Housing bubble slowly shrinking?
Beijing's efforts to deter property speculators look to be paying off
11:55 AM Aug 10, 2010
BEIJING - China's property prices rose at the slowest pace in six months in July as the government clamped down on speculation to prevent asset bubbles and keep housing affordable.
Prices in 70 major cities climbed 10.3 per cent from a year earlier, the Statistic Bureau's newspaper, China Information News, reported this morning. That was less than an 11.4-per-cent increase in June and the median estimate of 10.5 per cent in a Bloomberg survey of eight economists.
China's banking regulator said on Friday that the government will maintain policies to cool the property market, damping speculation that slowing economic growth would encourage an easing of the measures. The regulator has told lenders to conduct stress tests to gauge the impact of home prices falling as much as 60 per cent in the hardest-hit markets, a source said last week.
"The government's resolve on property curbs will be tested as increasing risks to external demand and slowing domestic production and investment cool growth later this year," said Mizuho Securities Asia economist Shen Jianguang. "The government may continue to rein in property speculation, but some of the most stringent measures may be adjusted at the end of this year when price corrections start to spur transactions."
Restrictions imposed by the government this year have included higher down-payment and mortgage rates for multiple- home buyers and instructions for lenders to halt third-home loans in areas with "excessive price gains".
Price increases have slowed from a record 12.8 per cent gain in April. Prices were unchanged in July from June, following a 0.1 per cent month-on-month decline in June that was the first decrease in 16 months.
Investment in real-estate development rose 37.2 per cent in the first seven months of 2010 from a year earlier to 2.39 trillion yuan ($476 billion) after a 38.1-per-cent gain in the first six months, the newspaper said. BLOOMBERG
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Wednesday, August 11, 2010
ST : Liveable cities: S'pore exports its expertise
Aug 11, 2010
Liveable cities: S'pore exports its expertise
Foreign officials flock here to learn about urban management
By Amresh Gunasingham
SINGAPORE is enhancing its reputation as the go-to classroom for other countries hoping to learn how to build the liveable cities of tomorrow.
Officials from 40 countries including China, India and nations in the Middle East have come here in the past year to study the nuts and bolts of building landfills, managing waste and recycling water for industrial use and drinking.
And homegrown companies such as Keppel Seghers and Sembcorp have gone abroad, to the Middle East for example, to sell their technological know-how.
They have found rich pickings. In the past three years, they have signed deals to build water and waste-treatment facilities worth upwards of $4 billion.
Associate Professor Simon Tay, who chairs the Singapore Institute of International Affairs, said Singapore's leap from being a Third- to a First-World metro-polis has produced many lessons from which growing cities in Asia and beyond can draw. By combining technology with pragmatic policy-making, it continues to be a test bed for innovative technologies sought after as a model of the way to go, said Prof Tay, who used to chair the National Environment Agency (NEA).
Prime examples of cities which have learnt from Singapore are Tianjin, which is developing its Eco-city, and Guangzhou, with its Knowledge City.
Mr Michael Chia, the chief executive of Keppel Integrated Engineering, said: 'With more communities around the world realising that reliable and proven technology can provide effective solutions for waste-water treatment and waste management, there's an increasing demand for such technologies.'
Agencies such as the Economic Development Board and International Enterprise Singapore, which have been pushing the 'Singapore Inc' brand overseas, have their work cut out for them as countries strive for economic advancement that is, at the same time, environmentally sustainable.
The NEA, for example, has shared its knowledge of how to build and maintain landfills to contain waste in space-constrained cities, using its offshore Semakau Landfill as an exhibit.
The NEA also showcases the systems it uses to monitor key environmental indicators such as pollution levels and meteorological data, said its director of industry development and promotion Dalson Chung.
But what sort of trickle-down effect will this growing recognition of Singapore's expertise have here, particularly at a time when the public is openly questioning, for example, the capacity of the drainage system to cope with floods?
Prof Tay named two benefits: One is that tapping green technology will build the tools to further enhance Singapore's landscape.
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and
everyday activities like outdoor dining, whether at the hawker centre or stylish cafes,' he said.
The other benefit takes the form of economic trickle-down from there being more companies providing environmental services on a global scale, he said.
amreshg@sph.com.sg
--------------------------------------------------------------------------------
ADDING VALUE
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and everyday activities like outdoor dining.'
