Senior
yup, that's very true as well. HNW also love to use financing to get a higher return. Even though they can pay up an investment property in cash if they want to, why would they want to do that when they can get a better return by financing and investing the cash elsewhere.
Originally Posted by focus
Newbie
Aiya, one or 2 or a dozen forumers bullish .... so what. It won't impact the market since i don't believe majority buyers/sellers visit this site before transactions.
F01 N54 Sheer Driving Pleasure
A bullish news, with or without highlighting, is a bullish news - not a neutral news. The same for "bearish" news.
To me, a neutral news (I stated it as kapo news before) is one that is not related to market or even property at all. For example, pandas, shopping malls, cars, etc..
Anyway, none of these news can affect the market.
It's a fact that I post alot, alot, alot of "bullish" news and it's a fact that I sometime post "bearish" and "neutral" news too.
I have never say that I am an expert nor asked anyone to follow me. I always maintain that I could be wrong. Did you not remember that when I say I am going to buy, I did mentioned that I could be wrong and walking into big trouble?
Did I say "when I buy 2 Aussie houses, I am right but when you buy, you are wrong"?
It seems to me that you think being a hypocrite and making personal attacks are right but posting news and highlighting are wrong. If that is your stand, I have nothing else to say and will remain silent over your postings.
I am different from you. I have no respect for hypocrite who claimed properties are not for buying/selling and yet he/she buy/sell properties. You mean one's stand can change just to suit one's self interest?
Junior
there are a lot of bullish news because the world has just stepped back from the abyss. But it is a liquidity driven rally, which may not be sustainable. Liquidity will have to be withdrawn eventually, otherwise there will be hyper inflation. It is a question whether the market can sustain itself once the liquidity is withdrawn. I say no because we know that the pre-2007 boom was driven by the US housing bubble. but that bubble has popped, so where will the catalyst for the next decade come from? it can not come from a housing bubble in the US again, because the subprime-driven demand for housing has turned out to be a mirage and the fuel for that bubble - subprime mortgage-has vanished.
while I am not the smartest guy on earth, but I say that chance of high growth in the next 10 years is quite low, and average growth in the next decade is going to be hovering around 0% to 2% per year. unless we have a lot of chinese immigrants, which many singaporeans don't welcome, we will not go back to the go go era that distinguished the last 10 years.
Newbie
I think the posts are great!
F01 N54 Sheer Driving Pleasure
Singapore’s rich bullish about property investments
High net worth investors here plan to increase their exposure: survey
Uma Shankari
The Business Times
Friday, 4 December 2009
The study, by Barclays Wealth and the Economist Intelligence Unit, found that 53% of high net worth investors in Singapore expect an increase in the value of their property investments over the next 2 years. This is slightly more than the 49% of respondents who hold the same view globally.
After bottoming in Q2 2009, private home prices in Singapore rose 15.8% quarter on quarter in Q3. Analysts expect property prices to stay firm for the year ahead, and are especially upbeat about the high-end segment.
Wealthy investors here are also planning to allocate a larger proportion of their investment portfolios to property in future. Real estate investment among wealthy individuals in Singapore is set to rise to 28% of the average portfolio over the next two years from 25% now, according to the report. That excludes properties used as a principal residence.
Some 125 high net worth investors were surveyed in Singapore. They were part of the more than 2,000 high net worth individuals – with investable assets ranging from £500,000 (S$1.1 million) to more than £30 million – who were surveyed globally in August and September this year.
The survey showed that the high level of confidence in the potential of real estate was global, with investors in 9 of the 10 markets covered – including the US, UK and Hong Kong – planning to increase their property allocation over the next two years.
‘High net worth investors are picking up on signs of a gradual economic recovery, yet continue to remain cautious of potential dangers, after many have fallen precipitously from earlier heights,’ said Didier von Daeniken, chief executive of Barclays Wealth for Asia-Pacific.
Property has always an asset of choice for Asian and Singaporean investors; and with the current recovery, interest in real estate will pick up, bankers said.
‘Property is an important asset class for Asian high net worth investors,’ said Olivier Denis, head of OCBC Private Bank. ‘The interest in the Singapore property market has always been strong and investors are constantly scanning the market for opportunity. Moving forward, we expect the interest to stay positive provided that the overall economic climate remains stable.’
