A price gap that escapes Wing Tai boss

[reporter2]

http://www.businesstimes.com.sg/archive/friday/specials/property/price-gap-escapes-wing-tai-boss

Published June 07, 2012

A price gap that escapes Wing Tai boss

He wonders why high-end homes here still trail HK, London so much

By Kalpana Rashiwala


WING Tai's head honcho has questioned why a wide gap exists in high-end home prices between Singapore and other cities such as Hong Kong and London, despite the Republic becoming a lot more vibrant and cosmopolitan in recent years.

Historically, London and Hong Kong have always had a premium in upmarket home prices over Singapore because they were perceived as being a lot more cosmopolitan.

"But this gap has narrowed a lot in the past few years due to government policies that have made the city a lot more vibrant. So why are high-end property prices here (priced at) only half of London?" Wing Tai chairman Cheng Wai Keung said in an interview with BT.

Based on Knight Frank's Prime International Residential Index, the average prime apartment price in Q4 2011 was US$2,400 per square foot here, compared with US$2,600 psf for Hong Kong. Prime London apartments and houses averaged US$4,500 psf.

Mr Cheng, a Singaporean hailing from Hong Kong and whose family is involved in the Hong Kong, China, Singapore and Malaysia property markets, estimates that high-end homes in Singapore are priced at about S$3,000 psf and above, while those in Hong Kong are at the equivalent of around S$6,000 psf and above.

"The (Singapore) government has spent so much money and we have been so successful in the last few years; not only have we caught up but in fact we're better than some of the first-tier cities in terms of entertainment, culture, arts . . . Why are we - at the expense of creating a social problem - having casinos? Because it is part and parcel of the total package that has created a buzz that is necessary for a first-tier city. We are also attracting good business into Singapore . . . (and) very high-paying jobs that create economic value.

"So why has the price gap instead of narrowing become wider?"

Some market watchers wonder if there has been a shift in the Singapore government's thinking such that it may prefer to attract high net worth individuals (HNWIs) who come here and generate economic activity rather than having too many HNWIs who buy a holiday home in Singapore that they live in for just a few weeks in a year.

International Property Advisor CEO Ku Swee Yong notes that Singapore was a much more open market during the previous high-end residential property boom in 2006-2007.

"Now the 10 per cent ABSD (additional buyer's stamp duty) on foreign buyers has been deterring some from entering the local market," he says.

"In this segment, we don't have to worry that it is Singaporeans' hard-earned money that will be caught up in a property bubble. If a foreigner gets his fingers burnt investing in a luxury condo, he can probably stomach it; he would have been advised by his wealth managers."

Mr Cheng suggests that the big difference in high-end home prices between Singapore and other cities such as Hong Kong and London, despite Singapore being more vibrant today, implies that luxury homes here are undervalued.

"Given the attractiveness of living in Singapore, we are underpriced."

Wing Tai is developing Le Nouvel Ardmore and Nouvel 18 (both in the posh Ardmore Park area), Ascentia Sky near Redhill MRT Station and Foresque Residences at Petir Road in the Upper Bukit Timah area. Its past developments include mass-market projects such as Kovan Melody and Casa Merah.

[Hiroaki27]

It takes time to change the perception that Singapore is a boring city.


It is not like playing Caesar game, build one temple then then god satisfaction index is instantly increased and problem solved.

:47:

[richwang]

When I was working in London for a short stint, I realised it is indeed the center of the world.

My morning starts when the Asian guys are still working, so I just need to know what they have tested the market.
My daytime is filled with excitement of the whole Europe and Mid East. Multicultural staff is something taken for granted.
My day finishes after US market has opened for a while.

A flight from London to New York is just 7 hours on the plane, and could be -2 hours on the watch if you take the super fast jet.
Even the international interest rate for USD (LIBOR USD) is fixed in London.

So there is a reason Wing Tai stock is traded at half of the book value - thinking of buying some.

Thanks,
Richard

[Leeds]

The geographic location of Singapore makes it a good trading hub but not for the rich and famous. London is right between US and the rest of Europe. There are so many pull factors to London be it finance, education, history, culture or quality of life. Hong Kong under the British has a lot of London material with China as its protector. The weather is a major draw to set up homes in these cities.

