Singapore Government Announced Property Cooling Measures

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Re: Singapore Government Announced Property Cooling Measures

Postby ilovecck » Tue Jun 05, 2012 1:49 pm

randwick wrote:
If you don't have supply coming in, demand is not going to be there, he added, noting that sales this month are likely to follow a similar sluggish pattern because of the school holidays.


Thought it is supposed to be "demand" that will eventually generate "supply".....is property in Singapore so precious and unique that when there is supply, demand will follow??? Logical??


Actually, imo in our region (south east asia), in terms of political stabulity, crime rate, education and even cleaniness, Singapore is one of the better one, this coupled with a growing economy (increasing FDI, expartitates, foreign engineers with espertise etc), these ppl and families would need places to stay and the rich need a safer place to "park" their $$$ when times are bad, so in the long run, properties in SG are in a favourable position.

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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue Jun 05, 2012 2:45 pm

ilovecck wrote:
Actually, imo in our region (south east asia), in terms of political stabulity, crime rate, education and even cleaniness, Singapore is one of the better one, this coupled with a growing economy (increasing FDI, expartitates, foreign engineers with espertise etc), these ppl and families would need places to stay and the rich need a safer place to "park" their $$$ when times are bad, so in the long run, properties in SG are in a favourable position.

my 2cts


no doubt about it, 10 years from now, property prices likely to be higher than now.

But in year 2013/14, there is a high likelihood prices might fall due to Global Financial Crisis and also the huge supply of condos/HDB coming up.
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Re: Singapore Government Announced Property Cooling Measures

Postby randwick » Tue Jun 05, 2012 2:57 pm

Hi Dennis,

I understand what he is trying say....just doesn't sound logical to me. Perhaps, he should have just said something to the effect to what you wrote below....

...sales figures (still) low becos demand is falling...

There are still unsold condos around Singapore, if there is demand, sales figures would still be high in May.....so crux of the matter is still falling demand leads to falling sales, as you have mentioned.....guess he doesn't want to rock the boat or be bearer of bad news!


Dennis Ng wrote:
randwick wrote:
If you don't have supply coming in, demand is not going to be there, he added, noting that sales this month are likely to follow a similar sluggish pattern because of the school holidays.


Thought it is supposed to be "demand" that will eventually generate "supply".....is property in Singapore so precious and unique that when there is supply, demand will follow??? Logical??


well, what he meant was there was not big development (big supply) launched in May 2012, so as a result sale figures fall in May. However, even the EC (Water Colours) at Pasir Ris is not selling well, to me, it might signal that even new property launch is cooling off...

Next year when more supply comes in, then we might have a situation whereby sales figures still low becos demand falls.
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Re: Singapore Government Announced Property Cooling Measures

Postby randwick » Tue Jun 05, 2012 3:00 pm

Agreed...but still doesn't excuse the logic the interviewee is trying to put across....

ilovecck wrote:
randwick wrote:
If you don't have supply coming in, demand is not going to be there, he added, noting that sales this month are likely to follow a similar sluggish pattern because of the school holidays.


Thought it is supposed to be "demand" that will eventually generate "supply".....is property in Singapore so precious and unique that when there is supply, demand will follow??? Logical??


Actually, imo in our region (south east asia), in terms of political stabulity, crime rate, education and even cleaniness, Singapore is one of the better one, this coupled with a growing economy (increasing FDI, expartitates, foreign engineers with espertise etc), these ppl and families would need places to stay and the rich need a safer place to "park" their $$$ when times are bad, so in the long run, properties in SG are in a favourable position.

my 2cts
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue Jun 05, 2012 11:02 pm

Many people in Singapore now start to believe that Property Prices in Singapore, "the only way is up"? Guess people forget there is Gravity, or for property, there is this thing called "Affordability Factor" (can people afford to pay for the house?) which will limit the how high property prices can go.

