Property market sentiments 2010

[jlrx]

I agree that there are winners and losers in every game but I would like to think that everybody can be a "winner" in this great game of propertism.

Every game in this world is a zero sum game. In the case of PROPERTISM, the losers are those who did not buy properties.

That's why the Straits Time forum complainers have been screaming and kicking and shooting letters at the Government, and resorting to astroturfing.

They are into their second or third generation now ...

There are many ways to play the property investment game. I can buy an old apartment, sit on it and wait for "enbloc", or I can buy a landed and hope for a change in master plan. But isn't this a little bit like buying a lottery ticket, with the investor, in either case, really having no control over the outcome? How long do you think you can put up with the low rental yield and how do you service the mortgage, while you wait?

You need to have the means to play the en bloc holding game.

Eventually, every enblocable property will en bloc, it's just a matter of time.

The capital gains are usually significantly more than all the cumulative foregone rental yields.

On the other hand, it is a more prudent to buy a property that is supported by good yield because it provides a buffer for my cash flow during a downturn. Cash flow, or the lack of, is the only real danger in this game and the only way you can really LOSE.

Price is only meaningful in relation to yield. High price with no yield is the definition of aBUBBLE. Low price with high yield spells BUYING OPPORTUNITY. Buying and holding is the right concept but we will be walking on thin ice if we just buy and hope for the best without yield.

All else being the same, capital gains and rental yield are trade offs.

The reason why, in the end, capital gains surpass cumulative rental yield is because there are fewer people with the means to hold. When fewer people can play the game, then you get a better return.

For example, we know that GCBs are the most undervalued class of properties in Singapore and HDBs are the most overvalued. Yet I can't do anything about GCBs because I don't have the means to play this market.

When there are people artificially kept out of money making opportunities because they don't have the means to play, then if you have the means, you can enjoy a better return than those who don't. That's life.

Perhaps the ideal scenario will be to invest in properties with high yield while staying in one with enbloc potential. Sure and safe way to win the game, with an added element of EXCITMENT.

Some en bloc potential properties are best left empty, unless you like this lady ...

[chanys]

I agree with jlrx's statement on "All else being the same, capital gains and rental yield are trade offs", as I don't think one can generally find a property which is selling at a low price but gives good rental yield. So you can't have the best of both worlds. If anyone can prove me wrong with an example, that's great!

I think buying a property hoping it to get en bloc is like buying lottery, unless you have inside information?

Best to buy for capital gains. Regarding this, is it better to buy direct from developers or resale?

[chho]

I agree that losers are those who did not buy properties. If I may add that losers are also those who bought properties but subsequently were forced to sell cheap or worse - bankrupted due to a lack of means to service the mortgages of properties. One of the very common reasons can be due to lack of funds, which in turn can be contributed by lack of decent yield.

I agree that it is a matter of time that every enblocable property will be enbloc. I question whether it is more prudent to buy something with healthy yield so you can ride the property wave safely and surely to prosperity or punt on a property that may or may not be enbloc in our lifetime.

Whether the "winnings" then will be more than cummulative rental will depend on the size of the "winnings" and how long it takes for you to get the winnings. Ever bought TOTO???

Every game in this world is a zero sum game. In the case of PROPERTISM, the losers are those who did not buy properties.

That's why the Straits Time forum complainers have been screaming and kicking and shooting letters at the Government, and resorting to astroturfing.

They are into their second or third generation now ...









You need to have the means to play the en bloc holding game.

Eventually, every enblocable property will en bloc, it's just a matter of time.

The capital gains are usually significantly more than all the cumulative foregone rental yields.



All else being the same, capital gains and rental yield are trade offs.

The reason why, in the end, capital gains surpass cumulative rental yield is because there are fewer people with the means to hold. When fewer people can play the game, then you get a better return.

For example, we know that GCBs are the most undervalued class of properties in Singapore and HDBs are the most overvalued. Yet I can't do anything about GCBs because I don't have the means to play this market.

When there are people artificially kept out of money making opportunities because they don't have the means to play, then if you have the means, you can enjoy a better return than those who don't. That's life.



Some en bloc potential properties are best left empty, unless you like this lady ...

[chho]

I agree that capital gain and rental yield are trade offs. The question is whether it is better to have high capital gain or high yield. Generally in Singapore, residential properties will give you high capital gain and low yield as compared to shophouses, which will give you high yield and low capital gain. Which is better remains to be seen. But I am tilting towards shops.

