View Full Version : Kwek Leng Beng says time to review property measures
Londonproperty123
03-07-14, 14:11
Why? Apparently, Mr Kwek thinks that the property cooling measures are hurting Singapore as an investment destination.
He was quoted in the media saying,
"Singapore would lose our edge as an investment destination unless Government reviews cooling measures."
I don't buy Mr Kwek's arguments as I think the property prices in Singapore can afford to come down some more.
Perhaps his arguments used are a tad self-serving.
I have blogged more about my views here -
http://londonproperty123.blogspot.sg/2014/07/kwek-leng-beng-right-time-to-review.html
Patrickstar
03-07-14, 14:34
high pty prices, lousy rental yield, absd, tdsr, rising sibor... our pty mkt has almost ground to a halt.
high pty prices, lousy rental yield, absd, tdsr, rising sibor... our pty mkt has almost ground to a halt.
TDSR, Not high pty prices, lousy rental yield, absd, rising sibor is the cause. CM8 is the one that halt the rise, the rest have no effect after a while.
Govt better don't do anything because price must come down more! Crash ah! My prophecy will come true as long as they do nothing.................. :p
Why? Apparently, Mr Kwek thinks that the property cooling measures are hurting Singapore as an investment destination.
He was quoted in the media saying,
"Singapore would lose our edge as an investment destination unless Government reviews cooling measures."
I don't buy Mr Kwek's arguments as I think the property prices in Singapore can afford to come down some more.
Perhaps his arguments used are a tad self-serving.
I have blogged more about my views here -
http://londonproperty123.blogspot.sg/2014/07/kwek-leng-beng-right-time-to-review.html
Govt better don't do anything because price must come down more! Crash ah! My prophecy will come true as long as they do nothing.................. :p
Then they stop GLS, developer can take donkey years to sell, reduce stamp duty.............. finally to encourage people to buy DPS, Huat ah........
how many times ah kwek want to cry papa cry mama to govt to remove ABSD?
http://www.theonlinecitizen.com/2014/07/cdl-chairman-again-calls-on-govt-to-ease-property-curbs/
First, the government has no business helping private real estate companies like Kwek Leng Beng’s to attract international business. Nor, as [Straits Times’] Cheryl Ong put it in her opinion article in ST A20 yesterday, no obligation for the government to “give a lift” to the property market.” The real estate industry is an industry that basically thrives on monopolistic rents. It is not a productive industry, in a strict sense of the term. If Kwek Leng Beng finds it hard to make money, he only has himself to blame for not working harder. Meritocracy, right?
Second, it is of no loss to Singapore if we miss out on Kwek Leng Beng’s so-called [foreign] “investments.” In fact, what we have observed is the extreme negative externalities wrought by the free flow of such “investments” (read: cash) due to excess liquidity which has its roots in the liberal cash-printing US, EU and Chinese central bank policies. The spike in commercial rental increases (again monopolistic rents) has caused consumer prices to increase, and the spike in home sale and rental prices in all sectors has caused plenty of problems for Singaporeans who wish to own a home.
Third, by Cheryl Ong’s calculation, private home prices have spiked 60% since 2009.
Assuming a generous sustainable rate of 6% compound increase for home prices since 2009, home prices should only have increased by 33.8%.
We are about 25% over-valued. Quarterly decreases of 1.5% is nothing.
Forth and finally, the government’s role should be to develop a sustainable, moderate, gradual increase in home prices (just like overall inflation!) so that homes remain affordable for the masses in land-scarce Singapore – and not to indulge folks like Kwek Leng Beng who are too happy to make a quick buck from policy errors and mistakes.
Why? Apparently, Mr Kwek thinks that the property cooling measures are hurting Singapore as an investment destination.
He was quoted in the media saying,
"Singapore would lose our edge as an investment destination unless Government reviews cooling measures."
And Minister Khaw will stand in front and shout "Thou shalt not pass!"
If this is the case, why govt didn't take any action against escalating commercial rentals?
Why govt didn't flood enough land to over-supply commercial properties and offices so that we will not be having shortage of supply now and there will not be high inflation now because companies are passing these costs to consumers?
