Looks like Singapore's hit another Number Wan. It's the hottest property market in the world (after adjustment for inflation), edging out Shanghai and Bulgaria for top spot.
Will be posting regular Singapore Property News here. (as well as some half-baked economic theories and predictions by the infamous AB)
Making this my full time job for the near forseeable future. (Working like a dog your entire life won't get you anywhere near the financial gains of a well planned and well timed property sale.)
So let's properly chat property.
(All news articles are reproduced from, and remain the property of, The Business Times, The Straits Times, and ChannelNewsAsia.)
Dec 24, 2007
ReplyDeleteS'pore residential market is world's hottest this year
By Nicholas Fang
SINGAPORE'S booming housing market is the world's hottest this year, with local home prices recording the fastest increase.
Residential property prices in the Republic surged 24.3 per cent, after adjustments for inflation, ahead of other bullish markets such as Shanghai in China and Bulgaria, said property investment research house Global Property Guide.
In a report published online, the firm said Singapore's strong performance, like those of Japan and South Korea, was due to robust economic growth.
The survey was compiled using the latest official data from 42 countries, though other statistics were used for a few markets, such as Japan and the Philippines, where such figures were not available.
The latest Urban Redevelopment Authority (URA) numbers used in the survey show that Singapore home prices registered a 27.6 per cent annual jump at the end of September, significantly higher than the 7.6 per cent posted a year ago.
This nominal, non-inflation adjusted figure was below the 30.6 per cent recorded by Bulgaria in September and the 27.9 per cent recorded by Shanghai in October.
But in real terms, after adjustments for low inflation of only 2.66 per cent, the Republic leapfrogged these two markets to reach the top spot, said the report.
Singapore's strong showing underscored a more general recovery in Asia, where several markets gained momentum in the first three quarters of the year.
Global Property said this reflected, to some extent, continued recovery from the 1997 Asian financial crisis.
In contrast, the United States housing market crashed due to the sub-prime mortgage crisis, while high interest rates were behind the slowdown in European house prices.
'In Europe, most countries registered unimpressive year-on-year house price changes in 2007, aside from Norway and Estonia,' the report said.
Looking to the year ahead, Global Property said property prices in much of Asia are still undervalued compared with pre-Asian crisis levels, despite strong increases this year.
It expects potential improvement in rentals in Singapore.
'We believe gross rental yields are now too low, at 2 to 3 per cent.
'Nevertheless, Singapore is attracting and admitting more foreign-born workers - which is positive for prices,' it said.
Elsewhere in the region, Global Property also recommended Cambodia, Thailand, Japan, Australia and New Zealand to property investors.
It, however, cautioned against investing in Europe, apart from a handful of Eastern European states, because of high valuations after a long period of price appreciation.
In the Middle East, it found Egypt attractive for its high rental yields and low taxes, but warned of a possible oversupply in Dubai as more properties come on stream over the next two years.
STRONG GAINS
While Singapore ranks behind Bulgaria and Shanghai in nominal house price growth, the Republic is the world's best performer in real terms, given its low inflation rate of only 2.66 per cent, says Global Property Guide.
We need more news like this. Oh, please let the prices continue to rise rapidly.
ReplyDeleteyessssss preciousssssss
ReplyDeleteumm... this is good news for us houseowners right? umm... I don't have any office or private properties... so I guess... duh!
ReplyDeleteDec 18, 2007
ReplyDeleteNo takers for many collective sale sites as market cools: Quiet end to record year where $12.5b worth of estates were sold en bloc
By Joyce Teo, Property Correspondent
MOST collective sale sites put up for tender in recent weeks have closed without any bids.
About 40 estates have been launched for sale since October, but just eight deals were sealed between October and last month, said property firm CB Richard Ellis (CBRE).
'The end of the year has come early,' said CBRE executive director Jeremy Lake.
This market cooling comes after a record of about $12.5 billion of collective sales was notched up this year.
That was more than 50 per cent up on last year's $8.2 billion, CBRE said yesterday.
But developers have become more cautious about buying new sites, amid slowing home sales in Singapore and worries over the United States sub-prime mortgage crisis, property analysts say.
While there is no shortage of home owners keen to go en bloc for the sort of record prices seen for most of this year, the number of sites that have successfully been sold has dropped off significantly in recent weeks - coinciding with slower private home sales.
Figures released yesterday by the Urban Redevelopment Authority showed that 611 new units were sold last month, just a tad more than the 590 new units in October.
That compares with a much higher 1,731 units sold in August, for instance.
Said CBRE Research executive director Li Hiaw Ho: 'Clearly, buyers have become more cautious in view of the volatility in global stock markets resulting from the sub-prime problems in the US, the smaller number of new launches...and tightened en bloc sales rules.'
A new set of collective sale rules kicked in on Oct 4.
In the weeks before that, a wave of potential sellers rushed to go en bloc to avoid the more time-consuming rules. But even some who managed to launch sales under the old rules have not succeeded in closing deals.
Big sites such as Spanish Village in Farrer Road, Villa delle Rose off Holland Road and Elizabeth Towers in Mount Elizabeth all had no takers at the close of their tenders recently. Their indicative prices were $878 million, $700 million and $673 million respectively.
The tender for former Housing and Urban Development Company estate Chancery Court on Dunearn Road also closed earlier this month without any bids. It had an indicative price of $468 million.
The freehold Royalville off Sixth Avenue - with a guidance price of up to $350 million - also failed to attract bidders. Others with unsuccessful tenders include Dunearn Gardens, Cavenagh Gardens, The Village, Amber Glades, Grange Heights and Thomson View Condominium.
'There are developers who still want to buy but the problem is that some owners are expecting obscene, sky- high prices,' said an industry observer.
'The lull may continue for a while into the first quarter,' said Credo Real Estate managing director Karamjit Singh.
He said developers have already acquired quite a lot of sites. 'They don't need to take extra risks by buying at today's level unless they believe that there is further upside at current levels.'
Knight Frank's managing director Tan Tiong Cheng said: 'Singapore definitely looks very positive... But this external sub-prime problem will affect local and foreign buying so everyone will exercise caution.'
'Long-term fundamentals still look good... Buying interest should return from mid-January when people return from their holidays,' said Mr Ku Swee Yong of Savills Singapore.
Others, such as Mr Tan and Mr Lake, believe activity will pick up after Chinese New Year in February.
Still good news for HDB flat owners (unless you are looking to upgrade). There is a trickle down effect, not to mention some places HDB prices are getting very hot because of location etc.
ReplyDeleteThe only sad news out of all this is The Library@Orchard is no more...
ya man. That just took away another reason to go to Orchard for me.
ReplyDeleteOne of my favourite libraries, small, cozy yet with an excellent selection.
ReplyDeleteNov 21, 2007
ReplyDeleteEn bloc millionaires to drive market: If just two-thirds buy homes, they may spend $6b: Savills
By ARTHUR SIM
(SINGAPORE) Around 5,700 homes were sold through collective sales in the first half of this year and the home owners who will have to look for replacement homes are expected to drive the property market.
A report by Savills Singapore estimates that if just two-thirds of those displaced by collective sales - about 3,900 of them - choose to buy replacement homes, their collective kitty could total $6 billion, representing the total payout to these en bloc millionaires.
Savills director (marketing and business development) Ku Swee Yong does not expect all $6 billion to be spent though. 'About $4 billion could be channelled into new property acquisitions,' he reckons.
And developments in the fringe and suburban areas such as Bukit Timah, Upper Bukit Timah, Clementi, Novena/Thomson, and Upper East Coast will be their targets.
Savills projects that only two-thirds of the en bloc millionaires will be in the market for a new home because it believes many already own second homes, if not more.
Savills' analysis reveals that of the 2,795 home owners affected by the collective sales in Q2 2007, up to 2,159 owned homes in the prime districts of District 9, 10 and 11.
And Mr Ku reckons that half of these home owners already own at least one other home.
Interestingly, Mr Ku believes that only 20 per cent of the displaced home owners from homes outside the prime districts have second homes. But the number of en bloc millionaires could taper off if collective sales continue to fall. In Q3 2007, only 13 en bloc deals worth about $1.1 billion were done, down from $6.4 billion for 45 sites in the previous quarter.
Yet, en bloc millionaires are also expected to support the already buoyant residential market.
Savills says that assuming that 30 per cent of owners (or their tenants) affected by collective sales require rental accommodation, 974 units would have been needed to meet the demand over the last nine months. Savills added that the situation is expected to worsen in 2008, with some 800 units needed per quarter to accommodate displaced owners (or their tenants).
Savills does expect most demand for rental units to come from an increase in the number of foreigners working here.
Its report highlighted that foreigners working here grew by 14.9 per cent, from 875,500 last year to just over one million thus far, representing the highest year-on-year growth in the last 10 years. 'With a low unemployment rate and high job creation rate, the number of foreigners working in Singapore is expected to grow sharply,' it added.
Its analysis of data reveals that average rents of all non-landed residential properties in the prime districts rose by 13 per cent to $3.70 per square foot (psf) a month between Q2 and Q3 in 2007, while high-end residential rents climbed even higher to $6 psf a month.
Savills also noted that rents in Districts 8 and 12, on the fringe of the city, have risen by 35 and 23 per cent respectively to about $1.90 psf a month.
Factors against
ReplyDelete1. continued problems with the credit crunch due to the subprime crisis and loss of financial confidence in UK etc.
2. final fallout from subprime crisis still unknown. One large US bank has already written off 13 billion in losses recently.
3. high oil prices are still crimping economic growths. Some economies will inevitably slow if this continues.
4. SG Gov seeks to slow/cool property market to prevent another heightened bubble.
5. Too few large local property developers in SG to keep up and sustain the all too rapid growth in property prices and development. Will need foreign firms to step in and take up the slack if the pace is to be maintained.
6. Rising construction costs are making things more and more costly for developers. Steel has risen 20% just within the last 2 months. The no sale of aggregate by Malaysia and Indonesia to SG is creating a supply problem, requiring for imports from further afield.
Factors for
1. Continued buoyancy from the Chinese and Indian economies trickling wealth down our way.
2. SG Gov has brought forward the timetable for many large infrastructure construction projects to continue pumping money into the economy.
3. With the F1 and 2 IRs due to debut within the next 3 years, the SG Gov will continue to keep the economy buoyant or risk making them white elephants
4. With the continued rise in economic growth, more people will seek to upgrade property-wise
5. Large number of en-blocs end 06 and early to mid 07 will create a well of money that will need to be spent and ploughed back into the SG property market by mid 08 to early 09.
6. The Subprime crisis in the US is turning away some very large foreign property investors who may now notice SG's red-hot property market for investment/development.
7. Property prices are still well below the peak of 1997. Property price trends plotted over the long term have always shown steady positive growth. This means that the current property prices are still on the recovery from the plunge started in 1997 and should by reasonable expectations, recover close to its original positions and beyond.
8. Regional property prices especially in neighbouring Malaysia are also surging, creating momentum for the regional property market.
9. Liang Jieming wants it to continue to rise.
"9. Liang Jieming wants it to continue to rise."
ReplyDelete- ok, let's start praying...
Hey. I'm just listing factors for. I never said anything about it's apparent impact.
ReplyDeleteCareer switch, mon cher?
ReplyDeleteCareer switch from what? The man is in multiple careers.
ReplyDeleteYeah, now that you mention it...perhaps the word is diversification or branching out?
ReplyDeleteAs you mentioned, the US is experiencing a "mortgage crisis" due mainly to two factors. 1) Mortgage companies taking on high risk borrowers in an effort to expand revenue and 2) an over speculated market that created a "bubble" on real estate value. Both of these fed off each other (people biting off more than they could chew on an artificially inflated value) resulting in a market crash (I could see it coming two years ago while looking at Florida's housing market). Lesson being, slow steady market increases are best.
ReplyDeleteno career switch. I'm still in my main career.
ReplyDeleteMy job title is "Principle Self-enrichment Manager".
My duties include earning money, saving wealth, widening knowledge, accumulating experiences, contributing to human development, performing dutifully as son and husband and to be an all round nice guy so as to make the world a better place!
*ok anyone died from choking on their puke yet?
PSM? hmmm sounds interesting... good job description... valid for the male population only... no women could be a son and husband... but could be a nice guy... sigh!
ReplyDeleteJust about. But you provided me with some much-needed laughter, so I'm not complaining. =)
ReplyDeletehaiyah, you just have to adjust the job description for gender mah. "dutifully as daughter and wife and to be an all round good girl..."
ReplyDeleteok, lah, ok lah... will switch lah...
ReplyDeleteWhy would anyone? Even a shallow study of Chinese philosophies will find your duties in line with the teachings.
ReplyDeleteYay!
ReplyDelete"I humbly stand on the shoulders of my ancestors, merely the latest link in a continuous chain stretching back generations through the murky mists of time...." - AB the incorrigible philosopher
This is a situation that will have to be managed, and in my opinion the people I mention below are the ones who will get burned the most.
ReplyDelete2 factors, #1, when times are good, upper-middle income families especially those with dual incomes (and see pay rises and fat bonuses) are keen to 'upgrade' to private residences given the culture of seeing private residences as a sign of social class. Thus they are willing to devote a large part of their income in order to live in a private residence and finance a huge loan from the bank.
#2 Even for those upper-middle income families who do not wish to 'upgrade' to a private residence, they may find themselves without much choice if they wish to move to another residence if their family income exceeds $8000 per month.
So the reality is most in this income bracket will be looking at private residences. Problems will arise when there is an economic downturn and they suddenly find themselves unable to finance their homes or see the values of their homes drop which represents the majority of their assets. Downgrading at this time usually represents a net loss.
Ah, the smart ones.
ReplyDeleteLike I told Sally the other day. Now's not the time to spend money but to save. Forget the expensive car, the month long world tour holiday, the expensive diamonds. When the economy is hot, money is easy to earn but so is it easy to be spent. Everything is also horrendously more expensive. What's making people spend in "good times" is the feel good factor, not common sense. Now's the time to be miserly.
ReplyDeleteThe time to splurge money is during a downturn. Everything is also cheaper in an economic crisis when your money becomes king. Buy your BMW then. Upgrade your home then. Go for your expensive holiday then. Your dollar simply goes further, and when on holiday time, loss of productive time doesn't cost as much too.
Dec 23, 2007
ReplyDeleteInterest in outlying HDB towns picking up: Estates like Sengkang and Punggol gaining popularity as central resale flats' prices rise
By Tan Hui Yee, Housing Correspondent
THE surging prices of resale Housing Board flats in central districts are sending keen buyers to once-shunned outlying towns.
Estates like Sengkang and Punggol - no-go zones for many buyers a few years ago - have become more popular with people hoping to get a bigger bang for their buck.
The executive director of HSR Property Group, Mr Eric Cheng, estimates that demand for resale flats in Sengkang and Punggol has risen by 20 per cent to 30 per cent in the past year.
Dennis Wee Properties associate director Evan Tay, who specialises in Sengkang homes, noted that enquiries for flats there have risen by 20 per cent.
The reasons for this increase are manifold but all the property experts contacted by The Sunday Times highlighted one major factor: the rising amount in cash-over-valuation (COV) that owners of flats in central areas are demanding.
A five-room flat in Queenstown fetched a median COV amount of $110,000 in the July to September period, more than double the amount commanded in the quarter before that.
On the other hand, five-room flats in Sengkang and Punggol were going for a less heart-stopping median COV of $18,000 in the third quarter.
This COV component - the amount that is forked out over and above the valuation of a flat and cannot be paid with a home loan - tends to make or break a deal because most HDB flat buyers rely on loans to finance their purchase.
The chief executive of property agency Propnex, Mr Mohamed Ismail, said: 'In central areas like Toa Payoh, Bishan and Ang Mo Kio, if you do not have $50,000 in cash, you are outpriced.'
Home seekers like Mr David Tan, 44, are heading to the north-east after being turned off by prices in central areas.
The construction material trader spent a couple of weeks earlier this year surveying three-room flats in Rochor, which were going for between $50,000 and $60,000 over valuation.
'I wish I could (buy a flat in the central area). But the price is too high,' said Mr Tan, who eventually settled for a five- room flat in Sengkang for $320,000.