How do you define something as "low price but give good rental yield'? My point is that if it gives good rental yield, the price is low. An apartment selling at $1m with a monthly rental of $5000 is "cheaper" than another $1m apartment with a monthly rental of $3000, all else being the same.

Finally, it is generally better to buy resale because developers are usually financially stronger than you and me so they would have "fully priced" their products. Look to the resale market for fire sale during a recession - always great time to buy.

I agree with jlrx's statement on "All else being the same, capital gains and rental yield are trade offs", as I don't think one can generally find a property which is selling at a low price but gives good rental yield. So you can't have the best of both worlds. If anyone can prove me wrong with an example, that's great!

I think buying a property hoping it to get en bloc is like buying lottery, unless you have inside information?

Best to buy for capital gains. Regarding this, is it better to buy direct from developers or resale?

[Reporter]

Upside for Singapore home prices to drive shares: Morgan Stanley
The Edge
Monday, 19 April 2010, 12.46 pm

Shares of Singapore property developers CityDev (C09.SG), Allgreen (A16.SG), Wing Tai (W05.SG), Wheelock Properties (M35.SG) should continue to perform well as city-state’s private home prices expected to rise 10%-15% by end-2010, says Morgan Stanley, according to Dow Jones.

Notes residential price growth well supported by improving macroeconomic outlook, employment prospects, rising rents, sustained affordability; believes pool of domestic private buyers has almost doubled to 232,000 households in 2008 from 2004’s 117,000. Adds, speculative activity low vs previous cycles, while more government measures to cool market unlikely with general elections due by February 2012. Raises NAV estimates by 10%-51%, resulting in higher target prices.

Upgrades CityDev (C09.SG) to Overweight from Underweight, ups target to $15.53 from $8.35, Ups Wing Tai to Overweight vs Equalweight with $2.42 target vs $1.60 previously. Raises Wheelock target to $2.46 vs $2.14; keeps Overweight. Raises Keppel Land (K17.SG) target to $4.14 vs $3.45, for CapitaLand (C31.SG) to $4.03 vs $3.99; keeps both Equalweight.

[Reporter]

I know some might think this is a joke but my friend told me a high floor studio just sold for $1,611 psf. Another sold at $1,518 psf low floor. Both today's transactions.

Oh my goodness!
Citylights in District 8 has a nëw hïgh of $1,611 psf!

[jlrx]

Generally in Singapore, residential properties will give you high capital gain and low yield as compared to shophouses, which will give you high yield and low capital gain.

This statement you read it very often, especially from analysts. But I can tell you they do not see the "big picture".

To say that shops give you higher yield than residential properties is akin to saying that businessmen earn more than school teachers.

Depends on what type of businessmen. Successful or not?

The risks for shops are very high (that's why cannot use CPF and banks charge higher interests).

Successful shop. Yes. But once the crowd pattern shifts. The end.

Residential properties, no matter how bad, can always find tenants if you lower the rent. Not so for shops.

If your shop's location no good, even zero rental nobody wants to rent because to start a business the tenant needs to incur costs. Even the oldest profession does not want to rent.

You can see many places with empty shops where they put up a sign board "Look Out for Next Exciting Thing Coming!" but yet empty for many years.

Think of those HDB shops which turned into void decks in the end.

Do you dare to buy Sim Lim Square or Queensway Shopping Centre?

The yield is very high because one is the IT hub and the other Sporting hub.

It's not the value of the land. It's the business.

If one day the human traffic pattern shifts for one reason or another, the value will plunge.

These are not really "properties". They're more like businesses.

[jasonyap]

This statement you read it very often, especially from analysts. But I can tell you they do not see the "big picture".

To say that shops give you higher yield than residential properties is akin to saying that businessmen earn more than school teachers.

Depends on what type of businessmen. Successful or not?

The risks for shops are very high (that's why cannot use CPF and banks charge higher interests).

Successful shop. Yes. But once the crowd pattern shifts. The end.

Residential properties, no matter how bad, can always find tenants if you lower the rent. Not so for shops.

If your shop's location no good, even zero rental nobody wants to rent because to start a business the tenant needs to incur costs. Even the oldest profession does not want to rent.