Investors are once again eyeing property as prices in many markets have fallen from earlier highs, the survey found. Barclays Wealth’s survey showed that 75% of high net worth investors in Singapore continue to see opportunities in the property sector.
Transactions of high-end homes – generally thought to be the domain of wealthy investors – started to pick up in Q3. The number of units transacted at more than $2,000 psf during the quarter is just below the number of units seen in Q1 2007 prior to the last run-up in the high-end market, noted DBS Group Research analyst Adrian Chua.
And even as the overall property market cooled in October, the high-end segment held up. Some 285 homes with a median price of more than $1,500 psf were sold in October 2009, compared with 115 in September.
‘The high-end investors are coming back but it is not the same volumes of transactions we have seen in the past (during the last boom),’ said Knight Frank chairman Tan Tiong Cheng.
He pointed out that the profile of investors buying high-end apartments in Singapore has changed. The previous boom was driven by financial sector employees flush with cash. This time around, interest is coming mostly from traditional investors who are sinking their funds into real estate as they consider those assets to be safe, Mr Tan said.
The survey also showed that more than half of Singaporean investors – 54% – feel that tight credit conditions are preventing them from capitalising on opportunities. They also expect home prices to climb once credit starts to flow freely through the global economy.
But bankers cautioned against overexposure to property. ‘While it can be tempting to seek refuge in property as a safe haven, investors must be careful to avoid overexposure to an asset class that has traditionally proven to be susceptible to economic cycles,’ said Barclays’ Mr von Daeniken.
Manpreet Gill, Barclays Wealth’s strategist for Asia, called for diversification and said that Singaporean investors’ propensity to invest outside the country is positive as it reduces risk. In the survey, the investors identified the US, India, the UK and China as attractive foreign markets.
Mr Gill also added that wealthy investors here can look at real estate investment trusts (Reits) as alternatives to brick and mortar investments.
F01 N54 Sheer Driving Pleasure
Wealthy investors are hot on property
Barclays Wealth's latest report on high-net-worth individuals shows that wealthy investors are planning to increase property investments.
Lara Wozniak
FinanceAsia
Hong Kong
Thursday, 3 December 2009
Wealthy investors are once again eyeing property markets, according to the latest report by Barclays Wealth and the Economist Intelligence Unit (EIU) titled Prospects for Property: On Solid Foundations?
More than 2,000 global high-net-worth individuals with investable assets ranging from £500,000 (US$826,000) to £30 million were surveyed. The results showed that wealthy investors in 9 out of 10 markets plan to cautiously increase their allocation to real estate during the next two years, by 1% to 4% points, with almost half (49%) expecting to see an increase in the value of their property portfolios within this timeframe.
64% of Hong Kong respondents currently have 5% to 30% of their investment portfolios allocated to property, while 17% have 35% to 50% in property. The latter is expected to rise to 21% during the next 2 years.
"The current environment offers considerable promise to investors and this is reflected in the guarded optimism among high-net-worth investors," said Joanna Chu, managing director and head of North Asia at Barclays Wealth. "As investors add to their property portfolios, they should be highly selectivelywith their choice of property investments. Managing risk will continue to be important. Investors will be wise to maintain a diversified property portfolio and consider options in overseas markets, property funds and even commercial property."
Of all the high-net-worth investors polled, perhaps reflecting the relatively small size of their domestic markets, Hong Kong and Singapore respondents have the most international outlook. Hong Kong investors already have 47% of their most significant property investments committed overseas while Singapore investors have 40% invested overseas. All other investors polled continue to have the majority of their significant property investments within their respective domestic markets.
With property prices in some major developed countries showing signs of stabilising, Hong Kong investors anticipate the US property market to offer the most attractive returns during the next two years (17%), followed by the UK (14%) and China (13%). Other markets cited by Hong Kong investors include Taiwan, Macau, and Canada.