Meanwhile, 51-year-old project manager Yuen Pheng Yin, who moved from the mature estate of Toa Payoh to Sengkang three years ago, decided to stay within the newer town when he opted for a smaller flat last month to reduce his expenses.
'Singapore is too small, no area is too far away. I think I am getting more value for money by staying in outlying areas,' he said.
What also helps is that Sengkang and Punggol flats are relatively newer. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old.
Buyers priced out of more mature waterfront districts like Marine Parade can also take heart that some precincts within Sengkang also provide good views of the picturesque Sungei Serangoon nearby.
Earlier this month, an HDB balloting exercise for 316 flats in Hougang, Sengkang and Punggol attracted an overwhelming 5,147 applications. This is a far cry from the situation just about five years ago, when flats in these far-flung districts were given the cold shoulder as they were deemed to be too far from the action.
Still, HSR's Mr Cheng warned buyers against rushing into purchases in these new towns and overpaying for properties.
The HDB will offer more than 7,000 new flats - expected to be mainly in that region - over the next few months, so home owners looking to sell their flats will see more competition from new units coming onstream.
oh and did I mention, "... and to bring balance back to the Force." too? (and having a ball of a time whilst doing so I might add.)
ReplyDeleteoh gosh... thats a lot of news for me to stomach.... ok ok, got to go back to page 1....
ReplyDeleteOn the other hand it is precisely this herd mentality that allows a minority to capitalise on the markets and get rich easily, in other words you need these people for many of these plans to work. The same is true of just about all markets I can think of.
ReplyDeleteThe rules of investing and building your assets are not hard to grasp and doesn't even take a person of high intelligence (many highly intelligent people are poor or have huge debts) but common sense and long-term planning. Neither are they, as some people claim, only available to the rich. The rich do get richer but many of them started from near-zero as well.
Many Singaporeans complain about the CPF scheme saying the government is withholding their money when they could be investing in and getting a lot richer. Come on, let's be brutally honest here. For 80% of the population if there is no CPF they would have jolly well spend that money in one form or another. Many of them would have lost it in the 1997-2000 market crashes, many others especially the lower income would have just bought more household appliances or furniture. It is because of the CPF scheme that majority of Singaporeans today are not renting but owning their homes. You may then think, oh but I am in that 20%, I know how better to invest my money than the government and the pathetic interest they give. Well then, if you are in that 20%, you would have already discovered how not to allow your money to go into your CPF account right?
Oi, there's a limit.
ReplyDeletewow, never knew you are interested in the property mkt....
ReplyDeleteFrench maidz 're interezted in everyzing! Vee 'ave to be knowledgable in many, many, many zhings so zat vee can be zee parfait companion! Vee must be competent conversationalist and not just zimple minded bimboz non?. Zest one of zee many skillz of zee frenchmaid! Non?
ReplyDeleteTrue true.....I muz bruzh up....
ReplyDeleteThe economies of this region have traditionally (well, as much a tradition as can be obtained through the last 50 years or so) been subjected to the ups and downs of the North Am, Japanese and European economies but something is different this time around. For the first time in the post-ww2 history, the slow down and hiccups in the North Am/Japanese/European economies are not affecting this region as much as before. No one really knows what to expect and predictions were initially all over the place. Economies in this region have entered uncharted territories because of the new bulwark of first China, and now increasingly influentially India as well. Sentiments this economic cycle are extremely buoyant as a result. There used to be a saying here that "When the US sneezes, we fall sick." but recent events have shown a surprising resilience to dips and shakes in the North Am economy. This robustness is attributed to the greater diversification of local economies into the two twin stabilising economies of China and India. This counterweight effect can only be a boon for our small local economies, using one or the other to ride out the hiccups and recessions which can draw us down. Post 1997 Asian financial crisis has also seen a positive consolidation of our local financial fundamentals, making them more robust and therefore less jittery.
ReplyDeleteThere is the fear that all this rapid growth is again leading to yet another super bubble economy but expectations are bullish that we just might have gotten the formula right this time around, sufficient to sustain and maintain our growth. Only time can tell.
The big unknown of course is what would happen if the Chinese and to a lesser extent, Indian economies overheat/burst. The continued surprising unabated growth of the Chinese economy despite yearly predictions to its collapse by various economic "experts" has us understandably cheering. We here, huddled in tiny southeast Asian economies can never be large enough to influence events, and we need the large regional economic blocks to trickle down wealth our way... hopefully for many, many more years to come.
What? You don't think I'm as good as that whathisname Napkin Skyhawker dude and bring balance to the Force?
ReplyDeleteI'll have you know the Force is strong in my family too. We use Chlorine by the bucket to clean our toilets!
Feel the Powah of the Force my young unbeliever!
(you feeling a little tightness in your throat yet?)
(no?)
(ok try now. Yes? Anything?)
(not even a little bit of tightness?)
(oh come on. You've got to be choking on the floor by now.)
Agree with all ... except when was the US$ so cheap against S$ ...?
ReplyDeletehttp://www.todayonline.com/articles/229284.asp
ReplyDeleteVoices // Thursday, December 27, 2007
Help, we are en-bloc refugees
LUCY HUANG
WE HAVE been "en-blocked" for a second time. On both occasions, we were reluctant sellers.
People tell us we are lucky because we are getting a lot of money from the en-bloc sale.
But in reality, we have had to downgrade each time — from private and freehold, to HUDC and leasehold.
And now, it looks like we will have to either go HDB or move to the edges of Singapore — away from our doctors, dentist, friends, church and clubs.
To make matters worse, at almost every prospective home we have checked out, we have been told that there is a good chance of the place going en bloc.
Our housing agent has told us that if we want to live in a condominium, we have to face the fact that sooner or later the owners will try to go en bloc.
We were in our late 60s the first time we were forced out of our home.
Now, we are in our late 70s. The next time, we will be in the same boat as two of our neighbours, who are in their 90s but still have to uproot.
Is this the way we are going to pass our twilight years? Always faced with the prospect of having to sell our home?
The experience is very stressful. Losing one's home ranks alongside losing one's spouse, child or parent. It can be traumatic and mentally debilitating.
We have two other options. First, we can buy an HDB resale flat, which may not have the benefits a condominium offers in terms of security and facilities. Second, we can consider landed property, which would cost a lot more. And, as old people, we will have to hire someone to help maintain it because we will be unable to do so on our own.
Of course, we could also choose to rent a home. However, this would put us at the mercy of landlords who may decide to raise the rent to an unreasonable level, or decide to take the property off the rental market, which would mean more packing, moving and house-hunting.
Even with landed property, we wouldn't have complete peace of mind. The Government may decide to redevelop the estate, or our neighbours may band together to sell.
After working all our lives and raising our children, we had hoped to pass our twilight years in peace and relaxation.
Instead, what can we look forward to? The constant fear of some bright (and greedy) spark rallying all the neighbours to put the entire estate up for sale to a developer?
And if at first they don't succeed, they will try and try again!
As en-bloc refugees, we are appealing to the Government to come up with a solution, which will allow us to live the rest of our lives without the fear of losing our home — again.
LUCY HUANG
Tell me about it ... got a couple of condo-raiders in my estate now ... trying their luck again and again.
ReplyDeleteSeriously no part of Singapore is free of this madness.... opportunists are always quick to take advantage, but like Lucy Huang, I rather stay put in one place... been at my place for the last 30 years... cannot imagine if have to move... sigh!
ReplyDeleteBuying stuff online from the US has never looked so attractive.
ReplyDeleteI've been a nomad since I was born, and not by choice ... well, not mine anyway.
ReplyDeleteI'd definitely have to move from my present place as it's too small for my family, but can't do so until "property dispute" of my HUDC resolved.
I do hope to move to a place where I won't have to move again, unless I so choose.
As KM and Ur pointed out before, this might not be a possibility in Singapore, so going overseas is not out of the cards.
After sorting out my books, I realised my copy of "Search of Mad Jack's Crown" is missing ... tempted to buy it online, as well as "Danger: Due North" and "Mystery of Cranky Collector" (both I never read before).
ReplyDeletesigh... if there are no other alternatives...
ReplyDeleteNot sure what is the nature of your dispute but if it is some bureaucratic red-tape have you tried writing to your MP yet? Having the option to sell it while the market is good is definitely in your favour. Don't miss the boat.
ReplyDeleteNot red-tape, well, not really the government's fault anyway.
ReplyDeleteMade a mistake to buy HUDC together with my parents during the previous peak, when I was unattached.
Found living with them impossible after I got married, and would be intolerable after the children came.
We cannot agree on selling it, so I am still stuck, unable to qualify to buy a HDB.
Too bad I also don't earn bullions of money, or I won't have a problem getting a decent sized private property - another mistake in my career planning ... or lack of planning, to be precise.
well... yes that is making many, many things soooo tempting isn't it? Sigh... discipline Kit Meng.... discipline.
ReplyDeleteDec 27, 2007
ReplyDeleteMore HDB condo-like flats coming up: Bishan to get about 460 flats built by private developers; blocks may be as high as 50 storeys
By Tan Hui Yee, Housing Correspondent
BISHAN, one of the hottest young estates in the 1990s, is poised for a new infusion of public housing built by the private sector.
A 1.5 ha plot in Bishan Street 24, suitable for about 460 flats, was put up for tender yesterday by the Housing Board.
The developer who bags the site will able to design, build and sell flats there with consultants estimating that four-room flats could sell for $450,000 to $490,000.
Blocks can go up to about 50 storeys high so any development will tower over the rest of Bishan's public housing.
ERA Singapore assistant vice-president Eugene Lim said the land release will trigger new interest in the town.
'It will probably bring demand back to Bishan... This 50-storey project will be a landmark,' he said.
'It will probably bring demand back to Bishan...This 50-storey project will be a landmark.'
Experts expect the site - the tender closes on Feb 19 - to fetch between $103 million and $143 million, based on a price per sq ft per plot ratio of $180 to $250.
The site is the fourth to be released under a programme that gives private developers free rein over the project as long as they meet the general rules of public housing.
These include selling flats only to families earning no more than $8,000 a month and ensuring that a project's common areas are easy to maintain. Such flats cater to buyers earning closer to the $8,000 cap and play a bridging role between generic HDB flats and private housing.
The first such project - the Premiere@Tampines developed by Sim Lian Land - drew almost 6,000 applicants for its 616 flats. Its units come with condo trappings like air-conditioning, built-in wardrobes and bay windows.
The Sim Lian sale was held one year ago but HDB prices have shot up by more than 11 per cent since then, so the rush for the Bishan development is expected to be just as robust.
IT sales manager Andy Tan, 32, who is considering a unit there, said: 'The demand could be overwhelming. Hopefully, I am wrong.'
The second batch of 714 such flats in Boon Keng Road, developed by a group led by Hoi Hup Realty, is expected to be launched next month.
A third site in Ang Mo Kio was just sold to Greatearth Development, while three sites - in Toa Payoh, Simei and Bedok - will be released in the coming months. They could hold a total of 1,500 units.
The HDB has offered about 4,800 build-to-order flats and more than 4,000 units from its surplus stock this year.
Young couples have been grappling with surging prices in the resale market and a tight supply of heavily subsidised HDB flats.
A booming market has seen some sellers demand as much as $100,000 in cash over the valuation (COV) of a flat. As this sum cannot be paid with a home loan, and most HDB flat-buyers rely heavily on loans for financing, this high COV puts many people out of the running.
In response, the Government last month committed to offering for sale more than 7,000 new HDB flats over a period of seven months, as well as seven plots of land that could house another 3,000 higher-end homes.
But those in urgent need of new homes may find it tough going as they will take at least two to three years to build.
The HDB's stock of surplus flats has been whittled down from about 10,000 three years ago to less than a third of that.
Buyers have scrambled for such units. Earlier this month, 316 surplus flats in the outlying towns of Hougang, Sengkang and Punggol attracted a staggering 5,147 applications.
By giving all your $$$ to baobei for safekeeping? ;)
ReplyDeleteOverall I think he still spends less than the wife on non-essentials.
ReplyDeletesomebody gonna to tell baobei about that?
ReplyDeleteOnly if he gets to keep his Baobei's $$$ for safekeeping in return.
ReplyDeleteno need. I tell her all the time. But its mainly her own money so.. *shrug*
ReplyDeletekekeke, I thought so...
ReplyDeletelikewise, my money... I buy what I want.
ReplyDeleteUnfortunately government (for various reasons) tend to be behind on the supply/demand curve. They either build too many or not enough, both of which contributes to escalating prices or plummeting values in properties.
ReplyDeleteWhile I believe in free enterprise and allowing the market to dictate prices, HDB flats should be one of areas where prices should be regulated because the whole idea of the HDB is to provide affordable housing to the masses. Even as the current property market is getting hotter and hotter, there are many Singaporeans who are just happy to have a roof over their heads and being able to pay their monthly installments. Rising property prices don't do much for them, if they sell, they would have to find another place to stay anyway, so unless they are prepared to downgrade they may actually be looking at spending more money which they can ill-afford. There isn't very much you can downgrade to when you are already living in a HDB flat.
There is of course a minimal amount of regulation on HDB prices, but unfortunately years ago the government gave in to the easy lure of allowing HDB property prices to appreciate, to have a market valuation. This seems like a good idea at first, after all with the Singapore economy growing and standards of living increasing over the years it make sense to allow the flats to appreciate in value yes? After all this is what happens to all properties. Let us make the HDB flat owners get a sense that their 'investment' or 'asset' is growing along with them and on paper they sure look pretty wealthy and happy citizens tend to be happy with their governments.
There is very little mortgage culture here unlike in the US so while we avoided the "I sell you my $20,000 dog for two of your $10,000 cat" scenarios, the 'in-line' with market values appreciation of HDB flats has actually caused much hardship to many Singaporeans. When times were bad and the market fell, they saw the value of their flats which represented the majority of their hard-earned money reduced overnight by huge percentages. When the market is good (like now), young couples either have to put the bulk of their earnings into their new homes or as above find flats too expensive.
I don't know what is the best solution but HDB and the government need to look at this if they are to keep to their original goal of affordable housing for the masses.
Personally, I believe the HDB should stay just that... government housing to help everyone be able to have a roof over their heads. This foray of the HDB into the EC market and other such areas is really diluting the original mandate, and like you pointed out, possibly leaving some of the less fortunate out in the cold with prices going above their affordability levels. Leave the mid to upper ranges to the private condos. A government should fill the gaps private industry doesn't/can't/won't fill and not always look at the bottom line.
ReplyDeleteI can just picture this bright young President's Scholar attached to the HDB go up to the perm sec and say,'I have this brilliant idea, let's privatise the HDB. I have ran all the figures and stats. I project a 3000% increase in our profits over ten years. There is no downside!'
ReplyDelete... who probably lives in a District 9/10/11 condo... and I might add, is the downside to paying top dollar to these talents to work in government.... they lose touch with the poorer less fortunate segment...
ReplyDeleteYou know... your inability to qualify for HDB is in some sense, a blessing in disguise. I too cannot buy HDB, not even on the open market, and rather thankful for it. 3 years ago when I was looking to buy property, a relative of mine was also looking for property. He being Singaporean, bought HDB. He wanted to take advantage of the Government grant for 1st time home owners. To me, it had seem a little shortsighted IMO but the point was moot for me since I couldn't buy HDB anyways. It forced me to go for a private condo which I bought at around the same price as his HDB. 3 years later, his HDB price has appreciated some 20%. Even factoring in his what.... 40k grant, his property gain on paper is probably hovering around 40% or so. Mine on the other hand, has risen... considerably higher. Yours too I assume. The HDB lure in a economic downturn is in some sense, a blind alley.
ReplyDeleteYou still want top talent to work for the government. What you do not want is to reduce the whole selection criteria to a matter of certifications and academic achievements. Even an impressive private sector track record is not enough. More important is the integrity and compassion of the person and these are attributes judged not in a matter of days but over a much longer period of time.
ReplyDeleteThat's part of my original point. If the HDB's aim is to have affordable housing for the masses, then by right HDB flats should be out of the speculation game, it should not be seen and treated as a way to invest. The idea (which unfortunately the government has encouraged for years) is that your HDB flat, that is your 'investment' your 'asset' will grow along with Singapore and the economy. And for many years this beautiful dream was true. My old flat where I have been living for nearly twenty years was bought by my father for a mere 30,000SGD (of course in those days it was a lot more money) When it was exchanged with some cash for my current flat on paper it appears as if we have made a staggering amount of profit on that 'investment'. But this is just another case of the $20,000 dogs. Japan went through the very same property crisis in the early 90s leading to a prolonged recession for the country.
