Monday, October 15, 2012

Om Mani Padme Hum

Om Mani Padme Hum


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Options Basics 101 - Lesson 1



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Significantly more housing units to be completed in 2014

Significantly more housing units to be completed in 2014
By Hetty Musfirah | Posted: 15 October 2012 1855 hrs

SINGAPORE: 26,800 Housing and Development Board (HDB) flats and 22,400 non-landed private housing units are projected to be completed in 2014.

The numbers are significantly higher than those projected for this year -- 11,300 HDB flats and 12,500 non-landed private housing units are expected to be completed in 2012.

The National Development Ministry revealed these figures in a written response to questions posed by Pasir Ris-Punggol Group Representation Constitutency (GRC) Member of Parliament (MP) Gan Thiam Poh in Parliament on Monday.

Speaking in Parliament, National Development Minister Khaw Boon Wan said there is a significant supply of housing - both public and private - that will come onto the market over the next two years.

He said HDB has ramped up its Build-to-Order (BTO) supply significantly, and will keep up the pace of new flat supply into 2013.

He said this is to provide more options to suit individual housing needs and budgets.

Holland-Bukit Timah GRC MP Liang Eng Hwa had also asked if there are enough flats to meet unanticipated demand, such as those from singles.

He asked: "We may not always get the demand and supply right, so is HDB building some surplus to meet those unanticipated demand?"

Mr Khaw said the ministry is looking into the matter.

He answered: "We're still mulling over it. (It is) very hard to put a figure on how much should we cater for singles."

Mr Khaw added that strong demand for residential property in Singapore is likely to persist as interest rates stay low.

While residential property prices may be stabilising, Mr Khaw said, Singapore is not yet "out of the woods".

The Resale Price Index has seen an uptick in the third quarter this year, with a two per cent growth from the second quarter of 2012 based on flash estimates.

"With the recent announcements of further monetary expansion in both US and the eurozone, the current low interest rate environment is likely to persist," said Mr Khaw.

"This will continue to contribute to the strong demand for residential property, which could cause prices to rise beyond sustainable levels."

He added the recently-announced new curbs on loan tenures are to encourage greater financial prudence among property purchasers in both the public and private housing markets.

The new curb is also a calibrated step to prevent excessive speculation.

According to analysts, the increase number of HDB flats to be completed in 2014 does not come as a surprise, as the government has been ramping up HDB flat supply in the past years.

Analysts say most of the flats should have been taken up by then, as typically about 70 per cent of units have been booked. Remaining units are also sold under the Sales of Balance Flats programme.

"Also, the BTO (build-to-order scheme) is a scalable programme; the government can always scale down the number of units that's being launched once the needs of the home buyers have been met," added Mr Eugene Lim, key executive officer of ERA Realty.

The higher number of HDB units is not expected to have a significant impact on the resale market, if the flats are sold after the minimum occupation of five years in 2019.

Mr Lim said: "It is a bit far ahead to predict the impact on the resale market but I would suspect not all these flats' owners will be selling their flats at the same time. So therefore the impact on the resale market prices will not be significant."

But it could be a different story for the private housing market.

According to Mr Lim, an oversupply is possible, and investors renting out units could be affected.

"We are already reducing foreign manpower and if this were to continue in the years to come, then we find that in the year 2014, there may not be as much foreign manpower to take up the rental units," said Mr Lim.

"And when you have so many new units being completed in the market, then we might have a slight oversupply situation and that would lead to reduced rentals."

The National Development Ministry says about 39,600 units of private homes from projects in the pipeline, remain unsold as of June this year.

- CNA/xq

This is a piece of good news for those want to get a flat and settling down.

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Love paradise - Kelly Chen



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Strong demand for housing likely to continue: Khaw

Strong demand for housing likely to continue: Khaw
Posted: 15 October 2012 1737 hrs

SINGAPORE: National Development Minister Khaw Boon Wan said strong demand for residential property in Singapore is likely to persist, as interest rates stay low.

In a question to the minister in Parliament on Monday, MP Foo Mee Har cited the case of a flat in Queenstown which was sold for S$1 million.

Mr Khaw said from time to time, some buyers are prepared to pay way above market valuation but these are exceptional cases.

He said residential property prices are stabilising, but Singapore is not yet "out of the woods".

Both private property and HDB resale markets showed signs of stabilising this year.

For private property, growth in prices slowed from 18 per cent in 2010, to 6 per cent in 2011, and to 0.9 per cent in the first three quarters of 2012.

Growth in the Yearly Resale Price Index (RPI) also dropped from 14.1 per cent in 2010, to 10.7 per cent last year, and to 3.9 per cent in the first three quarters of this year.

Nonetheless, flash estimates for the third quarter of 2012 show a 2 per cent uptick in the resale price index, from the second quarter.

He said the latest curbs on loan tenures are to prevent excessive speculation in both the public and private housing markets.

And this is in response to abnormal global monetary conditions that are keeping interest rates low.

The Monetary Authority of Singapore had recently announced a 35-year cap on residential property loans, and also tighter loan-to-value limits for loans that exceed 30 years.

To meet demand, Mr Khaw said the Housing and Development Board is keeping up the current pace of building new flats into 2013.

In 2011, HDB launched 25,000 new flats, and this year, the total will be some 27,000 units.

Mr Khaw said: "Every year, marriages that are involving citizens, we're talking about 15,000 family formations a year. So 25,000 units (new flats a year) provide some buffer. But we also have additional demand from upgraders, downgraders, second timers.

"In fact, if not for other policy changes I'd be beginning to wind it (the supply) down a little bit. Other than, because now we have this new subject of catering for singles. So I have to deliberately ramp it up a little bit higher in order to cater for singles. We're still mulling over it. Very hard to put a figure on how much should we cater for singles."

- CNA/ck

Rich S'poreans buck Asian trend in luxury spending: survey

Rich S'poreans buck Asian trend in luxury spending: survey
By Dylan Loh | Posted: 13 October 2012 2121 hrs

SINGAPORE: Wealthier Singaporeans seem to be buying more luxury goods, compared to the rich in other regional countries.

A survey of over 20,000 of the well-heeled across 11 countries, including Australia, South Korea and India, showed that purchases of designer goods by Singaporeans increased from 11 to 17 per cent over one year.

Those surveyed came from households with a minimum monthly income of S$13,000.

Singapore, Malaysia, Indonesia and Australia are among the countries where the well-to-do are not cutting back on luxury spending, according to a survey by research firm Ipsos.

Despite the global economic situation, wealthy Singaporeans are buying more watches worth over S$1,200.

Purchases of such timepieces are up from 19 per cent in 2011, to 24 per cent in 2012.

Buys of designer goods worth over S$1,200 by Singaporeans in the same period also rose by 6 per cent, said Steve Garton, executive director of Business Insights at Ipsos.

"People have got money, they've been careful with their money. There's no predicting what's going to happen in the future, except that they will continue to have assets, and will continue to want to have a quality of life that they can afford," he said.

Singaporeans seem to have also taken to fancy gadgets in a big way.

The survey said 33 per cent of them own tablet computers, with 29 per cent willing to buy one in the next year.

As for smartphones, 70 per cent of well-heeled Singaporeans own them now, up from 55 per cent in 2011.

- CNA/cc



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