The rationale for property investments is not always rational
According to the report, 35% of global respondents plan to increase their allocations to property over the next two years, 48% will maintain their current investments and 17% will decrease their allocation. The reason most widely cited by high-net-worth investors for the increase in allocation is that property offers better long-term prospects than other asset classes. Similarly, investors across all markets feel that the potential for income through rental is the most attractive factor in having property investments, with 52% of Hong Kong investors holding this view about residential property and 30% about commercial property. Surprisingly, investing in property for capital gains does not seem to be a high priority
Interestingly, close to half (46%) of Hong Kong investors do not believe that real estate investments are likely to outperform equities in the next 10 years and 45% do not think that real estate is less risky than equities. This suggests continuing uncertainty about the trajectory of financial assets and a desire for portfolio diversification, especially after the turmoil of the financial crisis.
The survey and interviews with high-level property experts reveal that while it is tempting to regard property as a straightforward investment as it may not have the financial complexity of derivatives or some hedge funds, it is by no means simple. Emotional attachment can get in the way of sound decision making, particularly with residential property. Some industry experts point out that wealthy investors can often have property portfolios with an unhealthy concentration in one or two prestige properties, which account for a large proportion of their wealth.
"For many, investing in property is much more than a pure financial decision, particularly with residential property," said Chua. "Often, the emotional relationship with a property impacts the way investors deal with the property. When you are investing with financial goals in mind, you must take an objective view."
Of the various property categories, residential property is the most popular and familiar to investors. Commercial property plays an important role with wealthier investors, particularly those possessing investable assets of over £30 million. Seventy percent of wealthy investors in this band have some exposure to direct commercial property investments.
The growth of indirect property investments such as property funds or real estate investment trusts (Reits) allow investors to achieve diversification across multiple types of property and locations with smaller investments and to gain access to the expertise of specialist managers. Surprisingly, the survey found that the wealthiest respondents, who in theory are most able to make direct investments in commercial property, are also the most likely to invest indirectly. Close to 45% of respondents with investable assets in excess of £30 million hold indirect investments, while 26% of respondents with £500,000 to £1 million invest indirectly.
"The survey found that Hong Kong high-net-worth investors are looking for income rather than capital appreciation," said Manpreet Gill, Asia strategist at Barclays Wealth. "This is interesting as it is somewhat different from what property investors elsewhere are looking for from their investments. But it is consistent with the fact that liquidity remains flush in Hong Kong, while interest rates remain low, making property attractive even if only from a simple yield perspective. This is likely to continue as long as rates remain low."
Gill added: "The survey reveals that, much like investors outside of the region, Asian investors are holding a much higher proportion of their wealth in property than we would normally recommend. However, the fact that Hong Kong investors have a greater propensity to invest outside Hong Kong is a positive development because diversifying that risk is very important and helps avoid excessively concentrating risk in one asset class and region together. These findings are also consistent with our view that while we would expect Hong Kong real estate in general to provide reasonable positive returns over a long period of time, evidence suggests that real estate as an asset class tends to provide lower rates of return over a long period of time as compared to an asset class like equities."
Senior
i totally agree with you. it won't impact the market at all. i am directing it at reporter simply because he said his news is neutral but the colourful bold highlights suggest otherwise. I prefer Mr. Funny's neutral news. More pleasing for the eye, just a personal preference. It has nothing to do with one's stand of being bullish or bearish.
Junior
I don't think Reporter is bullish at all.
In fact, he has done something that should never have been done. He sold a property without immediately buying another one.
It was not until early November that he bought his replacement property in district 9, if I remember correctly.
In the few months between, he was holding on to toilet paper money ...
Fiat Money -Toilet Paper Money
The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse.
Properties should never be sold unless repossessed by the govt or enblocked.
F01 N54 Sheer Driving Pleasure
Is Vicky Zhao pregnant?
Diva
Friday, 4 December 2009
Vicki 赵薇
Is Chinese actress Vicki Zhao pregnant and in Singapore to hide from paparazzi?
According to HK publication "Next Magazine", the star was expecting a child with property tycoon Huang Youlong and planning to give birth in Singapore.
Singapore's Lianhe Wanbao said she was seen at a cinema in the country last week, watching her own movie Mulan.
Some months ago, there were rumors that Vicky, 33, secretly registered her marriage with Chinese businessman boyfriend Huang YouLong in Singapore.
