Monday, June 30, 2008
About this Blog
"trouble with spore property market is too many ppl are here to make money, rather than spend money ... but someone has to want those properties at that kind of prices for self-consumption .. otherwise, the speculative element is too great to support the market when sentiment dives... "
Minister Mah Bow Tan has also pointed out that the private property market is made of "speculators, investors and home-buyers" and now the even less predictable, specuvestors. Unless the (New) HDB market which sees real demand, the private property market is more unstable and more prone to sharp fluctuations in prices as enviromental factors change.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Private Property Market Speculation Makes Demand Unpredictable
A forumer wrote this:"trouble with spore property market is too many ppl are here to make money, rather than spend money ... but someone has to want those properties at that kind of prices for self-consumption .. otherwise, the speculative element is too great to support the market when sentiment dives... "
Minister Mah Bow Tan has also pointed out that the private property market is made of "speculators, investors and home-buyers" and now the even less predictable, specuvestors. Unless the (New) HDB market which sees real demand, the private property market is more unstable and more prone to sharp fluctuations in prices as enviromental factors change.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Sunday, June 29, 2008
About this Blog
Name: Kovan Residences
Tenure: 99-year leasehold
Address: Situated next to Kovan MRT
Units: 512
Price: $850-900 psf range.
Launch date: June 2008
Description: Situated next to Kovan MRT Station, an outfit controlled by UOB-Kay Hian star stockbroker pair Han Seng Juan and David Loh Kim Kang is getting ready to release its 512-unit condo.
Developer: Centurion Kovan
Name: Clover by the Park
Tenure: 99-year leasehold
Address: Bishan Street 22/Street 25
Units: 616
Price: $750 per sq ft (psf) on average
Launch date: 20 June 2008
Description:two 39-storey blocks, facilities include a 50m lap pool, a jacuzzi pool and fitness stations. The units range in size from 1,216 sq ft for a three-bedder to 3,498 sq ft for a split-level penthouse with five bedrooms.
Developer: Sim Lian
Name: OLA Residences@Mountbatten
Tenure: freehold
Address: 839 Mountbatten Road
Units: 50
Price: $1,250 psf on average
Launch date: July 5 2008
Description: Near Katong Shopping Centre.The units vary in size from 732 sq ft for a one-bedder plus study to 2,164 sq ft for a four-bedder. There are nine penthouses that range from 1,258 sq ft to 3,208 sq ft. Most units have private lifts.
Developer: Lian Beng Group
Name: The Amery
Tenure: freehold
Address: Telok Kurau Lorong K
Units: 74
Price: $860 psf on average
Launch date: 21 June 2008
Description: Units range from 1,313 sq ft for a three-bedder to 2,379 sq ft for a penthouse.
Deveoper: Sim Lian Group
According to URA official data, as at first quarter of 2008, there were about 67,700 private residential units in the pipeline, of which about 56,500 new private housing units are expected to be completed between 2008 and 2011. About 42,700 units of the supply in the pipeline (or 63 per cent) have not been sold by developers yet.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Private Properties in the Pipeline: New Condo Launches in 2008
Here are some details on new condo launches to keep watch:Name: Kovan Residences
Tenure: 99-year leasehold
Address: Situated next to Kovan MRT
Units: 512
Price: $850-900 psf range.
Launch date: June 2008
Description: Situated next to Kovan MRT Station, an outfit controlled by UOB-Kay Hian star stockbroker pair Han Seng Juan and David Loh Kim Kang is getting ready to release its 512-unit condo.
Developer: Centurion Kovan
Name: Clover by the Park
Tenure: 99-year leasehold
Address: Bishan Street 22/Street 25
Units: 616
Price: $750 per sq ft (psf) on average
Launch date: 20 June 2008
Description:two 39-storey blocks, facilities include a 50m lap pool, a jacuzzi pool and fitness stations. The units range in size from 1,216 sq ft for a three-bedder to 3,498 sq ft for a split-level penthouse with five bedrooms.
Developer: Sim Lian
Name: OLA Residences@Mountbatten
Tenure: freehold
Address: 839 Mountbatten Road
Units: 50
Price: $1,250 psf on average
Launch date: July 5 2008
Description: Near Katong Shopping Centre.The units vary in size from 732 sq ft for a one-bedder plus study to 2,164 sq ft for a four-bedder. There are nine penthouses that range from 1,258 sq ft to 3,208 sq ft. Most units have private lifts.
Developer: Lian Beng Group
Name: The Amery
Tenure: freehold
Address: Telok Kurau Lorong K
Units: 74
Price: $860 psf on average
Launch date: 21 June 2008
Description: Units range from 1,313 sq ft for a three-bedder to 2,379 sq ft for a penthouse.
Deveoper: Sim Lian Group
According to URA official data, as at first quarter of 2008, there were about 67,700 private residential units in the pipeline, of which about 56,500 new private housing units are expected to be completed between 2008 and 2011. About 42,700 units of the supply in the pipeline (or 63 per cent) have not been sold by developers yet.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
In Singapore, retrenchment rose in the first quarter. The report said about 2,274 persons were laid off from work compared to 1,966 in the previous quarter. Based on the preliminary estimates, the manufacturing sector had the highest retrenchment due to softness in electronics sector, with about 1,500 persons being laid off from work. This was followed by the service sector, with a total of 500 persons being retrenched.
Starbucks to cut up to 12000 jobs, close 600 stores - 1 july 2008
Siemens to cut 17,200 jobs, 4% of it staff - june 2008
Retrenchment Watch
A watchful eye on retrenchmentIn Singapore, retrenchment rose in the first quarter. The report said about 2,274 persons were laid off from work compared to 1,966 in the previous quarter. Based on the preliminary estimates, the manufacturing sector had the highest retrenchment due to softness in electronics sector, with about 1,500 persons being laid off from work. This was followed by the service sector, with a total of 500 persons being retrenched.
Starbucks to cut up to 12000 jobs, close 600 stores - 1 july 2008
Siemens to cut 17,200 jobs, 4% of it staff - june 2008
About this Blog
S'pore stocks - down but not out
Rough ride expected ahead, but counter-inflationary stocks or those that can ride rising oil prices could offer opportunities
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Stock Market Watch
STI is widely expected to trade within the range of 2800 - 3200.S'pore stocks - down but not out
Rough ride expected ahead, but counter-inflationary stocks or those that can ride rising oil prices could offer opportunities
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Saturday, June 28, 2008
About this Blog
Here is the news report from Today:
S’porean consumers most confident: Survey
The latest results of a twice-yearly survey released yesterday show that consumers in Singapore are the most optimistic in the Asia-Pacific region about the economic outlook for the second half of this year. ...That confidence has been reflected in the strong 7.5-per-cent jump in retail sales in Singapore in April despite record-high inflation, with robust spending seen across most segments
Today, June 27, 2008
It leads one to wonder if such optimism is well-justified or a lack of foresight.
(You may say, "there you go again, the dooms day talk" but cautioning property buyers is the very reason for this blog. Believe me, it does get tiresome for me too to go on and on coaxing people to be careful. Like I said in another blog post: "Your property investment may be the sole determinant of your financial success in life" and it's just so important that you don't make any grave mistake in buying a property.)
Singapore economic data are nothing as optimistic as Singaporeans. For one thing, Singapore's May factory output fell 5.7%, much more than expected, providing more evidence that slowing demand in U.S. and Europe is hurting Singapore economy. Here are some headlines to sound the alarm:
SINGAPORE, June 26 (Reuters)
Singapore's May factory output unexpectedly fell 5.7 percent from April after seasonal adjustments, providing more evidence that slowing demand in U.S. and Europe was hurting Asian manufacturers.
Singapore Factory Production Down 12.8% (Agence France-Presse, 2008 )
Biomedical sector down 55.1% "Production in May dropped 12.8% compared to the same month last year, largely due to a contraction in the biomedical manufacturing cluster," said the EDB. The sharp plunge in biomedical output was due mainly to the pharmaceuticals segment which shrank 58.2% because a different batch of ingredients was produced. Agence France-Presse, 2008
经济师大跌眼镜 - zaobao 26 June 2008
5月制造业产值远比预期差 继4月份令人意外的疲弱数字之后，我国的5月份制造业产值再度远比预期的疲弱。
The general consensus among analysts is that situation is likely to worsen in the second half of this year.
So why's Singaporeans celebrating ?
It seems it's not just the Great Singapore Sales, the buying spree is back in the property market too.
About the flood of 99-year leasehold condo launches over the weekends like Centurion Kovan, Kovan Residences, Clover by the Park, Dakota Residences etc; some forumers have these warnings:
"New 99 LH price is above 1996's peak price but old 99 LH still below .. it goes to show 99 LH really depreciate in value quickly over time .. 99 LH bad investment option. "
"Not only that. Govt will not guarantee a renewal or top-up for the lease term once it expires. Sentiment will be weak towards this type of property."
"Developers are smart ... they're going to launch all the 99 LH first which are expensive for them to hold ... they said that prices have been dropped but actually the prices are lower simply because they're 99 LH. People who buy 99 LH at $900 to $1000 psf will utterly regret it ..their price will be the first to plunge in a market crash "
Singapore property price will ultimately hinge on the economic growth of Singapore. Before committing your life-savings and more to a property, do pay close attention to the development on the economic front. So far, the global crisis only looks worse each day.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Singapore Economy Worsening But Singaporeans Most Optimistic about Economic Outlook
A survey shows that Singaporeans are the most optimistic in the Asia-Pacific region about the economic outlook for the second half of this year.Here is the news report from Today:
S’porean consumers most confident: Survey
The latest results of a twice-yearly survey released yesterday show that consumers in Singapore are the most optimistic in the Asia-Pacific region about the economic outlook for the second half of this year. ...That confidence has been reflected in the strong 7.5-per-cent jump in retail sales in Singapore in April despite record-high inflation, with robust spending seen across most segments
Today, June 27, 2008
It leads one to wonder if such optimism is well-justified or a lack of foresight.
(You may say, "there you go again, the dooms day talk" but cautioning property buyers is the very reason for this blog. Believe me, it does get tiresome for me too to go on and on coaxing people to be careful. Like I said in another blog post: "Your property investment may be the sole determinant of your financial success in life" and it's just so important that you don't make any grave mistake in buying a property.)
Singapore economic data are nothing as optimistic as Singaporeans. For one thing, Singapore's May factory output fell 5.7%, much more than expected, providing more evidence that slowing demand in U.S. and Europe is hurting Singapore economy. Here are some headlines to sound the alarm:
SINGAPORE, June 26 (Reuters)
Singapore's May factory output unexpectedly fell 5.7 percent from April after seasonal adjustments, providing more evidence that slowing demand in U.S. and Europe was hurting Asian manufacturers.
Singapore Factory Production Down 12.8% (Agence France-Presse, 2008 )
Biomedical sector down 55.1% "Production in May dropped 12.8% compared to the same month last year, largely due to a contraction in the biomedical manufacturing cluster," said the EDB. The sharp plunge in biomedical output was due mainly to the pharmaceuticals segment which shrank 58.2% because a different batch of ingredients was produced. Agence France-Presse, 2008
经济师大跌眼镜 - zaobao 26 June 2008
5月制造业产值远比预期差 继4月份令人意外的疲弱数字之后，我国的5月份制造业产值再度远比预期的疲弱。
The general consensus among analysts is that situation is likely to worsen in the second half of this year.
So why's Singaporeans celebrating ?
It seems it's not just the Great Singapore Sales, the buying spree is back in the property market too.
About the flood of 99-year leasehold condo launches over the weekends like Centurion Kovan, Kovan Residences, Clover by the Park, Dakota Residences etc; some forumers have these warnings:
"New 99 LH price is above 1996's peak price but old 99 LH still below .. it goes to show 99 LH really depreciate in value quickly over time .. 99 LH bad investment option. "
"Not only that. Govt will not guarantee a renewal or top-up for the lease term once it expires. Sentiment will be weak towards this type of property."
"Developers are smart ... they're going to launch all the 99 LH first which are expensive for them to hold ... they said that prices have been dropped but actually the prices are lower simply because they're 99 LH. People who buy 99 LH at $900 to $1000 psf will utterly regret it ..their price will be the first to plunge in a market crash "
Singapore property price will ultimately hinge on the economic growth of Singapore. Before committing your life-savings and more to a property, do pay close attention to the development on the economic front. So far, the global crisis only looks worse each day.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Friday, June 27, 2008
About this Blog
"The price of HDB flats are going up by leaps and bounds, for instance. What is being done by PAP? Actually someone (a taxi driver) told me this might well be a cunning strategy of the PAP to force young married couples to live with their parents or in-laws so that they will take care of them in their old age instead of the PAP govt. It makes sense."
