desk -- after losses of about $135 million.

Deutsche Bank declined to comment. It has said nothing so far about any losses stemming from credit market tremors.

Britain's Barclays Plc, meanwhile, turned to the Bank of England as the lender of last resort for the second time this month after at technical breakdown in the British clearing system, a source close to the matter said.

Barclays declined to confirm it had used the borrowing facility but said in a statement it was "flush with liquidity."

kopiluver

August 31st, 2007, 04:42 PM

PreciseDrive

August 31st, 2007, 04:59 PM

Erm, PreciseDrive

Seems like you are either a stock trader or in equities market... with an eye on Reuters...

So what's the conclusion le??? Still up or on the way down?

Can open champange yet or not? Soon? Interest rates down by mid Sept anyone?

LOL!:banana:

I am neither since my investments are minute. But I do watch the equities market every minute as if I am one. You never know, there might be opportunity for me to be one. :)

In another few minutes' time, we will know if B&B twin assaults can stabilise the market. Judging from Dows' response, I think there should be some good news from his annoucement later.

The US economy is still strong. This sub-prime mortgage crisis is a bit overblown. They need to contain it so that it does not spiral into a recession.

Let's wait for his announcement.

kopiluver

September 1st, 2007, 04:02 AM

kopiluver

September 1st, 2007, 04:09 AM

Any thread here that organises meetups?

Any early birds want to meetup for breakfast at 730am Wed at Market St cafe?

PreciseDrive

September 1st, 2007, 04:20 PM

U didnt stay invested with your profits from SB?

Care to hint where u gone into? Wat advice have u got to newbie with about $400K-500K liquidity?

Eg. Buy 2rm Kerrisdale @$800K with 60% loan for rental income?

I stay invested.
I sold 3, kept 1 and bought another 3 recently.

I am a rookie myself, so I don't think I have good advices .....

I think you can do quite a bit with $400-500k. Going for rental gain is a safer option (than pure capital gain) and Kerrisdale is a good choice in the Central area. Otherwise, you can look at ECs (if not the slightly-more-expensive suburb condos) that are near MRT. Perhaps you can look at those that are closer to 10 years.

PreciseDrive

September 1st, 2007, 04:27 PM

The President and Fed Chairman Both Take Steps to Reassure Wall Street
ABC News
31 August 2007

http://a.abcnews.com/images/Politics/bernanke_bush_070831_ms.jpg
Federal Reserve Chairman Ben Bernanke and President Bush speak out about the housing crisis to calm Wall Street. (ABCNEWS)

With home prices falling for the first time in decades and mortgage rates rising faster than thousands, maybe millions, of homeowners can afford, President Bush and the chairman of the Federal Reserve launched a double-barreled action today to calm nerves.

"It was extraordinary to see both the chairman of the Fed and the president to talk about housing today," John Silvia, chief economist at Wachovia, told ABC News' John Berman.

In the next two years, about 2 million homeowners will see their adjustable rate mortgages reset to higher, more expensive levels. One study shows that those higher monthly payments will force more than 1 million people out of their homes by 2012.

Today the president announced a new program that would allow an estimated 80,000 homeowners to refinance into a federally insured program with lower rates.

"This means that many families who are struggling now will be able to refinance their loans, meet their monthly payments and keep their homes," Bush said.

His new plan offers relief for only a small fraction of those in trouble, but it is more about a message of reassurance, with consumer confidence shaky and investors jittery that housing problems will drag down the rest of the economy.

Analysts warn that a more universal bailout would encourage the kind of reckless loans that created the crisis.

"If you were to pay everyone's gambling debts in Las Vegas, then everyone can gamble without limits," said Christopher Cagan of the First American Corp.

That was the message from Federal Reserve Chairman Ben Bernanke as well, as Wall Street hung on the words of his speech at a closed-door meeting in Jackson Hole, Wyo.

Some have been calling for Bernanke to step in fast and cut interest rates to boost the economy — much as former Fed chief Alan Greenspan did again and again during his tenure.

Some people in the marketplace were anticipating something like a "Greenspan rescue," Silvia said.

Instead Bernanke tried to be restrained and reassuring: "It is not the responsibility of the Federal Reserve — nor would it be appropriate — to protect lenders and investors from the consequences of their financial decisions," he said in the prepared speech.