Singapore Institute of International Affairs chairman Simon Tay, on the benefits of growing recognition of Singapore's expertise
Liveable cities: S'pore exports its expertise
Foreign officials flock here to learn about urban management
By Amresh Gunasingham
SINGAPORE is enhancing its reputation as the go-to classroom for other countries hoping to learn how to build the liveable cities of tomorrow.
Officials from 40 countries including China, India and nations in the Middle East have come here in the past year to study the nuts and bolts of building landfills, managing waste and recycling water for industrial use and drinking.
And homegrown companies such as Keppel Seghers and Sembcorp have gone abroad, to the Middle East for example, to sell their technological know-how.
They have found rich pickings. In the past three years, they have signed deals to build water and waste-treatment facilities worth upwards of $4 billion.
Associate Professor Simon Tay, who chairs the Singapore Institute of International Affairs, said Singapore's leap from being a Third- to a First-World metro-polis has produced many lessons from which growing cities in Asia and beyond can draw. By combining technology with pragmatic policy-making, it continues to be a test bed for innovative technologies sought after as a model of the way to go, said Prof Tay, who used to chair the National Environment Agency (NEA).
Prime examples of cities which have learnt from Singapore are Tianjin, which is developing its Eco-city, and Guangzhou, with its Knowledge City.
Mr Michael Chia, the chief executive of Keppel Integrated Engineering, said: 'With more communities around the world realising that reliable and proven technology can provide effective solutions for waste-water treatment and waste management, there's an increasing demand for such technologies.'
Agencies such as the Economic Development Board and International Enterprise Singapore, which have been pushing the 'Singapore Inc' brand overseas, have their work cut out for them as countries strive for economic advancement that is, at the same time, environmentally sustainable.
The NEA, for example, has shared its knowledge of how to build and maintain landfills to contain waste in space-constrained cities, using its offshore Semakau Landfill as an exhibit.
The NEA also showcases the systems it uses to monitor key environmental indicators such as pollution levels and meteorological data, said its director of industry development and promotion Dalson Chung.
But what sort of trickle-down effect will this growing recognition of Singapore's expertise have here, particularly at a time when the public is openly questioning, for example, the capacity of the drainage system to cope with floods?
Prof Tay named two benefits: One is that tapping green technology will build the tools to further enhance Singapore's landscape.
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and
everyday activities like outdoor dining, whether at the hawker centre or stylish cafes,' he said.
The other benefit takes the form of economic trickle-down from there being more companies providing environmental services on a global scale, he said.
amreshg@sph.com.sg
--------------------------------------------------------------------------------
ADDING VALUE
'This is a green infrastructure that adds to the value and appeal of the city and underscores property prices and everyday activities like outdoor dining.'
Singapore Institute of International Affairs chairman Simon Tay, on the benefits of growing recognition of Singapore's expertise
ST : Expect quiet month for property sales
Aug 11, 2010
Expect quiet month for property sales
Ghost festival and lack of big launches spell lean month ahead, say experts
By Joyce Teo
SUPERSTITION is likely to get the better of some buyers during the rest of this month as the effects of the traditionally quiet Hungry Ghost Festival begin to be felt.
During the festival - which started yesterday and will last until Sept 7 - superstitious individuals shun major commitments such as buying a property or getting married. And experts predict that this year's festival looks set to spell a lull in sales amid a lack of new major launches.
This time last year, NTUC Choice Homes defied superstition with the successful launch of its 590-unit Trevista in Toa Payoh.
But it is unlikely there will be any similar major launches to buoy sales during this year's festival, experts said.
City Developments' 642-unit Pasir Ris project is planned for release in the current quarter, but no firm date has been given. No major launches were staged over the weekend.
Mr Peter Ow, managing director (residential services) at Knight Frank, said: 'This year's Hungry Ghost month will be quieter because whatever needs to be launched has already been pushed out.'
There were a few new launches in the run-up to the festival, with many units snapped up.
Yesterday, Far East Organization reported brisk pre-festival interest over the past week in The Greenwich in the Seletar Hills area.
Another 94 units of the 319-unit project were sold following the start of a private preview on Aug 2, when it moved 80 units. It has sold 174 homes in total, with the average price achieved rising to $1,025 per sq ft from $980 psf last Monday.
Nearly half of the units sold have been one-bedroom units of 603 sq ft to 721 sq ft, priced from $657,000 to $850,000.
Far East said it was on course to launch the project early next month.