In the 80s, the Japanese also thought property prices in Japan can only go up. I remember reading that the price to buy one house in Tokyo can be enough to buy all the houses in California in 1989...

Note: Prices were highest in Tokyo's Ginza district in 1989, with choice properties fetching over 30 million yen[6] (approximately $215,000 US dollars) per square meter ($20,000 per square foot). Prices were only marginally less in other large business districts of Tokyo. By 2004, prime "A" property in Tokyo's financial districts had slumped to less than 1 percent of its peak, and Tokyo's residential homes were less than a tenth of their peak, but still managed to be listed as the most expensive in the world until being surpassed in the late 2000s by Moscow and other cities.

After bubble burst in 1989, after 23 years, now in year 2012, prices still about 40% lower than 1989. In the 2000s, the Americans thought that property prices can only go up, they even have 100% financing for sub-prime borrowers (ie. borrowers with not enough income, or bad credit record), before property prices started falling in year 2007 and after 5 years, property prices continue to fall in year 2012...The Chinese thought property prices can only go up, many businessmen borrowed all the money they can borrow to speculate in property, when property prices started falling in Mid 2011, some of these businessmen run for their lives, becos their creditors do not just hang "pig's head" but would literally chop off their heads (debtors' heads)...

So is it true that property prices in Singapore can only go up? Pray that we are the ONLY exception if you just bought a property at current prices. In my opinion, the Next Global Financial Crisis may happen this year or next year...exactly when? Nobody knows, only God knows.

We can't prevent the Crisis from happening, but we can Prepare ourselves Financially to ensure we survive or even Thrive in the Crisis and become Richer after the Crisis. On the other hand, most people who are unprepared might see half or more of their Wealth wiped out in the coming Crisis.

actually, if you think about it, it is very stupid of me to say anything negative about Property, becos 1 of the 3 businesses I own is http://www.HousingLoanSG.com - more people buy properties, more business for me and more profits for me. The problem is I'm someone who will not say something for my own interests, I just speak "straight from my heart", problem is sometimes it is too straight and blunt.

Cheers!

Dennis Ng

Tuesday, Jun 05, 2012
The Business Times

An island for a condo

By Joyce Hooi

ONE man's Chery QQ is another man's Porsche Boxster Black Edition - if the Porsche man were shopping for a car in the United States, that is.

Comparisons of property, however, had more nuanced results. Trying to buy something with the budget of a resale HDB flat can be a geographical lesson in economic hardship.


How much a resale flat here is worth elsewhere

While it is possible to get a villa with the median price of a four-room flat, the villas tend to be in Portugal, Greece and Spain - countries on the receiving end of eurowoes. Getting a villa in Italy that was more luxury than lean-to was impossible - for now, anyway.

A five-room flat in Bukit Batok might get you a mansion in Georgia, U
S - but you would have to buy it from someone who could not afford to keep it. Georgia was ranked fourth in the foreclosure stakes in February. Then, five years after the subprime crisis, one in every 331 households in Georgia filed for foreclosure.

Bargain hunters looking for a second home with a whirlpool and hardwood floors should note that Nevada has the highest foreclosure rate. It also has the highest unemployment rate - 11.7 per cent as of April.

European property might be even cheaper in coming months. "There are few signs to boost the confidence of European householders," Knight Frank's Kate Everett-Allen noted in a report.

When private housing is considered, fantasy locations overseas start looking more upmarket. A private apartment with the median size of 743 square feet at S$966,000 from this year's first quarter buys an island in the Caribbean more than 500 times larger, with two houses thrown in.

City life, however, is more of a squeeze. In London, the same amount fetches 390 square feet - much smaller than the shoebox apartments CapitaLand CEO Liew Mun Leong called "inhuman" last week.

City-on-city, buyers for prime property here have it easier. At end-2011, a Knight Frank report found that prices of prime residential property here grew 29 per cent from 2007, compared to a 60 per cent increase in Hong Kong and a 96 per cent jump in Shanghai.

