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Thread: Govt turns up supply tap to cool property fever

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    Default Govt turns up supply tap to cool property fever

    http://www.businesstimes.com.sg/sub/...23940,00.html?

    Published November 7, 2009

    Govt turns up supply tap to cool property fever

    10 new sites signal intent to keep home prices affordable

    By EMILYN YAP


    THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.

    The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.

    'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.

    The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.

    The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.

    The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.

    The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.

    These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.

    MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.

    With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.

    Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.

    Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.

    'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'

    As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.

    MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.

    According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.

    'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.

    Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.

    MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.

    The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.

    'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.

    The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.

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    Quote Originally Posted by mr funny
    http://www.businesstimes.com.sg/sub/...23940,00.html?

    Published November 7, 2009

    Govt turns up supply tap to cool property fever

    10 new sites signal intent to keep home prices affordable

    By EMILYN YAP


    THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.

    The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.

    'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.

    The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.

    The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.

    The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.

    The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.

    These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.

    MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.

    With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.

    Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.

    Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.

    'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'

    As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.

    MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.

    According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.

    'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.

    Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.

    MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.

    The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.

    'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.

    The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.

    Gov has given assurance to buyer that the supply is still plenty. Therefore people is less worry now, as price will not become unaffordable like HK.
    Sigh...now preparing to exercise holding power liao...

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    Where's the prime land sites for sale...

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    What prime land sites for sale? Those are reserved for good prices (if there is any - not much less really) since they don't have to be concerned about prices at the high end anyway. They are probably waiting to sell at $2k psf.

    Quote Originally Posted by kane
    Where's the prime land sites for sale...

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    Quote Originally Posted by teddybear
    What prime land sites for sale? Those are reserved for good prices (if there is any - not much less really) since they don't have to be concerned about prices at the high end anyway. They are probably waiting to sell at $2k psf.
    LOCATION is key in property investment, especially in land scarce Singapore! I think should go for those development where there are a lot of potential foreign interest, especially Indonesian's interests(they can afford a higher budget) as most Singaporean's budget is limited! It would seem that many weathier Singaporeans are going for landed properties rather than more luxurious condos in Singapore. Agreeable?

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    But if want to go for properties of much interest to foreigners, how to buy landed? Landed properties can't resell to the foreigners lei.

    Quote Originally Posted by moneyspinner
    LOCATION is key in property investment, especially in land scarce Singapore! I think should go for those development where there are a lot of potential foreign interest, especially Indonesian's interests(they can afford a higher budget) as most Singaporean's budget is limited! It would seem that many weathier Singaporeans are going for landed properties rather than more luxurious condos in Singapore. Agreeable?

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    Quote Originally Posted by teddybear
    But if want to go for properties of much interest to foreigners, how to buy landed? Landed properties can't resell to the foreigners lei.
    Aiyah, you have misunderstood me. What I meant is should buy prime condo development which has a lot of foreign interest especially those from Indonesia. Alternatively, you can also buy prime landed properties if you want to sell to weathy Singaporeans!

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    oh i see. sorry.

    Quote Originally Posted by moneyspinner
    Aiyah, you have misunderstood me. What I meant is should buy prime condo development which has a lot of foreign interest especially those from Indonesia. Alternatively, you can also buy prime landed properties if you want to sell to weathy Singaporeans!

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    the list doesn't look like it's within the shopping area for indo.

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    Quote Originally Posted by kane
    the list doesn't look like it's within the shopping area for indo.
    Precisely. This list is meant to placate the Singaporean masses who are complaining about escalating property prices. My feel is mass condos may have very limited upside because the demand is mainly from budget limited Singaporeans/Chinese PRs and supply can be increased anytime by MBT whereas prime condo and especially, landed properties are limited in supply! Prime condo, however, may have unlimited demand because foreigners can also purchase them but not prime landed unless special approval is obtained.

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    Quote Originally Posted by kane
    Where's the prime land sites for sale...
    Erm, that is why it is called prime. Very little left.

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    Quote Originally Posted by moneyspinner
    Prime condo, however, may have unlimited demand because foreigners can also purchase them but not prime landed unless special approval is obtained.
    Masses = < 1.5m
    1.5m< Prime Condo < 5m
    Landed > 5m

    I wouldn't say prime condo has unlimited demand but it has limited supply. Prices will be somewhat elastic depending on demand. Landed has limited supply but its demand is also limited.

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    Quote Originally Posted by echotrain
    Erm, that is why it is called prime. Very little left.
    they can always relocate HCJC, NJC, Mt E hospital, Gleneagles Hosp...TTS etc etc ..

    move them all to suburbs ..and sell those prime land ..

    since everyone says they are prime ..

    then again ..now they are prime becos of hospital and school ...

    so why dont build more schools and hospitals in suburbs ?
    then the whole island will; be PRIME island

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    Quote Originally Posted by andy
    Masses = < 1.5m
    1.5m< Prime Condo < 5m
    Landed > 5m

    I wouldn't say prime condo has unlimited demand but it has limited supply. Prices will be somewhat elastic depending on demand. Landed has limited supply but its demand is also limited.

    hhhmmm

    i sold my PH in dist 5 ...at 1.65 mio .. sold its Prime ?

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    Quote Originally Posted by proud owner
    hhhmmm

    i sold my PH in dist 5 ...at 1.65 mio .. sold its Prime ?
    Let's assume 1000sqft for 1.5m lah....

