Kwek Leng Beng says time to review property measures

[walkthetiger]

You ask the right question.
You should then ask why Singapore govt is giving so much concessions to all these rich MNCs to set up plants and offices in Singapore by giving them so much tax incentives, rental discounts, etc when according to what you said they should be taxing them more and charging them more for rental instead of giving concessions right?

Open a plant in Singapore, we should welcome them, they create so much jobs here. Majority of Singaporean depend on Job to make a living.

[Strata]

GE is approaching and government needs to pace up to hand in their report book to show results based on their past promises. If it turn out as bad still or worse, it is really threathening for them in future GE.

[Wunderkind]

GE is approaching and government needs to pace up to hand in their report book to show results based on their past promises. If it turn out as bad still or worse, it is really threathening for them in future GE.

In totality, they seem to have done better than the previous GE. At least , they have now tried to put the horse first before the cart.

.

[Strata]

I would think US econmy recovery will not be that soon. If they did, it will not be able to substain. It will go up and down, up and down for next 5 yrs at least. The interest rate will not raise significantly given that US recovery journey would be quite long. By the time it does, they would have fallen behind China...

[Jonathan0503]

If this is the case, why govt didn't take any action against escalating commercial rentals?
Why govt didn't flood enough land to over-supply commercial properties and offices so that we will not be having shortage of supply now and there will not be high inflation now because companies are passing these costs to consumers?
There is no obligation for govt to give residential property a lift after all those so many residential properties cooling measures but there are just NO major cooling measures to cool commercial properties! Strange isn't it?

If residential properties are 25% over-valued, commercial properties are like >100% overvalued? Isn't it time for govt to act on commercial properties rentals escalation and suppress them so that inflation will come down?

It is absolutely govt's job to ensure that inflation stays low and hence it is their job to act against these jacking up of commercial properties rentals!

As such, What was mentioned in that article doesn't make any cow sense!

First, the government has no business helping private real estate companies like Kwek Leng Beng’s to attract international business. Nor, as [Straits Times’] Cheryl Ong put it in her opinion article in ST A20 yesterday, no obligation for the government to “give a lift” to the property market.” The real estate industry is an industry that basically thrives on monopolistic rents. It is not a productive industry, in a strict sense of the term. If
Kwek Leng Beng finds it hard to make money, he only has himself to blame for not working harder. Meritocracy, right?

Second, it is of no loss to Singapore if we miss out on Kwek Leng Beng’s so-called [foreign] “investments.” In fact, what we have observed is the extreme
negative externalities wrought by the free flow of such “investments” (read: cash) due to excess liquidity which has its roots in the liberal cash-printing US, EU and Chinese central bank policies. The spike in commercial rental increases (again monopolistic rents) has caused consumer prices to increase, and the spike in home sale and rental prices in all sectors has caused plenty of problems for Singaporeans who wish to own a home.

Third, by Cheryl Ong’s calculation, private home prices have spiked 60% since 2009.

Assuming a generous sustainable rate of 6% compound increase for home prices since 2009, home prices should only have increased by 33.8%.

We are about 25% over-valued. Quarterly decreases of 1.5% is nothing.

Forth and finally, the government’s role should be to develop a sustainable, moderate, gradual increase in home prices (just like overall inflation!) so that homes remain affordable for the masses in land-
scarce Singapore – and not to indulge folks like Kwek Leng Beng who are too happy to make a quick buck from policy errors and mistakes.

Simple, there is no political motive. Companies and businesses can't vote

[teddybear]

There, the rationale of not doing anything is not so simple?

Simple, there is no political motive. Companies and businesses can't vote

[teddybear]

Plants are opened by the super-rich, you think they do charity? No wonder they employ so many cheap foreign labours? In that respect they better invest in properties because the jobs servicing properties are much better paid than those plants!

Open a plant in Singapore, we should welcome them, they create so much jobs here. Majority of Singaporean depend on Job to make a living.

If these so called "super rich" are all here looking easy money only and all thinking for themselves, as a Singaporean yourself so you hope them to drive up prices and making you paying more for everything? they appear ain't connected to your country too, if so and u welcome them with both hands? Then why Singapore need to help them earning more?

Don't treat Singapore as "carrot head" and never should we help them to treat Singapore as "carrot head" .

