Thursday, October 30, 2008
About this Blog
Get a confirmation from your banker about loan availability for desired amount for desired property before you put down any deposit. DO NOT under any circumstances put down a deposit hoping that your loan will be approved. Now a days bank's are valuing property very conservatively. For example - you are viewing a property worth 1mil (seller might tell you thats the valuation/or below valuation price). - So your estimate is that you need 200K cash/cpf and 800K loan (max 80% loan available these days). - You put in some token deposit to confirm purchase. - You check with your banker now. He values the property at 900K and approves 720K loan. - You suddenly find yourself in a position to put up 80K cash extra. - If you cant get that, you have to forfeit your deposit Please avoid such situation. Agents will always tell you to put a deposit, telling you that unit is hot and other buyers are also in queue. Dont believe them. Its better to let a unit go than to let your deposit go. Take your time before you confirm any purchase. Be financially prudent. God bless.
Posted by Anonymous in the Singapore Property Forum in the response to the article reproduced below:
He buys condo for a windfall but takes a big fall instead
AMONG the legion of burnt investors is a buyer of a million-dollar condo apartment who should have known better. He jumped into a then hot property market without weighing the biggest 'if' of all - what if you lack the cash to complete the purchase? Now Mr Byron Nifakis, 39, is bankrupt. He wanted to buy a $1.2 million four-room flat in the Casa Merah condominium, as an investment. The Singapore permanent resident was working as the IT director of a restaurant here, earning $10,000 a month. Now he is reminded of his bankruptcy whenever he peers out of his rented home, which faces the Casa Merah on Tanah Merah Kechil Avenue. He eyed the condo development to cash in on the rising property market last year. But, by his own admission, his 'naivety and -censored-' resulted in his owing the condo developers $18,000 for his botched purchase. Mr Nifakis, who came to Singapore from Canada in 2001, thought he was 'safe' as he had not signed any documents committing himself to the deal. But he had handed over a $60,000 cheque as deposit, and what he did not know was that this was sufficient proof of his option to buy the property. His cheque bounced, but lawyers and property agents told The New Paper he was still obliged to buy the unit. Mr Nifakis, who had only about $6,000 in his account then, could not proceed with the purchase because money he was counting on from overseas partners did not come in. He said: 'It was only because my property agent promised me that I could get more time to process the $60,000 payment that I even decided to go to the showroom that day to try my luck.' But by 4pm, he was unable to raise the money from his partners. So he returned to the showroom to back out of the deal and get his cheque back. When the agents refused to return the cheque, Mr Nifakis left the showroom. 'I thought they could keep my cheque, because they would not be able to use it against me,' he said. But he was wrong. A purchasers' particulars form he had signed stated that he had to pay 25 per cent of the $60,000, or $15,000, if he backed out of the deal. And, to his horror, he learnt later from his lawyer that the cheque could be used as evidence that the option had already been granted to him. He said: 'I should have refused to leave the showroom until it was closing time so that I could speak to someone who could return me my cheque. 'My agents kept telling me 'I'm sure you will find a way to get the money'.' Trying to make the best out of a bad situation, he 'scrambled' to get the money by applying for a bank loan, but failed to get approval. Desperate Desperate for more time, Mr Nifakis wrote to the developers, but failed to get an extension. They insisted that he had to pay the $15,000. Mr Ling Tien Wah, the lawyer acting for the developer, explained that since Mr Nifakis did not exercise his option to buy the apartment, the developer was entitled to 25 per cent of the $60,000 booking fee. In February this year, a judge ordered Mr Nifakis to pay the developer $18,000, including legal fees of $3,000. The developer took out a bankruptcy application against him in July when he failed to pay up. To make matters worse, his company laid him off the same month because it had run into financial difficulties and had shut down the restaurant. On 9 Oct, the court issued Mr Nifakis a bankruptcy order as he was unable to come to a compromise with the developers on a repayment scheme. He asked to pay them $300 a month over five years, but the developer rejected the offer, noting that if he wanted to, he could clear his debt in just 12 months. A bitter Mr Nifakis said: 'This is the biggest investment I have made; it is also the biggest lesson I have had to learn. 'I try not to think about it too much. There's a bit of resentment. After all, that property could have been mine.'
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Property Buying Advice: Confirm Bank Loan Before Putting a Deposit
A friendly advise for all buyers:Get a confirmation from your banker about loan availability for desired amount for desired property before you put down any deposit. DO NOT under any circumstances put down a deposit hoping that your loan will be approved. Now a days bank's are valuing property very conservatively. For example - you are viewing a property worth 1mil (seller might tell you thats the valuation/or below valuation price). - So your estimate is that you need 200K cash/cpf and 800K loan (max 80% loan available these days). - You put in some token deposit to confirm purchase. - You check with your banker now. He values the property at 900K and approves 720K loan. - You suddenly find yourself in a position to put up 80K cash extra. - If you cant get that, you have to forfeit your deposit Please avoid such situation. Agents will always tell you to put a deposit, telling you that unit is hot and other buyers are also in queue. Dont believe them. Its better to let a unit go than to let your deposit go. Take your time before you confirm any purchase. Be financially prudent. God bless.
Posted by Anonymous in the Singapore Property Forum in the response to the article reproduced below:
He buys condo for a windfall but takes a big fall instead
AMONG the legion of burnt investors is a buyer of a million-dollar condo apartment who should have known better. He jumped into a then hot property market without weighing the biggest 'if' of all - what if you lack the cash to complete the purchase? Now Mr Byron Nifakis, 39, is bankrupt. He wanted to buy a $1.2 million four-room flat in the Casa Merah condominium, as an investment. The Singapore permanent resident was working as the IT director of a restaurant here, earning $10,000 a month. Now he is reminded of his bankruptcy whenever he peers out of his rented home, which faces the Casa Merah on Tanah Merah Kechil Avenue. He eyed the condo development to cash in on the rising property market last year. But, by his own admission, his 'naivety and -censored-' resulted in his owing the condo developers $18,000 for his botched purchase. Mr Nifakis, who came to Singapore from Canada in 2001, thought he was 'safe' as he had not signed any documents committing himself to the deal. But he had handed over a $60,000 cheque as deposit, and what he did not know was that this was sufficient proof of his option to buy the property. His cheque bounced, but lawyers and property agents told The New Paper he was still obliged to buy the unit. Mr Nifakis, who had only about $6,000 in his account then, could not proceed with the purchase because money he was counting on from overseas partners did not come in. He said: 'It was only because my property agent promised me that I could get more time to process the $60,000 payment that I even decided to go to the showroom that day to try my luck.' But by 4pm, he was unable to raise the money from his partners. So he returned to the showroom to back out of the deal and get his cheque back. When the agents refused to return the cheque, Mr Nifakis left the showroom. 'I thought they could keep my cheque, because they would not be able to use it against me,' he said. But he was wrong. A purchasers' particulars form he had signed stated that he had to pay 25 per cent of the $60,000, or $15,000, if he backed out of the deal. And, to his horror, he learnt later from his lawyer that the cheque could be used as evidence that the option had already been granted to him. He said: 'I should have refused to leave the showroom until it was closing time so that I could speak to someone who could return me my cheque. 'My agents kept telling me 'I'm sure you will find a way to get the money'.' Trying to make the best out of a bad situation, he 'scrambled' to get the money by applying for a bank loan, but failed to get approval. Desperate Desperate for more time, Mr Nifakis wrote to the developers, but failed to get an extension. They insisted that he had to pay the $15,000. Mr Ling Tien Wah, the lawyer acting for the developer, explained that since Mr Nifakis did not exercise his option to buy the apartment, the developer was entitled to 25 per cent of the $60,000 booking fee. In February this year, a judge ordered Mr Nifakis to pay the developer $18,000, including legal fees of $3,000. The developer took out a bankruptcy application against him in July when he failed to pay up. To make matters worse, his company laid him off the same month because it had run into financial difficulties and had shut down the restaurant. On 9 Oct, the court issued Mr Nifakis a bankruptcy order as he was unable to come to a compromise with the developers on a repayment scheme. He asked to pay them $300 a month over five years, but the developer rejected the offer, noting that if he wanted to, he could clear his debt in just 12 months. A bitter Mr Nifakis said: 'This is the biggest investment I have made; it is also the biggest lesson I have had to learn. 'I try not to think about it too much. There's a bit of resentment. After all, that property could have been mine.'
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
About this Blog
Bears are waiting for property prices to reach its lowest. But they are truly stupid. The answer is simple. When property prices reach its lowest, that will be the time when the property market will start recovering. By then interest rate will pick up back again ! Imagine buying a property now and taking up a loan of interest rate less than 2.5% a year. Say, the downturn lasted for 2 years. That means a huge savings in interests. 2 years later, interest rate pick up to 5%, and when the bears bought, they are tying themselves up with a higher interest package loan while old timers enjoy a good rate package. At the end of the day, no such thing as losing or winning cause the banks will still earn the same amount from you. Also, with the current high construction costs, its very unlikely property prices will drop more than 20% from now till end 2009. 2010 property market will recover so does the stock market.....To wait to buy at 20% discount but ending oneself paying higher interest package for property loan is simply not worth it....In addition, no one knows when the property market will reach its lowest...its simply a gamble, a risk to take..
Anonymous wrote:
Housing loan rate will cut to 1% soon with US Fed rate going to 0-0.5% within next 2 moths. Bears will say rate is not a consideration, let them be, they do not know the significant. This rate will here to stay for a long period. Construction & material cost is still on high side, it will down a bit & shoot up to historical high in next 12-18 months due to hyper-inflation kick in. Rental yield of HDB at 7-10% now, price will be sustainable for a while for low to mid end condo. This yield will be here to stay due to strong demand. Wait till China take action on global economy within next 12 months, will see a good run, wait, it will come.
Anonymous wrote:
Reality has proved that bulls have been stupid buying properties at peak prices ... so who are the stupid ones to teach the smart ones ... Only stupid people will tell you that it is stupid to aim to buy "When property prices reach its lowest, that will be the time when the property market will start recovering." Anyone with some brains will know that's the best thing that can ever happen to a property investor. Even to buy when market has shown slight upturn is better to buy on the downturn when you have no idea when it'll end.. The downturn, according to most analysts, will reduce in property price plunging by 40% - 75%. Only stupid people will even consider mortgage rate gong from 2.5% to 5% as a sound reason for buying now. Commodities prices have already dropped as much 80%, so will construction costs in the longer as the global economy enters into a "savings" era from a "credit" era. In the new era of "expensive, tight credits", property have to come down because there is simply no money to chase up the property price. Best thing, when property price drop by 50%-75%, buyers may need only a small mortgage or no mortgage at all ... so you don't even have to consider mortgage rate.
Extracted from the Singapore Property Forum
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Property Buying Tip: When to Buy? Wait for the Bottom?