There is no obligation for govt to give residential property a lift after all those so many residential properties cooling measures but there are just NO major cooling measures to cool commercial properties! Strange isn't it? :beats-me-man:
If residential properties are 25% over-valued, commercial properties are like >100% overvalued? Isn't it time for govt to act on commercial properties rentals escalation and suppress them so that inflation will come down? :mad:
It is absolutely govt's job to ensure that inflation stays low and hence it is their job to act against these jacking up of commercial properties rentals! :2cents:
As such, What was mentioned in that article doesn't make any cow sense! :doh:
how many times ah kwek want to cry papa cry mama to govt to remove ABSD?
http://www.theonlinecitizen.com/2014/07/cdl-chairman-again-calls-on-govt-to-ease-property-curbs/
First, the government has no business helping private real estate companies like Kwek Leng Beng’s to attract international business. Nor, as [Straits Times’] Cheryl Ong put it in her opinion article in ST A20 yesterday, no obligation for the government to “give a lift” to the property market.” The real estate industry is an industry that basically thrives on monopolistic rents. It is not a productive industry, in a strict sense of the term. If Kwek Leng Beng finds it hard to make money, he only has himself to blame for not working harder. Meritocracy, right?
Second, it is of no loss to Singapore if we miss out on Kwek Leng Beng’s so-called [foreign] “investments.” In fact, what we have observed is the extreme negative externalities wrought by the free flow of such “investments” (read: cash) due to excess liquidity which has its roots in the liberal cash-printing US, EU and Chinese central bank policies. The spike in commercial rental increases (again monopolistic rents) has caused consumer prices to increase, and the spike in home sale and rental prices in all sectors has caused plenty of problems for Singaporeans who wish to own a home.
Third, by Cheryl Ong’s calculation, private home prices have spiked 60% since 2009.
Assuming a generous sustainable rate of 6% compound increase for home prices since 2009, home prices should only have increased by 33.8%.
We are about 25% over-valued. Quarterly decreases of 1.5% is nothing.
Forth and finally, the government’s role should be to develop a sustainable, moderate, gradual increase in home prices (just like overall inflation!) so that homes remain affordable for the masses in land-scarce Singapore – and not to indulge folks like Kwek Leng Beng who are too happy to make a quick buck from policy errors and mistakes.
if i am mr kwek i will retire:beats-me-man:
but i am not mr kwek so i got to work...:mad:...yes boss coming boss...:D:D:D
Londonproperty123
05-07-14, 08:03
Well, Tharman now says property market not likely to crash but 'further correction will not be unexpected.'
Tharman was speaking at the annual Asian Insights conference, having a dialogue with DBS CEO.
http://londonproperty123.blogspot.sg/2014/07/dpm-tharman-singapore-property-crash.html
means CM is going to stay :D
ah kwek must be crying now
Well, Tharman now says property market not likely to crash but 'further correction will not be unexpected.'
Tharman was speaking at the annual Asian Insights conference, having a dialogue with DBS CEO.
http://londonproperty123.blogspot.sg/2014/07/dpm-tharman-singapore-property-crash.html
Kwek Leng Beng is correct, CMs needs to be tweak because without foreigners participation in the Singapore property market, all our grand masterplans will not take off and UHNWI will start looking at other cities to park the funds
ok, i suggest lower ABSD for property above $5M and no ABSD for property above $10M would suffice to attract UHNWI
this should not affect 99% of sporean dream to own private property. besides, there is still restriction for landed property.
Kwek Leng Beng is correct, CMs needs to be tweak because without foreigners participation in the Singapore property market, all our grand masterplans will not take off and UHNWI will start looking at other cities to park the funds
walkthetiger
05-07-14, 12:51
you are right. i suggest lower ABSD for property above $5M and no ABSD for property above $10M would suffice to attract UHNWI
....you are sure?... This would mean you are encouraging lower tax for richer...Will this be fair to those upgraders from HDB?
anyway, the threshold is set above $5M and above $10M ... this would not hinder hdb upgraders right
if you are talking about tax less for super-rich, depends on perspective lor
instead of die die tax them ABSD and property is not moving ...
might as well sell and collect the standard 3% stamp duty (no ABSD or lower ABSD) and there is still other tax $$ collected along the way and yearly property tax
3% stamp duty x $5M = $150K
3% stamp duty x $10M = $300K
actually, i am all in to tax higher for super-rich but i don't want to kill the goose that lay eggs leh ... how?
