Singapore Government Announced Property Cooling Measures

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Re: Singapore Government Announced Property Cooling Measures

Postby candy_chia » Thu May 03, 2012 3:19 pm

My previous Boon Lay 5-room flat (built in 1995) is 132 sq m, compared to 110 sq m for a typical 5-room flat.

Even, my current 5-room ghim moh flat which is already 35 years old (built in 1977) is 117 sqm.

Dennis Ng wrote:sure, I believe what Minister said that HDB has not shrunk flat sizes. However, I checked and discovered that my mum's 4-room flat (bought in 1985) floor area is 110 sm and nowadays 5 room flat floor area is 110 sm. :D My 5-room flat (built in 1985, which I purchased in 1995) is 130 sm, plus access area is 136 sm (I bought over the access area for S$2,000, if I didn't remember wrongly).

May 3, 2012
HDB hasn't shrunk flat sizes, says Khaw

A four-room flat, for instance, has remained at 90 sq m since the mid-90s, HDB figures show.

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Re: Singapore Government Announced Property Cooling Measures

Postby meowweom » Fri May 04, 2012 10:10 am

The Minister Khaw and HDB CEO are not speaking the same language. That may show that Minister Khaw never stay in a HDB flat himself BEFORE. (ahahahaha...) :lol: :lol: :lol:
Who was he trying to convince? the younger generations (age 20s ppl)? :roll: :roll: :roll:

Fm Today newspaper, last Nov 2011 >
According to the CEO of HDB Cheong Koon Hean (yes, HDB has a CEO), she says that smaller flats are not affecting the quality of living because families are smaller too. As you all know, sizes of HDB flats have been shrinking over the past few decades due to increasing prices and land scarcity.


Though she does have a point, it's not exactly the wisest choice of words. Quality of living is actually dependent on many more factors than simply just family size. Changes in lifestyle and cost are two big factors too.


Families may have shrunk but the reality is that it takes the income of two to pay off the mortgage of that flat. More and more of their income is used to service the housing loans. Then one has to take into account renovation costs, utility costs, transport costs, food costs, taking care of the in-laws and so on.


With such high costs to bear and less space to live, couples end up working more and having less children, and thus the cycle continues. We shudder to think how small flats will be in 2021. Let's hope we don't end up like Hong Kong or Japan or like those chickens in the pic.
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Re: Singapore Government Announced Property Cooling Measures

Postby meowweom » Fri May 04, 2012 10:10 am

The Minister Khaw and HDB CEO are not speaking the same language. That may show that Minister Khaw never stay in a HDB flat himself BEFORE. (ahahahaha...) :lol: :lol: :lol:
Who was he trying to convince? the younger generations (age 20s ppl)? :roll: :roll: :roll:

Fm Today newspaper, last Nov 2011 >
According to the CEO of HDB Cheong Koon Hean (yes, HDB has a CEO), she says that smaller flats are not affecting the quality of living because families are smaller too. As you all know, sizes of HDB flats have been shrinking over the past few decades due to increasing prices and land scarcity.


Though she does have a point, it's not exactly the wisest choice of words. Quality of living is actually dependent on many more factors than simply just family size. Changes in lifestyle and cost are two big factors too.


Families may have shrunk but the reality is that it takes the income of two to pay off the mortgage of that flat. More and more of their income is used to service the housing loans. Then one has to take into account renovation costs, utility costs, transport costs, food costs, taking care of the in-laws and so on.


With such high costs to bear and less space to live, couples end up working more and having less children, and thus the cycle continues. We shudder to think how small flats will be in 2021. Let's hope we don't end up like Hong Kong or Japan or like those chickens in the pic.
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Re: Singapore Government Announced Property Cooling Measures

Postby ilovecck » Fri May 04, 2012 11:19 am

meowweom wrote:The Minister Khaw and HDB CEO are not speaking the same language. That may show that Minister Khaw never stay in a HDB flat himself BEFORE. (ahahahaha...) :lol: :lol: :lol:
Who was he trying to convince? the younger generations (age 20s ppl)? :roll: :roll: :roll:

Fm Today newspaper, last Nov 2011 >
According to the CEO of HDB Cheong Koon Hean (yes, HDB has a CEO), she says that smaller flats are not affecting the quality of living because families are smaller too. As you all know, sizes of HDB flats have been shrinking over the past few decades due to increasing prices and land scarcity.