You can see many places with empty shops where they put up a sign board "Look Out for Next Exciting Thing Coming!" but yet empty for many years.

Think of those HDB shops which turned into void decks in the end.

Do you dare to buy Sim Lim Square or Queensway Shopping Centre?

The yield is very high because one is the IT hub and the other Sporting hub.

It's not the value of the land. It's the business.

If one day the human traffic pattern shifts for one reason or another, the value will plunge.

These are not really "properties". They're more like businesses.

Strongly agreed.

[chanys]

Agree with jlrx, and it's great to see him post something other than propertism.

[Bishan Kid]

This statement you read it very often, especially from analysts. But I can tell you they do not see the "big picture".

To say that shops give you higher yield than residential properties is akin to saying that businessmen earn more than school teachers.

Depends on what type of businessmen. Successful or not?

The risks for shops are very high (that's why cannot use CPF and banks charge higher interests).

Successful shop. Yes. But once the crowd pattern shifts. The end.

Residential properties, no matter how bad, can always find tenants if you lower the rent. Not so for shops.

If your shop's location no good, even zero rental nobody wants to rent because to start a business the tenant needs to incur costs. Even the oldest profession does not want to rent.

You can see many places with empty shops where they put up a sign board "Look Out for Next Exciting Thing Coming!" but yet empty for many years.

Think of those HDB shops which turned into void decks in the end.

Do you dare to buy Sim Lim Square or Queensway Shopping Centre?

The yield is very high because one is the IT hub and the other Sporting hub.

It's not the value of the land. It's the business.

If one day the human traffic pattern shifts for one reason or another, the value will plunge.

These are not really "properties". They're more like businesses.

Your philosophy about propertism will never be a brainstorming session for all.
Indeed is a lesson learnt for property analysts, consultant, investor, speculator and homeowners.

[Reporter]

Bungalows in Mountbatten area cross $1,000 psf
The Edge
Monday, 19 April 2010

The Mountbatten area has seen transactions of landed homes pick up pace in recent months, with a couple of bungalows on Branksome Road, Wilkinson Road and, most recently, Ramsgate Road changing hands at prices above $1,000 psf since the start of the year.

Bungalows in the Mountbatten area are very much sought after,” says William Wong, managing director of RealStar Premier Property, who specialises in bungalow sales in the traditional prime districts of 9, 10 and 11, as well as the Katong/Mountbatten area of District 15. “Unless you want to be in the vicinity of the top schools in the Bukit Timah area, the Mountbatten area is the next best place.” This is because the bungalows in the Mountbatten area have larger land area and are thus farther apart from each other than those in the Bukit Timah area, which has become increasingly congested, adds Wong.

“In fact, the ambience of the bungalow neighbourhood in Katong is as good as that of some of the Good Class Bungalow estates in the prime districts,” he adds. “The Mountbatten area is also just a short drive from the CBD via the ECP [East Coast Parkway expressway], and the proximity to eateries and amenities is also a draw.” Thus, the Mountbatten area is still very popular among successful local entrepreneurs and businessmen. He reckons about 80% of the buyers are Singaporeans, with the rest being permanent residents (PRs).

The most recent transaction is for a 2-storey corner detached house on Ramsgate Road just off Mountbatten Road, which has a freehold land area of 8,245 sq ft and was sold for $8.3 million, or $1,007 psf, over the March 23 to April 1 period. The previous owner had purchased the property for $3.6 million, or $437 psf, according to an April 2003 caveat lodged with URA. The last time the house changed hands was in September 1996, for $630,000, or $76 psf. The price of $1,007 psf is the highest ever achieved for Ramsgate Road since URA Realis started keeping records in January 1995.

Along Mountbatten Road, two adjacent bungalows, Nos 771 and 769, were sold for $7.5 million, or $877 psf, and $7 million, or $814 psf, respectively, according to two caveats lodged with URA on March 26. The previous owner of the house at No 771, which sits on an 8,557 sqft freehold site, had purchased it for $6.5 million, or $760 psf, in August 2007, hence a capital gain of about 15%.

Meanwhile, a 6,437 sqft corner semi-detached house at the intersection of Parkstone and Boscombe Roads, off Tanjong Katong Road, was recently sold for $4.9 million, or $761 psf.

