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Thread: All property's in boomtown

  1. #1
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    Default All property's in boomtown

    All property's in boomtown

    By Tor Ching Lee, TODAY | Posted: 03 April 2007 1103 hrs


    Sky-high prices at luxury launches such as [email protected], One Shenton and One North Residences over the past three months have lifted the private property market to a quarterly gain of 4.6 per cent, according to flash estimates from the Urban Redevelopment Authority (URA).

    The property price index rose from 130.2 points in the previous quarter to 136.2 points in the first quarter of this year, the highest increase in seven years.

    The latest record gain has led some property analysts to revise their growth projections for the year from 8 per cent, to between 10 and 18 per cent. Last year, private-property prices rose 10.2 per cent.

    Chief executive Mohd Ismail of real estate firm Propnex said: "With the development of the integrated resorts and strong foreign investor interest, I believe the momentum in the property market will continue at least for the next two to three years."

    While the gains were led by condominiums in the core central region such as St Thomas Suites, One Shenton and Orchard Turn which had an average quarterly price increase of 5.6 per cent, mass-market property prices in the rest of Singapore grew at a healthy pace.

    Prices of condos in non-prime areas of central Singapore rose 2.9 per cent in the first quarter, following a prior 2.2 per cent rise. Non-landed private residential property prices rose 2.6 per cent, compared with 1.5 per cent the previous quarter.

    Ms Tay Huey Ying, Colliers International director for research and consultancy, expects next quarter's price gains in areas outside the core central region to breach 3 per cent, while the core central region comprising the Downtown core, Sentosa and districts 9, 10 and 11 could stabilise in the region of 6 per cent.

    Other areas that have seen a significant rise in prices include the Meyer and Amber roads region, and Buona Vista, where new projects are now priced at 50 per cent more than what they would have fetched a year ago, said CB Richard Ellis executive director Li Hiaw Ho.

    Colliers' Ms Tay said: "Final numbers of the price growth will be higher than these flash estimates, as transactions that took place in the later part of the quarter would not have been taken into account yet."

    These include transactions for Orchard Turn Residences, Botanika, One North Residences and The Trillium.

    Meanwhile, prices of Housing and Development Board flats picked up, too, rising 1.2 per cent over the last quarter. This follows a mere 0.8 per cent rise in the final quarter of last year, that was preceded by three straight quarters of falling prices.

    Knight Frank director of research and consultancy Nicholas Mak said: "The public housing market will also see a price increase but at a more moderate pace. The question is, will HDB upgraders be priced out of the private-property market with the rising prices?" - TODAY/fa

  2. #2
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    Talking Re: All property's in boomtown

    YES!!!! HDB Dwellers will start to get very pissed , very soon !!!!

  3. #3
    Unregistered
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    Default Re: All property's in boomtown

    Quote Originally Posted by Unregistered
    YES!!!! HDB Dwellers will start to get very pissed , very soon !!!!
    I'd rather the average HDB dwellers not buy and speculate in private property. Cos that's when the bubble will start.

  4. #4
    AsiaOne
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    Default Minister Mah: Singapore Is The Place To Invest In

    AsiaOne
    10 April 2007

    Singapore is now the centre of attention among regional and global investment industries as it hosts its first Cityscape Asia 2007 - an international convention and exhibition in the property, investment and development sectors.

    This global networking event, which opened at Suntec City this morning, is similar to last year's Cityscape Dubai, which drew thousands of participants.

    Cityscape Asia, opened by Minister for National Development Mah Bow Tan, will highlight regional investment opportunities, iconic architecture and best practices in development to an international investment industry. The event will end on April 12.

    In his welcoming speech this morning, Mr Mah listed major Singapore achievements to show why this is "a global city of opportunities."

    He also said the event is an excellent opportunity for major investors, developers and governmental authorities involved in major property developments to share their plans and network with other key movers and shakers.

    It was timely to have the event in Asia as this region has been thriving, led by strong and sustained growth in China and India and the much-anticipated revival in Japan, Mr Mah added.

    "General sentiments are positive and upbeat, and these have in turn led to positive spin-offs in other sectors of the regional economies, including the real estate sector," he added.

    On Singapore as a strategic link and important gateway for global investors, he said: "With our central location, political stability and cosmopolitan character, we are well positioned to provide social and economic links between the East and the West.