Though she does have a point, it's not exactly the wisest choice of words. Quality of living is actually dependent on many more factors than simply just family size. Changes in lifestyle and cost are two big factors too.


Families may have shrunk but the reality is that it takes the income of two to pay off the mortgage of that flat. More and more of their income is used to service the housing loans. Then one has to take into account renovation costs, utility costs, transport costs, food costs, taking care of the in-laws and so on.


With such high costs to bear and less space to live, couples end up working more and having less children, and thus the cycle continues. We shudder to think how small flats will be in 2021. Let's hope we don't end up like Hong Kong or Japan or like those chickens in the pic.


yah I agree,

1) house getting smaller, but
2)prices increasing much more than inflation (thats the point of investing in property :)),
3) wages cant keep up but ppl living longer and getting married older

so most ppl in their 30s actually have to support their parents (living, medical expenses etc), their family and their mortgage loan
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Fri May 04, 2012 1:38 pm

seems like different location also different size?

Candy's 5-room flat in Boon Lay (built in 1995) was 132 sm while 5-room Ghim Moh flat (built in 1977) is 117 sqm.

My 5-room is a Room Model A built in 1985 (Jalan Besar) built in 130 sm.

Cheers!

Dennis Ng

candy_chia wrote:My previous Boon Lay 5-room flat (built in 1995) is 132 sq m, compared to 110 sq m for a typical 5-room flat.

Even, my current 5-room ghim moh flat which is already 35 years old (built in 1977) is 117 sqm.

Dennis Ng wrote:sure, I believe what Minister said that HDB has not shrunk flat sizes. However, I checked and discovered that my mum's 4-room flat (bought in 1985) floor area is 110 sm and nowadays 5 room flat floor area is 110 sm. :D My 5-room flat (built in 1985, which I purchased in 1995) is 130 sm, plus access area is 136 sm (I bought over the access area for S$2,000, if I didn't remember wrongly).

May 3, 2012
HDB hasn't shrunk flat sizes, says Khaw

A four-room flat, for instance, has remained at 90 sq m since the mid-90s, HDB figures show.

Cheers!

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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 Dennis Ng » Tue May 08, 2012 9:26 am

Information is neutral, interpretation is NOT.

My interpretation is "property sales figure has dropped". 1 week 320 sold, means 1 month about 1,300 units, or 3 months about 3,900. Compared to selling over 6,000 condos in first 3 months (Jan to Mar 2012), isn't it that sales figure has dropped rather than interpret it as market still very hot?

Another unhealthy sign is that over 80% of the property sales is from 1 or 2 specific project, that is unhealthy to me, as a healthy property market will see sales in different projects, in different areas in Singapore, both New Launches and Resale Market. In last few months, the resale market for condos is very, very quiet. What does it signal?

Please note that I'm just sharing with you my opinion, you can definitely hold a different view and opinion.

Cheers!

Dennis Ng

The Straits Times
May 8, 2012
Over 320 new private homes sold in a week
Low interest rates and new project launches keeping market healthy

By Esther Teo

NEW private home sales continued their strong run, with at least 325 homes snapped up over the past week as rock bottom interest rates and new project launches kept propping up the market.

A report by UBS Investment Research said that more than 200 units at 99-year leasehold Eight Riversuites in Whampoa East were sold during a private preview over the weekend.

The average selling price was $1,400 per sq ft (psf), after buyers were given a 5 per cent early-bird discount. This is higher than Allgreen's 999-year leasehold Riviera 38, previewed in October last year, which is priced at about $1,100 psf on average. Allgreen's project, however, is farther from Boon Keng MRT station.

