Showing posts with label 0.5 Property News Analysis Sept 2008. Show all posts
Showing posts with label 0.5 Property News Analysis Sept 2008. Show all posts
Saturday, September 27, 2008
About this Blog
May also want to read:
Property Buying Tips: Lessons from Boom-Bust Property Cycles of the World
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
Singapore Property Buyers increasingly attracted to Overseas Property Investments
According to the Asia Property Trends Survey 2008 from iProperty, there is a decrease in the number of property investors buying in Singapore with only 54% said they would purchase a property from the Singapore private property market. This is a significant fall from 2007 when 78% of Singapore property investors chose Singapore property as their prime interest. This indicates that overseas property investments are becoming increasingly more attractive to Singapore property investors. The geograhical shift in real estate interest should not come as surprise as property price remained all time high in Singapore, while property prices in many parts of the world have declined.(The Global Property Guide, a property research group, reported that for the first half of year 2008, property prices fell in 21 of the 33 countries.)May also want to read:
Property Buying Tips: Lessons from Boom-Bust Property Cycles of the World
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, September 23, 2008
About this Blog
Global property investor LaSalle Investment Management, which has $6 billion of real estate assets in Asia, says Singapore residential property is "fully priced".
Jack Chandler, LaSalle Investment Asia-Pacific Chief Executive Officer, said that by global standards, Singapore luxury apartments are very expensive and that at some point, affordability and common sense have to come in. Singapore property price increase has already surpassed those of regional rivals such as Hong Kong.
Property developers and agents say fewer deals were struck last month. Official data from URA shows that number of sales for private property has declined by more than 80% in August 2008 year-on-year.
"I'm nervous because I don't expect prices to rise anytime soon. The signals aren't good," said Charles Wong, who paid more than $1M for a one-bedroom downtown apartment in April 2008.
"In terms of actual occupants, there will be excess supply by 2009," said Jones Lang LaSalle Head of Research Chua Yang Liang. He estimates the number of private property units that will be completed in 2009 to be nearly four times that expected this year.
At least four out of five Singaporeans live in state-subsidised high-rise flats, leaving the private home market dependent on upper-income residents and foreigners. Investment firm Emirates Tarian Capital is betting these foreign investors, who comprise nearly half the buyers in most projects, will focus increasingly on high-end homes. "Demand is going to be selective and for branded, quality projects where the quantity is limited," said Kunalan Sivapuniam, managing partner of the firm, which is investing in two high-rises including one 30-storey block equipped with individual lifts to bring owners' cars up to each apartment.
Analysts say a global credit crunch could constrain Singapore developers' ability to offer Deferred Payment Scheme (DPS) that allow buyers to make a 10%-20% deposit and delay the bulk of payment until the TOP of the property. Up to 90% of buyers for some projects opted for DPS during the recent property boom.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Private Property Market Increasingly Vulnerable to Downturn, say analysts
Private residential property prices may still be holding for now but analysts say the market is increasingly vulnerable to a sudden downturn.Singapore Private Residential Property is Fully Priced
Global property investor LaSalle Investment Management, which has $6 billion of real estate assets in Asia, says Singapore residential property is "fully priced".
Singapore Luxury Residential Property are Expensive by global standards
Jack Chandler, LaSalle Investment Asia-Pacific Chief Executive Officer, said that by global standards, Singapore luxury apartments are very expensive and that at some point, affordability and common sense have to come in. Singapore property price increase has already surpassed those of regional rivals such as Hong Kong.
Sharp Decline in Private Property Sales
Property developers and agents say fewer deals were struck last month. Official data from URA shows that number of sales for private property has declined by more than 80% in August 2008 year-on-year.
Property Investors are getting nervous
"I'm nervous because I don't expect prices to rise anytime soon. The signals aren't good," said Charles Wong, who paid more than $1M for a one-bedroom downtown apartment in April 2008.
Excess Supply of Private Property by 2009
"In terms of actual occupants, there will be excess supply by 2009," said Jones Lang LaSalle Head of Research Chua Yang Liang. He estimates the number of private property units that will be completed in 2009 to be nearly four times that expected this year.
