Page 1 of 2 12 LastLast
Results 1 to 10 of 19

Thread: Home prices seen rising further this year

  1. #1
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Home prices seen rising further this year

    Published April 25, 2007

    MAS MACROECONOMIC REVIEW

    Home prices seen rising further this year

    Building, financial services sectors to benefit as well

    By UMA SHANKARI


    THE Monetary Authority of Singapore (MAS) yesterday said home prices are expected to continue to grow this year - after climbing 4.6 per cent in the first quarter, the highest growth seen in seven years.

    The gain, which has so far been greatest for the luxury market, could also filter down to other mid to high-end segments which could benefit from the steady stream of buyers who have sold their houses in en bloc sales, Singapore's central bank said in its latest Macroeconomic Review.

    MAS expects the property upturn to spill over to the construction and financial services sectors.

    'Contracts awarded have trended up steadily from 2003 to reach $16.1 billion last year, a level not seen since 2000. This is expected to translate into higher certified payments and value added for the sector in the near term,' says MAS. 'Indeed, the recovery of the construction sector continued in early 2007, underpinned by ongoing work in the residential segment.'

    A number of ongoing major projects including the Marina Bay Financial and Business Centre, the integrated resorts and the downtown MRT extension, are also expected to further fuel the recovery in the construction sector.

    The recent spike in raw material costs caused by disruptions to the supply of sand has not resulted in delays in building projects, MAS says. But the bank warns that in the future, new developments could be slowed or delayed if sand and concrete become more difficult to obtain.

    The large number of upcoming new commercial developments should also see more credit being extended to the building and construction industry, MAS says. This is expected to benefit the financial services sector.

    And on the consumer loans front, while mortgage loan growth has remained tepid in recent quarters, some upside could be seen in the months ahead as the residential property uptick at the luxury end begins to spread to the broader market.

    MAS also says that the recent upswing in property prices will have only a small impact on inflation this year. This is mainly because substantial price increases in the near term should be largely confined to the upper and middle segments of the private residential market, MAS predicts.

    'On balance, the impact of rising property prices on consumer price index (CPI) inflation is likely to be modest, with the direct impact contributing only 0.1 percentage point in 2007, compared with the average of negative 0.2 percentage points over the past three years,' says MAS.

  2. #2
    Curious
    Guest

    Default Re: Home prices seen rising further this year

    Quote Originally Posted by mr funny
    Published April 25, 2007

    MAS MACROECONOMIC REVIEW

    Home prices seen rising further this year

    Building, financial services sectors to benefit as well

    By UMA SHANKARI


    THE Monetary Authority of Singapore (MAS) yesterday said home prices are expected to continue to grow this year - after climbing 4.6 per cent in the first quarter, the highest growth seen in seven years.

    The gain, which has so far been greatest for the luxury market, could also filter down to other mid to high-end segments which could benefit from the steady stream of buyers who have sold their houses in en bloc sales, Singapore's central bank said in its latest Macroeconomic Review.

    MAS expects the property upturn to spill over to the construction and financial services sectors.

    'Contracts awarded have trended up steadily from 2003 to reach $16.1 billion last year, a level not seen since 2000. This is expected to translate into higher certified payments and value added for the sector in the near term,' says MAS. 'Indeed, the recovery of the construction sector continued in early 2007, underpinned by ongoing work in the residential segment.'

    A number of ongoing major projects including the Marina Bay Financial and Business Centre, the integrated resorts and the downtown MRT extension, are also expected to further fuel the recovery in the construction sector.

    The recent spike in raw material costs caused by disruptions to the supply of sand has not resulted in delays in building projects, MAS says. But the bank warns that in the future, new developments could be slowed or delayed if sand and concrete become more difficult to obtain.

    The large number of upcoming new commercial developments should also see more credit being extended to the building and construction industry, MAS says. This is expected to benefit the financial services sector.

    And on the consumer loans front, while mortgage loan growth has remained tepid in recent quarters, some upside could be seen in the months ahead as the residential property uptick at the luxury end begins to spread to the broader market.

    MAS also says that the recent upswing in property prices will have only a small impact on inflation this year. This is mainly because substantial price increases in the near term should be largely confined to the upper and middle segments of the private residential market, MAS predicts.

    'On balance, the impact of rising property prices on consumer price index (CPI) inflation is likely to be modest, with the direct impact contributing only 0.1 percentage point in 2007, compared with the average of negative 0.2 percentage points over the past three years,' says MAS.

