Showing posts with label 0.6 Property News Analysis Aug 2008. Show all posts
Showing posts with label 0.6 Property News Analysis Aug 2008. Show all posts
Tuesday, September 2, 2008
About this Blog
The projects that will be completed then were mostly launched during the property market peak in 2007 - 2008. Buyers who bought high are likely to register losses if they want out of their investments, experts say.
Generally, there is a rush to offload units right before a project's TOP, as that is when more payment instalments are due.
So come 2010, if prices stay soft and the economy has not made a spectacular recovery from the current slowdown, buyers might start to feel a greater urgency to sell their properties and the market might be flooded with these 'expensive apartments', said Wing Tai chairman Cheng Wai Keung last week.
Mr Colin Tan, associate director of Chesterton International, added that investors who have cashed out by now are the experienced ones, while 'it is the novice investors who are usually left holding on to their units' and may be more prone to panic selling later.
For complete report, refer to News Report Aug 2008
May also want to read:
Marina Integrated Resorts Completion in 2009-2010 to lift Property Market?
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
Property Buying Advice: 2010 critical year for Property Market
While the private property market may be spared the selling hysteria this year and even next year, some industry players caution that 2010 may be a different scenario.The projects that will be completed then were mostly launched during the property market peak in 2007 - 2008. Buyers who bought high are likely to register losses if they want out of their investments, experts say.
Generally, there is a rush to offload units right before a project's TOP, as that is when more payment instalments are due.
So come 2010, if prices stay soft and the economy has not made a spectacular recovery from the current slowdown, buyers might start to feel a greater urgency to sell their properties and the market might be flooded with these 'expensive apartments', said Wing Tai chairman Cheng Wai Keung last week.
Mr Colin Tan, associate director of Chesterton International, added that investors who have cashed out by now are the experienced ones, while 'it is the novice investors who are usually left holding on to their units' and may be more prone to panic selling later.
For complete report, refer to News Report Aug 2008
May also want to read:
Marina Integrated Resorts Completion in 2009-2010 to lift Property Market?
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
Friday, August 29, 2008
About this Blog
In response, forumers at the Singapore Property Forum cautioned property buyers that it's premature to enter the property market now. Some of their views are given below:
"Look at today business time about Subsales. If you decide to buy the subsales at current price, beware that you are paying 30-100% more from the earlier buyers. They can sell below your value and still make a profit in the future. You will definitely have a big loss later. Unless you are ok with that fact, then it's fine as some of those locations are quite alright. "
".. there are always people who think they're acting ahead of the herd and when actually they have bought at still higher prices in the subsale market creating the peak price for themselves..but take note, there aren't may subsales and there aren't many such buyers around (to take over your hot potatoes) .. "
"that's why i think it's still premature to buy now ... in fact buying now means you're most likely to be right at peak of the property cycle ... kiasu will make you even more prone to suing .. like minister mah said, "let others go first, there are many more boats coming .."
"Yes, you have to be careful when you buy right now. Know the details of the project. There should be some developers able to lower their price later but you have to monitor the sentiment also. When it improves, some of the area where price is good might turn around, however, higher one might be still tough. "
"i think it's best to wait until next year .. signals to watch out are the 3 Rs: Recession, Retrenchment and Repossession .. when you hear the last R, then it's time to come out from the hiding and start property hunting. "
"You are right. The bottom is always at the time when some people turns bankrupt and repossession of properties by banks. "
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
Buying Property Advice: Private Property Subsales 97% Profitable: Premature to enter Private Property Market now
The Business Times reported on Tue, August 26, 2008, that 97% of the subsales in the private property market for the first seven months of this year have made profits.In response, forumers at the Singapore Property Forum cautioned property buyers that it's premature to enter the property market now. Some of their views are given below:
"Look at today business time about Subsales. If you decide to buy the subsales at current price, beware that you are paying 30-100% more from the earlier buyers. They can sell below your value and still make a profit in the future. You will definitely have a big loss later. Unless you are ok with that fact, then it's fine as some of those locations are quite alright. "
".. there are always people who think they're acting ahead of the herd and when actually they have bought at still higher prices in the subsale market creating the peak price for themselves..but take note, there aren't may subsales and there aren't many such buyers around (to take over your hot potatoes) .. "
"that's why i think it's still premature to buy now ... in fact buying now means you're most likely to be right at peak of the property cycle ... kiasu will make you even more prone to suing .. like minister mah said, "let others go first, there are many more boats coming .."
"Yes, you have to be careful when you buy right now. Know the details of the project. There should be some developers able to lower their price later but you have to monitor the sentiment also. When it improves, some of the area where price is good might turn around, however, higher one might be still tough. "
"i think it's best to wait until next year .. signals to watch out are the 3 Rs: Recession, Retrenchment and Repossession .. when you hear the last R, then it's time to come out from the hiding and start property hunting. "
"You are right. The bottom is always at the time when some people turns bankrupt and repossession of properties by banks. "
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
About this Blog
News report said, however, the rebound is unlikely to last.
"There will be heavy sledding for the U.S. economy during the next couple of quarters," predicted Lynn Reaser, chief economist at Bank of America's Investment Strategies Group.
It's "the last hurrah for this economic cycle," said Martin Regalia, chief economist for the U.S. Chamber of Commerce.
Federal Reserve Chairman Ben Bernanke has warned the economy will be weak through the rest of 2008.
Economists believe growth will slow in the July-September quarter to a pace of around 1.5%, and will turn even weaker in the fourth quarter.
"With the rest of the world now slowing and the dollar off its lows, the U.S. will be more reliant on domestic demand in coming quarters," said Nigel Gault, an economist at Global Insight. "Since consumer spending is slowing down and the credit crunch is tightening its grip, it is hard to foresee another quarter with such a robust GDP headline for some time."
The effects of the housing market's collapse were evident in the GDP report, with builders cut back at an annual rate of 15.7% in the second quarter.
Businesses also trimmed spending on equipment and software in the spring. One measure of corporate profits showed companies losing ground in the second quarter. After-tax profits fell 3.8% in the spring, compared with a 1.1% increase in the first quarter.
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
US Second Quarter GDP Rebound Unlikely to Last
The US GDP grew at a 3.3% annual rate in the second quarter (April-June), its fastest pace in nearly a year, the Commerce Department reported on Thursday. The revised reading was much better than the government's initial estimate of a 1.9% pace and exceeded economists' expectations for a 2.7% growth rate. The rebound is attributed largely to strong exports.News report said, however, the rebound is unlikely to last.
"There will be heavy sledding for the U.S. economy during the next couple of quarters," predicted Lynn Reaser, chief economist at Bank of America's Investment Strategies Group.
It's "the last hurrah for this economic cycle," said Martin Regalia, chief economist for the U.S. Chamber of Commerce.
Federal Reserve Chairman Ben Bernanke has warned the economy will be weak through the rest of 2008.
Economists believe growth will slow in the July-September quarter to a pace of around 1.5%, and will turn even weaker in the fourth quarter.
"With the rest of the world now slowing and the dollar off its lows, the U.S. will be more reliant on domestic demand in coming quarters," said Nigel Gault, an economist at Global Insight. "Since consumer spending is slowing down and the credit crunch is tightening its grip, it is hard to foresee another quarter with such a robust GDP headline for some time."
The effects of the housing market's collapse were evident in the GDP report, with builders cut back at an annual rate of 15.7% in the second quarter.