Foreign Investors More Selective, Focus Increasingly on High-End Properties
At least four out of five Singaporeans live in state-subsidised high-rise flats, leaving the private home market dependent on upper-income residents and foreigners. Investment firm Emirates Tarian Capital is betting these foreign investors, who comprise nearly half the buyers in most projects, will focus increasingly on high-end homes. "Demand is going to be selective and for branded, quality projects where the quantity is limited," said Kunalan Sivapuniam, managing partner of the firm, which is investing in two high-rises including one 30-storey block equipped with individual lifts to bring owners' cars up to each apartment.
Credit Crunch May Constrain Developers' Ability to Offer Deferred Payments
Analysts say a global credit crunch could constrain Singapore developers' ability to offer Deferred Payment Scheme (DPS) that allow buyers to make a 10%-20% deposit and delay the bulk of payment until the TOP of the property. Up to 90% of buyers for some projects opted for DPS during the recent property boom.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
‘There has been an increase in demand for new flats,’ HDB chief executive Tay Kim Poh said at a press briefing on the board’s annual report. ‘We have been ramping up the building programme.’ Mr Tay also said that HDB will adjust supply for 2009 accordingly to meet demand. In the light of rising construction costs, he reaffirmed HDB’s commitment to keep HDB flats affordable. According to HDB, a 4-room flat can cost about $300,000 to develop today, taking into account land, building and other costs. This is higher than the subsidised price of a 4-room flat sold by HDB at $200K to $260K.
To ensure that the basic housing needs of people are met, PropNex’s Mr Ismail said that HDBs may have to review certain policies, such as the income ceiling for HDB flat applicants, and perhaps even abolishing the resale levy.’
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
HDB BTO Flats see Strong Demand
THE strong demand in the HDB market saw bookings of HDB's Build-To-Order (BTO) flats increase by 49%, and the number of unsold HDB flats reduce from 3500 to 1500. HDB will offer 8400 new Build-To-Order (BTO) flats in 2008, compared to the 6000 in 2007 and 2400 in 2006. Of the 8400 HDB flats slated for 2008, about 5000 have already been launched.‘There has been an increase in demand for new flats,’ HDB chief executive Tay Kim Poh said at a press briefing on the board’s annual report. ‘We have been ramping up the building programme.’ Mr Tay also said that HDB will adjust supply for 2009 accordingly to meet demand. In the light of rising construction costs, he reaffirmed HDB’s commitment to keep HDB flats affordable. According to HDB, a 4-room flat can cost about $300,000 to develop today, taking into account land, building and other costs. This is higher than the subsidised price of a 4-room flat sold by HDB at $200K to $260K.
To ensure that the basic housing needs of people are met, PropNex’s Mr Ismail said that HDBs may have to review certain policies, such as the income ceiling for HDB flat applicants, and perhaps even abolishing the resale levy.’
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, September 19, 2008
About this Blog
Property analysts are yet to assess the impact of the financial turmoil. If the financial turmoil takes a toll on the employment market causing people to lose their jobs and at the same time, foreign senior executives to have to pack for home; then both the Singapore commercial and residential property markets will be impacted.
The first to feel the brunt will be the rental market, said DTZ Tie Leung. ....
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Subprime Effect: Rent to Fall as Financial Turmoil worsens
My Paper reported today that the ongoing global financial turmoil is likely to take a toll on the rents for both commercial and residential properties in Singapore, according to property analysts.Property analysts are yet to assess the impact of the financial turmoil. If the financial turmoil takes a toll on the employment market causing people to lose their jobs and at the same time, foreign senior executives to have to pack for home; then both the Singapore commercial and residential property markets will be impacted.
The first to feel the brunt will be the rental market, said DTZ Tie Leung. ....
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Treelodge@punggol, first HDB econ-precinct, is 90% taken-up
Treelodge@punggol, the first HDB econ-precinct in Singapore, are 90% taken-up. The 3 to 5 room HDB flats in the precint are sold for $139K - $383K. Treelodge@punggol will be completed in 2011.May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Wednesday, September 17, 2008
About this Blog
Under the new HDB ruling, 90% of the units in a new Executive Condo will be set aside for first-timers during the first month of sales. First-time buyers with a household incomes of up to $10,000 are eligible to apply and are entitled to a $30,000 Housing Grant from the government.