ReplyDeleteDon't get me wrong, I am not against speculation, I am certainly not against investing in properties. In fact I encourage it. But the HDB flats should not be part of this arena. There are already weird signs that will tell any outside economist this is all artifical. There are limits on home-ownerships, how many you can own etc. In fact (this might have been before you came to Singapore) they had to implement a rule that disallowed folks from buying a HDB flat and reselling it in the very short-term for profit. But the basic problem remained which was the government's tacit aim to allow folks to see their HDB flats as an investment for the long term, and through the CPF scheme fiance their 'future'. All these are well and fine until a crisis happens.
Unfortunately the HDB cannot realistically reduce the current market prices of HDB flats. The reason of course is simple, given the market, any such move will adversely affect the 'assets' of existing HDB flat owners who bought into the dream. The best that can be hoped for is for the government to put a cap on current prices and only let the prices appreciate along with inflation. Whether this is now possible without a huge uproar from the populace is another matter.
The 5 year rule on resale of new HDB and 3 year rule on resale of resale HDB I think still applies.
ReplyDeleteMy point was to SB that he should look on the bright side because unlike my relative who could have easily afforded a private condo at the same price and would therefore have been so much better off now if he hadn't been seduced by the 40k trap, this is something SB can avoid because he is "forced" away from buying HDB. ie. blessing in disguise.
Your point about the HDB needing to continue to fulfill it's basic function is of course valid, just not quite relevant to the point I was making to SB. SB obviously wouldn't mind seeing some property gains. HDB wouldn't have been the way. Really depends on what your objectives are in buying property.
Going back to your point, yes the HDB shouldn't be used for speculation. The 40k is in place to "help" young couples own their first roof over their heads. Instead, it has become part of the speculative "gain".
ps. top dollar scholar comment was tongue in cheek.
Well, definitely not tripled ... it'd be a stretch to even say it's doubled, but more than 20%, yes. After all, it was all thanks for my friend who's an agent who got me the price below valuation in the first place.
ReplyDeleteIn any case, the moment I can buy a HDB, even writing off the HUDC, I can comfortably afford a HDB, if I don't gun for hot areas. My aim in life is to be able to provide for the family so that wife works only for personal satisfaction, and can otherwise devote all she wants to the family.
Her job's getting ridiculous ... me in the private sector can schedule more time with the kids than her, even during the supposed school break.
We're staying in a private property with facilities, but we're so busy we don't have time to cook, much less use the facilities.
Ultimately, bad planning (no planning actually) on my part is to blame, so I'm just trying my best now.
A mutual friend of ours commented to my wife that I devote too much to my family. Well, I never really told anyone the other side of the story yet before.
Oh! Why I didn't know! You're a frenchmaid too!
ReplyDeleteJos! Give sis a uniform.
Dec 18, 2007
ReplyDeleteFrom $34 million To $0: En-bloc sale shelved because of one home-owner. Now, neighbours call him their hero
By Desmond Ng
THE done deal was undone - by one household.
Regent Court in Serangoon Road was sold to a developer in April for $34million after the majority of owners approved an en-bloc sale.
But retiree TK Seah said his family opposed the sale, saying they would lose money.
They took their case to the Strata Titles Board (STB) and won. It threw out the en-bloc sale application last week.
When contacted, the STB said they considered the facts and held that one of the objectors had suffered financial loss.
Financial loss means that the en-bloc sale proceeds, after deductions allowed by STB, are less than the price the owner paid for his property.
Under the Land Titles (Strata) Act, a financial loss case provides grounds for STB to dismiss an en-bloc sale.
Mr Seah said they were promised a payout of about $900,000 for their 1,980 sq ft unit.
He said they bought their three-bedroom unit for more than $1 million in 1996.
This means a gross loss of at least $100,000 for this family, not counting their bank interest repayments.
The 81-year-old said in Hokkien: 'It didn't make much sense for us to say yes to the en-bloc sale because the payout is so little. I don't think it's right that we should lose money during the sale.'
A lawyer The New Paper spoke to, who is familiar with en-bloc applications, was surprised that the application even made it to the STB in the first place.
RARE CASE
He said such en-bloc dismissals on grounds of financial loss are rare.
The lawyer, who didn't want to be named, said: 'You can't have a successful en-bloc sale if someone has already suffered a financial loss.
'But maybe the applicants didn't know there was a financial loss case in the estate.' With a financial-loss case, the buyer of the estate will usually make good the loss suffered by the seller.
The en-bloc payouts ranged from about $560,000 for a 968sqft unit to about $1.3 million for the largest 3,121 sqft units.
With more than 80 per cent of the households (41 out of 49 units) voting for the sale, you would think Mr Seah would not be a popular figure.
But this was not the case.
RISING PRICES
This is because property prices have risen since then, and some residents believe that they could to get a better price for their estate if they put it on sale again.
When The New Paper was at the estate last week, Mr Seah was hailed a saviour by some residents who were discussing the latest en-bloc issue.
Mr Seah looked visibly embarrassed, brushed off the accolade and said: 'I was just looking out for my own interest. But I'm glad others also benefited from the STB decision.'
One resident who voted for the collective sale, a businessman who wanted to be known just as Mr Chiah, was quite relieved the sale was dismissed.
He paid about $400,000 for his two-bedroom unit over 20 years ago.
He would've received about $600,000 from the en-bloc sale.
Mr Chiah said: 'I agreed to the sale because the price was good in April. Today, I'm sure the price for this estate has gone up. So, it's actually a blessing in disguise that the en-bloc sale didn't go through this time. If we put the estate up for sale again, I'm sure we'll get a better price for it.'
Rajah & Tann, the legal counsel for Regent Development, said it is reviewing its options.
The majority homeowners' legal counsel, Legal21, also said it is doing the same at this stage.
Dec 28, 2007
ReplyDeleteAsia all set to decouple further in 2008
At a personal level, many involved in the financial market universe will no doubt have suffered from the credit market crunch whose after-shocks have reverberated throughout the world's financial capitals since August.
Bonuses paid for 2007's efforts have by several accounts been less generous. And more cost-cutting can be expected. In the bigger picture, however, the world's financial markets have so far weathered the crisis well, thanks no doubt to timely central bank intervention, in the form of interest rate cuts and generous liquidity injections.
So despite the fact that a host of blue-chip US investment banks have announced billions of dollars in losses or provisions related to the sub-prime debt held on their books, Wall Street's blue-chip indices will end 2007 comfortably higher than in 2006. Not even the falling US dollar or the threat of slower US growth in 2008 has been enough to force the US stock market into a dizzy downward spiral. Researchers at US investment bank Morgan Stanley - itself a victim of large losses on the sub-prime front - warn that the US economy could even experience a mild contraction over the coming months.
Others warn that Japan's economy may very well suffer the same fate, and that Germany's economy could run out of puff too.
Closer to home, however, the picture remains more upbeat, despite the fact that Shanghai's composite index has exploded 330 per cent since end-2005. And, compared to where they finished in 2006, Hong Kong's Hang Seng and Singapore's STI are likely to end 2007 with gains in excess of 15 and 40 per cent respectively.
Even Morgan Stanley - which expects US GDP growth to average just 0.8 per cent next year, and for oil prices to hold above US$80 per barrel - doesn't expect weaker US growth to impact on this region by more than half to one per cent of Asian GDP in 2008. Indeed, The Economist now expects China to replace Germany as the world's largest exporting nation in 2008, and to overtake the US as the world's largest economy within the coming decade.
In short, Asian economies' healthy external accounts and accumulated surpluses put them in a much stronger position to weather any inclement economic weather.
Currency forecasts for 2008 tell the story best. While some expect the US dollar to recover against the euro and even the high-yielding New Zealand dollar (or Kiwi) by end-2008, almost all expect it to record yet more losses versus a good number of Asian counterparts.
Based on an average of five end-2008 forecasts that have come our way, the US dollar could be as much as 7 per cent stronger versus the Kiwi in a year's time, but may slide a further 5 per cent towards S$1.37 or so.
This is most interesting. Potential US trip in 2008? BTW if anyone here is interested in buying games I am consolidating an order for Q1 next year. Those interested just drop me a note. If the game is available in Singapore, your savings on a single game is not that much and you don't run the risk of packages disappearing on route. Best reserved for those games you can't get here. (Plus support local retailers too)
ReplyDeleteI have my eye set on EastFront by Columbia Games...
We could also try and order stuff like lacquer since the USD is low.
ReplyDeleteJan 2, 2008
ReplyDeleteS'pore private home prices up 31% in 2007: Resale prices of HDB flats also rise by 17.4% for the year, in tandem with robust economy
PRICES of Singapore's private homes rose by 31 per cent in 2007, while that for Housing Board resale flats went up by 17.4 per cent, as the property market rebounded after years of sluggish growth.
But for the fourth quarter, prices of private residential property went up at a slower pace of 6.6 per cent compared with 8.3 per cent in the previous quarter, according to flash estimates of the price index for private residential property released by the Urban Redevelopment Authority (URA) on Wednesday.
Separate flash estimate released by Housing Board also on Wednesday showed that resale prices of HDB flats went up by 17.4 per cent for the year, in tandem with improved sentiments and economic growth.
The fourth quarter HDB's Resale Price Index rose to 121.6 points, an increase of 5.6 per cent over the previous three months.
The URA, which oversees land use planning, said the fourth quarter figures were based on preliminary data.
The flash estimates showed that the increase in prices of non-landed private residential properties was higher in the suburban regions than the central prime areas.
They went up by seven per cent in the Core Central Region, 7.3 per cent in the Rest of Central Region and 7.5 per cent in Outside Central Region in the last quarter.
In comparison with the third quarter, prices of non-landed private residential properties rose by 8.3 per cent in the core central region, and 7.9 per cent respectively in the other two regions.
The flash estimates are compiled based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, supplemented by information on the number of new units sold.
The statistics will be updated four weeks later when URA releases the full fourth quarter 2007 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured.
On the supply side, the URA said there are about 65,400 private residential units in the pipeline, of which about 41,600 new private housing units are expected to be completed between 2008 and 2010.
About 38,000 units of the supply in the pipeline (or 58 per cent) have not been sold by developers yet. This does not take into account new sites that will be made available for development through the Government Land Sales (GLS) programme.
The HDB is also increasing the supply of new flats under the Build-to-order system and the release of Design, Build and Sell Scheme (DBSS).
Both the URA and HDB said they will continue to monitor the market situation and property prices closely.
Singapore's property sector saw record prices paid by developers for older condominium sites as they rushed to redevelop them into new units to meet robust demand during the year.
Data showed prices are within sight of peaks reached in 1996, before a regional financial crisis struck and sent the sector into the doldrums.
Singapore's property sector finally began to turn around after the government in 2005 gave approval for two multi-billion-dollar casino-entertainment complexes.
Strong economic performance and efforts to woo the cash of wealthy foreigners also helped to perk up the sector.
Happy New Year LJM , are Youworking in real estate and propety ,give me some discount .
ReplyDeletehaha Happy new year Simon. No I'm not working in real estate or property. I'm just watching property prices because of the booming property prices here.
ReplyDeleteI checked the prices of recent transactions in my estate - it has skyrocketed since I bought my place about 4 years back. A unit of similar size to mine (mine is on a low floor) sold for close to thrice what I paid for mine.
ReplyDeleteBut I am not particularly pleased - the increase has been mainly fueled by en-bloc speculative trends. That means whatever price I sell now, I'll not be able to find another similar home, in a similar area, with similar facilities.
On a side note, condo raiders succeeded in forming a committee to look into enblocking. Pretty dumb - all developers have just about max'ed out their finances with the deals in 2007. In this enbloc business, one gains more by being courted, not by making the first move.
Still, I really do not think the rising prices is sustainable. If I have the option, I'd definitely seek to sell, and count on the bubble bursting soon.
The number of expats moving in which fueled the demand is going to plateau soon. The way the government answers problems by hiking costs is going to boomerang on Singapore's growth in 2008/2009.
I am just fortunate that my job don't just depend on Singapore's economy.
If you are prepared to live with the hassle, invest your property gains, rent your next property, use the dividend from those investments to completely pay for your rental (preferably with a little left over extra), wait for next economy slump.
ReplyDeleteUnfortunately, I'm a moron when it comes to investing ...
ReplyDeletedude. It's idiot-proof. Think about it. What do you need to get a decent 3 room condo? $2500/month? What's a reasonable ROI? Say some basic stuff at a conservative 4-5% Let's use 4.5% That means you need $666,666.66 invested. Can you get $666k post-tax profit from the sale of your unit?
ReplyDeleteThe better the ROI, the less you need. I have some friends who are currently averaging ROIs of 30-40% They're obviously at least a couple of grades of investor above the likes of me but even an idiot like me can get an ROI of greater than 4.5% in an economic boom like now.
My point is, it doesn't take that much for you to get a decent ROI. If getting $2500/mth is too much, go for HDB. $1500-2000/mth will get you pretty decent HDB. Don't forget, all this while, you're still working and earning your living wages. All this can add up to some seriously good living so long as you don't get itchy fingers and start spending that property gain.
You can't afford to buy because the economy is too hot. So you rent. But the neat thing about this is that so long as the economy is hot, you'll be able to get a decent ROI to maintain that rental. I dare say you could keep this up pretty darn long too. This will help you preserve your profit from the property sales, until the economy makes it favourable to buy again. The key is "wealth preservation". Outlast the boom then when everything goes bust, bring out the cheque book.
DIY or through professional services?
ReplyDeleteTo think that a decade ago, before the crisis, my then CEO was telling us 10% is a waste of time.
DIY apparently.
ReplyDeleteWell, I guess boars are smarter than beagles after all ... :-D
ReplyDeleteuh I don't even come close to what they can get. But then again, they are way bigger gamblers than I. And its more a sign of the times than anything. They lost too in the last recession.
ReplyDeleteYou are not an investment moron, you just need to divest emotions from it in order to make logical choices. Like LJM mention the math is very simple, your daughter with some coaching could probably do it and be an investor. Most people trip up because they let their emotions (and for some greed) get in the way. I know this because i have been burned quite badly because I let my emotions get the better of me.
ReplyDeleteBuy low, sell high (or sell high, buy low for certain markets) has not changed since time immemorial. You just need to be clear on whether something is an asset or a liability or an investment. And again don't be emotional. And, yes there is always an element of risk. For those who want a sure thing in life and say "I can't take risks" (if i had a dollar for every guy who said this...) go fly a kite.
My first rule of investment : don't invest what you cannot afford to lose.
ReplyDeleteBefore the crisis, the margin/leverage was 10%, but the crisis showed the worst can happen.
So far so good though, just nothing spectacular.
I can totally understand. Property for example... one can get very strong emotional attachments to a house. Memories of family, your child's first room etc. So IMO, it really gets harder and harder to play with property the older one gets. Very soon, perhaps pride gets in the way and you or your spouse wouldn't be caught dead in a downgrade with words like "I could never go back to living like THAT!" or "HDB? No way! I'd lose face!" or maybe more innocently, the house becomes too much a home and you'll start sprouting words like "I've lived 30 years in this house." or "This is where my son bang his head on the toilet bowl." or "This is the wall that we repainted last year but you see in that little corner there.... little Ling's first crayon scribbles! We left that patch untouched. Awwww...." etc.
ReplyDeleteWhat's my point. Urrr... I really don't know. Maybe merely to illustrate how difficult it is sometimes to divest emotions from an investment opportunity.
10% per annum is very respectable. You basically double your money every 7.2 years. 10,000 invested today is just under 80,000 in 20 years time. So as an example someone who after selling and downgrading to a smaller place and invests his profit of 250,000 will be in a millionaire (solely from this investment) in less than 15 years.
ReplyDeleteI say again 10% is very respectable.
I'd say, Government shouldn't keep butting into the Private Sector and instead, concentrate on providing more and more of what ISN'T financially viable to build/do/provide/support. If everyone is only going for profit, who's going to build the stuff that needs to be build but won't give any or little profit? Isn't that what a government is for?