For Silvia that means: "It's not the Fed's job to make everybody whole."

However, Bernanke made it clear the Fed would step in if the economy as a whole begins to falter.

"The Federal Reserve stands ready to take additional actions as needed to provide liquidity and promote the orderly functioning of the markets," Bernanke said.

Investors took Bernanke's statement as a hint, a strong hint, that the Fed would cut rates at the next meeting Sept. 18, but not before or in a rushed or panicked fashion. The market liked his statement, with the Dow Jones industrial average closing up more than 150 points.

kopiluver

September 8th, 2007, 11:52 AM

The President and Fed Chairman Both Take Steps to Reassure Wall Street
ABC News
31 August 2007

Federal Reserve Chairman Ben Bernanke and President Bush speak out about the housing crisis to calm Wall Street. (ABCNEWS)

"This means that many families who are struggling now will be able to refinance their loans, meet their monthly payments and keep their homes," Bush said.

His new plan offers relief for only a small fraction of those in trouble, but it is more about a message of reassurance, with consumer confidence shaky and investors jittery that housing problems will drag down the rest of the economy.

Analysts warn that a more universal bailout would encourage the kind of reckless loans that created the crisis.

"If you were to pay everyone's gambling debts in Las Vegas, then everyone can gamble without limits," said Christopher Cagan of the First American Corp.

That was the message from Federal Reserve Chairman Ben Bernanke as well, as Wall Street hung on the words of his speech at a closed-door meeting in Jackson Hole, Wyo.

Some have been calling for Bernanke to step in fast and cut interest rates to boost the economy — much as former Fed chief Alan Greenspan did again and again during his tenure.

Some people in the marketplace were anticipating something like a "Greenspan rescue," Silvia said.

Instead Bernanke tried to be restrained and reassuring: "It is not the responsibility of the Federal Reserve — nor would it be appropriate — to protect lenders and investors from the consequences of their financial decisions," he said in the prepared speech.

For Silvia that means: "It's not the Fed's job to make everybody whole."

However, Bernanke made it clear the Fed would step in if the economy as a whole begins to falter.

"The Federal Reserve stands ready to take additional actions as needed to provide liquidity and promote the orderly functioning of the markets," Bernanke said.

Investors took Bernanke's statement as a hint, a strong hint, that the Fed would cut rates at the next meeting Sept. 18, but not before or in a rushed or panicked fashion. The market liked his statement, with the Dow Jones industrial average closing up more than 150 points.

Am I having postage stamps over my eyes or is the above statements a double edge sword, bcos I read that ONLY a few will be rescued (80,000/X,000,000). Where's the STRONG hint?

Although I hope the majority is right & interest rate is lowered, I don't seem to get the hint that it will... just a lot of hot air to calm the panic that will occur if nothing is done...

By converting ARMs to a FED lower interest one is similar to refinancing with another bank and will not see the housing market flooded with an additional 80,000 FORCED SALE homes... nothing more, nothing less!

shctaw

September 12th, 2007, 04:50 AM

Singapore's Far East to pay record price for suburban condominium site - report

SINGAPORE (Thomson Financial) - Privately held property developer Far East Organization has set a record price for a suburban residential condominium site in the northern Singapore town of Ang Mo Kio, the Business Times reported Wednesday.

Far East submitted the top bid of 202.9 million Singapore dollars for the 0.6-hectare mass-market condominium site auctioned by the government, the equivalent of a record price of 601.3 dollars per square foot of potential floor space, the newspaper said.

Analysts told the newspaper that the break-even cost for the project would be 900-1,000 dollars per square foot, which means floor space will have to be sold for 1,100-1,200 dollars per square foot.