Property consultants expect lukewarm response from developers despite the site’s attractive location. The recent financial crisis in the United States is likely to further dampen sentiment in the Singapore housing market, said Mr Nicholas Mak, director of research and consultancy at Knight Frank, who predicts fewer than five bids. Mr Mak thinks the site can fetch $73 million to $87 million, or $100 to $120 per sq ft (psf) of gross floor area. Finished units could be launched at $500 to $550 psf, based on recent home sales in the area.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Executive Condo Site @ Punggol for sale under Government Land Sales Confirmed List
An Executive Condominium (EC) housing site at Punggol is released for sale under the Government Land Sales Programme's confirmed list with a lease term of 99 years. The tender will close on Tuesday, 11 Nov 2008. The project completion period is ~2 years from the date of acceptance of tender. The site is near the Punggol MRT station, the Cove LRT station and the future Punggol Town Centre. Other amenities within walking distance include schools, shops and neigbourhood parks.Under the new HDB ruling, 90% of the units in a new Executive Condo will be set aside for first-timers during the first month of sales. First-time buyers with a household incomes of up to $10,000 are eligible to apply and are entitled to a $30,000 Housing Grant from the government.
Property consultants expect lukewarm response from developers despite the site’s attractive location. The recent financial crisis in the United States is likely to further dampen sentiment in the Singapore housing market, said Mr Nicholas Mak, director of research and consultancy at Knight Frank, who predicts fewer than five bids. Mr Mak thinks the site can fetch $73 million to $87 million, or $100 to $120 per sq ft (psf) of gross floor area. Finished units could be launched at $500 to $550 psf, based on recent home sales in the area.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, September 16, 2008
About this Blog
Most property consultants attributed the decline to August being the chinese Hungry Ghost month. However, such argument does not seem to be true during the property booms in the few past years when Singaporeans continued their buying sprees even during the Ghost month. "We can blame the ghosts partly, but I think it's more that all this bad news about global banks is creating a real sense of anxiety among homebuyers," said Colin Tan, Singapore-based head of research for property consultancy Chesterton International. Mr Tan felt that the private property market is basically dead. 'Sales cannot be zero, but at 320 homes sold I would describe the market as dead, there's no two ways about it,' he said.
Worries over Singapore's economic outlook have ended a four-year housing boom in the city-state, as price growth for private homes slowed sharply in the April-June period, rising just 0.2 percent in the quarter. Singapore manufacturing sector has already shown sign of being hit by the global crisis.
Analysts have dropped share price targets for developers such as CapitaLand, Keppel Landand City Developments amid the increasingly gloomy outlook of the Singapore private property market.
May also want to read:
HDB Upgraders trapped in "Buy High, Sell Low" in the boom-bust of the 90s
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Singapore Private Property Sales Down 81% in Aug 2008
Private home sales in Singapore dropped 81% in August from a year ago, to the lowest level since March 2008. Sales of new residential projects, comprising both houses and apartments, fell to 320 units from 1723 units sold in August last year, and sales were also down 64% from the 901 units taken up in July 2008, according URA data.Most property consultants attributed the decline to August being the chinese Hungry Ghost month. However, such argument does not seem to be true during the property booms in the few past years when Singaporeans continued their buying sprees even during the Ghost month. "We can blame the ghosts partly, but I think it's more that all this bad news about global banks is creating a real sense of anxiety among homebuyers," said Colin Tan, Singapore-based head of research for property consultancy Chesterton International. Mr Tan felt that the private property market is basically dead. 'Sales cannot be zero, but at 320 homes sold I would describe the market as dead, there's no two ways about it,' he said.
Worries over Singapore's economic outlook have ended a four-year housing boom in the city-state, as price growth for private homes slowed sharply in the April-June period, rising just 0.2 percent in the quarter. Singapore manufacturing sector has already shown sign of being hit by the global crisis.