The price of everything and the value of nothing

Singapore tends to find itself on most-expensive city lists because of housing and transport. Food, however, which has the highest weightage in the consumer price index after housing, fares better.

Numeo, a website that collates data on global prices, ranked Singapore 35th out of 90 countries in its restaurant price index - above Puerto Rico and Latvia.

With a score of 65.1, eating in Singapore is about 35 per cent cheaper than in New York City with a score of 100. In comparison, the most expensive country in which to dine, Norway, has a score of 150.23.

Other things, like taxes, are not in price indices, but are important. Singapore has among the world's lowest individual income tax rates, ranging from 3.5 to 20 per cent.

Cars and gasoline in the US are a penny a pound, but its tax rate ranges from 15 to 35 per cent.

The goods and services tax (GST) rate - at 7 per cent - pales in comparison to the UK's value added tax rate of 20 per cent. In Greece, where a villa can be picked up on the cheap, the VAT is a crippling 23 per cent.

Interestingly enough, Singapore is one of the cheapest countries in which to buy the new iPad. The cheapest model went for US$526.85 at the online Apple store last month. Buyers in Europe had to pay at least US$600. For most, this will have to be consolation enough if house and horsepower remain out of reach.

This article was first published in The Business Times.
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Wed Jun 20, 2012 9:18 am

actually, from checking with several property agents, in last 1 month, it seems that the Property market is already cooling down (in terms of sales of New condos at new launches) and also in the resale market...based on Global Economic Outlook, global economies are cooling down as well. With impending supply in year 2013 and year 2014, the chance of property prices falling is higher than that of property prices continue to rise in year 2013/14.

Just my personal opinion. Anyone can hold a different opinion on this.

Cheers!

Dennis Ng

The Straits Times
Jun 19, 2012
'More property cooling steps unlikely'

A FRAGILE economic outlook and the soft property market have lessened the risk of new cooling measures, some experts say.

Bank of America Merrill Lynch economist Chua Hak Bin noted last week that despite increased speculation of a sixth round of cooling measures, they are likely to be unwarranted at this point.

Comments from National Development Minister Khaw Boon Wan about the increasing number of shoebox apartments in the market and rising suburban prices had raised concern that tougher policies might be in the offing.

But Mr Chua pointed out that the December round of cooling measures has dealt a severe blow to sentiment, with a resulting hit to transactions.

Prices of private homes dipped 0.1 per cent in the first three months of the year compared with a 0.2 per cent gain in the previous quarter, while total value of flats sold plunged 26 per cent in the same period.

Foreign buyers have also retreated. They accounted for 23 per cent of transactions in the first five months of the year - well down from 35 per cent in the same period last year.

'The luxury property market, defined as sales at more than $5 million, has practically collapsed, with the number of transactions falling by some 61 per cent (in the same period),' Mr Chua added.

Other indicators also point to a continuing slowdown. Economic growth came in at a weak 1.6 per cent in the first quarter with growth in this quarter possibly slowing further, Mr Chua noted.

Manufacturing also contracted in April in the wake of Europe's escalating debt crisis and China's slowing economy.

'In an ugly scenario where Greece exits (the euro zone) and a disorderly default occurs, Singapore's economy may contract by 1 per cent this year,' Mr Chua cautioned in his report.

'Maintaining the threat of additional property measures is a sensible policy to cool the market, but current conditions probably do not warrant another round.'

Some experts even suggest that some existing measures might be scaled back.

PropNex chief executive Mohamed Ismail said that the additional buyer's stamp duty - which imposes an extra 10 per cent tax on all foreign home purchases - should be reviewed since the high-end market has seen lacklustre sales.

Further measures, if any, could involve capping the percentage of shoebox homes - usually apartments under 500 sq ft - in a development to safeguard the interest of family units, but nothing specifically to dampen buying demand, he added.

Savills Singapore research head Alan Cheong, who expects private home prices to be stable this year, said some cooling measures could be reversed or fine-tuned by the end of this year to make them less draconian.
Cheers!