HDB Flat Price Up Leaps and Bounds: Bitterness brewing among young couples
In a comment found in this blog post - Diary of A Singaporean Mind - is this bitter complain about soaring price of HDB:"The price of HDB flats are going up by leaps and bounds, for instance. What is being done by PAP? Actually someone (a taxi driver) told me this might well be a cunning strategy of the PAP to force young married couples to live with their parents or in-laws so that they will take care of them in their old age instead of the PAP govt. It makes sense."
One wonders how long more will such bitterness go on brewing before we see serious political repercussions. Hopefully, the government will address it before any such it.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
About this Blog
Stupid Genius: The meaning of subsidy:
"HDB has always given us Singaporeans the opportunity to own flats in a subsidised rate. So nice of them. But with the rising price of the flats, there had been complaints about the subsidy that HDB gives. Someone from HDB say that the flats are subsidised based on market rates."
May also want to read:
History of Singapore Property 1960 to 2008
When to Buy, When Not to by
HDB Subsidy Based On Market Rates
Many Singaporeans have expressed their unhappiness over the way HDB provides housing subsidy based on market rates. Here is a typical example:Stupid Genius: The meaning of subsidy:
"HDB has always given us Singaporeans the opportunity to own flats in a subsidised rate. So nice of them. But with the rising price of the flats, there had been complaints about the subsidy that HDB gives. Someone from HDB say that the flats are subsidised based on market rates."
May also want to read:
History of Singapore Property 1960 to 2008
When to Buy, When Not to by
About this Blog
The guru rants...: HDB first appointment: "HDB first appointment
on the 28th of jan, we went to HDB for our 1st appointment. i took UPA leave for that day. we met abg malek at mac at toa payoh at around 9 plus. talked for a while and then we went in about 10am. we waited for the makcik and her agent. then we took a number and waited on the 2nd floor. then we were called to a counter and signed some documents. after that we waited some more to meet up with a HDB officer.
when it was our turn, we went in and the officer did not ask us much. he just took our details and when we wanted to have the 2nd appointment earlier, his face turns like an asshole. abg malek did not help much either. he did not say much. only the other agent tried to talk to the guy. our agent accepts it just like that...no bargaining or anything....so fed-up.
after that, we went to see the lawyer. the lawyer not in so the secretary handled our case. she took our particulars and papers and we signed more documents. we are asking the lawyer to try to make the 2nd appointment a bit earlier but do not know how it turns out.
really excited to see how everything turns out....can't wait for the letter to arrive."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Buying a HDB Flat HDB first appointment
Just for the first-time HDB flat buyer, here's a first person account of his first HDB appointment.The guru rants...: HDB first appointment: "HDB first appointment
on the 28th of jan, we went to HDB for our 1st appointment. i took UPA leave for that day. we met abg malek at mac at toa payoh at around 9 plus. talked for a while and then we went in about 10am. we waited for the makcik and her agent. then we took a number and waited on the 2nd floor. then we were called to a counter and signed some documents. after that we waited some more to meet up with a HDB officer.
when it was our turn, we went in and the officer did not ask us much. he just took our details and when we wanted to have the 2nd appointment earlier, his face turns like an asshole. abg malek did not help much either. he did not say much. only the other agent tried to talk to the guy. our agent accepts it just like that...no bargaining or anything....so fed-up.
after that, we went to see the lawyer. the lawyer not in so the secretary handled our case. she took our particulars and papers and we signed more documents. we are asking the lawyer to try to make the 2nd appointment a bit earlier but do not know how it turns out.
really excited to see how everything turns out....can't wait for the letter to arrive."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
The Art of Subsidizing Housing in Singapore: "Market Subsidy NOT EQUAL TO NO LOSS
One of my relatives bought a flat after 6 years she realised that a similar flat now cost $80k less than hers. Her flat which was based on the market subsidy when she bought is now below the market price.
MOST EXPENSIVE PUBLIC HOUSING IN THE WORLD
I think it comes as no surprise to anyone that our subsidised HDB flats are the most expensive public housing in the world. More expensive that in countries where incomes are far higher. Thanks to the market subsidy that we all receive, we should all consider ourselves lucky to be able to own affordable housing paid with loans stretching over 25 years.
This subsidized housing is also part of the reason why many Singaporeans will have very little CPF when they hit age 55 and have to work until they are 80 years old. Think about that, market subsidised housing that helps to motivate you to work longer and harder.....a uniquely Singapore phenomena."
Personally, I'm not into government bashing, for the sole reason that I don't think it is one bit constructive. Looking at the current property market, has it not been the existence of HDB, home buyers needing a home desperately would be totally at the mercy of the developers, is it not?
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
HDB: MOST EXPENSIVE PUBLIC HOUSING IN THE WORLD ?
Just chanced upon this blog post that got me thinking ...The Art of Subsidizing Housing in Singapore: "Market Subsidy NOT EQUAL TO NO LOSS
One of my relatives bought a flat after 6 years she realised that a similar flat now cost $80k less than hers. Her flat which was based on the market subsidy when she bought is now below the market price.
MOST EXPENSIVE PUBLIC HOUSING IN THE WORLD
I think it comes as no surprise to anyone that our subsidised HDB flats are the most expensive public housing in the world. More expensive that in countries where incomes are far higher. Thanks to the market subsidy that we all receive, we should all consider ourselves lucky to be able to own affordable housing paid with loans stretching over 25 years.
This subsidized housing is also part of the reason why many Singaporeans will have very little CPF when they hit age 55 and have to work until they are 80 years old. Think about that, market subsidised housing that helps to motivate you to work longer and harder.....a uniquely Singapore phenomena."
Personally, I'm not into government bashing, for the sole reason that I don't think it is one bit constructive. Looking at the current property market, has it not been the existence of HDB, home buyers needing a home desperately would be totally at the mercy of the developers, is it not?
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Do you understand all the CPF rules?: "Only at the final appointment to complete the sale in late September, did I learn that the HDB and CPF Board do not take into account the big amount of CPF funds my brother used to buy the flat when computing his estate's share of the sale proceeds. Because he is dead and has no CPF account, that money is treated as if it did not exist."
For property buyers utilising their CPF for the payment of their HDB flat, you should refer to the CPF rules with regard to such policy.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Paying HDB with CPF: Know the CPF Rules
The following blog post was an account of how money paid for a HDB flat was nullified when the account holder died cause the CPF account ceases.Do you understand all the CPF rules?: "Only at the final appointment to complete the sale in late September, did I learn that the HDB and CPF Board do not take into account the big amount of CPF funds my brother used to buy the flat when computing his estate's share of the sale proceeds. Because he is dead and has no CPF account, that money is treated as if it did not exist."
For property buyers utilising their CPF for the payment of their HDB flat, you should refer to the CPF rules with regard to such policy.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Did the PM mention the old flats in Hougang and Potong Pasir?: "Common sense dictates that since the flats in these 2 wards are amongst the oldest in Singapore, it must be their turn for the “sprucing up” seen all over that “Google earthesque” map of Singapore that PM referred to so frequently?
But , I did not hear the magic words of Hougang and Potong Pasir."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Old HDB Flats in Hougang and Potong Pasir No Upgrading, even as Ponggol@21 Gets all the attention
"Old HDB Flats in Hougang and Potong Pasir No Upgrading, even as Ponggol@21 gets all the attention" lamented a resident in the following blog post:Did the PM mention the old flats in Hougang and Potong Pasir?: "Common sense dictates that since the flats in these 2 wards are amongst the oldest in Singapore, it must be their turn for the “sprucing up” seen all over that “Google earthesque” map of Singapore that PM referred to so frequently?
But , I did not hear the magic words of Hougang and Potong Pasir."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
HDB bans cats - government body chronically misconceived: "Not all residents like pets, or are comfortable with neighbours keeping pets. HDB has allowed one dog of an approved breed to be kept in an HDB flat. The approved breeds of dogs are the smaller dogs which are generally more manageable. Please click here for the list of approved breeds of dogs. Cats are not allowed to be kept in HDB flats. HDB also allows flat owners to keep other pet animals such as fish, hamsters, rabbits, birds, etc which generally do not cause nuisance to the neighbouring residents."
For pet owners, you may want to check on HDB rules on keeping pets in HDB flat.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
HDB Policy On Pets in HDB Flats
A cat-lover expressed her indignant over HDB policy on pets in HDB flats in the following blog post:HDB bans cats - government body chronically misconceived: "Not all residents like pets, or are comfortable with neighbours keeping pets. HDB has allowed one dog of an approved breed to be kept in an HDB flat. The approved breeds of dogs are the smaller dogs which are generally more manageable. Please click here for the list of approved breeds of dogs. Cats are not allowed to be kept in HDB flats. HDB also allows flat owners to keep other pet animals such as fish, hamsters, rabbits, birds, etc which generally do not cause nuisance to the neighbouring residents."
For pet owners, you may want to check on HDB rules on keeping pets in HDB flat.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Yuhui's Blogger: Rejected ST Forum letter: "Unfair of HDB to demand $18k back for its mistake": "This incident reeks of heavy-handedness and coercion. It is unfair of HDB to demand the money back for three reasons:
It was HDB's mistake in the first place. So why is it forcing its former tenant to pay for its mistake?
The incident happened in 2003. That is longer than necessary for HDB to realise and investigate its mistake, especially for such a large amount of money.
Mdm Lee is a senior citizen living off her savings. It is unlikely that she can return the money in time and will probably be forced into debt by borrowing from others. The article even states that she may be forced to crawl back to HDB to rent a stall. Yet it is not her fault to be in this predicament in the first place."
The episode caused me to think what 's HDB corporate image in the Publics' eyes ?
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
What 's HDB Corporate Image in the Publics' eyes ?
The following blog post describes an incident in which HDB has by mistake placed $18K into the account of an elderly hawker. For any such problem, I think person involved should visit HDB Head Quarter at the Toa Payoh HDB hub or do an internet search of "www hdb gov com sg" on related issue.Yuhui's Blogger: Rejected ST Forum letter: "Unfair of HDB to demand $18k back for its mistake": "This incident reeks of heavy-handedness and coercion. It is unfair of HDB to demand the money back for three reasons:
It was HDB's mistake in the first place. So why is it forcing its former tenant to pay for its mistake?
The incident happened in 2003. That is longer than necessary for HDB to realise and investigate its mistake, especially for such a large amount of money.
Mdm Lee is a senior citizen living off her savings. It is unlikely that she can return the money in time and will probably be forced into debt by borrowing from others. The article even states that she may be forced to crawl back to HDB to rent a stall. Yet it is not her fault to be in this predicament in the first place."
The episode caused me to think what 's HDB corporate image in the Publics' eyes ?
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Letter from HDB: HDB consistently incurs losses selling new flats: "What I would like is for the government (either the 'profitable' entities like SLA or URA) to come clean and let the public know how much profits are stashed away in their books or transferred to the government as capital gains since Day One. We do not want to hear HDB's deficit; rather, we'd like to hear the SLA's or URA's surpluses."
Sentiment like that is getting increasingly louder as property price continues to surge upwards. Logically speaking, one would expect subsidised public housing to be priced at a affordable level of the low income group. Singapore's HDB may have set a totally different definition: Subsidised housing means a discount from the market price. At a time when market price is sky-rocketing, such a methold of computing housing subsidy can make even the lowest priced basic housing unaffordable to the low income group.
May also want to read:
HDB Contributes to Singapore Record High Inflation
HDB Income Ceiling For Buying HDB Flats Not Pro-Family
HDB Resale Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
HDB Subsidies: HDB Housing Subsidised ?
There have been numerous complains among Singaporeans about HDB housing being to expensive, the manner which subsidies are given for HDB housing based on market rate is not justifiable, and the way HDB computes its lossess due to these subsidies lacks transparency. The following blog post is such an example:Letter from HDB: HDB consistently incurs losses selling new flats: "What I would like is for the government (either the 'profitable' entities like SLA or URA) to come clean and let the public know how much profits are stashed away in their books or transferred to the government as capital gains since Day One. We do not want to hear HDB's deficit; rather, we'd like to hear the SLA's or URA's surpluses."
Sentiment like that is getting increasingly louder as property price continues to surge upwards. Logically speaking, one would expect subsidised public housing to be priced at a affordable level of the low income group. Singapore's HDB may have set a totally different definition: Subsidised housing means a discount from the market price. At a time when market price is sky-rocketing, such a methold of computing housing subsidy can make even the lowest priced basic housing unaffordable to the low income group.
