Leng Beng urges nimble feet in shifting landscape

[mr funny]

Published April 3, 2008

Leng Beng urges nimble feet in shifting landscape

CDL chief suggests review of land sales, rethink on deferred payment scheme

By KALPANA RASHIWALA


(SINGAPORE) The uncertainty surrounding the local property market will last at least another six months and stakeholders must stay nimble to deal with the changing tides, says property tycoon Kwek Leng Beng.

Speaking to BT, he said that the standstill in the local property market would end only after the US sub- prime crisis clears. 'I believe it will take another six months - if not more,' the executive chairman of listed City Developments Ltd (CDL) added.

But any restoration of confidence in the property market will also hinge on stakeholders - in both the private and public sectors - remaining nimble and reviewing their strategies and policies to meet changing market conditions swiftly, Mr Kwek stressed in a recent interview with BT.

'You have to cut your coat according to your cloth. As a developer, if I said last year that I was planning to launch five projects this year, but you know this year the market is quiet, it would be unwise for me to say 'because I decided last year to launch five projects this year, I must still go ahead'.'

He urged the government to likewise review its current land sales programme. The programme was fixed last year, when the market was buoyant, compared to conditions today.

The Government Land Sales Programme is announced every six months. The current H1 2008 slate of sites was announced early last December, which means that some of the decisions were probably made even earlier, property consultants say.

'It's been proven in the past that the Singapore property market is a very important pillar that is closely linked to other markets - for example, financial markets, and the construction sector - and is in part driven by sentiment. So it's vital for stakeholders in the private and public sectors in the property industry to remain nimble. They can do this by reviewing and modifying their practices quickly to stay relevant. By doing this, we can minimise potential problems and address them ahead of time,' argues Mr Kwek, 68, who has about four decades of experience in the property business.

He also advocates a free-market approach to policy at Singapore's current stage of development. 'As Singapore competes in the race among global cities, Singapore must not be perceived as a city that interferes unduly in market forces. We should instead allow market forces to prevail in the property market - unless the situation gets out of hand,' Mr Kwek says.

He also says that the government may have been too quick to scrap the deferred payment scheme last October. Mr Kwek suggests the authorities should reconsider the scheme, which was started around 2002 to help stabilise the weak property buying sentiment at the time.

Under the scheme, private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project. In contrast, under the normal progress payment scheme, buyers have to pay regular instalments to the developer, based on the stage of the project's construction.

'If I am a developer and I want to offer deferred payment schemes to my home buyers, perhaps the developers' bankers may be in a better position to assess the viability of the scheme even whilst staying prudent. The assessment will take into account the project, as well as the developers behind the scheme,' Mr Kwek argues.

Many analysts had blamed deferred payment for fuelling property speculation. Mr Kwek, while acknowledging this, argues that the scheme also served a useful function: it enabled buyers of new residential properties to dispose of their existing properties at a gradual pace, instead of being forced to sell them.

The deferred payment scheme could be revived again - but this time with a higher initial payment of 30 per cent instead of 20 per cent, suggests Mr Kwek, who is also chairman and managing director of listed Hong Leong Finance.

He praises the government's handling of the office crunch. The Urban Redevelopment Authority's introduction of transitional office sites - allowing temporary low-rise office blocks to be built quickly on 15-year leasehold sites - was a swift response to increase office supply for businesses that don't need to be in a posh CBD office block.

'But a global city does not necessarily mean your office rentals have to be cheap. Tokyo, London, New York all have high rents but continue to attract businesses. What's just as important is that you have to create an environment where businesses can make money.

'Don't forget, there are many cities fighting for investments. They can all copy Singapore. It's very easy to duplicate. So to get ahead of the pack, we have to think of something different - something that nobody has done. This boils down to being nimble,' Mr Kwek suggests.

[Unregistered]

Published April 3, 2008

Leng Beng urges nimble feet in shifting landscape

CDL chief suggests review of land sales, rethink on deferred payment scheme

By KALPANA RASHIWALA


(SINGAPORE) The uncertainty surrounding the local property market will last at least another six months and stakeholders must stay nimble to deal with the changing tides, says property tycoon Kwek Leng Beng.

Speaking to BT, he said that the standstill in the local property market would end only after the US sub- prime crisis clears. 'I believe it will take another six months - if not more,' the executive chairman of listed City Developments Ltd (CDL) added.

But any restoration of confidence in the property market will also hinge on stakeholders - in both the private and public sectors - remaining nimble and reviewing their strategies and policies to meet changing market conditions swiftly, Mr Kwek stressed in a recent interview with BT.