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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Thu Jun 28, 2012 11:45 am

ilovecck wrote:
David Goh wrote:
Dennis Ng wrote:Hong Kong is Financial Centre for North Asia and Singapore, the Financial centre for South East Asia. Thus, it is good to keep track of what happens in Hong Kong, including property prices, as that would have some impact on Singapore as well.

how Hong Kong has changed since 1997

AFP Relax
27 June 2012

Pretty much the entire fabric of society in Hong Kong has changed since the city and its surrounds returned to Chinese sovereignty 15 years ago, as the following figures show.

Population: 1997 - 6.5 million; Now - 7.1 million.

Expatriate (non-Chinese) population: 1997 - 594,000; Now - 450,516.

Total number of visitors: 1997 - 10.4 million; 2011 - 41.9 million.

Visitors from mainland China: 1997 - 2.36 million; 2011 - 28.1 million.

Average residential rent rate (private housing estate): 1997 - HK$20.85 per sq ft*; Now - HK$21.15 per sq ft.

Per capita GDP: 1997 - US$26,400; Now - US$34,200.

Adult ticket on Star Ferry (Central to Kowloon Point, Upper Deck): 1997 - HK$2.20; Now - HK$2.50.



strange that with tremendous increase of population and per capital GDP, rental rate remain flat... maybe due to increase of housing supply like Singapore.


Hi David,

Remember during 1997, it was the peak of the housing bubble, and then there was asian economic crisis, where prices came tumbling down, and then prices started to recover again, this culmilated to 2003 (give or take a few months) then SARS came about, prior to that HK ppl were rushing to buy properties and taking equity loan in amt more than they can handle, so when SARS hit, prices fall (as much as 50%) if I remember correctly and the properties they bought become "negative" equity (they have to "top up" the balance value of their property to the bank on top of their loan). Then properties price "recover" again all the way until now which is just slightly higher then 1997 level. SG is also in a similiar situation.

I would like to quote a senior in the forum (forgot who say liao, I thinK is Dennis himself :), pls clarify if I am wrong): "If someone "sleep" from 1997 and "woke up" in 2011, he would find that his property value has not rise at all. So not only location is impt, TIMMING is also impt when buying property"
Cheers!

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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Thu Jun 28, 2012 11:21 pm

Today is our once a month Company Lunch day where every month, we go to a different restaurant and I treat my entire team for a relaxing and sumptuous lunch for 2 hours, so that all the staff of my 3 companies have a chance to mingle (since we work in 3 separate offices)...and today is the 3rd time we went to a popular Japaneses Buffet restaurant called "Kuishinbo".

http://www.kuishinbo.com.sg/

The last 3 times we went there (their outlet at Great World City), the restaurant is fully packed during lunch and even have people waiting outside.

Today, we went in the section that can sit about 60 people, we are the only ones sitting there (13 of us), so it is as though the entire section is reserved for our "Private Function".

Is this a sign of the economy slowing down? I'm not sure, but I was sure surprised to see Kuishinbo having so many empty seats during lunch time at this outlet since this is the 3rd time we go to the same outlet...
Cheers!

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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Sat Jun 30, 2012 6:14 pm

ilovecck wrote:
Hi David,

Remember during 1997, it was the peak of the housing bubble, and then there was asian economic crisis, where prices came tumbling down, and then prices started to recover again, this culmilated to 2003 (give or take a few months) then SARS came about, prior to that HK ppl were rushing to buy properties and taking equity loan in amt more than they can handle, so when SARS hit, prices fall (as much as 50%) if I remember correctly and the properties they bought become "negative" equity (they have to "top up" the balance value of their property to the bank on top of their loan). Then properties price "recover" again all the way until now which is just slightly higher then 1997 level. SG is also in a similiar situation.