proper-T

September 12th, 2007, 04:55 AM

More detailed report

Business Times - 12 Sep 2007

Ang Mo Kio condo site sets record
Far East's $202.9m winning bid means suburban project may eventually launch at over $1,100 psf
By UMA SHANKARI
(SINGAPORE) A plum condominium site in the heart of Ang Mo Kio has set a new record for suburban land prices, fetching some $601 per square foot per plot ratio (psf ppr).
And when the project is eventually launched, it could set a record for private home prices outside the central areas, analysts said.
Yesterday, HDB said that Far East Organization put in the top bid for the 0.6-ha mass market condo site at Ang Mo Kio Avenue 8. The developer beat 13 other bidders with its bullish offer of $202.9 million - which works out to $601 psf ppr .
'The price is probably the highest paid for a suburban site in recent years,' said Donald Han, managing director of property firm Cushman & Wakefield.
Analysts said that Far East's bid for the 99-year leasehold site beat market predictions that the top bid would be around $500 psf ppr.
Far East's break-even cost for the site is now estimated to be in the region of $900-$1,000 psf, which means that units in the project could eventually be launched at $1,100-$1,200 psf - a record for private home prices in the suburbs.
'If Far East can achieve prices of around $1,200 psf for the project, then yes, it will be a record for the suburban areas,' said Ku Swee Yong, Savills Singapore's director of marketing and business development.
By comparison, units in other projects in the vicinity - albeit in less attractive locations - are mostly going for around $400-$600 psf.
Far East's bid was 11.8 per cent higher than the next highest bid of $538 psf ppr put in by Chip Eng Seng.
The bid was 68.9 per cent higher than the lowest bid of $356 psf ppr bid jointly put in by Wing Tai Holdings and United Engineers.
Far East also beat out other big names such as CapitaLand, Hong Leong Group and Frasers Centrepoint.
Experts said that the high prices and large number of bids signalled that developers had confidence in the strengthening suburban residential market - notwithstanding the US sub-prime mortgage fears that rattled stock markets here.
The plot also drew strong interest due to its good location. It is situated right next to Ang Mo Kio MRT station, and is just 15 minutes away from Orchard by train.
'With an increase of 4.2 per cent in overall HDB resale prices in the past six months, more HDB households would be poised to upgrade to this conveniently located private development,' said Li Hiaw Ho, executive director at CB Richard Ellis' research unit.
Units in the project could be sought-after by HDB upgraders in the Bishan and Toa Payoh estates - where HDB resale prices command a premium - as well as Ang Mo Kio itself, Mr Li said.
In addition, the project may also prove to be attractive to private homeowners in Serangoon and the Thomson/Upper Thomson Road areas, he added.
The site, which was on the government's reserve list, was launched in July after an unnamed developer bid $102 million, or $302 psf ppr area for it.

Baby

September 12th, 2007, 05:02 AM

Analysts told the newspaper that the break-even cost for the project would be 900-1,000 dollars per square foot, which means floor space will have to be sold for 1,100-1,200 dollars per square foot.

How could FEO looking to gain $200psf after taking the risks to bid high, borrow fund (interests) to develop property ? :lol:
The analysts are NUTS !!!

Think about how Ng TF becomes the richest in Singapore by the way he sell properties.
He will sell at a start of at least $1500-1600psf when launch 1-2 years later.
He will keep, reserve, and sell batch by batch at increasing over market price from launch until TOP.

If Ang Mo Kio fetches $1500psf onwards, then Marina Bay worst units should be at least $3000psf onwards.

cnud

September 12th, 2007, 07:26 AM

From the way things are going, it may mean buyers like myself who are still comtemplating to jump in will have even a tougher time getting in since prices are moving beyond my means... :rant:

Baby

September 12th, 2007, 07:46 AM

Mr Kwek in the Forbes Global CEO news...Property is still 19% lower than 1996 Peak.

For those who could not read Chinese, I am translating the key points as follow :

The current US subprimes issue although has affected buyer's sentiment, but he believe this is the best opportunity to pick up property in Singapore before the rally comes again when buyer will need to chase after the ever rising price again.

Singapore property especially the mid market is still 19% lower than the 1996 peak.

Singapore high end luxury market had benefited the most from the property rise over the last 2 years. Although this segment has seen price risen by 70%-100% from the lowest peak, but this was after 10 years of low in Singapore. In fact, if you take into conservatively 1% of inflation and 6% of interest, the current price should average $3600 psf. Current price average at $4000psf, means in reality we had only increased by 10%.

With Singapore transforming into a vibrant global city, plus the up coming excitement of Singapore with F1s, IRs, etc in the pipelines, Singapore will be the best lifestyle city for those looking towards "Work, Live, Play". It had already become a trend for many international investors to be attracted to buy luxury high end residential as well as offices here.