May also want to read:
HDB Contributes to Singapore Record High Inflation
HDB Income Ceiling For Buying HDB Flats Not Pro-Family
HDB Resale Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Fragrance
"Budget hotels
-mass market residential properties
Budget hotels are booming across singapore, i believe there will be strong demand for budget hotel rooms from 2007 - 2010 and after the IR opens, there should be even stronger demand.
However, the mass market residential properties have lost its glowing future thanks to the credit crunch and the undertone of fear that has firmly taken root. we can only monitor and make our best guess how the future will be for property in singapore.
4 for 1 share bonus proposed.
Founder owns 72.67% and has constantly bought back shares from the open market."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Developer Fragrance Mass Market Residential Properties Outlook Subdued
Stock watch excerpted from: The Singapore Stock Market:Fragrance
"Budget hotels
-mass market residential properties
Budget hotels are booming across singapore, i believe there will be strong demand for budget hotel rooms from 2007 - 2010 and after the IR opens, there should be even stronger demand.
However, the mass market residential properties have lost its glowing future thanks to the credit crunch and the undertone of fear that has firmly taken root. we can only monitor and make our best guess how the future will be for property in singapore.
4 for 1 share bonus proposed.
Founder owns 72.67% and has constantly bought back shares from the open market."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Here are the reports:
HDB to launch new site at Toa Payoh for tender under DBSS
(Channel NewsAisa - 26 Jun 2008)
The site, located at Lorong 1A Toa Payoh, will be the sixth site to be offered under the scheme.
6th Design, Build and Sell site up for sale in Toa Payoh
(Business Times - 27 Jun 2008)
30% of units built must be equivalent to 4-room or smaller HDB flats
Consultants agree that the launch price of the development is not likely to be more than that of the recently launched City View @ Boon Keng, a DBSS site awarded in May for $233.74 psf ppr.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Good Property Investment Strategy: HDB as Entry-Property
HDB launch DBSS at Toa Payoh - Compare City View@Boon Keng
Well, even if property prices haven't yet plunged, at least you can look forward to more choices as you wait. Consultants think that this Toa Payoh DBSS is unlikely to be priced above that of City View@Boon Keng which until today still have substantial unsold units despite being grossly over-subscribed at its launch.Here are the reports:
HDB to launch new site at Toa Payoh for tender under DBSS
(Channel NewsAisa - 26 Jun 2008)
The site, located at Lorong 1A Toa Payoh, will be the sixth site to be offered under the scheme.
6th Design, Build and Sell site up for sale in Toa Payoh
(Business Times - 27 Jun 2008)
30% of units built must be equivalent to 4-room or smaller HDB flats
Consultants agree that the launch price of the development is not likely to be more than that of the recently launched City View @ Boon Keng, a DBSS site awarded in May for $233.74 psf ppr.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Good Property Investment Strategy: HDB as Entry-Property
Thursday, June 26, 2008
About this Blog
Best Home Loans: HDB:
"HDB's rates are cheapest - HDB's 2.6 per cent concessionary rate loans are cheaper than any bank rates. They also have these 4 advantages:
a. HDB is considered to be more helpful should you hit on hard times and default on your home loan.
a. HDB is considered to be more helpful should you hit on hard times and default on your home loan.
b. HDB adjusts interest rates slowly. This is helpful when rates are rising, as they are now.
c. HDB loans give flexibility. It is easy to take an HDB loan then switch to a bank loan. But you cannot take a bank loan and later refinance it with an HDB concessionary rate loan.
d. CPF rules require that bank borrowers pay 5 per cent of an HDB flat's purchase price in cash (from Jan 1, 2006). HDB loans do not have this cash requirement."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
HDB Housing Loans Best Compare to Banks Mortgage: Cheap & Compassionate
If you're looking for a home loan for your HDB flat, you'll be interested to read this post:Best Home Loans: HDB:
"HDB's rates are cheapest - HDB's 2.6 per cent concessionary rate loans are cheaper than any bank rates. They also have these 4 advantages:
a. HDB is considered to be more helpful should you hit on hard times and default on your home loan.
a. HDB is considered to be more helpful should you hit on hard times and default on your home loan.
b. HDB adjusts interest rates slowly. This is helpful when rates are rising, as they are now.
c. HDB loans give flexibility. It is easy to take an HDB loan then switch to a bank loan. But you cannot take a bank loan and later refinance it with an HDB concessionary rate loan.
d. CPF rules require that bank borrowers pay 5 per cent of an HDB flat's purchase price in cash (from Jan 1, 2006). HDB loans do not have this cash requirement."
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Wednesday, June 25, 2008
About this Blog
The tender for the site attracted 6 bids, all on the low side. Top bid is from Frasers Centrepoint at $270 per sq ft per plot ratio, much lower than the $350 psf of market expectation.
2 nearby condo sites - Blossoms @ Woodleigh and Parc Mondrian were sold out last year.
Recent caveats lodged for the 240-unit Blossoms @ Woodleigh have hovered between $6xx psf and $8xx psf.
The 100-units in Parc Mondrian were sold for between $650 psf and $720 psf.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Woodleigh condo site awarded to Frasers Centrepoint
The 1.08 ha Woodleigh Close site near Potong Pasir MRT station was launched in April.The tender for the site attracted 6 bids, all on the low side. Top bid is from Frasers Centrepoint at $270 per sq ft per plot ratio, much lower than the $350 psf of market expectation.
2 nearby condo sites - Blossoms @ Woodleigh and Parc Mondrian were sold out last year.
Recent caveats lodged for the 240-unit Blossoms @ Woodleigh have hovered between $6xx psf and $8xx psf.
The 100-units in Parc Mondrian were sold for between $650 psf and $720 psf.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
This trend", in my opinion, is likely to continue especially now with the government's announcement of the Jurong Lakeside district development into a key commercial region which naturally will add a great deal of value to the properties here in the west. The latest GLS also include a white site in Jurong East which shows the priority the government is giving to the development of the Jurong Lakeside district.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
HDB Resale Trends: West Regions See Highest Price Increase
While small 3-room HDB flats in the central region continues to command the highest price, it's HDB flats in the western region of Singapore that saw the highest price increase across the board for the typical family unit (who needs a HDB flat of size 4-rm and above); as shown by the table from HDB below:| Regions | Percentage Change inRPI (Resale Price Index) | |||
| 3R (31%) | 4R (38%) | 5R (23%) | Exec (8%) | |
| Northern | 9% | 21% | 23% | 19% |
| North-Eastern | 22% | 20% | 24% | 20% |
| Eastern | 15% | 16% | 16% | 25% |
| Western | 24% | 32% | 26% | 29% |
| Central | 30% | 11% | 11% | 7% |
This trend", in my opinion, is likely to continue especially now with the government's announcement of the Jurong Lakeside district development into a key commercial region which naturally will add a great deal of value to the properties here in the west. The latest GLS also include a white site in Jurong East which shows the priority the government is giving to the development of the Jurong Lakeside district.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Healthy weekend home sales as attractive pricing draws buyers (Business Times - 24 Jun 2008)
Price levels set below those at nearby units launched recently or not yet completed.
.. ‘Buyers will bite if you price your developments below recently launched or yet-to-be completed projects nearby and about 10 to 15 per cent above older properties in the vicinity,’ said Savills Singapore’s director of business development and marketing, Mr Ku Swee Yong. ...
Subsales carve out bigger slice of home deals (Business Times - 24 Jun 2008)
In some popular projects, average subsale prices slipped by up to 5% in the first five months
JLL's head of research (SE Asia) Chua Yang Liang expects the percentage of subsales to continue to increase till end-2008 before some high-profile projects receive their Temporary Occupation Permit (TOP). Property market watchers are keeping tabs on the potential unwinding of positions by speculators and specuvestors as the scale of such transactions could lead to a much-predicted slide in subsale prices that could ripple through the broader market. 'The danger for the market lies with short-term speculators who decide to hold back in anticipation of a higher gain but only to be caught up by insufficient investment breath. This could result in a later surge in fire sales by these speculators, or in their returning units back to developers, who in turn may be hard put to find buyers at a time when sentiment may be weak,' he argues.
Savills Singapore director (marketing and business development) Ku Swee Yong says that agents have a long list of units in high-profile condos available for the subsale market. 'But asking prices have yet to come down to a level that would be attractive to potential buyers. So we're not seeing that many subsale transactions,' he says.
For buyers who've been standing on the sidelines all this while, the question now is: Will you wait for a market correction (down ~20%) or a market crash (down ~40%) ?
That'd depend on your risk-appetite and how urgently you need to buy a property.
For investors like me who have their homes and who have already made their money in the last property peak, there's really no urgency to buy at all. People like that are in a good position to wait for the ultimate market crash, which may not come though, but what the heck, our biggest risk is to make less money from property. If a market crash does come, which is probable in view of the deteriorating global economic turmoil, people like us will be handsomely rewarded.
For home buyers who need to buy a property urgently and would like to go property-hunting, here's the cue: You're most likely to get the best bargain in a distress sale ! One more advice, do bring along with you an impartial party, preferably one with substantial experience in buying properties, on your property hunt.
May also want to read:
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
History of Singapore Property 1960 to 2008
Property Market Correction Ahead
It seems the buzz is back in the private property market and buyers are seeing lower price tags too.Healthy weekend home sales as attractive pricing draws buyers (Business Times - 24 Jun 2008)
Price levels set below those at nearby units launched recently or not yet completed.
.. ‘Buyers will bite if you price your developments below recently launched or yet-to-be completed projects nearby and about 10 to 15 per cent above older properties in the vicinity,’ said Savills Singapore’s director of business development and marketing, Mr Ku Swee Yong. ...
Subsales carve out bigger slice of home deals (Business Times - 24 Jun 2008)
In some popular projects, average subsale prices slipped by up to 5% in the first five months
JLL's head of research (SE Asia) Chua Yang Liang expects the percentage of subsales to continue to increase till end-2008 before some high-profile projects receive their Temporary Occupation Permit (TOP). Property market watchers are keeping tabs on the potential unwinding of positions by speculators and specuvestors as the scale of such transactions could lead to a much-predicted slide in subsale prices that could ripple through the broader market. 'The danger for the market lies with short-term speculators who decide to hold back in anticipation of a higher gain but only to be caught up by insufficient investment breath. This could result in a later surge in fire sales by these speculators, or in their returning units back to developers, who in turn may be hard put to find buyers at a time when sentiment may be weak,' he argues.
Savills Singapore director (marketing and business development) Ku Swee Yong says that agents have a long list of units in high-profile condos available for the subsale market. 'But asking prices have yet to come down to a level that would be attractive to potential buyers. So we're not seeing that many subsale transactions,' he says.
For buyers who've been standing on the sidelines all this while, the question now is: Will you wait for a market correction (down ~20%) or a market crash (down ~40%) ?
That'd depend on your risk-appetite and how urgently you need to buy a property.
For investors like me who have their homes and who have already made their money in the last property peak, there's really no urgency to buy at all. People like that are in a good position to wait for the ultimate market crash, which may not come though, but what the heck, our biggest risk is to make less money from property. If a market crash does come, which is probable in view of the deteriorating global economic turmoil, people like us will be handsomely rewarded.
For home buyers who need to buy a property urgently and would like to go property-hunting, here's the cue: You're most likely to get the best bargain in a distress sale ! One more advice, do bring along with you an impartial party, preferably one with substantial experience in buying properties, on your property hunt.
May also want to read:
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
History of Singapore Property 1960 to 2008
Tuesday, June 24, 2008
About this Blog
With soaring building material and labour costs, one would naturally expect property price to rise. At first sight, the "Increase building costs=Increase property price" argument seems almost commonsensical.
A forumer was quick to rebuke such argument, "You got it wrong. Selling prices are not determined by construction cost. They are determined by market forces. The developer will sell at the maximum that buyers can afford and are willing to pay, which has been considerably more than building cost. But buyers have already hit the limit of affordability and good sense, there's no point raising prices when there's no one rich or foolish enough to buy. "
Indeed, the "Increase building costs=Increase property price" argument is looking at the supply-side of the property market.
The property market, like all other markets, all made up of supply and demand.
If you look at inflation from the demand side, you'd see that affordability for property, especially for private property, has declined; and market sentiment has declined too. This basically reduces the volume of demand for private property as evident from the dwindling sales for the last 2 quarters.
A very crucial factor that works in favour of the demand-side is the Singapore government's commitment to home-ownership through providing affordable HDB housing.
HDB pricing policy limits the impact of rising construction costs as reported in the Business Times below:
HDB pricing policy limits impact of rising costs
CONSTRUCTION costs for Housing & Development Board (HDB) flats have increased but the impact on buyers is likely to be limited, due to HDB's pricing policy and cost-control measures. Speaking to the media at HDB yesterday, National Development Minister Mah Bow Tan said that 'construction costs have gone up significantly both for the building of private as well as public housing'. According to him, construction costs may have risen 20 to 30 per cent in general.
