Senior
so more people has jobs .. property prices will chiong ah ....Originally Posted by Reporter
Unemployment rate shrinks to 2.1% in 4Q
The Edge
Monday, 15 March 2010, 10:20
Singapore’s seasonally-adjusted unemployment rate was 2.1% in the 3 months ended December, down from 3.4% in the previous quarter, according to figures released by the Ministry of Manpower today.
even when they get a job as a chamber maid in IR ..still chiong ahhhh
Junior
That must be based on market research report from INDUSTRIAL MARKET RESEARCH PTE LTD.Just curious.
Of the 3 words - a few, some and many, you used the word many.
How did you know many of these people do not have sufficient cash to serve the next 10%?
It calculated that speculators' rental yield cannot cover instalments and will experience negative cashflow, so it recommended the government to curb the speculators (very kind hearted indeed).
There are many kind hearted people in this world who constantly worry for property buyers.
Senior
Banks are offering SIBOR or SOR. Which is better given the economic situation in the next 2-3years?
Junior
I will go for fixed, then Sibor. SOR last
F01 N54 Sheer Driving Pleasure
Private home sales down 19% on-month to 1,196 units in February
Wong Siew Ying
Channel NewsAsia
Monday, 15 March 2010, 1457 hrs
Home buyers at a showflat
Private home sales kept up their momentum in February, with 1,196 units changing hands.
This is down by some 280 units or 19% from January, where the spike in transaction volumes prompted the government to introduce more anti-speculative measures.
But February's figure is still above market expectations. Analysts had earlier projected sales to range between 800 and 1,000 units.
Analysts said demand for new homes remains strong, despite more government measures to cool the market last month.
Data released by the Urban Redevelopment Authority (URA) showed that new private homes in the city continue to be popular.
The Altez at Tanjong Pagar was a star performer last month, with 150 units sold at a median price of over S$1,800 psf. Another project that did well was Waterscape at Cavenagh Road with 82 units transacted.
All in, new homes in the prime district accounted for 521 units of total sales.
Mass market projects were also popular, with over 560 deals done in February.
"We've seen demand in that area - outside core central (OCR) region - increase on a month-on-month basis of about 31%, so that is quite an unexpected phenomenon. A large part of the demand came from The Estuary and that's about over 300 units sold out of 400 units being launched," said Chua Yang Liang, head of Research (Southeast Asia) at Jones Lang LaSalle.
Market watchers said the buying sentiment remains strong despite the anti-speculative measures introduced by the government recently.
They said that is because home buyers are still confident about the economic prospects of Singapore, job security and the positive spin offs from the new two integrated resorts.
Some analysts said March could see sales volumes above 1,000 units. That could bring first quarter sales to about 4,000 units. This is on the back of brisk take-up for new projects like The Vision at West Coast and upcoming launches at Sentosa Cove.
Higher-value projects could also lift home prices ahead.
Tay Huey Ying, director of Research & Advisory at Colliers International, said "Of late, we have seen how people continue to snap up properties even at record prices.
"I think if this continues to persist, we could potentially be looking at a property bubble forming because home prices appear to be running ahead of economic fundamentals. And I think the government should continue more demand side measures."
These includes fine tuning current measures or introducing a capital gains tax.
Last month, developers placed 1,161 units for sale. And analysts said more could be on the way because of strong demand and to pre-empt more market cooling measures.
Newbie
Does these low-rise condo's villa marina , casafina or other on upper east coast road have any potential for enbloc in 2-4 years ?
I think may be , as earlier en-blocks were at Amber Road and if we move further down the east ..then this looks to be the area for enblocs
F01 N54 Sheer Driving Pleasure
Lehman Brothers files plan to end bankruptcy, create new company
Emily Chasan
Reuters
New York, New York, U.S.
Monday, 15 March 2010, 4.45pm U.S. EDT
Lehman Brothers Holdings Inc on Monday filed its reorganization plan with the U.S. bankruptcy court in Manhattan, proposing a way to end the largest U.S. bankruptcy case in history.
Under the Chapter 11 reorganization plan proposed by the company, Lehman sought authority to create an asset manager business called LAMCO that would specialize in management of Lehman's commercial real estate, mortgages, principal investments, private equity, corporate debt and derivatives assets.
Lehman said LAMCO would provide management services to Lehman, administer its assets and offer long-term employment opportunities for the hundreds of Lehman employees working to liquidate the former investment bank's estate.