I would like to quote a senior in the forum (forgot who say liao, I thinK is Dennis himself :), pls clarify if I am wrong): "If someone "sleep" from 1997 and "woke up" in 2011, he would find that his property value has not rise at all. So not only location is impt, TIMMING is also impt when buying property"


Hi ilovecck,
yes, I was the one who said it, today I wrote another posting with more detailed information on this:

Dennis Ng wrote:
I only know that in history, these things happened (NOT fabricated or imagined by me).

1. in 1998, during the Asian Financial Crisis, property prices fell by about 40%, across ALL properties. A HDB executive maisonette sold in 1997 at the highest price recorded for a HDB resale flat then at S$780,000, price fell to about S$450,0000. In year 2007, the same HDB maisonette was finally sold by the owner (who bought in 1997) at S$550,000. These were reported in newspapers, many forget, just that I remember, that's all. Similarly, in 1997, Bishan 8 was launched at S$1,100 psf then, the highest price for a suburban condo, the price fell to about S$700 psf in 1998 and after more than 10 years, in year 2011, the price of Bishan 8 was back at S$1,100 psf.

Bishan 8 past transaction prices provided by URA:
http://www.ura.gov.sg/realEstateWeb/rea ... tSearch.do

The lesson I learned from the Asian Financial Crisis is if Location is the most important factor in Property Investing, then perhaps "Timing" is the 2nd Most Important Factor, but this is a factor many average people are NOT aware or mindful of.
Cheers!

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Re: Singapore Government Announced Property Cooling Measures

Postby ilovecck » Sat Jun 30, 2012 9:02 pm

Dennis Ng wrote:
ilovecck wrote:
Hi David,

Remember during 1997, it was the peak of the housing bubble, and then there was asian economic crisis, where prices came tumbling down, and then prices started to recover again, this culmilated to 2003 (give or take a few months) then SARS came about, prior to that HK ppl were rushing to buy properties and taking equity loan in amt more than they can handle, so when SARS hit, prices fall (as much as 50%) if I remember correctly and the properties they bought become "negative" equity (they have to "top up" the balance value of their property to the bank on top of their loan). Then properties price "recover" again all the way until now which is just slightly higher then 1997 level. SG is also in a similiar situation.

I would like to quote a senior in the forum (forgot who say liao, I thinK is Dennis himself :), pls clarify if I am wrong): "If someone "sleep" from 1997 and "woke up" in 2011, he would find that his property value has not rise at all. So not only location is impt, TIMMING is also impt when buying property"


Hi ilovecck,
yes, I was the one who said it, today I wrote another posting with more detailed information on this:

Dennis Ng wrote:
I only know that in history, these things happened (NOT fabricated or imagined by me).

1. in 1998, during the Asian Financial Crisis, property prices fell by about 40%, across ALL properties. A HDB executive maisonette sold in 1997 at the highest price recorded for a HDB resale flat then at S$780,000, price fell to about S$450,0000. In year 2007, the same HDB maisonette was finally sold by the owner (who bought in 1997) at S$550,000. These were reported in newspapers, many forget, just that I remember, that's all. Similarly, in 1997, Bishan 8 was launched at S$1,100 psf then, the highest price for a suburban condo, the price fell to about S$700 psf in 1998 and after more than 10 years, in year 2011, the price of Bishan 8 was back at S$1,100 psf.

Bishan 8 past transaction prices provided by URA:
http://www.ura.gov.sg/realEstateWeb/rea ... tSearch.do

The lesson I learned from the Asian Financial Crisis is if Location is the most important factor in Property Investing, then perhaps "Timing" is the 2nd Most Important Factor, but this is a factor many average people are NOT aware or mindful of.


wa, i was still a kid then, so when u put the price in numbers (instead of percentage), it looks clearer...and grimmer. Must be sibeh sian to see the property price u own tumble overnight. I guess this are times that really favour those with extra cash.
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue Jul 03, 2012 8:02 am

the next Global Financial Crisis is going to be first time in 80 years that ALL G4 economies slow down, namely U.S., Europe, China and Japan. Thus, likely to be longer than year 2008, might stretch 2013/14...

