Gold prices may hit US$1,700 end of Q3: analysts
By Stella Lee | Posted: 17 June 2011 2348 hrs
SINGAPORE : Gold prices are likely to break previous records, with lacklustre economic recovery in the US and concerns over uncertainty in the European debt markets giving support.
Analysts say the precious metal has gained in popularity as a safe haven investment, pushing up prices.
Besides stocking up on bullion, they say retail investors in Asia are also looking at other gold alternatives such as gold ETFs as part of portfolio diversification.
Gold prices have continued their upward march and analysts say prices are likely to hit US$1,700 an ounce by the end of the third quarter of this year.
Fears over Europe's sovereign debt crisis and the weakening US dollar have driven the gold market upwards.
Ong Yi Ling, investment analyst at Phillips Futures, said: "(Only) with acceleration of economic recovery and consumer confidence will there be a return to more risky assets."
Spot gold traded around US$1,528 an ounce in Asia on Friday. It stood at an all time high of US$1,563.70 in late April.
However, many analysts believe that investors should not put all their eggs into one gold basket.
Sean Mulhearn, global head of commodity sales at ANZ Bank, said: "Our philosophy is that a more balanced approach and a more balanced investment policy is a much smarter way of trying to invest in gold."
Other industry observers even consider gold as the safety net in an investment portfolio.
Albert Cheng, managing director, World Gold Council, said: "It is like an insurance to your portfolio, like life insurance to your life. As an insurance policy, you will only want to use it when you are in a distressed situation.
"In the case of a financial portfolio, when all other asset classes are going south, probably your gold is going up; but in reverse if all your asset classes are going up and your gold remains steady, that is exactly what your insurance policy is for."
Many observers also say that more and more Asian investors are seeking out alternative ways of making money from gold.
These include gold exchange traded funds, or ETFs, which are pegged to the underlying value of gold and traded like stocks, which are better suited to less sophisticated investors.
Analysts say gold ETFs are less risky than gold structured products, and require less sophisticated investment understanding.
Mulhearn said: "We have seen a lot of growth in the global ETFs - that doubled in size in the last 12 months - so we have seen a tremendous amount of money moving into the ETFs."
According to the World Gold Council, China has contributed to the rise in prices of the precious metal, but its total demand has yet to be fully priced into the market.
China's consumer demand for gold in the first quarter of this year alone exceeded 41 per cent of the demand for 2010 and overtook India as the largest investment market for physical bars and coins in 2010.
- CNA/al
- wong chee tat :)
Sunday, June 19, 2011
Unit prices for DBSS project in Tampines hit record high
Unit prices for DBSS project in Tampines hit record high
By Liang Kaixin | Posted: 16 June 2011 2322 hrs
SINGAPORE: Would you pay S$880,000 for a new HDB flat? That is the top price for a five-room unit at Centrale 8, the new Design-Build-and-Sell-Scheme in Tampines and it sets a new record, surpassing prices of some resale flats in the area.
Launch prices for five-room units range between S$685,000 and S$880,000. At 108 square metres, these are smaller than most new HDB flats, but potential customers said the units are better designed.
Centrale 8 is located near Tampines town centre, near upcoming developments. Its sales launch saw about 300 customers on Thursday morning. Applications for its 708 units close on June 21.
The National Development Ministry told Channel NewsAsia that the developers of DBSS projects have to ensure prices are affordable, and comparable to new HDB projects and the resale and private markets.
DBSS projects are open to households earning a combined income of up to S$10,000 a month.
Prices of Centrale 8 units are about twice that of an earlier DBSS project launched in Tampines five-years ago by the same developer. The developer said actual prices will be determined in July, when applications are processed.
Kuik Sing Beng, Executive Director at Sim Lian Group, said: "Five years ago, there was no announcement of the new Downtown Line interchange, as well as the new lifestyle hub. Comparatively, they can still afford a condominium in the suburban area, but this is very well-located, with all the new amenities. So I think the prices are reasonable."
-CNA/ac
- wong chee tat :)
By Liang Kaixin | Posted: 16 June 2011 2322 hrs
SINGAPORE: Would you pay S$880,000 for a new HDB flat? That is the top price for a five-room unit at Centrale 8, the new Design-Build-and-Sell-Scheme in Tampines and it sets a new record, surpassing prices of some resale flats in the area.
Launch prices for five-room units range between S$685,000 and S$880,000. At 108 square metres, these are smaller than most new HDB flats, but potential customers said the units are better designed.
Centrale 8 is located near Tampines town centre, near upcoming developments. Its sales launch saw about 300 customers on Thursday morning. Applications for its 708 units close on June 21.
