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Thread: Property price is coming down fast

  1. #16201
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    Quote Originally Posted by seletar
    Developers are truly greedy despicable cheats... inflating the caveat price, hiding the true price, manipulating the property price index , and lying about the actual sales numbers to consumers. And the unknowing consumers upon seeing the inflated caveat prices from the developers' price deception and manipulation, ended up being conned to pay more to the developers for their units.

    http://www.straitstimes.com/premium/...rices-20130126

    Straits Times Forum
    Published on Jan 26, 2013

    PROPERTY SALES

    Concerns over practice of inflating prices


    HAVING visited several property launches over the past year, I wish to share some observations ("Tough action to cool property market"; Jan 12).

    To create a rising price scenario, developers commonly mark up the selling price of their units, and then offer discounts or rebates in the form of furniture vouchers and stamp duty refunds.

    As buyers, we are advised to lodge caveats based on the higher price before the discounts and rebates, so that we can qualify for higher bank loans.

    While most banks require buyers to declare the purchase price and discounts, many people do not do so in order to qualify for higher loans.

    This benefits the developers as it will show an increase in the residential property price index, which in reality may not be the true price transacted.

    Unfortunately, this strategy of price manipulation has now spread to the resale market.

    Of late, some owners who may have bought several units in new launches are now offering refunds and cashback.

    As is the case for new launches, a buyer must agree to lodge the caveat based on the seller's inflated asking price, and refunds via a cashier's order will be given on the completion date.

    The price lodged in the caveat requested by the seller is to support the bank valuation as well as show price increases to generate future sales for the seller.

    This is a grey area that I hope the Monetary Authority of Singapore and Urban Redevelopment Authority (URA) can address as it may have legal implications.

    I also encourage the URA to conduct thorough checks on claims by developers of their projects selling like "hot cakes".

    This is because when one checks the URA's actual sales figures later, they are often lower than what was initially claimed.

    It would be helpful if the URA could publish a monthly update of all recent project sales and units left unsold.

    Lastly, I thank The Straits Times for publishing both the caveats and actual rental prices of private properties. This is a positive step as it allows for transparency and helps buyers and tenants make informed decisions.

    David Lim Beng Heng
    Finally, URA is taking action against price manipulation and cheating by the developers.

    http://www.valuebuddies.com/thread-2838.html

    The Straits Times
    http://www.straitstimes.com
    Published on Feb 06, 2013

    Indirect discounts for home buyers under review

    Such sweeteners artificially inflate prices, make property curbs seem ineffective

    By Esther Teo Property Correspondent


    THE dangling of sweeteners to home buyers by developers to take the sting out of recent property cooling measures is being reviewed by the Government.

    It is concerned that sweeteners such as stamp duty rebates and furniture vouchers cause home prices to be artificially inflated.

    The Straits Times understands that the Urban Redevelopment Authority (URA) is looking into the practice and might act soon, as indirect discounts could make the cooling measures seem ineffective.

    Unlike upfront discounts, some rebates and vouchers are given only after a buyer has completed a purchase, so the price cuts are not reflected in the sales caveats lodged with the URA.

    That means home prices fed to the URA quarterly price index - based on caveats lodged - might not reflect real property values.

    Experts say this causes home prices to be less transparent and keeps them artificially inflated.

    But developers prefer indirect discountsas they do not affect the caveat pricing. This keeps the official pricing firm so earlier buyers are not unhappy at missing out on price cuts, and also props up home prices islandwide.

    Sources say as a start, the URA could be looking at publishing net prices that take into account indirect discounts as part of its monthly developers' sales data.

    The latest property curbs last month led developers to pull out all the stops. Some offered rebates to lessen the impact of the additional buyer's stamp duty (ABSD). Frasers Centrepoint, for instance, offered stamp duty discounts of 5 to 7 per cent to all buyers of Q Bay Residences in Tampines. Buyers could take an upfront discount or a rebate after 20 per cent of the price had been paid.

    Giving full or partial ABSD rebates is not new but if the latest curbs lead to an increase in the practice, it would distort prices.

    Developers say URA has already been encouraging them informally to be more transparent with prices. Some add there is no benefit in masking prices as the Government has stated its intention to see prices soften and artificially propping up prices might only attract more measures.

    Some experts add that the review is overdue as developers' indirect discounts are negating the impact of the measures.