The Business Times on Jun 11, 2008
In a forum reply last year, HDB stated that the prices of new HDB flats are based on the market prices of resale HDB flats, not on construction costs. On top of the affordable HDB pricing principle, the government also provides various subsidies for first-time HDB buyers making it all the more attractive for first-time buyers to have a HDB as their entry property.
As such, while market forces may work towards "Increase building costs=Increase property price", this is likely to be cushioned by the HDB pricing policy. However, one would still expect new HDB price to trend upwards from its current level, while price correction is expected for the private property.
May also want to read:
HDB as Entry-Property: Prudent Property Investment Strategy
HDB-Private Properties: Prices Trend in Opposite Direction
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
Impact of Increase building costs on property prices
The fact is: Building costs have gone up 20-30% from a year ago.With soaring building material and labour costs, one would naturally expect property price to rise. At first sight, the "Increase building costs=Increase property price" argument seems almost commonsensical.
A forumer was quick to rebuke such argument, "You got it wrong. Selling prices are not determined by construction cost. They are determined by market forces. The developer will sell at the maximum that buyers can afford and are willing to pay, which has been considerably more than building cost. But buyers have already hit the limit of affordability and good sense, there's no point raising prices when there's no one rich or foolish enough to buy. "
Indeed, the "Increase building costs=Increase property price" argument is looking at the supply-side of the property market.
The property market, like all other markets, all made up of supply and demand.
If you look at inflation from the demand side, you'd see that affordability for property, especially for private property, has declined; and market sentiment has declined too. This basically reduces the volume of demand for private property as evident from the dwindling sales for the last 2 quarters.
A very crucial factor that works in favour of the demand-side is the Singapore government's commitment to home-ownership through providing affordable HDB housing.
HDB pricing policy limits the impact of rising construction costs as reported in the Business Times below:
HDB pricing policy limits impact of rising costs
CONSTRUCTION costs for Housing & Development Board (HDB) flats have increased but the impact on buyers is likely to be limited, due to HDB's pricing policy and cost-control measures. Speaking to the media at HDB yesterday, National Development Minister Mah Bow Tan said that 'construction costs have gone up significantly both for the building of private as well as public housing'. According to him, construction costs may have risen 20 to 30 per cent in general.
The Business Times on Jun 11, 2008
In a forum reply last year, HDB stated that the prices of new HDB flats are based on the market prices of resale HDB flats, not on construction costs. On top of the affordable HDB pricing principle, the government also provides various subsidies for first-time HDB buyers making it all the more attractive for first-time buyers to have a HDB as their entry property.
As such, while market forces may work towards "Increase building costs=Increase property price", this is likely to be cushioned by the HDB pricing policy. However, one would still expect new HDB price to trend upwards from its current level, while price correction is expected for the private property.
May also want to read:
HDB as Entry-Property: Prudent Property Investment Strategy
HDB-Private Properties: Prices Trend in Opposite Direction
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
房地产后市走势 证券行看法不一
尽管市区重建局日前发布的数字显示上个月卖出的新私宅单位猛飙了55％至441个单位，而政府表示在下半年也会减少售地，各家证券行仍然对本地房地产后市的看法不一，其中联昌国际研究 (CIMB Bank Research) 与华侨银行投资研究 (OCBC Investment Research) 继续对私宅走势持中立立场，但星展集团研究 (DBS Group Research)和金英证券研究 (Kim Eng Securities Research) 却大致上持乐观态度。
联昌国际研究说，楼花转售(sub-sale)市场的一些私宅交易价格比去年9月的水平低了20％到40％，然而新住宅价格却依然保持平稳。考虑到截至目前为止只推出2100个新单位，明年可能出现过剩的新供应恐会对新私宅价格造成压力，同时潜在的滞胀(stagflation)环境也将不利于中高档房地产的走势，因此联昌国际对本地房地产业抱着中立态度，并预测住宅市场短期而言会缺乏方向。 -Zaobao 23 June 2008
Translation:
Banks Divided Over Property Market Outlook
Despite that URA's data has shown a sharp increase of 55% in property sales with 441 units sold, and the government has expressed that land sales will be reduced in the second half of the year; banks remain divided over the Singapore property market outlook. While CIMB Bank Research and OCBC Investment Research remain neutral over the private property market outlook, DBS Group Research and Kim Eng Securities Research are bullish.
According to CIMB Research, subsales of some private properties are 20% to 40% lower than the prices in september last year. However, prices of new properties remain firm. Considering that only 2100 units have been launched so far, we may see an over-supply next year that may put (downward) pressure on the prices of new properties. Furthemore, the enviromental factor of stagflation is not favourable to the high end property market outlook too. As such, CIMB remains neutral over the property market outlook, and believes that the property market would lack direction in the short term. -Zaobao 23 June 2008
Analysts’ views mixed over H2 GLS list
While some read the moderate supply as a plus for property prices, others feel it reaffirms the weak market sentiment...
Deutsche Bank analysts have pegged a ‘buy’ call to City Developments and Keppel Land, but add that they continue to prefer Reits over the developers.
Credit Suisse analyst Tricia Song says that she continues to see negative headwinds for the Singapore property sector in the near term, given potentially rising interest rates, construction costs, supply completions and falling rents. She is keeping her ‘underweight’ call on the property sector, with ‘underweight’ ratings for City Developments and Wing Tai, but ‘neutral’ calls for CapitaLand, Allgreen and Keppel Land.
For Nomura, the sound supply outlook for residential units - which the Urban Redevelopment Authority estimates to be 59,545 completed units between end-2007 and end-2011 - is ‘unnerving’. It hence retained its bearish stance on the residential sector where it foresees further downside pressures in asset prices from marginal speculative sellers. It has a ‘neutral’ rating on City Developments and Keppel Land and a ‘reduce’ rating on CapitaLand. - Business Times - 23 Jun 2008
May also want to read:
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
History of Singapore Property 1960 to 2008
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Analysts Mixed Over Singapore Property Outlook
If you think you're confused over what to make out of the Singapore property market outlook, you're not alone. The experts, with all their statistical data and analysis, are divided, and as confused, over the Singapore property outlook.房地产后市走势 证券行看法不一
尽管市区重建局日前发布的数字显示上个月卖出的新私宅单位猛飙了55％至441个单位，而政府表示在下半年也会减少售地，各家证券行仍然对本地房地产后市的看法不一，其中联昌国际研究 (CIMB Bank Research) 与华侨银行投资研究 (OCBC Investment Research) 继续对私宅走势持中立立场，但星展集团研究 (DBS Group Research)和金英证券研究 (Kim Eng Securities Research) 却大致上持乐观态度。
联昌国际研究说，楼花转售(sub-sale)市场的一些私宅交易价格比去年9月的水平低了20％到40％，然而新住宅价格却依然保持平稳。考虑到截至目前为止只推出2100个新单位，明年可能出现过剩的新供应恐会对新私宅价格造成压力，同时潜在的滞胀(stagflation)环境也将不利于中高档房地产的走势，因此联昌国际对本地房地产业抱着中立态度，并预测住宅市场短期而言会缺乏方向。 -Zaobao 23 June 2008
Translation:
Banks Divided Over Property Market Outlook
Despite that URA's data has shown a sharp increase of 55% in property sales with 441 units sold, and the government has expressed that land sales will be reduced in the second half of the year; banks remain divided over the Singapore property market outlook. While CIMB Bank Research and OCBC Investment Research remain neutral over the private property market outlook, DBS Group Research and Kim Eng Securities Research are bullish.
According to CIMB Research, subsales of some private properties are 20% to 40% lower than the prices in september last year. However, prices of new properties remain firm. Considering that only 2100 units have been launched so far, we may see an over-supply next year that may put (downward) pressure on the prices of new properties. Furthemore, the enviromental factor of stagflation is not favourable to the high end property market outlook too. As such, CIMB remains neutral over the property market outlook, and believes that the property market would lack direction in the short term. -Zaobao 23 June 2008
Analysts’ views mixed over H2 GLS list
While some read the moderate supply as a plus for property prices, others feel it reaffirms the weak market sentiment...
Deutsche Bank analysts have pegged a ‘buy’ call to City Developments and Keppel Land, but add that they continue to prefer Reits over the developers.
Credit Suisse analyst Tricia Song says that she continues to see negative headwinds for the Singapore property sector in the near term, given potentially rising interest rates, construction costs, supply completions and falling rents. She is keeping her ‘underweight’ call on the property sector, with ‘underweight’ ratings for City Developments and Wing Tai, but ‘neutral’ calls for CapitaLand, Allgreen and Keppel Land.
For Nomura, the sound supply outlook for residential units - which the Urban Redevelopment Authority estimates to be 59,545 completed units between end-2007 and end-2011 - is ‘unnerving’. It hence retained its bearish stance on the residential sector where it foresees further downside pressures in asset prices from marginal speculative sellers. It has a ‘neutral’ rating on City Developments and Keppel Land and a ‘reduce’ rating on CapitaLand. - Business Times - 23 Jun 2008
May also want to read:
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
History of Singapore Property 1960 to 2008
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Monday, June 23, 2008
About this Blog
Ho Bee Investment and NTUC Choice Homes have sold 80 units at Dakota Residences over the weekend. The developers have so far released 122 units in the 348-unit project at an average price of $970 per square foot - lower than the $1,000 to $1,100 psf Ho Bee had indicated in June 2007 when the developers emerged as the top bidders for the 99-year leasehold site.....
Ho Bee executive director Ong Chong Hua said, ‘It shows that if you price your project right, there are still buyers. There’s quite a bit of pent-up demand.'.."We’ll review it but any price adjustment will be moderate. Sentiment is still fragile. If you’re too aggressive in raising prices, you run the risk of stalling the sales momentum.’
Business Times - 23 June 2008
达高轩预售卖出三分二单位
虽然最近的楼市相当淡静，但上周末预售的达高轩(Dakota Residences)，却还是成功卖出了大约80个单位，即三分之二的预售单位 ....
和美集团发言人昨晚向本报证实....达高轩能够在这个淡市中取得不错的销售成绩，主要是因为其地点有相当大的发展潜能。
“它距离地铁环线(circle line)中的达科达(Dakota)地铁站只有大约5分钟距离，而且刚刚公布的2008年总蓝图显示，加冷河畔将被赋予新生命，打造成高级濒水住宅及休闲商业区，建有滨海住宅、酒店、办公楼、零售与娱乐设施。”
Zaobao - 23 June 2008
Translation:
Dakota Residences Two-thirds Sold
Despite the subdued property makret, Dakota Residences sold 80 units during its launch last weekend, that's two-thirds of the units launched ...
A spokeman for Ho Bee said that Dakota Residences was able to achieve quite good sales mainly due to its promising potential.
"It's about 5-mins to the Circle Line MRT and also, according to the 2008 master plan, the Kallang River district will be rejuvenated and is sited for development into a luxurious waterfront living, commercial district, ......."
Zaobao - 23 June 2008
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Dakota Residences Sold 80 units with Price Lowered - Sentiment still fragile
Sales of Dakota Residences encouragingHo Bee Investment and NTUC Choice Homes have sold 80 units at Dakota Residences over the weekend. The developers have so far released 122 units in the 348-unit project at an average price of $970 per square foot - lower than the $1,000 to $1,100 psf Ho Bee had indicated in June 2007 when the developers emerged as the top bidders for the 99-year leasehold site.....
Ho Bee executive director Ong Chong Hua said, ‘It shows that if you price your project right, there are still buyers. There’s quite a bit of pent-up demand.'.."We’ll review it but any price adjustment will be moderate. Sentiment is still fragile. If you’re too aggressive in raising prices, you run the risk of stalling the sales momentum.’
Business Times - 23 June 2008
达高轩预售卖出三分二单位
虽然最近的楼市相当淡静，但上周末预售的达高轩(Dakota Residences)，却还是成功卖出了大约80个单位，即三分之二的预售单位 ....
和美集团发言人昨晚向本报证实....达高轩能够在这个淡市中取得不错的销售成绩，主要是因为其地点有相当大的发展潜能。
“它距离地铁环线(circle line)中的达科达(Dakota)地铁站只有大约5分钟距离，而且刚刚公布的2008年总蓝图显示，加冷河畔将被赋予新生命，打造成高级濒水住宅及休闲商业区，建有滨海住宅、酒店、办公楼、零售与娱乐设施。”
Zaobao - 23 June 2008
Translation:
Dakota Residences Two-thirds Sold
Despite the subdued property makret, Dakota Residences sold 80 units during its launch last weekend, that's two-thirds of the units launched ...