The latest issue of Hong Kong, "Next Weekly" report speculates that Vicky came to Singapore after pregnancy to register her marriage in August.
Now Vicky could be at least 5 months pregnant, as her body looks swollen even when she is in loose-fitting clothes, Lianhe Zaobao reported.
The Chinese morning daily also said that early as 19th last month, Vicky flew to Shanghai to promote her new film "Mulan" wearing a loose skirt, the next day in Guangzhou she wore a black skirt with a belt, which revealed a slight bulge in the stomach. But after that she began to take leave, and was absent from all promotional activities.
The same source also suggests that because of pregnancy and Vicky has put on more than 10 pounds (5 kg), and she was also often spotted covering her belly protectively.
Her manager declined to confirm or deny a Next Magazine report that the star was expecting a child.
"Vicki Zhao has kept her work and private life very separate," said her manager in an SMS to Apple Daily. "She has not responded and will not respond to the media, does not talk about things outside of her work and ignores rumours that distort the facts."
Newbie
Aiyo... Reporter just augmenting Mr funny in his news reports. Reporter is very prompt. His news reproduction is posted the minute it is published in other media. Mr Funny takes a long time and sometimes it is old news leh....
I think Reporter doing a great job and I really applaud his enthusiam. So what if it is bolded or commented....
At the end of the day we are not 5 year olds and I assume all formers here analyse what they read in this forum. Whether you agree or disagree with what is posted/reported is really up to you. Pls check the Internet for other sources......
Comon, do you think what is printed in ST and BT are unbiased?
Newbie
Is Vicky Zhao pregnant?
Diva
Friday, 4 December 2009
Vicki 赵薇
Is Chinese actress Vicki Zhao pregnant and in Singapore to hide from paparazzi?
According to HK publication "Next Magazine", the star was expecting a child with property tycoon Huang Youlong and planning to give birth in Singapore.
Singapore's Lianhe Wanbao said she was seen at a cinema in the country last week, watching her own movie Mulan.
Some months ago, there were rumors that Vicky, 33, secretly registered her marriage with Chinese businessman boyfriend Huang YouLong in Singapore.
The latest issue of Hong Kong, "Next Weekly" report speculates that Vicky came to Singapore after pregnancy to register her marriage in August.
Now Vicky could be at least 5 months pregnant, as her body looks swollen even when she is in loose-fitting clothes, Lianhe Zaobao reported.
The Chinese morning daily also said that early as 19th last month, Vicky flew to Shanghai to promote her new film "Mulan" wearing a loose skirt, the next day in Guangzhou she wore a black skirt with a belt, which revealed a slight bulge in the stomach. But after that she began to take leave, and was absent from all promotional activities.
The same source also suggests that because of pregnancy and Vicky has put on more than 10 pounds (5 kg), and she was also often spotted covering her belly protectively.
Her manager declined to confirm or deny a Next Magazine report that the star was expecting a child.
"Vicki Zhao has kept her work and private life very separate," said her manager in an SMS to Apple Daily. "She has not responded and will not respond to the media, does not talk about things outside of her work and ignores rumours that distort the facts."
Irrelevant post.This is a forum about ppty.
Junior
No, it is very relevant. to understand why, just take a stroll down orchard road. How many people that you chance upon speak english? very few? How many speak mandarin? many.
The real estate boom in singapore is mostly driven by the influx of immigrants from China. the more of them come, the higher the property values are going to be. They come with deep pockets.
Global recession is coming....
The issue here is that HP65 is very confident that property market will crash and keep saying that anybody who ask others to buy now is trying to 'con' them (as though he is god and all others with contradictory opinions are definitely wrong & digging their own grave). Since he is so confident, why not sell now and buy back later? The fact that he didn't means he is not as confident as what he tried to 'sell' to others about property market sure crash.
On the other hand, the 3 billionaires cannot buy and sell all because of 2 reasons:
1) they understand that they are not god and hence they won't move 100% in & out and be always right all the time (Warren Buffet actually did that when he was younger and poorer but not now because of reason (2). He also did that with some of the cyclical stocks he invested).
2) With their amount of money, if they try to move 100% in & out, the stock and property prices will move faster before they can even move in or move out. So they don't gain from such big movements (as compared to smaller sum of money).