    Chesterton Suntec International's research head Colin Tan said more information - such as the discount given - should be put in caveats so buyers have a better sense of prices.

    OrangeTee managing director Steven Tan said the review was expected as "it is important for the true value of homes to be reflected in order to ensure that the cooling measures are effective".

    A National Development Ministry spokesman said the true purchase price of the property must be accurately conveyed to the potential buyer so that he can make an informed decision.

    The Commissioner of Stamp Duties can also recover any deficient duties if the declared price of a property falls below its market value, he added.

    The Monetary Authority of Singapore said that since 2002, it has required banks to factor in any discount or other benefit when calculating an appropriate loan.

    [email protected]

  2. #16202
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    all missing the points .. if for next few years M3 grows only by 3% ... all problems solevd
    Ride at your own risk !!!

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    another loophole developer can do.
    pay high agent commission 10%.

    in developer's books, 10% commission is given to agent. but developer prepare 2 cheques, 1 cheque 4% comm to agent, another cheque 6% to buyer.

    agent pay income tax on the whole 10% income. lets say 20% rate. still have 4-2=2% agent comm goes to him.

    my friend did that with spottiswoode 18, at that time, the developer was offering massive commisions. he ask agent to split the commission with him. yet he declared the full amount to the bank.

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    The late struggle of the bull.. doing all sorts of things to give the false appearance that the bull is still winning while in actual fact the bull have lose most of its stream...

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    http://sbr.com.sg/residential-proper...jump-8-10-2015

    Singapore Business Review
    RESIDENTIAL PROPERTY | Staff Reporter, Singapore
    Published: 05 Feb 13

    Home vacancy rates likely to jump 8-10% by 2015


    Hope for an improvement is fading.

    According to CIMB, their expectations of rising vacancy rates remain unchanged. The firm believes that the government is now planning for some excess property supply, after the lessons of the past five years.

    The upcoming 700k supply includes 200k units due for completion by 2016. CIMB's in-house model imputes 80k foreigner net add (vs. 61k) and 30k net add to residents per year (vs. 20k), and we still see vacancy rates rising to 8-10% by 2015.

    Beyond 2016, the fairly muted new population growth targets will raise vacancy rates for private residential units further, after the first 200k units are completed.

    Here's more from CIMB:

    The subsequent 500k units added after 2016 will cater to an additional 1.6m population (based on current household size of 3.2). If the population grows at 86k a year, this means an additional 1.2m people to populate the 500k housing units i.e. supply will still exceed demand.

    We present another perspective - we strip out demand for HDB and gauge how much household size has to shrink to absorb supply. The ratio of PRs to citizens stands at 16% in 2030, in line with 2011/12.

    The percentage of residents staying in HDB flats was 83%. This implies 27k residents a year demanding HDB flats, or 8k units based on household a size of 3.2 and 116k units cumulative from 2017 onwards.

    If the balance 380k units are private residential units, catering to non-residents and the balance 17% of residents totalling 61k population net add a year (860k in aggregate from 2017 onwards) implies a household size of 2.3 for private units vs. 3.4 on average.

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    http://sbr.com.sg/retail/news/cash-s...in-2013-survey

    Singapore Business review
    RETAIL | Staff Reporter, Singapore
    Published: 06 Feb 2013

    Cash-strapped Singaporeans limit expenses in 2013: survey


    10% said they have no spare cash.

    According to Nielsen’s latest survey, there's lower consumer spending intentions across many discretionary areas, from taking holidays and buying clothes to stock investments.

    The biggest spending intention declines in Singapore were reported for investments in stock / mutual funds, down 8 points to 24 percent and savings, down 6 points to 58 percent, as well as saving for retirement, down 4 points to 20 percent.

    With a slight increase in confidence in Q3 last year, spending intentions improved as well, although this seems to have been a short-lived uptick rather than a continuous improvement.

    The lingering cautious sentiment could be the result of consumers having less spare cash – 10 percent of respond ents say they have no spare cash in Q4, an increase of 3 percentage points from the preceding quarter.

    In the last quarter of 2012, 63 percent of consumers in Singapore indicated they have changed their spending habits to save on household expenses (up slightly from 62% in Q3 2012).

    The top 3 areas where consumers have cut-back include: new clothes (55%); buying cheaper grocery brands (47%); and saving on utilities (47%).

    Even when economic conditions improve, consumers in Singapore say they are likely to continue watching their household expenses (see chart 3).