    "Financial institutions based in Singapore trade around the clock, with Asia-Pacific centres, European and American markets, thus making Singapore a significant hub for 24-hour trading in foreign exchange and securities."

    Participants also heard Mr Mah list Singapore's new areas for growth.

    Said Mr Mah: "We have restructured our economy to ride the wave of globalisation. In the manufacturing sector, we are focusing on developing key industries such as petrochemicals and wafer fabrication. We are also investing heavily in R&D, especially in the areas of biomedical, water technology, and interactive and digital media.

    "We have built up a strong base in biotechnology and biomedicine, with a healthy international reputation and a good concentration of scientists based here. Going forward, more investment will be put into clinical research.

    "Singapore is already one of the leading global players in water technology. Two of the largest water companies in the world, General Electric Water and Siemens Water Technologies, have established R&D centres here. Led by home grown firms like Keppel, Sembawang and Hyflux, Singapore will remain focused on exporting our water technology to countries that have increasing demand for water, such as those in the Middle East and China.

    "In interactive and digital media, our technological university has already tied up with a Japanese company to produce Japanese anime, and going forward, there will be many other areas in this industry that we can develop.

    "Being a major global air hub, Singapore will also focus on growing the aerospace industry. We have plans for a big aerospace park to be built in Seletar.

    "With the Marina Bay Financial Centre (MBFC) in place, we aim to attract even more financial institutions and business services, to further strengthen our position as an international financial centre.

    "As the range of financial products and services grows, Singapore will leverage on its sound economic and financial fundamentals, conducive regulatory and business environment, as well as skilled and educated workforce to play an even larger role in global finance and business. Many multinational companies have already chosen to base their regional headquarters in Singapore, and today we are Asia's leading hub for finance, bioscience, aviation, transport and logistics.

    "Tourism is another priority sector for growth. We have embarked on a number of high impact tourism projects such as the two Integrated Resorts - one at Marina Bay, another at Sentosa; the Singapore Flyer - a 165m giant observation wheel at Marina Bay; and the Gardens by the Bay - three waterfront gardens with a combined area of 100Ha right in the heart of the city. Our target is to double annual visitor numbers to 17 million and triple tourism receipt to $30 billion by 2015."

    Mr Mah added that another key strategy to boost economic growth in Singapore is to strengthen economic ties with key trading partners to achieve greater market access for exports.

    "For example, in March 2006, we established the Korea-Singapore FTA (KSFTA), which is a milestone in Singapore's free trade efforts as it is the first comprehensive economic pact between Korea and an Asian partner. We also started negotiations for the China-Singapore FTA in October last year. We have previously concluded major bilateral trade agreements with other key economies throughout the world, including the US, Japan, India, New Zealand and Chile.

    "Singapore's extensive network of Free Trade Agreements, Avoidance of Double Taxation Agreements and Investment Guarantee Agreements, as well as its comprehensive air, sea and IT infrastructures, provides for the seamless flow of goods and services to markets around the world."

    He said the continued expansion of the Singapore economy will underpin and drive the growth of the property market. Our property market has been performing well over the last two to three years over a broad front across all sectors. Demand for all property sectors have been rising. Annual increase in demand for office space rose to a six year high of 290,000 sq m in 2006. Demand for shop space also grew strongly by 127,000 sq m in 2006, the highest annual increase since 1993.

    "The hotel Average Room Rate (ARR) for 2006 was estimated to reach $164, an increase of 19.6 per cent over 2005. The Average Occupancy Rate (AOR) for hotels in 2006 was estimated at 85 per cent, registering a growth of 1.4% point over that in 2005.

    "Private housing also saw good take-up, with a total of 10,360 uncompleted private residential units sold by developers in 2006, a historical high annual take-up that surpassed the previous record of 9,860 units in 1994. Of these, 24.5% were bought by foreigners, including permanent residents."

    Mr Mah said consultants have estimated that the total transaction value of investment by foreign companies in Singapore's real estate amounted to some S$5.4 billion in 2006, as compared to S$900 million in 2004.

    "The investors in our real estate include companies based in the many countries, namely, the US, Hong Kong, Australia, Germany, Japan, Middle East and Indonesia," he added.