....you are sure?... This would mean you are encouraging lower tax for richer...Will this be fair to those upgraders from HDB?
walkthetiger
05-07-14, 13:24
anyway, the threshold is set above $5M and above $10M ... this would not hinder hdb upgraders right
if you are talking about tax less for super-rich, depends on perspective lor
instead of die die tax them ABSD and property is not moving ...
might as well sell and collect the standard 3% stamp duty (no ABSD or lower ABSD) and there is still other tax $$ collected along the way and yearly property tax
3% stamp duty x $5M = $150K
3% stamp duty x $10M = $300K
actually, i am all in to tax higher for super-rich but i don't want to kill the goose that lay eggs leh ... how?
Perhaps the super rich should invest in other areas that help the country to produce more... offering better jobs to singaporean...
.. Just ask if this is in-line with what they are doing currently...
fully agree. property is the MOST unproductive investment
$1M goes up $1.2M goes up $1.5M produce nothing and generate zero job
high end property goes up even much higher at rapid pace
everyone wants to be landlord shake leg and collect rental up up up all the way
Perhaps the super rich should invest in other areas that help the country to produce more... offering better jobs to singaporean...
.. Just ask if this is in-line with what they are doing currently...
Allthepies
05-07-14, 14:03
Perhaps the super rich should invest in other areas that help the country to produce more... offering better jobs to singaporean...
.. Just ask if this is in-line with what they are doing currently...
The super rich cannot be stupid unless via inheritance...they wont dumb dumb spend money to invest in our country to make our lives better... they are in it to make money, if properties here cannot make money they will just go elsewhere, they wont pump money to build schools, roads, factories to create jobs and make our lives better unless there is money to be made
yes. hence, it's govt duty to attract investor and deter speculator? that's why policy is in place, isn't it?
The super rich cannot be stupid unless via inheritance...they wont dumb dumb spend money to invest in our country to make our lives better... they are in it to make money, if properties here cannot make money they will just go elsewhere, they wont pump money to build schools, roads, factories to create jobs and make our lives better unless there is money to be made
Allthepies
05-07-14, 14:30
yes. hence, it's govt duty to attract investor and deter speculator? that's why policy is in place, isn't it?
Yup to attract good investments, we need good hardware (roads, electricity supply, offices, water supply etc) which our government is doing an excellent job, and then we need soft infrastructure which is our people..hmm but in this area we are stagnant or moving backwards...
ok, i suggest lower ABSD for property above $5M and no ABSD for property above $10M would suffice to attract UHNWI
this should not affect 99% of sporean dream to own private property. besides, there is still restriction for landed property.
I would prefer that they waive ABSD for property within the Central Area of the CCR as this segment of the market are predominantly bought and occupied by foreigners and not Singaporeans
So REITs should be banned?
fully agree. property is the MOST unproductive investment
$1M goes up $1.2M goes up $1.5M produce nothing and generate zero job
high end property goes up even much higher at rapid pace
everyone wants to be landlord shake leg and collect rental up up up all the way
If this the case, shouldn't REITs be banned & no single individual can own more than 2 properties?
Oh, there are so many REITs owned by GLCs!
fully agree. property is the MOST unproductive investment
$1M goes up $1.2M goes up $1.5M produce nothing and generate zero job
high end property goes up even much higher at rapid pace
everyone wants to be landlord shake leg and collect rental up up up all the way
Hello??! A robust property sector means more transactions and money goes into stamp fee. More pool of property agents, more spending on advertising too. Maintenance of properties? So many things it can trigger.
fully agree. property is the MOST unproductive investment
$1M goes up $1.2M goes up $1.5M produce nothing and generate zero job
high end property goes up even much higher at rapid pace
everyone wants to be landlord shake leg and collect rental up up up all the way
ok, i'm referring to residential properties not commercial and industrial properties that REITS invested.