    “Consumers remain cautious when it comes to spending and managing their expenses and we expect them to adopt various coping strategies such as value-seeking and buying on promotions,” observes Joan Koh, Managing Director, Nielsen Singapore and Malaysia. “Companies are likely to step up on promotional activities to increase or defend their market share and while they are generally likely to see a combination of sales uplift, increased profitability and loyalty, the relationship is not a given. To protect their brand, companies need to carefully measure the impact of promotional activities.”

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    http://sbr.com.sg/residential-proper...-income-growth

    Singapore Business review
    RESIDENTIAL PROPERTY | Staff Reporter, Singapore
    Published: 06 Feb 2013

    You won't believe how home price hike outstrips income growth


    Low interest rates are masking the truth.

    According to Nomura, low interest rates have kept housing “affordable” based on the monthly mortgage service (20-21% for HDB 4-room flats and mass-market private condos on our numbers).

    However, if the effects of interest rates are removed, it appears household income growth has not caught up with the rise in home prices (the price-to-household income multiples for HDB 4-room flats and mass-market private condos = 5.9-6.4x, vs. the mid-cycle 5.1-6.2x, on our numbers).

    Here's more from Nomura:

    Anecdotally, it appears banks have also increased mortgage rates by c.10-20bps since the end of 2012. Assuming a mortgage rate of 3%, the mortgage service ratio would increase to 24-26% for HDB 4-room flats and mass-market private condos, vs. the current 20-21% and mid-cycle 20-25%, on our numbers.

    The government’s concern is therefore not unfounded, in our view, considering 1) the fast rising leverage of the average households’ balance sheets, 2) higher home prices that has outpaced income growth, and 3) mortgage rates that are creeping up. More policy intervention is therefore on the table if the previous rounds of cooling measures prove to be ineffective in cooling the housing market.


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    http://www.channelnewsasia.com/stori...252417/1/.html

    Bank of Mexico head warns of 'perfect storm' for global economy



    By Sylvia Paik | Posted: 05 February 2013 1930
    Channel News Asia


    SINGAPORE: A "perfect storm" could be brewing in the global economy, according to Bank of Mexico Governor Agustin Carstens who was speaking at the Monetary Authority of Singapore lecture on Tuesday.

    Mr Carstens warned that massive capital flows to emerging markets and some strong performing advanced economies could lead to asset price bubbles.

    He cautioned against financial markets being overly optimistic as this could cause mis-pricing in some asset classes.

    He feared these countries could later face a reversal in capital flows as the major advanced economies start exiting their accommodative monetary policy stance.

    Such conditions could create major financial stability risks to such capital recipient countries, he added.

    Mr Carstens urge these countries to adopt "thoughtful macro-prudential policies".

    He also warned emerging economies of the risks of letting their domestic currencies appreciate as this could hurt their growth especially when some advanced economies actively pursue a depreciating real exchange rate policy.

    - CNA/fa


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    Quote Originally Posted by seletar
    According to CIMB, their expectations of rising vacancy rates remain unchanged. The firm believes that the government is now planning for some excess property supply, after the lessons of the past five years.

    The upcoming 700k supply includes 200k units due for completion by 2016. CIMB's in-house model imputes 80k foreigner net add (vs. 61k) and 30k net add to residents per year (vs. 20k), and we still see vacancy rates rising to 8-10% by 2015.

    Beyond 2016, the fairly muted new population growth targets will raise vacancy rates for private residential units further, after the first 200k units are completed.
    ......
    just want to point if properties are not released on the market, then it is not part of the supply. Government can overbuilt and time the release of the HDB stock so that prices dont collapse. Same for developers who can hold the units. It is the individual properties owners who usually cannot hold and will slash price so that tenant will bear at least partially the mortgage payment.

    just like there are ample supplies of jewellery grade diamonds, but DeBeers only make available a little of them each year, to create the illusion of scarcity.

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    Quote Originally Posted by hopeful
    just want to point if properties are not released on the market, then it is not part of the supply. Government can overbuilt and time the release of the HDB stock so that prices dont collapse. Same for developers who can hold the units. It is the individual properties owners who usually cannot hold and will slash price so that tenant will bear at least partially the mortgage payment.

    just like there are ample supplies of jewellery grade diamonds, but DeBeers only make available a little of them each year, to create the illusion of scarcity.
    agree with you , good brother

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    Quote Originally Posted by blackjack21trader
    agree with you , good brother
    As I mentioned as few weeks back, supply is reducing drastically!
    Just need to imagine (for many here no nid to imagine) you have a few properties (say 2,3,4), you will NEVER want to sell your properties at this point in time and hold cash.