Eight Riversuites' one-bedroom units of about 450 sq ft were priced at about $600,000 while the two-bedroom units of about 700 sq ft cost about $900,000.

They made up about 60 per cent of the 862-unit project and were the most popular among buyers, the report added.

'Agents were keen to make comparisons with freehold City Square Residences, which is integrated with a retail mall and located one MRT station closer to the city, where small-format units are enjoying strong rental demand and a heftier price tag of $1,600 to $1,700 psf,' it said.

Far East Organization sold another 67 units at 338-unit Seahill in West Coast Link, bringing total sales to 185 units since the 99-year leasehold project previewed at the end of last month. The average price of the units sold was $1,329 psf.

The developer also sold 34 more units in its other projects like Hillsta in Choa Chu Kang, euHabitat in Eunos and Silversea along the East Coast.

Over at 679-unit Ripple Bay in Pasir Ris, MCL Land said that it sold another 27 homes, bringing total sales to 532 units at an average of $870 psf.

Buyers have snapped up new private homes at such a blistering pace that the 6,682 homes sold in the first three months of the year set a new quarterly record. Many of these are tiny shoebox apartments of 500 sq ft and less.

PropNex CEO Mohamed Ismail said the sustained sales momentum shows the appetite for new projects in good locations that are priced reasonably remains strong. He expects demand to remain healthy for the next one to two quarters.

esthert@sph.com.sg
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Re: Singapore Government Announced Property Cooling Measures

Postby racoon12 » Tue May 08, 2012 5:54 pm

Hi Dennis

Would that also means likely the [url]possibility[/url]that the properties stock will be falling as well?

Many thanks
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue May 08, 2012 10:05 pm

racoon12 wrote:Hi Dennis

Would that also means likely the [url]possibility[/url]that the properties stock will be falling as well?

Many thanks


Property stocks have been falling for more than 1 year. If you don't believe, check share prices of property stocks in Jan 2011 compared to now. (Most about 10% to 30% lower).

But if you look at 5 year charts of stocks, then probably you would have a better idea how much a stock can fall during a Stock Market Bear Market.
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Fri May 11, 2012 12:39 pm

Growing Gap between Rich and the Middle Class in Singapore. How to bridge this gap?

My simple plan is to help as many Middle Class to become Rich, this will help narrow the gap between the Middle Class and the Rich.

Then the newly rich (formerly Middle class) will reach out to help the Poor, to help them to lift themselves out of poverty. Join my seminar if you want to join in this Wealth Revolution.

Cheers!

Dennis Ng

Can Singaporeans afford luxury homes?
By iProperty | Property Blog – Tue, May 8, 2012

It takes the average Singapore resident more than half his lifetime to afford a luxury home in his country.

By Sheena Chua

43 years. That is the number of years that an average Singapore resident needs to pay for a luxury home in the city-state.


The figure was revealed in a Bloomberg report about the growing disparity between incomes and housing prices in emerging markets. The report, which compared national income averages against the prices of homes in prime locations, concluded that Mumbai was the world's least affordable home market. Singapore placed last among the 14 countries ranked, behind other Asian cities like Jakarta (61.7 years), Bangkok (67) and Hong Kong (96.4).

In Singapore, a typical piece of luxury property spanning 100 sq m (about 1,076 sq ft) costs about US$2.71 million (S$3.38 million)—roughly 43 times the nation's average annual income. This means that at an average price of S$3,149 per sq ft, a luxury home here would require an average resident with a typical per-capita purchasing power of US$59,900 (S$74,679) more than half his life to pay off.

Calculations were based on property consultancy firm Knight Frank's housing index, which compiled information from 63 different housing markets, as well as the US Central Intelligence Agency (CIA) World Factbook's gross domestic product (GDP) per capita estimates for 2011.