RealStar’s Wong is said to have brokered about 40% of the transactions of landed homes in the Mountbatten- Katong neighbourhood. RealStar also brokered the recent sale of the bungalow at 119 Branksome Road, which has a land area of 6,222 sqft and was sold for $6.5 million, or $1,045 psf, according to a caveat lodged in March. Another deal was 2 Branksome Road, which has a land area of 11,044 sqft and changed hands for $8.38 million, or $850 psf, in January. That month, RealStar also brokered the sale of a bungalow at 51 Bournemouth Road, with a land area of 9,365 sqft and which was sold for $9.38 million, or $1,002 psf. “The asking price of Mountbatten Road bungalows is easily $1,200 psf today,” says Wong.

The neighbouring Joo Chiat area has also seen several landed houses change hands recently. For instance, a semi-detached house on Duku Road was sold for $3.38 million, or $880 psf. The house, with a land area of 3,843 sqft, last changed hands just last August for $2.6 million, or $677 psf, a capital gain of 30% in less than a year. Prior to that, the property was sold in May 1999 for $1.5 million, or $390 psf, which translates into a gain of 73% in almost a decade.

A 2,034 sqft terrace house in Joo Chiat Place recently changed hands for $1.648 million, or $810 psf. A semi-detached house on Joo Chiat Terrace with a land area of 3,025 sqft was sold for $2.15 million, or $710 psf. This is the third time the semi-detached house at Joo Chiat Terrace has changed hands. Just two years ago, according to an August 2008 caveat with URA, it changed hands for $1.78 million, or $588 psf. And, 12 years earlier, it was sold for $1.655 million, or $546 psf, according to an August 1996 caveat.

Other parts of East Coast are also seeing an increase in activity in landed homes. Located just off East Coast Road is Fowlie Road, where a terraced house with a 1,518 sqft plot was recently sold for $1.22 million, or $804 psf. Meanwhile, a slightly larger terraced house with a land area of 1,894 sq ft on Sea Avenue, a short distance away, was sold for $1.8 million, or $949 psf.

[focus]

Your philosophy about propertism will never be a brainstorming session for all.
Indeed is a lesson learnt for property analysts, consultant, investor, speculator and homeowners.

Agreed! His posts are worth more than the "gurus" who appeared on TV or conduct courses.

[Property_Owner]

This statement you read it very often, especially from analysts. But I can tell you they do not see the "big picture".

To say that shops give you higher yield than residential properties is akin to saying that businessmen earn more than school teachers.

Depends on what type of businessmen. Successful or not?

The risks for shops are very high (that's why cannot use CPF and banks charge higher interests).

Successful shop. Yes. But once the crowd pattern shifts. The end.

Residential properties, no matter how bad, can always find tenants if you lower the rent. Not so for shops.

If your shop's location no good, even zero rental nobody wants to rent because to start a business the tenant needs to incur costs. Even the oldest profession does not want to rent.

You can see many places with empty shops where they put up a sign board "Look Out for Next Exciting Thing Coming!" but yet empty for many years.

Think of those HDB shops which turned into void decks in the end.

Do you dare to buy Sim Lim Square or Queensway Shopping Centre?

The yield is very high because one is the IT hub and the other Sporting hub.

It's not the value of the land. It's the business.

If one day the human traffic pattern shifts for one reason or another, the value will plunge.

These are not really "properties". They're more like businesses.

Now you start to see the value of commercial.

[Property_Owner]

Agreed! His posts are worth more than the "gurus" who appeared on TV or conduct courses.

We have people that come from all walks of life here. Reporter that gives first hand informations, Jlrx, no need anymore intro, focus who has deep pockets but stay HDB, stalingrad that defends his carabelle....and not forgetting blue, apple and so on. All had contributed here.

Pal, btw i be moving out of Sentosa soon. Been bz with moving plans

[august]

We have people that come from all walks of life here. Reporter that gives first hand informations, Jlrx, no need anymore intro, focus who has deep pockets but stay HDB, stalingrad that defends his carabelle....and not forgetting blue, apple and so on. All had contributed here.

Pal, btw i be moving out of Sentosa soon. Been bz with moving plans

sentosa a bit too quiet isit?

[moneyspinner]

sentosa a bit too quiet isit?

HAUNTED???????????

[focus]

We have people that come from all walks of life here. Reporter that gives first hand informations, Jlrx, no need anymore intro, focus who has deep pockets but stay HDB, stalingrad that defends his carabelle....and not forgetting blue, apple and so on. All had contributed here.