ReplyDeleteArguably, if the government is already providing more than adequately all these basic (non-profit) stuff like roads, pathways, parks, air quality, traffic management, low cost housing, basic health care, social services, prisons, law enforcement, defence etc... then yes the government I suppose can and should look into other ways of filling its coffers (so as to lessen taxation on the citizenry) but that's a pretty fine line to draw. Who's to argue that our health care is already optimally covered? Or that our older folk, the invalid, the less fortunate, the orphans couldn't use a couple more million to improve their lives? Or that our roads couldn't be that much more jam-free? Or that our GLC investment arms couldn't be better supported to help open/compete in the areas where our Private Sector MNCs cannot penetrate? Or that we couldn't do more to create better social security or law enforcement etc.?
Is it so important for the government to go into building condominiums too? Is the private sector not building enough already?
Sorry I didn't make myself clearer, Ur. What I meant was before the crisis, one can buy long/short as long as the financier saw you covered yourself for 10% movement in the wrong direction. So instead of needing $10,000 cash for full investment, you're allowed $100,000 investment if you got $10,000. But it is really tricky, and that's how people got into heavy debts.
ReplyDeleteAnd yes, ROI of 10% is respectable these days.
There's a block of old low-rise HDB flats at Tiong Bahru opposite my MIL's place - evacuated because they wanted to tear it down to build high-rises. Then someone discovered they couldn't build high-rise 'cos of proximity to existing MRT lines. So the blocks were left empty for a few years, and now being leased out as hostels.
ReplyDeleteNearby, other low-rises were converted to a hotel, with a covered bridge across the road to link them up.
And so while HDB flats in the area is in *heavy* demand, old HDB blocks are converted to hostels and hotels.
Go figure.
It's an overzealousness that stifles home grown Private Industry. Our Private sector lags behind other competitors like HK because they face competition from the big huge resource rich GLCs, making many potential Microsofts, Mitsubishis, Hyundais etc. stillborn.
ReplyDeleteJan 9, 2008
ReplyDeleteWhen US sneezes, Asia now does not catch cold
THE axiom 'when the US sneezes, Asia catches cold' does not hold true any more.
Asian economies have become less dependent on the United States market, though not completely immune to its changes.
That, at least, was the consensus at the 6th Annual Business Outlook Forum, jointly organised by the Singapore Chinese Chamber of Commerce & Industry and The Business Times on Monday.
Benjamin Yeo, executive director and head of UBS Wealth Management Research, highlighted the growing importance of emerging markets like China against the declining export markets of the US.
Mr Yeo said: 'As far as Asian growth is concerned, we remain cautiously optimistic.'
He attributed his optimism to several factors including the increase in export diversification away from the US in Asia.
Currency strategist Idris Nizam analysed the possible directions of the US dollar versus the Singapore dollar and other Asian currencies like the Chinese yuan and the Malaysian ringgit.
Mr Nizam, director of foreign exchange research at UBS AG, said: 'In my view, global growth has peaked.'
He does not expect a recession in the US, but slower growth is likely.
Asian Property Equities fund manager Frankie Lee discussed the structural growth of the region and the fundamentals of domestic property.
He said that it is not too late to invest in Asia-Pacific property as valuation becomes favourable.
In fact, the timing now is as good as at any point in the past 18 months, Mr Lee said.
Vikram Khanna, associate editor of The Business Times, chaired the panel discussion that followed the analysts' speeches.
Whoa... Queenstown HDB sold for $890,000
ReplyDeleteGood news. Let's hope the property market get hotter and hotter, faster and faster... 2 years baby.
ReplyDelete2 years? What happens in 2 years? You get married?
ReplyDeleteNope, two years time is probably around the peak, that is if the current property craze continues unabated.
ReplyDeleteJan 9, 2008
ReplyDeleteQueenstown flat sold for record $890k: 21st-storey executive flat in Mei Ling Street was bought for $300,000 in 1992
By Tan Hui Yee & Jessica Cheam
THE brief for the property agent was simple: Find an HDB flat with great views and near an MRT station. Top floors only - and, it appears, never mind the price.
Two intense days of door-knocking and a record $890,000 later, the buyer has his dream home - and the most expensive Housing Board flat in the country.
For his money, he gets a spacious 21st-storey executive flat in Queenstown, with expansive views towards Sentosa and leafy Mount Faber on one side and Queenstown Stadium on the other.
The 13-year-old flat in Block 150, Mei Ling Street, is just a few minutes away from Queenstown MRT via a sheltered walkway, and a swimming complex is just around the corner.
The owners, Mr David Ho Khoi Seng, 72, and wife Judy, 64, had paid just over $300,000 for the 1,614 sq ft flat, which has four bedrooms, a living room and a study, in 1992.
Mr Ho, who runs a stationery shop, said he had no intention of selling when PropNex agent David See and his son came knocking last Thursday.
The couple tried to deter the buyers - believed to be an elderly couple who own private property - by asking for what they felt was a ridiculous $900,000.
'We thought $900,000 was too high a price for anyone, but the buyers seemed pretty desperate to find a suitable flat,' said Mr Ho.
Mr See, 47, said he roped in his 20-year-old son Wilson for the quest to give him some work experience before he starts university later this year.
But knocking on doors, he said, is something he would only do for 'genuine buyers'.
'It was a challenge. It's not easy to get people to sell high-floor units at this time,' he added.
Demand had sent HDB resale prices up 17.4 per cent last year, the highest in a decade, but executive flats in coveted districts near the central city like Queenstown and Bukit Merah have been extra hot.
The old record for an HDB flat was $780,000 - also for an executive flat in Mei Ling Street - achieved last November.
Five other such flats in Mei Ling Street changed hands between November and December, ranging in price from $728,000 to $765,000.
Median resale prices of executive flats in Queenstown hit $719,000 between July and September last year, a jump from $609,000 in the previous quarter. This type of flat in Queenstown commanded $120,000 in cash over their valuation in the same period.
A five-roomer in Kim Tian Place in nearby Bukit Merah changed hands for $720,000 last June.
With prices of resale HDB flats expected to climb further, the latest deal has prompted some people to ask when a public housing unit will cross the $1 million mark.
Agents reckon that is a way off yet.
Mr See thinks his record deal was more a reflection of the buyers' eagerness, rather than market sentiment.
Meanwhile, Mr Ho and his wife will live with their 35-year-old son in his Siglap terrace house until they find a suitable home.
When they move, Mr Ho will have to give up a pastime of his: Watching S-League football matches at Queenstown Stadium from the balcony of his Mei Ling Street flat's master bedroom.
They might as well have asked for a million. I wonder why they agreed to reduce by that S$10,000.
ReplyDeleteToo bad it doesn't have a view of the forthcoming F1 Grand Prix ... ;-D
ReplyDeleteThis is a well-written piece. Coincidentally the same writer who posted the interview with David Marshall in Snowy's earlier post.
ReplyDeleteI noticed it too. He's also a lawyer. I wonder if he ever did criminal law as David Marshall was encouraging young lawyers to do in that particular interview.
ReplyDeleteJan 12, 2008
ReplyDelete4-room Jalan Membina flat sells for a record $609 psf: It is believed to be the first time an HDB flat has crossed the $600 psf mark
By Jessica Cheam
A FOUR-ROOM flat at Jalan Membina has smashed the record for the most expensive Housing Board (HDB) flat ever to change hands in terms of price per sq ft (psf).
The 969 sq ft flat sold for $590,000 two weeks ago, which works out to $609 psf - believed to be the first time an HDB flat has ever crossed the $600 psf threshold.
A fabulous view towards Sentosa, and a superb location near Tiong Bahru MRT station and Tiong Bahru Plaza, are being cited as key factors for the very high price.
The last record, reported only days ago, was set by an executive flat in Mei Ling Street with a much larger floor area of 1,614 sq ft, which sold for an eye-popping $890,000, or $552 psf.
Smaller flats usually command higher psf prices - if the Mei Ling flat had been sold at the same $609 psf price as the Jalan Membina flat, it would have fetched $983,000.
Ms Mylene Kwan, 33, a PropNex housing agent who brokered the latest deal, told The Straits Times yesterday that the buyers were a middle-aged couple who recently sold a Queenstown executive flat and needed a new home.
The flat, in Block 21, had a valuation of $475,000. It is a five-year-old unit on a high floor of the 30-storey block, said Ms Kwan.
'The flat was quite attractive, well-maintained, relatively new, and quiet.' The sellers, a couple aged over 50, declined to be interviewed.
The latest record stunned some industry players.
Knight Frank director of research and consultancy Nicholas Mak said the price was 'unusual' - even 'irrational' - given that buyers spending more than $600 psf were typically looking at mass market suburban condos.
'With this price now, you could buy a 99-year condo at outlying estates,' said Mr Mak.
HDB's latest data show four-room units in the same area sold for $415,00 to $495,000 late last year.
Mr Mohamed Ismail, head of property agency PropNex, said the flat's location was likely to be the main factor. 'If bigger five-room, executive units at prime locations sell at this price, HDB prices will push towards the $1 million mark,' he said.
Mr Eugene Lim, assistant vice-president of ERA Singapore, said this was very unlikely. He was not surprised at the price as smaller units usually get higher psf prices.
Mr Ku Swee Yong, director of marketing and business development at Savills Singapore, said the sale was likely to be a 'one-off' event. It was likely the result of a 'ripple effect' from the private sector, where recent en bloc sales have flooded the market with cash-rich homebuyers looking to downgrade to an HDB home.
15 Jan 2008
ReplyDeleteBuyers more cautious when buying new properties last month
By Yvonne Cheong, Channel NewsAsia
SINGAPORE: Homebuyers were more cautious and realistic when paying for new properties last month, according to analysts' assessment of the latest data from the Urban Redevelopment Authority.
The figures showed the number of new properties sold in December was just half of those sold in the previous month.
After peaking at 1,800 units in August, monthly sales of new private properties have dropped to just 291 units in December – half of the number of units sold during the previous month.
Property consultants said that is not unexpected, given the global credit crunch, slowing US economy and withdrawal of the deferred payment scheme.
Tay Huey Ying, Research & Consultancy Director, Colliers International, said: "What all this does to the mind of the potential purchasers is that it becomes very grey which direction home prices are going to take. So I think a lot of potential purchasers have preferred to stay by the side in the month of December, in view of the fact that it's the year-end holiday season.
"I guess a lot of them preferred to take a vacation and defer any purchase or any investment decisions to perhaps 2008 and very likely, after the Lunar New Year period."
Analysts said the data showed home prices were stabilising, with luxury projects such as The Ritz-Carlton Residences achieving a median price of about S$5,088 psf for the three units sold.
According to Jones Lang LaSalle, the gap between the highest and lowest median selling prices has narrowed from 15.8 percent in October to 8.2 percent in December for the core central region.
The out-of-central region properties have also seen its median price gap drop from 14.2 percent in October to 5 percent in December. That means fewer buyers are willing to fork out significantly more than expected market prices.
Dr Chua Yang Liang, Director & Head of Research, South East Asia, Jones Lang LaSalle, said: "I call it the buoyancy level. If you look in terms of the highest median versus the lowest median, and the behaviour over the last few months, the gap has kind of narrowed in the last two months, which indicates that buyers are more conservative."
That applies to both luxury properties in the core central region, as well as mass market properties.
Despite a slowdown in the fourth quarter, the number of units sold last year still came up to a historical record of 14,800.
- CNA/so
I do wish they would publicise the stats of how many units are unoccupied and unsold despite being in the market last year. That might give more food for thought.
ReplyDeleteI'm proposing a "Centerline" group for my condo enbloc to be formed. Basically, the only requirement to join is that you are an owner and that you haven't decided YES or NO enbloc, and that you may decide either way based on information and price. We're going to use this group to gather more information on the enbloc process, the valuation of the condo on the market, etc. and press both the anti-enbloc and the pro-enbloc group to do a better job giving us information and presenting their cases convincingly. You could try that at your condo to. We could probably even do this collaboratively. Basically we just want more information to make an informed choice and not be harrassed bothways by pro and anti groups with sales pitches and pitch battles.
ReplyDeleteJan 18, 2008
ReplyDeleteHome prices stay firm even as property stocks retreat: Amid weak sentiment in a quiet market, many players are adopting a wait-and-see attitude
By Joyce Teo, Property Correspondent
SINGAPORE'S property stocks have been taking a hammering lately but the property market has so far remained unscathed.
After riding the boom to dizzy heights, property counters have now dropped by up to 60 per cent or so from their high points over the past 12 months. Home prices, on the other hand, have not softened noticeably, if at all, although the number of transactions has shrunk significantly.
The share price of Wheelock Properties, for instance, closed at $1.87 yesterday, down 48.9 per cent from its one-year high on Nov 4.
But caveats lodged with the Urban Redevelopment Authority and anecdotes of more recent transactions showed no evidence of property sellers lowering their prices.
'The stock market must fall convincingly before property prices will be hit,' said DMG & Partners Securities head of research (retail) Terence Wong, explaining the apparent disconnect between physical properties and stock prices.
Stock investors' worries stem from serious trouble in another housing market - the United States, which is currently embroiled in a sub-prime mortgage crisis. Fears are growing that the US is headed for recession.
In Singapore, while property buying sentiment is weakening as liquidity dries up, prices are not likely to head south any time soon, analysts said.
They say that is because most potential buyers are believed to be taking a breather for now and watching to see what comes next.
If and when these would-be buyers believe the worst of the current financial worries are over, they are set to jump back into the market, they said.
Mr Ku Swee Yong, director of Savills Residential, said: 'Asia is still very strong and so is the Singdollar.'
'The problem is not bad enough that expatriates have to be repatriated. Our finance industry is still growing and the expats are still renting.'
But things could get worse in the US and that would hit the general investment mood. 'Sub-prime is but the tip of the iceberg,' said Mr Ku.
Knight Frank managing director Tan Tiong Cheng said: 'A prolonged US recession could contain any price increases in the property market this year. But the property market is fundamentally sound and there are buyers on the sidelines.'
Prices of upcoming launches are expected to remain firm, analysts say.
'I believe the major developers will hold as their pockets are deep enough,' said DMG's Mr Wong.
Favourable interest rates will enable them to hold for a longer period, analysts say.
While launch prices are not likely to be hit, resale prices could fall, one analyst said.
Still, analysts believe many people bought properties at high prices in the past year or so and are unlikely to dump them now. Many of them are believed to have strong holding power.
Mr Ku said buyers who made use of the deferred payment scheme before it was scrapped will not be worrying about their buys for several years.
But analysts think some speculators who bought high, hoping to make a quick buck from high-end properties in Sentosa Cove, Marina Bay and the Orchard Road area, are now panicking.
High-end homes have crossed the $5,000 per sq ft mark - more than double the record price in the last peak in 1996.
The days of making quick money from the high-end property market are likely over. 'The clock is running and there would be some speculators out there who cannot service the loans on their property,' said one analyst.
Even so, speculators do not form a large part of the market, analysts say.
With buyers adopting a wait-and- see attitude given the current uncertainty, the market is expected to remain quiet for a while.
I hope it's not the heralds for the Emperor's New Clothes.
ReplyDeleteA little bit scary how every single new article on the SG economy is saying how we will stream through unaffected....
ReplyDeleteHeard that 10 years ago ...
ReplyDeleteI know.... scary...
ReplyDeleteKM, do you have any link to the actual updated rules for forming enbloc comm?
ReplyDeleteJan 22, 2008
ReplyDeletePARLIAMENT: Condo-style flats only a small part of public housing, says Mah
by TAN HUI YEE
PRICEY condo-style flats will remain a small proportion of the total public housing supply with the Government pledging yesterday to continue providing affordable homes.
Its assurance came as high-end flats in Boon Keng offered by private developers were launched recently for up to $727,000 for a five-room flat.
The flats come with interior layouts and fittings more commonly seen in private condominiums, such as bay windows in bathrooms, large balconies and built-in wardrobes.
Buyers are also concerned that prices of resale Housing Board flats shot up 17.4 per cent last year - the highest in a decade - and that sellers in coveted districts are demanding as much as $100,000 in cash over the valuation of their flats.
National Development Minister Mah Bow Tan told Parliament that high-end flats - built under the Design, Build and Sell Scheme (DBSS) - 'serve to fulfil the needs of a niche segment of the HDB market - those with higher aspirations and who can afford a higher price'.