At the 46-unit Suites@Topaz in Potong Pasir, there are just a few penthouses left after sales started around the middle of last week, said an industry source.
He said there may be some project launches of fewer than 200 units each this month, if developers are able to get all the necessary documents in place.
Meanwhile, the 172-unit Terrene sold its remaining unit last Saturday. And Hong Leong Holdings said it sold 35 units of its 468-unit The Scala over the long weekend, leaving fewer than 15 units left.
Mr Steven Tan, executive director of OrangeTee's residential division, thinks it is sentiment and a lack of major new launches, rather than superstition, that will underpin the predicted quiet August.
'Nowadays, people don't really care about the Hungry Ghost month. It's all about the sentiment, which is not very strong at the moment,' he said.
And experts report that sales have generally slowed because developers are holding their prices.
'If I am pricing a project to sell, I would push it out now. There will be interest. But if I want to hit benchmark pricing, I have to be careful with the timing of the launch,' said Knight Frank's Mr Ow.
He pointed out that developers had no need to rush given that they are depleting their land banks.
'With recent tender prices being so high, there is even more reason for them to hold back their launches to wait for firmer prices,' Mr Ow said.
joyceteo@sph.com.sg
Expect quiet month for property sales
Ghost festival and lack of big launches spell lean month ahead, say experts
By Joyce Teo
SUPERSTITION is likely to get the better of some buyers during the rest of this month as the effects of the traditionally quiet Hungry Ghost Festival begin to be felt.
During the festival - which started yesterday and will last until Sept 7 - superstitious individuals shun major commitments such as buying a property or getting married. And experts predict that this year's festival looks set to spell a lull in sales amid a lack of new major launches.
This time last year, NTUC Choice Homes defied superstition with the successful launch of its 590-unit Trevista in Toa Payoh.
But it is unlikely there will be any similar major launches to buoy sales during this year's festival, experts said.
City Developments' 642-unit Pasir Ris project is planned for release in the current quarter, but no firm date has been given. No major launches were staged over the weekend.
Mr Peter Ow, managing director (residential services) at Knight Frank, said: 'This year's Hungry Ghost month will be quieter because whatever needs to be launched has already been pushed out.'
There were a few new launches in the run-up to the festival, with many units snapped up.
Yesterday, Far East Organization reported brisk pre-festival interest over the past week in The Greenwich in the Seletar Hills area.
Another 94 units of the 319-unit project were sold following the start of a private preview on Aug 2, when it moved 80 units. It has sold 174 homes in total, with the average price achieved rising to $1,025 per sq ft from $980 psf last Monday.
Nearly half of the units sold have been one-bedroom units of 603 sq ft to 721 sq ft, priced from $657,000 to $850,000.
Far East said it was on course to launch the project early next month.
At the 46-unit Suites@Topaz in Potong Pasir, there are just a few penthouses left after sales started around the middle of last week, said an industry source.
He said there may be some project launches of fewer than 200 units each this month, if developers are able to get all the necessary documents in place.
Meanwhile, the 172-unit Terrene sold its remaining unit last Saturday. And Hong Leong Holdings said it sold 35 units of its 468-unit The Scala over the long weekend, leaving fewer than 15 units left.
Mr Steven Tan, executive director of OrangeTee's residential division, thinks it is sentiment and a lack of major new launches, rather than superstition, that will underpin the predicted quiet August.
'Nowadays, people don't really care about the Hungry Ghost month. It's all about the sentiment, which is not very strong at the moment,' he said.
And experts report that sales have generally slowed because developers are holding their prices.
'If I am pricing a project to sell, I would push it out now. There will be interest. But if I want to hit benchmark pricing, I have to be careful with the timing of the launch,' said Knight Frank's Mr Ow.
He pointed out that developers had no need to rush given that they are depleting their land banks.
'With recent tender prices being so high, there is even more reason for them to hold back their launches to wait for firmer prices,' Mr Ow said.
joyceteo@sph.com.sg
BT : Developers expect hike in M'sia housing prices in H2
Business Times - 11 Aug 2010
Developers expect hike in M'sia housing prices in H2
Rising raw material costs, inflationary pressure are among key reasons: Rehda
By PAULINE NG
IN KUALA LUMPUR
MALAYSIAN developers expect housing to cost up to 20 per cent more in the second half of this year, as raw material prices increase and supply tightens in popular areas.
