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Thread: Singapore property market will 'stay healthy'

  1. #1
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    Default Singapore property market will 'stay healthy'

    http://www.straitstimes.com/archive/...althy-20130709

    Singapore property market will 'stay healthy'

    Cooling measures will leave impact but market won't crash: OCBC chief

    Published on Jul 09, 2013

    By Rachael Boon


    THERE will probably be a correction in property market prices but a crash is unlikely, said OCBC Bank's chief executive officer, Mr Samuel Tsien.

    Part of the reason for its resilience is because the Singapore market holds a certain appeal to investors, he said.

    Still, rising interest rates and cooling measures will have an impact, Mr Tsien told The Straits Times at the sidelines of a major China forum at the Shangri-La Hotel yesterday.

    "As a result of the different measures imposed by the Government in making sure that speculative demand has been removed, there will be a slowdown in market activities," said Mr Tsien.

    "I don't think there will be a crash in the market. There will be some downward adjustment to prices but that is healthy in the long term."

    The Government has instituted seven rounds of property cooling measures since 2009, with the latest round in January.

    Other moves aimed at reducing the froth in the markets include lowering limits on loans and raising stamp duties.

    The measures have worked to stabilise prices.

    In the three months to June 30, prices for mass-market apartments rose 3 per from the previous quarter.

    But prices of homes in the city centre dropped 0.2 per cent in the second quarter, after growing 0.6 per cent in the first.

    More recently, the central bank put new curbs on loans to prevent borrowers from becoming over-leveraged.

    The outlook for interest rates is that they will likely rise in the next two years.

    The United States Federal Reserve has indicated that it will start to slow the pace of its monetary stimulus programme and eventually raise interest rates.

    The normalisation of rates will help OCBC, said Mr Tsien.

    He also feels that the bank, as well as others, will benefit from normalising interest rates, as "it's going to be beneficial to banks with a significant amount of Casa (current account, savings account) balances".

    This is true for OCBC, as its "Casa balances represent about 51 per cent of our total deposits".

    Casa accounts combine savings and checking accounts to encourage consumers to save with banks.

    A higher Casa ratio would mean that a bank has access to a cheaper source of funds, because it pays out less interest on Casa and can lend at a higher rate.

    "That will benefit OCBC Bank because lower-yielding deposits or zero interest rate deposits will be able to make some money as a result of the rising interest rates, by lending that money out to the market."

    Mr Tsien also took questions over the bank's risk management practices, especially regarding the interest rate setting processes.

    Last month, OCBC was among the banks here to be censured by the Monetary Authority of Singapore (MAS), and most were told to set aside extra funds to be parked at MAS at zero interest rates.

    The amount that OCBC Bank has to deposit as additional reserves is between $700 million and $800 million.

    Mr Tsien said that the impact is not significant, as it relates to the opportunity to earn interest on the amount.

    He added that the bank has introduced a series of new checks to tighten the rates submissions process.

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  2. #2
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    of course he say no crash la god knows how many property he got
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

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    Can see the activity in this forum is getting less though. Could be a sign that people are loosing interests in doing property transactions, at least locally.

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    Quote Originally Posted by azeoprop
    Can see the activity in this forum is getting less though. Could be a sign that people are loosing interests in doing property transactions, at least locally.
    In terms of interest, it should be in Malaysia -> UK -> Australia. More adventurous ones are in other ASEAN countries like Philippines.

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    Quote Originally Posted by azeoprop
    Can see the activity in this forum is getting less though. Could be a sign that people are loosing interests in doing property transactions, at least locally.
    Many (buyers) cannot buy anymore
    Many (sellers) do not want to sell already
    Many (investor) have diverted their interest to Iskandar/Malacca/KL etc

    So come here just to tok-kok only

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    I have just sold my condo and cashed out some profit. Should i go rent a place first or i enter the market now in Singapore. I planning to buy one for own stay and one for investment. Any advice?

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    But what goes upb must

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    Quote Originally Posted by azeoprop
    Can see the activity in this forum is getting less though. Could be a sign that people are loosing interests in doing property transactions, at least locally.
    a lot of people have been shut out. not much to talk about. most are just stuck being landlords for a while.

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    Quote Originally Posted by Rich12345
    I have just sold my condo and cashed out some profit. Should i go rent a place first or i enter the market now in Singapore. I planning to buy one for own stay and one for investment. Any advice?
    should not have sold. your replacement will wipe out your profit.

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    Quote Originally Posted by Rysk
    Many (buyers) cannot buy anymore
    Many (sellers) do not want to sell already
    Many (investor) have diverted their interest to Iskandar/Malacca/KL etc

    So come here just to tok-kok only
    Very well said!

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    Quote Originally Posted by leesg123
    should not have sold. your replacement will wipe out your profit.
    May i know why i should not have sold my property? If i rent and wait 1 or 2 years if market down by 10 to 20% than i enter to buy. If market go up within the first year, i no choice have to buy one first. What you think?

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    Quote Originally Posted by Rich12345
    May i know why i should not have sold my property? If i rent and wait 1 or 2 years if market down by 10 to 20% than i enter to buy. If market go up within the first year, i no choice have to buy one first. What you think?
    Would have been better off if you are holding that unit.

    - U need not pay rental all these months
    - What if prices remain steady or just dip 5%?
    - Buy again means stamp duty and all other fees again

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    Quote Originally Posted by leonglp
    Would have been better off if you are holding that unit.