He had a lunch last Monday with some high profile foreign clients and investors. He found them most interested in Singapore, and keep asking him where to buy. They had done their home work indeed and knew all of Singapore's major upcoming plan and events.

He was very excited with winning the Beach Road white site, although investement will be huge.

Although a lots of developers are rushing into India and China market, he still prefers to be heavily invested in Singapore.

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郭令明：房价和96年高峰比较尚有19%上涨空间

郭书真李韵琳 (2007-09-12)

　　我国房地产市场价格距离1996年高峰期还有19％的上涨空间，而目前出现房屋次贷和贷款紧缩危机，正是进场捡便宜的好时机。

　　受邀为“福布斯环球总裁大会”演讲的城市发展执行主席郭令明昨天这样说。他表示，在我国转型为环球都会的前提下，他看好本地房地产市场价格持续走高，并坚信危机中处处见投资商机。

　　他说：“我最喜欢在市场陷入低潮时进场‘钓鱼’（bottom fishing）。我并不担心美国房屋次贷问题会对本地房地产市场有着任何正面冲击，但它多少还是影响了本地投资者的心理。”

　　市场近期的纷扰使一些投资者担心本地房地产价格在过去两年里是否涨得太快。对此，郭令明说：“问题出在人们对本地房地产的历史背景并不是很了解，只看到价格在两年内涨了70％，甚至是100％。然而，他们并没有考虑到在这次的上涨周期之前，本地房地产低迷了将近10年。如果把通货膨胀和利率考虑在内，新加坡私人房地产的价格坐标应该在每平方英尺3600元左右，而目前市场价格约4000元，只高了10％左右，还算合理。此外，新加坡在管制方面也相当严格，只要价格飙得太高，当局就会小心监控。”

　　至于美国房屋次贷问题是否对本地发展商有任何影响，他表示，新加坡的金融管理机制健全，本地银行目前在贷款时虽然比过去较为谨慎，但发展商在贷款方面并没有碰钉子。　郭令明也指出，今年以来享受最大增长的为高档私人住宅以及优等办公楼，外国人到新加坡投资这类高档高素质房地产眼下已成为一种时髦。

　　他也在会上分享上个星期和一批第一次到访新加坡的外国发展商和生意人聚餐的对话。

　　“虽然只是在我国小住四五天，但他们对本地的房地产市场有着浓厚的兴趣，频向我咨询在哪里可以买到好投资价值的公寓和办公楼。”

　　郭令明说，这些商人来新之前肯定做了功课，知道新加坡正在兴建包括赌场的综合度假胜地，以及举行一级方程式大赛等，正迈向成为一个环球都会。

　　“虽然外界都说新加坡很沉闷，但相信有了这些新发展，我国将成为居住、工作和消闲的理想地方。在这样的大环境下，工业、零售、商业、酒店和住宅房地产都将非常抢手。”

　　对于由城市发展、迪拜政府旗下投资公司Istithmar及美国的Elad集团组成的财团，前天以近16亿8889万的标价和“绿色环保”设计，成功标得美芝路大型综合商业地段，郭令明在会上难掩兴奋之情，表示虽然这次必须投入大笔资金发展这个项目，但有信心能够获得可观的回报。

　　他还打趣地说：“虽然目前大家都在谈论进军中国和印度市场，但我的选择还是新加坡。不过，希望你们（中国和印度）还会继续把我视为有兴趣的投资商。”

kopiluver

September 13th, 2007, 04:38 AM

Can some1 go do a comparison of various projects (not on the enbloc bandwagon) and verify that property is indeed still 19% below last peak?

I beg to differ.

Maybe compare Aspen Hts, Gallop Gables, Jervois Lodge avg psf? I don't have info for 1996 but I believe we have breach those prices long ago!

shctaw

September 13th, 2007, 04:41 AM

How could FEO looking to gain $200psf after taking the risks to bid high, borrow fund (interests) to develop property ? :lol:
The analysts are NUTS !!!

Think about how Ng TF becomes the richest in Singapore by the way he sell properties.
He will sell at a start of at least $1500-1600psf when launch 1-2 years later.
He will keep, reserve, and sell batch by batch at increasing over market price from launch until TOP.