The National Development Ministry told Channel NewsAsia that the developers of DBSS projects have to ensure prices are affordable, and comparable to new HDB projects and the resale and private markets.
DBSS projects are open to households earning a combined income of up to S$10,000 a month.
Prices of Centrale 8 units are about twice that of an earlier DBSS project launched in Tampines five-years ago by the same developer. The developer said actual prices will be determined in July, when applications are processed.
Kuik Sing Beng, Executive Director at Sim Lian Group, said: "Five years ago, there was no announcement of the new Downtown Line interchange, as well as the new lifestyle hub. Comparatively, they can still afford a condominium in the suburban area, but this is very well-located, with all the new amenities. So I think the prices are reasonable."
-CNA/ac
- wong chee tat :)
Khaw mulls larger combined BTO launches
Khaw mulls larger combined BTO launches
By Evelyn Choo | Posted: 18 June 2011 1815 hrs
SINGAPORE: National Development Minister Khaw Boon Wan says he is considering moving away from the current practice of monthly launches of Build-To-Order HDB flats and explore ways to have larger combined launches.
In the latest entry on his blog, Mr Khaw said he has been advised to do larger launches.
Mr Khaw thinks this is sound advice.
He said larger launches offer buyers a wider range of choices and reduce the odds of repeated disappointment.
Mr Khaw said he is working with the HDB to see how the June and July launches can be combined for a larger launch.
He also pledged to price them wisely, adding that they will certainly not be near the prices suggested in the recent Design, Build and Sell Scheme (DBSS) flats.
He was referring to a private developer's DBSS launch in Tampines, with the upper end of the 5-room units priced at S$880,000.
Noting that it has caused a stir in the social media, he said the negative reaction was not surprising.
Mr Khaw also explained the difference between DBSS developments and mainstream public housing projects built by the HDB.
He explained that DBSS is a class of housing type between HDB flats and executive condominiums/private condos.
DBSS forms a tiny portion of the total housing options for Singaporeans.
Mr Khaw pointed out that while HDB flats are designed and priced by HDB, DBSS flats are designed and priced by private developers.
He said if the private developer prices it too high and there are no takers, there will be no sales.
Mr Khaw said netizens would like his ministry to step in and tell the private developer to cut its price.
He explained that when private developers tender for the land, price control is not a term of the tender.
He added that if contracts that have been awarded can be varied arbitrarily, Singapore's reputation as a business hub will be damaged, with severe repercussions.
But he said netizens are not powerless.
He said if buyers find a price too high, they can walk away.
On his part, he is ramping up more BTO launches and pricing them appropriately.
He said the HDB is launching 25,000 units this year. Of these, 12,000 units have already been launched. Another 13,000 units will be launched later this year, averaging 1,800 units per month.
- CNA/ir
- wong chee tat :)
By Evelyn Choo | Posted: 18 June 2011 1815 hrs
SINGAPORE: National Development Minister Khaw Boon Wan says he is considering moving away from the current practice of monthly launches of Build-To-Order HDB flats and explore ways to have larger combined launches.
In the latest entry on his blog, Mr Khaw said he has been advised to do larger launches.
Mr Khaw thinks this is sound advice.
He said larger launches offer buyers a wider range of choices and reduce the odds of repeated disappointment.
Mr Khaw said he is working with the HDB to see how the June and July launches can be combined for a larger launch.
He also pledged to price them wisely, adding that they will certainly not be near the prices suggested in the recent Design, Build and Sell Scheme (DBSS) flats.
He was referring to a private developer's DBSS launch in Tampines, with the upper end of the 5-room units priced at S$880,000.
Noting that it has caused a stir in the social media, he said the negative reaction was not surprising.
Mr Khaw also explained the difference between DBSS developments and mainstream public housing projects built by the HDB.
He explained that DBSS is a class of housing type between HDB flats and executive condominiums/private condos.
DBSS forms a tiny portion of the total housing options for Singaporeans.
Mr Khaw pointed out that while HDB flats are designed and priced by HDB, DBSS flats are designed and priced by private developers.
He said if the private developer prices it too high and there are no takers, there will be no sales.
Mr Khaw said netizens would like his ministry to step in and tell the private developer to cut its price.
He explained that when private developers tender for the land, price control is not a term of the tender.
He added that if contracts that have been awarded can be varied arbitrarily, Singapore's reputation as a business hub will be damaged, with severe repercussions.
But he said netizens are not powerless.
He said if buyers find a price too high, they can walk away.
On his part, he is ramping up more BTO launches and pricing them appropriately.
He said the HDB is launching 25,000 units this year. Of these, 12,000 units have already been launched. Another 13,000 units will be launched later this year, averaging 1,800 units per month.
- CNA/ir
- wong chee tat :)
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