Tina wrote:Bears are waiting for property prices to reach its lowest. But they are truly stupid. The answer is simple. When property prices reach its lowest, that will be the time when the property market will start recovering. By then interest rate will pick up back again ! Imagine buying a property now and taking up a loan of interest rate less than 2.5% a year. Say, the downturn lasted for 2 years. That means a huge savings in interests. 2 years later, interest rate pick up to 5%, and when the bears bought, they are tying themselves up with a higher interest package loan while old timers enjoy a good rate package. At the end of the day, no such thing as losing or winning cause the banks will still earn the same amount from you. Also, with the current high construction costs, its very unlikely property prices will drop more than 20% from now till end 2009. 2010 property market will recover so does the stock market.....To wait to buy at 20% discount but ending oneself paying higher interest package for property loan is simply not worth it....In addition, no one knows when the property market will reach its lowest...its simply a gamble, a risk to take..
Anonymous wrote:
Housing loan rate will cut to 1% soon with US Fed rate going to 0-0.5% within next 2 moths. Bears will say rate is not a consideration, let them be, they do not know the significant. This rate will here to stay for a long period. Construction & material cost is still on high side, it will down a bit & shoot up to historical high in next 12-18 months due to hyper-inflation kick in. Rental yield of HDB at 7-10% now, price will be sustainable for a while for low to mid end condo. This yield will be here to stay due to strong demand. Wait till China take action on global economy within next 12 months, will see a good run, wait, it will come.
Anonymous wrote:
Reality has proved that bulls have been stupid buying properties at peak prices ... so who are the stupid ones to teach the smart ones ... Only stupid people will tell you that it is stupid to aim to buy "When property prices reach its lowest, that will be the time when the property market will start recovering." Anyone with some brains will know that's the best thing that can ever happen to a property investor. Even to buy when market has shown slight upturn is better to buy on the downturn when you have no idea when it'll end.. The downturn, according to most analysts, will reduce in property price plunging by 40% - 75%. Only stupid people will even consider mortgage rate gong from 2.5% to 5% as a sound reason for buying now. Commodities prices have already dropped as much 80%, so will construction costs in the longer as the global economy enters into a "savings" era from a "credit" era. In the new era of "expensive, tight credits", property have to come down because there is simply no money to chase up the property price. Best thing, when property price drop by 50%-75%, buyers may need only a small mortgage or no mortgage at all ... so you don't even have to consider mortgage rate.
Extracted from the Singapore Property Forum
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Tuesday, October 28, 2008
About this Blog
Notice that people are shifting from private housing to HDB and smaller and smaller HDB ... this is the result of housing inflation in a recession: people downgrade, rather than pay whatever the developers ask ... so bulls' theory of how inflation will chase up private property price is totally wrong.
Source : Business Times - 25 Apr
HDB prices up as demand rises. Rents also rise,
Q3 data shows; prices and rents of private mass-market homes fall as demand shifts to HDB flats
DEMAND is shifting to HDB flats from mass-market private homes - pushing up HDB prices and rents, but causing mass-market home prices and rents to fall. Figures released yesterday by the Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) show HDB’s resale price index rose 4.2 per cent in the third quarter. This means that in the first nine months of 2008, HDB resale prices climbed 12.4 per cent. The number of transactions also increased in Q3 to 8,110, from 7,760 in Q2.
‘In contrast to the private property market, despite the gloomy economic outlook, demand in the resale HDB market is still very active, with buyers coming from up-graders, down-graders and Permanent Residents,’ said ERA assistant vice-president Eugene Lim.
Analysts attribute this to a shift in demand towards HDB flats and away from private mass-market projects. ‘Demand is moving towards the HDB market,’ said Nicholas Mak, director of research and consultancy at Knight Frank. ‘A greater proportion of new homeowners, such as newlyweds and new immigrants, are looking only at HDB flats.’ In the past, a greater proportion of new homeowners would have considered private mass-market apartments, he said: ‘Compared to purchasing private residential properties, buying an HDB flat may allow some to set aside funds for liquidity during this uncertainty.’
Statistics show the number of Singapore citizens and Permanent Residents (PRs) is set to hit a record this year. In the first half of 2008, there were 34,800 new PRs and 9,600 new citizens, up from 28,500 new PRs and 7,300 new citizens in H1 last year.
Another reason homebuyers are choosing HDB flats over private mass-market homes is that HDB flat prices are still rising, while prices of private homes are falling. ‘People want the asset they buy to appreciate in value. In the HDB market there is still room for prices to move upsaid Ku Swee Yong, ,’ director of marketing and business development at Savills Singapore. At Sengkang, where HDB flats are going for around $250,000-$300,000, prices could climb 5-10 per cent in the next few quarters, he said.
Private mass-market rents have also been hit by the shift in demand. They fell 2.7 per cent in Q3, as demand switched to the HDB rental market. Overall median sub-let rents for HDB flats rose slightly in Q3.
But looking ahead, even growth in HDB prices is expected to slow as the economy worsens. ‘As such, although there is good demand for resale HDB flats, we expect buyers to turn more cautious and exercise more prudence by offering less for flats so as not to overstretch,’ said ERA’s Mr Lim.
HDB resale prices are expected to continue to increase, but probably at a more measured pace in the coming months. ERA’s Mr Lim said: ‘For 2008 we may see an overall price increase of 15-17 per cent, slightly lower than the 17.5 per cent increase for the whole of 2007. As for 2009, we are likely to see only marginal quarterly price increases, as current resale prices are a new peak.’ Likewise, PropNex’s Mr Ismail expects the HDB resale price index to increase about 15 per cent for the whole of 2008.
Because of this, cash-over-valuation (COV) figures will continue to decline in the coming quarters, analysts say. The median COV for resale transactions fell to $19,000 in Q3, from $20,000 in Q2 and $21,000 in Q1. The bigger drops in median COVs were for five-room flats (down 15 per cent) and executive flats (down 22 per cent), notes Mohd Ismail, chief executive of PropNex. ‘This is evidence of buyers resisting paying larger COVs for larger properties in this bleak economy,’ he said.
The increasing popularity of smaller three and four-room flats was also reflected in the median resale prices. The increase for smaller flats, at almost 5 per cent, outstripped the 1.5 per cent increase for larger flats.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Demand Shifting to HDB flats from Mass-Market Private Property
Result of housing inflation in a recession: People Downgrade
Notice that people are shifting from private housing to HDB and smaller and smaller HDB ... this is the result of housing inflation in a recession: people downgrade, rather than pay whatever the developers ask ... so bulls' theory of how inflation will chase up private property price is totally wrong.
Source : Business Times - 25 Apr
Demand shifting to HDB flats from mass-market private homes
HDB prices up as demand rises. Rents also rise,
Q3 data shows; prices and rents of private mass-market homes fall as demand shifts to HDB flats
DEMAND is shifting to HDB flats from mass-market private homes - pushing up HDB prices and rents, but causing mass-market home prices and rents to fall. Figures released yesterday by the Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) show HDB’s resale price index rose 4.2 per cent in the third quarter. This means that in the first nine months of 2008, HDB resale prices climbed 12.4 per cent. The number of transactions also increased in Q3 to 8,110, from 7,760 in Q2.
Mass-market home prices will hold steady this year?
In contrast, private mass-market properties put up a decidedly lacklustre showing in Q3. Prices of non-landed properties in the outside central region - where most mass-market private homes are located - fell 1.5 per cent. The decline was not expected - most analysts have said mass-market home prices will hold steady this year.‘In contrast to the private property market, despite the gloomy economic outlook, demand in the resale HDB market is still very active, with buyers coming from up-graders, down-graders and Permanent Residents,’ said ERA assistant vice-president Eugene Lim.
Buying HDB flat allow liquidity during uncertain time
Analysts attribute this to a shift in demand towards HDB flats and away from private mass-market projects. ‘Demand is moving towards the HDB market,’ said Nicholas Mak, director of research and consultancy at Knight Frank. ‘A greater proportion of new homeowners, such as newlyweds and new immigrants, are looking only at HDB flats.’ In the past, a greater proportion of new homeowners would have considered private mass-market apartments, he said: ‘Compared to purchasing private residential properties, buying an HDB flat may allow some to set aside funds for liquidity during this uncertainty.’
More people are eligible to buy HDB flats now
Statistics show the number of Singapore citizens and Permanent Residents (PRs) is set to hit a record this year. In the first half of 2008, there were 34,800 new PRs and 9,600 new citizens, up from 28,500 new PRs and 7,300 new citizens in H1 last year.
Another reason to choose HDB: HDB flat appreciating, private home prices are falling
Another reason homebuyers are choosing HDB flats over private mass-market homes is that HDB flat prices are still rising, while prices of private homes are falling. ‘People want the asset they buy to appreciate in value. In the HDB market there is still room for prices to move upsaid Ku Swee Yong, ,’ director of marketing and business development at Savills Singapore. At Sengkang, where HDB flats are going for around $250,000-$300,000, prices could climb 5-10 per cent in the next few quarters, he said.
HDB Rental Flats also hit Private Mass-Market Rents
Private mass-market rents have also been hit by the shift in demand. They fell 2.7 per cent in Q3, as demand switched to the HDB rental market. Overall median sub-let rents for HDB flats rose slightly in Q3.
HDB Resale Prices Expected to continue to increase but at slower pace as the economy worsens
But looking ahead, even growth in HDB prices is expected to slow as the economy worsens. ‘As such, although there is good demand for resale HDB flats, we expect buyers to turn more cautious and exercise more prudence by offering less for flats so as not to overstretch,’ said ERA’s Mr Lim.
HDB resale prices are expected to continue to increase, but probably at a more measured pace in the coming months. ERA’s Mr Lim said: ‘For 2008 we may see an overall price increase of 15-17 per cent, slightly lower than the 17.5 per cent increase for the whole of 2007. As for 2009, we are likely to see only marginal quarterly price increases, as current resale prices are a new peak.’ Likewise, PropNex’s Mr Ismail expects the HDB resale price index to increase about 15 per cent for the whole of 2008.
HDB Demand Shifting towards Smaller Flats
Because of this, cash-over-valuation (COV) figures will continue to decline in the coming quarters, analysts say. The median COV for resale transactions fell to $19,000 in Q3, from $20,000 in Q2 and $21,000 in Q1. The bigger drops in median COVs were for five-room flats (down 15 per cent) and executive flats (down 22 per cent), notes Mohd Ismail, chief executive of PropNex. ‘This is evidence of buyers resisting paying larger COVs for larger properties in this bleak economy,’ he said.