The GDP per capita estimates are based on the per capita purchasing power parity of each country, which compares how much money is needed in each country to buy similar baskets of goods and services.

CIA World Factbook estimates put Singapore's 2011 per capita purchasing power at around US$59,900 (S$74,679); while Knight Frank's Wealth Report 2011, released early April, revealed that prices of Singapore's luxury home segment has reached US$27,100 per sq m (S$3,149 per sq ft) as of last year.

In other words, a prime location property in Singapore costs about 43 times the city-state's average annual income. Based on the average Singaporean life expectancy of 81.3 years (based on World Bank statistics), the average Singapore resident could be paying for his luxury home for more than half his life. This is, of course, not taking into account other costs of living like utility bills and daily expenses.

Speaking to Bloomberg of the findings, head of residential research at Knight Frank Liam Bailey noted that it is not unusual for developing countries to experience such disparities in wealth. He said, "There are big differences in wealth levels in emerging markets compared to the developed world, which is part of the course for economic development. In the first phase of growth some people make big fortunes, it takes time for this to trickle down as the middle class develop and generate their own wealth."

While Singapore may not be the anywhere near the ten most expensive luxury home segments in the world, we could be well on our way there. The Wealth Report 2011, compiled by Citi Private Bank and Knight Frank, revealed that the country's luxury housing segment charted an 18% price growth—the third largest hike of the year.

However, the fact remains that over 80% of the Singaporean population still live in public housing. Most homebuyers have to take out housing loans to fund their purchases, and tolerance for surging home prices—even those not in the luxury home segment—are thinning.

These observations suggest a growing income gap between Singapore's middle-class and ultra-rich, and that Singapore still has a long way to go before the majority of its residents can splurge on luxury homes.
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue May 15, 2012 9:53 am

Middle Class in Singapore are those that earn a household income of S$2,000 to S$10,0000 (income ceiling for buying HDB flats).

Benchmark Your Household Income 2012 at Salary.sg – Your Salary in Singapore
at this link you can key in your household income and know "where" you stand:

http://www.salary.sg/2012/benchmark-you ... come-2012/


As reported in the news, median monthly household income from work has increased by 11% from S$6,342 in 2010 to S$7,037 in 2011. This is based on recent Household Income data released by the Department of Statistics.

What’s not reported in the news is that the average household income in 2011 is $9,618. Simple mathematical reasoning tells us that this number is skewed upwards by the higher earning households.

Do you also know that the average household living in 5-room and executive HDB flats makes $10,160 a month? And that those living in condos and private apartments earn an average income of $18,060 a month? Landed property dwellers make the most – at $24,039 per month on average.

As always, Salary.sg has updated our benchmarking tool to use the latest data points (T13). Simply enter your monthly household income (including employer’s CPF contributions) to see how well your family is doing:

http://www.singstat.gov.sg/pubn/papers/ ... pp-s18.pdf

Profile of Households Remained Relatively Stable
1 The number of resident households1 was relatively unchanged at 1.15 million in 2011 compared to 2010, with average household size remaining at 3.5 persons since 2006. Similarly, the distribution of resident households by type of dwelling was relatively stable with HDB 4-room flats remaining as the most common type of dwelling for resident households in 2011. The proportion of resident households with at least one working person (i.e. resident employed households) increased from 90 per cent in 2010 to 91 per cent in 2011.


Largest Increase in Household Income Per Household Member among Lower Income Households
2 Among resident employed households2, median monthly household income3 per household member rose from $1,850 in 2010 to $1,990 in 2011, an increase of 7.9 per cent in nominal terms, or 2.7 per cent in real4 terms. The first decile saw the highest percentage growth in average monthly household income per member of 11 per cent and 5.8 per cent in nominal and real terms respectively.

3 On a total household income basis, median monthly household income from work increased from $6,340 in 2010 to $7,040 in 2011, an 11 per cent growth in nominal terms, or 5.6 per cent in real terms. The tenth decile saw the highest percentage growth in average monthly household income of 14 per cent in nominal terms, or 7.9 per cent in real terms.