'You have to cut your coat according to your cloth. As a developer, if I said last year that I was planning to launch five projects this year, but you know this year the market is quiet, it would be unwise for me to say 'because I decided last year to launch five projects this year, I must still go ahead'.'

He urged the government to likewise review its current land sales programme. The programme was fixed last year, when the market was buoyant, compared to conditions today.

The Government Land Sales Programme is announced every six months. The current H1 2008 slate of sites was announced early last December, which means that some of the decisions were probably made even earlier, property consultants say.

'It's been proven in the past that the Singapore property market is a very important pillar that is closely linked to other markets - for example, financial markets, and the construction sector - and is in part driven by sentiment. So it's vital for stakeholders in the private and public sectors in the property industry to remain nimble. They can do this by reviewing and modifying their practices quickly to stay relevant. By doing this, we can minimise potential problems and address them ahead of time,' argues Mr Kwek, 68, who has about four decades of experience in the property business.

He also advocates a free-market approach to policy at Singapore's current stage of development. 'As Singapore competes in the race among global cities, Singapore must not be perceived as a city that interferes unduly in market forces. We should instead allow market forces to prevail in the property market - unless the situation gets out of hand,' Mr Kwek says.

He also says that the government may have been too quick to scrap the deferred payment scheme last October. Mr Kwek suggests the authorities should reconsider the scheme, which was started around 2002 to help stabilise the weak property buying sentiment at the time.

Under the scheme, private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project. In contrast, under the normal progress payment scheme, buyers have to pay regular instalments to the developer, based on the stage of the project's construction.

'If I am a developer and I want to offer deferred payment schemes to my home buyers, perhaps the developers' bankers may be in a better position to assess the viability of the scheme even whilst staying prudent. The assessment will take into account the project, as well as the developers behind the scheme,' Mr Kwek argues.

Many analysts had blamed deferred payment for fuelling property speculation. Mr Kwek, while acknowledging this, argues that the scheme also served a useful function: it enabled buyers of new residential properties to dispose of their existing properties at a gradual pace, instead of being forced to sell them.

The deferred payment scheme could be revived again - but this time with a higher initial payment of 30 per cent instead of 20 per cent, suggests Mr Kwek, who is also chairman and managing director of listed Hong Leong Finance.

He praises the government's handling of the office crunch. The Urban Redevelopment Authority's introduction of transitional office sites - allowing temporary low-rise office blocks to be built quickly on 15-year leasehold sites - was a swift response to increase office supply for businesses that don't need to be in a posh CBD office block.

'But a global city does not necessarily mean your office rentals have to be cheap. Tokyo, London, New York all have high rents but continue to attract businesses. What's just as important is that you have to create an environment where businesses can make money.

'Don't forget, there are many cities fighting for investments. They can all copy Singapore. It's very easy to duplicate. So to get ahead of the pack, we have to think of something different - something that nobody has done. This boils down to being nimble,' Mr Kwek suggests.

MY IDOL!!!!!!!!!!!!!!

[Unregistered]

KLB is going to bring people to 'Holland'.

[Unregistered]

Mr Kwek has all my respect. He is the only few who dare to speak out for the sake of the public interest. I believe he means well and objectively depicts our ppty market situation.

[Unregistered]

KLB is going to bring people to 'Holland'.

Which part of Holland? Holland Road or Holland Village?

[Unregistered]

Which part of Holland? Holland Road or Holland Village?
Or The Netherlands?

[Unregistered]

Mr Kwek has all my respect. He is the only few who dare to speak out for the sake of the public interest. I believe he means well and objectively depicts our ppty market situation.Public interest ???

[Unregistered]

Mr Kwek has all my respect. He is the only few who dare to speak out for the sake of the public interest. I believe he means well and objectively depicts our ppty market situation.

He got no choices, cos he is the Indian Chief in property circle. after SC say that many developers are taking cover now, it is his turn.

[Unregistered]

It is very true. Interference is bad. Wonder whether those foreign buyers caught by sudden measures in May 1996 dare to re-enter this market, when authority does not believe in a free market like what they did with measures again last year.

[Unregistered]

It is very true. Interference is bad. Wonder whether those foreign buyers caught by sudden measures in May 1996 dare to re-enter this market, when authority does not believe in a free market like what they did with measures again last year.

Authority very red eye. see developers make money, disturb only. now good la. property slow, revenues collect also slow.

[Unregistered]

Authority very red eye. see developers make money, disturb only. now good la. property slow, revenues collect also slow.
International investors now go to Hong Kong and boosting up market there. They must be mad to invest here when Authority intervene so that any price increase will be moderate. At best make 5 % pa. but in a downturn it is to each his own. They don't owe the little red dot a living, not even giving it a second look.

