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Thread: Property cooling measures proving successful: Khaw

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    Default Property cooling measures proving successful: Khaw

    http://www.businesstimes.com.sg/spec...-khaw-20121016

    Published October 16, 2012

    Property cooling measures proving successful: Khaw

    Private, HDB resale market stabilising; five residential sites released for sale

    By Mindy Tan


    [SINGAPORE] Five sites yielding some 2,880 homes have been released for sale, even as the government has pledged that it remains ready to cool the housing market if necessary.

    Minister for National Development Khaw Boon Wan, asked by Members of Parliament yesterday what the government is doing to ensure housing remains affordable, said the cooling measures put in place thus far - including the curb on housing loan tenures - have met with some success. He said: "Both the private property and HDB resale market have shown signs of stabilising."

    Specifically, the growth in private property prices has moderated significantly, from 18 per cent in 2010 to 6 per cent last year and to 0.9 per cent in the first three quarters of this year.

    On the public housing front, the yearly Resale Price Index growth has also come down; it was 14.1 per cent in 2010, 10.7 per cent last year and 3.9 per cent in the first three quarters of this year. Mr Khaw indicated, however, that the market was not yet out of the woods, going by the uptick in RPI in Q3 2012 - a 2.0 per cent growth from Q2 based on flash estimates.

    He added that although the supply of Built-to-Order flats has been significantly ramped up, it will take time for the ramped-up supply to catch up with demand. The government will continue to monitor the public housing market, he said.

    Of the five 99-year-leasehold sites launched for sale this month under the government's plans to ensure a significant supply of housing - public and private - in the next two years, two are executive condominium (EC) sites. The first EC site is next to Flo Residence, at the junction of Punggol Field Walk and Punggol East. Sitting on 153,999 sq ft of land, it has maximum gross floor area (GFA) of about 461,997 sq ft and is expected to yield 435 units.

    Lee Sze Teck, senior manager of training, research and consultancy at DWG, thinks that, although the demand for ECs should remain healthy, the take-up rate may be slow because of the number of options in the market.

    He expects the site to attract a top bid of $270 to $320 per square foot per plot ratio (psf ppr), and pull in four to eight bidders. Nicholas Mak, research head at SLP International, pegs it at $290 to $329 psf ppr. With the significant housing supply in Punggol, he said, three to six bids could come in for this tender.

    Jones Lang LaSalle's national director for research and consultancy Ong Teck Hui has put the range for the top bid at $280 to $310 psf ppr, with "moderate interest" from three to five bidders, given that the site is located away from Punggol MRT Station and the town centre. The tender for this land parcel closes on Dec 6. The second site, located next to Sky Habitat in Bishan St 14, sits on a 120,855-sq-ft plot, and has maximum GFA of 592,189 sq ft, enough for 645 units.

    The land parcel set aside for Sky Habitat was sold to CapitaLand in February last year at $550 million, or $869 psf ppr.

    SLP's Mr Mak reckons that a reasonable land price for the parcel released for sale - one which would yield a launch price attractive to home buyers - could range from $680 to $735 psf ppr. Ten to 15 bids could be submitted, he said. However, CapitaLand is likely to protect is market position, which could ensure the top bid does not fall below $830 psf ppr, he said. DWG's Mr Lee expects the site to attract more than 10 bidders, with the top bid between $800 and $850 psf ppr; JLL's Mr Ong expects the top bid to be between $750 and $830 psf ppr.

    The tender for this site closes on Nov 29.

    Another EC site at the Sembawang Crescent- Sembawang Drive junction, measuring 233,760 sq ft, will be launched for tender on Oct 30. It has total GFA of 654,527 sq ft and can yield about 650 units.

    SLP's Mr Mak said: "Compared to the neighbouring EC development launched in the middle of this year - One Canberra - this land parcel is a choice site for a quality EC development due to its relative proximity to Sembawang MRT Station and Sembawang bus interchange."

    He expects the top bids to sit between $295 and $330 psf ppr. "As there's no other new EC project in the vicinity, it could attract some interest from developers. The tender could attract four to seven bids."