Businesses also trimmed spending on equipment and software in the spring. One measure of corporate profits showed companies losing ground in the second quarter. After-tax profits fell 3.8% in the spring, compared with a 1.1% increase in the first quarter.
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, August 26, 2008
About this Blog
A key contributor to the persistent high inflation is soaring housing costs. A sub-index for housing costs was up 12.5% in July 2008 from a year earlier. To this, some forumers said HDB is responsible to a large extent. Some of their views are given below:
"The median income at 2000 is SGD4030. The median income now is SGD4880. A HDB 5-room flat at 2000 is 190k, now is 330k. 2000, it is 190,000/4030 which works around 50 months. 2008, it is 330,000/4880 which works around 68 months.This means as property price goes up, the 50% of the population has to take longer time to pay up their mortgages.
So what is affordable??? On one hand, we want to control wage increment, on the other hand, we let property price increase due to the balancing act on demand and supply? How we define affordable? And how what the equation of the right timeframe over one annual income? Do not forget the other inflation hitters like food."
"Govt will explain property prices are going up because of inflation of the land value, materials and labour ............how is our salary? it should be kept low to make Singapore more competitive...........................boleh tahan?"
"I think govt promised that every singapore should able to lease (own) a low cost flat from HDB. these days, all flats are BTO and on average a 5 room flat would be from 350k to 450k and those in city are almost 500k to 700k? With minimum CPF sum increasing and high loans taken to finance these flats, what's left in our CPF account?"
"With the BTO scheme, newly-weds would have to wait 3 to 5 years, most would end up separating and breaking up since they have to live apart."
"It is very sad for us and even more sad for the future generations. With our salary rising 3 times every 30 years and HDB flats rising 10 to 20 times at the same time frame, our children will have to take a 99 year mortgage by the time they are eligible for a Sengkang or Punggol flat. Hah, then they can buy the flat and their grandchildren can continue paying the monthly installments, until the day HDB tear down the flat when the 99 year lease is up. It sound so similar to what I heard about Japan in 1991 where a man buy a house and his grandchildren still has to pay."
"Sometimes, i wonder if HDB know what a "subsidy" means.
HDB pricing difference is called a subsidy when in actual fact, there is no accounting loss in its books for flats are sold at cost plus. Petrol taxes are not reduced because it was mentioned that this subsidy will encourage the wrong ideas. A subsidy to me would be like those of Malaysia where retail prices are less than fair market prices."
May also want to read:
HDB Income Ceiling for Buying HDB Flats Not Pro-Family
HDB Resale Flats Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
HDB Subsidies: Are HDB flats really subsidised?
HDB Resales: West Sees Highest Price Increase
HDB Contributes to Singapore Record High Inflation
MTI has reported that Singapore inflation rate for July 2008 has eased to 6.5% from the 7.5% in the last three months, but still at record high level.A key contributor to the persistent high inflation is soaring housing costs. A sub-index for housing costs was up 12.5% in July 2008 from a year earlier. To this, some forumers said HDB is responsible to a large extent. Some of their views are given below:
"The median income at 2000 is SGD4030. The median income now is SGD4880. A HDB 5-room flat at 2000 is 190k, now is 330k. 2000, it is 190,000/4030 which works around 50 months. 2008, it is 330,000/4880 which works around 68 months.This means as property price goes up, the 50% of the population has to take longer time to pay up their mortgages.
So what is affordable??? On one hand, we want to control wage increment, on the other hand, we let property price increase due to the balancing act on demand and supply? How we define affordable? And how what the equation of the right timeframe over one annual income? Do not forget the other inflation hitters like food."
"Govt will explain property prices are going up because of inflation of the land value, materials and labour ............how is our salary? it should be kept low to make Singapore more competitive...........................boleh tahan?"
"I think govt promised that every singapore should able to lease (own) a low cost flat from HDB. these days, all flats are BTO and on average a 5 room flat would be from 350k to 450k and those in city are almost 500k to 700k? With minimum CPF sum increasing and high loans taken to finance these flats, what's left in our CPF account?"
"With the BTO scheme, newly-weds would have to wait 3 to 5 years, most would end up separating and breaking up since they have to live apart."
"It is very sad for us and even more sad for the future generations. With our salary rising 3 times every 30 years and HDB flats rising 10 to 20 times at the same time frame, our children will have to take a 99 year mortgage by the time they are eligible for a Sengkang or Punggol flat. Hah, then they can buy the flat and their grandchildren can continue paying the monthly installments, until the day HDB tear down the flat when the 99 year lease is up. It sound so similar to what I heard about Japan in 1991 where a man buy a house and his grandchildren still has to pay."
"Sometimes, i wonder if HDB know what a "subsidy" means.
HDB pricing difference is called a subsidy when in actual fact, there is no accounting loss in its books for flats are sold at cost plus. Petrol taxes are not reduced because it was mentioned that this subsidy will encourage the wrong ideas. A subsidy to me would be like those of Malaysia where retail prices are less than fair market prices."
May also want to read:
HDB Income Ceiling for Buying HDB Flats Not Pro-Family
HDB Resale Flats Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Property Price Index Graph Plotter & Online Property Valuation
HDB Subsidies: Are HDB flats really subsidised?
HDB Resales: West Sees Highest Price Increase
About this Blog
CapitaLand’s shares fell to $4.22 today - its lowest level in two years due largely to heavy institutional selling.
‘We are inclined to be less optimistic than CapitaLand’s management who expect the Singapore residential market to remain flat this year,’ reported Morgan Stanley.
The signal is indeed very bearish for the property market.
Property firms and property developers have however continued to ascertain the market that property price will stay firm. Mr John Stinson, DTZ's regional director of sales and investments for Asia-Pacific's capital markets said, "While the growth in prices may slow, there is unlikely to be a significant fall in property prices here."
To this, a forumer in the Singapore Property Forum responded:
"When property firms or property agents or developers tell you property price ain't coming down, note they're really getting nervous .. just look at how property shares are plunging .. do you want to believe these people or the investors? Institutional investors are having a big sell-off for the property counters, the signal is clear. "
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
Property Funds Bail Out of Regional Property Stocks: Analysts not optimistic that property price will stay firm
Property funds are bailing out of the regional property stocks amid an increasing bearish outlook for the sector, reported Business Times - 26 Aug 2008.CapitaLand’s shares fell to $4.22 today - its lowest level in two years due largely to heavy institutional selling.
‘We are inclined to be less optimistic than CapitaLand’s management who expect the Singapore residential market to remain flat this year,’ reported Morgan Stanley.
The signal is indeed very bearish for the property market.
Property firms and property developers have however continued to ascertain the market that property price will stay firm. Mr John Stinson, DTZ's regional director of sales and investments for Asia-Pacific's capital markets said, "While the growth in prices may slow, there is unlikely to be a significant fall in property prices here."
To this, a forumer in the Singapore Property Forum responded:
"When property firms or property agents or developers tell you property price ain't coming down, note they're really getting nervous .. just look at how property shares are plunging .. do you want to believe these people or the investors? Institutional investors are having a big sell-off for the property counters, the signal is clear. "
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
Saturday, August 23, 2008
About this Blog
May also want to read:
HDB Contributes to Singapore Record High Inflation
HDB Housing Subsidies: Is HDB Housing really subsidised?