A spokeman for Ho Bee said that Dakota Residences was able to achieve quite good sales mainly due to its promising potential.
"It's about 5-mins to the Circle Line MRT and also, according to the 2008 master plan, the Kallang River district will be rejuvenated and is sited for development into a luxurious waterfront living, commercial district, ......."
Zaobao - 23 June 2008
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Sunday, June 22, 2008
About this Blog
市区公寓 老外新欢 - zaobao, 22 Jun 2008
近一两年来，坐落在金融区或者金融区边缘的共管公寓，已陆续完工，住户也纷纷迁入。
从夜晚的灯火和悬挂了窗帘的窗户来看，海天大厦(The Icon)和瓅之尚都(Citylights) 等完工半年至一年的新市区公寓，都已经取得超过一半的住用率。这些市区公寓不靠近学校，也没有湿巴刹，到底吸引怎样的租户？
市区公寓由于不靠近学校，附近也没有湿巴刹，所以这里的住户跟一般住宅区的住户有些不同。在这里较少看到孩子还在上学的家庭，而外国人的比例相当高。
English Translation of the above excerpt:
Judging from the number of lit apartments and those with curtains, it seems more than half of the units at The Icon and Citylights are already occupied. These city fringe condos are not near schools or wet markets, so what are their attractions ?
These city condos are not near schools or wet markets, so the residents here are different from those in other residential area. You see few children, instead expats ratio is relatively high.
While sale prices have dipped for these 99-year leasehold condos, they still command good rental yields.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
City Fringe Condos like Citylights and The Icon Hot Among Singapore Expats
Zaobao (Singapore's Chinese morning papers) reported that city fringe condos like the The Icon and Citylights are in demand among expats:市区公寓 老外新欢 - zaobao, 22 Jun 2008
近一两年来，坐落在金融区或者金融区边缘的共管公寓，已陆续完工，住户也纷纷迁入。
从夜晚的灯火和悬挂了窗帘的窗户来看，海天大厦(The Icon)和瓅之尚都(Citylights) 等完工半年至一年的新市区公寓，都已经取得超过一半的住用率。这些市区公寓不靠近学校，也没有湿巴刹，到底吸引怎样的租户？
市区公寓由于不靠近学校，附近也没有湿巴刹，所以这里的住户跟一般住宅区的住户有些不同。在这里较少看到孩子还在上学的家庭，而外国人的比例相当高。
English Translation of the above excerpt:
Judging from the number of lit apartments and those with curtains, it seems more than half of the units at The Icon and Citylights are already occupied. These city fringe condos are not near schools or wet markets, so what are their attractions ?
These city condos are not near schools or wet markets, so the residents here are different from those in other residential area. You see few children, instead expats ratio is relatively high.
While sale prices have dipped for these 99-year leasehold condos, they still command good rental yields.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
If inflation occurs at a time of strong economic growth, one'd expect that argument to be true. But acute inflation coupled by slow economic growth or even recession (now widely known as STAGFLATION) is quite another question.
Stagflation shaves consumers' spending power on both ends: Decrease earnings on one end with slowing economic growth and increase expenditures with soaring food and fuel prices on the other end.
In a situation like that, a rational consumer is likely to channel his limited resources to essentials and cut his spendings on luxuries. It's quite apparent that the property market will be the first and hardest hit if Singapore enters into a stagflation.
NTUC Chief Lim Swee Say has warned that stagflation is the worst case scenario Singapore can face at this time, reported the media yesterday. "Jobs will be lost and wages will stagnate", he pointed out the threat posed.
A forumer expressed his concern about the impact of stagflation on the Singapore property Market,
"Now it's not about demand and supply (in the Singapore property market) anymore. It's about the threat of STAGFLATION to the world, and especially to the tiny economy of Singapore. Come retrenchments, pay freeze and foreigners selling their properties and going home; we'll see more and more people who simply cannot hold on to their properties, especially with banks tightening on borrowings etc.. "
How probable is stagflation here in Singapore?
Let's look at oil price.
Why the surge in oil price ?
G8 has been asking for OPEC to increase supply. OPEC has been blaming the speculators. But really, there are fundamentals that are driving oil price up to its current record high level.
Demand Fundamental: Increase affluence in emerging economies have increased the demand for oil. And who's to say emerging economies are not entitled to the modern livings that the developed countries have been enjoying for a long time?
Supply Fundamental: Firstly, wars in some oil producing countries like Nigeria and Iraq continued to disrupt the supply of oil. Now, there's the added threat of a war in Iran. Secondly, there have been few oil explorations in the past few years and it will take years to have supplies coming from new oil fields. Finally, oil is, as we've been taught in elementary schools, a non-renewable scarce resource. These factors will put limits to how much supply can be increased.
The reality is that we're living in a global economy powered by oil. If oil price continues to remain at the $130 level, it's enough to bring the global economy to its knees. Yet, we've been told that oil price is likely to surge to $200 level. In many countries, oil is still subsidised but as oil price continues to surge, it'd put more and more pressure on the government to remove these subsidies. The inflationary effects will be more and more apparent as these subsides are removed.
Singapore is just a small boat tossing in the seas of the world's economic tsunami. It has to import everything it needs and obviously has no control over inflation. In fact, the Singapore government would its people to see inflation, especially the soaring oil price, as the market determines it; so Singaporeans would not be misguided in any way. Indeed, the threat of stagflation is very real to the small and open economy of Singapore.
May also want to read:
Singapore Property Forum
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Stagflation Impact on Singapore Property Market
There is a strong argument that with inflation, building costs have gone up significantly and one would therefore expect, property price to rise too.If inflation occurs at a time of strong economic growth, one'd expect that argument to be true. But acute inflation coupled by slow economic growth or even recession (now widely known as STAGFLATION) is quite another question.
Stagflation shaves consumers' spending power on both ends: Decrease earnings on one end with slowing economic growth and increase expenditures with soaring food and fuel prices on the other end.
In a situation like that, a rational consumer is likely to channel his limited resources to essentials and cut his spendings on luxuries. It's quite apparent that the property market will be the first and hardest hit if Singapore enters into a stagflation.
NTUC Chief Lim Swee Say has warned that stagflation is the worst case scenario Singapore can face at this time, reported the media yesterday. "Jobs will be lost and wages will stagnate", he pointed out the threat posed.
A forumer expressed his concern about the impact of stagflation on the Singapore property Market,
"Now it's not about demand and supply (in the Singapore property market) anymore. It's about the threat of STAGFLATION to the world, and especially to the tiny economy of Singapore. Come retrenchments, pay freeze and foreigners selling their properties and going home; we'll see more and more people who simply cannot hold on to their properties, especially with banks tightening on borrowings etc.. "
How probable is stagflation here in Singapore?
Let's look at oil price.
Why the surge in oil price ?
G8 has been asking for OPEC to increase supply. OPEC has been blaming the speculators. But really, there are fundamentals that are driving oil price up to its current record high level.
Demand Fundamental: Increase affluence in emerging economies have increased the demand for oil. And who's to say emerging economies are not entitled to the modern livings that the developed countries have been enjoying for a long time?
Supply Fundamental: Firstly, wars in some oil producing countries like Nigeria and Iraq continued to disrupt the supply of oil. Now, there's the added threat of a war in Iran. Secondly, there have been few oil explorations in the past few years and it will take years to have supplies coming from new oil fields. Finally, oil is, as we've been taught in elementary schools, a non-renewable scarce resource. These factors will put limits to how much supply can be increased.
The reality is that we're living in a global economy powered by oil. If oil price continues to remain at the $130 level, it's enough to bring the global economy to its knees. Yet, we've been told that oil price is likely to surge to $200 level. In many countries, oil is still subsidised but as oil price continues to surge, it'd put more and more pressure on the government to remove these subsidies. The inflationary effects will be more and more apparent as these subsides are removed.
Singapore is just a small boat tossing in the seas of the world's economic tsunami. It has to import everything it needs and obviously has no control over inflation. In fact, the Singapore government would its people to see inflation, especially the soaring oil price, as the market determines it; so Singaporeans would not be misguided in any way. Indeed, the threat of stagflation is very real to the small and open economy of Singapore.
May also want to read:
Singapore Property Forum
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Saturday, June 21, 2008
About this Blog
Here's an excerpt of the report:
So far, Singapore's economy has still been enjoying the lingering economic boom of the past few years in the emerging economies. This however may change quickly in the months ahead as Singapore's economy continues to get pounded by the economic turmoils in US and now, in Asia. Optimists who are still holding on to all the rosy plans of the IRs may be caught off-guard by a sudden downturn in Singapore's economy.
Property buyers should exercise exceptional prudence in view of this escalating global inflation which may eventually bring the world's economy to its knees.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Inflation Impact on Global Economy Escalating
First the US Subprime Problem, Now the Emerging Economies are also in trouble as 'investors take flight from the Asian equities as inflation fears mount' reported Straits Times today.Here's an excerpt of the report:
Investors take flight from Asian equities as inflation fears mount
China has taken the largest hit, with funds selling billions' worth of mainland shares
FEARS that rising inflation will choke Asian growth have triggered a dramatic flight of foreign funds out of regional shares. The outflow - a stark reversal of the trend a year ago - is a sign that foreign investors are no longer sold on the Asian boom story, including China's astronomical growth.
Singapore, which attracted nearly half of the net inflow of foreign funds into Asian equity markets in the first five months last year, (Singapore) is another underperformer. Fund managers have sold a net US$229.8 million worth of Singapore equities this year, helping send the benchmark Straits Times Index down 13 per cent since January.
- Straits Times, 21 June 2008.
So far, Singapore's economy has still been enjoying the lingering economic boom of the past few years in the emerging economies. This however may change quickly in the months ahead as Singapore's economy continues to get pounded by the economic turmoils in US and now, in Asia. Optimists who are still holding on to all the rosy plans of the IRs may be caught off-guard by a sudden downturn in Singapore's economy.
Property buyers should exercise exceptional prudence in view of this escalating global inflation which may eventually bring the world's economy to its knees.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Not only do you pay low prices, you'll also be spoilt for choices. The last time this happened in the Singapore property market was 2005 - 2006. I was out property-hunting myself then and I can testify to the choices of beautiful freehold properties at bargain prices you can get at such time. This sort of market condition may come back in the near future as Singapore economy continues to suffer the blows of the global economic turmoil. For those who can wait, opportunities like that look very probable in the next 2-3 years. It's worth waiting for.
When price is low and most people are buying, it's still good time to buy
At least you'll still enjoy the low prices but choices will be increasing limited. The last time this happened was in the early part of 2007. Sellers who were waiting for years for the market to turn around were quite happy to finally unload their properties at fairly low prices but most of these properties are the more inferior old 99-leasehold properties. It's ok to buy if you're just looking for an affordable home but capital appreciation may not be so attractive for these properties.
When price is high and most people are buying, it's time to sell and NOT buy Market condition like that is highly speculative. People keep buying regardless of how ridiculoulsy high price has become because they were out there flipping properties. We saw this in the middle of 2007 in the mass market.
When price is high and most people are NOT buying, it's definitely NOT the time to buy
Some time in the mid 90 when property price was at its peak and sales had started to decline, I told myself, "Since nobody's buying, I should buy cos I should get a bargain". I did buy cos the developers did give me a discount but little did I knew then that price was still very high with the discount. When the reality of paying the mortgage finally hit me, I quickly realised that I was just a smart-alec that had fallen into the "discount-trap" of the developer. I sold the property as quickly as I bought it, for a small profit but what's most important for me was I got back my sleep.
Buying at a time when price is high with few buyers around to take over your "hot-potatoe" (should you need to unload it), is clearly a bad time.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
When to BUY, When NOT to buy
When price is low and most people are NOT buying, it's the best time to buyNot only do you pay low prices, you'll also be spoilt for choices. The last time this happened in the Singapore property market was 2005 - 2006. I was out property-hunting myself then and I can testify to the choices of beautiful freehold properties at bargain prices you can get at such time. This sort of market condition may come back in the near future as Singapore economy continues to suffer the blows of the global economic turmoil. For those who can wait, opportunities like that look very probable in the next 2-3 years. It's worth waiting for.
When price is low and most people are buying, it's still good time to buy
At least you'll still enjoy the low prices but choices will be increasing limited. The last time this happened was in the early part of 2007. Sellers who were waiting for years for the market to turn around were quite happy to finally unload their properties at fairly low prices but most of these properties are the more inferior old 99-leasehold properties. It's ok to buy if you're just looking for an affordable home but capital appreciation may not be so attractive for these properties.