If Ang Mo Kio fetches $1500psf onwards, then Marina Bay worst units should be at least $3000psf onwards.

Every bull run need a time out. That happen in the Ghost Month which have just pass.

The bull have enough rest liao. Chiong aaaah.:lol:

From the way things are going, it may mean buyers like myself who are still comtemplating to jump in will have even a tougher time getting in since prices are moving beyond my means... :rant:

Do not wait too long. If the bull run last another 2-3 years, it meant you will have to wait more than 3 years to buy when the price correct. Even the corrected price may not be as low as today price. Always keep that as a point................

Example a home you are eyeing on now cost $1000 psf, and you decide to wait. It hit $1800 by 2010 and price start to drop as market crash 30%..... It may only hit a low of $1200-$1300 which is still higher than the price if you buy now.

kopiluver

September 13th, 2007, 07:27 AM

Every bull run need a time out. That happen in the Ghost Month which have just pass.

The bull have enough rest liao. Chiong aaaah.:lol:

Do not wait too long. If the bull run last another 2-3 years, it meant you will have to wait more than 3 years to buy when the price correct. Even the corrected price may not be as low as today price. Always keep that as a point................

Example a home you are eyeing on now cost $1000 psf, and you decide to wait. It hit $1800 by 2010 and price start to drop as market crash 30%..... It may only hit a low of $1200-$1300 which is still higher than the price if you buy now.

Nice example... better if backed by actual caveats of specific units / projects to better illustrate to the uninitiated!

Baby

September 13th, 2007, 05:20 PM

Just wanted to get some feedback and opinion on what you guys as guru investors think on when is the best time to hold and sell in the current bull run.

My thoughts :

As Kwek LB said, Singapore property just came out from the bottom that last for a decades. The bull run just started in 2005 although 2004 has 3 quarters of small growth. This is just close to 3rd year of bull run for the property market, and there is no way it will stop and fall into a bear now.

Singapore is transforming in a huge way including IRs, F1, new downtown financial centres, bio-medical, bio-tech, petrochemical.

IMO, the price will appreciate at least till 2011, which is 7 years. It may bull run furthur, but IMO after the two IRs are in operation there is no new huge X or WOH factor catalysts to look forward down the road.

If I have property investments, I will hold on till at least 2010-2011. I may start unloading despite prices may continue rise. It's hard to catch when is the peak, and thus the maximum gain you can achieve. It's better to sell when everybody is bullish, and you have attained your target or even stretch target price and timing. Let the buyers have the good feel he still have potential uptrend as well, win-win situation, or else who will buy from you when there is no more upside gain. Furthurmore at a higher price, the buyer is taking a higher risks.

I will keep my capital gain and save them for future investment when the next up cycle again.

For instance, the new Marina South high end residential living that URA plans to develop over the next 20-30 years. IMO I don't believe the current bull run will last for 10-15 years. So if I am interested in this area, I will sell all my property before the bear comes. I will get into the market to buy the Marina South at the low when they are up 20 years from now.

Does it make sense ?

cnud

September 13th, 2007, 05:25 PM

Agree. But the property market damn quiet last month...

Baby

September 13th, 2007, 05:36 PM

I think it's sentiment issue temporary, but mega acquisition is still going on like the recent Chevron tower sale, and a number of high bidding in government land sales.

PreciseDrive

September 13th, 2007, 05:54 PM

I think it's sentiment issue temporary, but mega acquisition is still going on like the recent Chevron tower sale, and a number of high bidding in government land sales.

For me, now till end October is the best time to accumulate for another 9-12 months.

Sailorman

September 14th, 2007, 02:26 AM

Baby

September 14th, 2007, 03:27 AM

You could be right - forget about the Marina South living - that's for the next younger generation who are probably still in their primary or pre-school.

For our generation, let's enjoy Marina Bay, Orchard, and Sentosa will do.

Just like the previous generation who had enjoyed Orchard, Raffles Place, and Bukit Timah. :lol:

Baby

September 14th, 2007, 06:20 PM

SINGAPORE, Sept 14 (Reuters) - Singapore's housing market, which has seen prices skyrocket amid frenzied buying, is heading for a correction, as analysts predict a building boom could flood the city-state with new homes by 2009.