Pal, btw i be moving out of Sentosa soon. Been bz with moving plans

Haha.. Yes yes.. everyone is a contributor..

Woo.. I don't think i want to ask you where you will be moving to.. I guess it will be another out of my reach type of housing..

[ay123]

We have people that come from all walks of life here. Reporter that gives first hand informations, Jlrx, no need anymore intro, focus who has deep pockets but stay HDB, stalingrad that defends his carabelle....and not forgetting blue, apple and so on. All had contributed here.

Pal, btw i be moving out of Sentosa soon. Been bz with moving plans

moving to highest floor marina bay........in line with opening of 2nd IR. You have witness the 1st IR opening...now is the 2nd.....

[Reporter]

Singapore March manufacturing data beats estimates
The Edge
Monday, 26 April 2010, 14:44

Singapore’s manufacturing output rose faster than expected because of robust growth in electronics and pharmaceuticals, and may help the island nation’s economy expand by at least 10% this year.

Manufacturing output grew 43% in March, accelerating from a downwardly revised 17.9% expansion in February, according to data released by the Economic Development Board Monday. A Dow Jones Newswires poll of seven economists had tipped industrial production to grow 30.3%.

“The March manufacturing data, coupled with the export numbers for the same month has established a strong base for a strong second quarter and there may now be a greater chance of a double-digit growth this year,” Robert Prior-Wandesforde, an economist with HSBC Bank, said after the data were released. “It’s, however, not of much relevance to the central bank.”

The Monetary Authority of Singapore tightened monetary policy aggressively on April 14 and raised its projections for economic growth and inflation this year after gross domestic product soared 32.1% in the quarter ended March 31 from the previous three months in annualized, adjusted terms, the fastest pace on record going back to 1975. That compared with a 2.8% contraction in the fourth quarter of last year.

The island nation’s government now expects the economy to grow between 7% and 9% this year while inflation may range between 2.5% and 3.5%.

Electronics, Pharmaceuticals lead

Electronics output surged 73.8% from a year earlier after rising 55.5% in February due to higher export demand and weak comparative numbers, the data show. Among electronics, output of semiconductors rose 96.6% while consumer electronics production grew 22% on year.

“Global electronics demand has rebounded strongly and that, in turn, is supporting export-dependant regional economies,” said David Cohen of Action Economics. “This is one more sign that global recovery is continuing and may prompt other Asian central banks such as Taiwan and Indonesia to join the crowd and tighten policy.”

Australia, Malaysia, and India have started to hike interest rates. Others, including China and the Philippines, are moving to soak up excess liquidity in banking systems that analysts say is starting to light a fire under real estate and other asset prices.

Output from Singapore’s biomedical sector rose 65.1% in March due to a 69.9% rise in pharmaceuticals output on higher production of ingredients that go into drugs.

Singapore’s pharmaceuticals sector is dominated by a small number of firms, and output can vary significantly when plants change product lineups or close for maintenance.

Manufacturing output, excluding the biomedical sector, increased by 36.2%. Still, production from the transport engineering sector fell 13.5% due to weaker output in the aerospace and marine and offshore segments.

Seasonally adjusted manufacturing output fell less than expected, contracting 1.5% from a month earlier, compared with a revised 5.2% rise in February. The median forecast of economists was for a 7.9% decrease in seasonally adjusted terms in March.

[teddybear]

scare of nuclear plant?

We have people that come from all walks of life here. Reporter that gives first hand informations, Jlrx, no need anymore intro, focus who has deep pockets but stay HDB, stalingrad that defends his carabelle....and not forgetting blue, apple and so on. All had contributed here.

Pal, btw i be moving out of Sentosa soon. Been bz with moving plans

[dmonddd]

will this impact property prices in Singapore or Hong Kong in H2 2010? Higher demand or SG government will intervene (hope so)? How to afford private condos going forward?