Under the programme, developers are free to design and price the flats as long as they work within the rules of public housing. This means they have to sell flats to families earning no more than $8,000 a month - the limit for households buying public housing.
The first such project, the 616-unit Premiere@ Tampines by Sim Lian Land, drew almost 6,000 applications for its two-, four- and five-room flats with prices from $138,000 to $450,000.
The second, the 714-unit City View@Boon Keng by Hoi Hup Sunway Development, drew about 3,500 applications for three- to five-room flats. Prices ranged from $349,000 to $727,000.
The City View prices had prompted some to wonder if they were affordable to those earning $8,000 a month. Nominated MP Eunice Olsen asked if the income ceiling could be raised for such flats.
Mr Mah said no, because it could result in developers pricing their flats even higher.
The minister added that private companies taking part in the DBSS scheme develop the projects knowing there is an income cap on buyers.
He told Dr Ong Seh Hong (Marine Parade GRC), who asked why the HDB had 'shifted' from its original mission of providing affordable housing, that the board was, in fact, staying the course.
In recent years it had re-introduced new two- and three-room flats, while additional housing grants are also being offered to low- income earners, he said.
Besides, recent buyers of new HDB flats actually spend just 20 per cent of their monthly household income on housing. This is about half of the debt servicing limit typically used by financial institutions.
Mr Mah added that the HDB was monitoring resale prices, but urged buyers who cannot afford the cash-over-valuation sums demanded by sellers to postpone their purchases or apply for new - and cheaper - HDB flats instead.
Demand for such homes has been rising as well. Last month, 316 surplus flats in the outlying towns of Hougang, Sengkang and Punggol drew 5,147 applications.
Can try this. http://www.wongpartnership.com.sg/newsletter/legiswatch_041007.pdf
ReplyDeleteAny new updates? Market this year will be one to watch. Any idea how HDB valuations are calculated exactly? The valuation for my flat is crazy. Even crazier is the buying price which is $200,000 higher than valuation, but at least I can expect that to fall by quite a bit when the market cools.
ReplyDeleteFor those holding on to property with the hopes of selling them for higher prices watch the market and don't wait too long. The thing about estimates is they are just that, estimates. No one can say for sure when the market will turn and by how much.
Jan 23, 2008
ReplyDeletePARLIAMENT
HDB may offer 6,000 flats in H1
SOME 6,000 housing board flats are expected to be offered for sale in the first half of this year, Parliament was told yesterday.
Minister of State for National Development Grace Fu said this matches the sales pace seen in the same period last year.
For the whole of 2007, HDB sales programme offered 13,000 flats - more than double the 5,700 flats sold in 2006.
Ms Fu was responding to questions about HDB's planning parameters and had cited those figures to illustrate the flexibility in the government's building plans.
For instance, if the HDB sees high subscription rates in a certain area, it would also increase the supply of flats in that area.
Ms Fu also stressed that it is 'difficult to predict with precision what the actual demand is in a three-year time frame'. For this reason, the build-to-order (BTO) scheme helps prevent an excess supply of flats. Under BTO, construction will proceed only if booking for a sizeable number of the flats has been confirmed.
Yesterday, Ms Fu also urged first-time flat buyers to check out information on flats supply in different locations, and to consider factors like the chances of success in the balloting exercise, the waiting time, and their budget before deciding on a location.
Jan 23, 2008
ReplyDeleteWhy it's difficult for HDB to predict demand
By Yeo Ghim Lay
THE Housing Board cannot accurately predict demand for HDB flats years down the road.
However, it will be flexible and boost the supply of flats when needed, Minister of State for National Development Grace Fu said yesterday.
She gave this assurance in response to a question from Madam Cynthia Phua (Aljunied GRC), who wanted to know how long newly married couples can expect to wait for a new flat.
With rising property prices and surging demand for HDB flats, some young couples have reportedly had to postpone their customary wedding ceremonies because they could not get a flat in time.
Madam Phua also noted that the HDB seems to face a problem of 'excesses': Three years ago, it had 10,000 excess flats. Now, it has 27,000 applicants for more than 4,000 flats.
She asked if the ministry would consider providing data on the potential supply of flats over the next three years, to help young couples plan.
In response, Ms Fu said it would be difficult to 'predict with precision' demand for HDB flats over a three-year time frame.
'There are certain market forces that affect supply, demand of public housing vis-a-vis private housing, for example, that are not possible to predict with accuracy,' she said.
Ms Fu pointed out that while demand far outstrips supply in popular projects like Telok Blangah Towers, that is not the case in others.
For example, first-time flat owners have a one in two chance of getting a flat in upcoming projects in Sengkang and Punggol.
She advised buyers to carefully consider their budget and how long they are prepared to wait before making a decision on which project to apply for.
She also assured MPs that the supply of flats will be adjusted when necessary.
Last year, for instance, the HDB offered 13,000 flats for sale, more than double the number in 2006.
This year, it expects to offer about 6,000 flats in the first half of the year.
'Our building plan has flexibility and where we see there's a high subscription rate, we will increase the supply of HDB flats,' said Ms Fu.
Right, and by the time you increase the supply, the potential buyers are elsewhere... This is just silly, if the HDB is not in the business to make a profit then simply build in excess by maybe 5 or 10% so that there will ALWAYS be a flat when people need one. And frankly the best time to build flats is when the property market is in a downturn and demand is lower. You not only save on costs (because your contractors are more likely to charge less than when their business is good).
ReplyDeleteThe only 'downside' to this method is prices of HDB flats in general will remain relatively flat regardless of property market situations but then I think this is as how it should be. This is one area that should be regulated.
Jan 24, 2008
ReplyDeleteS'pore developers seen posting sterling results: But market turmoil, govts' moves to curb inflation cloud this year's prospects
(SINGAPORE) Singapore's top three property developers are expected to report a sterling year of results, benefiting from a boom in Asia, but market turmoil and government intervention to curb house inflation is clouding 2008 prospects.
Keppel Land, which kicks off results for developers on Jan 29, is set to report fourth-quarter net profit more than tripled on rising property values and a one-off divestment gain, according to a Reuters poll of four analysts.
For the full year, Keppel Land's net profit is expected to have more than doubled, reflecting strong residential property sales at its harbour-front Keppel Bay projects.
'We're expecting a very strong quarter for developers based on contributions from the residential sector,' said Daiwa analyst David Lum.
Analysts say Keppel Land, 53 per cent owned by conglomerate Keppel Corp, will see fourth quarter earnings boosted by the divestment of its one-third stake in the One Raffles Quay office building to 40 per cent owned K-Reit Asia for S$939 million.
Private home prices in Singapore jumped 31 per cent in 2007, the largest increase in eight years, while developers will also benefit from booming property markets in China, India and Vietnam.
Mr Lum said a move by the government in October to cool Singapore's housing market by ending a delayed payments scheme would have had little impact on the quarter.
But sales figures and the price growth of homes are expected to be slower in 2008, as homebuyers hold off on purchases to wait out the financial turmoil hitting global markets.
'New property launches will probably be delayed until the second quarter of the year and beyond because buyers are more cautious, but we think prices will still pick up especially in the middle end of the market,' said Wilson Liew, property analyst at Kim Eng.
Analysts expect CapitaLand's fourth-quarter net profit to have slipped 23 per cent year-on-year, due to the absence of one-off revaluation gains that lifted earnings in the fourth quarter of 2006.
For the full year, five analysts polled by Reuters expect CapitaLand, South- east Asia's largest developer by market value, to report a 135 per cent jump in earnings to S$2.4 billion.
Analysts say this would have been boosted by strong property sales in China, which currently contribute 32 per cent to CapitaLand earnings, despite a move by Beijing in July to curb property speculation by imposing a land appreciation tax.
'The change had no impact as CapitaLand's inventory in China is now close to fully sold, so any effect would probably only be felt later,' said CIMB-GK analyst Donald Chua.
He also expects CapitaLand's real estate investment trust (Reit) subsidiaries, which include CapitaMall Trust, CapitaCommercial Trust, and CapitaRetail China Trust, to continue making strong contributions.
City Developments, Singapore's second-biggest developer, is expected to report fourth-quarter net profit slid 2.9 per cent from the same period the previous year, which was inflated by a S$151 million one-time gain from the divestment of four hotels to CDL Hospitality Trusts.
But analysts expect City- Dev to continue booking strong income from sales of its luxury apartments including the waterfront Sail @ Marina Bay project, and the sold-out Solitaire apartments in Singapore's high-end Bukit Timah residential district.
For the full year, City- Dev's net profit is expected to jump 77 per cent, according to a Reuters poll of five analysts.
They expect a further boost from continued earnings growth from its UK hotels arm, Millennium & Copthorne Hotels, which is scheduled to post its full-year results on Feb 20.
Shares in the three companies underperformed the 4.9 per cent fall in the benchmark STI Index in the quarter. Keppel Land shed 12.3 per cent, CapitaLand fell 23.1 per cent and CityDev was down 12.4 per cent. -- Reuters
Jan 24, 2008
ReplyDeletePrivate property prices to grow more slowly amid market uncertainty
By Yvonne Cheong, Channel NewsAsia
SINGAPORE : Private property prices will see slower growth in the first quarter of this year, amid the current upheaval in global financial markets and a possible US recession.
That is according to property consultants who said prices will be supported by rentals which will continue to climb higher this year.
There has been frenzied buying and selling in the financial markets, but according to consultants, that is not likely to be replicated in the property sector.
"What the uncertainty is doing is that it's keeping speculative investors at bay and injecting realism into the minds of potential genuine purchasers. So, we're unlikely to see the frenzied level of buying as we've seen in the first half of last year. So the net result is likely to keep price growth in check moving forward," said Tay Huey Ying, Research & Consultancy Director of Colliers International.
According to the latest numbers from the URA, the number of private residential properties transacted fell to 328 in December, after hitting a high of 1,800 units in August last year.
"We suspect there will be more choices available for new projects from second half of February right up to the March and April period. That's when I think we'll see continued demand spillover into the market, particularly onto the mass as well as mid-end projects," said Donald Han, MD of Cushman & Wakefield.
While that demand is expected to support prices in the mass market segment, property consultants said the current market turmoil may impact on the high-end segment.
Still, they believe that prices will hold up because of strong rentals.
"If you look at last year, rentals are expected to rise by as much as 40%. This year, we expect rents to go up by at least about 15-20 percent, so that would potentially provide a higher yield in terms of investing in Singapore residential property market," said Han.
Private property prices were up by about 30% last year. - CNA
Jan 25, 2008
ReplyDeleteBumper prices fetched by HDB flats fuel condo demand: High cash over valuation provides 'filter-up' demand for private homes
By UMA SHANKARI
(SINGAPORE) More Housing Development Board flats in prime locations are now being sold for more than half-a-million dollars each, and the trend is pushing up the asking prices for mass market condominiums and adding to demand for entry-level private homes.
Data compiled by property firm ERA showed that 269 HDB flats were sold for $500,000 or more in the fourth quarter of 2007 - a 69 per cent increase over the 159 flats sold for more than $500,000 each in the previous quarter.
While most of such flats in the fourth quarter of 2007 went for between $500,000 and $599,999, 50 were sold at $600,000 to $699,999.
And 12 changed hands at $700,000 or higher.
Anecdotal evidence also suggests that larger HDB flats in Singapore's central locations are fetching more money than before.
For instance, a 21st-storey executive flat along Mei Ling Street in Queenstown sold for a record $890,000 earlier this month.
Last November, another executive flat along the same street went for a then-record $780,000.
The sellers of such flats will now have the capacity to buy entry-level private homes, said ERA assistant vice-president Eugene Lim.
New homeowners could also look at private homes for their first property purchases, rather than at resale HDB flats in the more central parts of Singapore.
'HDB flats provide the support for entry-level types of private housing,' said Mr Lim.
'If HDB prices keep moving up, people will begin to look at private properties.'
CB Richard Ellis executive director Joseph Tan pointed out that the recent surge in HDB prices has narrowed the price gap between public housing and private homes.
Many of the pricier flats are being sold for high amounts of cash-over-valuation (COV), which means that sellers will have cash on hand to make the downpayment when they purchase private properties.
'The HDB sellers now have greater purchasing power, especially with the high COVs, which can be used for downpayments on private properties,' said Nicholas Mak, director of research and consultancy at Knight Frank.
HDB statistics show that the median COV for executive flats in Bukit Timah rose to $137,500 in the third quarter of 2007.
In Marine Parade, the COV for five-room flats hit $84,000 in the same quarter.
The massive growth in COV for larger flats in central districts can largely be attributed to homeowners that have sold their properties through en bloc sales and are now moving into HDB flats.
But the reverse also applies now, analysts said. Sellers of these flats are starting to upgrade to mass market private homes with spare money fetched from the high COVs of their old flats.
Property agents told BT that sellers of HDB flats with cash on hand are looking mostly at mass market condominiums in the resale market as they need replacement properties to move into.
New mass market homes, by contrast, are not as popular.
But eventually, this 'filter-up' demand will cause mass market property prices to climb, analysts said, which could once again put private homes out of reach of HDB upgraders.
Property agents also report that sellers of mass market private homes are upping their asking prices as they see HDB prices in prime locations head skywards.
'Sellers are seeing five-room and executive HDB flats fetching $700,000,' said one property agent.
'So they think, I can ask for $1 million for my four-room private home.'
The agent said that at least two sellers of mass market homes that he is representing have recently upped their asking prices, even though the new prices are not 'realistic', in his opinion.
Knight Frank's Mr Mak agreed. 'Word gets around that HDB prices are going up, and quite quickly, sellers (of mass market private homes) start upping their asking prices.'
Don't you just love Singaporeans.
ReplyDeleteJan 25, 2008
ReplyDeleteAverage cash above valuation for HDB flats up 30% in Q4
By Yvonne Cheong, Channel NewsAsia
SINGAPORE: HDB resale prices have gone up by a better-than-expected 17.5 per cent in 2007, the fastest rate since prices soared by 25 per cent in 1996, latest official figures by the Housing Development Board (HDB) showed.
Most homes in Singapore have appreciated to the highest levels since 1996. The price of a three-room HDB flat was an average of S$197,000 in the last quarter while a five-room flat in Marine Parade fetches an average of S$598,000.
Islandwide, the median price for an HDB flat was S$340,000.
Cash above valuation has also risen to an average of S$22,000, up from S$17,000 in the third quarter.
Knight Frank's director for consultancy and research Nicholas Mak said, "It basically means that transacted prices are actually growing at a faster rate than the valuation. The effect can be quite positive for the private property market because it means that sellers of HDB flats will have more cash in hand for the down payment of their purchases of private properties. So that could lead to an increase in the demand for private properties."
Rental prices have also gone up by S$100 a month for flats with four rooms or more. For instance, executive flats in Bishan are being let out for as much as S$2,200 a month.
Analysts said this is clearly a spillover-effect from the private property market.
Rents of private homes went up by 41.2 per cent in 2007. The increase in rents and sales prices, however, slowed to 6.8 per cent in the last quarter.
"In terms of prices of private homes, we realised areas that actually had the best performance in the fourth quarter (was) actually the fringe areas – just outside the prime districts of 9, 10 and 11, such as District 5 and in the Tanjong Rhu area. The reason is... I think there are some buyers who find that prices in the prime districts (have) already gone to quite a high level and they're looking for homes that are near to the cities but just somewhere in the more-affordable areas."
Analysts agreed that sales price and rent increases of both HDB and private properties are likely to be more subdued in the first quarter of 2008.
Jones Lang LaSalle's head of research and consultancy Dr Chua Yang Liang said, "With the overhanging sub-prime issue that we're not certain at this moment, what the impact is, I think it'd be a more cautionary leasing market in 2008."
Prices of private properties went up by an expected 31.5 per cent last year. - CNA/a
Jan 26, 2008
ReplyDeleteHome prices on city fringe, suburbs still rising strongly
by TAN HUI YEE
PRICE increases for high-end homes in the central areas may be easing, but not so for homes on the city fringe and suburban apartments - where prices are still rising strongly.
Urban Redeveloment Authority figures showed growth in the prices of uncompleted apartments in the central areas slid from 7.8 per cent to 7.6 per cent from October to December. Price increases for city fringe units, on the other hand, rose from 7.6 per cent to 8.3 per cent.