The increasing popularity of smaller three and four-room flats was also reflected in the median resale prices. The increase for smaller flats, at almost 5 per cent, outstripped the 1.5 per cent increase for larger flats.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Sunday, October 26, 2008
About this Blog
Credit Counselling Singapore (CCS) pointed out that these debts will push many individuals into financial difficulties as jobs and income become affected as Singapore economy weakens further and recession grows deeper.
CCS president Kuo How urged consumers to “urgently examine and make every effort to reduce or restructure” their debts, especially credit cards and credit lines, which are expensive and recallable.
May also want to read:
The days of Cheap, Easy Credits chasing after property is OVER!
Fire Sale: Owners Dump Condos
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Singaporeans' debt increase 10%: Housing Loans Up $6.6B
In the Singapore News report (Friday, October 24, 2008) "Singaporeans are piling on the debt ", total debt of Singaporeans has increased by 10%, with credit card rollover debt at $3.3 billion, and housing loans $6.6 billion. As a whole, preliminary statistics in August from the Monetary Authority of Singapore show that total debt to individuals rises to $112 billion — almost 10% up over a period of 12 months.Credit Counselling Singapore (CCS) pointed out that these debts will push many individuals into financial difficulties as jobs and income become affected as Singapore economy weakens further and recession grows deeper.
CCS president Kuo How urged consumers to “urgently examine and make every effort to reduce or restructure” their debts, especially credit cards and credit lines, which are expensive and recallable.
May also want to read:
The days of Cheap, Easy Credits chasing after property is OVER!
Fire Sale: Owners Dump Condos
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Friday, October 24, 2008
About this Blog
The median Cash-Over-Valuation (COV) amount of all resale transactions in 3rd Quarter 2008 was $19,000. This is a slight decrease compared with the COV of $20,000 in 2nd Quarter 2008.
Overall median sublet rents for HDB flats rose slightly in Quarter 3 2008. Subletting transactions fell slightly by about 4% from about 4,120 cases in Quarter 2 2008 to about 3,960 cases in Quarter 3 2008. The total number of HDB flats approved for subletting rose to about 21,400 units, compared to about 20,200 units in Quarter 2 2008.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
HDB Resale Price Index Quarter 3 2008: Price Rose 4.2% and Rent Rose marginally of less than 1%
HDB’s Resale Price Index (RPI) rose by 4.2% in 3rd Quarter 2008 over the previous quarter, slightly lower than the 4.5% increase seen in 2nd Quarter 2008. Resale transactions increased by about 4%, from about 7,760 cases in Quarter 2 2008 to about 8,110 cases in Quarter 3 2008.The median Cash-Over-Valuation (COV) amount of all resale transactions in 3rd Quarter 2008 was $19,000. This is a slight decrease compared with the COV of $20,000 in 2nd Quarter 2008.
Overall median sublet rents for HDB flats rose slightly in Quarter 3 2008. Subletting transactions fell slightly by about 4% from about 4,120 cases in Quarter 2 2008 to about 3,960 cases in Quarter 3 2008. The total number of HDB flats approved for subletting rose to about 21,400 units, compared to about 20,200 units in Quarter 2 2008.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
About this Blog
Rents also fell during the July-September period by 0.9% compared to the increase of 2.5% in the three months to June. Rentals of non-landed properties in CCR, RCR and OCR fell by 0.7%, 0.5% and 2.7% respectively in Quarter 3 2008
Prices of non-landed properties fell 2.5% in 3rd Quarter 2008, compared with an increase of 0.1% in the previous quarter. Prices of apartments fell 2.4% and prices of condominiums fell 2.6%. Prices of non-landed properties in Core Central Region (CCR) fell 2.7% in Quarter 3 2008, and prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 2.4% and 1.5% respectively.
Prices of landed properties fell 1.9% in Quarter 3 2008, compared with the increase of 0.6% in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 1.9%, 2.1% and 1.6% respectively in Quarter 3 2008.
As at Quarter 3 2008, there were 66,422 private residential units in the pipeline, comprising supply from projects that are already under construction and those that have been granted planning approval but are not under construction yet. Of the 66,422 uncompleted units of private housing from projects in the pipeline, 23,008 units, 19,736 units and 23,678 units were expected to be completed over the next few years in CCR, RCR and OCR respectively.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
URA Quarter 3 2008 Real Estate Statistics: Private Property Price Fell 4.2% and Rent Fell as much as 2.7% in OCR
URA Q3 2008 real estate statistics shows that private property price fell 4.2%, worse than an initial estimate of a 1.8% decline.Rents also fell during the July-September period by 0.9% compared to the increase of 2.5% in the three months to June. Rentals of non-landed properties in CCR, RCR and OCR fell by 0.7%, 0.5% and 2.7% respectively in Quarter 3 2008
Prices of non-landed properties fell 2.5% in 3rd Quarter 2008, compared with an increase of 0.1% in the previous quarter. Prices of apartments fell 2.4% and prices of condominiums fell 2.6%. Prices of non-landed properties in Core Central Region (CCR) fell 2.7% in Quarter 3 2008, and prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 2.4% and 1.5% respectively.
Prices of landed properties fell 1.9% in Quarter 3 2008, compared with the increase of 0.6% in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 1.9%, 2.1% and 1.6% respectively in Quarter 3 2008.
As at Quarter 3 2008, there were 66,422 private residential units in the pipeline, comprising supply from projects that are already under construction and those that have been granted planning approval but are not under construction yet. Of the 66,422 uncompleted units of private housing from projects in the pipeline, 23,008 units, 19,736 units and 23,678 units were expected to be completed over the next few years in CCR, RCR and OCR respectively.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Thursday, October 23, 2008
About this Blog
Chesterton International research pointed out that a high end property should have 3 attributes: (1) prime location, (2) exclusivity and (3) spaciousness with area of 3000 sq ft or more. These are the attributes that high-net-worth-individuals would look for in a high-end property. In land scarce Singapore, properties with these attributes are few and far between; but it is precisely the scarcity of such properties that make them all the more desirable.
Many of the so-called high-end properties developed recently were enbloc developments of prime properties (in districts 9, 10,11) during the past two years. In many of these enbloc developments, there is really little value-add in terms of exclusivity or spaciousness. In fact, some of these properties were ordinary in design and downright small.
According Chesterton International research, the high prices of these properties were really the result of developers' high acquisition costs for these prime-location developments. Though these properties have been called high-end properties, they are in reality merely ordinary prime-location housing that do not really appeal to high-net-worth-individuals.
Knight Frank analyst said that not all high-end properties are of "grade A", some maybe of "grade A-minus". They provide condominium living that's do not necessarily meet high-end lifestyle. In a economic downturn, these "high-end" properties may not hold up as well as their other counter-parts. Developments like Sentosa Cove with a 99-lease may also not hold up as well. When supply of such properties increases, it depreciates their exclusivity that is needed to guarantee their values.
DTZ Tie Leung said that price decline in high-end properties is the result of low sale volume. Hence, owners will have to reduce their prices in order to sell their properties.
In the past, Singapore high-end properties are reckoned to be the "blue chips" of Singapore real estate, having withstood sharp price decline during crisis such as SARS. This maybe set to change with the current sub-prime crisis as both sales and prices of these high-end properties took the brunt of the economic turmoil.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Singapore High End Properties Merely High Priced
According to a news report from my paper today (shown below), some Singapore's high-end properties are merely high priced and not the sort of high-end properties pursued by high-net-worth-individuals.Chesterton International research pointed out that a high end property should have 3 attributes: (1) prime location, (2) exclusivity and (3) spaciousness with area of 3000 sq ft or more. These are the attributes that high-net-worth-individuals would look for in a high-end property. In land scarce Singapore, properties with these attributes are few and far between; but it is precisely the scarcity of such properties that make them all the more desirable.
Many of the so-called high-end properties developed recently were enbloc developments of prime properties (in districts 9, 10,11) during the past two years. In many of these enbloc developments, there is really little value-add in terms of exclusivity or spaciousness. In fact, some of these properties were ordinary in design and downright small.
According Chesterton International research, the high prices of these properties were really the result of developers' high acquisition costs for these prime-location developments. Though these properties have been called high-end properties, they are in reality merely ordinary prime-location housing that do not really appeal to high-net-worth-individuals.
Knight Frank analyst said that not all high-end properties are of "grade A", some maybe of "grade A-minus". They provide condominium living that's do not necessarily meet high-end lifestyle. In a economic downturn, these "high-end" properties may not hold up as well as their other counter-parts. Developments like Sentosa Cove with a 99-lease may also not hold up as well. When supply of such properties increases, it depreciates their exclusivity that is needed to guarantee their values.
DTZ Tie Leung said that price decline in high-end properties is the result of low sale volume. Hence, owners will have to reduce their prices in order to sell their properties.
In the past, Singapore high-end properties are reckoned to be the "blue chips" of Singapore real estate, having withstood sharp price decline during crisis such as SARS. This maybe set to change with the current sub-prime crisis as both sales and prices of these high-end properties took the brunt of the economic turmoil.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
About this Blog
In the worst-case scenario, if US Las Vegas goes bankrupt, Marina Bay Sands IR in Singapore is unlikely to escape unscathed, said market observers.
In the extreme scenario, if the parent company is liquidated, Marina Bay Sands IR needs to find a buyer for its stake in the subsidiary, which could affect the construction schedule, he said.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Singapore Marina Bay Sands IR threatened by Subprime Crisis
Las Vegas Sands' share price fell a jaw-dropping 90 over pecent, from a 52-week high of US$144.15 to Tuesday’s price of US$12.43, on concerns about a slowdown at its US operations, profitability of its Macau casinos and high gearing. Doubts have been raised about the health of Las Vegas Sands and more importantly, for Singapore, its impact on the Marina Bay Sands Integrated Resort (IR) that is scheduled for completion end of next year.In the worst-case scenario, if US Las Vegas goes bankrupt, Marina Bay Sands IR in Singapore is unlikely to escape unscathed, said market observers.
In the extreme scenario, if the parent company is liquidated, Marina Bay Sands IR needs to find a buyer for its stake in the subsidiary, which could affect the construction schedule, he said.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Wednesday, October 22, 2008
About this Blog
Singapore property developers are facing pressure from all sides - slowing sales, increasing difficulty in obtaining credit and mounting pressure to cut property prices in Singapore and in overseas markets such as China and Vietnam.
Deutsche Bank expects continued earnings downgrades on weak sales and average selling prices (ASPs) and the risk of provisions.
DBS Vickers who recently downgraded 6 property stocks including City Developments, CapitaLand and Ho Bee Investment, said asset devaluation is a concern.
Goldman Sachs acknowledged that the real estate market outlook is deteriorating at home and overseas - in markets such as China and Vietnam - for Singapore developers.
May also want to read:
The days of Cheap, Easy Credits chasing after property is OVER!