The price of landed property in particular is expected to rise in two hot spots - the Klang Valley and Penang, where recent launches have drawn strong interest and set new price benchmarks.
Mid-year launches of terraced and semi-detached houses and bungalows have sparked huge turnouts.
For example, at the launch of the latest phase of Desa Parkcity - a new township development in the Klang Valley about 35 minutes from central Kuala Lumpur - all 147 units were snapped up in just five hours despite record prices of RM1.7 million (S$731,100) to RM2.1 million for two and three-storey link homes.
More than 650 registrants were reportedly present for the balloting exercise - each armed with a bank draft of RM50,000 to RM100,000.
Developers ramped up the supply of landed homes in the first half of the year. Launches of terraced houses were unchanged at about 35 per cent of all launches. But there was a 9 per cent jump in the number of semi-detached and bungalow launches compared with H2 last year, according to the Real Estate & Housing Developers Association (Rehda).
Even so, most homes are in the low to middle cost segment, with those priced between RM25,000 and RM250,000 accounting for 80 per cent of all units.
Rehda says homes will cost more for several reasons, including ample liquidity, reasonable mortgage rates, appreciating land prices, continuous population growth, urbanisation and demand for a better lifestyle.
However, it rates inflationary pressure, rising raw material costs and the removal of subsidies as major reasons for price increases.
About 40 per cent of Rehda members expect prices to rise as much as 10 per cent in the current half year - and a similar number project a 10-20 per cent rise.
As the population of the Klang Valley and Penang continues to grow - mainly because of inter-state migration - land is costing more. For example, Singapore's City Developments Ltd is reportedly looking to dispose of a parcel plot in Kuala Lumpur's golden triangle for RM3,000 per square foot, or 15 per cent more than the last transacted price in the area.
In comparison with Singapore and UK developers, Rehda says Malaysian developers make an average profit of only 15 per cent. It says land accounts for a mere 15 per cent of total costs in Malaysia, while construction costs make up a whopping 70 per cent.
Rehda pegs the average profit of Singapore developers at 20 per cent, with land and construction costs each accounting for 40 per cent of total costs.
Because the Malaysian authorities require local developers to meet various obligations - such as building a percentage of low-cost houses and providing sewerage and roads - overall construction costs are high.
On top of this, mandatory discounts of 5-15 per cent for bumiputra buyers further bump up costs.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Developers expect hike in M'sia housing prices in H2
Rising raw material costs, inflationary pressure are among key reasons: Rehda
By PAULINE NG
IN KUALA LUMPUR
MALAYSIAN developers expect housing to cost up to 20 per cent more in the second half of this year, as raw material prices increase and supply tightens in popular areas.
The price of landed property in particular is expected to rise in two hot spots - the Klang Valley and Penang, where recent launches have drawn strong interest and set new price benchmarks.
Mid-year launches of terraced and semi-detached houses and bungalows have sparked huge turnouts.
For example, at the launch of the latest phase of Desa Parkcity - a new township development in the Klang Valley about 35 minutes from central Kuala Lumpur - all 147 units were snapped up in just five hours despite record prices of RM1.7 million (S$731,100) to RM2.1 million for two and three-storey link homes.
More than 650 registrants were reportedly present for the balloting exercise - each armed with a bank draft of RM50,000 to RM100,000.
Developers ramped up the supply of landed homes in the first half of the year. Launches of terraced houses were unchanged at about 35 per cent of all launches. But there was a 9 per cent jump in the number of semi-detached and bungalow launches compared with H2 last year, according to the Real Estate & Housing Developers Association (Rehda).
Even so, most homes are in the low to middle cost segment, with those priced between RM25,000 and RM250,000 accounting for 80 per cent of all units.
Rehda says homes will cost more for several reasons, including ample liquidity, reasonable mortgage rates, appreciating land prices, continuous population growth, urbanisation and demand for a better lifestyle.
However, it rates inflationary pressure, rising raw material costs and the removal of subsidies as major reasons for price increases.
About 40 per cent of Rehda members expect prices to rise as much as 10 per cent in the current half year - and a similar number project a 10-20 per cent rise.
As the population of the Klang Valley and Penang continues to grow - mainly because of inter-state migration - land is costing more. For example, Singapore's City Developments Ltd is reportedly looking to dispose of a parcel plot in Kuala Lumpur's golden triangle for RM3,000 per square foot, or 15 per cent more than the last transacted price in the area.