    The world is starting to inflate. To the US, it does matter if USD10 is the new USD5! Debts reduced by 50%!

    Good Luck!

    DKSG

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    For those who is overleveraged, how is the market now? Possible to sell at average valuation now?

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    Quote Originally Posted by Rosy
    For those who is overleveraged, how is the market now? Possible to sell at average valuation now?
    Like I say lor, try putting up your property at 5% below last done and see how many offers you can get.

    Then u will know the demand.

    DKSG

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    Quote Originally Posted by DKSG
    Like I say lor, try putting up your property at 5% below last done and see how many offers you can get.

    Then u will know the demand.

    DKSG
    U mean prices has dropped at least 5%? Thats really bad.

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    Quote Originally Posted by DKSG
    As I mentioned as few weeks back, supply is reducing drastically!
    Just need to imagine (for many here no nid to imagine) you have a few properties (say 2,3,4), you will NEVER want to sell your properties at this point in time and hold cash.

    The world is starting to inflate. To the US, it does matter if USD10 is the new USD5! Debts reduced by 50%!

    Good Luck!

    DKSG
    you are not making sense.
    supply for rental is still the same be it is 10 rental units held by 2 individual owners, or 10 rental units held by 10 individual owners.
    what the article was talking about was vacancy rates.

    if vacancy rates are high, presumably tenants have more choices. individual owners either has to slash rate, to fill them up ie instead of 2 tenants sharing a room, now each tenant has 1 room each room for example.

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    Quote Originally Posted by Rosy
    U mean prices has dropped at least 5%? Thats really bad.

    Like that also can twist like that ?
    What I mean is that the demand out there is huge!

    Once the CM is removed, demand will surge.

    I also hope for price to drop 10%, coz I think that is the threshold for the CMs to be4 removed.

    lets see how lor...

    Office Boy nowadays nothing much to do, cant buy (ie didnt see anything worth paying 10% ABSD for), and cant sell, coz buy back also pay another 10% ABSD.

    DKSG

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    Quote Originally Posted by hopeful
    you are not making sense.
    supply for rental is still the same be it is 10 rental units held by 2 individual owners, or 10 rental units held by 10 individual owners.
    what the article was talking about was vacancy rates.

    if vacancy rates are high, presumably tenants have more choices. individual owners either has to slash rate, to fill them up ie instead of 2 tenants sharing a room, now each tenant has 1 room each room for example.

    Vacancy rates is creeping up because we have not widen the floodgates of foreigners coming in. Which is what the Pop WP is about.

    Once it passes the parlianment, which is more or less confirmed, you will see the number of foreigners and condo occupiers surge again.

    Some vacancy is good. Help to moderate demand.

    DKSG

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    everything goes up .. but property is STILL coming down soon loh

    HONG KONG - The government of Hong Kong has approved a 7 per cent rise in the city's minimum wage, lagging increases elsewhere in the region and drawing criticism from some who say it's not enough to help workers cope with costs in one of the world's most expensive cities.
    Ride at your own risk !!!

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    Quote Originally Posted by DKSG
    Like that also can twist like that ?
    What I mean is that the demand out there is huge!

    Once the CM is removed, demand will surge.

    ....

    DKSG
    Due to the cooling measures implemented on 14/1/2011.. the gov did not aware of the "side effect".. In fact such CM will push up the price indirectly..... So when they noticed that, they lan lan have to implement further CM
    http://www.housesinsingapore.com/new...b-speculations

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    Due to the cooling measures implemented on 14/1/2011.. the gov did not aware of the "side effect".. In fact such CM will push up the price indirectly..... By the time they noticed that, they lan lan have to implement further CM
    http://www.housesinsingapore.com/new...b-speculations

    For example of the "side effect":
    Let's say one project with 500 units..