As >99.999% of people in Singapore don't belong to that 3 billionaires category, so the best way to make big profits is to move in & out.
Junior
I can only say.. You are not right or wrong because everyone agrees/disagrees with you. You will only know whether your investment thesis is right or wrong only when you exit your investment.
F01 N54 Sheer Driving Pleasure
Private home prices may hit new high in 2010
Ng Baoying
Channel NewsAsia
Friday, 4 December 2009, 2123 hrs
Private home prices here are expected to hit a new high in 2010 and perhaps rise even further after that, should the economy continue to grow.
But analysts said on Friday that sales volumes in 2010 are likely to fall back to sub-10,000 levels seen in previous years.
Observers are projecting that 15,000 to 16,000 units will be sold in the primary market in 2009 – the highest on record.
The launch of a mass market project in Jurong West – Caspian – broke the dam for new home sales in Singapore earlier in 2009.
Some 10 months later, home sales during the economic downturn are projected to exceed even July 2007's record of 14,811 homes. Data already shows that about 13,905 units have been sold from January to September this year.
Analysts said this performance is driven by pent-up demand, and is unlikely to be repeated in the years ahead.
Donald Han, managing director, Cushman & Wakefield, said: "This has been a spectacular year by virtue of pent-up demand. The second and third quarter probably produced about 60 to 70% of total demand for 2009.
"In the third quarter alone, we sold something like 5,700 new home units. We sold more in the third quarter than in 2008. That kind of demand is not sustainable.
"The fact is that the government put on the brakes by discontinuing the interest absorption scheme. Also, they are making promises to ensure enough supply in the marketplace by introducing more government land sales programmes in 2010."
Mr Han said sales are likely to average around 800 new homes a month, or some 9,000 to 10,000 units for the whole of 2010. However, some analysts said prices will not be falling in tandem with lower sales.
That is because the strong economy and fundamentals of the country will support prices, and may even drive them higher.
Nicholas Mak, real estate lecturer, Ngee Ann Polytechnic, said: "Going forward, average home prices still have some way to grow. They could still expand conservatively at about 10%, while in some segments they could go as high as 20%."
Units in the mid- to high-end segments will see prices rise higher than those in the mass market.
Analysts said this is mainly because prices in the mass market, which accounts for about 45% of all private homes sold to date, started heading upwards earlier, and are close to their peak.
But they are not ruling out factors that could temper price growth such as government measures to cool the market, should speculation get out of hand.
F01 N54 Sheer Driving Pleasure
U.S. November jobless rate falls to 10%, a lower 11,000 job cuts
Christopher S. Rugaber
Associated Press
Wahington, D.C., U.S.
Friday, 4 December 2009, 9.31 am U.S. EST
In this Dec. 1, 2009 photo, job seekers wait in line to speak to potential employers at a job fair in Philadelphia. The unemployment rate fell to 10% in November as employers cut the smallest number of jobs since the recession began. - Photo: Matt Rourke, AP
The unemployment rate unexpectedly fell to 10% in November as employers cut the smallest number of jobs since the recession began. The better-than-expected job figures are a rare note of encouraging news for the labor market.
Still, the respite may be temporary. Many economists expect the unemployment rate to climb into next year as the economy struggles to generate enough jobs for the 15.4 million people out of work.
The economy shed 11,000 jobs last month, an improvement from October's revised total of 111,000, the Labor Department said Friday. That's much better than the 130,000 Wall Street economists expected.
The unemployment rate fell to 10% from 10.2% in October, where economists expected it to remain.
If part-time workers who want full time jobs and laid off workers who have given up looking for work are included, the so-called underemployment rate also fell, to 17.2% from 17.5% in October.
There was other positive news in the report. The average work week rose to 33.2 hours, from a record low of 33 hours. Economists expect employers will increase hours for their current workers before hiring new ones. And 159,000 fewer jobs were lost in September and October than first reported.
"Strong, strong, strong," said Carl Riccadonna, senior U.S. economist at Deutsche Bank. "We've still got a long way to go, but the good news in this report provides important positive momentum."
The increase in hours worked also means employees are earning more income, Riccadonna said, which could help boost consumer spending and enable Americans to pay down more debt.