[Unregistered]

International investors now go to Hong Kong and boosting up market there. They must be mad to invest here when Authority intervene so that any price increase will be moderate. At best make 5 % pa. but in a downturn it is to each his own. They don't owe the little red dot a living, not even giving it a second look.
Wah! Now the gap between Hong Kong and Singapore is getting bigger and bigger.

[Unregistered]

Hong Kong has so much opportunities than Singapore. Its linkages to Macau and China will help to boost its potential.

[Unregistered]

International investors now go to Hong Kong and boosting up market there. They must be mad to invest here when Authority intervene so that any price increase will be moderate. At best make 5 % pa. but in a downturn it is to each his own. They don't owe the little red dot a living, not even giving it a second look.
What living? Foreign money in property never gave us a living. They want to make money out of our land.

Better for them to go and jack up prices elsewhere.

[Unregistered]

Mr Kwek stressed in a recent interview with BT.

'You have to cut your coat according to your cloth. As a developer, if I said last year that I was planning to launch five projects this year, but you know this year the market is quiet, it would be unwise for me to say 'because I decided last year to launch five projects this year, I must still go ahead'.

What it means is that Kwek Leng Beng is not going to launch as many projects this year.

This means that the supply will be reduced, to match the reduced demand.

This means that the market should be firm.

Other developers are also doing the same thing. They are holding back their launches.

Of course the sour grapes will say that the developers cannot hold back for long.

Then I think you have greatly underestimated the developers' profits for the last two years.

I just got the annual reports from City Developments, CapitaLand and Keppel Land, let me read to you ...

Profit Before Income Tax

City Developments 2007: $954,613,000 while for 2006: $692,278,000

CapitaLand 2007: $3,420,493 while 2006: $1,486,133,000

Keppel 2007: $988,736,000 while 2006: $263,408,000

Why is City Development's profits so much less than CapitaLand's?

The answer is here "The group (City Dev) has also not adopted the same approach to revaluing its properties as some of its competitors, which have reported huge revaluation gains. With these gains, its profit would have surged to $2.8 billion, it said."

So with this very deep-pocketed developers on our side, do we need to worry about holding power?

Looking at the other side, do the buyers have equal "withholding power"?

ChannelNewsAsia reported on 27 February 2008

Last year, Singapore saw over 63,000 new PRs, an 11-per-cent increase from 2006; and the city-state also welcomed more than 17,000 new citizens, a 30-per-cent jump.

Every year we are getting 80,000 new immigrants. This is not counting those foreigner coming to work here on employment pass.

These people cannot sleep on the streets so they have two choices. Either:

1. Buy; or
2. Rent.

If they withhold from buying, then this is going to happen:

Published March 27, 2008

Residential rents seen rising further

En bloc sales and population increase caused by influx of foreigners will continue to fuel demand, writes LEONARD TAY

Does this title look familiar?

Well, I copied it from this condosingapore forum. It's the title of one of the threads here.

Then as rentals keep going up and up, the rental yield of properties (currently around 5%) will become more and more attractive compared to putting money in fixed deposits (1.5%).

Then what will happen?

Then people will start visiting their bankers and enquire about housing loans (now at only 3%).

Then another 80,000 immigrants will come in next year ...

Then the people continue to withhold buying ... (like holding their breath under water).

Then rental yields will reach 6%. Then Bernanke in the USA will slash interest rates again to tackle the subprime problem and our fixed deposit rates drop to 0.5% and mortgage loans drop to 2%.

Then what will happen?

Then people will start visiting their bankers and enquire about housing loans ...

Then yet another 80,000 immigrants will come in ...

[Unregistered]

Oops!

Correction ...

CapitaLand 2007: $3,420,493,000 while 2006: $1,486,133,000

[Unregistered]

International investors now go to Hong Kong and boosting up market there. They must be mad to invest here when Authority intervene so that any price increase will be moderate. At best make 5 % pa. but in a downturn it is to each his own. They don't owe the little red dot a living, not even giving it a second look.

Hong Kong market need not depend on 'International' investors. The Mainland Chinese are the ones buying up the properties in HK. The reason for the continuous uptrend in price there is because supply is estimated to be outstripped by demand at ratio of 5:7. And the Mainland Chinese are targeting good class ares like the Peak and Mid Valley. This is reason enough for HK property prices to keep moving up and far outstripe Singapore property prices by comparison.

[Unregistered]

What living? Foreign money in property never gave us a living. They want to make money out of our land.

Better for them to go and jack up prices elsewhere.