Analysts have dropped share price targets for developers such as CapitaLand, Keppel Land
May also want to read:
HDB Upgraders trapped in "Buy High, Sell Low" in the boom-bust of the 90s
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Monday, September 15, 2008
About this Blog
According to the data shown on the chart, the numbers of HDB upgraders (buyers with HDB address) were 888 and 1,199 in Q1 2008 and Q2 2008 respectively, which gives an increase of 35%. At first glance, it'd indeed look like the HDB upgraders are back in the private property market. The jump off course is largely attributed to the continuous increase in HDB resale flat price.
But let's take a harder look at the given data. If you compare Q2 2007 and 2Q2 2008, also quarter on quarter, the numbers were 2,982 and 1,199; a decline of more than 50%. It clearly says that the HDB upgraders are also cooling off the property peak of mid-2007. Under the current economic turmoil, prudent HDB upgraders, I believe, would have preferred to stay put. Some may still remember the lesson learnt in the last Asian financial crisis when HDB upgraders bought into hugely over-priced private properties in the mid 90s peak, counting on the similarly soaring HDB resale price then to pay for their private properties. But came 1998, with Asian Financial Crisis, the property market crashed. These HDB upgraders found themselves trapped in a "buy HIGH, sell LOW" situation.
I remember specifically a friend who was caught in the above situation. In 1996 when he bought an uncompleted private condo at $1.2M, his HDB executive flat was valued at $600+K. But when his condo was completed in 1998 and he had to sell his HDB executive flat, it could only sell for $400+K. What's worse, that year he was retrenched ... (I can say for sure that this is a typical rather than a special case.)
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
HDB Upgraders: Lessons learnt from the Property Boom-Bust of the 90s
More HDB owners upgrading
My Paper reported on 11 sept 2008 in the article entitled "More HDB owners upgrading: Trend is fuelled by falling prices of private homes in Q2 this year" that HDB upgraders' share of private property bought in Q2 of 2008 has risen to 34% from the 28% in the previous quarter. The report was based on a DTZ's analysis of caveats captured by URA (Urban Redevelopment Authority of Singapore). The data is shown in the Number of Private Property Transactions Chart below:
HDB Upgraders: Lesson Learnt in the Boom-Bust of the 90s
But let's take a harder look at the given data. If you compare Q2 2007 and 2Q2 2008, also quarter on quarter, the numbers were 2,982 and 1,199; a decline of more than 50%. It clearly says that the HDB upgraders are also cooling off the property peak of mid-2007. Under the current economic turmoil, prudent HDB upgraders, I believe, would have preferred to stay put. Some may still remember the lesson learnt in the last Asian financial crisis when HDB upgraders bought into hugely over-priced private properties in the mid 90s peak, counting on the similarly soaring HDB resale price then to pay for their private properties. But came 1998, with Asian Financial Crisis, the property market crashed. These HDB upgraders found themselves trapped in a "buy HIGH, sell LOW" situation.
I remember specifically a friend who was caught in the above situation. In 1996 when he bought an uncompleted private condo at $1.2M, his HDB executive flat was valued at $600+K. But when his condo was completed in 1998 and he had to sell his HDB executive flat, it could only sell for $400+K. What's worse, that year he was retrenched ... (I can say for sure that this is a typical rather than a special case.)
Big Picture: Private Property Sales has declined sharply
As the chart above shows the total purchases of private property has declined sharply from 35,623 in 2007 to 6666 for the first half of this year. So HDB upgraders or otherwise, the number of buyers in the private property market is quickly shrinking. Given the increasing pace of deterioriation in the global economic turmoil which is likely to last to 2009 and possibly even 2010, the Singapore private property market looks set to decline further.May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Wednesday, September 10, 2008
About this Blog
Back here, the Singapore government has repeatedly stated that it'd not bail out any financial institutions. But then again, could the repercussions of any such collapse in the financial sector be so detrimental to our economy that our government may just be cornered into a bailout, just as it has happened to the US government? Are our banks even thinking of that?
There's concern among Singaporeans that the Singapore property market is too laden with debts fuelled by easy credits (the Deferred Payment Scheme, DPS). Undoubtedly, the Singapore goverment has been reputed for its tough stance. Undoubtedly too, the Singapore government has also acted.