Average weekly earnings jumped $4.08 to $622.17, the report said.
Temporary help services added 52,000 jobs, the fourth straight increase. That's also positive news, as companies are likely to hire temporary workers before adding permanent ones. Total employment usually starts to increase between three and six months after temporary employment, Riccadonna said.
The economy has now lost jobs for 23 straight months, but the small decline in November indicates the nation could begin generating jobs soon. Many economists think it will happen in the first quarter of next year.
Still, economists say job creation will remain too weak in coming months to absorb both the unemployed and discouraged workers who have stopped looking but will eventually return.
The services sector gained 58,000 jobs last month, while manufacturing and construction shed 69,000 positions. Education and health services added 40,000 jobs, and government employment rose 7,000.
The unemployment rate fell because the number of jobless Americans dropped by 325,000 to 15.4 million. The jobless rate is calculated from a survey of households, while the number of jobs lost or gain is calculated from a separate survey of business and government establishments. The two surveys can sometimes vary.
The rate also dropped because fewer people are looking for work. The size of the labor force, which includes the employed and those actively searching for jobs, fell by nearly 100,000, the third straight decline. That indicates more of the unemployed are giving up on looking for work.
The participation rate, or the percentage of the population employed or looking for work, fell to 65%, the lowest since the recession began. Once laid-off people stop hunting for jobs, they are no longer counted in the unemployment rate.
Even as layoffs are easing, the slow pace of hiring is causing headaches for political leaders. The employment report comes a day after President Barack Obama hosted a "jobs summit" at the White House, where he told economists, business executives and union leaders that he is "open to every demonstrably good idea" to create jobs.
Democrats in Congress, meanwhile, are considering legislation that would extend jobless benefits for those who have run out and help the unemployed pay for health care coverage. Those measures could cost up to $100 billion.
Jobs remain scarce even as the economy is growing slowly. The nation's dross domestic grew at a 2.8% pace in the July-September quarter after shrinking for a record four straight quarters. Economists expect it is growing at a similar pace in the current quarter.
Still, that may not be enough to generate large numbers of jobs. Federal Reserve Chairman Ben Bernanke warned on Thursday that "unemployment could remain high for some time even if, as we anticipate, moderate economic growth continues."
Junior
But if you believe in my religion "Propertism", then you will always be right, because you will never need to exit your investment (or let future generations do the exiting, but that's not your problem anymore).
In "Propertism", we believe that property prices will always go up in the long term, because cash always devalues in the long term.
Like I have illustrated before, what do you think Shakespeare's descendants would be worth today if he had (a) bought some small plots of land around Buckingham Palace; versus (b) kept his money in cash.
Any price corrections in properties are just short term fluctuations, and prices will eventually go up. Hence, properties should only be bought. Not sold.
Some people try to time the market, but I feel that is a waste of time and energy.
If we look back in time to 1979 when that Margate Road bungalow was sold for only $195,000, or 1964 when that Jalan Mastuli terrace for $24,500, so what if the price was 10% higher or lower? Isn't it quite irrelevant?
Junior
Even for 99LH property?
Anyway, I believed in your religion "Propertism" .
Junior
Yes. Even for 99LH property, PROVIDED IT IS SITTING ON STATE LAND and not developer's land.
If it is on state land, there will always be chance of an en bloc in future when the building becomes run-down. The government needs to get their share of the bounty of course, through the development charge and differential premium. However, these are usually quite reasonable because the government has an interest to encourage urban renewal, and does not want your old shabby building to spoil the city landscape.
However, if the land belongs to the developer (as discussed in one of the other threads), then it's a totally differnt story.
In that case, it's the developer's descendants who will eventually inherit the land, not yours.
You are nothing more than a tenant, except instead of a 2-year lease, it's a 99-year lease where the entire rental is paid upfront.
That's not buying a property, that's leasing a property. You are just a tenant, albeit a longer-termed one.
I'm most happy to go around converting more and more people to my religion "Propertism".
Actually, anyone who reads the arguments put forth in support of "Propertism" cannot but agree with it, especially in view of the recent decision by Dear Leader to shave two zeros off their currency.