The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.
F01 N54 Sheer Driving Pleasure
Tampines site draws 8 bids
Joyce Teo
The Straits Times
Tuesday, 16 March 2010, 5.38 pm
The tender for a 99-year leasehold residential plot at the junction of Tampines 1 and 10 has attracted 8 bids.
Sim Lian Land submitted a top bid of $302 million or $4,530.79 psm ppr.
Other bidders include MCL Land and Allgreen Properties, which put in bids of $278.3 million and $251.8 million respectively.
The second highest bid of $289 million was submitted jointly by Waterfront View and FCC Tampines Court, while the lowest bid of $168 million came from Boon Keng Development.
The plot at the junction of Tampines can yield a maximum gross floor area of 66,655 sqm.
It is next to The Tropica condominium and about 5 to 10 minutes' drive from Tampines Central and Tampines MRT station.
F01 N54 Sheer Driving Pleasure
Why are Sim Lian so aggressive?
$421 psf ppr is no joke for a 99-leasehold land in District 18!
They will need to break even at $700 psf?
So they need to sell from $800 psf and above?
Wow!
Newbie
Almost all new 99LH condo from recent land sale have to sell 800psf nowadays. The popular one will have to sell 1000psf.
F01 N54 Sheer Driving Pleasure
Land prices smash records in Beijing property frenzy
Aileen Wang, Zhou Xin and Simon Rabinovitch
Reuters
Beijing, China
Tuesday, 16 March 2010, 6.45 pm CCT
2 land sales in Beijing have shattered price records and both buyers were state-owned companies, sparking outrage and astonishment at the city's frothy property market.
The soaring land prices came as worries have mounted about a housing bubble in China, though economists said that the latest auction prices reflected peculiarities of the Beijing market and did not necessarily point to nationwide trouble.
China has tweaked taxes and stiffened mortgage rules in recent months to cool housing prices and analysts think it may hold off on further property curbs for a while amid signs that these earlier measures have had some success.
But many in the market think the country's 3rd increase this year of banks' required reserves is imminent to counter broader inflationary pressures.
A plot of residential land in Dongsheng, a 15-minute drive from the center of Beijing, was auctioned for 28,000 yuan (US$4,100) psm, the highest price ever paid in the city -- and just a fraction below the area's average house price.
At a separate auction, a 185,000-sqm block of residential land deep in suburbia in Yizhuang went for 5.25 billion yuan (US$769 million), the most ever paid in a single land transaction in Beijing.
An added wrinkle was that in both cases the buyers were state-owned enterprises (SOEs).
China Ordnance Equipment Group Corporation, a military company, bought the Dongsheng land. CITIC Group, the country's largest financial conglomerate and one which is directly led by the State Council, China's cabinet, bought the Yizhuang plot.
"The SOEs get even wilder. A crazy day for the Beijing land market" screamed the headline of the Chinese-language 21st Century Business Herald.
Private developers have complained that the deck was stacked in favor of state-run firms in Beijing's land auctions because the city required bidders to have registered assets that far outstrip those of some of the biggest listed property companies.
Liu Liyong, a research director at E-House China, a leading real estate service company, said state firms benefit from a close relationship with the government as well as vast capital bases.
"That's why the SOEs can always win the land auctions," Liu said.
Property prices across China rose 10.7 percent in February from a ye
ar earlier, though prices have increased far more steeply in certain segments of the market, such as high-end housing in top cities like Beijing and Shanghai.
Land prices have been even hotter, more than doubling over the past year.
Feng Ke, a finance and property professor at Beijing University, said it was only natural for prices to rocket in the capital.
"Land demand far exceeds supply because of the accelerating progress of urbanization," Feng said.
"Besides, the cost for primary developers in preparing a piece of land, including expenses in relocating residents and land clearance, has also increased in recent years, so it is understandable that land can be sold at such a high price."
But the country's most successful private property developers have been sidelined in the process.
SOHO China, whose avant-garde buildings have made an indelible mark on the center of Beijing, sat out the auctions.
SOHO chairman Pan Shiyi chided Ren Zhiqiang, chairman of Huayuan Property and China's best-paid property tycoon, for his failed bid, saying there was no point in battling against state-backed firms.
"Mr. Ren did not listen to me, and paid hundreds of millions of yuan in deposits to participate in the bidding," Pan wrote on his blog. "It is not spending money for land but for shame."