In a bid to curb excessive speculation, the Government scrapped the DPS in October 2007. But since then, banks including OCBC and UOB have rolled out similar schemes in the form of the interest absorption scheme (IAS) and the zero-instalment scheme. Under the new schemes, buyers have to sign up for a bank loan for the property. Once the credit worthiness — based on factors including income level, credit history and repayment ability — is established, the buyer pays nothing more until the TOP is issued. Under the IAS, the developer pays the interest to the banks during that period. To this, Chesterton International associate director Colin Tan said: “The question is, how strict are the banks when they assess credit worthiness? The banks in the United States behaved irresponsibly; what is there to stop Singapore banks from behaving the same way?”
If depending on banks' self-regulation is insufficinet to deter a subprime style crisis in Singapore, should there not be more government regulation in this respect? For instance, government could raise the downpayment for property buyers who already own at least one property. This will not only reduce bank liability in the event of a mortgage default, it will also reduce the steep competition that first-time home buyers are facing from investors and especially, speculators out to make quick money out of them.
The current insurance to depositors of $20,000, or even if the insurance is increased to 100% of the deposit as someone has suggested, does not tackle the root of the problem. As we have learned from the US subprime mortgage crisis, insurance may not be of any good when a financial crisis, which originates from the reckless operations of banks, erupts. There should be government regulation to ensure that banks here are indeed lending in a responsible manner. Lenders must be required to meet the highest standard of ethical code with regard to protecting the money of their depositors.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Property Market: Is there sufficient government regulation to deter a subprime crisis
Americans have been blaming their government for the subprime crisis and have been calling for greater government regulations in the mortgage market. Recently, the US government has literally been cornered to bailout the two irresponsible giant lenders, Freddie Mac and Fannie Mae.Back here, the Singapore government has repeatedly stated that it'd not bail out any financial institutions. But then again, could the repercussions of any such collapse in the financial sector be so detrimental to our economy that our government may just be cornered into a bailout, just as it has happened to the US government? Are our banks even thinking of that?
There's concern among Singaporeans that the Singapore property market is too laden with debts fuelled by easy credits (the Deferred Payment Scheme, DPS). Undoubtedly, the Singapore goverment has been reputed for its tough stance. Undoubtedly too, the Singapore government has also acted.
In a bid to curb excessive speculation, the Government scrapped the DPS in October 2007. But since then, banks including OCBC and UOB have rolled out similar schemes in the form of the interest absorption scheme (IAS) and the zero-instalment scheme. Under the new schemes, buyers have to sign up for a bank loan for the property. Once the credit worthiness — based on factors including income level, credit history and repayment ability — is established, the buyer pays nothing more until the TOP is issued. Under the IAS, the developer pays the interest to the banks during that period. To this, Chesterton International associate director Colin Tan said: “The question is, how strict are the banks when they assess credit worthiness? The banks in the United States behaved irresponsibly; what is there to stop Singapore banks from behaving the same way?”
If depending on banks' self-regulation is insufficinet to deter a subprime style crisis in Singapore, should there not be more government regulation in this respect? For instance, government could raise the downpayment for property buyers who already own at least one property. This will not only reduce bank liability in the event of a mortgage default, it will also reduce the steep competition that first-time home buyers are facing from investors and especially, speculators out to make quick money out of them.
The current insurance to depositors of $20,000, or even if the insurance is increased to 100% of the deposit as someone has suggested, does not tackle the root of the problem. As we have learned from the US subprime mortgage crisis, insurance may not be of any good when a financial crisis, which originates from the reckless operations of banks, erupts. There should be government regulation to ensure that banks here are indeed lending in a responsible manner. Lenders must be required to meet the highest standard of ethical code with regard to protecting the money of their depositors.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, September 9, 2008
About this Blog
Capitaland has also sold several of its assets in China and Malaysia recently. At the end of Aug 2008, Capitaland has sold 30% stake in Invergin whose principal asset is a 50-story building in Kuala Lumpur. Last week, Capitaland sold its Chinese Office property, Capitaland Tower in Bejing.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Related article:
Brokers' Take - Business Time: Brokers' Take - 06 Sep 2008
Singapore Property Investment: Capitaland's risk of residential sites bought in 2007 peak price
Citigroup cuts Capitaland's target price from $5.47 to $3.90 based on a 20% discount from net asset value, citing the risk of Capitaland having to make provisions for its Singapore residential sites, several of which were bought during the property peak price of 2007.Capitaland has also sold several of its assets in China and Malaysia recently. At the end of Aug 2008, Capitaland has sold 30% stake in Invergin whose principal asset is a 50-story building in Kuala Lumpur. Last week, Capitaland sold its Chinese Office property, Capitaland Tower in Bejing.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Related article:
Brokers' Take - Business Time: Brokers' Take - 06 Sep 2008
Monday, September 8, 2008
About this Blog
Analysts, however, are divided over the likelihood of such a property crash coming about in 2010.