    Year 1:
    Initially, 50 units available for sale .. with an average 1 new units added into new listing per month.. so is 62-units for 1st year
    Every month sold 2 units on average.. 1-yr sold 24-units..
    Left 38-units available for sale (62 - 24) at the end of Year 1

    Year 2:
    Brought forward 38 units available for sale from last year + 12 new listing = 50 units for 2nd year
    After sold 24-units for Year 2,
    Left 26-units available for sale (50 - 24) at the end of Year 2

    Year 3:
    Brought forward 26 units available for sale from last year + 12 new listing = 38 units for 3nd year
    After sold 24-units for Year 3,
    Left only 14-units available for sale (38 - 24) at the end of Year 3

    I assure the same units sold.. will not come back to the resale market for the next 3-yrs.. due to the hefty SSD for the first 3-yrs at least (16%, 12%, 8%)
    Last edited by Rysk; 06-02-13 at 21:41.

  21. #16221
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    Nowadays reporters camp online fishing for stories.


    Quote Originally Posted by seletar
    Finally, URA is taking action against price manipulation and cheating by the developers.

    http://www.valuebuddies.com/thread-2838.html

    The Straits Times
    http://www.straitstimes.com
    Published on Feb 06, 2013

    Indirect discounts for home buyers under review

    Such sweeteners artificially inflate prices, make property curbs seem ineffective

    By Esther Teo Property Correspondent


    THE dangling of sweeteners to home buyers by developers to take the sting out of recent property cooling measures is being reviewed by the Government.

    It is concerned that sweeteners such as stamp duty rebates and furniture vouchers cause home prices to be artificially inflated.

    The Straits Times understands that the Urban Redevelopment Authority (URA) is looking into the practice and might act soon, as indirect discounts could make the cooling measures seem ineffective.

    Unlike upfront discounts, some rebates and vouchers are given only after a buyer has completed a purchase, so the price cuts are not reflected in the sales caveats lodged with the URA.

    That means home prices fed to the URA quarterly price index - based on caveats lodged - might not reflect real property values.

    Experts say this causes home prices to be less transparent and keeps them artificially inflated.

    But developers prefer indirect discountsas they do not affect the caveat pricing. This keeps the official pricing firm so earlier buyers are not unhappy at missing out on price cuts, and also props up home prices islandwide.

    Sources say as a start, the URA could be looking at publishing net prices that take into account indirect discounts as part of its monthly developers' sales data.

    The latest property curbs last month led developers to pull out all the stops. Some offered rebates to lessen the impact of the additional buyer's stamp duty (ABSD). Frasers Centrepoint, for instance, offered stamp duty discounts of 5 to 7 per cent to all buyers of Q Bay Residences in Tampines. Buyers could take an upfront discount or a rebate after 20 per cent of the price had been paid.

    Giving full or partial ABSD rebates is not new but if the latest curbs lead to an increase in the practice, it would distort prices.

    Developers say URA has already been encouraging them informally to be more transparent with prices. Some add there is no benefit in masking prices as the Government has stated its intention to see prices soften and artificially propping up prices might only attract more measures.

    Some experts add that the review is overdue as developers' indirect discounts are negating the impact of the measures.

    Chesterton Suntec International's research head Colin Tan said more information - such as the discount given - should be put in caveats so buyers have a better sense of prices.

    OrangeTee managing director Steven Tan said the review was expected as "it is important for the true value of homes to be reflected in order to ensure that the cooling measures are effective".

    A National Development Ministry spokesman said the true purchase price of the property must be accurately conveyed to the potential buyer so that he can make an informed decision.

    The Commissioner of Stamp Duties can also recover any deficient duties if the declared price of a property falls below its market value, he added.

    The Monetary Authority of Singapore said that since 2002, it has required banks to factor in any discount or other benefit when calculating an appropriate loan.

    [email protected]
    Yee ha! Did I tickle your funny bone?


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    Ok I see, property supply drying up in next 3 years because of SSD, so property prices sure go up? Everyone will try to wait even if want to sell... So vicious cycle is supply reduce even further and if people want to buy have to pay more the longer they wait since no choice as little supply?

    Quote Originally Posted by Rysk
    Due to the cooling measures implemented on 14/1/2011.. the gov did not aware of the "side effect".. In fact such CM will push up the price indirectly..... By the time they noticed that, they lan lan have to implement further CM
    http://www.housesinsingapore.com/new...b-speculations

    For example of the "side effect":
    Let's say one project with 500 units..