Anyone buying a property for INVESTMENT right now should ask themselves: If interest rates go up from current 1% to 3%, can they afford to pay instalment? If rental rates drop by 30%, what would revised rental be? If property not tenanted out for 6 months, can they pay instalments?

How much is the upside potential buying at current prices? How much is the downside risk buying at current prices? Is the upside more than downside?

If buy for home stay, the main thing is to ensure you can comfortably afford the property, no matter what happens. Make sure instalment is less than 35% of income and you have enough Cash/CPF set aside to pay for at least 6 months of instalments in case you lose your income
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Fri Jul 06, 2012 11:22 am

My comments: I already mentioned before property prices likely to be stable or increase slightly in year 2012. So this latest news about resilience of Singapore Property Market NOW is expected and not a surprise to me.

Cheers!

Dennis Ng


Jul 6, 2012
S'pore property market shows resilience
Rents and resale prices edging up despite global economic uncertainty

By Esther Teo

MORE evidence has emerged of the ongoing strength of the local property market, with both rents and resale prices defying global economic uncertainty.


Dennis Ng wrote:2 Jun 2012

Property prices likely to hold this year. Huge supply only start to arrive in year 2013 and year 2014, and if this coupled with the Next Global Financial Crisis, likely to lead to Drop in demand and over-supply


In a new report, property consultancy DTZ Research said rents of non-landed suburban apartments rose by 1.9 per cent in the three months to June, after edging up 0.6 per cent in the first three months of the year.

Prime condo rents also enjoyed a boost, inching up 1.5 per cent in the same period.

DTZ said that this was largely the result of a seasonal increase in leasing activity in April and May.

Expatriates relocating to Singapore after summer tend to have their contracts inked during this period.

Despite economic uncertainties hurting expat relocations, rental demand from top-end expats with budgets for luxury apartments also continued to support the high-end market despite the drop-off in relocations now.

On the other hand, cost-conscious mid-tier foreign professionals, with no housing allowance as part of their relocation package, continue to support rental demand for apartments in the range of $3,000 to $7,000 a month, said Ms Margaret Thean, DTZ's executive director of residential.

On the resale front, prices of private homes also gathered pace with suburban landed homes leading the pack. They rose 1.2 per cent to 2 per cent in the quarter, more than the 1 per cent rise for landed homes in the prime districts of 9, 10 and 11.

Resales of non-landed homes also lodged higher prices as buyers in search of better value were diverted to resale properties in the light of benchmark prices set for new suburban launches.

Freehold apartments in the prime districts of 9, 10 and 11 gained 0.5 per cent, reversing the 0.7 per cent fall the quarter before, while suburban leasehold condo prices increased 0.6 per cent, up from 0.3 per cent previously.

Ms Chua Chor Hoon, DTZ's head of Asia-Pacific research, said buying demand for homes is expected to remain healthy owing to the low interest rate and buoyant employment market.

'However, the strong pipeline of developments will intensify competition for purchasers and tenants, and limit price increases particularly in the face of slower economic growth,' she added.

Savills Singapore research head Alan Cheong noted that a record 14,272 homes were launched in the first five months of the year.

Some of the major new launches in the second quarter include Eight Riversuites in Whampoa East, and Flo Residence and River Isles, both in Punggol.

Savills' analysis showed that the median price of non-landed resale homes rose 4 per cent to $1,031 per sq ft (psf) in the second quarter.

Median prices of new homes, however, suffered a slight 0.7 per cent fall to $1,144 psf.

'The price correction for new homes was expected as completion among new developments had intensified post-additional buyer's stamp duty and recent launches saw some initial price rebates and loyalty discounts,' Mr Cheong added.

Still, as there is still a considerable price gap between resale and new homes, resale prices are poised to rise further as they play catch-up with the recent increase in new sale prices.