Ren replied that he would persevere.
"At least, we are still there," he wrote. "Mr. Pan has no guts to even get in. The auction system has killed all of Pan's confidence and courage."
F01 N54 Sheer Driving Pleasure
Oh my god! Is this for real?
The Estuary, in District 27 Yishun, starts with a hďgh of $921 psf!
What was it thinking?
It wants to join the OCR $1,000+ psf Club?
Private Residential Units Sold in the Month of February 2010
Project Name .. Locality . Units Sold To Date . Units Sold In Month . Highest $psf . Median $psf . Lowest $psf
The Estuary ...... OCR ....... 386 ....................... 386 ........................ 921 ............. 757 .............. 633
Junior
$421 psf ppr for Tampines!
These government land bids are even hotter than the 2006/7 en bloc craze!
I think Tampines Court people are going to be cry ...
Tampines Court En Bloc - 28/3/07 $260 psf ppr
And also ...
Newton Court En Bloc (Now Newton Suites) - Newton Road - $438 psf ppr
Times House (Now The Cosmopolitan) - River Valley Road - $376 psf ppr
F01 N54 Sheer Driving Pleasure
Of course cheong lah!
Just look at the number of US$-millionaires we have.
F01 N54 Sheer Driving Pleasure
Singapore likely to hold rate steady
Koh HuiTheng
我报
Wednesday, 17 March 2010
Asian countries may raise interest rates by as much as 1.5% points by the end of the year in a bid to contain inflation, but Singapore is unlikely to follow suit, said an expert at the DBS Bank.
Some governments in Asia seem to be adopting a wait-and- see attitude when it comes to interest rates, DBS' managing director for currency and economic research, Mr David Carbon, said, adding that the Monetary Authority of Singapore (MAS) might delay policy tightening till October rather than, say, next month.
Even then, a 20- to 40-basis- point hike towards the end of the year here is on the cards, compared to a 150-basis-point increase for the rest of the region, he said during a press briefing yesterday. Morgan Stanley's Asean macro-economics team also feels that MAS is likely to maintain its current zero-appreciation stance next month.
Asia's V-shaped economic recovery has seen the gross-domestic-product growth of many economies returning to pre-crisis levels. Consumption is also heading north, with interest rates being low over an extended period. With the return of growth, there are fears of overheating.
To avoid asset bubbles, Malaysia became the second Asian country to raise its benchmark interest rate from a record low to 2.25% this month. Over the last 7 months, it has seen inflation surge by almost 4%, while India registered a 9.1% jump the highest among a group of 10 Asian countries.
Australia also increased borrowing costs for the 4th time on March 2, with the benchmark rate now at 4%.
Citigroup economist Kit Wei Zheng expects India to go for a 50-point rise in the 2nd quarter. Citi economist Jun Trinidad predicts there is a 50% chance the Bank of Thailand may hike rates next month. Similarly, Mr Carbon expects South Korea and Indonesia to raise rates late in the 2nd quarter. He also sees a 10-point swing in India's inflation rate.
"Rate hikes will continue into 2011 and return to normal by the middle of next year," he added. But Singapore, which does not have an interest-rate policy, may tweak its currency stance instead.
The Singapore dollar stands at $1.40 against the greenback and Mr Carbon thinks it could appreciate to $1.37 by the 1st quarter next year.
The Singapore dollar's rise will be nominal as it is tied to the G-3 (the US, Japan and the euro zone), and both the US and Japanese interest rates are going to stay low, he said.
However, Mr Kit said creeping inflation of 2 to 3% this year may force the MAS into a pre-emptive policy tightening, though "the confidence to do so has not yet been well established, given lingering uncertainties in the growth outlook for the 2nd half".
Pressures from higher imported inflation, which is already showing up in petrol and electricity tariffs, a surge in Certificate of Entitlement premiums and wage pressures could exert some impact on rates too.
"Still, the situation remains fluid and highly dependent on data, news flow and action by other regional central banks," he added.
The property market will be the first to feel the impact of sharply higher interest rates, as that implies a heavier debt-servicing burden on mortgages. Consumers are also likely to see their discretionary incomes for purchases being curtailed, Mr Kit said.
F01 N54 Sheer Driving Pleasure
Hong Kong luxury house fetches near-record price
Channel NewsAsia
Hong Kong
Thursday, 18 March 2010, 0122 hrs CCT
Hong Kong luxury house fetches near-record price
A Hong Kong listed company said Wednesday it will buy a luxury house for a near-record price in the city, a month after the government introduced measures to cool the city's property market.