Singapore is man-made success city without soul, history nor culture. The pull factors are nothing to shout about compare to other major cities like London and Paris or even Hong Kong.

Wing Tai got its business strategy all wrong. By targeting only high end residential market, it is putting all its eggs in one basket.

[yjcai]

It takes time to change the perception that Singapore is a boring city.


It is not like playing Caesar game, build one temple then then god satisfaction index is instantly increased and problem solved.

:47:

nice I also love the game

[blackjack21trader]

It takes time to change the perception that Singapore is a boring city.


It is not like playing Caesar game, build one temple then then god satisfaction index is instantly increased and problem solved.

:47:

Why the price gap ? The answer is IN MY YOUTUBE. Watch carefully:

http://www.youtube.com/watch?v=H_Cr-5z4qHA

The next gem is hiddened in our Singapore River ! Provided we know how to play the Caesar's Game or Sim City like the HongKongers hor .

[Wild Falcon]

I think FEO has great business acumen. The likes of SC Global and Wing Tai is a bit "off".

If this guys have read the forum, many of us have argued against blind benchmarking against London and Hong Kong. That was the "hottest" discussion 3 years ago where everyone was following the herd and saying Singapore high-end should be same price as London. Some of us warn against such herd mentality. Firstly, we are not London where the wealthy middle eastern, Indians and Europeans invest.

1) Remember the richest man in SG in ranked NO WHERE in the Forbe's rich list http://www.telegraph.co.uk/finance/9130322/Forbes-rich-list-2012-top-50.html. No WHERE. In short, the rich in Singapore cannot make it. At least Hong Kong has 3 on the list. So the rich in Singapore is actually quite poor compared to the rich in other countries.

2) The rental yields do NOT support the prices beyond what is the price today. In short, the snob factor is NOT THERE for those property above $4000psf. Even tenants are not prepared to pay a significant premium for the snob factor. So if rental yields are already only at 2%, any increase in capital values will make the investment a joke.


The geographic location of Singapore makes it a good trading hub but not for the rich and famous. London is right between US and the rest of Europe. There are so many pull factors to London be it finance, education, history, culture or quality of life. Hong Kong under the British has a lot of London material with China as its protector. The weather is a major draw to set up homes in these cities.

Singapore is man-made success city without soul, history nor culture. The pull factors are nothing to shout about compare to other major cities like London and Paris or even Hong Kong.

Wing Tai got its business strategy all wrong. By targeting only high end residential market, it is putting all its eggs in one basket.

[blackjack21trader]

I think FEO has great business acumen. The likes of SC Global and Wing Tai is a bit "off".

If this guys have read the forum, many of us have argued against blind benchmarking against London and Hong Kong. That was the "hottest" discussion 3 years ago where everyone was following the herd and saying Singapore high-end should be same price as London. Some of us warn against such herd mentality. Firstly, we are not London where the wealthy middle eastern, Indians and Europeans invest.

1) Remember the richest man in SG in ranked NO WHERE in the Forbe's rich list http://www.telegraph.co.uk/finance/9130322/Forbes-rich-list-2012-top-50.html. No WHERE. In short, the rich in Singapore cannot make it. At least Hong Kong has 3 on the list. So the rich in Singapore is actually quite poor compared to the rich in other countries.

2) The rental yields do NOT support the prices beyond what is the price today. In short, the snob factor is NOT THERE for those property above $4000psf. Even tenants are not prepared to pay a significant premium for the snob factor. So if rental yields are already only at 2%, any increase in capital values will make the investment a joke.

So....you managed to decipher my youtube. WOAHAHAHAHHAHAHAHA

[hopeful]

So....you managed to decipher my youtube.

haha, you are full of crap:).

always show same pattern:
you post any nonsensical video and when somebody say something remotely intelligent, you go "you have decipher the hidden meaning".

a variant of TCH and LKY, answer question with question.