HDB Resale Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
HDB Income Ceiling to buy HDB Flats Not Pro-Family
During his National Day Rally speech, the Prime Minister spent a great deal of time talking about the government's latest pro-family policies but overlooked something very pertinent to setting up a family, that's having a place call home first. HDB household income ceiling of $8000 for purchase of the 1st HDB flat is simply too low especially at current high prices. Most couples will find it necessary to work for five years or more first in order to save enough to set up their home. This reduces the time available for young couples to have children. Why not remove (or at least increase) the HDB income ceiling for first time home buyers, so that all young couples regardless of income are able to buy a home at a subsidised rate and enjoy subsidised home loans ? This would serve as an incentive for young couples to start their family sooner.May also want to read:
HDB Contributes to Singapore Record High Inflation
HDB Housing Subsidies: Is HDB Housing really subsidised?
HDB Resale Price Index from 1990 - 2008
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, August 19, 2008
About this Blog
While improving on June's 10.6% and May's 10.5% fall, the latest contraction is seen as confirmation that factories here will not escape a widening global slowdown that was sparked off by the US sub-prime mortgage crisis.
There was little comfort for decoupling theorists, who had hoped that China, India and other growth engines would prove resilient enough to chart an independent path for emerging economies. While local exports to China, Indonesia and other emerging economies bounced back last month from earlier falls, they proved insufficient to offset the large drag from Europe and the US.
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 Economy may head for recession as Exports Fell by 5.7% in July
Continuing their downward trend, Singapore's non-oil domestic exports (NODX) shrank by 5.7% in July as the shipment of electronic goods continued to fall. This followed a 10.5% fall in May and an 11% fall in June. Some economists are predicting a technical recession after the economy grew just 2.1% in Q2 - the slowest growth in five quarters, and following a revised 6.9 per cent pace in Q1. A technical recession is defined as two consecutive quarters of economic contraction.While improving on June's 10.6% and May's 10.5% fall, the latest contraction is seen as confirmation that factories here will not escape a widening global slowdown that was sparked off by the US sub-prime mortgage crisis.
There was little comfort for decoupling theorists, who had hoped that China, India and other growth engines would prove resilient enough to chart an independent path for emerging economies. While local exports to China, Indonesia and other emerging economies bounced back last month from earlier falls, they proved insufficient to offset the large drag from Europe and the US.
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
Monday, August 18, 2008
About this Blog
The following are forumers comments extracted from the Singapore Property Forum:
Forumer 1 wrote:
More foreign talents to buy private properties. They were one of the group that move the price up. We have no enough people to fill the jobs and not enough housing too. Hurray!
Forumer 2 wrote:
Hurray? Remember the previous weeks, everyone such as Ku Swee Yong of Savillis was saying that 45,000 foreigners will come in. Now PM says its 20,000. Reduced by more than half and not all will be foreigners.
Forumer 3 wrote:
I think he is refering to 20000 foreigners will be working in our two IRs.
Forumer 4 wrote:
No, I'm positive he said 20,000 jobs from IRs with some going to foreginers... and over a period of who knows how long given the current global turmoil when tourism is on its decline ? Most of these jobs will provide good support for HDB price. Frankly, there's nothing to cheer about for private properties. Only 2 thousands + sold for the first half of the year. That looks gloomy. The whole situation just exposes all the hypes created by vested parties, like Ku whatever, about the IRs. I'm truly sorry for those who bought into it. For those who are still two minds about it, it should get clearer now and will be painfully clearer in the months ahead.
Forumer 5 wrote:
Yes, totally agreed. When i say "45,000 foreigners will come in" it refers to the assumption that 45,000 jobs will be created and that will create a great demand for rentals / purchase of private property. This is obviously hype as now PM says only 20,000 jobs will be created and mostly will be to singaporeans.
Forumer 6 wrote:
Sadly, that's the way property bubbles work. Yet, people continue to be sold into it with the dream that they'll make big money. To think about it more rationally, all the hypes are only based on hear-say, and some are laughably ridiculous, and yet people have committed millions of dollars on these hear says. Sigh!! The evidence that private properties are already over-priced is all there, and yet people ignore them, preferring to listen to the salesmens' talk. Sigh!!
Forumer 7 wrote:
The Bejing Olympics is another good example of a hype. Remember how the bulls shouted how this event would cause property price to shoot? Now reality said just the opposite.
Forumer 8 wrote:
Yes very true, all market hype.
Markets Performance Year-To-Date
1) Nasdaq -7.5%
2) Dow Jones -12.4%
3) FTSE -15%
4) Nikkei -15.3%
5) Kospi -17%
6) Straits Times Index -18.7%
7) Hang Seng -23.2%
KLCI -23.22%
9) Jakarta Composite -23.3%
10) Shanghai -53.6%
Forumer 9 wrote:
Cool, markets are so bad and Singapore properties still can hold. When the markets are hot again, bull run for properties prices
Forumer 10 wrote:
Usually the unusual calm before the tide is the most destructive. Imagine the tension of the recession snowballing slowly but surely, when it comes, prices will plunge like nobody business. We must be prepared for the worst.
Forumer 11 wrote:
Its not going to happen. I been in property investment since early 1990s. I can bet this time is totally different.
Price may moderate and drop slightly but to expect crash will only happen if Singapore economy totally collapses, which will hurt everyone. This is a far from possible scenario judging from the fact that the IR, Sports Hub, MBFC are sprouting out in the next 18-30 months from now.
For bargain hunters, they will be disappointed. They might get good bargains but trust me, they wont be able to get good choice units at bargain prices. Its not going to happen this time.
I am confident when the tide turns very bad, that marks a slow turning point for Singapore. Now is already a very bad time. Have you guys seen property prices drop 10% monthly ???? The worst of times are already happening now...u saw Singapore exports dropped, unemployment start to build up, slow take up of new launches etc etc...have prices dropped ?
The next time you will see will be when property prices will start to pick up again once US residential mortgage mess subsides early next year.
Forumer 12 wrote:
PM said economic turmoil likely to last untill 2009 and year after ... No, this is not the worst yet. It has just started. We'll see the worst perhaps by middle of next year or even later .. but definitely now is only the beginning of the downtrend ..
Forumer 13 wrote:
I guess you too young and never experienced what i experienced in 1980s/1990s.
Its already 1 year since the sub-prime crisis started. In the past, it takes only 2 months for property market to correct down significantly. As such, a crash is not happening. What i foresee is a slight downward trend in property prices.
The fact is that 2010 is a very exciting year for the property market in Singapore as we will be announcing the opening of the world's most expensive IR at Marina Bay Sands Resort followed by Sentosa IR. And a year later, the Sports Hub. This is apart from the F1 Grand Prix, the Marina Bay Financial Centre and our government's gigantic infrastructural projects.
So u expecting property prices to drop during these times ??? Fain Hope. From now till mid 2009 are the short window period to shop for property bargains, after which a recovery is almost certain.
Forumer 14 wrote:
It's nice for people to call me young , but actually, I've lived through both the 80s and 90s property cycles.
In the 90s for instance, the Asian Financial Crisis erupted in 1997, but it was not until mid 1998 that the big developers like Far East and City Dev came under pressure to reduce property price by as much as 40%. It'd be naive to expect price cut just after 2 months of stress, not even a distress individual seller is likely to give in within 2 months.
Although the subprime problem has been going on for a year, it's impact on the real economy has only been felt recently. Going by the official economic growth forecast and looking at the declining export fig, it'd be logical to expect the economy to worsen quite rapidly from this point. Has this message not been resoundingly emphasized by the government recently ?