Growth in the prices of uncompleted apartments in suburban areas also crept up to 9.2 per cent from 9.1 per cent.
Dr Chua Yang Liang, head of research, South-east Asia, at Jones Lang LaSalle, said home prices in the suburbs would keep growing by 24 per cent to 26 per cent this year. This would be supported by home owners looking for new homes after being disloged by collective sales.
Last year, 14,811 new homes were sold.
Mr Li Hiaw Ho, executive director of research at CB Richard Ellis, meanwhile, expects price rises and sales volume to moderate this year.
'Luxury prices are likely to stabilise at current levels, while mid-tier and mass market prices may have the potential to rise by 10 per cent to 15 per cent,' he said.
Straits Times Jan 30, 2008
ReplyDelete"Buy a home within your means"
www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/YH08/$file/yh0108.html
Feb 1, 2008
ReplyDeleteProperty-related loans still growing
By CHOW PENN NEE
LOCAL bank lending related to property shows no sign of abating despite an impending US recession and associated slowdown of the Singapore economy.
Total property-related loans, which include housing loans and lending to building and construction businesses, was 3.2 per cent higher in December than the previous month, reaching $110.7 billion, according to preliminary data released by the Monetary Authority of Singapore (MAS) yesterday.
On a yearly basis, property-related loans were up 23.4 per cent from Dec 2006's figure of $89.7 billion.
These loans constituted the main bulk of banks' lending business here, boosting total loans and advances to $233.4 billion in December last year. This figure is 20 per cent higher than in December 2006.
Loans grew despite measures undertaken by the government to cool the property sector. Last October, the government unexpectedly removed the deferred payment scheme for homebuyers, in an apparent bid to curb speculation.
Lending to building and construction firms jumped 42.6 per cent from a year ago to $37.5 billion. On a monthly basis, the loans were up 8.7 per cent.
December also saw loans to homebuyers reach $73.1 billion, or 15 per cent higher than a year ago, and 0.6 per cent up month-on- month.
Generally, loans to most business segments went up, except loans to sectors such as agriculture, mining and quarrying, manufacturing and business services.
Borrowing by business services companies has been on a downtrend since last November. It surged to $5.3 billion in October, then dropped 12 per cent to $4.7 billion in November and by a further 2 per cent in December.
Meanwhile, housing loans were the biggest component of bank lending to consumers. Lending to other segments like share financing and credit cards also continued to grow, although these accounted for only about 7 per cent of total consumer lending.
The number of credit cards in circulation, including supplementary cards, shrank marginally by 0.5 per cent over the month to 5.7 million at end-December. But the total credit card rollover balance - that portion of the credit card debt that is subject to interest charges - went up over the month to $3.02 billion, from $2.99 billion.
Overall, month-on month, and on a yearly basis, loans to businesses grew at a faster pace than loans to consumers. Monthly, loans to businesses rose 5 per cent to $127.8 billion, while consumer loans grew only 0.6 per cent to $105.6 billion.
Year-on-year, business loans grew 26.3 per cent while consumer loans expanded 13.1 per cent.
Jan 31, 2008
ReplyDeleteProperty firms wary of acquisitions amid market uncertainty
By Esther Fung, TODAY
Even as property prices come off their peaks, sector participants are keeping cautious, with Macquarie MEAG Prime Reit's manager becoming the latest to say it will hold off making acquisitions for now.
The uncertain mood brought on by turbulence and volatility in financial markets is curbing enthusiasm for property around the world.
"We have been shy of making acquisitions at the wrong price. So far, we have been prudent in terms of looking at what's a good buy for us," said Mr Franklin Heng, chief executive officer of Macquarie Pacific Star, the manager of the Macquarie MEAG Prime Reit. The Reit has interests in properties such as Wisma Atria and Ngee Ann City.
He announced at a briefing that for the three months ended Dec 31, the Reit had a distributable net income of $16.2 million, which means a distribution per unit of 1.68 cents.
On Tuesday, Keppel Land CEO Kevin Wong said he will "selectively acquire commercial and residential sites", while Mapletree Logistics trust said last week it "will continue with its yield plus growth strategy, but in the current environment, it will focus on optimising yield from its existing portfolio".
This strategy to look to organic growth to drive earnings contrasts with that of last year, when property trusts derived a large part of their profits from acquisitions.
"Most Reits still have balance sheets to take on acquisitions. But for major acquisitions, perhaps not this year, especially if that requires equity fund-raising," said Mr David Lum, an analyst from Daiwa Securities. "I don't think any Reit wants to be forced into any equity fund raising."
"We are starting to see some sellers coming out of the sub-prime crisis. They may have to sell their assets very quickly, particularly those who are heavily-geared. So, getting financing is very challenging now," said Mr Heng.
Macquarie's "balance sheet is very healthy, so, it's much easier for us to gear up, to make those acquisitions. Especially towards the second half of this year, there should be some quality assets from Singapore, Japan and Hong Kong up for sale".
Feb 2, 2008
ReplyDeleteProperty prices unlikely to fall yet even if launches have been stalled
By Joyce Teo, Property Correspondent
SENTIMENT in the property market is lacklustre, showflats are quiet and developers are delaying launches. So there is a chance that prices will head down, right?
Wrong. While stock market volatility and fears of a United States recession have sent many property buyers to the sidelines, developers have not lost their nerve yet.
Prices for post-Chinese New Year launches are unlikely to head south over the next three months, consultants said.
'Major developers are financially strong, so buyers can't expect price cuts at launches,' said Knight Frank director of research and consultancy Nicholas Mak.
Even if the stock market suffers, the property market tends to lag behind by two to three quarters.
Usually, property prices fall only when there's a recession or general weakness in the labour market, said Mr Mak. Singapore is not facing either of those scenarios and they are not expected to arise, he added.
But individual sellers and some smaller developers could find themselves over a barrel in the months to come if buyers stay home.
Well done to the team. Always glad to see people seeing opportunities and seizing it instead of whining about the rising costs of living. Hope they make it even bigger.
ReplyDeleteActually i think it was just a case of them doing the en-bloc to get the money, not really because they disliked the old location or was set on moving away. Of course, who would have thought prices would rise so rapidly? :-)
ReplyDeleteHow slowly did they think it would rise? Or did they think it'd fall?
ReplyDeleteEnbloc Developers spent $XXX on the whole enbloc process (which might be rejected due to insufficient votes, not to mention potential lawsuits), $YYY buying from the residents, $ZZZ rebuilding a bigger development with money from investors or loans - how much margin did these people think the developers target to take such a risk?
This type of thinking is reflected in the parable about a group of men who were supposed to pool their best wines together in a vat, but each thought he could benefit at the expense of others by contributing inferior wine or water instead.
It is very easy in hindsight to say the rapid rise of the property prices back to 1997 level was anticipated and timing was very logically etc etc.. But all this is in hindsight. I am willing to bet if we are willing trawl blogs of people lamenting about the prices of the property from 2002-2005 a different picture will emerge.
ReplyDeleteLikewise if prices do fall again in a 3-5 years (or not) we will see the same scene again. For those in the fiancial markets just look at how the cycles repeat themselves again and again and again. Humans are, in that sense predictable in their habits and which is why a minority can benefit.
Price cycles for property is a certainty.
ReplyDeleteI don't know about others, but when I bought my current place end 2003, I did feel perhaps it's not the bottom, but it's not going to get much worse.
Feb 5, 2008
ReplyDeletePrime properties in for 5% fall in '08: UBS: Bank expects modest 0-5% growth in mass and mid-tier segments
By ARTHUR SIM
ANALYSTS from Swiss bank UBS believe Singapore's property market will 'remain intact', but they are nonetheless projecting a drop of 5 per cent in prime property prices for the year.
In the more affordable mass and mid-tier segments, where prices increased at a slower pace, UBS expects a modest growth of between 0-5 per cent in prices this year.
In its report on the Singapore property market, UBS says that in light of the uncertainty over the global economic outlook, buyers are likely to defer purchases of new property for at least six months. UBS said that demand 'is highly dependent on the market's outlook for the next three or four years, when the projects are completed'.
It added that with supply of new homes on the rise, there could be pressure on developers to reduce launch prices to 'stimulate demand' - and some developers may start cutting prices as early as the second quarter of this year.
While the larger developers are expected to have more holding power, smaller ones could feel the strain of holding costs sooner. UBS estimates that of the units to be launched between this year and 2010, around 9 per cent are held by small, unlisted developers. Still, it said that there is little evidence to suggest that the market will be affected if small developers 'capitulate and cut prices aggressively when holding costs build up'.
In its report on the current property market conditions, UBS made comparisons with the previous property slump of 1998. 'Markets appear to be pricing a 70 per cent fall in Singapore residential prices, similar to 1998,' it noted.
But UBS said: 'We think the residential market in 2008 will not replicate the 1998 scenario where launch prices fell by 50 per cent in a year, and stock prices fell by 75 per cent.'
It added that expected GDP growth of 3.5 per cent should keep population inflow positive, which combined with negative real interest rates and low unemployment should underpin resale prices.
'Even if job growth were to halve in 2008 to 90,000-100,000, this could still mean housing demand for at least around 15,000-18,000 units, assuming half the newly- weds (23,000 per annum) want to move out, and around 6,000 new households - of new permanent residents and expatriates - relocate to Singapore,' UBS added. It pointed out that the figure is much higher than the expected number of home completions - 8,700 in 2008 and 16,000 in 2009.
As such UBS believes that current share prices for listed property developers have been 'over-corrected'.
'Allgreen's price ($1.17 per share currently) attributes no value to its residential (portfolio), while City Development's price ($12 per share currently) implies a 70 per cent writedown in unsold land,' said UBS.
UBS said that it has adjusted the revalued net asset value and earnings per share for Allgreen, City Developments, CapitaLand and Keppel Land, and given current price levels 'we have retained our Buy ratings on all these developers'.
Feb 12, 2008
ReplyDeleteDon't over-stretch yourselves: MM Lee
Financial prudence in periods of boom will enable S'poreans to ride out bad times
By CHEN HUIFEN
MINISTER Mentor Lee Kuan Yew last night urged Singaporeans not to over-stretch themselves financially in a period of boom, so that in the event of bad times, they would be better able to ride out the cycle.
Describing the effect of the property cycle, he warned that property prices go in cycles and will not keep going up all the time.
'They go up, then they go down,' he said. 'So when they go up, don't believe that it's going to go up further and further, and you start buying bigger and bigger, and mortgage for bigger and bigger amounts. Because the day it starts to fall, the cycle goes around, you will find yourself with a negative value asset.'
It is by such prudent attitude that the government has refrained from spending the hundreds of billions of dollars of reserves that it has built up over the decades. Pointing to the recent investments made by the Government of Singapore Investment Corp and Temasek Holdings, Mr Lee said the two agencies were able to increase the value of their assets because they hang on in a recession, and sell part of their assets and keep cash when the boom becomes too intoxicating. The strategy ensured that when international banks like UBS, Citigroup and Merrill Lynch needed cash, GIC and Temasek would have the cash to invest in them.
Mr Lee was speaking at the Tanjong Pagar GRC Chinese New Year dinner when he made those comments. The constituency dinner, held at Farrer Park Primary School, was attended by some 1,200 residents and guests.
At the event, Mr Lee also cautioned against failing to plan for old age, saying: 'The government will not allow anybody to die of starvation, but we are not going to cover you for your indiscretions.'
Along with the guarded tone in his message, he spoke of a bright outlook for Singapore. While the rise in food and energy prices and the widening income gap are causes for concern, he said Singapore can mitigate these problems.
'But we must press ahead and maximise our chances to break through in the coming five to 10 years to reach a higher quality of development,' he said. 'We are now into a period of steady growth and transformation.'
Apart from the massive foreign infrastructure investments Singapore has attracted, the Republic is also spending about $28 billion in new MRT lines and a new expressway. The city centre is undergoing a makeover with the upcoming integrated resorts, the soon-to-be-completed Marina Barrage, and a Formula One night race.
Mr Lee said that Singapore has become successful thus far 'because we have assumed individual responsibility for our lives'. Without natural resources, the way Singapore has managed to attract investors has been to keep taxes low, and offer a highly efficient, non-corrupt system and an industrial climate where workers, employers and government can work together.
'And that is the basis on which we have huge investments coming in, because they (investors) know that this system will ensure that there will be no sudden dive down,' he said.
'I therefore urge everyone to remember, individual responsibility and family responsibility for each other is the way to go forward and the way to build one of the best cities in the tropics.'
Feb 11, 2008
ReplyDelete278 surplus HDB flats in mature towns up for sale
By Tan Hui Yee, Housing Correspondent
THE Housing Board on Monday offered 278 four-room and bigger surplus flats for sale in established towns like Bedok, Bukit Merah, Geylang and Toa Payoh.
This batch of surplus units is the smallest number offered so far under the HDB's bi-monthly sales programme, but is expected to meet high demand because of their location in mature estates surrounded by amenities.
The previous batch of 316 flats offered in outlying towns of Hougang, Punggol and Sengkang alone drew 5,147 applications, while about 840 other flats offered in two prior sale exercises were fully taken up.
In this current batch, the four-room flats cost $141,000 to $398,000, while the five-room units are priced at $218,00 to $532,000. The executive units are going for $333,000 to $470,000.
Those interesting in booking the units have until Feb 18 to submit their application online, after which a computer ballot will determine their position in the queue to pick a flat.
The HDB said: 'Given the overwhelming popularity of new flats in established towns and the limited number of new flats available here, HDB would like to encourage flat buyers to consider flats in non-mature estates as well.'
For the first half of this year, the HDB will offer about 4,500 new flats under its build-to-order system, where flats are built only when the majority of units are taken up.
There is 'ample supply' of new HDB flats under the BTO system, said the Board. About 200 flats in its 698-unit BTO project in Sengkang called Coral Spring were not taken up after the booking exercise ended last month.
The HDB also said it was conducting a review of the bi-monthly sale programme for four-room and bigger flats, under which it has offered 3,350 flats since last year.
Feb 16, 2008
ReplyDeleteNew home sales remain low with cautious property market
Developers launching fewer units as fears over US slowdown, stock volatility linger
By Joyce Teo, Property Correspondent
CAUTION remains the watchword in the property market, with buyers still kept on the sidelines by concerns over the United States economy and choppy stock markets.
Developers sold just 316 new homes last month - a tad up on the 305 sold in December - and launched only 410 units, compared with December's 445.
Prices also reflected the uncertain mood and remained largely flat, with overall median prices showing a slight dip.
The removal of the deferred payment scheme has brought transactions to a more sustainable level, according to property services firm Jones Lang LaSalle.
There were some bright spots. Wilkie 80 in Wilkie Road was sold out, while Waterfront Waves in Bedok Reservoir Road reported favourable sales. They made up 41 per cent of all new units sold last month, according to the sales figures out yesterday.
The pinch was felt most in the high-end sector, with few homes sold and none above $4,000 per sq ft (psf). This is a sign that the high-end segment may be experiencing a 'challenging period', said Knight Frank director of research and consultancy Nicholas Mak.
The new figures, which came from developers but were released by the Urban Redevelopment Authority, show that some of the heat may have come out of the market.
Median prices for new private homes, excluding executive condos and landed homes, fell 3.2 per cent from $1,124 psf in December to $1,088 psf last month.
The lowest transacted price was $737 psf for a unit at Coastal View Residences in Jalan Loyang Besar, while Scotts Square in Scotts Road achieved the highest at $3,671.
Projects outside the central region performed best. There were more sales, and the 220 units launched marked the highest since last August.
Buyers at the leasehold Waterfront Waves picked up 79 units and pushed prices up to $909 psf.
In the mid-end segment, Wilkie 80 was sold out at a median price of $1,544 psf. Zenith in Zion Road, launched in December, sold 22 units, while 12 out of 50 units at Mount Sophia Suites went for a median price of $1,719 psf. At the landed project Pavilion Park, 24 terrace houses sold at between $1.8 million and $2 million.
Consultants project lower sales this month, as the Chinese New Year festival will deter buyers from venturing into the market.
'However, developers are likely to maintain prices at current levels as they monitor the market situation,' said Mr Li Hiaw Ho, the executive director of CBRE Research.