Fire Sale: Owners Dump Condos
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Singapore Property Developers may have to write down assets and make provisions
In the BT report today: "Lower profits for property developers expected", analysts continued to express pessimism over Singapore property developers' earnings.Singapore property developers are facing pressure from all sides - slowing sales, increasing difficulty in obtaining credit and mounting pressure to cut property prices in Singapore and in overseas markets such as China and Vietnam.
Deutsche Bank expects continued earnings downgrades on weak sales and average selling prices (ASPs) and the risk of provisions.
DBS Vickers who recently downgraded 6 property stocks including City Developments, CapitaLand and Ho Bee Investment, said asset devaluation is a concern.
Goldman Sachs acknowledged that the real estate market outlook is deteriorating at home and overseas - in markets such as China and Vietnam - for Singapore developers.
May also want to read:
The days of Cheap, Easy Credits chasing after property is OVER!
Fire Sale: Owners Dump Condos
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Tuesday, October 21, 2008
About this Blog
According to some property agents, some of their clients are willing to give as much as 20% discount or even more. Even with the hefty discount, these luxurious multi-million-dollar apartments are hardly a steal.
The situation is worse for those who opted for deferred payment schemes because some are no longer eligible for loans, and cannot meet payments once the developers issue the Temporary Occupation Permit (TOP). If they fail to sell off their properties before TOP, they may have to sell at even greater discounts.
The high-end property market seems to be hit the hardest, according to a property agent who said , 'My colleagues who specialise in high-end properties are not doing well. They do not have any transactions at all.'
Many of these high-end property speculators are stuck because they can neither sell their property, nor rent it out to cover their mortgages, as the rental market has slowed down a lot.
In response to the report, forumers at the Singapore Property Forum have these advice for property buyers:
"Not yet (time to buy), give it another 6 mth to 1 year, then you can see what "lelong lelong" is like ... bears be patient ... "
"Yes, be careful that all this lelong lelong shouts may not really be bargains at all .. for $1M you cannot even get a small studio ... look at the real investment value in terms of rental yield ... don't pay too much attention to the discount given .. after all, to begin with, these properties are really over-valued .. "
"Good advice - properties are still over-valued. Price has to come down more. "
"There are fire-sales already? 20% off. Although I am a bear but I didn't expect the drop to be quite so steep so fast. I was expecting a protracted argument with the bulls for at least 3-6 months or so and for prices to correct about 20-30% only in 2009.... OK, it looks like the crash may be bigger than expected. Would 50% be possible by end 2009? ... This is good for me because I can get a bigger unit with my budget after waiting for over a year but in a way, I feel bad for the people who have overcommitted on property."
"This is only the start of the mother of all meltdowns ... you've plenty to pick and choose from ..next year this time "
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Property Crash: Deferred-Payment-Scheme Property Buyers Not Eligible for Bank Loans Cannot Pay Developers Come TOP
The New Paper reported in the article "FIRE SALE: OWNERS DUMP CONDOS" October 20, 2008; that stock market losses have forced some property owners to resort to 'fire sales' for a quick return to liquidity.According to some property agents, some of their clients are willing to give as much as 20% discount or even more. Even with the hefty discount, these luxurious multi-million-dollar apartments are hardly a steal.
The situation is worse for those who opted for deferred payment schemes because some are no longer eligible for loans, and cannot meet payments once the developers issue the Temporary Occupation Permit (TOP). If they fail to sell off their properties before TOP, they may have to sell at even greater discounts.
The high-end property market seems to be hit the hardest, according to a property agent who said , 'My colleagues who specialise in high-end properties are not doing well. They do not have any transactions at all.'
Many of these high-end property speculators are stuck because they can neither sell their property, nor rent it out to cover their mortgages, as the rental market has slowed down a lot.
In response to the report, forumers at the Singapore Property Forum have these advice for property buyers:
"Not yet (time to buy), give it another 6 mth to 1 year, then you can see what "lelong lelong" is like ... bears be patient ... "
"Yes, be careful that all this lelong lelong shouts may not really be bargains at all .. for $1M you cannot even get a small studio ... look at the real investment value in terms of rental yield ... don't pay too much attention to the discount given .. after all, to begin with, these properties are really over-valued .. "
"Good advice - properties are still over-valued. Price has to come down more. "
"There are fire-sales already? 20% off. Although I am a bear but I didn't expect the drop to be quite so steep so fast. I was expecting a protracted argument with the bulls for at least 3-6 months or so and for prices to correct about 20-30% only in 2009.... OK, it looks like the crash may be bigger than expected. Would 50% be possible by end 2009? ... This is good for me because I can get a bigger unit with my budget after waiting for over a year but in a way, I feel bad for the people who have overcommitted on property."
"This is only the start of the mother of all meltdowns ... you've plenty to pick and choose from ..next year this time "
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Monday, October 20, 2008
About this Blog
Expectations initially on what the IRs could do to the Singapore economy were indeed very high, especially on the potential impact on the private property price. Property analysts had said it'd bring 40,000 jobs and the foreign talents needed would surely drive property price to yet another peak.
That, however, may be easier said than done.
To begin with, the Singapore Tourism Board is not confident of achieving this year’s target of 10.8 million visitors. Even if visitor numbers do pick up against the odds of an impending global recession, it remains to be seen whether these tourists will spend as freely as initially expected. The IRs have placed its bet in markets all over the world, the trouble is that almost each of these markets is in its downturn. The Shanghai index has fallen 69% from its peak in October 2007 and hit a 22-month closing low in September this year. Mumbai has not fared much better. Ultimately the success of the Singapore IRs will depend on tourist arrival which looks set to be hit by the global economic crisis.
In the light of the worsening global economic situation, analysts have cut back their projections on the IRs' contribution to Singapore to between 0.3% and 0.5% between 2010 and 2015.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Integrated Resorts (Spore IRs) may not live up to expectations
In the BT report "Dicing with a downturn", Saturday October 18, 2008; Singaporeans are again asked if the Singapore’s Integrated Resorts (IRs) can beat a global slowdown?Expectations initially on what the IRs could do to the Singapore economy were indeed very high, especially on the potential impact on the private property price. Property analysts had said it'd bring 40,000 jobs and the foreign talents needed would surely drive property price to yet another peak.
That, however, may be easier said than done.
To begin with, the Singapore Tourism Board is not confident of achieving this year’s target of 10.8 million visitors. Even if visitor numbers do pick up against the odds of an impending global recession, it remains to be seen whether these tourists will spend as freely as initially expected. The IRs have placed its bet in markets all over the world, the trouble is that almost each of these markets is in its downturn. The Shanghai index has fallen 69% from its peak in October 2007 and hit a 22-month closing low in September this year. Mumbai has not fared much better. Ultimately the success of the Singapore IRs will depend on tourist arrival which looks set to be hit by the global economic crisis.
In the light of the worsening global economic situation, analysts have cut back their projections on the IRs' contribution to Singapore to between 0.3% and 0.5% between 2010 and 2015.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
97-Asian crisis did not see the sort of credit crunch here that simply choked legitimate businesses into bankruptcies ..
97-Asian crisis was not accompanied the huge risk-aversion in the money market that we see today ..
I hereby pronounce, based on the above logics, that the days of easy, cheap credits chasing after properties is OVER!
Property price will now has to be fundamentally supported by the real wealth that a country can generate for its people.
Singapore property price will therefore has to correct downward by about 40-50% esp in the mass market to match the current affordability level of the masses, and if that affordability level declines with declining economic growth, property price may have to fall still further until a sustainable level is arrived at ..
from that sustainable price level, property price will then rise in line with economic growth in the absence of cheap, easy credits ..
WE ARE BACK TO BASICS.
Posted by Anonymoust in the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Real Estate Investment Outlook: The days of easy, cheap credits chasing after properties is OVER!
We are facing the worst global financial crisis of the century, it doesn't take a lot of intelligence to gauge that its impact on the Singapore property price is going to be worse than the last 97-Asian financial crisis .. when property price plunged as much as 50% in the mass market ..97-Asian crisis did not see the sort of credit crunch here that simply choked legitimate businesses into bankruptcies ..
97-Asian crisis was not accompanied the huge risk-aversion in the money market that we see today ..
I hereby pronounce, based on the above logics, that the days of easy, cheap credits chasing after properties is OVER!
Property price will now has to be fundamentally supported by the real wealth that a country can generate for its people.
Singapore property price will therefore has to correct downward by about 40-50% esp in the mass market to match the current affordability level of the masses, and if that affordability level declines with declining economic growth, property price may have to fall still further until a sustainable level is arrived at ..
from that sustainable price level, property price will then rise in line with economic growth in the absence of cheap, easy credits ..
WE ARE BACK TO BASICS.
Posted by Anonymoust in the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Friday, October 17, 2008
About this Blog
The governments' bank guarantee scheme was first initiated by the UK government and subsequently adopted by both the European and United States governments. In Asia-pacific; Hong Kong, Australia, New Zealand, Indonesia and of late, Singapore and Malaysia have adopted the policy to guarantee bank deposits. The governments' bank guarantee strategy has so far been successful in achieving its goal of stabilising the global financial system as it restores public confidence.
Singapore government said that while Singapore banking system remains stable and is functioning properly, the absence of such a guarantee may disadvantage financial institutions here.
Read more about: How to invest your money safely
May also want to read:
Singapore Economic Outlook 2008-2009: Singapore Recession likely to be long
Property Investment Advice: Don't put all your eggs in real estate
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Economic Outlook: Singapore Government Guarantee Bank Deposits
Singapore Government has joined other governments to guarantee bank deposits. The government's guarantee will cover deposits in any currency held in savings accounts, fixed deposits, current accounts and under the Supplementary Retirement Scheme; but does not include structured deposits and deposits pledged, charged or secured as collateral. Singapore Finance Ministry and Monetary Authority of Singapore (MAS) said in a joint statement yesterday that the guarantee would take immediate effect and cover until Dec 31 2010.The governments' bank guarantee scheme was first initiated by the UK government and subsequently adopted by both the European and United States governments. In Asia-pacific; Hong Kong, Australia, New Zealand, Indonesia and of late, Singapore and Malaysia have adopted the policy to guarantee bank deposits. The governments' bank guarantee strategy has so far been successful in achieving its goal of stabilising the global financial system as it restores public confidence.
Singapore government said that while Singapore banking system remains stable and is functioning properly, the absence of such a guarantee may disadvantage financial institutions here.
Read more about: How to invest your money safely
May also want to read:
Singapore Economic Outlook 2008-2009: Singapore Recession likely to be long
Property Investment Advice: Don't put all your eggs in real estate
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Wednesday, October 15, 2008
About this Blog
HDB flats demand remains strong amid the US subprime crisis. In two recent launches from the Housing Development Board, there are over 10 times more applicants than HDB flats for sale.