By all logics, there's little fundamental to support the price surge of 50-70% during the recent years. While I agree that the IR, F1 .. will add value to the economy, I'm convinced that they've already been priced into, and beyond, the current property price. Increasingly, it's going to dawn upon people that all these hypes cannot sustain the over-priced property market.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
PM Lee Hsien Loong: Marina Bay Integrated Resorts to provide 20,000 jobs
During the National Day Rally speech yesterday, the Prime Minister said that the integrated resort at Marina Bay will provide 20,000 new jobs. But with a low unemployment rate of 2.3%, there just aren't enough Singaporeans to fill all the positions. So, more foreign talent will be needed to support the workforce.The following are forumers comments extracted from the Singapore Property Forum:
Forumer 1 wrote:
More foreign talents to buy private properties. They were one of the group that move the price up. We have no enough people to fill the jobs and not enough housing too. Hurray!
Forumer 2 wrote:
Hurray? Remember the previous weeks, everyone such as Ku Swee Yong of Savillis was saying that 45,000 foreigners will come in. Now PM says its 20,000. Reduced by more than half and not all will be foreigners.
Forumer 3 wrote:
I think he is refering to 20000 foreigners will be working in our two IRs.
Forumer 4 wrote:
No, I'm positive he said 20,000 jobs from IRs with some going to foreginers... and over a period of who knows how long given the current global turmoil when tourism is on its decline ? Most of these jobs will provide good support for HDB price. Frankly, there's nothing to cheer about for private properties. Only 2 thousands + sold for the first half of the year. That looks gloomy. The whole situation just exposes all the hypes created by vested parties, like Ku whatever, about the IRs. I'm truly sorry for those who bought into it. For those who are still two minds about it, it should get clearer now and will be painfully clearer in the months ahead.
Forumer 5 wrote:
Yes, totally agreed. When i say "45,000 foreigners will come in" it refers to the assumption that 45,000 jobs will be created and that will create a great demand for rentals / purchase of private property. This is obviously hype as now PM says only 20,000 jobs will be created and mostly will be to singaporeans.
Forumer 6 wrote:
Sadly, that's the way property bubbles work. Yet, people continue to be sold into it with the dream that they'll make big money. To think about it more rationally, all the hypes are only based on hear-say, and some are laughably ridiculous, and yet people have committed millions of dollars on these hear says. Sigh!! The evidence that private properties are already over-priced is all there, and yet people ignore them, preferring to listen to the salesmens' talk. Sigh!!
Forumer 7 wrote:
The Bejing Olympics is another good example of a hype. Remember how the bulls shouted how this event would cause property price to shoot? Now reality said just the opposite.
Forumer 8 wrote:
Yes very true, all market hype.
Markets Performance Year-To-Date
1) Nasdaq -7.5%
2) Dow Jones -12.4%
3) FTSE -15%
4) Nikkei -15.3%
5) Kospi -17%
6) Straits Times Index -18.7%
7) Hang Seng -23.2%
KLCI -23.22%
9) Jakarta Composite -23.3%
10) Shanghai -53.6%
Forumer 9 wrote:
Cool, markets are so bad and Singapore properties still can hold. When the markets are hot again, bull run for properties prices
Forumer 10 wrote:
Usually the unusual calm before the tide is the most destructive. Imagine the tension of the recession snowballing slowly but surely, when it comes, prices will plunge like nobody business. We must be prepared for the worst.
Forumer 11 wrote:
Its not going to happen. I been in property investment since early 1990s. I can bet this time is totally different.
Price may moderate and drop slightly but to expect crash will only happen if Singapore economy totally collapses, which will hurt everyone. This is a far from possible scenario judging from the fact that the IR, Sports Hub, MBFC are sprouting out in the next 18-30 months from now.
For bargain hunters, they will be disappointed. They might get good bargains but trust me, they wont be able to get good choice units at bargain prices. Its not going to happen this time.
I am confident when the tide turns very bad, that marks a slow turning point for Singapore. Now is already a very bad time. Have you guys seen property prices drop 10% monthly ???? The worst of times are already happening now...u saw Singapore exports dropped, unemployment start to build up, slow take up of new launches etc etc...have prices dropped ?
The next time you will see will be when property prices will start to pick up again once US residential mortgage mess subsides early next year.
Forumer 12 wrote:
PM said economic turmoil likely to last untill 2009 and year after ... No, this is not the worst yet. It has just started. We'll see the worst perhaps by middle of next year or even later .. but definitely now is only the beginning of the downtrend ..
Forumer 13 wrote:
I guess you too young and never experienced what i experienced in 1980s/1990s.
Its already 1 year since the sub-prime crisis started. In the past, it takes only 2 months for property market to correct down significantly. As such, a crash is not happening. What i foresee is a slight downward trend in property prices.
The fact is that 2010 is a very exciting year for the property market in Singapore as we will be announcing the opening of the world's most expensive IR at Marina Bay Sands Resort followed by Sentosa IR. And a year later, the Sports Hub. This is apart from the F1 Grand Prix, the Marina Bay Financial Centre and our government's gigantic infrastructural projects.
So u expecting property prices to drop during these times ??? Fain Hope. From now till mid 2009 are the short window period to shop for property bargains, after which a recovery is almost certain.
Forumer 14 wrote:
It's nice for people to call me young , but actually, I've lived through both the 80s and 90s property cycles.
In the 90s for instance, the Asian Financial Crisis erupted in 1997, but it was not until mid 1998 that the big developers like Far East and City Dev came under pressure to reduce property price by as much as 40%. It'd be naive to expect price cut just after 2 months of stress, not even a distress individual seller is likely to give in within 2 months.
Although the subprime problem has been going on for a year, it's impact on the real economy has only been felt recently. Going by the official economic growth forecast and looking at the declining export fig, it'd be logical to expect the economy to worsen quite rapidly from this point. Has this message not been resoundingly emphasized by the government recently ?
By all logics, there's little fundamental to support the price surge of 50-70% during the recent years. While I agree that the IR, F1 .. will add value to the economy, I'm convinced that they've already been priced into, and beyond, the current property price. Increasingly, it's going to dawn upon people that all these hypes cannot sustain the over-priced property market.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Sunday, August 17, 2008
About this Blog
Developers, however, sold 897 new private homes in July, 12% more than in June (But a far cry from the 77% jump between May and June). Property consultants also predicted that rising sales will be reversed this month, partly due to July being the Chinese unlucky 'Hungry Ghost' month, and partly, the increasing dismal in the global economy.
July's sales were boosted by sales from four large-scale suburban projects that together accounted for almost two-thirds of the whole month's deals. Livia in Pasir Ris saw 301 apartments taken up, at a median price of $671 psf. Of these, four crossed the $750 psf mark, but the rest were well within the $500 to $750 psf range. Clover by the Park in Bishan sold 100 units at a median price of $753 psf, down slightly from the median $765 psf it had fetched in June. And Kovan Residences in Kovan Road sold 87 units at a median price of $882 psf - just below its $887 psf in June - while Beacon Heights in St Michael's Road sold 61 units at a median price of $865 psf. In the mid-tier segment, Parc Sophia in Dhoby Ghaut was the best performer, selling 25 units at a median price of $1,503 psf. CapitaLand's Wharf Residences near Robertson Quay sold 23 units at a median price of $1,506.