4 Cumulatively between 2001 and 2011, the median monthly household income from work per household member of resident employed households rose by 20 per cent in real terms, with most of the gains coming from 2006 to 2011. On a total household income basis, the median monthly household income from work rose by 22 per cent in real terms between 2001 and 2011.
Cheers!

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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Fri May 25, 2012 10:26 pm

350 sf for 1 person to live is ok lah, but it is a little too squeezy for a family of 4...

Of course, back in the old days, before I was born, my parents stayed with their 5 children (7 persons) in a rented space in an old wooden shophouse in Chinatown of less than 300 sf. But that was in the 1960s...they then moved to a 1 bed-room HDB rental flat when I was born in 1969.

Cheers!

Dennis Ng

Bloomberg
CapitaLand CEO Calls Shoebox Apartments Inhuman: Southeast Asia
By Pooja Thakur and Haslinda Amin - May 24, 2012

Singapore should curb the increasing trend of so-called shoebox apartments because they are “almost inhuman,” CapitaLand Ltd. (CAPL) Chief Executive Officer Liew Mun Leong said.

The government last week said it’s concerned that shoebox apartments are mushrooming in the city-state as private home sales surged to a three-year high with record purchases of units that are smaller than 50 square meters (538 square feet).

“I am dead against shoebox developments,” Liew said in an interview at the downtown Singapore headquarters of Southeast Asia’s biggest developer. “The government should intervene. Singapore’s land is very precious and you are wasting your scarce resources” by building shoebox apartments.

The island-state’s population growth, scarce land and surging property values have prompted developers to shrink apartment space. Home prices surged to a record at the end of 2011 in a city that’s about half the size of Los Angeles.

The government may introduce measures to regulate the sale of shoebox apartments after a record number were sold in the first quarter, Khaw Boon Wan, Singapore’s National Development minister, said in Parliament on May 14.

Developers sold 1,764 shoebox units in the first quarter, or 27 percent of all home sales, the most since the Urban Redevelopment Authority began collating the data in 2007. Apartments that cost less than S$750,000 ($587,000) made up 42 percent of new home sales in the first quarter, up from 25 percent in the previous three months, the data showed.
‘Almost Inhuman’

“It’s almost inhuman, it’s not good for the welfare of the family to feel that constrained,” said Liew, 65, who grew up in a one-bedroom apartment with nine people and often slept along the corridor.

At CapitaLand’s latest project, the 509-unit apartment in a central Singapore suburb designed by architect Moshe Safdie, the smallest homes are one-bedroom units measuring 710 square feet. Liew said Singapore should impose a minimum size for homes.

Singapore developers built smaller apartments in the first quarter, with median size of homes shrinking 24 percent to 667 square feet, according to CBRE Group Inc. Median prices for the period slid 18 percent to S$786,340, it said.

The government has been attempting to rein in prices since 2009 when it barred interest-only loans for some projects and stopped allowing developers to absorb interest payments for apartments still being built. In December, it imposed additional taxes of as much as 10 percent on home purchases.
Shares Climb

CapitaLand climbed 1.2 percent to S$2.46 at the close in Singapore, the third-best performer on the city’s Straits Times Index. (FSSTI) The stock has risen 12 percent since the start of the year, twice the 5 percent increase in the benchmark gauge.

Government controls haven’t slowed housing transactions in Singapore, driven by suburban projects, Liew said. He reiterated the company’s aim to sell as many as 1,000 homes annually over the next two to three years.

“We don’t think we have an issue with” the target, he said. “If you’re aiming for the high-end, central core areas like Orchard Road, the numbers will not be so optimistic. If you’re selling to the mass market, then the demand is still there.”

The next set of curbs may be targeted at the smaller apartments, said Wilson Liew, Singapore-based analyst at Maybank Kim Eng Holdings Ltd.