[blackjack21trader]

haha, you are full of crap:).

always show same pattern:
you post any nonsensical video and when somebody say something remotely intelligent, you go "you have decipher the hidden meaning".

a variant of TCH and LKY, answer question with question.

wahlaueh... very paiseh you saw through my tricks leh !! so intellignet of you. .although I love to play craps and blackjack also.

anyway, my youtubes will tell you more about the hiddened codes as to why Singapore is NOT Hong Kong.....YET.

Just look at the vitality and life and the people there, here's more youtubes of Hong Kong "Orchard Road":

http://www.youtube.com/watch?v=agQ2cvDV7FU

See the difference YET ???

[blackjack21trader]

wahlaueh... very paiseh you saw through my tricks leh !! so intellignet of you. .although I love to play craps and blackjack also.

anyway, my youtubes will tell you more about the hiddened codes as to why Singapore is NOT Hong Kong.....YET.

Just look at the vitality and life and the people there, here's more youtubes of Hong Kong "Orchard Road":

http://www.youtube.com/watch?v=agQ2cvDV7FU

See the difference YET ???

Did YOU notice the difference between the chiobu there and the chiobu here ? Well, the Hong Kong chiobu would smile at my camera but the Singapore chiobu would glare at my camera hor . Somemore the pedestrian would give way considerately in a crowded street but here in Singapore crowded street, nobody is that automatic hor:( In fact, it is such a joy to walk the crowded street of Hong Kong. No wonder GCT always reminded us to be gracious leh:

http://www.youtube.com/watch?v=sx0QLqF7EEg

[blackjack21trader]

Just in case I kena accused of playing craps again. Here's my message in plain England:

To be like London or Hong Kong property price, you seriously need a thorough hardware and software change to be as interesting and vitality as these cities. Otherwise, the price cap shall be there hor. LHL already done the hardware part, the software part is YOU, yes ... YOU.. the one nicknamed hopeful.

WOAHAHAHAHAHAH

[blackjack21trader]

I am doing you guys a favor, hinting to you how to have property price like Hong Kong or London. If you dun believe I also bo-pian liao la.

[blackjack21trader]

Somemore our Hong Kong brothers or sisters with flu or cough would place a mask in public place. Here, I see many sneeze right into my face hor ! Once in their MTR, a chiobu even slowly and graciously clear her nose. Here in MRT., got people blow their nose noisely at me hor !!!

[hopeful]

Somemore our Hong Kong brothers or sisters with flu or cough would place a mask in public place. Here, I see many sneeze right into my face hor !.....

There is this proverb:
A burden shared is a burden halved :)

[howgozit]

There is this proverb:
A burden shared is a burden halved :)

I think for a communicable disease a burden shared is a burden multiplied.

[Regulators]

we have made progress in having street art like that in covent garden. I think the government has to relax the rules of artistic expression to allow more street artist to perform to make our country more vibrant.
Just in case I kena accused of playing craps again. Here's my message in plain England:

To be like London or Hong Kong property price, you seriously need a thorough hardware and software change to be as interesting and vitality as these cities. Otherwise, the price cap shall be there hor. LHL already done the hardware part, the software part is YOU, yes ... YOU.. the one nicknamed hopeful.

WOAHAHAHAHAHAH

[Regulators]

I have been to hong kong a few times, find the cantonese dialect very irritating, people rattle on and on non stop on the streets and in restaurants, can compare with the indians in little india. We beat hong kong in being more multicultural thus having more variety. Apart from dim sum in hong kong, there isn't much to offer in terms of food. I do not think being like hong kong is the right way to go. Only thing we are moving in their direction is population increase and the financial industry.

[gn108]

In terms of population density we already surpassed them.
Its only coz they have more hilly terrain that the 'liveable density' is unconfirmed.


I have been to hong kong a few times, find the cantonese dialect very irritating, people rattle on and on non stop on the streets and in restaurants, can compare with the indians in little india. We beat hong kong in being more multicultural thus having more variety. Apart from dim sum in hong kong, there isn't much to offer in terms of food. I do not think being like hong kong is the right way to go. Only thing we are moving in their direction is population increase and the financial industry.