If only detailed caveats from SISV Realink can be public info....everyone will be able to see that transactions has reduced drastically. It will also be transparently clear that Foreigners are the only ones that are still paying prices of july to september 2007 for their current transactions.

One glaring example for latest transaction by Foreigner. Imagine $3,000 psf in Meyer Road for CDL's Aalto! In Meyer Road?! Good luck to you Mr Foreigner ;-D BTW, it is a Penthouse for $16+M!

On the other hand, is there something they know about property market that we don't?

[Unregistered]

It is very true. Interference is bad. Wonder whether those foreign buyers caught by sudden measures in May 1996 dare to re-enter this market, when authority does not believe in a free market like what they did with measures again last year.


Well the latest interference may not be so blatant......URA is late to release property transactions for Q1. You can be sure that some datas are being re-intepreted to show a glowing and healthy Singapore property market.

Already the 1st salvo has been fired, 4.9% increase property price from Q4 2007 to Q1 2008. How to absorb this?

[Unregistered]

Oops!

Correction ...

CapitaLand 2007: $3,420,493,000 while 2006: $1,486,133,000
cannot even copy and paste properly..

[Unregistered]

What it means is that Kwek Leng Beng is not going to launch as many projects this year.

This means that the supply will be reduced, to match the reduced demand.

This means that the market should be firm.

Other developers are also doing the same thing. They are holding back their launches.

Of course the sour grapes will say that the developers cannot hold back for long.

Then I think you have greatly underestimated the developers' profits for the last two years.

I just got the annual reports from City Developments, CapitaLand and Keppel Land, let me read to you ...

Profit Before Income Tax

City Developments 2007: $954,613,000 while for 2006: $692,278,000

CapitaLand 2007: $3,420,493 while 2006: $1,486,133,000

Keppel 2007: $988,736,000 while 2006: $263,408,000

Why is City Development's profits so much less than CapitaLand's?

The answer is here "The group (City Dev) has also not adopted the same approach to revaluing its properties as some of its competitors, which have reported huge revaluation gains. With these gains, its profit would have surged to $2.8 billion, it said."

So with this very deep-pocketed developers on our side, do we need to worry about holding power?

Looking at the other side, do the buyers have equal "withholding power"?

ChannelNewsAsia reported on 27 February 2008

Last year, Singapore saw over 63,000 new PRs, an 11-per-cent increase from 2006; and the city-state also welcomed more than 17,000 new citizens, a 30-per-cent jump.

Every year we are getting 80,000 new immigrants. This is not counting those foreigner coming to work here on employment pass.

These people cannot sleep on the streets so they have two choices. Either:

1. Buy; or
2. Rent.

If they withhold from buying, then this is going to happen:

Published March 27, 2008

Residential rents seen rising further

En bloc sales and population increase caused by influx of foreigners will continue to fuel demand, writes LEONARD TAY

Does this title look familiar?

Well, I copied it from this condosingapore forum. It's the title of one of the threads here.

Then as rentals keep going up and up, the rental yield of properties (currently around 5%) will become more and more attractive compared to putting money in fixed deposits (1.5%).

Then what will happen?

Then people will start visiting their bankers and enquire about housing loans (now at only 3%).

Then another 80,000 immigrants will come in next year ...

Then the people continue to withhold buying ... (like holding their breath under water).

Then rental yields will reach 6%. Then Bernanke in the USA will slash interest rates again to tackle the subprime problem and our fixed deposit rates drop to 0.5% and mortgage loans drop to 2%.

Then what will happen?

Then people will start visiting their bankers and enquire about housing loans ...

Then yet another 80,000 immigrants will come in ...

This idiot is here again to distort facts.
Nobody asking u to explain KLB says. Readers here know how to interprut.
A moron in making.................

[Unregistered]

Published April 3, 2008

Leng Beng urges nimble feet in shifting landscape

CDL chief suggests review of land sales, rethink on deferred payment scheme

By KALPANA RASHIWALA


(SINGAPORE) The uncertainty surrounding the local property market will last at least another six months and stakeholders must stay nimble to deal with the changing tides, says property tycoon Kwek Leng Beng.

Speaking to BT, he said that the standstill in the local property market would end only after the US sub- prime crisis clears. 'I believe it will take another six months - if not more,' the executive chairman of listed City Developments Ltd (CDL) added.

But any restoration of confidence in the property market will also hinge on stakeholders - in both the private and public sectors - remaining nimble and reviewing their strategies and policies to meet changing market conditions swiftly, Mr Kwek stressed in a recent interview with BT.

'You have to cut your coat according to your cloth. As a developer, if I said last year that I was planning to launch five projects this year, but you know this year the market is quiet, it would be unwise for me to say 'because I decided last year to launch five projects this year, I must still go ahead'.'