Sino-tech International Holdings, an electronics components maker, said it has agreed to buy the 4,650 sqft property on the Peak for HK$280 million (US$35.90 million), or HK$60,215 psf, as an investment.
The psf price is among the highest paid for a property in the southern Chinese city, after a duplex was sold by Henderson Land Development in October for an Asian record of HK$71,280 psf.
The Peak property is one of the 22 houses in the luxurious Severn 8 development on Severn Road, which was named by online analysis group The Wealth Bulletin as one of the 10 most expensive streets in the world last year.
Also on the list were Chemin de Saint-Hospice in the South of France, Fifth Avenue in New York, and Kensington Palace Gardens in London.
The near-record price was reached despite a series of measures the government introduced in February to cool the white-hot property market, such as increasing residential land supply and stamp duty for luxury flats.
John Tsang, the city's financial secretary, said the government was worried that the property frenzy, supported by strong demand from rich mainland buyers and a big inflow of funds, would create a bubble and affect the stability of the financial system.
Prices of some luxury flats returned to the peaks of the 1997 property boom in January, Tsang said.
Stimulus measures by governments around the world have boosted liquidity, which has lead to large fund inflows into Asia.
China has also seen soaring property prices, with values rising at their fastest pace in 17 months in December after Beijing encouraged tax breaks, loans and lower downpayment requirements to boost the sector during the slump.
F01 N54 Sheer Driving Pleasure
Buy Asian and UK Real Estate as Inflation Hedge, Aberdeen Says
Hanny Wan
Bloomberg
Hong Kong
Wednesday, 17 March 2010, 12.50 pm CCT
Investors should buy real-estate assets and funds that invest in property in Asia and the U.K. because a potential rebound in prices and economic growth will counter inflation risks, Aberdeen Asset Management Plc said.
While U.K. properties offer “attractive” yield, real estate in Asia is supported by the strength of the region’s economic growth, Michael Turner, head of global strategy and asset allocation at Aberdeen, said in an interview in Hong Kong yesterday. He recommended buying into real-estate investment trusts and funds that hold property, without giving specific names.
“People should allocate more money than they do now in real estate as a hedge against inflation,” Turner said. “Real estate, whether or not there’s inflation as a result of macro policy, is attractive in its own way.”
China, India and Australia have tightened monetary policy to curb inflation as the global economy recovers from the worst recession since World War II. Interest rates in advanced economies can remain accommodative for an “extended period,” while policy in “a number of emerging economies” may have to be tightened “relatively soon” because of signs of accelerating inflation or credit booms, the International Monetary Fund said in a Jan. 19 staff note.
Minutes from the Australian central bank’s March meeting, released yesterday in Sydney, said policy makers raised borrowing costs this month for the 4th time in five meetings because the risk of faster economic growth stoking inflation outweighed the potential for renewed financial-market turmoil.
Different Story
In the U.S., where the housing market is still flat, the Federal Reserve yesterday repeated its pledge to keep its main interest rate near zero for an “extended period.”
It is a different story in Asia and Britain. U.K. house prices rose in February at the fastest pace in more than seven years, research group Acadametrics Ltd. said on March 12. 9 of 10 Britons say buying a home is a “sensible investment” even after the nation’s worst housing slump in three decades, a survey by YouGov Plc published on March 2 showed.
In Asia, property prices have risen as economic growth in the region outpaces the rest of the world. Hong Kong’s home prices surged almost 30 percent last year, Centaline Property Agency Ltd. said this month. Australian home prices jumped 13.6% in 2009.
Global Growth
The World Bank forecast in January that the global economy will expand 2.7% this year. China’s economy, the world’s third biggest, will top last year’s 8.7% growth rate in 2010, the nation’s central bank estimated this month. Singapore’s gross domestic product is forecast by the government to grow between 3% and 5% this year.
Aberdeen Asset was buying more U.K. offices and warehouses, and most of the 50 million pounds ($82 million) Aberdeen raised through stock sales would be invested in U.K. properties, Turner said on Nov. 2. He declined yesterday to say how much Aberdeen has increased its investment in property.
Inflation expectations are rising in China, making it more difficult for Premier Wen Jiabao to meet his 3% full-year target for price increases and adding to the case for an interest-rate increase.