Private home prices, which have surged to decade highs in the past 40 months, are holding for now, but analysts say the market is increasingly vulnerable to a sudden downturn in sentiment.

Global property investor LaSalle Investment Management, which has $6 billion of real estate assets in Asia, says Singapore residential property is "fully priced" and will consolidate before appreciating any further.

"By global standards, Singapore luxury apartments are very expensive. At some point, affordability and common sense have to come in," said Jack Chandler, LaSalle Investment Asia-Pacific Chief Executive Officer.

Property developers and agents say fewer deals were struck last month, slowing a buying frenzy that saw people queue overnight for some projects and that pushed Singapore real estate price gains past those of regional rivals such as Hong Kong.

"A correction is going to take place. The question is: how severe?" said Winston Liew, analyst at OCBC Investment Research.

Singapore luxury homes fetched an average $16,743 per square metre (psm) in June, up 52 percent from a year ago, against Hong Kong's 13 percent rise in capital values to $18,286 psm.

Those who bought property as a sure-fire investment are fretting.

"I'm nervous because I don't expect prices to rise anytime soon. The signals aren't good," said Charles Wong, who paid S$1.1 million ($728,000) for a one-bedroom downtown apartment in April.

EXCESS SUPPLY

Housing supply has been tight as developers tore down old developments to replace them with newer properties, pushing thousands of displaced homeowners back to the market.

According to Jones Lang LaSalle, some 3,876 private apartments will be demolished this year -- more than the 3,295 new homes expected to come on to the market.

These "en bloc" deals -- where entire housing estates are knocked down -- have slowed since the government tightened rules on them. Collective home sales totaled S$11 billion in the first seven months this year but dropped to S$783 million in August.

Property market sentiment has been supported by Singapore's long-term goal to boost the island's population to 6.5 million from 4.5 million, but analysts forecast a glut of new homes from end-2008.

"In terms of actual occupants, there will be excess supply by 2009," said Jones Lang LaSalle Head of Research Chua Yang Liang.

He estimates there will be 11,975 new private apartments available in 2009 -- nearly four times the number expected this year and double the anticipated amount in 2008.

CAR GARAGES IN THE SKY

At least four out of five Singaporeans live in state-subsidised high-rise flats, leaving the private home market dependent on upper-income residents and foreigners.

Investment firm Emirates Tarian Capital is betting these foreign investors, who comprise nearly half the buyers in most projects, will focus increasingly on high-end homes.

"Demand is going to be selective and for branded, quality projects where the quantity is limited," said Kunalan Sivapuniam, managing partner of the firm, which is investing in two high-rises including one 30-storey block equipped with individual lifts to bring owners' cars up to each apartment.

Developers, who usually sell their projects in stages, have held off launching their units for sale in recent weeks.

"If we feel the market is slowing, we're not going to push the project only to have buyers back out later," Cheng Wai Keung, chairman of luxury home builder Wing Tai Holdings

said.

CRUNCH TIME

Analysts say a global credit crunch could constrain Singapore property firms' ability to offer liberal repayment schemes that allow buyers to make a 10-20 percent deposit and delay the bulk of payment until the property nears completion.

These "deferred payment" plans, introduced after a property slump in 2001, have been key to driving market growth, with up to 90 percent of buyers in some projects opting for them.

In July, the central bank warned that delayed payments plans posed "additional risks" to developers and their banks because of the possibility of default. Those risks have only grown with the U.S. mortgage crisis.

"If the cost of capital rises, smaller developers will find it harder to offer deferred payment schemes," said an analyst who declined to be named.

Singapore's biggest developer CapitaLand said it would continue to offer such schemes "where appropriate."

CapitaLand, City Developments and Keppel Land

have posted strong second-quarter profits, driven by strong contributions from their Singapore businesses.

They should, however, be largely protected against a fall in housing prices as most have diversified into office property and housing developments outside Singapore. CapitaLand, for example, earns up to 80 percent of its profit overseas.

"Major developers have lower gearing, sufficient cash or unutilised credit lines to prevent a squeeze," wrote Deutsche Bank strategist Gregory Lui in a recent report.