When price is high and most people are buying, it's time to sell and NOT buy Market condition like that is highly speculative. People keep buying regardless of how ridiculoulsy high price has become because they were out there flipping properties. We saw this in the middle of 2007 in the mass market.
When price is high and most people are NOT buying, it's definitely NOT the time to buy
Some time in the mid 90 when property price was at its peak and sales had started to decline, I told myself, "Since nobody's buying, I should buy cos I should get a bargain". I did buy cos the developers did give me a discount but little did I knew then that price was still very high with the discount. When the reality of paying the mortgage finally hit me, I quickly realised that I was just a smart-alec that had fallen into the "discount-trap" of the developer. I sold the property as quickly as I bought it, for a small profit but what's most important for me was I got back my sleep.
Buying at a time when price is high with few buyers around to take over your "hot-potatoe" (should you need to unload it), is clearly a bad time.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
一项全球调查显示，若加入信贷紧缩和高通货膨胀的因素，环球房地产价格暴涨(price boom)的日子已经结束。
Translation:
A study (by the Global Property Guide) shows that due the turmoils of credit crunch and inflation, the world property boom is over.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
World Property Boom Over due to Credit Crunch + Record High Inflation
调查显示 全球房地产涨势接近尾声 - Zaobao News, 21 June 2008一项全球调查显示，若加入信贷紧缩和高通货膨胀的因素，环球房地产价格暴涨(price boom)的日子已经结束。
Translation:
A study (by the Global Property Guide) shows that due the turmoils of credit crunch and inflation, the world property boom is over.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Last year, condo prices went up by 50-100%..Can u say its guided by sentiments or greed ?? Apparently, its the developers and agents who manipulate people to pay such crazy prices...eventually these people are stuck now unable to sell their units ! So, this year, we are going to have multiple problems from all fronts as follows:
(a) US sub-prime crisis blowing out to Asian economies - affecting our exports/economic performance in the next 2 years or more
(b) Oversupply of condos from now till 2011 - more than 60,000 units will TOP at a bad economic period.
(c) Tenancy rate dropping - judging from the current selling price asked and dreamt by owners (eg. 2 bedroom in The Sail asking for S$2 million. an ROI of 5% translated to S$100,000 meaning about $9,000 monthly rental). Any fools will know this is an impossible feat to achieve. Who will rent a 2 bedroom for $9k ??? As such, be prepared for a major SHOCK when all these luxury units TOP . See how much rental can they garner in the current bad economic condition.
(d) Slow down of major economies in US, Europe and even China which is now facing a huge natural calamity in its doorstep. These 3 contribute more than 50% to Singapore exports revenue.
(e) Interest rates starting to pick up - We can see the interest rates picking up steam towards the end of this year to control inflation.
(f) Number of buyers will drop severely by the end of this year - all the buyers who seriously need a home might have already bought their homes. Some foreigners who rented units have also bought to cut down their rental expenses. As such, by end of this year, number of buyers will drop tremendously leaving only a small cream of genuine buyers and cautious investors.
It's very clear Singapore property market is moving towards a major correction towards the end of this year cause by then, we will have a clearer picture on oversupply of condos, on US and Singapore economic health, and on Interest Rate progression.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Singapore Property Correction By Year End
Posted by Sean, 21 June 2008, in the Singapore Property ForumLast year, condo prices went up by 50-100%..Can u say its guided by sentiments or greed ?? Apparently, its the developers and agents who manipulate people to pay such crazy prices...eventually these people are stuck now unable to sell their units ! So, this year, we are going to have multiple problems from all fronts as follows:
(a) US sub-prime crisis blowing out to Asian economies - affecting our exports/economic performance in the next 2 years or more
(b) Oversupply of condos from now till 2011 - more than 60,000 units will TOP at a bad economic period.
(c) Tenancy rate dropping - judging from the current selling price asked and dreamt by owners (eg. 2 bedroom in The Sail asking for S$2 million. an ROI of 5% translated to S$100,000 meaning about $9,000 monthly rental). Any fools will know this is an impossible feat to achieve. Who will rent a 2 bedroom for $9k ??? As such, be prepared for a major SHOCK when all these luxury units TOP . See how much rental can they garner in the current bad economic condition.
(d) Slow down of major economies in US, Europe and even China which is now facing a huge natural calamity in its doorstep. These 3 contribute more than 50% to Singapore exports revenue.
(e) Interest rates starting to pick up - We can see the interest rates picking up steam towards the end of this year to control inflation.
(f) Number of buyers will drop severely by the end of this year - all the buyers who seriously need a home might have already bought their homes. Some foreigners who rented units have also bought to cut down their rental expenses. As such, by end of this year, number of buyers will drop tremendously leaving only a small cream of genuine buyers and cautious investors.
It's very clear Singapore property market is moving towards a major correction towards the end of this year cause by then, we will have a clearer picture on oversupply of condos, on US and Singapore economic health, and on Interest Rate progression.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
The computation is the same for Singaporeans and foreigners.
Property tax is payable in advance every year, in January, for the whole year from January to December.
The prevailing property tax rate is 10% per year.
For owner-occupied residential property, you can claim a concessionary rate of 4% per year by applying to the IRAS here. Note you must apply, the concessionary rate is not automatic.
Property Tax Payable = Prevailing Tax Rate x Annual Value of a property.
The Annual Value of your property is the estimated annual rent of your property as determined by IRAS (Inland Revenue Authority of Singapore), and exclude the rent for furniture, fittings and service charge.
Example on how to estimate your property tax:
Estimated montly rent=$2000
Property Tax Payable = 10% x $2000x12 = $2400
The basis for determining the annual value is the same for let-out, owner-occupied or vacant properties.
You can obtained a valuation online at this IRAS site by paying $2.50.
The AV of your property can be revised whenever market rents for similar properties change and may not reflect the actual rents of your property.
May also want to read:
How to Calculate Rental Yield for Singapore Property
Inland Revenue Authority of Singapore(IRAS): Stamp Duty Calculator
Singapore Property History
How to calculate Stamp Duty for Singapore Property
Calculate Singapore Property Tax and Property Annual Value: Quick & Easy Way
All property owners including HDB flats owners, private property owners and landed property owners; are liable to pay property tax in Singapore.The computation is the same for Singaporeans and foreigners.
Property tax is payable in advance every year, in January, for the whole year from January to December.
The prevailing property tax rate is 10% per year.
For owner-occupied residential property, you can claim a concessionary rate of 4% per year by applying to the IRAS here. Note you must apply, the concessionary rate is not automatic.
Property Tax Payable = Prevailing Tax Rate x Annual Value of a property.
The Annual Value of your property is the estimated annual rent of your property as determined by IRAS (Inland Revenue Authority of Singapore), and exclude the rent for furniture, fittings and service charge.
Example on how to estimate your property tax:
Estimated montly rent=$2000
Property Tax Payable = 10% x $2000x12 = $2400
The basis for determining the annual value is the same for let-out, owner-occupied or vacant properties.
You can obtained a valuation online at this IRAS site by paying $2.50.
The AV of your property can be revised whenever market rents for similar properties change and may not reflect the actual rents of your property.
May also want to read:
How to Calculate Rental Yield for Singapore Property
Inland Revenue Authority of Singapore(IRAS): Stamp Duty Calculator
Singapore Property History
How to calculate Stamp Duty for Singapore Property
Friday, June 20, 2008
About this Blog
The government will release enough land to build about 7,960 private residential units in the second half of this year. ...
Under the latest programme, two new sites will transform the Jurong Lake District and Kallang Riverside into a destination for work, life and play. And as part of the government's drive to open new growth areas, a new white site at Jurong East St 13 has been set aside to kickstart the development of a commercial hub at Jurong Gateway.
..... 40 sites in total for sale in the second half. These comprise 21 residential sites that can yield about 7,960 private residential units, six commercial sites which make up 400,000 square metres gross floor area, 11 hotel sites that can produce 5,750 hotel rooms and two white sites.
- CNA, 19 June 2008
More sites up for sale
..... With the property market showing signs of slowing, the Government’s land sales programme is generally more moderate than last year, when home prices hit new highs. . This is partly because of concerns over a possible looming rush of new supply. As many as 56,500 homes and 11.8 million square feet of office space will be finished by 2011, according to fresh MND data released yesterday. ..
Said :research head at Chesterton International, Mr Colin Tan: “The Government has already moderated its supply, but it probably feels that a little oversupply is good for the market, especially if you need to bring rents down to a more competitive level for the good of Singapore.”
-Today, Friday, June 20, 2008
Govt to offer 13 new land sites in second half
‘The total supply has been assessed to be sufficient to meet the demand for the various types of properties over the medium term,’ said the URA statement. Home prices and office rents in Singapore are cooling after rising to records last year, as a global credit squeeze damped economic growth this year.
Straits Times - 19 Jun 2008
Developers get more wriggle room with H2 land sales
Latest slate sees sharp cut in supply from confirmed list, while that from the reserve list is up
Not one reserve list site in H1 has so far drawn a successful application by a developer. In the face of weak home sales, developers held back from applying for reserve sites. Tight financing for property and a construction bottleneck could see them continue to hold back in H2.
Business Times - 20 Jun 2008
Fewer confirmed Govt sites put up for sale
Chesterton International’s head of research and consultancy, Mr Colin Tan, said the Government is forcing developers to be more reasonable with their pricing by pushing out sites on the confirmed list.
‘While the overall numbers do suggest there is a good chance of a glut occurring, there are also pockets of pent-up residential demand, especially among owner-occupiers.'
Straits Times - 20 Jun 2008
Choice GLS sites could still generate interest
While no sites on the reserve list were triggered from the H1 2008 GLS programme, four non-landed sites on the confirmed list were sold, with a further two sites tendered and pending award.
And compared with the eight sites that were awarded from the H2 2007 GLS programme, of which five were from the confirmed list, it would appear that the global economic slowdown has not stopped developers from buying land, as long as the price is right.
Business Times - 20 Jun 2008
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Government Land Sales GLS Programme 2008 Second Half
Some 7,960 private residential units to be built in second half of 2008The government will release enough land to build about 7,960 private residential units in the second half of this year. ...
Under the latest programme, two new sites will transform the Jurong Lake District and Kallang Riverside into a destination for work, life and play. And as part of the government's drive to open new growth areas, a new white site at Jurong East St 13 has been set aside to kickstart the development of a commercial hub at Jurong Gateway.
..... 40 sites in total for sale in the second half. These comprise 21 residential sites that can yield about 7,960 private residential units, six commercial sites which make up 400,000 square metres gross floor area, 11 hotel sites that can produce 5,750 hotel rooms and two white sites.
- CNA, 19 June 2008
More sites up for sale
..... With the property market showing signs of slowing, the Government’s land sales programme is generally more moderate than last year, when home prices hit new highs. . This is partly because of concerns over a possible looming rush of new supply. As many as 56,500 homes and 11.8 million square feet of office space will be finished by 2011, according to fresh MND data released yesterday. ..
Said :research head at Chesterton International, Mr Colin Tan: “The Government has already moderated its supply, but it probably feels that a little oversupply is good for the market, especially if you need to bring rents down to a more competitive level for the good of Singapore.”
-Today, Friday, June 20, 2008
Govt to offer 13 new land sites in second half
‘The total supply has been assessed to be sufficient to meet the demand for the various types of properties over the medium term,’ said the URA statement. Home prices and office rents in Singapore are cooling after rising to records last year, as a global credit squeeze damped economic growth this year.
Straits Times - 19 Jun 2008
Developers get more wriggle room with H2 land sales
Latest slate sees sharp cut in supply from confirmed list, while that from the reserve list is up
Not one reserve list site in H1 has so far drawn a successful application by a developer. In the face of weak home sales, developers held back from applying for reserve sites. Tight financing for property and a construction bottleneck could see them continue to hold back in H2.
Business Times - 20 Jun 2008
Fewer confirmed Govt sites put up for sale
Chesterton International’s head of research and consultancy, Mr Colin Tan, said the Government is forcing developers to be more reasonable with their pricing by pushing out sites on the confirmed list.
‘While the overall numbers do suggest there is a good chance of a glut occurring, there are also pockets of pent-up residential demand, especially among owner-occupiers.'
Straits Times - 20 Jun 2008
Choice GLS sites could still generate interest
While no sites on the reserve list were triggered from the H1 2008 GLS programme, four non-landed sites on the confirmed list were sold, with a further two sites tendered and pending award.
And compared with the eight sites that were awarded from the H2 2007 GLS programme, of which five were from the confirmed list, it would appear that the global economic slowdown has not stopped developers from buying land, as long as the price is right.