On 10 Oct 2008, last Friday, the half-yearly sale of three-room premium, four-room and bigger flats saw 7036 applications for 683 units, yet the offer ran until Thursday.
From Oct 2 to Oct 8 2008, HDB put on sale 150 smaller flats including studio apartments and 2 to 3 room flats in Bukit Merah, Geylang, Jurong East, Sengkang, Ang Mo Kio and Marine Parade. There were 2426 applications for them; 582 for the studio apartments and 1844 for 2-3 room flats. This makes the supply of these smaller HDB flats about 16 times over-subscribed. Studio apartment prices range from $62,900 to $116,400. A 2-room flata goes for $74000 to $106300; and a 3-room flat $134500 to $275200.
The huge over-subscription seen for smaller HDB flats should not come as a surprise despite the gloomy economic outlook triggered by the US subprime crisis. In anticipation of the country's worsening recession which the Singapore government has warned may lead to retrenchment, many home-buyers are getting increasingly cautious about making their financial commitment. Besides, HDB prices have surged significantly over the last 2 years making bigger HDB flats increasingly less affordable and lower-income households may have no choice but to start with smaller flats.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
HDB Market Outlook: HDB Flats Sale Remains Strong Amid US Subprime Crisis
HDB Flats oversubscribed by more than 10 times
HDB flats demand remains strong amid the US subprime crisis. In two recent launches from the Housing Development Board, there are over 10 times more applicants than HDB flats for sale.
On 10 Oct 2008, last Friday, the half-yearly sale of three-room premium, four-room and bigger flats saw 7036 applications for 683 units, yet the offer ran until Thursday.
Smaller HDB Flats 16 times over-subscription as bigger HDB flats become unaffordable
From Oct 2 to Oct 8 2008, HDB put on sale 150 smaller flats including studio apartments and 2 to 3 room flats in Bukit Merah, Geylang, Jurong East, Sengkang, Ang Mo Kio and Marine Parade. There were 2426 applications for them; 582 for the studio apartments and 1844 for 2-3 room flats. This makes the supply of these smaller HDB flats about 16 times over-subscribed. Studio apartment prices range from $62,900 to $116,400. A 2-room flata goes for $74000 to $106300; and a 3-room flat $134500 to $275200.
The huge over-subscription seen for smaller HDB flats should not come as a surprise despite the gloomy economic outlook triggered by the US subprime crisis. In anticipation of the country's worsening recession which the Singapore government has warned may lead to retrenchment, many home-buyers are getting increasingly cautious about making their financial commitment. Besides, HDB prices have surged significantly over the last 2 years making bigger HDB flats increasingly less affordable and lower-income households may have no choice but to start with smaller flats.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
Tuesday, October 14, 2008
About this Blog
Marc Faber, managing director of Asia-based investment advisory firm Marc Faber Ltd, said,"You have inflationary monetary policies, fiscal policies, and debt growth that will really accelerate."
When asked abot US situation now, Warren Buffett replied: "It's much easier just to inflate your way out of it. If you're a South American or Asian country that owes money in dollars, it gets very binding to pay back in dollars. But if you owe it in your own currency, you just print more currency. And we have the ability to print currency. We can denominate debt in our own currency, whereas many countries can't because people don't trust them."
Paul Volcker (chairman of the US central bank between 1979 and 1987 and credited for battling double-digit inflation that flared in the 1970s) when asked if the massive infusion of liquidity by the Federal Reserve could lead to inflation or stagflation, said, "It's not going to be a problem in the short run. Inflation doesn't flourish in the face of recession. It's something we have to worry about when we get out of this recession."
The question is: Will Central banks' liquidity injection cause super-inflation?
Here are some forumers' views from the Singapore Property Forum:
Bull wrote:
The whole world will reach a super-inflation stage very soon, run for life to dump US$, who throw late who will lose more. US$ will crash, inflation will shoot to sky, US$500/barrel of oil is nothing, so what is $30/plate chicken rice in hawker center, then what is the value of cash? Property in S$ will surge super high.
Bear wrote:
super-huge-inflation + severe-deep-recession = catastrophic-stagflation = Singapore property will crash like never seen before ... this is going to be many times worse than 1996.
Anonymous wrote:
Hyperinflation: bull's latest pet theory. Well, let's see. There will probably be inflationary effects from printing money, but recessions are deflationary. My guess, recessionary effects will probably predominate because governments know they can't afford to have their currecies collapse. (that's even worse than recession).
Derek wrote:
Some people here have been screaming hyper-inflation, whether this is from vested interest or whatever, it does not really matter. However, to dismiss the notion of inflationary pressure offhand from the actions of the central banks across the world may not be completely prudent... so I would really appreciate if other forumers could help chip in with reasoned comments and viewpoints. Thanks!
Anonymous wrote:
Under normal circumstances, injection of liquidity of this scale by central banks would have an inflationary effect. But this is NOT normal circumstances. We are having a credit freeze, a totally different situation from the easy, cheap credits that fuelled the subprime crisis. Banks are moving to the other extreme, they no longer talk about the returns ON their money, they want to be ensured of the return OF their money. Even banks who are willing to lend, they are going to be very stringent, in fact, overly stringent. As such, a flush of liquidity into the economy is unlikely. Besides loans by central banks will be backed by collaterals and other terms and conditions to ensure that banks do not once again become reckless in their lending. The deposit guarantee and liquidity injection by central banks is aimed at stabilising the banking system and once the desired effect is achieved, I'd expect a quick and swift reversal of policy by central banks. Both US presidential candidates have vowed to have greater regulations in the financial system. It's more likely that it becomes over-done in that direction. In other words, expect stringent credit condition to prevail for a very long time.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Economic Outlook 2008-2009: Will Central banks' liquidity injection cause super-inflation?
Central banks' move to guarantee deposits and inject liquidity may produce inflationary pressure, according to some market watchers.Marc Faber, managing director of Asia-based investment advisory firm Marc Faber Ltd, said,"You have inflationary monetary policies, fiscal policies, and debt growth that will really accelerate."
When asked abot US situation now, Warren Buffett replied: "It's much easier just to inflate your way out of it. If you're a South American or Asian country that owes money in dollars, it gets very binding to pay back in dollars. But if you owe it in your own currency, you just print more currency. And we have the ability to print currency. We can denominate debt in our own currency, whereas many countries can't because people don't trust them."
Paul Volcker (chairman of the US central bank between 1979 and 1987 and credited for battling double-digit inflation that flared in the 1970s) when asked if the massive infusion of liquidity by the Federal Reserve could lead to inflation or stagflation, said, "It's not going to be a problem in the short run. Inflation doesn't flourish in the face of recession. It's something we have to worry about when we get out of this recession."
The question is: Will Central banks' liquidity injection cause super-inflation?
Here are some forumers' views from the Singapore Property Forum:
Bull wrote:
The whole world will reach a super-inflation stage very soon, run for life to dump US$, who throw late who will lose more. US$ will crash, inflation will shoot to sky, US$500/barrel of oil is nothing, so what is $30/plate chicken rice in hawker center, then what is the value of cash? Property in S$ will surge super high.
Bear wrote:
super-huge-inflation + severe-deep-recession = catastrophic-stagflation = Singapore property will crash like never seen before ... this is going to be many times worse than 1996.
Anonymous wrote:
Hyperinflation: bull's latest pet theory. Well, let's see. There will probably be inflationary effects from printing money, but recessions are deflationary. My guess, recessionary effects will probably predominate because governments know they can't afford to have their currecies collapse. (that's even worse than recession).
Derek wrote:
Some people here have been screaming hyper-inflation, whether this is from vested interest or whatever, it does not really matter. However, to dismiss the notion of inflationary pressure offhand from the actions of the central banks across the world may not be completely prudent... so I would really appreciate if other forumers could help chip in with reasoned comments and viewpoints. Thanks!
Anonymous wrote:
Under normal circumstances, injection of liquidity of this scale by central banks would have an inflationary effect. But this is NOT normal circumstances. We are having a credit freeze, a totally different situation from the easy, cheap credits that fuelled the subprime crisis. Banks are moving to the other extreme, they no longer talk about the returns ON their money, they want to be ensured of the return OF their money. Even banks who are willing to lend, they are going to be very stringent, in fact, overly stringent. As such, a flush of liquidity into the economy is unlikely. Besides loans by central banks will be backed by collaterals and other terms and conditions to ensure that banks do not once again become reckless in their lending. The deposit guarantee and liquidity injection by central banks is aimed at stabilising the banking system and once the desired effect is achieved, I'd expect a quick and swift reversal of policy by central banks. Both US presidential candidates have vowed to have greater regulations in the financial system. It's more likely that it becomes over-done in that direction. In other words, expect stringent credit condition to prevail for a very long time.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Dear SPB (Smart Buyer, the blogger),
I hate your blog! You are providing valuable information to people that would otherwise make foolish decisions. Clearly, I cannot profit from unmade foolish decisions. It is apparent that the pearls of wisdom you are spreading has already cautioned many a foolish buyer to instead exercise prudence!
How dare you undermine the efforts of sale "EXPERTS" who are hastening the crash by encouraging people to "buy-now-before-it-goes-even-higher". Just because these so called "EXPERTS" have been wrong in their predictions earlier this year by claiming that prices will continue to rise for the next 2 years when in fact the latest URA results proved that prices have peaked and are softening, thereby making the experts technically wrong, and you technically right, does not give you the authority to question them and make their life more difficult! Do you know how difficult it is for them to stand up to scrutiny!
Let me illustrate this point clearly with a personal example. A certain Mr. Wang of X property agency, has promised that HDB prices will continue to rise, even though its already $500 psf (at Dover) it will rise by another 15% to about $575 next year and will absolutely not be affected by private condo prices reclining. (eg. if a $650 psf condo falls 20% to $520) people will still pay more for the HDB even though it's older, with an inferior design. Do you realize the years of training to blatantly ignore reality and the gall it requires to make such statements? Mr. Wang has 2 children, a BMW and a rolex wearing habit to support. Blogs like yours are making it difficult for him to make a living.
From your blog postings, I know that you are concerned about the welfare of others over committing to property. Do have a heart for the suffering of Mr. Wang. I'm sure he will be devastated to down grade to a Toyota and a Tag Heuer.
I urge you, as a fellow prudent buyer that will profit from a property crash to shutdown your blog for good!
Smart Buyer replied:
Dear Danny (who hates my blog),
Last Sunday, I saw a TV documentary about how young Americans were driven to suicide by their mounting debts and how the working-class Americans would have no hope of ever becoming debt-free while the rich gets richer; I was choked with indignant.
When the bubbles of capitalists' greed and fear burst, guess who suffer?
Despite the daily verbal abuses I received from people like "Mr Wang", I cannot shutdown the blog.