Mr Mak expects sales volume for the first quarter to remain thin due to uncertainties over the US economy and stock market turbulence. More developers are delaying or reviewing launches, particularly high-end ones.
'The challenging period experienced in the high-end segment is expected to continue, but the fall in the volume could be compensated by the steady volume in the other segments,' he added.
Colliers International director for research and consultancy Tay Huey Ying said: 'We see the mass and mid-end segments supported by en bloc sellers looking for replacement homes.'
Developers could end up launching and selling up to 9,000 new private homes this year, compared with 14,811 last year, she said.
Feb 17, 2008
ReplyDelete9 in 10 find S'pore an expensive place to live in
Respondents in Sunday Times poll blame higher cost of housing, transport, food and utilities
By Tan Dawn Wei
HOUSEWIFE Goh Lay Leng has seen her monthly grocery bills go up by 10 per cent, and that has prompted the mother of four to look for cheaper alternatives.
'Everything is increasing and we're spending more. My husband says there's hardly any money left at the end of the month,' said Madam Goh, 44.
Her engineer husband brings home about $5,000 a month and the family lives in a four-room flat in Pasir Ris.
A total of 91 per cent of the 353 respondents in a Sunday Times survey agreed with Madam Goh, saying that Singapore had become an expensive place to live in.
The survey had been conducted in late December to understand Singaporeans' attitude to money.
Nine in 10 also felt that Singapore was an expensive place to raise a family. Less than half were confident that their living standard would improve in the next two years.
They blamed the higher cost of housing, transport and basic necessities such as food, water and power.
Almost half said that they felt the financial strain of servicing mortgages or rents, although 36 per cent were contented.
Nearly half felt that a family of four needed between $50,000 and $70,000 a year - or $4,167 to $5,833 a month - to live comfortably.
The latest figures from the Department of Statistics show that the average household's income went up by 9.6 per cent last year, the biggest increase in at least a decade.
It rose to $6,280, up from $5,730 the year before. Families with higher incomes also had bigger pay hikes than those in lower-income households, widening the rich-poor gap.
Prime Minister Lee Hsien Loong said recently that he expected inflation this year to be 5 per cent or more. It was about 2 per cent last year.
MP Halimah Yacob said that the public's mood may have been dampened by the continuing prospect of high inflation. But she was also heartened that Singaporeans were practical and prudent.
'They think of investing in their children's education and old age and that reflects that they do recognise the need to plan for the long term,' she said.
Take 41-year-old Madam Zaina Mohammad. The part-time cashier and her Cisco officer husband's combined monthly income is just $2,000, but the couple make sure they deposit $50 every month into each of their three children's bank accounts for their education fund.
Like her, the priority for most Singaporeans is their children's future. If they had a million dollars, 27 per cent said that they would spend most of the money on education.
One possible indication as to why their children's education reigned supreme: More than half of those surveyed said that they were either not sure, or did not think that their children would be able to improve upon or afford their present lifestyle as adults.
Another indication of Singaporeans' prudent and practical traits: More than four in five chose to save their surplus income every month.
Despite rising prices, nearly all the people polled had no plans to pack up for greener pastures.
Ninety per cent agreed that Singapore was still a place worth living in. Also, two in five were glad that Singapore had become one of the richest countries in the world, because it meant better public amenities, a more cosmopolitan society and a vibrant nightlife and cultural scene.
Despite having to scrimp and save, Madam Zaina isn't going anywhere. 'It's peaceful here and it is our home after all,' she said.
Feb 18, 2008
ReplyDeleteHDB flat still very affordable for average S'porean
Some get up to $88k in subsidies, says Mah Bow Tan; also flats still cheap enough for families to use CPF for full mortgage payments
By Alvin Foo
PROPERTY prices may be on the rise but HDB flats still remain very affordable for the average Singaporean, National Development Minister Mah Bow Tan emphasised yesterday.
That is because families have access to subsidies which can go as high as $88,000 for some households, he noted.
And flats are still cheap enough for families to be able to fund their mortgage instalments entirely from Central Provident Fund (CPF) contributions - without the need to stump up cash.
Mr Mah made these points at a Chinese New Year dinner at the Tampines East Community Club yesterday.
With HDB resale prices rising about 17.5 per cent last year, he said he is well aware that younger Singaporeans are becoming increasingly concerned about the affordability of HDB flats.
He reiterated the Government's commitment to providing affordable public housing and said there were two ways to achieve this.
One was to give big housing subsidies to help newly-weds buy their first HDB flat. The other was to provide mortgages at a concessionary interest rate.
In terms of subsidies, an Additional CPF Housing Grant (AHG) introduced in March 2006, provided lower-income families with an additional grant of between $5,000 and $20,000 to buy their first HDB flat.
The income ceiling for this grant was raised from $3,000 to $4,000 to allow more families to benefit. And the grant limit was also increased by $10,000 so that the highest tier grant is now $30,000.
Mr Mah said: 'A recent Ministry of Finance simulation estimated that the typical young low-income household could enjoy housing subsidies worth about $88,000.'
He also revealed that HDB's records show that recent buyers of new HDB flats use only about 20 per cent of their monthly household income to service their housing loans.
'This means that families can service their housing loan entirely from their CPF Ordinary Account contribution, without any cash outlay,' he noted.
In any case, rising resale prices seem also to have stabilised for now so there is no need for buyers to rush in at this point, said Mr Mah.
'The HDB Resale Price Index grew by only 1 per cent last month, and we expect prices to grow at a more moderate pace in 2008,' he added.
Mr Mah also noted that the proportion of resale transactions with a positive cash over valuation, as well as the median cash over valuation also dipped marginally last month.
He said HDB will continue to monitor the situation closely.
Feb 22, 2008
ReplyDeleteProperty sector braces for tougher times in 2008
Players feel squeeze from more credit woes and soaring construction costs
By UMA SHANKARI
THE property market in Singapore is set to face a challenging year ahead as it continues to take hits from the sub-prime crisis in the United States and rising construction costs, industry body Real Estate Developers' Association of Singapore (Redas) said.
'Unfortunately, the sub-prime woe continues to hog the headlines,' saidRedas president Simon Cheong, during Redas' annual Chinese New Year celebration yesterday. 'Six months' ago, we were concerned with the market exuberance. This coming six months, we are wondering when the market will turn around.'
Construction cost is also spiralling upwards at an unprecedented rate, Mr Cheong said.
The property market's expected slowdown comes on the back of an exceptionally good 2007. Last year, a record-breaking 14,800-plus residential units were sold, the office occupancy rate hit 93 per cent and the hotel sector saw a occupancy rate of 87 per cent.
But this year, with more write-downs for sub-prime exposure expected from major financial institutions - which could affect home prices and demand here - and high construction costs affecting margins, developers are bracing themselves for tougher times ahead.
'We are concerned that construction costs have gone up so sharply and squeezed (developers') profit margins so much that a small decline in the the final selling price will affect developers severely,' said CB Richard Ellis' chairman for Asia, Willy Shee. 'A small increase in construction cost and a small decline in selling price will put developers in a very difficult situation.'
Minister of State for National Development Grace Fu, who was guest-of-honour at Redas' event yesterday, similarly said that the property market's prospects are dependent on how the sub-prime crisis is going to affect sentiment in the region.
Mr Cheong believes that the market will 'get some traction back' in the second half of this year.
Interest rates in Singapore are at a record low, which will encourage home ownership, he said. And the influx of expatriates at all levels coming to Singapore - on the back of an anticipated office supply of 15 million sq ft over the next three to four years - will also provide a boost to the property market, Mr Cheong said.
'Removal of estate duty also helps,' said Chia Ngiang Hong, Redas' first vice-president and group general manager of City Developments. 'The super-rich will focus on Singapore again.'
Analysts, worried about developers' prospects for this year, are already starting to recommend that investors put their money into the more diversified property companies and/or switch to real estate investment trusts (Reits).
'In the current volatile market environment, we recommend stocks of listed property companies with strong balance sheets offering multiple-sector presence and geographical diversification,' said UOB Kay Hian analyst Vikrant Pandey. Citigroup analyst Wendy Koh said: 'In the light of the current uncertainties, we retain our preference for Reits over the developers.'
Feb 22, 2008
ReplyDeleteQuieter property market but outlook favourable in long run
By Joyce Teo, Property Correspondent & Fiona Chan, Property Reporter
THE real estate roller coaster that developers have ridden in recent years has taken a sharp turn, thanks to United States sub-prime woes, and left the industry wondering what is coming next.
'Six months ago, we were concerned about the market exuberance,' said Mr Simon Cheong, the president of the Real Estate Developers' Association of Singapore (Redas), yesterday. 'These coming six months, we will be wondering when the market will turn around.'
After an exceptional year of strong prices and sales, the sector has slipped into the doldrums, with buyers and sellers taking cover from the onslaught of a global economic uncertainty, America's sub-prime mortgage crisis, stock market turmoil and escalating building costs.
Mr Cheong told a Redas Chinese New Year lunch: 'Though Asia's economy has a strong buttress - China - the temporary effect of weak sentiment from sub-primes will affect buying for at least the first half of this year.'
Sellers are also lying low, with developers delaying launches and pushing back project completion dates amid the construction squeeze.
Building costs have climbed at an 'unprecedented rate', added Mr Cheong, who is also chairman and chief executive of SC Global Developments. 'What is clear is that developers are bearing the brunt of higher construction costs. Something's got to give eventually.'
Developers will have to factor in high construction costs when they replenish their land bank, he said.
However, in the longer run, the market outlook is favourable, considering the Singapore economy's sound fundamentals.
'Rental yields will eventually dictate and underpin what capital values will be for property,' said Mr Cheong. The expected slowdown in supply will support the rental market.
Minister of State for National Development Grace Fu told the media during the lunch that the market may be quiet, but prices are firm while demand for commercial property is still resilient.
Those sentiments were echoed by consultancy Savills Singapore, which expects the office sector to stay buoyant.
Deputy managing director Simon Smith told a press conference that average prime rents should match Hong Kong's by the second quarter and surpass them by year-end.
This is because Hong Kong will see a lot of new supply coming onstream this year while Singapore's supply will remain tight in the short term, he said.
But higher rents in Singapore may not be enough to push businesses to Hong Kong. 'Many clients we see switching between the cities tend to do so because of strategic reasons rather than cost reasons,' said Mr Smith.
Channelnewsasia.com Search Results
ReplyDeleteTitle : Less private home launches as property market slows down
By : Yasmine Yahya & Pamela Almeda, Channel NewsAsia
Date : 15 Feb 2008 2209 hrs (GMT + 8hrs)
SINGAPORE: There are more signs that Singapore's property market is slowing down.
Latest numbers from the Urban Redevelopment Authority (URA) show that developers launched just 410 new housing units in January – that is 16 percent less than the number of units launched in December, which was also a quieter month.
Industry watchers said market sentiments have cooled due to the sub-prime crisis and global economic slowdown.
In fact, private home sales in Singapore were at a standstill in January, with developers selling 328 private homes last month.
A unit at Scotts Square at Scotts Road commanded the highest price of S$3,671 per square foot.
At the lowest end, 12 units at La Casa in Woodlands Drive fetched between S$537 and S$601 per square foot.
While last year's property boom is not expected to be repeated, analysts do expect the market to pick up again in the second quarter.
- CNA/so
Well, the 2010 Youth Olympics will ensure continued demand for construction work, so I hope it will balance out things out.
ReplyDeleteThere was a large influx of illegal labourers into Sydney in the run-up for 2000 Olympics, and immediately after the Games, there was a downturn in the economy (expected) and a lot of the illegal migrants melted into the vast country.
Can't imagine what'll happen in Singapore if this is not managed properly.
Brilliant. Simply. Brilliant. You realised the SG government found a way to pay for it's brand in Kallang Stadium?
ReplyDeleteIt's an opportunity for all existing sports venue in Singapore to get funds to be brought up to standards ... after all, the participants will need their daily practice to keep in form.
ReplyDeleteWhich Snowylady and I predict would probably include commandeering the sporting facilities of schools, and in all probability, cause the school sports and inter-school sports events in 2010 to be completely rescheduled. Can't imagine yet what it'd do to her workload that year!
Speaking of which, Singapore still doesn't have a decent place to do cross-country. Cross-country events of schools & SAF had been moved to places like Bishan Park, Turf City, Sentosa etc.
More work for CS engineers for a couple more years, even if the residential building tapers off.
Now, if only SG can avoid offending the countries supplying of sand, granite etc., things could work out okay.
Oh wait, must also avoid offending the suppliers of fresh vegetables, pork, rice and all that stuff too.
Unless all countries take cue from the US and supply their own teams with their own food baggage trains :P
Don't forget too that CPF cannot be used to pay for property with less than 60 or so years left in the tenure. That skews the pricing of residences a lot in Singapore.
ReplyDelete11 Mar, 2008
ReplyDeletePublic housing demand continues to be brisk in 2008
By Wong Siew Ying, Channel NewsAsia
SINGAPORE: The demand for public housing continues to be brisk. HDB's first build-to-order project this year at Punggol Spring is already four times oversubscribed.
New flats aside, property agents have also described the HDB resale market as the kingpin for the real estate sector in 2008.
The application for Punggol Spring, where 494 units of four-room flats will be built, will not close until 17 March, but the project is already oversubscribed with 2,093 applications.
Punggol Spring is part of the 4,500 new flats that the Housing and Development Board (HDB) has committed to build for the first half of this year. Prices of the Punggol Spring flats range from S$204,000 to S$259,000.
Apart from this build-to-order development, HDB's bi-monthly sale of four-room and larger flats in February also drew overwhelming response, with over 10,000 flat buyers vying for just 278 units.
Eugene Lim, associate director of ERA, said: "They are usually the first timers and they do not have so much cash with them, so as the norm is cash over value for the resale market, so inevitably, they are being pushed to the new flat market where they don't have to come up with as much cash or don't need to come up with any cash at all."
Still, transaction volume in the HDB resale market is expected to remain strong. Industry players project 30,000 units to be sold in 2008, 1,000 more than last year.
Price-wise, it is estimated to increase by about ten per cent in 2008, compared to over 17 per cent in 2007.
Property agents said the spike was partly due to the sharp rise in cash over valuation (COV). But they added this is likely to change as buyers have hit a threshold when it comes to forking out more cash.
Propnex CEO Mohamed Ismail said: "The central areas were getting as high as S$100,000 for Queenstown, Bukit Merah, Toa Payoh, but such prices are not sustainable in the long term. Therefore, I do foresee (for) the very high-end side in the central location, the COV (will) dip quite drastically."
Some property agents said the COV for flats in the central region will dip by 20 per cent within the next three months. As of the fourth quarter of last year, the average COV for the area was about S$35,000 to S$40,000.
Despite the high demand for flats, agents are confident there will be enough to go around, whether it is for families or singles.
They also welcome HDB's new incentive to offer an extra S$9,000 grant to singles who buy a resale flat and live with their parents.
The scheme, however, is unlikely to have any impact on the market, given the small segment it serves. - CNA/ac
No mention of The New Paper report on 11 March 2008 on the stormy enbloc proposal meeting at Bayshore Park?
ReplyDeletehttp://newpaper.asia1.com.sg/news/story/0,4136,158882,00.html? and http://newpaper.asia1.com.sg/news/story/0,4136,158881,00.html?
what stormy enbloc proposal? share leh
ReplyDeleteI posted the links, but seemed to meld into the background. Check out The New Paper's official website http://newpaper.asia1.com.sg today for yesterday's articles.
ReplyDeleteNothing much to report. People acting childishly, insults thrown left right center, votes were cast, sales committee was formed. That just about covers it.
ReplyDeleteMar 18, 2008
ReplyDeleteNew home sales nosedive in Feb
Only 185 out of 343 units sold, down from 328 in January, but prices are holding steady
By Fiona Chan, Property Reporter
SALES of new homes slowed almost to a standstill last month, delivering another blow to the already-weak housing market here.
Property developers yesterday said they sold only 185 new units in February, about half of the 343 they launched in the month and well down from the 328 sold in January.
This anaemic performance, coupled with the continuing quietness of the market this month, prompted some experts to predict that new home sales this quarter could hit one of the lowest levels ever seen here.