    "Driven by positive sentiments the attractiveness of the Singapore Government's plans for key development areas, both local and foreign developers have been buying up development sites sold under the Government's sale of site programme over the past few years."

    For example, development of the Marina Bay area has accelerated with the sale of sites for the Marina Bay Integrated Resort, the Marina Bay Financial Centre and the Collyer Quay lifestyle hotel and commercial development.

    The announcement of the Government's plans to remake Orchard Road one of the world's premium shopping streets, has attracted investors to take up three prime sites in Orchard Road over the last two years.

    "These developments will add vibrancy to the Orchard area and enhance its position as a premier shopping destination," he added.

    REIT (Real Estate Investment Trust) is another growth area. Since the first REIT was launched in Singapore in 2002, it now has the largest REIT market outside Japan. Over the past four years, 15 REITs were listed on the Singapore stock exchange.

    "Singapore has several key advantages for the continued development of REITs. Our pro-investor tax environment aside, Singapore's REITs are also well-diversified, offering investors exposure to income streams from the office, retail, industrial, hotel and logistics sectors. Several of the REITs listed in Singapore have also diversified offshore to Hong Kong, Australia and other Asia- Pacific countries. With these factors in place, Singapore has the potential to be the hub for REIT listings in the region."

    Mr Mah also said that Singapore's pro-business environment is supported by a well-respected government with transparent and consistent policies that protect companies' physical and IP investments.

    "These efforts have not gone unnoticed. Singapore, said Merrill Lynch in a recent report dated 30 Mar 2007, is 'becoming the Zurich and Monaco - not just of Southeast Asia - but of all Asia' as it develops into a premier private banking centre and a tourist destination with its casino resorts.

    "More than just a good place to do business, Singapore is also a great city to live in. We welcome people from different cultures and offer a good quality living environment. We are ranked the best city to live in Asia by Mercer HR Consultants."

    He pledged that Singapore will continue to step up its efforts to enhance the city as a great place to live, work and play.

    "Our vision is to make Singapore a vibrant, global economy - a City in a Garden, with exciting developments, distinctive architecture, and enhanced greenery and waterfront access. Singapore will be an important destination, not only for business and travel, but also for international events and celebrations. With the development of many strategic areas, we believe that there are many opportunities for developers to invest in Singapore.

    "This is also a good time to invest in Singapore. Our economy is structurally and fundamentally strong, which in turn supports a healthy recovery in all sectors of the property market. With prime and strategic sites being made available now and in the near future, we look forward to increased participation from local and foreign investors," he added.

  5. #5
    Onlooker
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    Default Re: Minister Mah: Singapore Is The Place To Invest In

    Quote Originally Posted by AsiaOne
    AsiaOne
    10 April 2007

    Singapore is now the centre of attention among regional and global investment industries as it hosts its first Cityscape Asia 2007 - an international convention and exhibition in the property, investment and development sectors.

    This global networking event, which opened at Suntec City this morning, is similar to last year's Cityscape Dubai, which drew thousands of participants.

    Cityscape Asia, opened by Minister for National Development Mah Bow Tan, will highlight regional investment opportunities, iconic architecture and best practices in development to an international investment industry. The event will end on April 12.

    In his welcoming speech .......... that there are many opportunities for developers to invest in Singapore.

    "This is also a good time to invest in Singapore. Our economy is structurally and fundamentally strong, which in turn supports a healthy recovery in all sectors of the property market. With prime and strategic sites being made available now and in the near future, we look forward to increased participation from local and foreign investors," he added.

    Wah!
    Got goodies from Mah BowTan!
    Don't share so much with the foreigners leh.
    Pass more goodies to your own people.
    Better go grab the goodies now.

  6. #6
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    Thumbs down Re: All property's in boomtown

    Published April 12, 2007

    Homes: concern over deferred payment plans

    Fears that such schemes are shifting financing burden from households to developers and builders

    By SIOW LI SEN


    (SINGAPORE) Deferred payment schemes - said to be one of the factors fuelling the local property market - are drawing the attention of the Monetary Authority of Singapore (MAS).

    Such schemes are so popular with buyers that while the property market is red hot, it has not translated into healthy home loans growth.

    Instead, deferred payment schemes have shifted the burden of financing to developers and construction companies, and away from households. The schemes also encourage speculators to buy property they have no intention of hanging on to.