The number of Chinese households expecting prices to gain in the next 3 months increased in a quarterly survey conducted in February, the central bank said on its Web site yesterday, citing seasonally adjusted data. It didn’t give numbers.
The People’s Bank of China will raise interest rates this month or next after the government reported higher-than-expected consumer-price gains in February, according to 11 of 15 economists surveyed by Bloomberg News last week.
F01 N54 Sheer Driving Pleasure
Sales of private homes up 130%
Melissa Sim & Melissa Kok
The Straits Times
Thursday, 18 March 2010
The 91-unit Newton One condo. Singaporeans accounted for 76% of private property purchases last year. -- Photo: Chessa Lim, ST
Downturn? What downturn?
Private home transactions – for both new and resale homes – jumped by more than 130% last year, despite the downturn. Singaporeans were the main drivers of the surge: There was an overall rise of 144% in private property transactions by them last year – 23,516 compared with 9,649 in 2008.
In the non-landed segment, Singaporean purchases rose almost 159%. The rise in landed property purchases was nearly 83%.
But comparatively lower prices here as a result of the credit crunch, the influx of expatriates and the attractiveness of Singapore property also led to more purchases by foreigners.
The number of purchases by foreigners, including permanent residents (PRs), rose 114% overall last year – 6,798 compared to 3,176 in 2008. The bulk of the increase was in the non-landed segment, which rose from 3,036 purchases in 2008 to 6,610 last year – a jump of 118%.
Landed properties showed a year-on-year rise of 34%.
In terms of overall private property transactions, Singaporeans accounted for 76% of all purchases. Foreigners and PRs made up about 22%, with the rest going to companies and others, according to figures from the Urban Redevelopment Authority and DTZ Research.
Checks by The Straits Times showed that among the foreigners, Malaysians, Indonesians, and Chinese and Indian nationals were the most active in the property market. In particular, the proportion of Chinese and Indian nationals hasshown a steep hike.
In 1999, they made up 6.6% of total transactions by foreigners and PRs. That proportion grew to 27.3% last year.
Experts said the rising number of purchases by foreigners could also be due to home prices here being more attractive than in cities like Hong Kong and Tokyo.
Ms Christine Sun, senior manager of research and consultancy at Savills Singapore, said: ‘The opening of the integrated resort (IR) and the strength, resilience and stability of Singapore’s economy during the recent downturn could also be plus points.’
She added that the boom came despite a poor economy. ‘The market sentiment in the earlier part of 2009 was rather bullish. Many locals were buying due to pent-up demand, and PRs and foreigners could have ridden on the positive market sentiment and bought in as well.’
Mr Jeffrey Hong, executive director of HSR Property Group, said another reason for the rise in transactions was simply that there are more foreigners here.
Latest figures from the Department of Statistics showed there were 533,200 PRs and 1.25 million foreigners in Singapore as of last year, up from 449,200 PRs and 1 million foreigners in 2007.
Another reason foreigners are buying more homes is that to many, it makes more sense than renting.
Australian Justin Kwan, 26, a doctor who has lived here for more than a year, bought a Newton One condo unit last December. He did not want to go on paying $3,000 in rent, and said property prices were affordable.
F01 N54 Sheer Driving Pleasure
Biomedical Science Sector
More than 1,600 jobs to be created
Millet Enriquez
TODAY
Thursday, 18 March 2010
"The catch? The bulk of positions at the senior level will likely go to foreigners, as the Republic continues to grapple with the need for more experienced and qualified local talent."
It was a vital sector that buoyed up manufacturing in a troubled 2009, and drew $1.2 billion in total fixed asset investment as well as $700 million in total business spending for Singapore in the midst of a global downturn.
Now, poised to grow between 5 and 10% this year, the biomedical
science sector also promises to create more than 1,600 jobs once these commitments are fully implemented.
The catch? The bulk of positions at the senior level will likely go to foreigners, as the Republic continues to grapple with the need for more experienced and qualified local talent.
According to the EDB, the sector’s manufacturing output grew 2.5% to some $21 billion last year in spite of the recession. This is more than triple the output in 2000.
Singapore’s biomedical industry employs more than 13,000 people, and recruitment has increased over the past 2 years, according to analysts:
Executive search firm ScienTec Consulting reported a 65% increase in senior management hires.
About half of the latter are foreigners, said ScienTec’s managing director Karen Tok. “Lack of talent with both leadership and specialised biomedical sciences background such as in pharmaceutical, medical and scientific areas are the main reasons that companies look for talent from countries like Australia, Europe and the United States,” she said.