China Property Stocks Decline on Possible Tax Trial (Update2)

April 22, 2010, 5:29 AM EDT

April 22 (Bloomberg) -- China’s property stocks fell to the lowest in more than a year after the Economic Observer said the State Council has approved a real-estate tax trial in four cities and Citigroup Inc. forecast prices may drop 20 percent.
China Vanke Co., the biggest developer, slid 2.6 percent to close at 7.90 yuan, extending its decline this year to 27 percent. A gauge of property stocks in the Shanghai Composite Index retreated 1.8 percent to its lowest since April 8, 2009.
The trial will start in Beijing, Chongqing, and Shenzhen and then in Shanghai following the World Expo, the report said, citing an unidentified person. A “turning point” in the China property market is “unavoidable,” Citigroup analysts Oscar Choi and Marco Sze wrote in a report today.
“Investors are worried about a worst-case scenario for property companies along with banks on the government’s crackdown,” said Wei Wei, an analyst at West China Securities Co. in Shanghai.
China has introduced “the most draconian” measures in the past week, according to Deutsche Bank AG’s Greater China chief economist Jun Ma, after earlier steps including raising the amount of bank reserves failed to prevent a record surge in property prices in March. Hedge fund manager James Chanos said this month China is “on a treadmill to hell” and that the real estate is a bubble that may burst as early as this year.
Tax ‘Inevitable’
The property bubble could hurt social as well as financial stability and must be deflated if the country is to urbanize and develop a healthy economy, the China Securities Journal said in an editorial today.
The implementation of a property tax is “inevitable,” the only question is when and where, Michael Klibaner, head of research at Jones Lang LaSalle Inc., said in Shanghai today.
Citigroup analysts predicted home prices may fall as much as a fifth from current levels by the end of the year, as tightening measures and increased land supply take effect.
The southern city of Guangzhou had 804 cancellations for home purchases on April 19, the highest on record, China Business News reported today, citing the Guangzhou Municipal Land Resources and Housing Administrative Bureau.
The housing ministry vowed April 20 to punish developers that “artificially” create supply shortages and ordered builders not to take deposits for sales of uncompleted apartments without proper approval.
Loan Curbs
The central bank last week raised mortgage rates, increased down payments for home purchases and ordered banks to restrict loans for buyers of three or more homes. State-owned companies were ordered by the government in March to pull out of property development if it’s not their main business.
Demand for housing in China will withstand government bank lending curbs, and further declines in the nation’s property stocks may be an opportunity to buy the shares, Templeton Asset Management Ltd.’s Mark Mobius said this week.
Alpha Investment Partners Ltd., a unit of Singapore developer Keppel Land, is looking to invest in Chinese property as it bets on “real demand” to hold up, Managing Director Loh Chin Hua said in Singapore yesterday.
Shanghai New Huangpu Real Estate Co. slumped 4.7 percent to 13.11 yuan today, extending a loss this week to 21 percent. Greentown China Holdings, which develops villas, slid 2.4 percent to HK$8.47 in Hong Kong, a 12th day of declines.
--Chua Kong Ho in Shanghai. With assistance from Zhang Shidong and Luo Jun. Editors: Allen Wan, Richard Frost

[jlrx]

We have people that come from all walks of life here. Reporter that gives first hand informations, Jlrx, no need anymore intro, focus who has deep pockets but stay HDB, stalingrad that defends his carabelle....and not forgetting blue, apple and so on. All had contributed here.

Pal, btw i be moving out of Sentosa soon. Been bz with moving plans

scare of nuclear plant?

How can the Government be so crazy to build a nuclear plant near Sentosa Cove and Marina Bay where they're trying to attract the world's billionaires to stay? It'll most probably be built at Pulau Ubin side.

The real reason is that since December last year, Property_Owner had been unsuccessful in searching for "that feeling" at Sentosa.

Guys, I used to thought tat life in Sentosa is prefect and maybe what your guys mentioned as priceless or what seattle lakeside living. But till not I have not had this feeling at all. Sigh, been staying here for pass 1 month still searching for that feeling.

Frankly, it's quite difficult for Singaporeans to get "that feeling" at Sentosa because we grew up here knowing that Sentosa is a place for "cheap" gatherings.

Sentosa should raise its entrance fee to $2,000 per person per day, if they want to create the right image for Sentosa Cove.

Once they do that, I can assure Property_Owner that in future if and when he moves back to Sentosa Cove, he will instantly get "that feeling".

[august]

nuclear plant shld be built on tekong, for obvious reasons ~

[proud owner]

Haha.. Yes yes.. everyone is a contributor..

Woo.. I don't think i want to ask you where you will be moving to.. I guess it will be another out of my reach type of housing..

back to east coast lah ...

