I would say there are broad similiarities between China & SG in terms of the reasons for ensuring that property prices don’t go ballistic.
BEIJING (Dow Jones)--Chinese Premier Wen Jiabao said Wednesday that China's property prices are still far from reasonable and the country cannot relax its property controls.
While property controls put in place over the past two years have scored successes, China must keep those measures in place as relaxing them too soon would lead to "chaos" in the property market, Wen said.
"What do we mean by bringing property prices back to reasonable levels? A reasonable housing price should match people's incomes and construction costs, while profits should be reasonable too," Wen told a news conference at the end of the National People's Congress, the annual meetings of China's legislature.
Wen noted that the government has faced a number of difficulties in bringing prices down, including resistance from property developers and financial institutions.
He added that conflicts between the central government and local governments, which depend on land sales for revenue, are also a factor holding back progress in bringing prices down.
"Our reform on this front has encountered massive resistance," he said.
Wen acknowledged that Beijing's previous attempts to cool the property market in 2003, 2005 and 2006, had limited success, but he said that the government is more determined this time. Analysts noted that loosening the property market curbs too soon would harm the government's credibility.
Average property prices in China have declined for six months on a sequential basis as Beijing sought to rein in runaway housing prices through a series of tightening measures such as limits on home purchases and higher mortgage and down payment rates.
Wen also warned that "blind development" of the property market could lead to dangerous speculative bubbles that would also affect the broader economy.
China needs to look at the long-term prospects of the property market and ensure it develops in a healthy and sustainable manner, said Wen, adding the country will continue to see genuine demand for housing.
"China is a big country with 1.3 billion people and is currently at a stage of rapid industrialization and urbanization. Therefore the demand for housing from the Chinese people is inelastic. It is here to stay," said Wen.
The premier reiterated that while China has pledged to provide adequate housing for all people, this doesn't mean that each resident must own a home. China will also continue to encourage people to rent housing, he said.
Another day, another surprise from Mr Market. Look at Keppel Land -- now at $3.60.
It got only a $2.40 target price from CIMB. Why such a vast difference between CIMB and Mr Market? Even angmo house UBS couldn't anticipate Mr Market's growing love for Keppel Land. UBS target was $2.74.
Only (Singapore broker) AmFraser is looking pretty now, becos its target is $3.65. [url=http://www.nextinsight.net
/story-archive-mainmenu-60/916-2012/4811-chasen-a-top-growing-company-]KEPPEL LAND's fair value is $3.65 or $2.40?[/url]
In the Glorious East, including China & Singapore, the people love properties and are enjoying economic prosperity, so they can afford higher and higher property prices. The government acts to control the rise of prices.
In the West, including UK and US, the situation is just the opposite. Years of lousy governance and of individual overspending have turned the economics into trash.
So UK Prime Minister has just offered state-backed mortgages to allow buyers to get loans for as much as 95 percent of the value of a newly built home.
Hiap Hoe shot up 5 cents today. Closed at 52.5 cents.
Why? The possibility offered by HH to SGX is …. hard to understand. Seems like Teo Senior has filed suit against the other Teos and Hiap Hoe Holdings to wind up Hiap Hoe Holdings.
So why the stock shot up?
Question 2: Are you aware of any possible explanation for the trading?
Answer: One possibility could be that there is an article published in today’s edition of the Lian He Zhao Bao and MyPaper regarding a suit filed by Mr Teo Guan Seng, a director of the Company against : (1) Mr Teo Ho Beng (a director of the Company); (2) Mr Teo Ho Kang, Roland (a director of the Company) and (3) Hiap Hoe Holdings Pte Ltd (a shareholder of the Company) (the “Suit”), for the winding up of Hiap Hoe Holdings Pte Ltd and a distribution in specie of its assets to its shareholders.
The Company has been informed by Mr Teo Ho Beng and Mr Teo Ho Kang, Roland (in their capacities as directors of the Company) of the Suit and that they and Hiap Hoe Holdings Pte Ltd have filed their respective defences in the Suit, which is pending response from Mr Teo Guan Seng.
Depending on the outcome of the Suit, the Company will, if necessary, make the relevant announcements in compliance with the requirements of the Listing Manual as and when appropriate.
Basically, the story is Teo Guan Seng is 81 years old and non-exec chairman of Hiap Hoe Limited, the listed entity. He is wanting to dissolve Hiap Hoe Holdings -- this is the vehicle which owns 70% of Hiap Hoe Limited. He wants to dissolve HHH and have the shares distributed to himself and the other shareholders -- namely, his 2 sons.
It appears this is being contested by the 2 sons -- Teo Ho Beng (57 years) and Rolad Teo (49 years) . Incidentally, their father, Teo Guan Seng, was in the news about 10 years ago when he was being divorced by his wife (who is 2 years his junior) for being a "serial womaniser". The newspaper reports said Teo Guan Seng had 2 mistresses who had bore him 9 children in total. Wah....