we all know commercial and industrial properties and buildings create businesses and jobs.
walkthetiger
05-07-14, 19:22
The super rich cannot be stupid unless via inheritance...they wont dumb dumb spend money to invest in our country to make our lives better... they are in it to make money, if properties here cannot make money they will just go elsewhere, they wont pump money to build schools, roads, factories to create jobs and make our lives better unless there is money to be made
If these so called "super rich" are all here looking easy money only and all thinking for themselves, as a Singaporean yourself so you hope them to drive up prices and making you paying more for everything? they appear ain't connected to your country too, if so and u welcome them with both hands? Then why Singapore need to help them earning more?
Don't treat Singapore as "carrot head" and never should we help them to treat Singapore as "carrot head" .
Well, residential properties create even more businesses and jobs than commercial properties! Jobs and businesses are created for estate agents, lawyers, contractors, plumbers, security guards (at least 2 in each small estate), electricians, interior designers, estate managers, technicians, gardeners, cleaners, handymen, furniture shops, bed and mattresses shop and businesses, curtains, etc etc!
On the other hand, commercial and industrial properties are owned by just a few big companies mostly and use consolidated inhouse agents, lawyers, inhouse technicians, managers, and use very few security guards to guard a very big office space etc! They create less jobs and businesses than residential properties since they don't need beds and mattresses, curtains, dinning tables, and less security guards and less cleaners (more automation) etc! :(
ok, i'm referring to residential properties not commercial and industrial properties that REITS invested.
we all know commercial and industrial properties and buildings create businesses and jobs.
walkthetiger
05-07-14, 19:39
If these so called "super rich" are all here looking easy money only and all thinking for themselves, as a Singaporean yourself so you hope them to drive up prices and making you paying more for everything? they appear ain't connected to your country too, if so and u welcome them with both hands? Then why Singapore need to help them earning more?
Don't treat Singapore as "carrot head" and never should we help them to treat Singapore as "carrot head" .
Those who are helping these greedy super riches who ain't connected to Singapore and ain't contributing one cent to Singapore, may consider them as modern day "walking dog" of Singapore.
You ask the right question.
You should then ask why Singapore govt is giving so much concessions to all these rich MNCs to set up plants and offices in Singapore by giving them so much tax incentives, rental discounts, etc when according to what you said they should be taxing them more and charging them more for rental instead of giving concessions right?
If these so called "super rich" are all here looking easy money only and all thinking for themselves, as a Singaporean yourself so you hope them to drive up prices and making you paying more for everything? they appear ain't connected to your country too, if so and u welcome them with both hands? Then why Singapore need to help them earning more?
Don't treat Singapore as "carrot head" and never should we help them to treat Singapore as "carrot head" .
walkthetiger
05-07-14, 19:53
Well, residential properties create even more businesses and jobs than commercial properties! Jobs and businesses are created for estate agents, lawyers, contractors, plumbers, security guards (at least 2 in each small estate), electricians, interior designers, estate managers, technicians, gardeners, cleaners, handymen, furniture shops, bed and mattresses shop and businesses, curtains, etc etc!
On the other hand, commercial and industrial properties are owned by just a few big companies mostly and use consolidated inhouse agents, lawyers, inhouse technicians, managers, and use very few security guards to guard a very big office space etc! They create less jobs and businesses than residential properties since they don't need beds and mattresses, curtains, dinning tables, and less security guards and less cleaners (more automation) etc! :(
Obviously you have forgotten houses are just for staying, there should be a limit how much houses your country need. Super rich can buy most the Properties, if you allow them, that way will make the minority richer only. It will not be fair for the young common folks who will be working like a slave due to property prices.
Open your eyes, there are super rich who are here bring more value to the nation, don't make property as the only trade in Singapore, the future Gen will suffer.
walkthetiger
05-07-14, 19:59
You ask the right question.
You should then ask why Singapore govt is giving so much concessions to all these rich MNCs to set up plants and offices in Singapore by giving them so much tax incentives, rental discounts, etc when according to what you said they should be taxing them more and charging them more for rental instead of giving concessions right?