Business Times - 20 Jun 2008
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Govt offers fewer confirmed sale sites in uncertain mkt
THE Government is cutting back on the number of development sites being releasing for outright sale over the next six months. Its move follows poor sales of the 37 sites that have been available since the start of the this year. Only five sites on the confirmed list have been sold while four other plots on this list have yet to be sold or launched. None of the 26 sites on the reserve list have been triggered for tender. These sites go on sale only if a developer makes a minimum bid. -
Bull wrote:
Supply start to cut down. Demand start to shoot up like May sales. In 1-2 month, you will see the effect. many will miss the boat again this round.
Bear wrote:
With the cut to 7,960 available new residential units. It's about 1327 units per month to be out to the market. Looking at the monthly transaction now, it's more then enough. There are also units that developers are holding, that will be more then enough supplies. There are speculators who hold their hot potatoes too or owners who bought new units and need to sell their existing properties when they house is ready with the TOP. Beside cutting price, the sellers will need have other benefits to attract the buyers. If the market remain weak, the housing might drag Singapore into a man-made recession with all the bad news like what happening at the west.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Join the Singapore Property Forum to discuss Smart Buying Tips here.
GLS 2008 - Bull & Bear Views
The Straits Times. June 19, 2008Govt offers fewer confirmed sale sites in uncertain mkt
THE Government is cutting back on the number of development sites being releasing for outright sale over the next six months. Its move follows poor sales of the 37 sites that have been available since the start of the this year. Only five sites on the confirmed list have been sold while four other plots on this list have yet to be sold or launched. None of the 26 sites on the reserve list have been triggered for tender. These sites go on sale only if a developer makes a minimum bid. -
Bull wrote:
Supply start to cut down. Demand start to shoot up like May sales. In 1-2 month, you will see the effect. many will miss the boat again this round.
Bear wrote:
With the cut to 7,960 available new residential units. It's about 1327 units per month to be out to the market. Looking at the monthly transaction now, it's more then enough. There are also units that developers are holding, that will be more then enough supplies. There are speculators who hold their hot potatoes too or owners who bought new units and need to sell their existing properties when they house is ready with the TOP. Beside cutting price, the sellers will need have other benefits to attract the buyers. If the market remain weak, the housing might drag Singapore into a man-made recession with all the bad news like what happening at the west.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Join the Singapore Property Forum to discuss Smart Buying Tips here.
About this Blog
Master Plan 2008 - Forecast of Hot Spots for Growth. It seems so.
The latest GLS (Government Land Sales) programme has included a new white site at Jurong East St 13 has been set aside to kickstart the development of a commercial hub at Jurong Gateway. For property buyers looking at investment property, I've recommended Jurong East commercial zone, rather than Jurong Lakeside, because the large number of potential employments will bring good rental housing demand, not only from the existing International Parks and the commercial areas, but also, from the up and coming New Jurong General Hospital with their healthcare professionals.
The way I see it, the development of this zone is set to accelerate partly to relieve the shortage of commercial property in the CBD areas, and partly as an implementation of the master plan.
May also want to read:
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
Property Investment : Jurong East Lakeside District Good Choice
I've expected the development of Jurong Lakeside district, in particular Jurong East, to get priority, as I've explained in the following post:Master Plan 2008 - Forecast of Hot Spots for Growth. It seems so.
The latest GLS (Government Land Sales) programme has included a new white site at Jurong East St 13 has been set aside to kickstart the development of a commercial hub at Jurong Gateway. For property buyers looking at investment property, I've recommended Jurong East commercial zone, rather than Jurong Lakeside, because the large number of potential employments will bring good rental housing demand, not only from the existing International Parks and the commercial areas, but also, from the up and coming New Jurong General Hospital with their healthcare professionals.
The way I see it, the development of this zone is set to accelerate partly to relieve the shortage of commercial property in the CBD areas, and partly as an implementation of the master plan.
May also want to read:
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Under the pressure of soaring oil and food prices, Singapore's inflation hit 26-year high in May. With increase in fuel prices in the neighbouring countries, Singapore's inflation is expected to continue to rise in the months ahead.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Singapore Inflation Will Continue to Rise in the months ahead
Here's the harsh reality: High food and oil prices are here to stay with Singaporeans.石油及食品价格上升 5月通胀率料再创26年新高 - Zaobao news, 21 June 2008
在高石油及食品价格的推动下，新加坡5月份的通货膨胀率料再创26年的新高，由于邻近国家的燃油价格走高，未来几个月新加坡的通胀率看来会上升
Under the pressure of soaring oil and food prices, Singapore's inflation hit 26-year high in May. With increase in fuel prices in the neighbouring countries, Singapore's inflation is expected to continue to rise in the months ahead.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Thursday, June 19, 2008
About this Blog
Posted by Anonymous, 20 June 2008:
Quote report:
"THE flow of capital into the Asia-Pacific’s real estate market from outside the region is accelerating, a new report on property investment has found.
This is the result of the credit crisis in the United States and Europe, said the report by KPMG, FTSE Group and Asian Public Real Estate Association (Aprea). "
The people who're saying this are in the real estate business .. of course, they'd want to talk up the market .. what do you expect.
Quote report:
"Real estate as an asset class has outshone equities and long-term government bonds over the past decade, providing average returns of 7 per cent to 8 per cent, said the report."
Most people who bought 10 years ago during the 1996 peak are still holding negative assets today in Singapore!
Quote report:
"while returns on real estate investments are expected to decline in most countries, returns in the Asia-Pacific are expected to remain higher than the global average of slightly over 5 per cent for the coming year, it said."
Vietnam's real estate has collapsed, China's also declining, so ???
Quote report:
"Market sentiment in Asia has been hit by the credit crunch and it is unclear when a rebound will occur, but the regional outlook should remain positive, said Aprea’s chief executive officer, Mr Peter Mitchell."
He's contradicting himself - if rebound is unclear, how can that be positive outlook?
Quote report:
"Real estate investment trusts (Reits) are not growth stocks but good defensive stocks and inflation hedges, said Mr Mitchell. Projections show Asia’s Reit market with a capitalisation exceeding US$100 billion (S$136.8 billion) by 2010."
Reits are doing badly. Property stocks have hit 17-yr low.(For Singapore)
Quote report:
"Asian real estate, it said, may be experiencing some short-term pain but will eventually benefit from the credit crunch."
Asia's having a credit crunch too.
Quote report:
"In time, the credit crisis will result in Asia being regarded on a more equal and level-playing field compared to the more mature but struggling markets of the US and Europe.’"
That's for every body to think about..
Join the Singapore Property Forum to discuss Smart Buying Tips here.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Positive Outlook for Asian Real Estate Say Who?
The following post refers to a news report: Positive Outlook for Asian Property published by Straits Times, June 20, 2008 FridayPosted by Anonymous, 20 June 2008:
Quote report:
"THE flow of capital into the Asia-Pacific’s real estate market from outside the region is accelerating, a new report on property investment has found.
This is the result of the credit crisis in the United States and Europe, said the report by KPMG, FTSE Group and Asian Public Real Estate Association (Aprea). "
The people who're saying this are in the real estate business .. of course, they'd want to talk up the market .. what do you expect.
Quote report:
"Real estate as an asset class has outshone equities and long-term government bonds over the past decade, providing average returns of 7 per cent to 8 per cent, said the report."
Most people who bought 10 years ago during the 1996 peak are still holding negative assets today in Singapore!
Quote report:
"while returns on real estate investments are expected to decline in most countries, returns in the Asia-Pacific are expected to remain higher than the global average of slightly over 5 per cent for the coming year, it said."
Vietnam's real estate has collapsed, China's also declining, so ???
Quote report:
"Market sentiment in Asia has been hit by the credit crunch and it is unclear when a rebound will occur, but the regional outlook should remain positive, said Aprea’s chief executive officer, Mr Peter Mitchell."
He's contradicting himself - if rebound is unclear, how can that be positive outlook?
Quote report:
"Real estate investment trusts (Reits) are not growth stocks but good defensive stocks and inflation hedges, said Mr Mitchell. Projections show Asia’s Reit market with a capitalisation exceeding US$100 billion (S$136.8 billion) by 2010."
Reits are doing badly. Property stocks have hit 17-yr low.(For Singapore)
Quote report:
"Asian real estate, it said, may be experiencing some short-term pain but will eventually benefit from the credit crunch."
Asia's having a credit crunch too.
Quote report:
"In time, the credit crisis will result in Asia being regarded on a more equal and level-playing field compared to the more mature but struggling markets of the US and Europe.’"
That's for every body to think about..
Join the Singapore Property Forum to discuss Smart Buying Tips here.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Analysts believe yesterday’s big move was due to intervention by MAS
SHORT-TERM interest rates plunged yesterday to almost hit a year low, causing some analysts to scratch their heads after saying last week the bottom had been reached.
The three-month Singapore interbank offer rate (Sibor) fell 12.5 basis points to 1.25 per cent yesterday - a shade above the year low of 1.24 on April 22.
Analysts say they believe yesterday’s big move was due to intervention by the Monetary Authority of Singapore (MAS), which tried to cap the rise of the Singapore dollar.
‘The fall in the three-month Sibor may have been partly induced by MAS foreign exchange intervention,’ said Citigroup economist Kit Wei Zheng. ‘Our estimates suggest the Sing dollar has hovered at the strong side of the policy band since the start of the week, which has likely triggered MAS intervention.’
The MAS uses the exchange rate and has a strong Singapore dollar policy to fight inflation, which has reached a 26-year high. The Sing dollar rose to $1.36 against the US dollar yesterday, from $1.38 on Monday, said UOB analyst Ng Shing Yi.
But a strong Singapore dollar attracts capital inflows that put pressure on domestic interest rates, which in turn could whip up inflation further.
‘The main downside risk for three-month Sibor is a strong Singapore dollar,’ said Ms Ng. ‘With annual inflation this year likely to reach 6 per cent, MAS would likely prefer a stronger exchange rate, and that would cap Sibor gains.’
Analysts expect more whipsawing movements as MAS fights inflation with its strong Sing dollar policy while other central banks hike interest rates.
‘However I would not overplay that factor too much as I believe MAS will sterilise most of its foreign exchange interventions to moderate or neutralise the resulting downward pressure on interest rates,’ said Citigroup’s Mr Kit.
‘I doubt very much that MAS would want a further plunge in interest rates that could stoke domestic inflation pressure, especially not a time when headline inflation rates are entering uncharted territory.’
Ultimately, a more important determinant of domestic interest rates is probably foreign interest rates - not just US interest rates, but also rates in other economies that are an important part of the currency basket, Mr Kit said.
Ms Ng expects three-month Sibor to reach 1.50 by year-end.
But HSBC economist Robert Prior-Wandesforde sees the rate going in the other direction. ‘We are not expecting a Fed hike before the end of this year and I’m still looking for the three-month Sibor to fall to one per cent over the next few months,’ he said. ‘With MAS thought to keep the Singapore dollar strong, this is encouraging foreign inflows, which in turn are depressing interest rates.’
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Singapore Interest Going Up or Down
Singapore short rates dive, defying expectations - Business Times, 19 Jun 2008Analysts believe yesterday’s big move was due to intervention by MAS
SHORT-TERM interest rates plunged yesterday to almost hit a year low, causing some analysts to scratch their heads after saying last week the bottom had been reached.
The three-month Singapore interbank offer rate (Sibor) fell 12.5 basis points to 1.25 per cent yesterday - a shade above the year low of 1.24 on April 22.
Analysts say they believe yesterday’s big move was due to intervention by the Monetary Authority of Singapore (MAS), which tried to cap the rise of the Singapore dollar.
‘The fall in the three-month Sibor may have been partly induced by MAS foreign exchange intervention,’ said Citigroup economist Kit Wei Zheng. ‘Our estimates suggest the Sing dollar has hovered at the strong side of the policy band since the start of the week, which has likely triggered MAS intervention.’
The MAS uses the exchange rate and has a strong Singapore dollar policy to fight inflation, which has reached a 26-year high. The Sing dollar rose to $1.36 against the US dollar yesterday, from $1.38 on Monday, said UOB analyst Ng Shing Yi.
But a strong Singapore dollar attracts capital inflows that put pressure on domestic interest rates, which in turn could whip up inflation further.
‘The main downside risk for three-month Sibor is a strong Singapore dollar,’ said Ms Ng. ‘With annual inflation this year likely to reach 6 per cent, MAS would likely prefer a stronger exchange rate, and that would cap Sibor gains.’
Analysts expect more whipsawing movements as MAS fights inflation with its strong Sing dollar policy while other central banks hike interest rates.
‘However I would not overplay that factor too much as I believe MAS will sterilise most of its foreign exchange interventions to moderate or neutralise the resulting downward pressure on interest rates,’ said Citigroup’s Mr Kit.