Chesterton International associate director Colin Tan pointed out that apart from the global economic uncertainty and financial market turmoil that has hurt demand, the situation is made worse by the fact that developers, buoyed by the property fever during the property boom in the last couple of years, now have “too many projects on their hands”. Adding to this, the buzz surrounding the F1 Grand Prix and the integrated resorts was “overplayed”, leading to “unrealistic” prime district property prices. Mr Tan added: “We know the market is declining, but yet, developers are still launching their properties.”
Standing out against the doomsayers, Wakefield and Cushman managing director Mr Donald Han said that the market is “still flushed with cash”. He said: “If you look at Singapore’s wealth management industry, it’s still growing. Any investors looking to put his money into Asia will first take into consideration political stability and economic growth.”
Dr Chua Yang Liang, head of South-east Asia research at Jones Lang LaSalle, felt it was “difficult to call”, adding that the construction crunch has slowed the pipeline, mitigating fears of an oversupply of private homes. Dr Chua said: “Looking at it on face value, yes, there’s a potential (it could happen). For those who bought the properties under the deferred payment scheme (DPS), they may have overstretched themselves. But nobody knows the financial background of these buyers.”
In a bid to curb excessive speculation, the Government scrapped the DPS last October. But since then, banks including OCBC and UOB have rolled out similar schemes in the form of the interest absorption scheme (IAS) and the zero-instalment scheme. Under the new schemes, buyers have to sign up for a bank loan for the property. Once the credit worthiness — based on factors including income level, credit history and repayment ability — is established, the buyer pays nothing more until the TOP is issued. Under the IAS, the developer pays the interest to the banks during that period.
Dr Chua noted that compared to the DPS, the new schemes allow banks to carry out more extensive checks on the prospective buyers before extending the loans. But some fear a replay of the United States sub-prime woes, sparked by mounting defaulted payments. Mr Tan said: “The question is, how strict are the banks when they assess credit worthiness? The banks in the United States behaved irresponsibly; what is there to stop Singapore banks from behaving the same way?”
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Analysts divided over "2010 Singapore Property Crash Scenario"
Last month Wing Tai Holdings’ chairman Mr Cheng Wai Keung, known for his candid assessments of the property market, warned that the peak prices in 2006-2007 could lead to a property crash in 2010 when these projects obtain their TOPs. Only a spectacular economic recovery would stop the property market from being flooded with these “expensive apartments”, according to Mr Cheng.Analysts, however, are divided over the likelihood of such a property crash coming about in 2010.
Chesterton International associate director Colin Tan pointed out that apart from the global economic uncertainty and financial market turmoil that has hurt demand, the situation is made worse by the fact that developers, buoyed by the property fever during the property boom in the last couple of years, now have “too many projects on their hands”. Adding to this, the buzz surrounding the F1 Grand Prix and the integrated resorts was “overplayed”, leading to “unrealistic” prime district property prices. Mr Tan added: “We know the market is declining, but yet, developers are still launching their properties.”
Standing out against the doomsayers, Wakefield and Cushman managing director Mr Donald Han said that the market is “still flushed with cash”. He said: “If you look at Singapore’s wealth management industry, it’s still growing. Any investors looking to put his money into Asia will first take into consideration political stability and economic growth.”
Dr Chua Yang Liang, head of South-east Asia research at Jones Lang LaSalle, felt it was “difficult to call”, adding that the construction crunch has slowed the pipeline, mitigating fears of an oversupply of private homes. Dr Chua said: “Looking at it on face value, yes, there’s a potential (it could happen). For those who bought the properties under the deferred payment scheme (DPS), they may have overstretched themselves. But nobody knows the financial background of these buyers.”