While local talents may have the skills, they do not have the 20 years of experience required of some senior positions, as Singapore’s biomedical sector has only grown over the last 5 years, Ms Tok added. Also required of senior managers these days is international exposure and commercial experience.
The problem is less severe at the junior level, where 2 to 3 years’ experience is the norm and 20% of hires are foreigners, Ms Tok said.
One problem that has surfaced in the past has been the shortage of PhD qualifications, needed in most research positions. Last month, a subcommittee of the Economic Strategies Committee noted that Singapore has about 1.5 PhD holders per 1,000 in the labour force, and only 35% of the PhDs in local universities are citizens or permanent residents.
The job opportunities, nevertheless, are there to be had, for those with the qualifications.
Biomedical job postings on online portal JobsDB total 1,013 at the senior, middle and entry level positions, for professionals, managers, engineers, scientists and research engineers. Big advertisers include Zuellig Pharma, Astra-Zeneca and SingHealth.
Some of the big commitments made last year included Quintiles Transnational, which planned to double its presence here to more than 500; Roche, which opened a $699 million biologic manufacturing site; and Medtronic, which sank $80 million in a plant here and expects to hire more than 100 staff in 2 years.
To meet demand for clinical researchers, the EDB has partnered companies like Quintiles to launch training positions for Singapore residents keen on joining the sector; while the Workforce Development Agency has been developing a specialist track for clinical research professionals by the 2nd quarter.
..........
..........
Junior
I think it is scary when all these experts conclude that our property price is cheap by merely using reference point, as compare against Hong Kong. Singapore is cheaper than Hong Kong and justifiably so. For one, we don't have the China hinterland. Two, our richest is far away from the richest Li Ka Shing => our richest people very malu can't even get into top 20. Three, while the investment banking front office regional headquarters is in Hong Kong, only the back office is in Singapore and Four, while you see Bloomberg following the opening bell in HK stock market, do you see that for singapore? In short, our stock market capitaslisation is a far cry from Hong Kong and not as established or liquid. Singapore is NOT Hong Kong - and perhaps one day all these experts will wake up an stop using Hong Kong as a benchmark. We are way behind and therefore our prices will always be behind. Property values should be supported by fundamentals, e.g. rental yields and real demand and supply, not by reference point. Sometimes, the reference point is wrong lor.
Sales of private homes up 130%
Melissa Sim & Melissa Kok
The Straits Times
Thursday, 18 March 2010
The 91-unit Newton One condo. Singaporeans accounted for 76% of private property purchases last year. -- Photo: Chessa Lim, ST
Downturn? What downturn?
Private home transactions – for both new and resale homes – jumped by more than 130% last year, despite the downturn. Singaporeans were the main drivers of the surge: There was an overall rise of 144% in private property transactions by them last year – 23,516 compared with 9,649 in 2008.
In the non-landed segment, Singaporean purchases rose almost 159%. The rise in landed property purchases was nearly 83%.
But comparatively lower prices here as a result of the credit crunch, the influx of expatriates and the attractiveness of Singapore property also led to more purchases by foreigners.
The number of purchases by foreigners, including permanent residents (PRs), rose 114% overall last year – 6,798 compared to 3,176 in 2008. The bulk of the increase was in the non-landed segment, which rose from 3,036 purchases in 2008 to 6,610 last year – a jump of 118%.
Landed properties showed a year-on-year rise of 34%.
In terms of overall private property transactions, Singaporeans accounted for 76% of all purchases. Foreigners and PRs made up about 22%, with the rest going to companies and others, according to figures from the Urban Redevelopment Authority and DTZ Research.
Checks by The Straits Times showed that among the foreigners, Malaysians, Indonesians, and Chinese and Indian nationals were the most active in the property market. In particular, the proportion of Chinese and Indian nationals hasshown a steep hike.
In 1999, they made up 6.6% of total transactions by foreigners and PRs. That proportion grew to 27.3% last year.
Experts said the rising number of purchases by foreigners could also be due to home prices here being more attractive than in cities like Hong Kong and Tokyo.
Ms Christine Sun, senior manager of research and consultancy at Savills Singapore, said: ‘The opening of the integrated resort (IR) and the strength, resilience and stability of Singapore’s economy during the recent downturn could also be plus points.’
