Singapore Property - BTO income ceiling may be raised - impact on HDB resale, DBSS, EC demand
Min Chow Sai
The National Development Minister suggested the income ceiling for buyers of BTO HDB flats may be raised to S$10,000 a month. This is likely to have a direct impact on the HDB resale, DBSS and EC markets. While the verdict will not be out for another six months, would-be buyers in the three markets are likely to stay on the sidelines in the meantime, translating into further cooling of the HDB resale market and lukewarm take-up at new DBSS and EC launches. CDL, with two upcoming EC launches, is likely to be the most impacted among the developers under coverage.
Follow the insider – A few weeks ago, the media reported the sale of themost expensive residential unit in Singapore in terms of per square foot price. A unit at SC Global’s The Marq on Paterson Hill was sold at $5,842 psf, the highest in the nation’s history. If that was not a sure sign that the luxury home market is in for a rise, here is another, albeit a more subtle one.
Mr Simon Cheong, a name now synonymous with the luxury residential market in Singapore, has bought a substantial amount of shares of SC Global, a company he founded. His move seemed to dovetail with our report yesterday, Property Sector: Behind the steep discounts, in which we said SC Global is trading at a very steep 71% discount to its RNAV. Mr Cheong’s purchase of 1,565,000 shares at an average price of $1.35 totalled over $2m in value.
This amount was 10x more than the company’s own share buyback in the past two weeks. In our view, it signals Mr Cheong’s confidence in the luxury home market and that it is about time this segment catches up with the rest of the residential property market after a subdued performance in the past year.
I read this morning that 80% of the buyers of 'shoe-box' apartments are Singaporeans....
They are buying for investment with a view to renting out to expats and singles.
Most of these units are in the suburbs.
Good luck to these invvestors. If my hunch is right, this fad is going to be a costly one for the 'investors'.
1. A supply glut of residential units is looming.
2. Economies are slowing down, stock markets are wobbly. Capital values of resi units are likely to fall.
While enabling private developers to independently price DBSS units may be in line with the concept of "free market" principles, it also means HDB is losing control over "precious" lands that could be better utilised for BTO flats or community facilities, she said.
Although such a scheme is meant to offer additional housing options to Singaporeans who might have different aspirations, the first-time MP pointed out that what might have been a "useful housing option" in 2005 may no longer be suitable in present times.
Referring to some comments that Singaporeans can choose not to purchase DBSS properties, Tin believed that consumers' choice was not the crux of the problem.
"But I think the issue is one of principle — given the land scarcity in Singapore, HDB land should be reserved for building affordable public housing, and not apartments that HDB has little influence over," she said.
Her statement could well refer to National Development Minister Khaw Boon Wan comments' that netizens can exercise their rights as consumers if they find property prices too high.
"If buyers find a price too high, they can walk away," he had said in his blog posting dated on 18 June this year.
In addition, Tin also called on the HDB to include the DBSS under its review of housing policies, suggesting that it should have either the sole right to price such housing units, or include a condition which will allow it to discuss property prices with private developers.
One right from one famous does not necessary make good for the rest.
ECRI forcast is laser sharp, Global Industrial growth to slow for the next few quaters.
Market and property will follow subsequently.
But i see mkt to rally till year end , the most , hopefully for us to sell and get out. Stop loss applicable for me.
Have you ever see movies of a dieing man, he let out his last breath heavily. This it is. The property market is like the last breath of a dieing man, also heavy.
And heart invester of property will be filled with heaviness.
I believe we will see a new low, time to deflate, the world have been inflating for so long. Imagine with all those who are heavily indebted defaulted, all the billoins of dollars money will disappear overnite, how to have inflation? The remaining money will be very expensive.
My suggestion, sell all by year end. Keep cash. ..your turn now.
[hr]
[Reck 04-06-2011]:
From Kim Eng .
Follow the insider – A few weeks ago, the media reported the sale of themost expensive residential unit in Singapore in terms of per square foot price. A unit at SC Global’s The Marq on Paterson Hill was sold at $5,842 psf, the highest in the nation’s history. If that was not a sure sign that the luxury home market is in for a rise, here is another, albeit a more subtle one.
Mr Simon Cheong, a name now synonymous with the luxury residential market in Singapore, has bought a substantial amount of shares of SC Global, a company he founded. His move seemed to dovetail with our report yesterday, Property Sector: Behind the steep discounts, in which we said SC Global is trading at a very steep 71% discount to its RNAV. Mr Cheong’s purchase of 1,565,000 shares at an average price of $1.35 totalled over $2m in value.
This amount was 10x more than the company’s own share buyback in the past two weeks. In our view, it signals Mr Cheong’s confidence in the luxury home market and that it is about time this segment catches up with the rest of the residential property market after a subdued performance in the past year.
This new measure (10% extra stamp duty) is like a laser hitting the prices. Sure will tumble. For $1 m property, u are asking the angmoh or, more likely,the Chinaman to pay extra $100,000. Angmo cannot afford.....Chinaman maybe. Still, overall effect is down down down for prop prices. It's a good thing for Singapore, otherwise the present young generation can't afford private properties.
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