    And MAS is taking notice. Some bankers say it has been raising questions about banks' exposure to deferred payment schemes.

    'MAS recognises that such deferred payment schemes may pose additional risks to the developer and its bank, and expects banks which finance such property developers to take this into account in their management of exposure to the developer,' an MAS spokeswoman said in response to BT queries.

    According to MAS data on bank loans, building and construction loan growth rose a sizzling 18.1 per cent in February, following a 19 per cent gain in January. But home loans grew only 2.7 per cent in February and 2.1 per cent in January.

    Among the local banks, OCBC and DBS grew their building and construction loans 27 per cent and 21 per cent respectively in 2006. UOB increased its building and construction loans 4 per cent.

    OCBC spokeswoman Koh Ching Ching said the increase was due mainly to new drawdowns and loans to finance property development in Singapore, Malaysia and Greater China, with Singapore accounting for the bulk.

    'OCBC has a traditional strength in real estate financing,' said Ms Koh. 'We have dedicated real estate departments within our business banking division for both large and small and medium real estate companies.

    'The property sector is an important part of the Singapore economy and there are regulatory as well as internal guidelines to ensure that our exposure to this sector does not exceed certain limits.'

    Citigroup economist Chua Hak Bin said deferred payment schemes have become prevalent in the local property market, accounting for more than 90 per cent of transactions at recent new Marina and downtown projects.

    And he feels there is growing concern that this may be fuelling speculation and eventually will have a material impact on system-wide banking loans.

    'Price increases in new home sales which offer deferred payment hit much higher levels,' Dr Chua said. This is because buyers on such schemes have time to flip or resell the property for a profit.

    'The returns on capital can be substantial because of the implicit leverage,' he said. 'A 20 per cent increase in property value, for example, generates a 100 per cent return on the initial capital outlay.'

    Deferred payment schemes that allow buyers to fork out only a 10-20 per cent downpayment, with the balance due on completion usually three years later, are not new. They were introduced in the early 1990s and offered again in the early 2000s. 'But it wasn't prevalent then,' Dr Chua said.

    Not all developers offer deferred payment schemes. And some banks say overall progressive payment schemes are still more popular. This could be due to the higher cost of a property of at least 2-3 per cent if deferred payment is offered.

    UOB head of loans Kevin Lam said: 'Progressive payment borrowers, while more, are not significantly more, than deferred payment borrowers.'

    But an HSBC spokeswoman said that among its customers who have bought properties under construction, 60 per cent have opted for deferred payment schemes while 40 per cent have chosen progressive payment schemes.

    Citibank business director Tan Chia Seng said: 'For those properties where deferred payment schemes are made available, we have seen an increase in interest from home buyers. 'The nature of the deferred payment scheme generally makes new projects more attractive to investors. However, home buyers who intend to occupy the properties may be interested in deferred payment schemes as well if the property they purchase is priced at an imputed interest rate lower than the home loan rate.'

    Dr Chua warns though that buyers may be biting off more than they can chew, especially if the market tanks or the economy falters. The prevalence of deferred payment schemes suggests a mortgage surge will come eventually, he said. 'The day of reckoning will likely occur in 2009 when completions are expected to soar to 18,447 - more than double the typical annual supply.'

    Maybank's head of consumer banking Helen Neo said deferred payment loans are more risky.

    'Yes, as repayment only starts from TOP (temporary occupation permit),' she said. 'There could be changes in the borrower's income prior to TOP.'

  7. #7
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    Default Re: Minister Mah: Singapore Is The Place To Invest In

    Quote Originally Posted by Onlooker
    Wah!
    Got goodies from Mah BowTan!
    Don't share so much with the foreigners leh.
    Pass more goodies to your own people.
    Better go grab the goodies now.

    For own people? Forget it.
    He just helped the Thai guy to buy the entire Suites @ Cairnhill project and 4 entire floors of Orchard Residences.
    Sick man!

  8. #8
    Unregistered
    Guest

    Default Re: Minister Mah: Singapore Is The Place To Invest In

    Quote Originally Posted by Unregistered
    For own people? Forget it.
    He just helped the Thai guy to buy the entire Suites @ Cairnhill project and 4 entire floors of Orchard Residences.
    Sick man!

    No lah.
    He is asking them to buy from you.
    So you should be happy.

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