    Year 1:
    Initially, 50 units available for sale .. with an average 1 new units added into new listing per month.. so is 62-units for 1st year
    Every month sold 2 units on average.. 1-yr sold 24-units..
    Left 38-units available for sale (62 - 24) at the end of Year 1

    Year 2:
    Brought forward 38 units available for sale from last year + 12 new listing = 50 units for 2nd year
    After sold 24-units for Year 2,
    Left 26-units available for sale (50 - 24) at the end of Year 2

    Year 3:
    Brought forward 26 units available for sale from last year + 12 new listing = 38 units for 3nd year
    After sold 24-units for Year 3,
    Left only 14-units available for sale (38 - 24) at the end of Year 3

    I assure the same units sold.. will not come back to the resale market for the next 3-yrs.. due to the hefty SSD for the first 3-yrs at least (16%, 12%, 8%)

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    Quote Originally Posted by ecimbew
    Nowadays reporters camp online fishing for stories.
    the empire strikes back... darth vader is watching and stands ready with more measures.

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    According to URA, as of 1st Jan 2013, developers have 36,352 unsold private home units and 15,215 private home units not launched yet for sale. Total number of unsold private home units by developers = 51,567 units, this number does not include units from land awarded to developers in 2013.

    Add the 51K of unsold units with the increasing vacancy rate, there's plenty of private housing supply in the market.


    Quote Originally Posted by seletar
    Developers currently have 36,352 unsold private home units and 15,215 private home units not launched yet for sale. Total unsold private home units by developers = 51,567.


    http://sbr.com.sg/residential-proper...n-next-4-years

    Singapore Business Review
    RESIDENTIAL PROPERTY | Staff Reporter, Singapore
    Published: 25 Jan 2013

    Over 100,000 private homes and EC units to be available in the next 4 years


    It's a healthy pipeline supply.

    According to URA, as at the end of 4th Quarter 2012, there was a total supply of 86,475 uncompleted private residential units from projects in the pipeline, higher than the 83,975 units in 3rd Quarter 2012. Of the supply in the pipeline, 36,352 units remained unsold as at 4th Quarter 2012.

    There was an additional supply of 10,201 EC units in the pipeline. In total, the pipeline supply of 96,676 units, including ECs, was the highest ever recorded since such data were first available in 2001.

    In addition, another 15,215 units are expected to be added to the pipeline supply soon. These units are from Government Land Sales (GLS) sites that had been awarded to developers, but for which planning approvals had not been obtained yet as at 4th Quarter 2012, as well as from Confirmed List sites from the 1H2013 GLS Programme that have not been awarded yet.

    If these units are included, there will be close to 111,891 private housing and EC units in the overall pipeline supply, many of which are expected to be completed in the next 3 to 4 years.

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    Vacant rate at 6.1% (over 16K units) and expected to increase to 8-10% by 2015 according to CIMB.



    Quote Originally Posted by seletar
    http://sbr.com.sg/residential-proper...homes-32-16877

    Singapore Business Review
    RESIDENTIAL PROPERTY | Staff Reporter, Singapore
    Published: 12 Dec 12

    Ghost town alert: Vacant homes up 32% to 16,877

    It will get worse in two years.

    According to Savills, with more homes completed over the past year, the market has seen a significant rise in vacant units islandwide. From the trough in Q1/2011, the number of vacant units has increased by 32% from 12,740 to 16,877 units in Q3/2012, pushing the vacancy rate up from 4.9% to 6.1% over the same period. As of Q3 this year, the number of vacant condos stands at 14,198 units and vacant houses at 2,679 units.

    The vacancy rate in the Central region was 7.9% in Q3/2012, above the five-year average of 7.5%. Similarly, the vacancy rates in the eastern and western regions of Singapore were 4.5% and 4.0% in Q3, higher than the 3.5% and 3.6% five-year averages respectively.

    The vacancy rate increases are in tandem with a surge in condo completions in these areas. Some major completions over the past year include Caspian (712 units) and Mi Casa (457 units) in the west; and Double Bay Residences (646 units), Waterfront Waves (405 units) and Optima (297 units) in the east. The completions in the Central region include Reflections (1,129 units), Floridian (336 units), The Trizon (289 units), Parvis (248 units), Viva (235units) and The Wharf (186 units).

    The number of vacant units is set to increase in the months ahead as an avalanche of new homes will be completed within the next two years. According to URA data, 91,869 new homes will be released to the market in the next i ve years, more than half of which have been sold. The growing supply of new homes poses a significant risk to investors who have bought private homes for rental investment, particularly if interest rates should rise.