    But JLL's Mr Ong pointed out that Sembawang is a relatively small new town, so the immediate market catchment could be limited; demand could instead come from "a wider geography". He reckons four to six bidders will submit offers.

    DWG's Mr Lee noted the sales performance of One Canberra - 299 units out of 665 units sold as at last month - could result in cautious bidding for this site. He expects the top bid to be between $250 and $300 psf ppr, comparable to the $293 psf ppr for the One Canberra site last October.

    Two other sites in Tampines Ave 10, Parcels C and D, were made available for application by developers through the reserve list.

    Parcel C is approximately 238,860 sq ft, and has maximum GFA of about 668,806 sq ft. It is expected to contain 680 units.

    Parcel D is 168,567 sq ft and has maximum GFA of 471,988 sq ft. It is expected to contain about 470 units.

    DWG's Mr Lee said these sites may not be triggered, given the availability of other choice sites on the confirmed and reserve lists; that being said, the trigger price could be $300 to $350 psf ppr. If both land parcels are launched for sale today, Parcel C could fetch $388 to $441 psf ppr, and Parcel D, $390 to $441 psf ppr, said SLP's Mr Mak. The sites will be launched for tender only upon successful application by a developer who pledges to offer a minimum bid price acceptable to the state.

  2. #2
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    Ah yes, the spin master working his magic again.

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    Statistics is the next dirty word after Sex.

    You can always present only the ones that matter towards supporting any specific point you wish to make.

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    boss you say sucessful its sucessful la i cannot argue with you even i say its unsucessful you still win...

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    ikan bilis is offline i'm Buaya ! Girls BEWARE !!...
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    Quote Originally Posted by radha08
    boss you say sucessful its sucessful la i cannot argue with you even i say its unsucessful you still win...
    khaw is sucessful lah.... is already proven... bcoz both you and me kena whacked jialat jialat....

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    Whenever I see Tharman and Khaw, I envision Batman and Robin the dynamic duo protecting the public from the evil property bubble monster.

    Come on, Robin, to the Bat Cave! There's not a moment to lose! We need to plan more CM!- Batman


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    if this is considered successful, i dread to think what's a failure - HDB resale prices hitting $2million??!!

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    I think GLS prices will never be cooled so why he bother talking about CM working

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    Prices still high. People still chiong. Not cooling down leh.

    Tell you successful so that people think no more CM can relax a bit. Next time if you hear no more CM needed means CM coming soon.

    Then got other reasons to say CM needed becos of changes in the market, external factors, QE, dynamics, blah blah blah.

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    Quote Originally Posted by Regulators
    I think GLS prices will never be cooled so why he bother talking about CM working
    Part of his KPI.

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    The thinking behind the governemt is to provide the market with information on supply and let the market decides on the prices to bid bearing in mind the economic health and more cooling measures. There is a need to let "market forces" to detemine the right price for the lands.

    It is indeed rather difficult for developers to bid at the "right" price because of the amount of uncertainty. However, in order to continue in business, developers have to have land to build and flats to sell, so they take the risk to bid high in order to secure the sites.

    History has shown that when things turn bad, developers also got caught with expensive lands and not able to sell. Some developers even gave up their 5% option fees from en bloc sale.

    Developers are taking risk just like what we are buying at high prices. The only time developers stop buying land is when we stop buying their flats.

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    stamp duties make a pile.

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    Quote Originally Posted by Regulators
    I think GLS prices will never be cooled so why he bother talking about CM working
    Why the government need to subside the private housing ?

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    Quote Originally Posted by ikan bilis
    khaw is sucessful lah.... is already proven... bcoz both you and me kena whacked jialat jialat....
    ...damm sianzz...kena this type stupid cm..

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    Quote Originally Posted by blackapple
    Why the government need to subside the private housing ?
    simply because HDB uses the same land value in its computation of HDB prices.

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    Bishan's plot will be keenly watched by many observer after capitaland's eyebrowing raising bid.

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    Quote Originally Posted by kane
    Bishan's plot will be keenly watched by many observer after capitaland's eyebrowing raising bid.
    29 Nov is the deadline.