In a bid to curb excessive speculation, the Government scrapped the DPS last October. But since then, banks including OCBC and UOB have rolled out similar schemes in the form of the interest absorption scheme (IAS) and the zero-instalment scheme. Under the new schemes, buyers have to sign up for a bank loan for the property. Once the credit worthiness — based on factors including income level, credit history and repayment ability — is established, the buyer pays nothing more until the TOP is issued. Under the IAS, the developer pays the interest to the banks during that period.
Dr Chua noted that compared to the DPS, the new schemes allow banks to carry out more extensive checks on the prospective buyers before extending the loans. But some fear a replay of the United States sub-prime woes, sparked by mounting defaulted payments. Mr Tan said: “The question is, how strict are the banks when they assess credit worthiness? The banks in the United States behaved irresponsibly; what is there to stop Singapore banks from behaving the same way?”
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Thursday, September 4, 2008
About this Blog
Jurong East has always been viewed as a rather lacklustre "ulu" estate with just over 22,000 homes. Even neighbouring Bukit Batok and Clementi have over 32,000 and 24,000 homes respectively.
However, in April, National Development Minister Mah Bow Tan unveiled in its masterplan to transform Jurong East into the new Jurong Lake District which is sited to be the largest commercial hub outside the Central Business District.
Chief executive of Propnex, Mohd Ismail, said that he expects to see, in the initial stages, a marginal 5-10% price increase in the properties in Juorng East. However, upon completion of the many facilities and amenities, and as more businesses gradually shift their operations to the new Jurong Gateway precinct, we should even be able to see price increases of 30% to 50%.
As a comparison: For the first quarter of the year, the median resale prices for five-room HDB flats in Bukit Merah and Toa Payoh — estates that are considerably close to town — were $585,000 and $538,000 respectively, while the median resale price for a five-room HDB flat in Jurong East was just $386,000.
We can also expect to see a spillover effect from the revamped Jurong Lake District in the surrounding hinterland towns of Bukit Batok, Clementi and Jurong West.
Mr Mohd Ismail strongly encourages Jurong East residents to hold on to their properties due to the strong prospects for a high resale price upon completion and establishment of the Jurong Lake District.
May also want to read:
HDB Resales: West Sees Highest Price Increase
Jurong East Lake District Good Property Investment Prospect
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Jurong East Lake District Transformation could translate into High Resale Property Prices for Jurong East, Bukit Batok, Clementi and Jurong West
Todayonline reported that the Jurong East Lake District transformation could translate into high resale prices for properties in Jurong East and the neighbouring towns including Bukit Batok, Clementi and Jurong WestJurong East has always been viewed as a rather lacklustre "ulu" estate with just over 22,000 homes. Even neighbouring Bukit Batok and Clementi have over 32,000 and 24,000 homes respectively.
However, in April, National Development Minister Mah Bow Tan unveiled in its masterplan to transform Jurong East into the new Jurong Lake District which is sited to be the largest commercial hub outside the Central Business District.
Chief executive of Propnex, Mohd Ismail, said that he expects to see, in the initial stages, a marginal 5-10% price increase in the properties in Juorng East. However, upon completion of the many facilities and amenities, and as more businesses gradually shift their operations to the new Jurong Gateway precinct, we should even be able to see price increases of 30% to 50%.
As a comparison: For the first quarter of the year, the median resale prices for five-room HDB flats in Bukit Merah and Toa Payoh — estates that are considerably close to town — were $585,000 and $538,000 respectively, while the median resale price for a five-room HDB flat in Jurong East was just $386,000.
We can also expect to see a spillover effect from the revamped Jurong Lake District in the surrounding hinterland towns of Bukit Batok, Clementi and Jurong West.
Mr Mohd Ismail strongly encourages Jurong East residents to hold on to their properties due to the strong prospects for a high resale price upon completion and establishment of the Jurong Lake District.
May also want to read:
HDB Resales: West Sees Highest Price Increase
Jurong East Lake District Good Property Investment Prospect
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
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