[Reporter]

back to east coast lah ...

You mean we will be seeing a multimillionaire sleeping in a gold-plated tent among other tents along East Coast beach soon?

This tent culture seems to be picking up lately.

[Douk]

Personally, dont think so, especially Singapore.
If Singapore going to remake itself into a rich ppl enclave, high end properties should continue to grow..

As long as government keep new HDB at affordable pricing, they have fulfilled their duty to provide housing to majority of Sgprn. Government should be more concern on bubbles than property price, as long as there is still demand, property price should continue to move up.


Just my thoughts..

will this impact property prices in Singapore or Hong Kong in H2 2010? Higher demand or SG government will intervene (hope so)? How to afford private condos going forward?

China Property Stocks Decline on Possible Tax Trial (Update2)

April 22, 2010, 5:29 AM EDT

April 22 (Bloomberg) -- China’s property stocks fell to the lowest in more than a year after the Economic Observer said the State Council has approved a real-estate tax trial in four cities and Citigroup Inc. forecast prices may drop 20 percent.
China Vanke Co., the biggest developer, slid 2.6 percent to close at 7.90 yuan, extending its decline this year to 27 percent. A gauge of property stocks in the Shanghai Composite Index retreated 1.8 percent to its lowest since April 8, 2009.
The trial will start in Beijing, Chongqing, and Shenzhen and then in Shanghai following the World Expo, the report said, citing an unidentified person. A “turning point” in the China property market is “unavoidable,” Citigroup analysts Oscar Choi and Marco Sze wrote in a report today.
“Investors are worried about a worst-case scenario for property companies along with banks on the government’s crackdown,” said Wei Wei, an analyst at West China Securities Co. in Shanghai.
China has introduced “the most draconian” measures in the past week, according to Deutsche Bank AG’s Greater China chief economist Jun Ma, after earlier steps including raising the amount of bank reserves failed to prevent a record surge in property prices in March. Hedge fund manager James Chanos said this month China is “on a treadmill to hell” and that the real estate is a bubble that may burst as early as this year.
Tax ‘Inevitable’
The property bubble could hurt social as well as financial stability and must be deflated if the country is to urbanize and develop a healthy economy, the China Securities Journal said in an editorial today.
The implementation of a property tax is “inevitable,” the only question is when and where, Michael Klibaner, head of research at Jones Lang LaSalle Inc., said in Shanghai today.
Citigroup analysts predicted home prices may fall as much as a fifth from current levels by the end of the year, as tightening measures and increased land supply take effect.
The southern city of Guangzhou had 804 cancellations for home purchases on April 19, the highest on record, China Business News reported today, citing the Guangzhou Municipal Land Resources and Housing Administrative Bureau.
The housing ministry vowed April 20 to punish developers that “artificially” create supply shortages and ordered builders not to take deposits for sales of uncompleted apartments without proper approval.
Loan Curbs
The central bank last week raised mortgage rates, increased down payments for home purchases and ordered banks to restrict loans for buyers of three or more homes. State-owned companies were ordered by the government in March to pull out of property development if it’s not their main business.
Demand for housing in China will withstand government bank lending curbs, and further declines in the nation’s property stocks may be an opportunity to buy the shares, Templeton Asset Management Ltd.’s Mark Mobius said this week.
Alpha Investment Partners Ltd., a unit of Singapore developer Keppel Land, is looking to invest in Chinese property as it bets on “real demand” to hold up, Managing Director Loh Chin Hua said in Singapore yesterday.
Shanghai New Huangpu Real Estate Co. slumped 4.7 percent to 13.11 yuan today, extending a loss this week to 21 percent. Greentown China Holdings, which develops villas, slid 2.4 percent to HK$8.47 in Hong Kong, a 12th day of declines.
--Chua Kong Ho in Shanghai. With assistance from Zhang Shidong and Luo Jun. Editors: Allen Wan, Richard Frost

[Reporter]

Personally, dont think so, especially Singapore.
If Singapore going to remake itself into a rich ppl enclave, high end properties should continue to grow..

As long as government keep new HDB at affordable pricing, they have fulfilled their duty to provide housing to majority of Sgprn. Government should be more concern on bubbles than property price, as long as there is still demand, property price should continue to move up.


Just my thoughts..

There are 2 potential impacts from recent measures taken by China and Australia, namely positive and negative.