Open a plant in Singapore, we should welcome them, they create so much jobs here. Majority of Singaporean depend on Job to make a living.
GE is approaching and government needs to pace up to hand in their report book to show results based on their past promises. If it turn out as bad still or worse, it is really threathening for them in future GE.
Wunderkind
05-07-14, 23:22
GE is approaching and government needs to pace up to hand in their report book to show results based on their past promises. If it turn out as bad still or worse, it is really threathening for them in future GE.
In totality, they seem to have done better than the previous GE. At least , they have now tried to put the horse first before the cart.
.
I would think US econmy recovery will not be that soon. If they did, it will not be able to substain. It will go up and down, up and down for next 5 yrs at least. The interest rate will not raise significantly given that US recovery journey would be quite long. By the time it does, they would have fallen behind China...
Jonathan0503
07-07-14, 20:05
If this is the case, why govt didn't take any action against escalating commercial rentals?
Why govt didn't flood enough land to over-supply commercial properties and offices so that we will not be having shortage of supply now and there will not be high inflation now because companies are passing these costs to consumers?
There is no obligation for govt to give residential property a lift after all those so many residential properties cooling measures but there are just NO major cooling measures to cool commercial properties! Strange isn't it? :beats-me-man:
If residential properties are 25% over-valued, commercial properties are like >100% overvalued? Isn't it time for govt to act on commercial properties rentals escalation and suppress them so that inflation will come down? :mad:
It is absolutely govt's job to ensure that inflation stays low and hence it is their job to act against these jacking up of commercial properties rentals! :2cents:
As such, What was mentioned in that article doesn't make any cow sense! :doh:
First, the government has no business helping private real estate companies like Kwek Leng Beng’s to attract international business. Nor, as [Straits Times’] Cheryl Ong put it in her opinion article in ST A20 yesterday, no obligation for the government to “give a lift” to the property market.” The real estate industry is an industry that basically thrives on monopolistic rents. It is not a productive industry, in a strict sense of the term. If
Kwek Leng Beng finds it hard to make money, he only has himself to blame for not working harder. Meritocracy, right?
Second, it is of no loss to Singapore if we miss out on Kwek Leng Beng’s so-called [foreign] “investments.” In fact, what we have observed is the extreme
negative externalities wrought by the free flow of such “investments” (read: cash) due to excess liquidity which has its roots in the liberal cash-printing US, EU and Chinese central bank policies. The spike in commercial rental increases (again monopolistic rents) has caused consumer prices to increase, and the spike in home sale and rental prices in all sectors has caused plenty of problems for Singaporeans who wish to own a home.
Third, by Cheryl Ong’s calculation, private home prices have spiked 60% since 2009.
Assuming a generous sustainable rate of 6% compound increase for home prices since 2009, home prices should only have increased by 33.8%.
We are about 25% over-valued. Quarterly decreases of 1.5% is nothing.
Forth and finally, the government’s role should be to develop a sustainable, moderate, gradual increase in home prices (just like overall inflation!) so that homes remain affordable for the masses in land-
scarce Singapore – and not to indulge folks like Kwek Leng Beng who are too happy to make a quick buck from policy errors and mistakes.
Simple, there is no political motive. Companies and businesses can't vote
There, the rationale of not doing anything is not so simple? :beats-me-man:
Simple, there is no political motive. Companies and businesses can't vote
Plants are opened by the super-rich, you think they do charity? No wonder they employ so many cheap foreign labours? In that respect they better invest in properties because the jobs servicing properties are much better paid than those plants! :doh:
Open a plant in Singapore, we should welcome them, they create so much jobs here. Majority of Singaporean depend on Job to make a living.
If these so called "super rich" are all here looking easy money only and all thinking for themselves, as a Singaporean yourself so you hope them to drive up prices and making you paying more for everything? they appear ain't connected to your country too, if so and u welcome them with both hands? Then why Singapore need to help them earning more?