‘I doubt very much that MAS would want a further plunge in interest rates that could stoke domestic inflation pressure, especially not a time when headline inflation rates are entering uncharted territory.’
Ultimately, a more important determinant of domestic interest rates is probably foreign interest rates - not just US interest rates, but also rates in other economies that are an important part of the currency basket, Mr Kit said.
Ms Ng expects three-month Sibor to reach 1.50 by year-end.
But HSBC economist Robert Prior-Wandesforde sees the rate going in the other direction. ‘We are not expecting a Fed hike before the end of this year and I’m still looking for the three-month Sibor to fall to one per cent over the next few months,’ he said. ‘With MAS thought to keep the Singapore dollar strong, this is encouraging foreign inflows, which in turn are depressing interest rates.’
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Singapore Property Blog for Singapore Property Investors and Buyers: About This Blog
What this Singapore property blog IS :- This Singapore property blog looks at the Singapore property market from the perspective of property investors and buyers.
- This Singapore property blog advocates prudence in property investment.
- This Singapore property blog contains the wisdom and firsthand experiences of Singapore property investors.
- This Singapore property blog aims to interpret media news and property information for the benefits of property investors and buyers.
- This Singapore property blogger is a Singapore property investor himself who embraces prudence in his property investment. The blogger understands that people have different appetitte for risk and advise readers to make their own judgement pertaining to the views published in this blog.
What this Singapore property blog contains:
- Property News summary to give the readers a quick update of what's happening in the property market.
- Singapore Property Market Outlook in different market segments including Private Property Outlook, HDB Market Outlook, Rental Market Outlook and Mortgage Rate Outlook.
- Singapore Property Information such as Singapore Property History and Singapore Master Plan.
- Report of views and sentiment on the Singapore Property Market expressed by people in forums, blogs and other venues.
- Property Analysis Tools such as reviews of Singapore Property Price Index Graph Plotter, Singapore Property Online Valuation, How to calculate Rental Yield, Rent-Buy Analysis, Sample Tenancy Agreement.
Tips on Searching this Blog:
- Search engines such as googles and yahoo may have pointed you to the main page but because this blog is updated frequently, the posts on the main page are changed, so you may not find what you are looking for.
- Use the SEARCH BLOG on the top lefthand corner to search the archive quickly.
- Ps leave your comments about any difficulties you may have encountered and how I may improve the blog here. It'll most appreciated. Thank you.
Links to this Blog:
About this Blog
Some manage to factor into contracts the higher risks of price fluctuations
Construction costs have risen across the board by at least about 13 per cent in Singapore in the six months to end-March. And for the residential/ condominium segment, costs have risen even faster, by as much as 16 per cent, according to a report by construction cost consultancy Rider Levett Bucknall (RLB).
Business Times - 18 Jun 2008
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Rising Construction Costs - 16% UP for Building Singapore Condos
Rising construction costs put squeeze on buildersSome manage to factor into contracts the higher risks of price fluctuations
Construction costs have risen across the board by at least about 13 per cent in Singapore in the six months to end-March. And for the residential/ condominium segment, costs have risen even faster, by as much as 16 per cent, according to a report by construction cost consultancy Rider Levett Bucknall (RLB).
Business Times - 18 Jun 2008
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
Bull wrote:
In long term, property is the best investment in Spore. It scored higher than stock, GDP & of couse FD. For last 12 yrs, 1996 to 2008, GDP has growth average 5%/yr, compounded to almost 100% growth for last 12 yrs, but property price index is still below 1996 now, so our property price is not high at current level, more to go. Stock & Property are Inflation Hedge
Bear wrote:
Properties bought in mid 90s are still negative assets ..so it goes to show that you must have the right entry price, .. otherwise don't talk about property is the best investment, you'll just lose more money than stock. At current property, ROI is negative when you take your costs into account, so why buy? You'll just end up sponsoring your tenants to a luxurious living while you slave to pay for it.
Bull wrote:
That is why has to invest property in long term, not speculate or flip. Compared now to 1996, now is the good time to move in as we know property will surpass 1996 & up >100% compared to 1996 price, just a matter of time, likely this will be reached by 2011-12, so from now till 2011-12, there is another >100% of upside.
Bear wrote:
How long term is long term? From 1996 to now is 11 years and still losing money. Add the property price to the mortgage, these people may have paid as much as 200% for their properties, so can property appreciate by that much even 10 years later? Not to mention that properties, especially 99-leasehold, suffer from age-depreciation. On the other hand, those who bought during the property crash between 1998 -2006 are the ones making money from property now. Clearly, smart buyers should wait until the market crash. The risk of a market crash is so much bigger today than 1996.
Bull wrote:
are you sure those bought in 1996 still losing money? Those prime area already 50-100% above 1996 price. Only a small percentage still not recovered, especially HDB. Bear wrote:
Agree with you that some prime areas have gone above 1996 prices but with mortgage added, I'm doubtful that even these properties have brought good returns. Anyway, this market segment is widely expected to crash .. in fact, prices already sliding. Not small percentage at all. Mass market and HDB properties bought in 1996 are all still losing money. They form the highest percentage of the property market.
Join the Singapore Property Forum to discuss Smart Buying Tips here.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Buy Property to hedge against inflation ?
The following are exchanges in the Singapore Property Forum on whether buying property to hedge against inflation today still makes sense.Bull wrote:
In long term, property is the best investment in Spore. It scored higher than stock, GDP & of couse FD. For last 12 yrs, 1996 to 2008, GDP has growth average 5%/yr, compounded to almost 100% growth for last 12 yrs, but property price index is still below 1996 now, so our property price is not high at current level, more to go. Stock & Property are Inflation Hedge
Bear wrote:
Properties bought in mid 90s are still negative assets ..so it goes to show that you must have the right entry price, .. otherwise don't talk about property is the best investment, you'll just lose more money than stock. At current property, ROI is negative when you take your costs into account, so why buy? You'll just end up sponsoring your tenants to a luxurious living while you slave to pay for it.
Bull wrote:
That is why has to invest property in long term, not speculate or flip. Compared now to 1996, now is the good time to move in as we know property will surpass 1996 & up >100% compared to 1996 price, just a matter of time, likely this will be reached by 2011-12, so from now till 2011-12, there is another >100% of upside.
Bear wrote:
How long term is long term? From 1996 to now is 11 years and still losing money. Add the property price to the mortgage, these people may have paid as much as 200% for their properties, so can property appreciate by that much even 10 years later? Not to mention that properties, especially 99-leasehold, suffer from age-depreciation. On the other hand, those who bought during the property crash between 1998 -2006 are the ones making money from property now. Clearly, smart buyers should wait until the market crash. The risk of a market crash is so much bigger today than 1996.
1. Compared now to 1996, the current global uncertainty is even more threatening. The current soaring oil price will eventually bring the whole world's economy to its kneel. Add that to the US subprime and credit crunch crisis, you can see it's big trouble ahead. In 1997, it's just the Asian financial crisis. Today, the threat of another Asian financial crisis is growing.
2. Developers are now squeezed by higher borrowing costs and higher building costs. They'll have to lower price to move sales if buyers keep waiting.
3. Supply is increasing, demand is decreasing. No matter how developers hold back launches and how buiding costs delay completion, all these properties will come on stream within the next 2-3 years.
4. Asking prices of many new launches are actually higher than those in 1996. So if those people are still losing money, what make you think you can make money when you're paying even more ?
5. You can go ahead and pay the high price now. But ask yourselves what are chances of finding buyers who will pay you even higher prices?
Bull wrote:
are you sure those bought in 1996 still losing money? Those prime area already 50-100% above 1996 price. Only a small percentage still not recovered, especially HDB. Bear wrote:
Agree with you that some prime areas have gone above 1996 prices but with mortgage added, I'm doubtful that even these properties have brought good returns. Anyway, this market segment is widely expected to crash .. in fact, prices already sliding. Not small percentage at all. Mass market and HDB properties bought in 1996 are all still losing money. They form the highest percentage of the property market.
Join the Singapore Property Forum to discuss Smart Buying Tips here.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
Wednesday, June 18, 2008
About this Blog
Posted by: Sean, 18 June 2006 in this Singapore Property Forum thread.
If property price can throw up like stone last year, I am sure the stone will also drop the same this year.
The fact is Singapore economy is going to slow down significantly by the end of this year, and this will definitely affect property prices. URA has already announced that 65,000 new condo units will TOP from 2008-2011, bringing in huge supply to the already dying property market. Imagine only 500 units sold every month but 65,000 new condos on the pipeline.
In May, we have 440 units sold but this is pathetic sale taking into account lots of new condo launches last month. Imagine we have over 20,000 real estate agents but every month, Singapore sells less than 500 units. Is this number sustainable ???? Can real estate agencies maintain their business or file for bankruptcy ??
Prices will adjust accordingly when the economy goes down. As the saying goes, what goes up will come down eventually just like the stone that you throw up. This is basic economic fundamentals.
The US economy will soon start to raise interest rates to tackle its inflationary problems, and this will bring the world economy into a recession. Soon, we will witness our mortgage rates going up chasing one after another. In 1998, interest rates went up to almost double digit (9%), making the cost of loan unbearable. What makes you think this is not possible in the future ??
And with over 65,000 new units TOP from now till 2011, we will see an abundant number of vacant units as tenants numbers will dwindle. Rental rates will significantly deteriorate. When ROI drops, property prices will follow suit. By then, will property prices increase or decrease ??? Only fools will continue to subscribe to the belief that property prices will pick up.
Very soon, the economic tsunami will come to our shores. We will witness a huge economic downturn in Singapore as we are mainly export-based economy unlike our neighbors in Asia which have a large internal economy. We will lose jobs, lose foreigners, lose our competitiveness.
And with neighboring countries catching up with us, its silly if we still persist on with our current extremely high property prices. My bet is property prices will deteriorate significantly by the end of this year due to the TOP of signature condos like The Sail, RiverGate, Watermark, Cosmopolitan and condos at Sentosa Cove etc which will bring in roughly 5,000 new luxury units to the market. These condos rental performance will set a gauge on property performance in the near future. I doubt everyone can get $10,000 a month rental for a 2-bedroom condo in Sentosa Cove in order to achieve more than 5% ROI. If this is not possible, then be prepared for an eventual downturn.
Join the Singapore Property Forum to discuss Smart Buying Tips here.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
When is Singapore Property going to crash ?
Singapore Property To Deteriorate By Year EndPosted by: Sean, 18 June 2006 in this Singapore Property Forum thread.
If property price can throw up like stone last year, I am sure the stone will also drop the same this year.
The fact is Singapore economy is going to slow down significantly by the end of this year, and this will definitely affect property prices. URA has already announced that 65,000 new condo units will TOP from 2008-2011, bringing in huge supply to the already dying property market. Imagine only 500 units sold every month but 65,000 new condos on the pipeline.
In May, we have 440 units sold but this is pathetic sale taking into account lots of new condo launches last month. Imagine we have over 20,000 real estate agents but every month, Singapore sells less than 500 units. Is this number sustainable ???? Can real estate agencies maintain their business or file for bankruptcy ??
Prices will adjust accordingly when the economy goes down. As the saying goes, what goes up will come down eventually just like the stone that you throw up. This is basic economic fundamentals.
The US economy will soon start to raise interest rates to tackle its inflationary problems, and this will bring the world economy into a recession. Soon, we will witness our mortgage rates going up chasing one after another. In 1998, interest rates went up to almost double digit (9%), making the cost of loan unbearable. What makes you think this is not possible in the future ??
And with over 65,000 new units TOP from now till 2011, we will see an abundant number of vacant units as tenants numbers will dwindle. Rental rates will significantly deteriorate. When ROI drops, property prices will follow suit. By then, will property prices increase or decrease ??? Only fools will continue to subscribe to the belief that property prices will pick up.
Very soon, the economic tsunami will come to our shores. We will witness a huge economic downturn in Singapore as we are mainly export-based economy unlike our neighbors in Asia which have a large internal economy. We will lose jobs, lose foreigners, lose our competitiveness.
And with neighboring countries catching up with us, its silly if we still persist on with our current extremely high property prices. My bet is property prices will deteriorate significantly by the end of this year due to the TOP of signature condos like The Sail, RiverGate, Watermark, Cosmopolitan and condos at Sentosa Cove etc which will bring in roughly 5,000 new luxury units to the market. These condos rental performance will set a gauge on property performance in the near future. I doubt everyone can get $10,000 a month rental for a 2-bedroom condo in Sentosa Cove in order to achieve more than 5% ROI. If this is not possible, then be prepared for an eventual downturn.
Join the Singapore Property Forum to discuss Smart Buying Tips here.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation
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