She added that the boom came despite a poor economy. ‘The market sentiment in the earlier part of 2009 was rather bullish. Many locals were buying due to pent-up demand, and PRs and foreigners could have ridden on the positive market sentiment and bought in as well.’
Mr Jeffrey Hong, executive director of HSR Property Group, said another reason for the rise in transactions was simply that there are more foreigners here.
Latest figures from the Department of Statistics showed there were 533,200 PRs and 1.25 million foreigners in Singapore as of last year, up from 449,200 PRs and 1 million foreigners in 2007.
Another reason foreigners are buying more homes is that to many, it makes more sense than renting.
Australian Justin Kwan, 26, a doctor who has lived here for more than a year, bought a Newton One condo unit last December. He did not want to go on paying $3,000 in rent, and said property prices were affordable.
Senior
well written piece .... cant agree more ...
Senior
Which means what we are experiencing now is a growing bubble? I see many buying now with hopes of future rental income after their project TOP...if nobody come and rent then we are doomed.
Newbie
The HK property market is not supported by only a few billionaires or a select group of rich people, it's the mass that supports current high prices. By benchmark, HK's per capita is still much lower than Singapore's while average property prices are way higher than in Singapore. What this means is that Singapore property market still has alot of room for appreciation. If HK can do so with their low per capita, so can Singapore. However, in practical sense, I don't think Singapore will match the price of HK as the latter is really a global city.
In short, wealth of some top individuals is not a good indication of affordability in the property market. Per capita is and in that aspect, Singapore properties are still way more affordable than HK. If you think you can't survive with a $4k income and paying $2k for your house installment, consider Hong Kongers who are earning much less. There's no doubt Singapore property still has lots of room to grow based on current standards.
Regards,
Pmet
New Launch Project Specialist
Good analysis, but I remember reading that Singapore's high per capita is due to the high incomes of the select rich, it is not an average. So HK's per capita income might be lower, but the man in the street in HK may actually earn more than the average Singaporean.
We should actually study the affordibility index to do benchmarking.
Senior
HK has numerous small units. does that mean that while their psf is high, the quantum is still low enough to be affordable? in contrast, singapore seems to be moving in that direction with higher psf but smaller units so that it remains affordable BUT can the older, bigger units still be affordable if priced at the same psf?
Newbie
Singapore mass market :- indigestion may be setting in liao > S$1000psf really kind of high, unless special story or product / location, still hot, else showflats can be quite quiet for these sales.
Singapore cbd prime market :- Hottest now.....76 shenton way....i think don't have to explain much here.
Singapore D9/D10 prime market :- Hot now.....and getting hotter......
The laurels $2900 psf to $3200 psf (80% sold of 179 units released for preview);
Vermont at Cairhill $2600 psf to $3000 psf (collecting cheques now.....if no need see showflat can start booking unit from developer liao....)
Goodwood residences $2500 psf to $2800 psf (vvip preview next week....)
Nathan Suites $2100 psf to $2500 psf (booking starts end of march 2010)...
So prime bull running again!
Newbie
A very good point by pmet.
Thanks for sharing.
Junior
On top of all these, the leases in HK is only 50 years,
Global recession is coming....
I think many people (>75% of the people) under-estimated the earning capabilities of Singaporeans! Just because they don't earn so much doesn't mean very few people are earning much more than them.
"According to Dept of Statistics in 2009, ave household income for the 80%-90% top earners is $12,290 pm (and these only consider the 'workers' salaries, i.e. employed types, not including those income from business and investments etc) . This is actually not difficult to achieve considering that most household now have both husbands and wives working. (not comparable to previous statistics where most households have 1 working)."
Based on below statistics, we can infer that about 15% of working-class people earns >$S12,290 pm. If we include those income from businesses, investments (shares, properties, rentals etc) and those who under-declared, then probably about 25% of the population earns >$12,290 pm?
If we assume that a household uses 35% to pay mortgages, that is about $4301 pm. $4301 pm would enable a household to buy a $1.5m property (taking out a $1.2m housing loan for 30 years at 2% p.a.). So, based on these statistics means 25% of Singaporeans can afford at least $1.5m properties!
Considering that private properties only make up of 20% of all properties in Singapore, soon no private properties of at least 1000 sqft will be <$1m!
Newbie
that is all nice but when interest increases
to 4% $6300 pm
and 8% $10300 pm
etc...
who will get a loan at 2% p.a for 30 years?
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