Generally, prices have come under pressure from the gloom in the market and are starting to dip, consultants said. The lowest transacted price in the suburban region fell 23 per cent last month from June, while the lowest price in the central region fell 7 per cent, noted Dr Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research. He said buyers of suburban projects are probably comfortable with paying $650 to $850 psf right now, while those looking for well-located city-fringe homes have budgets of $850 to $1,000 psf. Sales were dismal in the high-end segment, with only eight units - less than 1 per cent of total sales - transacted above $3,000 psf. At the height of the property fever in July last year, 217 units fetched more than $3,000 psf, accounting for more than 15% of the total units sold then.
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
Private Property Price Slipped in July 2008 but July Sales 12% more than June
Prices of properties sold in July slipped. Close to nine out of every 10 homes sold last month were suburban units that cost $1,000 per sq ft (psf) or less. No homes were sold above $4,000 psf for the second consecutive month. This trend is likely to continue, property consultants said, as persistent caution in the high-end market is causing developers to delay expensive launches. Even then, developers continued to launch more units across the board than they were able to sell last month, adding to the inventory of unsold homes, observed Mr Nicholas Mak, director of research and consultancy at Knight Frank.Developers, however, sold 897 new private homes in July, 12% more than in June (But a far cry from the 77% jump between May and June). Property consultants also predicted that rising sales will be reversed this month, partly due to July being the Chinese unlucky 'Hungry Ghost' month, and partly, the increasing dismal in the global economy.
July's sales were boosted by sales from four large-scale suburban projects that together accounted for almost two-thirds of the whole month's deals. Livia in Pasir Ris saw 301 apartments taken up, at a median price of $671 psf. Of these, four crossed the $750 psf mark, but the rest were well within the $500 to $750 psf range. Clover by the Park in Bishan sold 100 units at a median price of $753 psf, down slightly from the median $765 psf it had fetched in June. And Kovan Residences in Kovan Road sold 87 units at a median price of $882 psf - just below its $887 psf in June - while Beacon Heights in St Michael's Road sold 61 units at a median price of $865 psf. In the mid-tier segment, Parc Sophia in Dhoby Ghaut was the best performer, selling 25 units at a median price of $1,503 psf. CapitaLand's Wharf Residences near Robertson Quay sold 23 units at a median price of $1,506.
Generally, prices have come under pressure from the gloom in the market and are starting to dip, consultants said. The lowest transacted price in the suburban region fell 23 per cent last month from June, while the lowest price in the central region fell 7 per cent, noted Dr Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research. He said buyers of suburban projects are probably comfortable with paying $650 to $850 psf right now, while those looking for well-located city-fringe homes have budgets of $850 to $1,000 psf. Sales were dismal in the high-end segment, with only eight units - less than 1 per cent of total sales - transacted above $3,000 psf. At the height of the property fever in July last year, 217 units fetched more than $3,000 psf, accounting for more than 15% of the total units sold then.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
CapitaLand reported a 43.5% drop in its Q2 profit, City Developments a 15.1% drop and Keppel Land a 16.4% drop.
Most listed developers have warned that the global slowdown and weakening market could continue to hit their business in the Q3 and Q4 of 2008. Even the most upbeat are only 'cautiously optimistic'.
The Ministry of Trade and Industry's latest quarterly economic survey showed there are increasing signs that segments within services - including the retail trade and hotels - are showing slower growth.
Property stocks with exposure to those sectors - such as CapitaLand, CityDev and UOL Group, to name just a few - could see contributions from those divisions drop.
As for the residential market in Singaporee, a number of banks including Citigroup, Credit Sussie, Barclay have forecasted a drop in prices of as much as 40%; which could have a negative impact on some developers.
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
Property Developers Profits Drop in Q2 2008: Developers see business hit in Q3 - Q4 2008
Home sales has dropped drastically to just about 2 thousands in the first half of 2008compared to more than 14 thousands sold in 2007. HIT by fewer home sales, lower revaluation gains from investment properties, drops in divestment gains - and even the stronger Singapore dollar - most property developers reported substantial drop in profits in Q2 2008.CapitaLand reported a 43.5% drop in its Q2 profit, City Developments a 15.1% drop and Keppel Land a 16.4% drop.
Most listed developers have warned that the global slowdown and weakening market could continue to hit their business in the Q3 and Q4 of 2008. Even the most upbeat are only 'cautiously optimistic'.
The Ministry of Trade and Industry's latest quarterly economic survey showed there are increasing signs that segments within services - including the retail trade and hotels - are showing slower growth.
Property stocks with exposure to those sectors - such as CapitaLand, CityDev and UOL Group, to name just a few - could see contributions from those divisions drop.
As for the residential market in Singaporee, a number of banks including Citigroup, Credit Sussie, Barclay have forecasted a drop in prices of as much as 40%; which could have a negative impact on some developers.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
City Developments, 37 percent-owned by the family of property tycoon Kwek Leng Beng, earned S$165.2 million ($117.6 million) in the April-June period, down from S$194.4 million reported a year ago.
The company chief Kwek Leng Beng said it may raise Islamic debt as part of a S$1 billion Islamic multi-currency notes programme. He has repeatedly said that the property market is still strong and that City Developments is in a good position to hold back launches until the completion of first integrated resorts next year when he expected sentiment to improve. Kwek Leng Beng also acknowledged that there have been some cases of high-end property buyers resorting to panic-selling in the secondary market. These are people who'd bought their units during the early stages of the property boom
Forumers' comments:
"After CDL chief speak up making a statement...............'UBS analysts downgraded CDL shares ...The louder Kwek Leng Beng shouts that property is still healthy and it is a good time to buy.............M Stanley analysts down graded CDL shares again to the lower and lower and recommend 'to sell' CDL sharesCould he just bites his tounge?......we are holding a lot of CDL shares when we bought it at the peak.............we are now losing $ millions and $ millions.He talks like he is bigger/ richer than Warren Buffett who has $ billlions and $ billions."
"The more the CDL Chief talks, the more his share falls ...."
"It is true as Kwek Leng Beng said property slowdown not widespread. Look at the newspaper, majority of the 3rm HDB flats are asking or transacted at above $300k , by the way why it happened now if the market is so bad. HDB flats are still moving or selling well till now. I do agree that some desperate sellers are like some readers very panic thinking the market will collapse. Construction material costs are higher now due to many construction sites in Singapore. Many expats are coming into Singapore to work too. Foreign investors like Singaporeans are wait & see situation. All buyers are waiting to get good buy. They are waiting for sellers who cannot hold on well or start to panic. By the way, this is Life!"