    Although it has been reported that many new homes were bought for owner occupation, the emergence of shadow spaces when owners relocate into their new premises may prove to be an additional challenge for both the leasing and sales markets. If demand from population growth does not rise in tandem and interest rates start to rise, a signii cant rental correction cannot be discounted. The likelihood of an interest-rate spike is, however, small for the moment.


  26. #16226
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    According to Khaw Boon Wan yesterday, they are ramping up housing supply and building way ahead of demand. A housing oversupply is a likely outcome. Total housing supply (public+private) to be completed by 2016 = 197,559 units.


    Quote Originally Posted by seletar
    http://sbr.com.sg/residential-proper...0000-new-homes

    RESIDENTIAL PROPERTY | Staff Reporter, Singapore
    Published: 21 Jan 2013

    Singapore must brace itself for 200,000 new homes

    There'll be enough units for everyone, says Minister Khaw.

    In a blog post, Minister for National Development Khaw Boon Wan said that some 200,000 new housing units will be constructed. 80,000 of which are private properties, 10,000 are ECs and about 110,000 are public housing. "This is equivalent to the building of four new Ang Mo Kio towns by 2016, and we are still building more," he wrote.



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    http://www.singaporelawwatch.sg/slw/...utm_medium=rss

    Business Times
    Published February 07, 2013

    YESTERDAY IN PARLIAMENT

    Bill gives more teeth to Controller of Housing

    Developers will have to disclose benefits and discounts given to home buyers


    THE Controller of Housing will be empowered to require developers to disclose any benefits they provide to home buyers - including reimbursements of stamp duty, discounts and vouchers - and to publish the information, under an amendment Bill introduced for first reading in Parliament yesterday.

    The move will boost transparency on home prices, say industry players.

    This is one of the changes contained in the Housing Developers (Control and Licensing) (Amendment) Bill - which will be tabled for its second reading at a future Parliament seating.

    The Ministry of National Development said yesterday: "The...amendments to the Act will further enhance protection of home buyers and promote transparency in the property market. These amendments have taken into consideration feedback from the general public, as well as developers, property agents, property consultants, solicitors and other real estate professionals."

    The changes will empower the Controller of Housing to require developers to submit to it information on sales transactions in their projects such as the purchase price and agreements (for instance by a developer to reimburse a buyer for stamp duty paid on his purchase). The Bill will also allow the controller to publish the information or use it for compilations, analysis, research studies or surveys.

    Developers already submit monthly sales data on their projects (including prices of units sold) based on options granted, to the Urban Redevelopment Authority, which then releases the data on the 15th of the following month. However, the prices captured in this exercise would typically not reflect the incentives which have not been received by the buyers at the point when they were granted the option - such as reimbursement of stamp duty (usually given after it has been paid by the buyer), a furnishing voucher, or even an expensive artpiece.

    Such incentives may be given by the developer to the buyer only when the option is exercised several weeks later or even much further down the road, such as when the project has been completed, say agents. As a result, some of the developers' sale prices being submitted to URA each month and also reflected in caveats may be inflated. With such data fed into URA's private home price indices, this would mean that the indices may not reflect true property values.

    Analysts reckon that when the new rules take effect, URA's price indices could take a downward adjustment. "But then, we may not be comparing apples with apples in the sense that this practice of giving stamp duty absorption and other incentives has been going on for some time - unless the past price data is also similarly adjusted to take into account such incentives," said Nomura Singapore analyst Sai Min Chow.

    Agreeing, a property consultant suggests URA could ask developers to adjust price data for units they have sold since the start of 2012. "Stamp duty absorption and other soft discounts became more popular again after the first round of additional buyer's stamp duty was introduced in December 2011. Such a refinement would allow us to see whether prices actually dipped around Q1 last year," he added.

    Market watchers agreed that the impending change will promote greater transparency in the property market. With the end of this form of "price protection", the true property values will be made public and valuations would come down, said one property agent who declined to be named.

    Tan Tiong Cheng, chairman of Knight Frank, said: "These are refinements in the right direction with the overall objective of providing the purchaser and public better clarity, accuracy and transparency in respect of sale prices and specific details as to what are offered in the units."

    In addition to enabling URA to collect and publish more comprehensive and timely information on transacted prices of private homes, amendments to the Bill will also regulate the set-up of showflats, to ensure greater accuracy in developers' representation of housing units offered for sale. Moreover, the criteria for granting licences to housing developers will be tightened.