He urged the government to likewise review its current land sales programme. The programme was fixed last year, when the market was buoyant, compared to conditions today.

The Government Land Sales Programme is announced every six months. The current H1 2008 slate of sites was announced early last December, which means that some of the decisions were probably made even earlier, property consultants say.

'It's been proven in the past that the Singapore property market is a very important pillar that is closely linked to other markets - for example, financial markets, and the construction sector - and is in part driven by sentiment. So it's vital for stakeholders in the private and public sectors in the property industry to remain nimble. They can do this by reviewing and modifying their practices quickly to stay relevant. By doing this, we can minimise potential problems and address them ahead of time,' argues Mr Kwek, 68, who has about four decades of experience in the property business.

He also advocates a free-market approach to policy at Singapore's current stage of development. 'As Singapore competes in the race among global cities, Singapore must not be perceived as a city that interferes unduly in market forces. We should instead allow market forces to prevail in the property market - unless the situation gets out of hand,' Mr Kwek says.

He also says that the government may have been too quick to scrap the deferred payment scheme last October. Mr Kwek suggests the authorities should reconsider the scheme, which was started around 2002 to help stabilise the weak property buying sentiment at the time.

Under the scheme, private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project. In contrast, under the normal progress payment scheme, buyers have to pay regular instalments to the developer, based on the stage of the project's construction.

'If I am a developer and I want to offer deferred payment schemes to my home buyers, perhaps the developers' bankers may be in a better position to assess the viability of the scheme even whilst staying prudent. The assessment will take into account the project, as well as the developers behind the scheme,' Mr Kwek argues.

Many analysts had blamed deferred payment for fuelling property speculation. Mr Kwek, while acknowledging this, argues that the scheme also served a useful function: it enabled buyers of new residential properties to dispose of their existing properties at a gradual pace, instead of being forced to sell them.

The deferred payment scheme could be revived again - but this time with a higher initial payment of 30 per cent instead of 20 per cent, suggests Mr Kwek, who is also chairman and managing director of listed Hong Leong Finance.

He praises the government's handling of the office crunch. The Urban Redevelopment Authority's introduction of transitional office sites - allowing temporary low-rise office blocks to be built quickly on 15-year leasehold sites - was a swift response to increase office supply for businesses that don't need to be in a posh CBD office block.

'But a global city does not necessarily mean your office rentals have to be cheap. Tokyo, London, New York all have high rents but continue to attract businesses. What's just as important is that you have to create an environment where businesses can make money.

'Don't forget, there are many cities fighting for investments. They can all copy Singapore. It's very easy to duplicate. So to get ahead of the pack, we have to think of something different - something that nobody has done. This boils down to being nimble,' Mr Kwek suggests.



well said & well done, KLB.
If govt bow to the pressure to suppress property price, they will get even stronger voice from the people.
So they only need to do the right thing for the good of spore, as long as spore progress superbly, other issue can be resolved
If they give way to votes, then spore is gone case just a matter of time.

[Unregistered]

This idiot is here again to distort facts.
Nobody asking u to explain KLB says. Readers here know how to interprut.
A moron in making.................
This idiot is here again to distort facts. Nobody asking u to comment on his posting. Readers here know how to interpret his posting.

[Unregistered]

cannot even copy and paste properly..
Exactly! Only knows how to make money but dunno how to copy and paste. What a crap!

[Unregistered]

Exactly! Only knows how to make money but dunno how to copy and paste. What a crap!
Make money then hire people to copy and paste can?

[Unregistered]

Exactly! Only knows how to make money but dunno how to copy and paste. What a crap!

Make money then hire people to copy and paste can?
True! Smart!

[Unregistered]

True! Smart!
You sounds like Mr Kwek.

[Unregistered]

What living? Foreign money in property never gave us a living. They want to make money out of our land.

Better for them to go and jack up prices elsewhere.
Wah! How can say like that?
We need them to fill up the job vancancy lah.

[Unregistered]

Wah! How can say like that?
We need them to fill up the job vancancy lah.
... but they are buying up our assets ...

[Unregistered]

... but they are buying up our assets ...
Good for us right?

[Unregistered]

It is going to be just a short break due to poor sentiment generated by the subprime credit crunch of the West and there are signs of this bottoming out. With developers and other sellers able to hold, prices will sustain. The big timers of course know what they are doing. When sentiment returns it is going to be hotter than ever and this time it is not likely to see growth inhibiting measures from authority unless the flight to becoming a global city is to be given up.

[Unregistered]

It is going to be just a short break due to poor sentiment generated by the subprime credit crunch of the West and there are signs of this bottoming out. With developers and other sellers able to hold, prices will sustain. The big timers of course know what they are doing. When sentiment returns it is going to be hotter than ever and this time it is not likely to see growth inhibiting measures from authority unless the flight to becoming a global city is to be given up.

It boils down to one conclusion. Developer vs Enblocee.

Developer hv paid a high price to their enbloc seller. How can it be fair for them to eventually have to build a new project and sell to the enblocee at a lower price?

I support KLB. Continue to hold back the new project launch until the buyers pay a higher price for the new project or left home less.

[Unregistered]

Singapore home sales seen slumping to 5-year lows
By Daryl Loo

SINGAPORE, March 17 (Reuters) - Singapore homes sales in February almost halved from the previous month, and could slump this quarter to the lowest since the SARS epidemic in 2003 as surging inflation and global economic fears keep buyers at bay.

The government on Monday said 170 private homes were sold in February, less than a tenth of the homes sold last August when Singapore was still in the midst of a two-year property upswing.

The abrupt slowdown this year is hitting shares for property developers but could take some pressure off inflation that is at the highest level in 25 years.
After January saw 316 homes sold, property analysts are predicting that total sales for the first three months of this year will be between 700-800 units, the weakest in five years.

"The only two other periods when the Singapore residential market experienced such low sales volume were during the SARS period in the first quarter of 2003 when 427 new homes were sold, and during the Asian financial crisis in the fourth quarter of 1997 when 894 units were sold," said Li Hiaw Ho, research director of property consultancy CB Richard Ellis.

So far the jury is out on how much the drop in demand has hit home prices. Private home prices in Singapore surged 31 percent last year to their highest in over ten years and near the peak of mid-1996 just before the Asian financial crisis.

High-end homes, typically those priced at above S$1,800 ($1,302) per square foot, saw the greatest jump, while the increase was more moderate for homes in the mass market segment.

But the price increase slowed in the fourth quarter as steps taken by the authorities to curb real estate market speculation took effect, including a move in October to bar developers from selling uncompleted homes on a deferred payment scheme.

"The sales figures for February were stunningly low... Buyers are becoming very conservative, although prices seem to have held up," said Jones Lang LaSalle research head Chua Yang Liang.

LAUNCH DELAYS

Reflecting the cautious mood, some developers have delayed their property launches, evident in the 343 units put up for sale in February, against 410 units in January and 445 in December.

KepLand, which is building the 221-unit Marina Bay Suites luxury apartments with Hong Kong Land and Cheung Kong, said in January that it would delay the project until the end of the Lunar New Year holiday in mid-February.
"We're still waiting for instructions to launch," said Margaret Thean, executive director of property agency DTZ, which has been appointed to market the project.

There have also been newspaper reports of property speculators who bought units last year with hopes of a speedy sale for a quick profit, but who are now being forced to sell at steep discounts due to the drop in demand. But it may not to be time to go bargain hunting just yet.

"While anecdotal evidence of lower transacted prices from desperate speculators looking to liquidate their positions have yet to be fully recognised by the entire market, the risk of a downward spiral effect in residential prices remains," Morgan Stanley analyst Melissa Bon said in a report this month.

"In addition, the bottoming out of private rental vacancies and likely peaking of rentals may put downward pressure on residential prices," she said.

The U.S. brokerage has downgraded CityDev to "underweight" for its exposure to the Singapore home market, and expects prices in the mid to high-end sectors to drop 15 percent this year, compared to its previous expectations for a 15 percent rise.

ABN AMRO analyst Fera Wirawan said homes catering to the mass market could still rise at least 5 percent as prices in this segment had not run up as much.

"It's all about sentiments now. Buyers are holding off in anticipation of a price cut. Even if developers refuse to decrease the price, especially in the high end, they can't hold out for long if the volumes stagnant like this," she said. (Editing by Neil Chatterjee)

Its all coming down for sure...

[Unregistered]

Its all coming down for sure...
hello moron
stop using your asshole to think and post the same old news in every threads
only shit come out of your asshole

[Unregistered]

Singapore home sales seen slumping to 5-year lows
By Daryl Loo
..............

Its all coming down for sure...
Why muliplte-post your 3-week-old news anywhere?
Why not post a 3-month-old or 3-year-old news in all the threads?

Anyway, price increased by 4.2%. No old news can change that.

Go post a 3-year-old news here. It may help you.

[Unregistered]

hello moron
stop using your asshole to think and post the same old news in every threads
only shit come out of your asshole
Obviously. What comes out of yours? Gold or Oil?

[Unregistered]

Obviously. What comes out of yours? Gold or Oil?
Buddy, nothing comes out of his. He is constipated seeing the market coming down...haha

[Unregistered]

Obviously. What comes out of yours? Gold or Oil?
You mean you obviously use your asshole to think?

[Unregistered]

hello moron
stop using your asshole to think and post the same old news in every threads
only shit come out of your asshole

U no asshole???? or words come out from ur asshole?? special hor?

[Unregistered]

HDB, private apartment rentals set to rise

By Wong Siew Ying, Channel NewsAsia | Posted: 03 April 2008 0050 hrs


SINGAPORE : Rentals for HDB and mass market private apartments are set to rise in the coming years, with more foreign workers heading for Singapore.

Property agents expect rents to climb by about 10 percent this year.

They say HDB flat-owners could gain from the spike in demand.

Singapore's two integrated resorts will be ready in the next two years.

Besides attracting more tourists, they are also expected to draw thousands of foreign workers to the city state.

Resorts World at Sentosa says it will be hiring 10,000 people directly.

And 40 percent of these jobs will go to foreigners, in view of the manpower crunch in Singapore.

Property agents say some of the foreign workers, especially higher-ranking staff, will have the means to purchase private residential properties.

But they expect the bulk of the workers to tap into the rental market for their housing needs. And this will push prices up in the short-term as supply plays catch up.

On average, monthly rentals for private apartments range between $2,500 and $3,500 dollars.

This may be too much for some workers.

Mohamed Ismail, CEO of PropNex, said: "The public housing becomes next best alternative where today people are still able to rent at $1,500 to $2,000. I expect this trend to continue, as far as estates that will have a greater demand ... such as those in Telok Blangah, Bukit Merah, Bishan, Toa Payoh. Anything that is not too far away from town or to the integrated resorts will definitely have greater take-up rates."

Industry players say private residential properties currently enjoy a rental yield of some 5 percent, while that of HDB flats is between 8 and 10 percent - among the highest ever in Singapore for public housing.

All in, agents expects rentals to climb by some 10 percent in the next two years. - CNA/de
Prices continue to go up. Rents also continue to go up.
This is good!

[Unregistered]

In World Cup, if Brazil plays against Singapore (I say "if"), which side you want to be on?

So just choose which side you want to be on: Kwek Leng Beng versus Sour Grape.

I having been choosing Kwek Leng Beng and have made about 2 million dollars in the property market. As I am conservatively geared at 50%, my portfolio of properties is worth about $4 million.

Anyway eversince the subprime started in July 2007 and the sour grapes came to this forum to make a lot of noise, the property index has gone up by 6.6% in 3rd Quarter 2007 and another 4.2% in 1st Quarter 2008 (Please check the URA website at www.ura.gov.sg).

Total increase is 10.8%.

My portfolio of properties has gone up by another 10.8%.

So I've made about $400,000 for doing nothing, while the sour grapes have been screaming and shouting in this forum.

It is understandable that the sour grapes should be quite sour.

[Unregistered]

Prices continue to go up. Rents also continue to go up.
This is good!
Each cycle will be higher than the historic high as records show. Property is an ancient business and arguably the most desired economic want for the rich and in modern times for the merely affordable as well, perhaps ranking similar to sex, paid or unpaid. Fear not property owners, demand will always be there although some may abstain for worries of catching a virus or two.

[Unregistered]

In World Cup, if Brazil plays against Singapore (I say "if"), which side you want to be on?

So just choose which side you want to be on: Kwek Leng Beng versus Sour Grape.

I having been choosing Kwek Leng Beng and have made about 2 million dollars in the property market. As I am conservatively geared at 50%, my portfolio of properties is worth about $4 million.

Anyway eversince the subprime started in July 2007 and the sour grapes came to this forum to make a lot of noise, the property index has gone up by 6.6% in 3rd Quarter 2007 and another 4.2% in 1st Quarter 2008 (Please check the URA website at www.ura.gov.sg).

Total increase is 10.8%.

My portfolio of properties has gone up by another 10.8%.

So I've made about $400,000 for doing nothing, while the sour grapes have been screaming and shouting in this forum.

It is understandable that the sour grapes should be quite sour.

OBviously, you are frightened now. Whether its going to be sweet or sour, you will still have to swallow it later.

[Unregistered]

OBviously, you are frightened now. Whether its going to be sweet or sour, you will still have to swallow it later.
More like you are frightened as you are talking cock now. He is steady and talks sense.

[Unregistered]

In World Cup, if Brazil plays against Singapore (I say "if"), which side you want to be on?

So just choose which side you want to be on: Kwek Leng Beng versus Sour Grape.

I having been choosing Kwek Leng Beng and have made about 2 million dollars in the property market. As I am conservatively geared at 50%, my portfolio of properties is worth about $4 million.

Anyway eversince the subprime started in July 2007 and the sour grapes came to this forum to make a lot of noise, the property index has gone up by 6.6% in 3rd Quarter 2007 and another 4.2% in 1st Quarter 2008 (Please check the URA website at www.ura.gov.sg).

Total increase is 10.8%.

My portfolio of properties has gone up by another 10.8%.

So I've made about $400,000 for doing nothing, while the sour grapes have been screaming and shouting in this forum.

It is understandable that the sour grapes should be quite sour.

U are a Moron, If Leng Beng offer u a place to stay, where would u choose?
Singaporean are very kind to donate $400k for ur performance at national parks. Ur private enclosure in the ZOO is worth $40Millions now. I should say u are the Special One.

PS. U cant take sour grapes, just bring bananas.

[Unregistered]

What it means is that Kwek Leng Beng is not going to launch as many projects this year.

This means that the supply will be reduced, to match the reduced demand.

This means that the market should be firm.

Other developers are also doing the same thing. They are holding back their launches.

Of course the sour grapes will say that the developers cannot hold back for long.

Then I think you have greatly underestimated the developers' profits for the last two years.

I just got the annual reports from City Developments, CapitaLand and Keppel Land, let me read to you ...

Profit Before Income Tax

City Developments 2007: $954,613,000 while for 2006: $692,278,000

CapitaLand 2007: $3,420,493 while 2006: $1,486,133,000

Keppel 2007: $988,736,000 while 2006: $263,408,000

Why is City Development's profits so much less than CapitaLand's?

The answer is here "The group (City Dev) has also not adopted the same approach to revaluing its properties as some of its competitors, which have reported huge revaluation gains. With these gains, its profit would have surged to $2.8 billion, it said."

So with this very deep-pocketed developers on our side, do we need to worry about holding power?

Looking at the other side, do the buyers have equal "withholding power"?

ChannelNewsAsia reported on 27 February 2008

Last year, Singapore saw over 63,000 new PRs, an 11-per-cent increase from 2006; and the city-state also welcomed more than 17,000 new citizens, a 30-per-cent jump.

Every year we are getting 80,000 new immigrants. This is not counting those foreigner coming to work here on employment pass.

These people cannot sleep on the streets so they have two choices. Either:

1. Buy; or
2. Rent.

If they withhold from buying, then this is going to happen:

Published March 27, 2008

Residential rents seen rising further

En bloc sales and population increase caused by influx of foreigners will continue to fuel demand, writes LEONARD TAY

Does this title look familiar?

Well, I copied it from this condosingapore forum. It's the title of one of the threads here.

Then as rentals keep going up and up, the rental yield of properties (currently around 5%) will become more and more attractive compared to putting money in fixed deposits (1.5%).

Then what will happen?

Then people will start visiting their bankers and enquire about housing loans (now at only 3%).

Then another 80,000 immigrants will come in next year ...

Then the people continue to withhold buying ... (like holding their breath under water).

Then rental yields will reach 6%. Then Bernanke in the USA will slash interest rates again to tackle the subprime problem and our fixed deposit rates drop to 0.5% and mortgage loans drop to 2%.

Then what will happen?

Then people will start visiting their bankers and enquire about housing loans ...

Then yet another 80,000 immigrants will come in ...


This time around buyers wait for price correction will be futile.

[Unregistered]

This time around buyers wait for price correction will be futile.

You fortune teller?

[Unregistered]

You fortune teller?
Don't think he is a fortune teller. Just someone with good foresight.

[Unregistered]

Each cycle will be higher than the historic high as records show. Property is an ancient business and arguably the most desired economic want for the rich and in modern times for the merely affordable as well, perhaps ranking similar to sex, paid or unpaid. Fear not property owners, demand will always be there although some may abstain for worries of catching a virus or two.
Those who abstain are extremely frustrated but at least they can release in this forum.

[Unregistered]

Those who abstain are extremely frustrated but at least they can release in this forum.
DJIA is up. They can rejoice.

[Unregistered]

DJIA is up. They can rejoice.
12.00pm, U.S. EDT

At midday, the U.S. stock market is trading with a slight gain. 6 of the 10 economic sectors are in the green. This is actually pretty decent.

[Unregistered]

DJIA is up. They can rejoice.
Yes Uncle Jones will send you some money. Rejoice

[Unregistered]

Yes Uncle Jones will send you some money. Rejoice
Thank you Uncle Jones.