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    Quote Originally Posted by proud owner
    they can always relocate HCJC, NJC, Mt E hospital, Gleneagles Hosp...TTS etc etc ..

    move them all to suburbs ..and sell those prime land ..

    since everyone says they are prime ..

    then again ..now they are prime becos of hospital and school ...

    so why dont build more schools and hospitals in suburbs ?
    then the whole island will; be PRIME island
    I second that. Do you know how big Raffles Girls school is? Bigger than Ardmore!

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    Quote Originally Posted by andy
    I second that. Do you know how big Raffles Girls school is? Bigger than Ardmore!
    ya ..breeding a bunch of girls whos ECA is shopping

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    If they do that, including all the mega shopping malls and shopping belts (e.g. shift Orchard Road to Yishun), then the vacanted prime land become OCR, while the newly relocated place become prime! Can't have everywhere also prime right?
    But such things definitely can't happen right (Fat hope! )

    Quote Originally Posted by proud owner
    they can always relocate HCJC, NJC, Mt E hospital, Gleneagles Hosp...TTS etc etc ..

    move them all to suburbs ..and sell those prime land ..

    since everyone says they are prime ..

    then again ..now they are prime becos of hospital and school ...

    so why dont build more schools and hospitals in suburbs ?
    then the whole island will; be PRIME island

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    Quote Originally Posted by teddybear
    If they do that, including all the mega shopping malls and shopping belts (e.g. shift Orchard Road to Yishun), then the vacanted prime land become OCR, while the newly relocated place become prime! Can't have everywhere also prime right?
    its already happening ..

    if outskirt can sell 900-1200 psf arent they prime alerady ?

    near MRT =1000 psf
    near mall = 1000 psf

    meanwhile construction hasnt moved higher than dec 2006 when Indo banned sale of sand to spore .. in fact it has eased ..

    so wheres the logic ?

    making everywhere PRIME ..they they have reasons to move all the hosipitals and school to outskirts..

    once thats done..then they create something new in the lots vacated by the hosp and schs ..and make Orchard more prime than the primes in outskirt ..so that eventually orchard will be PRIMEST ..

    at the end of the day .. the WINNER IS ...... GOVT

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    OK lah, got it. Regarding of what, Primest cost $ > 3x to 5x of less prime $.

    Quote Originally Posted by proud owner
    its already happening ..

    if outskirt can sell 900-1200 psf arent they prime alerady ?

    near MRT =1000 psf
    near mall = 1000 psf

    meanwhile construction hasnt moved higher than dec 2006 when Indo banned sale of sand to spore .. in fact it has eased ..

    so wheres the logic ?

    making everywhere PRIME ..they they have reasons to move all the hosipitals and school to outskirts..

    once thats done..then they create something new in the lots vacated by the hosp and schs ..and make Orchard more prime than the primes in outskirt ..so that eventually orchard will be PRIMEST ..

    at the end of the day .. the WINNER IS ...... GOVT

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    Quote Originally Posted by andy
    Landed has limited supply but its demand is also limited.
    Landed's demand was artificially suppressed by the "no-foreigner buyer" government policy, in order to keep them affordable for Singaporeans.

    However, what they did not foresee was ...

    The Business Times

    Jun 17, 2009

    Jet Li buys $20m Binjai Rise bungalow



    ACTION star Jet Li seems to be sinking deeper roots in Singapore. He and his wife, Nina, bought a good class bungalow (GCB) on Binjai Rise for $19.8 million last month. The price works out to $871 per square foot based on the freehold land area of 22,723 square feet.
    Mr Li is understood to have become a Singapore citizen.
    The Straits Times
    Sep 26, 2007
    Boutique developer buys Sentosa Cove site for $79m

    A YOUNG entrepreneur who became a full-time polo player after selling his Silicon Valley dot.com firm has emerged as a successful property developer here.
    Indian-born Satinder Garcha, 36, signalled his growing status in the industry yesterday when his company paid $78.68 million for a 200m-long landed plot in Sentosa Cove.
    Mr Garcha, who is of Indian descent, has become a Singapore citizen.
    The Sunday Times
    Mar 18, 2007
    From bottle-cap maker to Singapore's youngest billionaire

    Today, China-born Zhong Shen Jian, 48, is chairman of property group Yanlord Land and is worth $2.7 billion

    AN UNFAMILIAR name popped up when Forbes magazine published its annual global billionaires list last week: Mr Zhong Sheng Jian.

    It is a name virtually nobody knows, yet he is Singapore's fourth richest man and number 583 in the world rankings.

    What is publicly known about him is this: He is the China-born chairman of Yanlord Land, a property group that was listed on the stock exchange here in June, catapulting him into the billion-dollar club.

    The media-shy tycoon granted The Sunday Times an interview at his expansive bungalow in Binjai Park.

    In a dining room overlooking his sprawling garden, Mr Zhong said he owes his fortune to the kinds of things most people take for granted, like paper, bottle caps and kitchen sinks.

    He arrived in Singapore as a casual visitor 20 years ago, with no intention of staying.

    'I was on my way to Hong Kong from Australia when I dropped by Singapore to visit a client,' he said in Mandarin.

    'Immediately I knew this was where I wanted to stay. Originally I was planning to emigrate to Australia, but I changed my mind on the spot.'
    Two decades later he is, at 48, a Singapore citizen and the island's youngest billionaire, with a net worth of US$1.7 billion (S$2.7 billion).
    The Business Times

    Oct 29, 2009

    At 74 Lowland Road, which is next to a temple, the three-storey semi-detached house with six bedrooms was sold for $1.72 million or $636 psf of land area. The buyer is understood to be a former Chinese national who is now a Singapore citizen.

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