“The Singapore government will first address the ‘shoebox unit’ phenomenon,” he said. “More measures are on the way.”
Limiting Shoebox Homes

Singapore may limit the number of shoebox units to 10 percent of each development, especially for projects in the suburbs, he said. The government could also set the minimum size for apartments at 50 square meters to ensure the quality of life isn’t compromised, the analyst said.

The trend of shoebox units may not be unique to the city- state, said Pratik Burman Ray, an analyst at HSBC Holdings Plc in Singapore. Philippine developers have built homes smaller than 20 square meters, while those in Thailand and Indonesia are less than 35 square meters, he said. In Hong Kong, apartments smaller than 500 square feet house two or three people, he said.

“I wonder if this phenomenon is Singapore specific or a shift in buyer preference, and then the question is should it be regulated at all,” Ray said. “What’s needed is greater transparency to protect home buyers, which is perhaps more critical.”

Developers will be required to provide more information including floor plans that reflect the actual size of the apartments, Khaw said. Model homes should also depict the units “accurately,” he said, adding that the changes will be introduced in the second half when the law is passed.

CapitaLand is lobbying against the shoebox units, said Liew, citing a recent visit to a 400-square-foot unit in Hong Kong.

“I used to joke that when I sat on the sofa, I don’t need the remote control to switch on the TV, I use my toes,” he said. “If you build 200 square feet, 300 square feet for a family of two or three, you might as well stay in a box. There needs to be some degree of comfort level.”

To contact the reporter on this story: Pooja Thakur in Singapore at pthakur@bloomberg.net; Haslinda Amin in Singapore at hamin1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Sat Jun 02, 2012 10:59 am

For a typical property launch, it is NOT unusual to sell 200 to 300 units on first day alone, so 91 units is actually a low figure. This might be a signal that even sale of New condo projects are cooling off...

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 people just do NOT learn from history.

I've done all that I can to share what the Rich do and what I learned from the Rich, but many still prefer to listen and follow the majority. Statistics shows that majority lose money in investing, so if you follow the majority, guess what outcome likely you will get? Only minority make money in investing. I would only learn and follow the Minority who make money in investing, and so far, it works and I just get Richer and Richer, learning and following those who make money in investing.

Cheers!

Dennis Ng

The Straits Times
Jun 2, 2012
Invest
91 Pasir Ris EC units sold on first day of booking

MORE than 90 units have been sold at executive condominium (EC) Watercolours on its first day of booking.

The 99-year leasehold project in Pasir Ris opened for booking at noon yesterday and will close at 9pm today.

The 416-unit exec condo - the latest of a number of new projects in the area - will be built at the junction of Pasir Ris Drive 3 and Pasir Ris Link.

Huge Development - a consortium made up of Ho Lee Group, UE E&C, GPS Alliance Development and Investment, and Evia Real Estate - is behind the project.

Mr Jeffrey Hong, chief executive of GPS Alliance, told The Straits Times that 91 units had been sold by 8pm yesterday.

Buyers - an even mix of first- and second-timers - snapped up a range of units, although the three-bedders proved more popular.

Per sq ft (psf) prices at Watercolours range from $570 to $750, and work out to an average of $706 psf.

Mr Hong said two-bedders start from $530,000, three-bedders from $639,000, four-bedders from $885,000, and penthouses from $1.07 million.

Dual-key units, which allow for multi-generational living, are also available.

The exec condo was launched to much hype on May 1 and was more than two times oversubscribed when e-applications ended a week later.

Having secured an e-application, a would-be home buyer is eligible to ballot for a unit.

Property consultants had earlier expected strong interest in the project, which offered similar pricing to a public housing project near Pasir Ris MRT station.

SLP International research head Nicholas Mak said that yesterday's sales figure is lower than expected, and that the developers may have to review their marketing strategy.

'It could mean that this exec condo is facing stiff competition from others that have been launched... some buyers might also be waiting for new ones, which could be in a location they prefer,' he said.

