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14-01-13, 15:45
http://www.businesstimes.com.sg/premium/singapore/property-bull-abnormal-one-consultancy-md-20130114
Published January 14, 2013
Property bull an abnormal one: consultancy MD
Latest govt move likened to looping a rope through the bull's nose ring
By Mindy Tan
THE bull run that the property market has been on has been an unnatural one. After all, the bull, to take the analogy further, has been fuelled by six pit stops. The seventh, which came into effect on Saturday, however, may well take the wind out of the beast.
"Our (current) property bull run is a bit abnormal," said Ricky Sim, managing director of Chesterton Suntec International and Suntec Food & Leisure.
"Let me give you an analogy. When a bull runs without stopping, it will collapse sooner or later. In the same way, this property bull run has to stop. But this bull run has had six stops, in which the bull has had time to drink water, relax, and regain its strength. Without the six stops, the market would have crashed, just like the bull!"
The latest round of property cooling measures, which takes in several sectors and is expected to dampen speculation across the board, is the equivalent of looping a rope through the bull's nose ring, said Mr Sim.
"I think the measures will dampen the property sales market tremendously, but you will only know the full results after six months. I know of a lot of investors who've made 20-30 per cent profits and have been trying to unload (their investments) in the last six months. Now, finding a buyer will be a problem."
The measures, which were announced by the government on Friday, include steeper additional buyer's stamp duty rates, and lower loan-to-value limits coupled with higher minimum cash downpayment on housing loans.
The public housing sector too saw a host of measures, including the barring of permanent residents from subletting their entire HDB flat. PRs must also sell their HDB units within six months of buying a private residence.
On the industrial front, the authorities have introduced a seller's stamp duty for the first time.
Mr Sim lauded the move to stabilise the HDB market.
"Let permanent residents buy HDB flats, but if they leave Singapore, say for x number of years, they should sell the flat back to the market, specifically, to a Singapore citizen," he suggested.
Alternatively, the government could consider rethinking the concept of 99-year leasehold flats.
"Why not offer HDB flats on 60-year or 70-year leaseholds? This way, you can get a five-room HDB flat for maybe $250,000? Young couples will be very happy because this doesn't stress their finances. After all, how many couples keep their units for 30-50 years? After five to 10 years, they sell their units and upgrade!"
Mr Sim, who is "semi-retiring" - "I am not retiring, to retire means to die!" - joined the Suntec Investment Group in 1994.
Under his direction, the company has penetrated the Middle East and North African markets, providing real estate consultancy and development advisory services. In addition, he spearheaded the creation of a new business unit - Chesterton Corporate Solutions - a one-stop service for investors looking for investment opportunities within South-east Asia.
He credits the three principles he lives by - responsibility, credibility, and integrity - for his success. This, despite having completed only 'A' levels.
"I'm not a scholar, but I'm a scorer," he quips. "People used to ask me, Ricky, which university and field do you come from? I always say I go to the football field. I hit the ground to meet people on the ground, to get the ground reaction, that's my forte."
A man for whom "networking is in my blood", Mr Sim hopes to start a small business based on his vast network of 15,000 contacts.
"Let's just say that I hope to do something that I enjoy doing, networking, but this time, not for free, but for a fee," he said with a smile.
Published January 14, 2013
Property bull an abnormal one: consultancy MD
Latest govt move likened to looping a rope through the bull's nose ring
By Mindy Tan
THE bull run that the property market has been on has been an unnatural one. After all, the bull, to take the analogy further, has been fuelled by six pit stops. The seventh, which came into effect on Saturday, however, may well take the wind out of the beast.
"Our (current) property bull run is a bit abnormal," said Ricky Sim, managing director of Chesterton Suntec International and Suntec Food & Leisure.
"Let me give you an analogy. When a bull runs without stopping, it will collapse sooner or later. In the same way, this property bull run has to stop. But this bull run has had six stops, in which the bull has had time to drink water, relax, and regain its strength. Without the six stops, the market would have crashed, just like the bull!"
The latest round of property cooling measures, which takes in several sectors and is expected to dampen speculation across the board, is the equivalent of looping a rope through the bull's nose ring, said Mr Sim.
"I think the measures will dampen the property sales market tremendously, but you will only know the full results after six months. I know of a lot of investors who've made 20-30 per cent profits and have been trying to unload (their investments) in the last six months. Now, finding a buyer will be a problem."
The measures, which were announced by the government on Friday, include steeper additional buyer's stamp duty rates, and lower loan-to-value limits coupled with higher minimum cash downpayment on housing loans.
The public housing sector too saw a host of measures, including the barring of permanent residents from subletting their entire HDB flat. PRs must also sell their HDB units within six months of buying a private residence.
On the industrial front, the authorities have introduced a seller's stamp duty for the first time.
Mr Sim lauded the move to stabilise the HDB market.
"Let permanent residents buy HDB flats, but if they leave Singapore, say for x number of years, they should sell the flat back to the market, specifically, to a Singapore citizen," he suggested.
Alternatively, the government could consider rethinking the concept of 99-year leasehold flats.
"Why not offer HDB flats on 60-year or 70-year leaseholds? This way, you can get a five-room HDB flat for maybe $250,000? Young couples will be very happy because this doesn't stress their finances. After all, how many couples keep their units for 30-50 years? After five to 10 years, they sell their units and upgrade!"
Mr Sim, who is "semi-retiring" - "I am not retiring, to retire means to die!" - joined the Suntec Investment Group in 1994.
Under his direction, the company has penetrated the Middle East and North African markets, providing real estate consultancy and development advisory services. In addition, he spearheaded the creation of a new business unit - Chesterton Corporate Solutions - a one-stop service for investors looking for investment opportunities within South-east Asia.
He credits the three principles he lives by - responsibility, credibility, and integrity - for his success. This, despite having completed only 'A' levels.
"I'm not a scholar, but I'm a scorer," he quips. "People used to ask me, Ricky, which university and field do you come from? I always say I go to the football field. I hit the ground to meet people on the ground, to get the ground reaction, that's my forte."
A man for whom "networking is in my blood", Mr Sim hopes to start a small business based on his vast network of 15,000 contacts.
"Let's just say that I hope to do something that I enjoy doing, networking, but this time, not for free, but for a fee," he said with a smile.