'Although the euro-zone crisis is expected to generate a fair deal of turbulence, the market has put its faith in the increasing population and the view that asset prices here are bulletproof.'

Mr Cheong said: 'Developers are expected to fast-track their new project launches ahead of any further deterioration in global economic fundamentals and the seventh month Hungry Ghost Festival.'

Mr Joseph Heah, 31, a permanent resident who has rented a unit in Jurong since November last year, said rents have been gradually rising since he moved to Singapore about three years ago.

'Every time the rental contract is renewed, the landlords ask for a higher rent... Even HDB flats are not cheap these days,' he added.

esthert@sph.com.sg

Dennis Ng wrote:2 Jun 2012 Property prices likely to hold this year. Huge supply only start to arrive in year 2013 and year 2014, and if this coupled with the Next Global Financial Crisis, likely to lead to Drop in demand and over-supply.

For a typical property launch, it is NOT unusual to sell 200 to 300 units on first day alone, so 91 units of Water Colours (new EC at Pasir Ris) sold on first day is actually a low figure. This might be a signal that even sale of New condo projects are cooling off...

In the last 6 months, the resale condo market is very, very quiet, not a healthy signal.

Experienced Property Investors that I know stopped buying residential properties since Jan 2011...and also stopped buying commercial Properties since Jun 2011...

Last few months, one can see from URA information that most of the new condos are bought by people with HDB flat address (or predomininatly middle class), and many are First time Investors, with no experience at all.

Guess many of the latent demand (those who want to buy and can afford to buy) have already bought. By year 2013, when we have more supply coming on, the situation might change to Supply more than Demand...

The Global Financial Crisis is coming, probably this year or latest in year 2013, when that happened, most of the middle class would have already had their Cash fully invested, and when Opportunity present themselves in the form of Lower Prices for Stocks and Properties, they can only see and cannot "touch", becos they don't have much money left to invest.

On the other hand, experienced investors including myself are now Cash Rich, (72% of my Wealth now I hold in Cash) and we're patiently waiting for the Great Opportunity in a Crisis.

A Crisis is a Rare Opportunity? Only true for people who have Money to invest during a Crisis. Most people would be cash-tight in a Crisis.

History repeats itself but most people just do NOT learn from history
Cheers!

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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Wed Jul 11, 2012 11:28 pm

this measure will also have some "cooling" effect on demand for HDB resale flats:

Stricter rules for PRs to sublet HDB flats
By Joanne Chan | Posted: 11 July 2012 1013 hrs

SINGAPORE: Singapore permanent residents (PRs) who want to rent out their public flats will now face stricter subletting rules.

The Housing and Development Board (HDB) on Wednesday announced several revisions to the rules, which take immediate effect. Singapore citizen homeowners will not be affected by the changes.

Among the changes for PR flat owners is a shorter rental period of one year, subject to discretionary extensions.

When the one-year period expires, HDB said application for any extension will be assessed on a case-by-case basis, adding that approval will be granted only if there are extenuating reasons.

Under the old rules, all flat owners -- both Singaporeans and PRs -- who meet the minimum occupation period could apply to rent out their flats for a period of three years.

They could then ask for an extension, with no cap on the number of renewals, or the total period of subletting.

However, PRs can now only rent out their flats for a total period not exceeding five years.

So what do the changes mean for PR homeowners who currently rent out their flats? HDB said that those who had secured approval under the old rules will be allowed to see out the three-year agreement.

But once that expires, the homeowner will then be subjected to the new rules. This means that any requests for extensions will be given on a case-by-case basis.

HDB said the revised rule is to reinforce the policy intent of providing HDB flats as homes to the PRs, and to deter those who are buying the flats for rental yield or investment purposes.

It stressed that while it allows PR owners who have met the minimum occupation period to sublet their flats, the subletting should be on a temporary basis.

If the PR families no longer need the flats for their own occupation, they should sell the flat instead of subletting them.