    - U need not pay rental all these months
    - What if prices remain steady or just dip 5%?
    - Buy again means stamp duty and all other fees again
    I planning to cash out from my condo so that i can buy 2 smaller one when market correction. One for own stay and one for rental. Hopefully, price will go up in 5 years time. Can't afford to keep the condo if want to buy 2 new condo. Please advise am i doing the right move?

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    assuming what you are planning to buy for investment is easily rentable, plus what you buying to stay does not reduce living quality too much... do go ahead. this is what many people aspire towards.
    click: 🏢shoeboxmickeymousehouse 🏢

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    If ur current property is joint then u should have sell half to ur wife to en cash out some money. Then you will be considered first time buyer. Still got 2 property n dont need to rent.

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    Quote Originally Posted by csgan97
    If ur current property is joint then u should have sell half to ur wife to en cash out some money. Then you will be considered first time buyer. Still got 2 property n dont need to rent.
    Assumming the wife is power enough to tank the new TDSR?

    Else how would selling to wife create cash ?

    DKSG

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    Quote Originally Posted by Rich12345
    I planning to cash out from my condo so that i can buy 2 smaller one when market correction. One for own stay and one for rental. Hopefully, price will go up in 5 years time. Can't afford to keep the condo if want to buy 2 new condo. Please advise am i doing the right move?
    Your strategy of sell 1 to buy 2 is a brilliant one!

    However, your timing cannot be any worse!

    Why rent for 1 to 2 years and wait for market to correct?
    First, instead of collecting rent (you objective), you are paying rent; which might wipe our your entire profits if you keep procrastinating down the road.
    Second, no one actually knows whether the market will correct, crash or continue the run.
    Third, govt policies might change. If for your favour good, if against then you are stuck!

    Only when you have your 2 targets identified, then sell your current one and quickly move in for the kill.
    “其疾如風,其徐如林,侵掠如火,不動如山,難知如陰,動如雷震”

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    Quote Originally Posted by Rich12345
    I have just sold my condo and cashed out some profit. Should i go rent a place first or i enter the market now in Singapore. I planning to buy one for own stay and one for investment. Any advice?

    good lord

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    Quote Originally Posted by Rich12345
    May i know why i should not have sold my property? If i rent and wait 1 or 2 years if market down by 10 to 20% than i enter to buy. If market go up within the first year, i no choice have to buy one first. What you think?
    I hope you r not trolling. Govt is reducing GLS if I'm not mistaken. The manipulation of e market is at microscopic level to prevent correction but maintain very gradual price increase. Your exit n entry will only churn more stamp duties, commission n legal fees.

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    I think there's always nothing wrong with taking profit ... Problem is whether there's a better alternative and avenue for that money

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    The idea is good but really wrong timing.

    After selling, it is difficult to buy a new property due to the combination of ABSD + LTV + loan tenure up to 65 years. It is extremely unattractive for buyers in their 50s or 60s to buy anymore investment properties.

    Now with the new policy for the bank to check on the 60% loan which include car load, credit card and etc. it is even more difficult.

    For rental, one year rental could be around $30k for a 4-room HDB depends on location. So this would eat into the profit that you have earned. Previously, many people had cash out their properties to wait for crash but many are disappointed as since 2009 till now the property is still rising. Even worse, some of them cannot even buy after some of the CMs been implemented.

    One wrong step could kill the profit or even suffer a great loss. So be careful of every steps you take.

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    Quote Originally Posted by Stingray
    The idea is good but really wrong timing.

    After selling, it is difficult to buy a new property due to the combination of ABSD + LTV + loan tenure up to 65 years. It is extremely unattractive for buyers in their 50s or 60s to buy anymore investment properties.

    Now with the new policy for the bank to check on the 60% loan which include car load, credit card and etc. it is even more difficult.

    For rental, one year rental could be around $30k for a 4-room HDB depends on location. So this would eat into the profit that you have earned. Previously, many people had cash out their properties to wait for crash but many are disappointed as since 2009 till now the property is still rising. Even worse, some of them cannot even buy after some of the CMs been implemented.

    One wrong step could kill the profit or even suffer a great loss. So be careful of every steps you take.
    步步惊心,见机行事。

  23. #23
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    Quote Originally Posted by Rich12345
    May i know why i should not have sold my property? If i rent and wait 1 or 2 years if market down by 10 to 20% than i enter to buy. If market go up within the first year, i no choice have to buy one first. What you think?
    Hey guys!

    Office Boy is back !

    I always tell my colleagues if this is their view, then executing it is never wrong. The question is : what are your considerations when you say market down 20% in the next 1-2 years ?

    If the reasons are good enough, then selling at record prices may not be a bad idea!

    Just dont buy at record prices in some OCRs like some newbies here, sure got problem...

    Just to recap, Bishan 8 owners bought at record 1,000 psf more than a decade ago and it took them a decade to break even.

    DKSG

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    Quote Originally Posted by DKSG
    Hey guys!

    Office Boy is back !

    I always tell my colleagues if this is their view, then executing it is never wrong. The question is : what are your considerations when you say market down 20% in the next 1-2 years ?

    If the reasons are good enough, then selling at record prices may not be a bad idea!

    Just dont buy at record prices in some OCRs like some newbies here, sure got problem...

    Just to recap, Bishan 8 owners bought at record 1,000 psf more than a decade ago and it took them a decade to break even.

    DKSG
    There are always such 'black horses' projects in the market.

    Most are right project, right location, launched right time, priced wrong.

    The trick is how to spot them...
    click: 🏢shoeboxmickeymousehouse 🏢

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