In comparison with Singapore and UK developers, Rehda says Malaysian developers make an average profit of only 15 per cent. It says land accounts for a mere 15 per cent of total costs in Malaysia, while construction costs make up a whopping 70 per cent.
Rehda pegs the average profit of Singapore developers at 20 per cent, with land and construction costs each accounting for 40 per cent of total costs.
Because the Malaysian authorities require local developers to meet various obligations - such as building a percentage of low-cost houses and providing sewerage and roads - overall construction costs are high.
On top of this, mandatory discounts of 5-15 per cent for bumiputra buyers further bump up costs.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Paya Lebar, Hougang sites for en bloc sale
Business Times - 11 Aug 2010
Paya Lebar, Hougang sites for en bloc sale
Charlesville price tag $31m; Naung Court $28-30m
By EMILYN YAP
THE collective sale market continues to gain momentum, with two freehold residential sites at Paya Lebar and Hougang up for tender.
Huttons is handling the sale of Charlesville, a five-storey 18-unit development at Upper Paya Lebar Road. Sixteen of the 18 owners have agreed to the sale and the asking price is around $31 million.
The site is 34,160 sq ft and has a plot ratio of 1.4. Charlesville's existing gross floor area (GFA) is about 42,000 sq ft, but a developer can build a new project with a GFA of up to 52,600 sq ft, including an additional 10 per cent of space allowed for balconies.
A development charge of about $2.9 million will be payable. The tender for Charlesville closes on Aug 18.
Not too far away at Jalan Naung, the four-storey 20-unit Naung Court is also up for sale. Jones Lang LaSalle is handling the tender, and the indicative price is $28-30 million.
The 32,689 sq ft site has a gross plot ratio of 1.4 and can accommodate a five-storey project. The winning developer can build a project with a GFA of up to 45,764 sq ft, subject to payment of a development charge of around $2.7 million.
Naung Court is within walking distance of Hougang MRT station, Hougang bus interchange and Hougang Mall.
Jones Lang LaSalle national director and investments head Stella Hoh reckons the site will attract strong interest, pointing out that new residential launches in the vicinity have enjoyed good take-up rates.
For instance, in June, Kheng Leong sold 173 of 200 units launched at The Minton at Lorong Ah Soo. The median price was $871 per sq ft.
Ms Hoh said Naung Court site is a 'good bite size' for private investors, contractors and developers. The tender closes on Sept 14.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Paya Lebar, Hougang sites for en bloc sale
Charlesville price tag $31m; Naung Court $28-30m
By EMILYN YAP
THE collective sale market continues to gain momentum, with two freehold residential sites at Paya Lebar and Hougang up for tender.
Huttons is handling the sale of Charlesville, a five-storey 18-unit development at Upper Paya Lebar Road. Sixteen of the 18 owners have agreed to the sale and the asking price is around $31 million.
The site is 34,160 sq ft and has a plot ratio of 1.4. Charlesville's existing gross floor area (GFA) is about 42,000 sq ft, but a developer can build a new project with a GFA of up to 52,600 sq ft, including an additional 10 per cent of space allowed for balconies.
A development charge of about $2.9 million will be payable. The tender for Charlesville closes on Aug 18.
Not too far away at Jalan Naung, the four-storey 20-unit Naung Court is also up for sale. Jones Lang LaSalle is handling the tender, and the indicative price is $28-30 million.
The 32,689 sq ft site has a gross plot ratio of 1.4 and can accommodate a five-storey project. The winning developer can build a project with a GFA of up to 45,764 sq ft, subject to payment of a development charge of around $2.7 million.
Naung Court is within walking distance of Hougang MRT station, Hougang bus interchange and Hougang Mall.
Jones Lang LaSalle national director and investments head Stella Hoh reckons the site will attract strong interest, pointing out that new residential launches in the vicinity have enjoyed good take-up rates.
For instance, in June, Kheng Leong sold 173 of 200 units launched at The Minton at Lorong Ah Soo. The median price was $871 per sq ft.
Ms Hoh said Naung Court site is a 'good bite size' for private investors, contractors and developers. The tender closes on Sept 14.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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Pre-development Land Investing
In business for over 30 years, success in providing real estate investment opportunities to clients around the world is a simple, yet effective separation of roles and responsibilites. The four pillars of strength guide the land from the research and acquisition, through to the exit, including the distribution of proceeds to our clients ......
To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
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