    "For example, a licence will not be granted to a developer company with a director who has been convicted of, or has served a sentence of imprisonment for, a fraud or dishonesty-related offence in or outside Singapore within a period of five years before the date of the licence application," MND said.

    As the fine amounts in the current Act were set in 1965, the Government is proposing to increase the fine amounts five-fold to sustain the deterrent effect.

    "The amendment will also allow offences under the Act and subsidiary legislations to be compounded," MND added.

  28. #16228
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    Quote Originally Posted by seletar
    .... Moreover, the criteria for granting licences to housing developers will be tightened.

    "For example, a licence will not be granted to a developer company with a director who has been convicted of, or has served a sentence of imprisonment for, a fraud or dishonesty-related offence in or outside Singapore within a period of five years before the date of the licence application," MND said.
    .....
    would it be effective?
    parent company set up subsidiaries to develop projects, 1 subsidiary = 1 project.
    it is individual subsidiary who will be affected and not the parent company itself. If individual subsidiary dont get license the next time round, no problem, parent company set up another subsidiary.

    eg Latitude, developed by Phoenix Realty, which is a subsidiary of Capitaland, but marketed under Capitaland brand.
    And if you see the list of licensed developer in URA, it will show the developer of Latitude is Phoenix Realty, not Capitaland.

    unless parent company also affected, then i dont think it would be effective.

    and mentioned before, have to reveal agent commision.
    Last edited by hopeful; 07-02-13 at 11:34.

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    http://www.singapolitics.sg/news/cap...-laurence-lien

    Cap population at 6m: NMP Laurence Lien


    Posted on Feb 7, 2013 2:21 PM Updated: Feb 7, 2013 2:21 PM
    By Robin Chan


    Nominated MP Laurence Lien on Thursday urged the Government to cap the population at 6 million and accelerate economic restructuring, as he became the second NMP to oppose the White Paper on Population.

    He called for a slower workforce growth rate of 1 per cent each year till 2020 and 0.5 per cent thereafter, and to take in fewer new citizens of about 10,000 to 15,000 than is projected in the population white paper.

    Growth could be supported instead by better restructuring efforts to bring in higher-skilled firms and labour, to use the reserves to invest in strategic industries and to make use of Singaporeans' savings "to maintain economic vitality".

    "I am having a major disconnect. How did we go from fearing ageing and depopulation to having a potential population explosion? Where does this dependence on growing GDP (gross domestic product) through increased immigration end?" he said in Parliament on the fourth day of the debate.

    The goals of raising productivity and slowing down workforce growth gave a sense of deja vu, he pointed out, as they were same targets set exactly 10 years ago by the then-government's Economic Review Committee, as he questioned whether the Government is really serious about moderating foreign workforce growth.

    Companies are still addicted to cheap, less-skilled foreign labour, and need "restructuring, or rehabilitation, not more drugs", he said.

    Protesting increasing the population much further, he pointed out that many of the top cities of today are smaller cities such as Toronto and Stockholm with populations of 2.6 million and 870,000 respectively, and are challenging the traditional cosmopolitan centres like New York, London and Tokyo.

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    http://www.singapolitics.sg/news/low...er-be-solution

    Low: Immigration can no longer be the solution


    Posted on Feb 7, 2013 2:39 PM Updated: Feb 7, 2013 2:39 PM
    By Goh Chin Lian


    Workers' Party chief Low Thia Khiang on Thursday accused the PAP Government of kicking the can of economic restructuring down the road and using immigration as the easy way out.

    He called on it to stop using this policy tool - which he said is the cause of problems today - as the solution for tomorrow.

    Instead, he said he believes the WP's proposal of raising the labour force participation rate among Singaporean women and seniors, is more sustainable.

    The party has also said it does not want to take in more foreigners than there are now.

    He spoke in English and Mandarin to object to the Government's White Paper on Population and Land Use Plan.

    Mr Low also argued that the Singaporean core will be diluted and that it would be hard to ensure integration of new citizens with "thorough-bred Singaporeans", whose ancestors came from overseas but whose national identity was formed over decades of nation building.

    He also accused the Government of downplaying the 6.9 million population as a "worst-case scenario" and wanted it to clarify if it has control over the inflow of foreigners or that Singaporeans should be prepared for an impending immigration tsunami.

    Describing the WP as the "responsible co-driver", Mr Low also said it is now telling the driver that "he is reading his road map upside down".

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