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    This will set the standard and pace for suburbia.

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    Quote Originally Posted by eng81157
    if this is considered successful, i dread to think what's a failure - HDB resale prices hitting $2million??!!
    Why worry, garmen already say affordable as long as monthly loan repayment is less that 40% of gross monthly salary......Just work hard to pay off the loan in 25-35yrs can already......

    No need to worry lah...........

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    Quote Originally Posted by Leeds
    The thinking behind the governemt is to provide the market with information on supply and let the market decides on the prices to bid bearing in mind the economic health and more cooling measures. There is a need to let "market forces" to detemine the right price for the lands.

    It is indeed rather difficult for developers to bid at the "right" price because of the amount of uncertainty. However, in order to continue in business, developers have to have land to build and flats to sell, so they take the risk to bid high in order to secure the sites.

    History has shown that when things turn bad, developers also got caught with expensive lands and not able to sell. Some developers even gave up their 5% option fees from en bloc sale.

    Developers are taking risk just like what we are buying at high prices. The only time developers stop buying land is when we stop buying their flats.
    That's why I think garmen come out with the latest CM to restrict those with tight budget to buy extra home. For our own good hor.... If not lose money during crisis, blame 'Ah Gong' again, how?

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    Quote Originally Posted by Pikachu1245
    That's why I think garmen come out with the latest CM to restrict those with tight budget to buy extra home. For our own good hor.... If not lose money during crisis, blame 'Ah Gong' again, how?
    Exactly! The rich could take more risk and only feel less rich should things turn bad. The tight budget buyers will suffer most so this CM is to deter this group of investor.

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    they don't have to subsidise, but how much they sell their land has a direct and indirect effect on property prices, public or private. Don't forget that HDB also buys land from govt so how much a land sold to private developer nearby has an effect public housing prices regardless of subsidy given to home buyers.

    Quote Originally Posted by blackapple
    Why the government need to subside the private housing ?

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    Quote Originally Posted by Leeds
    Exactly! The rich could take more risk and only feel less rich should things turn bad. The tight budget buyers will suffer most so this CM is to deter this group of investor.
    The fear of the rich people are exactly what you think it's alright... THEY FEEL LESS RICH. So they suffered the same anxiety as the budget buyers... and they also weight risks the same way as the budget buyers.

    I read somewhere.. some rich man say... it is better to be poor and die poor ..then to be rich and die poor. I can only guess it means the mass degradation of living standard while you are still alive. For a poor one..it does not matter..

    you can see a lot of tabloid stories of richies commit sucide in US and europe during the financial crisis right..

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    Quote Originally Posted by focus
    The fear of the rich people are exactly what you think it's alright... THEY FEEL LESS RICH. So they suffered the same anxiety as the budget buyers... and they also weight risks the same way as the budget buyers.

    I read somewhere.. some rich man say... it is better to be poor and die poor ..then to be rich and die poor. I can only guess it means the mass degradation of living standard while you are still alive. For a poor one..it does not matter..

    you can see a lot of tabloid stories of richies commit sucide in US and europe during the financial crisis right..
    I like the moral of your story.

    As for the current CM, the rich could afford to lose and only feel less rich should things turn bad. Of course we are not talking about them losing all their wealth. Rich people usually know how to manage their wealth or else they cannot possibly be rich. However, those on tight budget will be in deep trouble.

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    Quote Originally Posted by focus
    The fear of the rich people are exactly what you think it's alright... THEY FEEL LESS RICH. So they suffered the same anxiety as the budget buyers... and they also weight risks the same way as the budget buyers.

    I read somewhere.. some rich man say... it is better to be poor and die poor ..then to be rich and die poor. I can only guess it means the mass degradation of living standard while you are still alive. For a poor one..it does not matter..

    you can see a lot of tabloid stories of richies commit sucide in US and europe during the financial crisis right..
    ...even more poor died of starvation.....

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    The land price is at high now, so it is best for the govern to release more land to capitalise it. Collect more $$$$$$$$

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