"Your thought are rather shallow I must say. All this crap by the media and property agents/developers are not worth reading. I have stayed in a lot of countries and I am always shocked on how preoccupied an average singaporean is about properties compared to overseas people. It is unhealthy and is the same as a gambling mentality. Worse when info is tightly skewed and biased. Property in Singapore for the last 15 years since the 1990s is actually nothing shot of gambling and hype. Period. The only people to benefit are the developers, banks and agents. A lot of people has short memories and are prone to gambling. In 1998/7 and 2003/4, I know of numerous cases of people who fell into the trap of believing all the crap, being irrationally optimistics , told Singapore's would be switzerland of the east, blah, etc and commit huge mortgages thinking everything is always going up(same mantra last 2 years) . Suddenly when it collapsed, they cannot pay the huge mortgages when the economy goes bad suddenly (literally over a few months) the banks would repo their homes . However now in the 2000s, information is widely available and instantaneous and easily verified. World economy is going down and tis is possibly the worst recession in 100 years!!! Read the internet and use common sense. It is like gravity. at the end of the day, logic always prevails , that's why banks always win. Worse come, they just repo your homes and foreclosed it, collect the interests, ask you to top up for negative equity, etc.Your pay is not going to go up by much and like in US inflation is going to hit us hard. in my opinion, A lot of what happened to US and Europe is going to happen in Singapore. Worse when you see how much people committed to such gambles. on average a person in US/Europe commits 30% of their salary to their mortgage. But in Singapore it is like 70-80%!!!! of your salary. That's why when even MRT increase their fares by 10 cents or petrol goes up by a few cents a lot of people protests. Which means they have difficulty making ends meet with their budget. So disposable income is going to go down as costs of living is going to go up. Less money available for cars and property, hence cars COEs is getting cheaper(if they have an equivalent property like COEs it is going to be the same!!!!). When agents/developers are always going to the press everyday to tell you to commit, you know something's not right."
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
City Developments Q2 Profit 15% drop
City Developments posted a 15 percent fall in net profit for Q2 2008 as property sales slumped in the first half of this year.City Developments, 37 percent-owned by the family of property tycoon Kwek Leng Beng, earned S$165.2 million ($117.6 million) in the April-June period, down from S$194.4 million reported a year ago.
The company chief Kwek Leng Beng said it may raise Islamic debt as part of a S$1 billion Islamic multi-currency notes programme. He has repeatedly said that the property market is still strong and that City Developments is in a good position to hold back launches until the completion of first integrated resorts next year when he expected sentiment to improve. Kwek Leng Beng also acknowledged that there have been some cases of high-end property buyers resorting to panic-selling in the secondary market. These are people who'd bought their units during the early stages of the property boom
Forumers' comments:
"After CDL chief speak up making a statement...............'UBS analysts downgraded CDL shares ...The louder Kwek Leng Beng shouts that property is still healthy and it is a good time to buy.............M Stanley analysts down graded CDL shares again to the lower and lower and recommend 'to sell' CDL sharesCould he just bites his tounge?......we are holding a lot of CDL shares when we bought it at the peak.............we are now losing $ millions and $ millions.He talks like he is bigger/ richer than Warren Buffett who has $ billlions and $ billions."
"The more the CDL Chief talks, the more his share falls ...."
"It is true as Kwek Leng Beng said property slowdown not widespread. Look at the newspaper, majority of the 3rm HDB flats are asking or transacted at above $300k , by the way why it happened now if the market is so bad. HDB flats are still moving or selling well till now. I do agree that some desperate sellers are like some readers very panic thinking the market will collapse. Construction material costs are higher now due to many construction sites in Singapore. Many expats are coming into Singapore to work too. Foreign investors like Singaporeans are wait & see situation. All buyers are waiting to get good buy. They are waiting for sellers who cannot hold on well or start to panic. By the way, this is Life!"
"Your thought are rather shallow I must say. All this crap by the media and property agents/developers are not worth reading. I have stayed in a lot of countries and I am always shocked on how preoccupied an average singaporean is about properties compared to overseas people. It is unhealthy and is the same as a gambling mentality. Worse when info is tightly skewed and biased. Property in Singapore for the last 15 years since the 1990s is actually nothing shot of gambling and hype. Period. The only people to benefit are the developers, banks and agents. A lot of people has short memories and are prone to gambling. In 1998/7 and 2003/4, I know of numerous cases of people who fell into the trap of believing all the crap, being irrationally optimistics , told Singapore's would be switzerland of the east, blah, etc and commit huge mortgages thinking everything is always going up(same mantra last 2 years) . Suddenly when it collapsed, they cannot pay the huge mortgages when the economy goes bad suddenly (literally over a few months) the banks would repo their homes . However now in the 2000s, information is widely available and instantaneous and easily verified. World economy is going down and tis is possibly the worst recession in 100 years!!! Read the internet and use common sense. It is like gravity. at the end of the day, logic always prevails , that's why banks always win. Worse come, they just repo your homes and foreclosed it, collect the interests, ask you to top up for negative equity, etc.Your pay is not going to go up by much and like in US inflation is going to hit us hard. in my opinion, A lot of what happened to US and Europe is going to happen in Singapore. Worse when you see how much people committed to such gambles. on average a person in US/Europe commits 30% of their salary to their mortgage. But in Singapore it is like 70-80%!!!! of your salary. That's why when even MRT increase their fares by 10 cents or petrol goes up by a few cents a lot of people protests. Which means they have difficulty making ends meet with their budget. So disposable income is going to go down as costs of living is going to go up. Less money available for cars and property, hence cars COEs is getting cheaper(if they have an equivalent property like COEs it is going to be the same!!!!). When agents/developers are always going to the press everyday to tell you to commit, you know something's not right."
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, August 13, 2008
About this Blog
The following is the News report on MM Lee's Singapore economic outlook for 2008-2009:
"PREPARE for a 'rougher ride' as the economy slows, but the Government will ensure that low income Singaporeans can cope with the bumps. Speaking at the annual National Day dinner at his Tanjong Pagar constituency, Minister Mentor Lee Kuan Yew said: 'We cannot protect our people completely from the high oil and food prices. But we will make sure that they can manage.' He referred to the slew of relief measures this year, costing over $3 billion, with many of them targeted at low wage workers.
MM Lee believes it looks 'increasingly likely' that the US credit crunch will cause a downturn when the new US President takes over in January. He said: 'There will be retrenchments in those industries whose exports to America and Europe are affected,' he warned. But foreign workers will take the brunt, 'saving many Singaporeans their jobs'."
The following are some forumers' responses to the report at the Singapore Property Forum:
Forumer 1 wrote:
Note: "foreign workers will take the brunt" ... more than 50% of private properties during the 2007 boom are bought by foreigners ... this will add more downward pressure on the private property price in the months to come!
Forumer 2 wrote:
This is just cut & paste what you like to read, not the full message. MM said GDP growth in next few years, worst case is 3%, best case is 8%, so there is no recession, Spore will continue to grow. Last year new foreign workers is 160k-180k, only 2-3% of them buy property, these are the talents & top end earner, those affected are not in this bracket, are those in the 97-98% bracket. Read carefully MM said, he is still very confidence of Spore growth, he mentioned China & India again to be the pillar in next few years of Spore, Asia & Global growth.
Forumer 3 wrote:
That's not the bottom line. The bottom line is that he implicitly ensured us that so long as PAP is in charge ppty prices in Singapore will never fall. Moreover, the skyhigh construction cost today will soon be passed to the ppty buyers. So, the sign is very clear now. Whether we want to solve the construction crunch or face a severe ppty crunch ahead. Either way ppty prices in Singapore is set to hit the higher level.
Forumer 4 wrote:
This is the most nonsensical argument. PAP was the government when property price plunged 50-60% during the Asian financial crisis and then the SARS. More than 90% Singaporeans already own their homes. So how can developers hope to squeeze them. If there's anything very clear that the govt is trying to do, it is to flood the market with supply of private properties. 68K units in the supply is a historical record that people may not yet understand the implications. I'd however agree that govt would want to keep HDB price stable, appreciating in tandem with economic growth. But private property, bet at your own risk. The price gap between a new private condo ($700-1000psf) and a new HDB ($200-$300 psf) in the same location is huge. Conclusion: There is a long way for private property price to fall.