'The current weak market sentiment is likely to stay, which means that the total number of new homes sold in the quarter may be 700 to 800 units,' said Mr Li Hiaw Ho, executive director of CB Richard Ellis Research.
He said this could be worse than during the Asian financial crisis, when just 894 new units were sold in 1997's last quarter. Only Sars in 2003 saw fewer new homes sold: 427.
In contrast, developers sold 14,811 new homes in the exuberant boom last year, or an average of 3,700 homes each quarter.
Property consultants say they were not surprised by last month's feeble numbers, given the Chinese New Year holiday and the snowballing global financial crisis originating from the United States.
But even as some admitted the contraction was 'worse than expected', they stressed the silver lining: home prices are still holding steady.
At Hong Leong Holdings' Aalto in Jalan Kechil, two units were sold for a median price of $2,619 per sq ft (psf), up from the median $2,078 psf fetched by three units in January.
'There are strong fundamentals to support home prices,' said Mr Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research.
'En bloc sellers have to look for housing and they are cash-rich. We still believe in the 'remaking Singapore' story and with more foreigners coming in, property prices are likely to hold in the coming months.'
But market confidence will 'remain shaky' until the extent of the US recession can be measured, said Ms Tay Huey Ying, director of research and consultancy at Colliers International. She expects market activity to remain lacklustre until June.
At some projects, prices have started to dip slightly. At Ritz-Carlton Residences in Cairnhill, only one unit was sold last month at $4,140 psf. None was sold in January, but five were taken up in December for between $5,053 and $5,146 psf.
The best performer last month was the Cosmo condominium in Guillemard Crescent, where 41 out of 45 units were sold, mostly within the first week of its launch, for between $1,048 psf and $1,152 psf.
Mar 21, 2008
ReplyDeleteMass market and mid-tier private apartments expected to do well this year
By Wong Siew Ying
SINGAPORE: Prices of mass market and mid-tier condominiums are expected to remain strong this year.
But those of high-end residential properties could taper off by up to 10 per cent.
And if you're looking to buy, the market is in your favour, according to Propnex's CEO, Mohamed Ismail Abdul Gafoore, in a speech to alumni members at the National University of Singapore.
Despite the weaker market sentiments, industry players expect mass market condominiums to do relatively well this year and prices are set to climb but at a more sluggish pace.
And more supply will come into the market as 31,000 new private apartments are completed over the next five years.
Propnex said it's now a buyers market and home hunters could get good deals.
Mr Mohammad Ismail said: "When we compare the prices of places like Parc Oasis or Woodsgrove condo, the prices today hold and in some instances are even higher per square foot.
“Look at today, the public housing pricing, and the DBSS pricing per square foot. They are already going at almost S$600 if one would want to buy at a mass market price that is less than S$800 with full facilities."
According to agents, the landed housing space could see modest growth but prices should hold steady.
The outlook is less positive for luxury apartments, which only six months ago were transacted upwards of S$2000 per square foot.
Property agents expect the dust kicked up by the US sub-prime crisis and the rising oil prices to settle by 2009.
They are also confident that the future is still bright for the property market as Singapore has the right fundamentals in place.
Meanwhile, demand for public housing is expected to remain robust this year, providing to prices.
So some agents believe it's a good time for HDB flat owners to trade up to a mass market private property. - CNA/vm
Mar 25, 2008
ReplyDeleteDon't know what to do during the current property lull?
PROPERTY EXPERTS GIVE SOME TIPS
# Seven tips for buying a second home
Did you know, for example, that an HDB flat near an MRT station will give you a higher rental yield than most private properties?
# The importance of being earnest when going en bloc
A major en bloc sales agent discusses the impact of the new legislation on collective sales introduced last year on warring owners.
# Are you overpaying for your home loan?
Is the deferred payment period on the condo unit you bought a little while ago expiring soon? Read an independent mortgage broker's advice before you go shopping for that home loan.
# Aim for a landed home
So you've missed out buying a condo last year? Not to worry. Landed homes may become more appealing this year as they have yet to see the sharp price appreciation experienced by their non-landed counterparts.
Mar 31, 2008
ReplyDeleteEnd of property boom in sight?
WHAT IT IS
FLASH estimates of the property market's showing in the first three months of the year will be released by the Government tomorrow.
The figures, released quarterly, track prices and rents of HDB flats and private property. They are based on caveats lodged in the first 10 weeks of each three-month period.
Fuller figures and more detailed information will be given out on April 25.
WHY IT MATTERS
This round of figures is expected to shed light on the million-dollar question: Is it the beginning of the end for the housing boom?
The last set of numbers showed that a stellar rise in home prices over the last two years was starting to slow.
Since then, the market has reached a virtual standstill.
Property developers have delayed launches as buyers, spooked by the worsening global credit crunch stemming from the US, are holding off buying.
Individual home sellers convinced of Singapore's economic fundamentals, meanwhile, are refusing to lower their prices.
If tomorrow's data shows prices have plateaued or even dipped, it will be welcome news for homebuyers.
Reported in ST today - Bravo, which bought Tulip Garden in en-bloc deal, requested for postponing the process.
ReplyDeleteApr 01, 2008
ReplyDeleteDefault HDB and private property prices up in Q1 flash estimates
Channelnewsasia
Private residential property prices in Singapore rose 4.2 percent in the first quarter this year, according to the latest preliminary estimates from the Urban Redevelopment Authority.
The pace was slower than the 6.8 percent clip recorded in the fourth quarter of last year.
On a quarter-on-quarter basis, the biggest rise in property prices for non-landed properties came from outside central region - up 4.8 percent in the January-March quarter compared with the October-December period.
Properties in the prime districts of 9, 10 and 11, as well as the downtown area and Sentosa, rose 4.4 percent on quarter.
Prices in the rest of the central region increased 3.9 percent in the first quarter from the previous three months.
The preliminary estimates were based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, as well as the number of new units sold.
Meantime, the Housing and Development Board (HDB) said prices of HDB resale flats rose 3.4 percent in the January to March period over the previous three months. This was lower than the 5.7 percent increase in the fourth quarter.
Both the URA and HDB will release final figures at the end of April.
The URA said that as at 4th Quarter 2007, there are about 64,900 private residential units in the pipeline, of which about 56,100 new private housing units are expected to be completed between 2008 and 2011.
There are also some 38,300 units that have yet to be put on sale by developers.
As for the supply of government flats, the HDB said it had made available in the first quarter of this year some 1,100 new flats in two Build-To-Order (BTO) projects in Punggol and Yishun.
It said that depending on demand, there could be another 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang.
The total planned BTO supply of 6,100 new flats for January till September 2008 will surpass the annual BTO flat supply in 2007 and 2006.
This new supply of flats will be in addition to those offered under Balloting Exercises for surplus replacement SERS and other flats, as well as the planned release of three Design-and-Build sites in Simei, Toa Payoh and Bedok with some 1,500 flats in the first half of 2008. - CNA/sf
Apr 2, 2008
ReplyDeleteProperty market may stay quiet for up to a year
Home prices, sales could remain weak as US sub-prime concerns linger
By Fiona Chan, Property Reporter
A MONTH ago, property consultants were predicting that the cooling market would pick up after June. That optimism has fast drained away.
Consultants now expect home prices and sales to remain weak for up to a year from now, after official estimates yesterday confirmed that price growth was tapering off.
'We can expect residential prices to continue weakening over the next 12 months', in the light of the United States sub-prime debacle and an expected US recession, said Jones Lang LaSalle (JLL).
Other consultancies, such as CB Richard Ellis Research, believe price growth will slow further in the second quarter, to '1 per cent or 2 per cent'.
Home sales are also plunging as buyers retreat - and they are expected to stay low as sellers dig in their heels to wait out the slowdown.
New home sales were likely to have dropped in the first quarter to one of the lowest levels ever, second only to those recorded during the Sars period.
In the secondary market, sales have fallen to 2005 levels, according to estimates from Savills Singapore.
Mid-tier private properties on the city fringe, such as in Novena, Toa Payoh, Marine Parade and Queenstown, are likely to be hardest hit by falling buyer demand.
These areas saw the biggest slowdown in price growth in the first 10 weeks of the year, suggesting that prices in these regions may be peaking, said JLL.
Buyers in these areas have shallower pockets and are more sensitive to market sentiment, it added.
In the HDB segment, prices have stabilised at about $50,000 cash over valuation or less, said Mr Eugene Lim, assistant vice-president at ERA Realty Network.
'Resale flats priced higher than that take much longer to sell or may not sell at all.'
Phillip Securities Research, meanwhile, aired concerns over the 'huge supply' of homes due to be completed in the next two years.
Supply is 'expected to exceed the demand from buyers and result in a slide in local property prices from 2010', it said.
HDB plans to release another 5,000 new build-to-order flats in the next six months. There are also 64,900 private homes in the pipeline, of which 90 per cent will be completed by 2011, while 60 per cent have yet to be sold.
Most experts believe, however, that confidence and demand will return by year-end - as long as the Singapore economy stays robust.
'Sellers now take a while to sell their homes, but there are still buyers,' said Mr Eric Cheng, the executive director of HSR property group.
'Last year, it took maybe a month to sell a home. Now, it takes two months. But in 2000 or 2002, it took a year,' he said.
Cash over valuation for my area has dropped from quite a bit from the ridiculous high at one point. (Highest I heard was ~200,000 over valuation)
ReplyDeleteNow how can we reduce the valuations themselves...
Compared to HK, Singapore's residential highrise blocks are pretty low. I wonder why ... not that I'm crazy for living on the 50th level ...
ReplyDeleteHK started earlier with their highrises. We're getting there...
ReplyDeleteHK Engineers are also much better Engineers. So they dare to build more daringly. SG Engineers are inexperienced in comparison. We've never designed for typhoon, or large freeze-thaw cycles, or building on hillsides, sea-spanning bridges etc.
Apr 5, 2008
ReplyDeleteStill bullish on Singapore property
DESPITE the US subprime crisis, which will have a cyclical impact, Liew Mun Leong remains bullish on Singapore's property market in the medium term.
'Main street America is suffering from the sins and mistakes of Wall Street,' he says. 'And when main street gets hit, that will affect Asia, we can't run away from it.'
However, Singapore's property market has some strong underpinnings, he maintains. Most importantly, the drivers of Singapore's property market have changed in recent years. 'The rise in property prices since 2002 is no longer due to domestic policy changes such as the liberalisation of CPF and the HDB sub-sale policy.
'It is driven by the remaking of Singapore. Singapore as a global city, as a gateway to Asia, the integrated resorts, plus the displacement demand from en-bloc sales.'
The change in the number and profile of foreign buyers is also notable, he points out. 'In the past foreign buyers were mainly from Malaysia and Indonesia. But now, there are big buyers from at least 12 countries.'
The proportion of foreign buyers for private properties has also risen from 13.7 percent of the total in 1996 to 25 per cent in 1997. And the number of foreign professionals coming to live in Singapore has tripled over that period, as has foreign direct investment.
At the same time, the affordability of private residential properties as measured by mortgage payments as a percentage of household income has improved, going from around 46 per cent to 36 per cent.
And then Mr. Liew points to the big picture: 'Singapore has 700 sq km, with 4.5 million people. The population is projected to grow to more than 6 million, but the city cannot grow. If we reclaim another 11 per cent we'll be in international waters already.'
'Another point, I tell foreigners. Compare putting $5 million in a house in Singapore with putting $5 million in a house in, say, Bangkok or Jakarta. In Singapore, the government provides so much support in the form of infrastructure. What infrastructure support would you get in Bangkok or Jakarta? This is an important issue when you buy property. Investors realise this.
'So, if you analyse all the fundamentals, Singapore as a global city is a winning formula. And I'm not saying this because I'm selling property.'
Interesting answer ... my curiosity is piqued ... creates a lot more questions than it answers ... you open to create separate thread to discuss it?
ReplyDeleteThat's why its easier for a HK Engineer to come over and work in Singapore than it is for a Singapore Engineer to go and work in HK, proficiency in Cantonese aside.
ReplyDeleteCoincidently, I'm slowly being sucked into helping out a small consulting firm here who's bosses are HK Engineers but place themselves here as alternative design specialists, selling their competencies to contractors who want to re-propose better, lighter, easier, quicker, more efficient designs compared to the local consultant's designs. I was in their office just yesterday night to review drawings and I must say, there is a certain confidence (arrogance?) in their attitudes towards their own designs vs. local Engineer designs, and the whole office atmosphere is that they can squeeze out an improvement on anyone's design anytime. Its the same with Japanese Engineers who come here. They talk down to SG Engineers.
Apr 9, 2008
ReplyDeletePrices of high-end condos starting to fall as sales dwindle
Downward trend may continue for next few quarters, experts predict
By Fiona Chan, Property Reporter
HOME prices are starting to fall, as several high-end properties begin to feel the squeeze of retreating buyers.
Sales of Singapore's most expensive condominiums - all the rage last year - have dwindled to just a trickle this year.
And with plunging sales, prices have also started to dip, although official figures have yet to reflect this trend.
Early signs of the slide lie in the handful of caveats filed involving many luxury projects in the first quarter. These showed prices fell from the previous quarter, in some cases by up to 20 per cent.
In Districts 9 to 11, Singapore's creme de la creme of residential locations covering Orchard, Holland and Bukit Timah, average prices have fallen by about 30 per cent since the beginning of the year, according to caveats.
They dropped to an average of $1,564 per sq ft (psf) between January and March from $2,023 psf in the preceding three months.
In luxury island enclave Sentosa Cove, almost all condos posted drops in average psf prices, ranging from 2 per cent for the Marina Collection to 23 per cent for The Azure.
Property experts say this could be because luxury home buyers are now selecting only the most competitively priced properties.
'Market activity is very slow now, so any transactions that do take place are likely to be from people who have found attractive buys,' said Mrs Ong Choon Fah, the executive director at property firm DTZ Debenham Tie Leung.
She said high-end properties in the traditional prime districts were more dependent on investor buying, so they could be more affected by the current global credit crunch and weaker sentiment.
'A lot of people who bought luxury homes are also 'specuvestors', so they may be happy making just a small profit and selling quickly,' Mrs Ong explained.
The Government estimated last week that private home prices continued to climb in the first three months of the year, albeit at a slower pace. They rose 4.2 per cent, down from 6.8 per cent in the previous three months.
In the priciest segment, the core central region, the price gain dropped to 4.4 per cent from 7.5 per cent in the previous quarter. This region covers Districts 9 to 11, the Marina Bay area and Sentosa.
Anecdotal evidence from property insiders and caveats lodged, however, showed that prices at many projects fell rather than rose this year. At Scotts Square in Scotts Road, only two units have been sold so far this year - at an average price of $3,700 psf, down from $4,000 psf for 42 units in last year's fourth quarter.
Similarly, at The Oceanfront @ Sentosa Cove, the most recent deals were in February, where three units were sold at $1,720 to $1,751 psf. Just six months before that, 15 units were sold at an average price of $2,480 psf.
Other high-profile, pricey condos, such as the Marina Bay Residences and The Marq on Paterson Hill, have yet to see a single caveat lodged this year.
But the story is not all bad. The Orchard Residences, which holds the title of Singapore's most expensive condo, has sold only one unit this year - but at $4,700 psf, higher than most of its other sales.
Other older condos in areas such as Cavenagh or Balmoral may also be trading at higher prices from their previously low base, pushing up the overall prices for the whole district, suggested Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.
But he said the price index for high-end homes may be under pressure in the next two quarters, now that 'everyone wants a bargain'.
'You only need developers to start giving discounts or people starting to buy lower-floor units instead of penthouses. That will push the index down and put pressure on prices.'
I do expect a rebound in the near future, especially by 2010. I just hope the enbloc craze will end when people realise they're selling their homes at a price that would not give them anything similar. 99-year lease properties enbloc make sense, freehold? not unless it's in dismal conditions.
ReplyDeleteIt was such a welcome change dealing with Singapore housing agent as they takes the sensible approach of letting the houses sell themselves and find out what you are really after. http://www.yoursingaporepropertyagent.com
ReplyDeleteHi,
ReplyDeleteWe at the Contractor Mortgage Company have spent a lot of time dealing with mortgage lenders at senior level, and as a result, we are able to help our clients obtain contractor mortgages that are similar to a mainstream mortgage.
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