Best wishes.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
When the bubbles of capitalists' greed and fear burst, guess who suffer
Danny wrote this comment on the blog:Dear SPB (Smart Buyer, the blogger),
I hate your blog! You are providing valuable information to people that would otherwise make foolish decisions. Clearly, I cannot profit from unmade foolish decisions. It is apparent that the pearls of wisdom you are spreading has already cautioned many a foolish buyer to instead exercise prudence!
How dare you undermine the efforts of sale "EXPERTS" who are hastening the crash by encouraging people to "buy-now-before-it-goes-even-higher". Just because these so called "EXPERTS" have been wrong in their predictions earlier this year by claiming that prices will continue to rise for the next 2 years when in fact the latest URA results proved that prices have peaked and are softening, thereby making the experts technically wrong, and you technically right, does not give you the authority to question them and make their life more difficult! Do you know how difficult it is for them to stand up to scrutiny!
Let me illustrate this point clearly with a personal example. A certain Mr. Wang of X property agency, has promised that HDB prices will continue to rise, even though its already $500 psf (at Dover) it will rise by another 15% to about $575 next year and will absolutely not be affected by private condo prices reclining. (eg. if a $650 psf condo falls 20% to $520) people will still pay more for the HDB even though it's older, with an inferior design. Do you realize the years of training to blatantly ignore reality and the gall it requires to make such statements? Mr. Wang has 2 children, a BMW and a rolex wearing habit to support. Blogs like yours are making it difficult for him to make a living.
From your blog postings, I know that you are concerned about the welfare of others over committing to property. Do have a heart for the suffering of Mr. Wang. I'm sure he will be devastated to down grade to a Toyota and a Tag Heuer.
I urge you, as a fellow prudent buyer that will profit from a property crash to shutdown your blog for good!
Smart Buyer replied:
Dear Danny (who hates my blog),
Last Sunday, I saw a TV documentary about how young Americans were driven to suicide by their mounting debts and how the working-class Americans would have no hope of ever becoming debt-free while the rich gets richer; I was choked with indignant.
When the bubbles of capitalists' greed and fear burst, guess who suffer?
Despite the daily verbal abuses I received from people like "Mr Wang", I cannot shutdown the blog.
Best wishes.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
"One year back everyone knew it was going up. Today everyone knows its going down.
Do you think a recession after 6 years is a normal thing which will have no effect on property. Property will go down, and there's nothing that you and I can do to prevent it."
"If the ppty does go down this time, I tell you, the entire SIngaproe economy will collapse along with it Why? Because never in our history, we have so much exposure and have put in so much money into this sector. We are no longer talking about a homeownership of 85% or 90% in Singapore population, but a probably above 300%. Because since the ppty boom in 2004, many individual has bought and owned up to 3 or 4 ppty each. This is a very serious matter, folks! "
"Singapore economy is not going to collapse with property market crashing.. most people are just living in their properties so when prices go or down, it has no real impact .. those people who bought 3-4 properties will have to sell cheap and lose money if they can't hold.. period... people with the money to buy cheap will gain ... just a transfer of wealth .. The people who should worry are the people who are highly leveraged, like the developers and speculators. If banks have to write-off, then shareholders of banks will also suffer ... "
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Property too big to fail?
Excerpt of forum exchanges from the Singapore Property Forum:"One year back everyone knew it was going up. Today everyone knows its going down.
Do you think a recession after 6 years is a normal thing which will have no effect on property. Property will go down, and there's nothing that you and I can do to prevent it."
"If the ppty does go down this time, I tell you, the entire SIngaproe economy will collapse along with it Why? Because never in our history, we have so much exposure and have put in so much money into this sector. We are no longer talking about a homeownership of 85% or 90% in Singapore population, but a probably above 300%. Because since the ppty boom in 2004, many individual has bought and owned up to 3 or 4 ppty each. This is a very serious matter, folks! "
"Singapore economy is not going to collapse with property market crashing.. most people are just living in their properties so when prices go or down, it has no real impact .. those people who bought 3-4 properties will have to sell cheap and lose money if they can't hold.. period... people with the money to buy cheap will gain ... just a transfer of wealth .. The people who should worry are the people who are highly leveraged, like the developers and speculators. If banks have to write-off, then shareholders of banks will also suffer ... "
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Monday, October 13, 2008
About this Blog
From the onset, we've been in denial, defending the Asian economy with new theory like the "Decoupling Theory". Though the Asian financial institutions look strong so far, if you look around with more caution, you'll see hairline cracks in several Asian economies esp those with a bloated real estate bubble. Whether these hairline cracks will erupt into a full blown 1997 Asian financial crisis is yet to be seen. I'd want to remain cautious.
Even if the Asian financial institutions remain strong, which is what we all want to see, the Asian economies are undoubtedly going to be hit. Singapore economy, for one, has already fallen victim.
I won't say that this is going to worse for us than the Asian financial crisis but I won't be too quick to discount the possibility either.
In short, I'd not encourage property hunters to step into the market just yet. There should be no action until price is down considerably (for me, it's 40% and more).
Posted by Anonymous in the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Compare current US Subprime Crisis with Asian Financial Crisis
I strongly disagree that the current US financial crisis is not as bad as the Asian financial crisis.From the onset, we've been in denial, defending the Asian economy with new theory like the "Decoupling Theory". Though the Asian financial institutions look strong so far, if you look around with more caution, you'll see hairline cracks in several Asian economies esp those with a bloated real estate bubble. Whether these hairline cracks will erupt into a full blown 1997 Asian financial crisis is yet to be seen. I'd want to remain cautious.
Even if the Asian financial institutions remain strong, which is what we all want to see, the Asian economies are undoubtedly going to be hit. Singapore economy, for one, has already fallen victim.
I won't say that this is going to worse for us than the Asian financial crisis but I won't be too quick to discount the possibility either.
In short, I'd not encourage property hunters to step into the market just yet. There should be no action until price is down considerably (for me, it's 40% and more).
Posted by Anonymous in the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
That's why property prices always fall in a recession.
Property price will rise? Dream on. Not till the recession is over.
Posted by Anonynouse at the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Negative Mortgage Rate will boost Property Price?
When recession comes, people don't go take out a million dollar loan to buy a property just because of negative real interest. Most are fearing for their jobs.That's why property prices always fall in a recession.
Property price will rise? Dream on. Not till the recession is over.
Posted by Anonynouse at the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Friday, October 10, 2008
About this Blog
According to the latest data from Monetary Authority of Singapore (MAS), Singapore economic growth contracted by -6.3 quarter to quarter which brings Singapore into a technical recession, the first since the SARS Crisis 6 years ago. MAS also pointed out that the outlook for the global economy has deteriorated and a more severe global downturn cannot be discounted. Singapore government has reduced its economic growth forecast from 4%-5% to 3%.
One should bear in mind that the quarter 3 economic growth does not yet reflect the impact of the Wall Street meltdown that occurred largely in September 2008. The impact is likely to be felt more acutely in 2009. Economists have forecasted that the 2009 is likely to be worse than 2008. They have in fact warned that in the worst-case scenario, Singapore economic growth may even contract for next year.
Meanwhile, labour chief Lim Swee Say has told Singaporeans to be prepared for retrenchment ahead. He also said a decline in real wages is likely to happen this year.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Economic Growth Q3 2008 down -6.3%: Singapore in Recession
Singapore Economy is in Recession
According to the latest data from Monetary Authority of Singapore (MAS), Singapore economic growth contracted by -6.3 quarter to quarter which brings Singapore into a technical recession, the first since the SARS Crisis 6 years ago. MAS also pointed out that the outlook for the global economy has deteriorated and a more severe global downturn cannot be discounted. Singapore government has reduced its economic growth forecast from 4%-5% to 3%.
Singapore Economic Outlook Worse for 2009 than 2008
One should bear in mind that the quarter 3 economic growth does not yet reflect the impact of the Wall Street meltdown that occurred largely in September 2008. The impact is likely to be felt more acutely in 2009. Economists have forecasted that the 2009 is likely to be worse than 2008. They have in fact warned that in the worst-case scenario, Singapore economic growth may even contract for next year.
Singaporeans to Prepare for Retrenchment & Wage Decline
Meanwhile, labour chief Lim Swee Say has told Singaporeans to be prepared for retrenchment ahead. He also said a decline in real wages is likely to happen this year.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Thursday, October 9, 2008
About this Blog
In a report, Merrill investment house has cut the portfolio weighting for Singapore to 4.27% - below the benchmark weighting of 5.14%. This follows downgrades in property and banking sectors which together account for around half of market capital. The report adds that Singapore is exposed to the global slowdown more than other countries, as its exports-to-GDP ratio is the highest in the region
Merrill research house thinks any chance for a recovery in the second half of this year has disappeared with the deterioration in the economy. Citing demand weak and high inventories, rising debt cost and lower rentals ahead; as reasons for its gloomy outlook, it expects residential prices to fall by 10 per cent this year and 25 per cent in 2009.
Merill believes a sustained slowdown in the property market will impact loan growth in 2009. It expects loan growth to slow to mid-single digits from the current 26% year-on-year, while weaker capital markets and prevailing risk-aversion in the market for wealth management products will cause market-sensitive revenues to decline.
May also want to read:
Singapore Property Developers' Rising Debts
Singapore Economy in the face of Worst Crisis since 1930s
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Merrill: Downgrades Singapore property and banking sectors, said residential property prices to fall 35%
Merrill reduces Singapore to heavy underweight
In a report, Merrill investment house has cut the portfolio weighting for Singapore to 4.27% - below the benchmark weighting of 5.14%. This follows downgrades in property and banking sectors which together account for around half of market capital. The report adds that Singapore is exposed to the global slowdown more than other countries, as its exports-to-GDP ratio is the highest in the region
Merrill expects Singapore residential property prices to fall by 10% this year and 25% in 2009
Merrill research house thinks any chance for a recovery in the second half of this year has disappeared with the deterioration in the economy. Citing demand weak and high inventories, rising debt cost and lower rentals ahead; as reasons for its gloomy outlook, it expects residential prices to fall by 10 per cent this year and 25 per cent in 2009.
Merrill said Singapore Banking Sector loan growth and wealth management products to suffer
Merill believes a sustained slowdown in the property market will impact loan growth in 2009. It expects loan growth to slow to mid-single digits from the current 26% year-on-year, while weaker capital markets and prevailing risk-aversion in the market for wealth management products will cause market-sensitive revenues to decline.
May also want to read:
Singapore Property Developers' Rising Debts
Singapore Economy in the face of Worst Crisis since 1930s
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Wednesday, October 8, 2008
About this Blog
Property sales down 81.4 per cent from August 2007. (1720 Aug 2007->320 Aug 2008)
GDP down 50% (2007 7.5% --> 2008 likely 4% or less)
Property price only down 1.8%? Sustainable? The support base is eroding month after month. If (when) it collapses, it will likely be serious.