Don't treat Singapore as "carrot head" and never should we help them to treat Singapore as "carrot head" .
walkthetiger
07-07-14, 21:11
Plants are opened by the super-rich, you think they do charity? No wonder they employ so many cheap foreign labours? In that respect they better invest in properties because the jobs servicing properties are much better paid than those plants! :doh:
…Haha...In fact nobody has stopped those super rich from buying again...They can continue….the ABSD is already there ensuring more tax to the gov...Win-Win at both sides anyway…But if the price goes up again in short term, then another CM will come....this thing is that simple.
walkthetiger
07-07-14, 21:28
If ABSD of 15% is not trying to stop than what is it?
Heard many of them end up buying OCR condos, jacking up prices there
....If OCR is really that "hot" now, then let's expect all CMs to stay longer... Or maybe somebody should write to the minister to request more cooling measures... haha
They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies
....If OCR is really that "hot" now, then let's expect all CMs to stay longer... Or maybe somebody should write to the minister to request more cooling measures... haha
walkthetiger
07-07-14, 21:45
They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies
Life is a choice... upgrade is not one big urgent matter, and we all knew most of singapore HDB is basically fine, quite spacious too, some are still in prime location.
walkthetiger
07-07-14, 21:47
They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies
Life is a choice... upgrade is not one big urgent matter, and we all knew most of singapore HDB is basically fine, quite spacious too, some are still in prime location.
walkthetiger
07-07-14, 21:47
They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies
Life is a choice... upgrade is not one big urgent matter, and we all knew most of singapore HDB is basically fine, quite spacious too, some are still in prime location.
http://www.straitstimes.com/archive/tuesday/premium/money/story/right-time-review-cooling-measures-kwek-leng-beng-20140701
Right time to review cooling measures: Kwek Leng Beng
S'pore is losing property investments to other countries, says developer
Published on Jul 1, 2014 1:17 AM
Mr Kwek noted that manufacturing declined in May and said the property sector is a key pillar of the economy.
By Cheryl Ong
VETERAN property developer Kwek Leng Beng fears Singapore could lose its edge as an investment destination unless the Government reviews its property cooling measures.
Mr Kwek, executive chairman of Hong Leong Group Singapore and City Developments, said foreigners were choosing to plough their investment dollars into countries like Britain, Australia and the US over Singapore, while Singaporeans have been investing abroad.
"We are losing these investments to other countries even though these foreign properties have a higher risk profile," Mr Kwek told The Straits Times yesterday. "It is unlikely these investment dollars will return to Singapore."
He noted the unexpected decline in Singapore's manufacturing activity in May, adding that it is crucial to ensure that the property sector is in good health as it is a crucial pillar of the economy.
"The overall picture seems to suggest that it may be timely now for the Government to take another look at the cooling measures introduced and make adjustments accordingly," he said.
Mr Kwek's comments came as the Total Debt Servicing Ratio (TDSR) loans framework, which aims to deter borrowers from accumulating too much debt, hit its one-year mark on Sunday.
The measure, together with the Additional Buyer's Stamp Duty (ABSD), has hammered demand in the market.
New home sales in the first five months of this year plunged 52 per cent to 3,984 units from the same period a year ago, according to fresh estimates from the Urban Redevelopment Authority.
Industry players echoed Mr Kwek's sentiments, pointing out that even if the ABSD is eased, it is unlikely to encourage more speculative buying. PropNex chief executive Mohamed Ismail said: "It is not going to impact Singaporean's financial prudence or encourage speculation because they already can't overstretch themselves with the TDSR."
However, there is the possibility of a slight lift in prices if buyers returned in force to the market, Mr Ismail pointed out. "But buyers are already not picking up units now, so if prices increase, they may even be less inclined to buy," he said.
Century 21 chief executive Ku Swee Yong said neighbouring nations like Indonesia are becoming attractive alternative investment destinations. He added that policies should be aligned with the Government's aim of attracting foreigners to set up homes here.
Mr Kwek suggested in February that the Government consider lifting the hefty 15 per cent duty levied on foreigners buying homes after the property market and global economy showed signs of slowing. Prices have since fallen, confirming his concerns, he said yesterday.
However, Mr Kwek noted that the different segments have been affected to varying degrees, so there is no blanket solution.
"I have confidence the Government will take appropriate measures to deal with the challenges that Singapore faces," he said.
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