You have just touched on the negative impact, i.e. Singapore doing a copycat of China's and Australia's actions.

There is also the other impact, i.e. some investors from China and Australia fleeing to Singapore, which we need to look into.

[Reporter]

Letting Sing dollar appreciate is 'appropriate'
Millet Enriquez
TODAY
Tuesday, 27 April 2010

Trade and Industry Minister Lim Hng Kiang said the move to let the Singapore dollar appreciate is "appropriate" given Singapore's strong recovery from the recession.

Earlier this month, the Monetary Authority of Singapore (MAS) said it was re-centering its Singapore dollar policy band upwards and shifting to a policy of modest and gradual appreciation.

Speaking in Parliament yesterday, Mr Lim said domestic inflationary pressures are likely to pick up in tandem with a rise in global commodity prices.

A stronger currency will help sustain economic growth going forward, he said.

It could help lower the costs of imported goods and inputs, and moderate the external demand for local goods and services.

As for its impact on tourism, Mr Lim said "the relative exchange rate is a factor, but is not the most important factor".

Meanwhile, he said wage pressures will build as the labour market here tightens. Asset values could also rise with the improvement in the economy.

But he stressed that, even with a double-digit rebound, there are enough resources here to fuel the growth.

In response to a question by Liang Eng Hwa on why MTI revised the GDP growth forecast to between 7 and 9%, Mr Lim said economic recovery is becoming more broad-based and entrenched, and external conditions are improving, as evidenced in China and the US.

These are expected to support the recovery of trade flows and give Singapore's trade-dependent manufacturers and exporters a boost. But downside risks stemming from the debt crisis in Europe and the weak recovery in final demand as stimulus measures are withdrawn remain.

"In terms of the outlook for domestic prices, we expect some inflationary pressures to emerge as the economy recovers," said Mr Lim.

[Reporter]

Redundancies fall back to pre-recession levels
Number of workers made redundant drops again: MOM
TODAY
Tuesday, 27 April 2010

More than half of those who were laid off in the third quarter of last year found jobs by the end of the year, according to a Ministry of Manpower (MOM) report.

The number of workers made redundant was also well below that of previous recessions, reflecting the impact of the Resilience Package and concerted tripartite efforts in saving jobs, said MOM.

The Ministry's 2009 Redundancy and Re-employment report also found that re-employment improved after hitting a low in the middle of the year, though re-employment for the year was still lower than what it was in 2008.

Records from the Central Provident Fund showed that 52% of residents laid off in Q3 of 2009 were re-employed by December that year.

The records also found that 65% of residents made redundant in the first three quarters of 2009 were re-employed by December 2009.

Calling the news "heartening", Mr Dhirendra Shantilal, senior vice-president for Kelly Services' Asia-Pacific operations, said the figures were "an affirmation that the ongoing economic recovery is a sustainable one".

"As the market outlook continues to improve, we expect organisations to continue to ramp up their recruitment activities in hiring new employees with the most relevant skill sets ... organisations will be competing to hire employees with the right talent, leading to an increased competition for highly skilled workers," he said.

The report found that as Singapore's economy emerged from the recession, the number of workers made redundant continued to fall, reaching 2,220 in Q4 of 2009, which was back to pre-recession quarterly levels.

In total, there were 23,430 workers made redundant in 2009, comprising 20,160 who were retrenched and 3,270 whose contracts were prematurely terminated. This was still higher than the 16,880 in 2008, due to the large number laid off in the first quarter of 2009 amid the economic downturn.

Meanwhile, another MOM survey found that almost two-thirds of companies in Singapore already allow their workers to continue working past the age of 62.

Revealing the preliminary findings of the Manpower Ministry Retirement and Re-employment Practices survey, Manpower Minister Gan Kim Yong said 3 in 10 private establishments polled had local employees who reached the age of 62 during the year ending June 2009. 92% of the employees were allowed to work beyond the age of 62.

Calling the results encouraging, Mr Gan said it showed that employers valued older workers.

[dmonddd]

employment >>>> GDP growth >>> demand for gds >>>> demand for property >>>>> prices increase >>>> rent goes up as property price equals to infinite discounted rental inflows >>>>> ppl buy rather than rent >>>> further fuel property prices >>>inflation

is my understanding true or false? how can we afford to buy property in the future.