    This is good!
    Can MAS also recommend some properties for us to buy?

  3. #3
    Credit Suisse
    Guest

    Default Re: Home prices seen rising further this year

    "The rate of [property] appreciation in Singapore looks extremely compelling. Places like Tokyo, London, Hong Kong and cities in the US are already up on the curve and quite mature. In Singapore, it looks like the beginning of a multiyear boom."

    - Arjuna Mahendran, Chief Investment Strategist
    Credit Suisse Private Banking
    Singapore

  4. #4
    Bypasser
    Guest

    Default Re: Home prices seen rising further this year

    Quote Originally Posted by Business Times
    CityDev chairman plans to keep some units in new residentialprojects
    Kalpana Rashiwala
    Business Times
    10 May 2007

    Kwek Leng Beng is so confident about the ongoing property bull market that he's considering retaining a portion in some new residential developments for rental income and capital appreciation.

    'We'll do this selectively and it will help us even out earnings fluctuations from our core property development/ trading business,' says Mr Kwek, who is executive chairman of Hong Leong Group and its listed property unit City Developments.

    This new business model is no different from keeping office buildings for rental income, he explains in a recent interview with BT.

    'Residential also has a lot of potential. Let's say, I had two towers in a residential project. I could sell one, and keep the other - and maybe sell later when prices are higher, keep for rental income, or even go for an en bloc sale one day, when I will be entitled to a windfall,' he said.

    The issue in today's hot property market is that 'the selling price of your current project becomes the break-even cost for your next project' because of the ever-increasing cost of buying replacement land. 'You might as well not sell your residential development, ' Mr Kwek argues.

    He says that retaining a portion of units in residential developments makes sense also because residential rentals are set to appreciate further on the back of leasing demand created by the influx of foreign talent into Singapore.

    ....................

    Another compelling reason to include real estate as part of one's investment portfolio: 'If you look at Forbes' list of the world's richest persons, many of them have their wealth backed by real estate.'

    Now Mr Kwek is also buying. How not to go up further?

  5. #5
    Unregistered
    Guest

    Default Re: Home prices seen rising further this year

    Quote Originally Posted by Bypasser
    Now Mr Kwek is also buying. How not to go up further?
    Mr Kwek is one the biggest property seller in Asia by profession. Are you having a Bird flu and you can't even think straight?

  6. #6
    LB Kwek
    Guest

    Default Re: Home prices seen rising further this year

    "You should quickly re-invest your windfall in another property, to continue riding on the current buoyant property market."

    - 10 May 2007

  7. #7
    CB Crack
    Guest

    Default Re: Home prices seen rising further this year

    Quote Originally Posted by LB Kwek
    "You should quickly re-invest your windfall in another property, to continue riding on the current buoyant property market."

    - 10 May 2007
    [QUOTE=CB Crack]"You should quickly refill your toilet paper in another
    toilet, to continue shitting on the current overflowing toilet bowl."

  8. #8
    Beng
    Guest

    Default Re: Home prices seen rising further this year

    [QUOTE=CB Crack]
    Quote Originally Posted by CB Crack
    "You should quickly refill your toilet paper in another
    toilet, to continue shitting on the current overflowing toilet bowl."

    Cheong ah!
    If toilet cleaner can buy, you can also buy!
    Buy buy buy!
    Huat ah!

  9. #9
    Unregistered
    Guest

    Angry Re: Home prices seen rising further this year

    Yah rise by negative 150% next year.
    Hope you all go bankrupt

  10. #10
    Happy Man
    Guest

    Default Re: Home prices seen rising further this year

    Quote Originally Posted by Unregistered
    Yah rise by negative 150% next year.
    Hope you all go bankrupt

    Don't be sad. Just imagine all of us go bankrupt.
    This should make you happy right? Just imagine!
    We hope you are happy now!

    Break! Break! Break all the reocrd psf!
    150% ROI on our investment soon.
    We are happy too!

    You are happy. We are happy. We all are happy!
    What a happy family!
    Yes!

Page 1 of 2 12 LastLast

Similar Threads

  1. Private home prices seen rising as early as Q1 next year
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 11-07-17, 22:51
  2. Replies: 11
    -: 06-04-11, 13:43
  3. HK home prices see rising up to 15% this year
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 25-02-07, 11:45
  4. Home prices expected to keep rising
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 08-02-07, 12:11
  5. Rising stock market leads property prices by a year
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 13-11-06, 23:51

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •