New Redas chief upbeat on property for next 3 years

Feb 27, 2007

New Redas chief upbeat on property for next 3 years

By Joyce Teo, Property Correspondent


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The remaking of Singapore and the recent tax perks augur very well for every part of the property market, says Mr Cheong. -- YEN MENG JIIN/BT



THE property market may be red-hot but there is no cause for concern that this is a false dawn.

That is the view of Mr Simon Cheong in some of his first comments as the newly installed president of the Real Estate Developers Association of Singapore (Redas).

'We're really on our way to becoming a global city and I think with all these attributes that are coming up and the big plans by the Government to improve a lot of infrastructure, it can only get better, barring any unforeseen circumstances. The big impetus has been the integrated resorts.'

The remaking of Singapore and recent tax perks 'auger very well' for every part of the property market, he said. Indeed, while he expects a breather for the market at some point before it rises further, he does not expect it for the next three years.

Mr Cheong, who is chairman of high-end developer SC Global Developments, took over the Redas top job from Mr Kwee Liong Keng, managing director of Pontiac Land less than two weeks ago.

Singapore's high-end residential property market has been doing very well and speculators have played their part in chasing up the prices of some projects.

Mr Cheong said speculation is 'unavoidable' and not a 'big cause for concern' as it is confined to a small part of the market. 'In any market...there's always the element of speculation, which I think is healthy.'

It is basically the passing on of risk to speculators if they want to take the risks, he added.

He and Redas committee member Chia Ngiang Hong said it is only a matter of time before the mass residential market picks up.

It will be supported, in part, by demand from collective site sellers, who are likely to look somewhere other than prime areas for a new home, said Mr Cheong.

With many such sites to be torn down in the next 12 months, there would not be a big oversupply situation, he said. 'It takes three months to tear down a building but three years to build it.'
The remaking of Singapore and the recent tax perks augur very well for every part of the property market, says Mr Cheong.

Developers upbeat over real estate market in the months ahead

By Johnson Choo, Channel NewsAsia | Posted: 26 February 2007 2138 hrs


SINGAPORE: Property developers are optimistic about the outlook for Singapore's real estate market in the months ahead.

The optimism was evident at an industry event on Monday.

The Real Estate Developers' Association (REDAS) held its Spring Festival lunch on Monday.

And clearly, the developers were upbeat that the real estate market would continue to do well in 2007, riding on an economy that is expected to continue with strong growth.

REDAS said the two upcoming integrated resorts and efforts to build up Singapore as a financial and banking hub would have a direct positive impact on real estate.

On the average, only 7,000 new private housing units are sold each year.

But with a projected population of 6.5 million - or one-third higher than the current 4.5 million - REDAS estimated that about half a million more new housing units would be needed over the next 10 to 15 years.

Simon Cheong, President of REDAS, said: "For the en bloc people... they probably cannot get back a place where they are staying now; they have to go to the secondary location, which is perfectly fine. 10 years from today, the secondary location will become prime location also. So, who knows, maybe the en bloc will replay itself again."

REDAS said the mass market segment, which was dormant last year, would move over the next 12 to 24 months as more en bloc projects come online and as more HDB upgraders enter the market. - CNA/ir