Nicholas Mak:
‘As (these) problems persisted, it was only a matter of time before overall private home prices started to fall as well. Whatever price gain was achieved in the first half of this year will be given up in H2, resulting in flat prices for the whole of 2008.’
CB Richard Ellis’ executive director Li Hiaw Ho.:
‘Prices, which are now under tremendous pressure, are likely to decline again in Q4,’
DTZ’s Ms Chua.:
Even the OCR is unlikely to be immune. ‘While it has been performing better, prices in that area will also drop if the economic slowdown continues,’
Posted by Ann in the Singapore Property Forum.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Price Under Tremendous Pressure
Stock market fallen 45%.(STI 3800->2100)Property sales down 81.4 per cent from August 2007. (1720 Aug 2007->320 Aug 2008)
GDP down 50% (2007 7.5% --> 2008 likely 4% or less)
Property price only down 1.8%? Sustainable? The support base is eroding month after month. If (when) it collapses, it will likely be serious.
Nicholas Mak:
‘As (these) problems persisted, it was only a matter of time before overall private home prices started to fall as well. Whatever price gain was achieved in the first half of this year will be given up in H2, resulting in flat prices for the whole of 2008.’
CB Richard Ellis’ executive director Li Hiaw Ho.:
‘Prices, which are now under tremendous pressure, are likely to decline again in Q4,’
DTZ’s Ms Chua.:
Even the OCR is unlikely to be immune. ‘While it has been performing better, prices in that area will also drop if the economic slowdown continues,’
Posted by Ann in the Singapore Property Forum.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
I tried to tell him that no matter how sure he is of his real estate investment, diversification is important to reduce his risk. He'd hear nothing of that.
"Stock market is too risky," said this friend of mine.
"But what make you think real estate is less risky?" I said, "You can buy just a few thousand dollars worth of stocks.. money you can afford to lose but your real estate investment is heavily leveraged and if you run into cash-flow problem, you're going to lose big time."
He'd hear nothing of that. He just went on and on with the IRs .. blah blah blah.
That was in mid 2007. This year, the real estate outlook started to sour. He's not only worried about his 2 mortgages, he's worrying about his job too. He's really got all his eggs in one basket. But isn't that true for so many Singaporeans?
Read more about: How to invest your money safely
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Real Estate Investment Tip: Don't put all your eggs in one basket
I know of a friend who works in the real estate industry and who owns 3 properties, 2 of which are still on mortgage. I asked him why he put all his eggs in real estate. He said property will always appreciate in the long run and with the IRs coming blah blah blah .... He also thinks that working in the real estate industry gives him the upperhand in understanding market movement.I tried to tell him that no matter how sure he is of his real estate investment, diversification is important to reduce his risk. He'd hear nothing of that.
"Stock market is too risky," said this friend of mine.
"But what make you think real estate is less risky?" I said, "You can buy just a few thousand dollars worth of stocks.. money you can afford to lose but your real estate investment is heavily leveraged and if you run into cash-flow problem, you're going to lose big time."
He'd hear nothing of that. He just went on and on with the IRs .. blah blah blah.
That was in mid 2007. This year, the real estate outlook started to sour. He's not only worried about his 2 mortgages, he's worrying about his job too. He's really got all his eggs in one basket. But isn't that true for so many Singaporeans?
Read more about: How to invest your money safely
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Monday, October 6, 2008
About this Blog
Ann wrote:
Singapore has to constantly reinvent itself just to maintain our current prosperity which is derived from being premium compared to our neighbours. For the next 5-10 years, current efforts (eg tourism, biotech, financial services, high-end manufacturing.) may succeed. For now, its not a done deal.
Running a tight ship can get you far and fast, but its still a small ship. Eventually, the limitation of size will catch up with us. We can’t keep reclaiming land, and we can’t keep increasing the population. This may become increasingly the rate-limiting factor to growth. Not enough space for roads, water, recreation, factories, offices, homes.
Our neighbours are also reinventing themselves. Tourism, financial services, high-end manufacturing, ports and shipping, reformations in governance (transparency, stamping out corruption, law-making etc)… China, India, HK, Malaysia are developing and eroding our lead. Why do it here when you can do it cheaper and nearer to where the real action and growth is? Our ability to command a price premium may weaken.
Last year, MM Lee was interviewed about Singapore’s long term prospects. He said that for now, we could attract foreign talents, but in 20-30 years time, once China, India has caught up, they won’t want to come here anymore.
20-30 years time is exactly the time frame of a mortgage loan. Lots of things could happen.
Anonymous wrote:
i agree with ann that the long term outlook of Singapore is very uncertain... even the medium outlook, which was rosy before the subprime crisis, is somewhat downcast ... the short tem outlook of course is a mess for those who are highly leveraged including the speculators and the developers ...
As a full-fledged bear, like Ann, I'd want to wait and see how history unfold itself before I decide how much money is the Singapore real estate really worthed .. one thing I am sure, it's definitely not worthed its current price.
Another anonymous wrote:
Sorry but I'm only bearish in the current and medium term. In the long term, Singapore still has a lot of things going for itself. Stable government, low crime, pro-business policies, solid worker base, large local companies that venture overseas, not to mention government war chest which runs to hundreds of billions of dollars. If you divide government chest with the total number of people, each Singaporean would have tens of thousands if not hundreds of thousands. Then consider others countries (US for example) which borrows money, instead of lending. Each citizen of these countries, whether rich or poor, has a debt to pay. Their government take it out from the citizens thru various taxes. Due to economic uncertainties and price bubble, home prices should come down to more appropriate levels. But I don't see the Singapore economy collapsing in the future or even taking a lower position in the world economics.
Aitan wrote:
As long as our immediate neighbors don't play catch up at our playing level, Singapore should be still able to maintain its competitive edge. Though that its true, we also don't wish that they fall too far back in the race to prosperity. Having very poor neighbors when we lead and bound are definitely not in our advantage.
Remember what MM always said...Singapore can't grow and prosper if this region is not stable politically, economically and in constant conflicts. Look at 1950 to early 60's, you expect our property price to rise or for that matter, the whole economy to prosper?
Always bear in mind that the rest of the world view Singapore not as a stand alone country but just a small and tiny city state situated within a region with few hundred million people.
To expand a little further, Singapore is within a bigger spectrum of Asia. Just imagine the repercussion if North Korea goes to war with South Korea or China take Taiwan by force. Do you still think Singapore can survive on its own like Australia, without much regards to what happen in the outside world? If then, Australia still feel the pain if US falls sick.
"Stable govt, low crime, pro-business policies, solid worker base, large local companies that venture overseas, not to mention govt war chest which runs to hundreds of billions of dollars" as mentioned by Ann are all but prerequisite as we differentiate ourselves among our immediate neighbors.
Ultimately, Singapore's survival depends not only from within but also others factors that are not under our control.
With that said, I agreed with MM that Singapore should still be doing alright within the next ten years.
Ann wrote:
That's the problem. We can only be fairly confident about the next 10 years. At 10-20 years, competition may heat up. At 30 yrs (by the time we've paid up the mortgage), who knows?
Lots of foreign funds that were buying into Singapore property last year... how long is their investment horizon? My guess up to 5-10yrs, then KIV cut and run. Beyond that, probably unplanned.
Actually, some of them may even have been very short-term, speculative type. They were happy to pour money in whilst is seemed like a sure bet, easy money in 2-3yrs. But now, it is no longer certain, its not worth their while. That may explain why Kuwait Investhment House let their option expire, and why there are so few sales this year.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Property Outlook: Short, Medium and Long Term Outlook
What do Singapore property buyers think of the short term, medium term and long term outlook of Singapore property market? Do they agree with the Singapore political leaders that this is the most promising decade for Singapore? The following are some views extracted from the Singapore Property Forum:Ann wrote:
Singapore has to constantly reinvent itself just to maintain our current prosperity which is derived from being premium compared to our neighbours. For the next 5-10 years, current efforts (eg tourism, biotech, financial services, high-end manufacturing.) may succeed. For now, its not a done deal.
Running a tight ship can get you far and fast, but its still a small ship. Eventually, the limitation of size will catch up with us. We can’t keep reclaiming land, and we can’t keep increasing the population. This may become increasingly the rate-limiting factor to growth. Not enough space for roads, water, recreation, factories, offices, homes.
Our neighbours are also reinventing themselves. Tourism, financial services, high-end manufacturing, ports and shipping, reformations in governance (transparency, stamping out corruption, law-making etc)… China, India, HK, Malaysia are developing and eroding our lead. Why do it here when you can do it cheaper and nearer to where the real action and growth is? Our ability to command a price premium may weaken.
Last year, MM Lee was interviewed about Singapore’s long term prospects. He said that for now, we could attract foreign talents, but in 20-30 years time, once China, India has caught up, they won’t want to come here anymore.
20-30 years time is exactly the time frame of a mortgage loan. Lots of things could happen.
Anonymous wrote:
i agree with ann that the long term outlook of Singapore is very uncertain... even the medium outlook, which was rosy before the subprime crisis, is somewhat downcast ... the short tem outlook of course is a mess for those who are highly leveraged including the speculators and the developers ...
As a full-fledged bear, like Ann, I'd want to wait and see how history unfold itself before I decide how much money is the Singapore real estate really worthed .. one thing I am sure, it's definitely not worthed its current price.
Another anonymous wrote:
Sorry but I'm only bearish in the current and medium term. In the long term, Singapore still has a lot of things going for itself. Stable government, low crime, pro-business policies, solid worker base, large local companies that venture overseas, not to mention government war chest which runs to hundreds of billions of dollars. If you divide government chest with the total number of people, each Singaporean would have tens of thousands if not hundreds of thousands. Then consider others countries (US for example) which borrows money, instead of lending. Each citizen of these countries, whether rich or poor, has a debt to pay. Their government take it out from the citizens thru various taxes. Due to economic uncertainties and price bubble, home prices should come down to more appropriate levels. But I don't see the Singapore economy collapsing in the future or even taking a lower position in the world economics.
Aitan wrote:
As long as our immediate neighbors don't play catch up at our playing level, Singapore should be still able to maintain its competitive edge. Though that its true, we also don't wish that they fall too far back in the race to prosperity. Having very poor neighbors when we lead and bound are definitely not in our advantage.
Remember what MM always said...Singapore can't grow and prosper if this region is not stable politically, economically and in constant conflicts. Look at 1950 to early 60's, you expect our property price to rise or for that matter, the whole economy to prosper?
Always bear in mind that the rest of the world view Singapore not as a stand alone country but just a small and tiny city state situated within a region with few hundred million people.