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
MM Lee: Economic Growth Down 3%-4% in 2008, Foreign workers will take the brunt of Job Losses
Minister Mentor Lee Kuan Yew has further reduced the Singapore economic growth forecast for 2008 to between 3%-5%, after the Prime Minister Lee Hsien Loong revised it down to 4%-5% from 4%-6% during his National Day Speech.The following is the News report on MM Lee's Singapore economic outlook for 2008-2009:
"PREPARE for a 'rougher ride' as the economy slows, but the Government will ensure that low income Singaporeans can cope with the bumps. Speaking at the annual National Day dinner at his Tanjong Pagar constituency, Minister Mentor Lee Kuan Yew said: 'We cannot protect our people completely from the high oil and food prices. But we will make sure that they can manage.' He referred to the slew of relief measures this year, costing over $3 billion, with many of them targeted at low wage workers.
MM Lee believes it looks 'increasingly likely' that the US credit crunch will cause a downturn when the new US President takes over in January. He said: 'There will be retrenchments in those industries whose exports to America and Europe are affected,' he warned. But foreign workers will take the brunt, 'saving many Singaporeans their jobs'."
The following are some forumers' responses to the report at the Singapore Property Forum:
Forumer 1 wrote:
Note: "foreign workers will take the brunt" ... more than 50% of private properties during the 2007 boom are bought by foreigners ... this will add more downward pressure on the private property price in the months to come!
Forumer 2 wrote:
This is just cut & paste what you like to read, not the full message. MM said GDP growth in next few years, worst case is 3%, best case is 8%, so there is no recession, Spore will continue to grow. Last year new foreign workers is 160k-180k, only 2-3% of them buy property, these are the talents & top end earner, those affected are not in this bracket, are those in the 97-98% bracket. Read carefully MM said, he is still very confidence of Spore growth, he mentioned China & India again to be the pillar in next few years of Spore, Asia & Global growth.
Forumer 3 wrote:
That's not the bottom line. The bottom line is that he implicitly ensured us that so long as PAP is in charge ppty prices in Singapore will never fall. Moreover, the skyhigh construction cost today will soon be passed to the ppty buyers. So, the sign is very clear now. Whether we want to solve the construction crunch or face a severe ppty crunch ahead. Either way ppty prices in Singapore is set to hit the higher level.
Forumer 4 wrote:
This is the most nonsensical argument. PAP was the government when property price plunged 50-60% during the Asian financial crisis and then the SARS. More than 90% Singaporeans already own their homes. So how can developers hope to squeeze them. If there's anything very clear that the govt is trying to do, it is to flood the market with supply of private properties. 68K units in the supply is a historical record that people may not yet understand the implications. I'd however agree that govt would want to keep HDB price stable, appreciating in tandem with economic growth. But private property, bet at your own risk. The price gap between a new private condo ($700-1000psf) and a new HDB ($200-$300 psf) in the same location is huge. Conclusion: There is a long way for private property price to fall.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
The following are some forumers' responses to the report at the Singapore Property Forum:
Forumer 1 wrote:
Signs of Bad Times ....At $117.96 psf.....what will be the launch psf at....perhaps below $400 psf Anybody out there can share some light....
Forumer 2 wrote:
I believe even if the developer sell below $500 psf, they willl still make tons of money.... Let's just wait, this is the condo to watch out for.....
Forumer 3 wrote:
Buyer Galore.haha dream on. Construction cost for low end condo is about $300psf and the cost of land is $118. To breakeven, developer has to sell more than $500psf. So, most likely it will be above $600psf. Unless developer doesnt want to make money and do it for charity !
Forumer 4 wrote:
Of course, developers want to sell high high price. Of course developers would want to pass on the increase in buidling costs to conusmers. Can they? So far, it doesn't look like they can. Otherwise, we won't have a 63% unsold inventory. The question is whether buyers want to buy at $600 psf or even $500 psf or even $400 psf ??? with the economy looking worse each quarter and jobs have quickly gone ?? It's about supply and demand. Supply is increasing with more projects getting TOP. Demanding is decreasing as jobs and earnings decline. So, with plunging sales and shares, and increasing costs and inventory, how long can developers hold? Buyers are not stupid these days.
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
URA's 99-yr site receives one bid for Tampines Site
An Urban Redevelopment Authority tender for a 99-year leasehold condominium site at Tampines Ave 1/Ave 10 facing Bedok Reservoir closed on Tuesday receiving just one bid. Boon Keng Development bid S$84.63 million or S$117.96 per square foot of potential gross floor area. The bid was way below market expectations.The following are some forumers' responses to the report at the Singapore Property Forum:
Forumer 1 wrote:
Signs of Bad Times ....At $117.96 psf.....what will be the launch psf at....perhaps below $400 psf Anybody out there can share some light....
Forumer 2 wrote:
I believe even if the developer sell below $500 psf, they willl still make tons of money.... Let's just wait, this is the condo to watch out for.....
Forumer 3 wrote:
Buyer Galore.haha dream on. Construction cost for low end condo is about $300psf and the cost of land is $118. To breakeven, developer has to sell more than $500psf. So, most likely it will be above $600psf. Unless developer doesnt want to make money and do it for charity !
Forumer 4 wrote:
Of course, developers want to sell high high price. Of course developers would want to pass on the increase in buidling costs to conusmers. Can they? So far, it doesn't look like they can. Otherwise, we won't have a 63% unsold inventory. The question is whether buyers want to buy at $600 psf or even $500 psf or even $400 psf ??? with the economy looking worse each quarter and jobs have quickly gone ?? It's about supply and demand. Supply is increasing with more projects getting TOP. Demanding is decreasing as jobs and earnings decline. So, with plunging sales and shares, and increasing costs and inventory, how long can developers hold? Buyers are not stupid these days.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, August 12, 2008
About this Blog
The following are some forumers' responses to the report at the Singapore Property Forum:
Forumer 1 wrote:
People are going to be losing jobs, losing bonus, ... we may be into what Tony Tan called "long, deep recession" ... property is set for a crash ..
Forumer 2 wrote:
If you are affected by the economy pressure, advise is to buy HDB. Don't push yourselve as private property is not your choice.
Forumer 3 wrote:
You probably going to get fire with your kind of mentality. Properties are not going to fall as cost of building them is increasing and sin dollar is dropping. Go and buy HDB if you can't afford private property.
Forumer 4 wrote:
is it?
I only see more new BMW, Merz, Audi...on the road.
Orchard rd is so crowded, people keep buying.
US$ is low, everybody go US for holiday.
Peple is still buying property at current price.
PC show, mobile...new nodels are still sell like hot cake...
where is the recession? crash? all these are in the heart of coward, timid, kiasi, kiasu.....work hard, be creative, opportunity is there for you.
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 Economic Growth Down to 2.1% Q2 2008
S'pore's economy shrank in Q2 and exports are also set to fall, a sign that sagging growth is set to be a bigger worry for Asia than inflation.The following are some forumers' responses to the report at the Singapore Property Forum:
Forumer 1 wrote:
People are going to be losing jobs, losing bonus, ... we may be into what Tony Tan called "long, deep recession" ... property is set for a crash ..
Forumer 2 wrote:
If you are affected by the economy pressure, advise is to buy HDB. Don't push yourselve as private property is not your choice.