AMANDA TAN
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue Jun 05, 2012 8:37 am

haha, we (our forum) is faster than Straits Times again. Now Straits Times also have an article saying that Property Market show signs of cooling off, 3 days after I said this in this forum.

Frankly, if you read our forum, it is better than reading the money page of Straits Times, as we will feature selected news from many sources, including bloomberg, CNN, CNBC, reuters, and some other non Main Stream media and blogs as well.

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
.


The Straits Times
Jun 5, 2012
Property market shows signs of slowing - Two recent launches
Sales figures for last month are likely to be down significantly from April's

By Amanda Tan

THE property market is taking a breather as home buyers grapple with looming economic uncertainties and possible cooling measures.

New private home sales figures for last month will be out only next week but they are likely to be significantly down from April's numbers, consultants and agents have noted.

Sales for April had been the strongest in nearly three years, with 2,487 units sold, 4 per cent up from March. Including executive condominiums, 2,660 units were snapped up. April sales had been propped up by shoebox apartments, consultants had said.

It is a different picture in the last few weeks, agents said, with activity slowing.

Oxley Holdings' Vibes@Upper Serangoon sold a total of seven units over the last two weekends. The units available include one-bedders, one-plus-study and two-bedroom penthouses.

To date, it has sold 46 out of 60 units at the project. Units there are priced between $1,100 per sq ft (psf) and $1,300 psf on average.

River Isles in Punggol, for instance, was launched over the weekend, notching up respectable sales numbers, but units have moved less quickly than for some earlier projects, said consultants.

Qingjian Realty, the condo's developer, launched 300 units and sold 150 over the weekend. It has 610 units in total.

The homes are priced at an average of $830 psf to $850 psf.

Between May 28 and June 3, Far East Organization sold 22 units in total across all its properties, including SeaHill along West Coast Link and Hillsta in Choa Chu Kang.

Executive condominium Watercolours surprised consultants with a sluggish take-up rate.

The project at Pasir Ris had gathered much hype after it was two times oversubscribed when it opened for e-application.

But according to industry sources, only up to half of the 416 units there have been sold.

Property consultant Alan Cheong attributed the slowdown to the lack of new launches recently.

The month-long school holidays are also in full swing, leading to the drop in sales, he said.

Mr Cheong, research head at Savills Singapore, said: 'May would not be a bumper month because some of the larger projects, such as Riversails near Punggol, did not hit the market.

'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.

R'ST Research director Ong Kah Seng said that risk-averse buyers could be cautious in the light of possible cooling measures, especially those who are eyeing shoebox units.

Of late, there has been much talk about further cooling measures aimed at these unit types, defined as measuring some 500 sq ft or smaller. National Development Minister Khaw Boon Wan has said that he is monitoring this sector closely.

'Those who already made up their minds would have already bought units in the previous months... this leaves only the cautious ones,' Mr Ong said.

Indeed, property agents The Straits Times interviewed said they are getting fewer inquiries or are seeing choosier clients.

For instance, Mr James Lee, property agent and director of James Lee Realty, said that he has been getting fewer calls in the last month.

'With more supply of units coming up, buyers have more choices,' he said.

He expects the slowdown to continue until the middle of the month.

But given the variety of projects in the market now, DTZ property agent Benny Lim said that cautious home buyers now take their time to view properties.

He said that while some people have put their purchases on hold, others are still snapping up homes in suburban areas.

'Investors who want to buy may wait and see how the market turns out first,' he said.

On the other hand, 'most buyers in suburban areas are owner-occupiers, so they are more willing to go ahead', he added.

tamanda@sph.com.sg
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Re: Singapore Government Announced Property Cooling Measures

Postby randwick » Tue Jun 05, 2012 12:19 pm

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??
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Re: Singapore Government Announced Property Cooling Measures

Postby Dennis Ng » Tue Jun 05, 2012 12:57 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??


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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