To expand a little further, Singapore is within a bigger spectrum of Asia. Just imagine the repercussion if North Korea goes to war with South Korea or China take Taiwan by force. Do you still think Singapore can survive on its own like Australia, without much regards to what happen in the outside world? If then, Australia still feel the pain if US falls sick.
"Stable govt, low crime, pro-business policies, solid worker base, large local companies that venture overseas, not to mention govt war chest which runs to hundreds of billions of dollars" as mentioned by Ann are all but prerequisite as we differentiate ourselves among our immediate neighbors.
Ultimately, Singapore's survival depends not only from within but also others factors that are not under our control.
With that said, I agreed with MM that Singapore should still be doing alright within the next ten years.
Ann wrote:
That's the problem. We can only be fairly confident about the next 10 years. At 10-20 years, competition may heat up. At 30 yrs (by the time we've paid up the mortgage), who knows?
Lots of foreign funds that were buying into Singapore property last year... how long is their investment horizon? My guess up to 5-10yrs, then KIV cut and run. Beyond that, probably unplanned.
Actually, some of them may even have been very short-term, speculative type. They were happy to pour money in whilst is seemed like a sure bet, easy money in 2-3yrs. But now, it is no longer certain, its not worth their while. That may explain why Kuwait Investhment House let their option expire, and why there are so few sales this year.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
Oct 6, 2008 Expect longer slowdown
www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_286417.html
Growth is slowing in the US, Europe, Japan, and even China and India, he noted. 'So globally the economy is slowing down. This is a fact we cannot escape.'
In tandem, unemployment is expected to increase.
Exuding confidence about the country's strong fundamentals, he told Singaporeans to keep their eye on the medium- to long-term future, as the short-term problems can be dealt with.
Politicians speeches' tend to be baised towards the positive. It wasn't so long ago that Bush, Bernanke and Paulson were reassuring Americans that economic 'fundamentals' were strong. Yet now they are warning of financial armageddon and that they are facing the worst crisis since 1930's.
How big is this going to get? You have to read between the lines... we can't escape, longer downturn, unemployment expected to increase, growth may dip below forecast, we have the reserves to provide relief measures...
Why battle down the hatches, unless they see a storm coming? I don't think you can expect the worst crisis since the 1930's to be anything mild.
Posted by anonymous in the Singapore Property Forum.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Economic Outlook: Worst crisis since the 1930's
I'm just going to comment on a few excerpts from the report:Oct 6, 2008 Expect longer slowdown
www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_286417.html
Growth is slowing in the US, Europe, Japan, and even China and India, he noted. 'So globally the economy is slowing down. This is a fact we cannot escape.'
In tandem, unemployment is expected to increase.
Exuding confidence about the country's strong fundamentals, he told Singaporeans to keep their eye on the medium- to long-term future, as the short-term problems can be dealt with.
Politicians speeches' tend to be baised towards the positive. It wasn't so long ago that Bush, Bernanke and Paulson were reassuring Americans that economic 'fundamentals' were strong. Yet now they are warning of financial armageddon and that they are facing the worst crisis since 1930's.
How big is this going to get? You have to read between the lines... we can't escape, longer downturn, unemployment expected to increase, growth may dip below forecast, we have the reserves to provide relief measures...
Why battle down the hatches, unless they see a storm coming? I don't think you can expect the worst crisis since the 1930's to be anything mild.
Posted by anonymous in the Singapore Property Forum.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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, October 5, 2008
About this Blog
According to Credit Suisse, by Q2 2008, gearing for big-cap developers rose to 52%, while for smaller developers 242%. It reckons that small-cap developers could put added pressure on the property market due to their high gearing. Credit Suisse says, 'This reinforces our belief that small developers will drive the price cuts in the near future in the primary markets, especially in the prime and mid-high end, as some of them have acquired prime sites at peak price.'
Credit Suisse expects writedowns by developers. CapitaLand, for instance, could write down as much as $200 million on its Farrer Court and Char Yong Gardens projects. This is based on an estimated breakeven price of $1429 psf and an estimated average selling price of $1280 psf for Farrer Court project. For Char Yong Gardens, the estimated breakeven figure is $2564 psf and the estimated average selling price $1960 psf. In 1998 when the property market crashed with the eruption of the Asian Financial Crisis, CapitaLand and Keppel Land wrote down between $900 million and $2.1 billion. Credit Suisse says they could 'do so again due to aggressive expansions and acquisitions, and substantial revaluation gains in recent years'.
In Credit Suisse's analysis, small-cap developers include Aspial, Koh Brothers, Heeton, Hiap Hoe, Ho Bee, Roxy, SC Global, Sim Lian, Sing Holdings, Soilbuild and Tee International.
For the full report, read: Write-downs could see property stocks slip further
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Property Developers Gearing Rose Sharply in Q2 2008, Write-downs Loom
Big developers gearing rose to 52%, while small developers 242%
According to Credit Suisse, by Q2 2008, gearing for big-cap developers rose to 52%, while for smaller developers 242%. It reckons that small-cap developers could put added pressure on the property market due to their high gearing. Credit Suisse says, 'This reinforces our belief that small developers will drive the price cuts in the near future in the primary markets, especially in the prime and mid-high end, as some of them have acquired prime sites at peak price.'
Write-downs signal developers' acceptance of price falls
Credit Suisse expects writedowns by developers. CapitaLand, for instance, could write down as much as $200 million on its Farrer Court and Char Yong Gardens projects. This is based on an estimated breakeven price of $1429 psf and an estimated average selling price of $1280 psf for Farrer Court project. For Char Yong Gardens, the estimated breakeven figure is $2564 psf and the estimated average selling price $1960 psf. In 1998 when the property market crashed with the eruption of the Asian Financial Crisis, CapitaLand and Keppel Land wrote down between $900 million and $2.1 billion. Credit Suisse says they could 'do so again due to aggressive expansions and acquisitions, and substantial revaluation gains in recent years'.
In Credit Suisse's analysis, small-cap developers include Aspial, Koh Brothers, Heeton, Hiap Hoe, Ho Bee, Roxy, SC Global, Sim Lian, Sing Holdings, Soilbuild and Tee International.
For the full report, read: Write-downs could see property stocks slip further
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Thursday, October 2, 2008
About this Blog
Based on URA estimated price index of private residential property, prices fell from 177.5 points in the Q2 2008 to 174.3 points in the Q3 2008. This represents a decline of 1.8%, compared with the 0.2% increase in the Q2.
This may mark the beginning of the decline in Singapore private property price which has held up until now despite the eruption of the subprime crisis in Oct 2007. Going forward, the Singapore private property market is likely to get gloomier as the global financial crisis accelerates and the Singapore economy looks set to enter into a recession in Q3 2008 that will likely extend to 2009.
May also want to read:
History of Singapore Property 1960 to 2008
Write-downs signal developers acceptance of price fall
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
URA Q3 2008 Real Estate Statistics Flash: Private Property Price Fell
Private Property Price Fell 1.8%
Based on URA estimated price index of private residential property, prices fell from 177.5 points in the Q2 2008 to 174.3 points in the Q3 2008. This represents a decline of 1.8%, compared with the 0.2% increase in the Q2.
This may mark the beginning of the decline in Singapore private property price which has held up until now despite the eruption of the subprime crisis in Oct 2007. Going forward, the Singapore private property market is likely to get gloomier as the global financial crisis accelerates and the Singapore economy looks set to enter into a recession in Q3 2008 that will likely extend to 2009.
May also want to read:
History of Singapore Property 1960 to 2008
Write-downs signal developers acceptance of price fall
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
About this Blog
HDB’s flash estimate of the Q3 2008 Resale Price Index (RPI) is 137.4, an increase of 4.2% over the Q2 2008. Though slightly lower than the 4.5% increase in Q2 2008, the increase in HDB resale price is still very strong and reflects the continuous supply crunch in the HDB resale market. Up until now, the HDB resale market does not seem to suffer any subprime crisis. The strong demand has been driven largely by the "new citizens".
May also want to read:
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
HDB Q3 2008 Real Estate Statistics Flash: HDB Resale Price Rose 4.2% in Q3 2008
HDB Resale Price Rose 4.2% in Q3 2008
HDB’s flash estimate of the Q3 2008 Resale Price Index (RPI) is 137.4, an increase of 4.2% over the Q2 2008. Though slightly lower than the 4.5% increase in Q2 2008, the increase in HDB resale price is still very strong and reflects the continuous supply crunch in the HDB resale market. Up until now, the HDB resale market does not seem to suffer any subprime crisis. The strong demand has been driven largely by the "new citizens".
May also want to read:
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
Wednesday, October 1, 2008
About this Blog
Most economists have already cut their estimates of Singapore's 2008 growth to less than 4%, the lower limit of the government forecast.
Citigroup economist Kit Wei Zheng pared his GDP growth forecasts to 2.8% for 2008 and 2.5% for 2009. He reckons the upcoming Q3 2008 flash estimates will likely show a 1% dip from a year ago, and a 7.4% dip from Q2 2008. His Citi analyst colleagues say the severity and duration of the recession is still unclear, and will depend on how the global downturn and global credit crunch pan out.
During the 1985-86 and the 2001 recessions, each saw 4 quarters of year-on-year GDP contraction, while the 1997-98 Asian crisis saw 3 quarters. The 2003 Sars recession was a 'short' single-quarter downturn, due largely to successful disease containment rather than economic factors.
But now more than half of the world's economies (notably the major and big ones) are at risk of recession - with the US and the UK, in particular, on the brink of a systemic financial crisis. Singapore's financial services will soon feel the impact of the credit crunch and global consolidation - and job growth may turn negative next year, the Citi report says.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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 Economy Outlook 2008-2009: Economists say Recession likely to be long
Citigroup economists predicted that Singapore economy will likely go into a long recession that will last several quarters and the worst will likely occur in H1 2009.Most economists have already cut their estimates of Singapore's 2008 growth to less than 4%, the lower limit of the government forecast.
Citigroup economist Kit Wei Zheng pared his GDP growth forecasts to 2.8% for 2008 and 2.5% for 2009. He reckons the upcoming Q3 2008 flash estimates will likely show a 1% dip from a year ago, and a 7.4% dip from Q2 2008. His Citi analyst colleagues say the severity and duration of the recession is still unclear, and will depend on how the global downturn and global credit crunch pan out.
During the 1985-86 and the 2001 recessions, each saw 4 quarters of year-on-year GDP contraction, while the 1997-98 Asian crisis saw 3 quarters. The 2003 Sars recession was a 'short' single-quarter downturn, due largely to successful disease containment rather than economic factors.
But now more than half of the world's economies (notably the major and big ones) are at risk of recession - with the US and the UK, in particular, on the brink of a systemic financial crisis. Singapore's financial services will soon feel the impact of the credit crunch and global consolidation - and job growth may turn negative next year, the Citi report says.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
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
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