History repeats itself.
1923
Weimar Germany
German Woman Burning the Mark as Fuel
However, those North Koreans who have internet and visited this forum seeing me preach "Propertism" would be saved because then they would have bought one of these "luxury apartments".2009
NKoreans burn bills in anger over currency reform
By KWANG-TAE KIM (AP)
SEOUL, South Korea — North Koreans set piles of old bills alight in anger over their government's surprise move to redenominate the national currency, a report said, a sign of growing frustration among citizens left with hoards of worthless bills.
Read this
But this report was in Nov 2009.12 Nov 2009
"Until last year, the price of 20- and 21-dongs apartment complexes (a top luxury apartment located in Hyesan-dong, Hyesan) cost approximately 20 million won, but this year, it is 40 million won. It is soon expected to climb to 50 million won."
Now the same luxury apartment will cost 5,000 million won !!!
I am thinking of setting up a mission in North Korea to preach my religion "Propertism" by creating a website CONDOnorthkorea.com to post my thoughts over there.
Newbie
rental market situation for prime properties is still unchanged (weak). What recovery?
Newbie
Yes, even for 99LH in a good location, eg farrer court, how much the owners brought back than, and how much they got from the enbloc.
Senior
rental will continue to weaken in my opinion ...esp come 2010-2012 alot alot of launches wil TOP ...
i just woinder how many buyers along newton circle/ novena area ..to king albert park ... ( i lost count how many condos, new and old) will be able to rent out their unit at a reasonable price ...enough to cover mortgage, maintenance, tax etc ..
if Hillcrest Villa(near NJC) ..sold between 2.5-3.0 mio .. only managed to rent out at 7k ... does it cover cost? or any profit at all ?
even if it just covers cost .. the opportunity loss, in putting money in that project, tying up cash, CPF, etc ..just not worth it ...
i cannot imagine those who paid more than 3mio(like Duchess residences, near HJC) ... they will be asking for 12-15k rent .. and who is going to pay that amt ?? if they can get 7-8k across the road at Hillcrest ?
just a thought thats boggling my mind
Newbie
I agree with andy, Reporter is doing a great job, it takes time and effort. So what if it is bolded or commented, you decide for yourself, and don't blame others if your investment turns sour.
Newbie
That is called leverage
yup, that's very true as well. HNW also love to use financing to get a higher return. Even though they can pay up an investment property in cash if they want to, why would they want to do that when they can get a better return by financing and investing the cash elsewhere.
Senior
i have nothing against Reporter ... i agree it takes alot of time .. to monitor all the news ..and he post them so quick..its fresh from the oven .. not forgetting he has to enlarge and color the key words ..
good job ..
but for people who are trained to 'speed read' ... they go straight to the colored and enlarged words .. and pick up only certain points ...
take this example :
Private home prices here are expected to hit a new high in 2010 and perhaps rise even further after that, should the economy continue to grow.
many idiot readers ( i believe exists in this forum) will immediately focus on
hit a new high in 2010 and rise even further
what if now we change the high light in the same sentence :
Private home prices here are expected to hit a new high in 2010 and perhaps rise even further after that, should the economy continue to grow.
it does change the emphasis a little ..to one of ' ONLY IF ECONOMY continues to grow .."
then the 'speed reader' will see it as an uncertainty in the economy ...so maybe it will not rise to a new high ...
this i believe is what Bargainhunter was implying .. the high lighting and coloring indeed have an impact on the readers ..
dont get me wrong Reporter ... like i said in the beginning of this post.. i am not complaining .. i praise your efforts...
Newbie
This I agree with you, even from the same report, 2 different people may interpret it differently.
Junior
Had Shakespeare bought a 99-LH condo, his descendants would be worth nothing today.
but your argument is fallacy. you can buy anything today and expect it to be worth more 1000 years down the road. It's called inflation. If you buy oil today at 80 per barrel, you can expect to sell it at 800 per barrel in 10 years. commodities are as a sure bet as properties.
Global recession is coming....
But there is 1 big difference - How to buy physical commodities such as oil and gold and still store in big quantities and safely?
Junior
True. How to store the oil or sugar? Unless you owns an Oil field or Sugar plantation.
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