HDB said that as of April this year, 49,190 flats are owned by Singapore PRs. Of this number, 2,142 owners currently sublet their flats, making up just five per cent of the total approved sublet cases.

However, property firm ERA said that based on its figures, more PRs are renting out their HDB flats. It said this trend might have prompted the revision of the rules.

Key Executive Officer of ERA, Eugene Lim, said the new rules are "just to put a check on the potential numbers of PR households that would actually consider renting out their flats".

"So it's basically to send a message that if you are a PR, and you are buying an HDB flat, it should be for owner occupation and not with the intention of investment."

He added: "If you are a PR, why are you renting out your flat? You are here to stay, to work. If you have ability to buy another house, then you actually don't need a public flat and you should not be owning one."

Another market watcher feels that the changes will better fit the housing needs of PRs.

Lee Sze Teck, senior manager of Research & Consultancy, Dennis Wee Group, said: "The needs of Singapore PRs may change more frequently than Singapore citizens. After all, citizens live here, whereas SPRs may only be here for work-related purposes. And if their reasons change, one year is good enough for them."

Responding to queries from Channel NewsAsia, chairperson of the Government Parliamentary Committee for National Development, Lee Bee Wah, said: "PRs have to appreciate that Singaporeans (have) worked over the years, from the time of their forefathers, to build up this country to what it is today."

She added that "as a PR, you just walk in at some stage in your life and you should therefore not be entitled to the same privileges or benefits that Singapore-born citizens enjoy."

Dr Lee said she welcomes the tighter regulations, adding that "this will also resolve some of the concerns residents have pertaining to an influx of strangers and foreigners in their neighbourhoods as a result of their neighbours subletting their flats freely."

The latest changes come two days after the Manpower Ministry tightened the criteria for work pass holders to sponsor dependents. This is in line with the overall direction to moderate the growth of Singapore's non-resident population.

HDB has also stepped up its enforcement against illegal subletting.

Last year, the authority carried out 7,000 inspections and took action against 56 flat owners.

Of these, 18 had their flats taken back for infringing rules.

Reasons included renting out their flat without fulfilling the minimum occupation period and using the flat as a lodging house for tourists.

- CNA/ck/al
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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Re: Singapore Government Announced Property Cooling Measures

Postby candy_chia » Thu Jul 12, 2012 9:17 am

Glad that our government has finally sealed this loophole, my ex-neighbour who is a PR bought their 3-room flat under the old rule, sublet their flat after staying for 1 year (minimum occupation period is only 1 year if you finance the flat with bank loan), for $2,800 monthly rent so as to offset their rental in a private apartment.

Dennis Ng wrote:this measure will also have some "cooling" effect on demand for HDB resale flats:

Stricter rules for PRs to sublet HDB flats
By Joanne Chan | Posted: 11 July 2012 1013 hrs

SINGAPORE: Singapore permanent residents (PRs) who want to rent out their public flats will now face stricter subletting rules.

The Housing and Development Board (HDB) on Wednesday announced several revisions to the rules, which take immediate effect.

Among the changes for PR flat owners is a shorter rental period of one year, subject to discretionary extensions.

When the one-year period expires, HDB said application for any extension will be assessed on a case-by-case basis, adding that approval will be granted only if there are extenuating reasons.

However, PRs can now only rent out their flats for a total period not exceeding five years.

Key Executive Officer of ERA, Eugene Lim, said the new rules are "just to put a check on the potential numbers of PR households that would actually consider renting out their flats".

"So it's basically to send a message that if you are a PR, and you are buying an HDB flat, it should be for owner occupation and not with the intention of investment."

He added: "If you are a PR, why are you renting out your flat? You are here to stay, to work. If you have ability to buy another house, then you actually don't need a public flat and you should not be owning one."
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Re: Singapore Government Announced Property Cooling Measures

Postby lootster » Thu Jul 12, 2012 8:59 pm

We have see a trend that the government is slowly pleasing the citizen through their actions..... those low percentage of wining votes they got in the last election prove something
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