Forumer 3 wrote:
You probably going to get fire with your kind of mentality. Properties are not going to fall as cost of building them is increasing and sin dollar is dropping. Go and buy HDB if you can't afford private property.
Forumer 4 wrote:
is it?
I only see more new BMW, Merz, Audi...on the road.
Orchard rd is so crowded, people keep buying.
US$ is low, everybody go US for holiday.
Peple is still buying property at current price.
PC show, mobile...new nodels are still sell like hot cake...
where is the recession? crash? all these are in the heart of coward, timid, kiasi, kiasu.....work hard, be creative, opportunity is there for you.
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, August 7, 2008
About this Blog
Though the minister also says inflation is likely to ease by year end, this is hardly good news because easing inflation is likely the result of recession. Inflation rate has been revised upward earlier to 6%-7%, while economic growth has been revised downward from 5%-7% to 4%-6% and MAS has said that it'd be further revised.
It's no more just about the US subprime problem or even the global crisis, some distant problem we can ignore, but the problem is now at our own doorstep. So much for the decoupling theory ...
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
Tharman: Singapore Economy to remain weak for several quarters into 2009
Finance Minister Tharman says Singapore economic growth may remain weak for several quarters, extending into next year, 2009.Though the minister also says inflation is likely to ease by year end, this is hardly good news because easing inflation is likely the result of recession. Inflation rate has been revised upward earlier to 6%-7%, while economic growth has been revised downward from 5%-7% to 4%-6% and MAS has said that it'd be further revised.
It's no more just about the US subprime problem or even the global crisis, some distant problem we can ignore, but the problem is now at our own doorstep. So much for the decoupling theory ...
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, August 6, 2008
About this Blog
The following is a forum exchange between bull and bear on the report extracted from the Singapore Property Forum:
Bull wrote:
A small development not in a prime area , not much marketing and yet sold out in less than 2 hours. What does this say ? There is lots of pent up demand within the mass market and this was proven with other launches such as Dakota, Clover and others.
Bear wrote:
We don't really know at what prices and how the transactions are done (for Urban Lofts). According to URA data, Dakota Residences sold 46/348 and Clover by the Park sold 13/616 - this obviously shows very low transaction volume.
Bull wrote:
Even in this forum one can see many potential buyers which some looking for the' right' time to buy and while others looking around for suitable developments.
Bear wrote:
This forum is dedicated to cautioning ppl against the Bull & Cock story, you misread the interest.
Bull wrote:
These above are all facts and not based on assumption. Another fact is that Spore population in 2006-2007 grew by 400,000-500,000 as what being announced. This means more demand for housing . I would not speculate what type of housing at this moment but it will likely be for all types such as workers quarters, public housing , rentals and private properties.
Bear wrote:
As you said, it's for 2006-2007, the population has already been absorbed. Besides Singaporeans are not producing enough and number of deaths may not be replaced. In fact, taking your advice on a long term view, Singapore population may be in danger of shrinking instead of growing. That may or may not be replaced by immigrants who may go home when life gets better at home than here. That's another serious uncertainty facing Singapore in the long term. As we all can see, our govt is really worried about this.
Bull wrote:
Dont expect to buy things like equities, commodities or property at it's lowest . Buying a property esp own stay takes lots of effort and research such as location, size, facing , amenities , facilities and price. Trying to buy a property at the lowest possible time and with the best location and unit is almost impossible.
Bear wrote:
The best investors are in fact those who know how to buy at bargain price. There're quite a lot of bargain in the stocks market now, though property is definitely far from being a bargain at current prices.
Bull wrote:
For those looking to buy a new home, I suggest dont try to time yourself and hope to buy at the lowest. Even if you have the foresight in predicting the best time to buy you are most unlikely to get the best unit , projects or location of your choice. For own stay take a 5-10 years view and even if price comes off after u have bought it does not matter as its for your own stay and vice versa if prices moves up.
Bear wrote:
Well, all I can say is that if you need a home, you need a home but just buy within your means. As can see, most home buyers are in fact very down to earth, with most buying HDB with whatever subsidies from the govt.
Bull wrote:
For long term investor its the same story..take a longer view rather than what will happen within the next 6 months.
Bear wrote:
Investors have many choices and there are many bargains around. Property is still a bad choice.
Bull wrote:
However for speculators, all I have to say is speculation is a zero sum game if your are lucky. you are better off speculating into property stocks which offers more liduidity. lower commision and lower investment.
Bear wrote:
Speculators are no more since end of last year!
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
Urban Lofts: Condo at Little India Sold Out within 2 hours
According to news reports, Urban Lofts, a small condominium project at Little India, was sold out within 2 hours of balloting.The following is a forum exchange between bull and bear on the report extracted from the Singapore Property Forum:
Bull wrote:
A small development not in a prime area , not much marketing and yet sold out in less than 2 hours. What does this say ? There is lots of pent up demand within the mass market and this was proven with other launches such as Dakota, Clover and others.
Bear wrote:
We don't really know at what prices and how the transactions are done (for Urban Lofts). According to URA data, Dakota Residences sold 46/348 and Clover by the Park sold 13/616 - this obviously shows very low transaction volume.
Bull wrote:
Even in this forum one can see many potential buyers which some looking for the' right' time to buy and while others looking around for suitable developments.
Bear wrote:
This forum is dedicated to cautioning ppl against the Bull & Cock story, you misread the interest.
Bull wrote:
These above are all facts and not based on assumption. Another fact is that Spore population in 2006-2007 grew by 400,000-500,000 as what being announced. This means more demand for housing . I would not speculate what type of housing at this moment but it will likely be for all types such as workers quarters, public housing , rentals and private properties.
Bear wrote:
As you said, it's for 2006-2007, the population has already been absorbed. Besides Singaporeans are not producing enough and number of deaths may not be replaced. In fact, taking your advice on a long term view, Singapore population may be in danger of shrinking instead of growing. That may or may not be replaced by immigrants who may go home when life gets better at home than here. That's another serious uncertainty facing Singapore in the long term. As we all can see, our govt is really worried about this.
Bull wrote:
Dont expect to buy things like equities, commodities or property at it's lowest . Buying a property esp own stay takes lots of effort and research such as location, size, facing , amenities , facilities and price. Trying to buy a property at the lowest possible time and with the best location and unit is almost impossible.
Bear wrote:
The best investors are in fact those who know how to buy at bargain price. There're quite a lot of bargain in the stocks market now, though property is definitely far from being a bargain at current prices.
Bull wrote:
For those looking to buy a new home, I suggest dont try to time yourself and hope to buy at the lowest. Even if you have the foresight in predicting the best time to buy you are most unlikely to get the best unit , projects or location of your choice. For own stay take a 5-10 years view and even if price comes off after u have bought it does not matter as its for your own stay and vice versa if prices moves up.
Bear wrote:
Well, all I can say is that if you need a home, you need a home but just buy within your means. As can see, most home buyers are in fact very down to earth, with most buying HDB with whatever subsidies from the govt.
Bull wrote:
For long term investor its the same story..take a longer view rather than what will happen within the next 6 months.
Bear wrote:
Investors have many choices and there are many bargains around. Property is still a bad choice.
Bull wrote:
However for speculators, all I have to say is speculation is a zero sum game if your are lucky. you are better off speculating into property stocks which offers more liduidity. lower commision and lower investment.
Bear wrote:
Speculators are no more since end of last year!
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
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