[walkthetiger]

Plants are opened by the super-rich, you think they do charity? No wonder they employ so many cheap foreign labours? In that respect they better invest in properties because the jobs servicing properties are much better paid than those plants!

…Haha...In fact nobody has stopped those super rich from buying again...They can continue….the ABSD is already there ensuring more tax to the gov...Win-Win at both sides anyway…But if the price goes up again in short term, then another CM will come....this thing is that simple.

[walkthetiger]

If ABSD of 15% is not trying to stop than what is it?
Heard many of them end up buying OCR condos, jacking up prices there

....If OCR is really that "hot" now, then let's expect all CMs to stay longer... Or maybe somebody should write to the minister to request more cooling measures... haha

[heehee]

They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies

....If OCR is really that "hot" now, then let's expect all CMs to stay longer... Or maybe somebody should write to the minister to request more cooling measures... haha

[walkthetiger]

They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies

Life is a choice... upgrade is not one big urgent matter, and we all knew most of singapore HDB is basically fine, quite spacious too, some are still in prime location.

[walkthetiger]

They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies

Life is a choice... upgrade is not one big urgent matter, and we all knew most of singapore HDB is basically fine, quite spacious too, some are still in prime location.

[walkthetiger]

They should just fix the side effects they created. Pity the HDB upgraders have to buy at inflated price! They pay slightly more in $psf they can buy CCR! But CCR mostly too big for them to afford! End up they are at losing end because of policies

Life is a choice... upgrade is not one big urgent matter, and we all knew most of singapore HDB is basically fine, quite spacious too, some are still in prime location.

[reporter2]

http://www.straitstimes.com/archive/...-beng-20140701

Right time to review cooling measures: Kwek Leng Beng

S'pore is losing property investments to other countries, says developer

Published on Jul 1, 2014 1:17 AM

Mr Kwek noted that manufacturing declined in May and said the property sector is a key pillar of the economy.

By Cheryl Ong


VETERAN property developer Kwek Leng Beng fears Singapore could lose its edge as an investment destination unless the Government reviews its property cooling measures.

Mr Kwek, executive chairman of Hong Leong Group Singapore and City Developments, said foreigners were choosing to plough their investment dollars into countries like Britain, Australia and the US over Singapore, while Singaporeans have been investing abroad.

"We are losing these investments to other countries even though these foreign properties have a higher risk profile," Mr Kwek told The Straits Times yesterday. "It is unlikely these investment dollars will return to Singapore."

He noted the unexpected decline in Singapore's manufacturing activity in May, adding that it is crucial to ensure that the property sector is in good health as it is a crucial pillar of the economy.

"The overall picture seems to suggest that it may be timely now for the Government to take another look at the cooling measures introduced and make adjustments accordingly," he said.

Mr Kwek's comments came as the Total Debt Servicing Ratio (TDSR) loans framework, which aims to deter borrowers from accumulating too much debt, hit its one-year mark on Sunday.

The measure, together with the Additional Buyer's Stamp Duty (ABSD), has hammered demand in the market.

New home sales in the first five months of this year plunged 52 per cent to 3,984 units from the same period a year ago, according to fresh estimates from the Urban Redevelopment Authority.

Industry players echoed Mr Kwek's sentiments, pointing out that even if the ABSD is eased, it is unlikely to encourage more speculative buying. PropNex chief executive Mohamed Ismail said: "It is not going to impact Singaporean's financial prudence or encourage speculation because they already can't overstretch themselves with the TDSR."

However, there is the possibility of a slight lift in prices if buyers returned in force to the market, Mr Ismail pointed out. "But buyers are already not picking up units now, so if prices increase, they may even be less inclined to buy," he said.

Century 21 chief executive Ku Swee Yong said neighbouring nations like Indonesia are becoming attractive alternative investment destinations. He added that policies should be aligned with the Government's aim of attracting foreigners to set up homes here.

Mr Kwek suggested in February that the Government consider lifting the hefty 15 per cent duty levied on foreigners buying homes after the property market and global economy showed signs of slowing. Prices have since fallen, confirming his concerns, he said yesterday.

However, Mr Kwek noted that the different segments have been affected to varying degrees, so there is no blanket solution.

"I have confidence the Government will take appropriate measures to deal with the challenges that Singapore faces," he said.

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