$500 billion worth of US property values wiped off this year
Dec 14, 2009 - PropertyGuru.com.sg
About $500 billion has been wiped off the US residential property values this year, but this figure is less than the 2008 values. Research shows that almost one in three markets has seen price increases this year.
The recent Zillow Real Estate Markets Report showed that losses slowed significantly in 2009 from £3.6 trillion in the previous year when the property bubble burst.
But as property prices are now stabilizing, most areas see an increase of its market values.
The Boston metro area had the biggest gain with $23 billion and 48 out of 154 property markets showed an increase this year. Providence and Rhode Island had the second highest gain with an increase of $12.4 billion.
But single-family home owners, who have a higher mortgage obligation than the worth of their property had declined to 21 percent from last year’s 23 percent. Increasing mortgage rates and foreclosures will hold back the recovery of real estate market, said Zillow.
Zillow's chief economist, Stan Humphries said, “Most housing markets across the country had a good summer, spurred largely by the government's tax credits for homebuyers combined with very low mortgage rates.”
“Unfortunately, we believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high.”
“Both these factors will challenge the recent stabilization of home prices,” he added.
Los Angeles accounted the worst decline in values of about $60.8 billion. Chicago’s values fell to $49.6 billion, NY’s property values slumped $49 billion while Miami-Fort Lauderdale saw values drop to $46 billion.
Meanwhile, property prices continued to drop in October, falling 0.5 percent across the country, according to the latest data showed by Integrates Asset Services.
IAS CEO and president, Dave McCarthy, said prices will continue to fall if the unemployment rate increases as more financially-stretched borrowers foreclose.
“There is potential for another wave of inventory next year, both from private sellers and banks,” said Mr. McCarthy
“The risk of renewed home price declines remains significant,” he added.
Monday, December 14, 2009
Singaporeans can expect more high-quality flats
Singaporeans can expect more high-quality flats
Dec 14, 2009 - PropertyGuru.com.sg
Minister Mentor Lee Kuan Yew said yesterday that more public housing of higher quality, like the landmark The Pinnacle@Duxton, will replace old flats. This will happen as long as the nation continues to perform well.
Prices of flats are then expected to continue rising as the economy of Singapore improves, he added.
The Singapore government will assist young couples to get their own flats and HDB will continue to build more affordable homes, so that "each generation of Singaporeans will continue to have a stake in the nation,” Mr. Lee said.
However, Singaporeans must not seek to make any speculative buys or make an immediate buck out of the resale of HDB flats.
Speaking at a ceremony of the turning over of keys to The Pinnacle@ Duxton flat residents, MM Lee regarded the 50-storey project with 1,800 units as a "significant milestone".
The Pinnacle@ Duxton is the tallest HDB development in Singapore and the first whose design was chosen through an international competition. It also happens to have one of the longest continuous sky gardens in the world, which is formed by 12 sky bridges connecting its seven blocks.
Situated in the city centre, the site could have been sold to develop private condos, but the government preferred to build public housing in the area to share "the growth of the city with the people who built the city," said MM Lee.
If not for home ownership, which is fundamental for creating a sense of belonging to the nation, Singapore would not have progress, stability and prosperity.
“It is critical for an immigrant community from all parts of the world, with no common history, to quickly establish their roots here. And you establish your roots when you own a new home,” he said.
The pride of the people in their homes has "prevented our estates from turning into slums, which is often the fate of public-housing estates in other countries," he added.
“The Pinnacle@Duxton is a strong testament to our tenacity and capabilities as a people, to get to where we (are today).”
“We have yet to reach the pinnacle of our growth. The future of Asia has never looked better. The growth potential for Singapore is tremendous if we stay united and work intelligently and hard.”
Dec 14, 2009 - PropertyGuru.com.sg
Minister Mentor Lee Kuan Yew said yesterday that more public housing of higher quality, like the landmark The Pinnacle@Duxton, will replace old flats. This will happen as long as the nation continues to perform well.
Prices of flats are then expected to continue rising as the economy of Singapore improves, he added.
The Singapore government will assist young couples to get their own flats and HDB will continue to build more affordable homes, so that "each generation of Singaporeans will continue to have a stake in the nation,” Mr. Lee said.
However, Singaporeans must not seek to make any speculative buys or make an immediate buck out of the resale of HDB flats.
Speaking at a ceremony of the turning over of keys to The Pinnacle@ Duxton flat residents, MM Lee regarded the 50-storey project with 1,800 units as a "significant milestone".
The Pinnacle@ Duxton is the tallest HDB development in Singapore and the first whose design was chosen through an international competition. It also happens to have one of the longest continuous sky gardens in the world, which is formed by 12 sky bridges connecting its seven blocks.
Situated in the city centre, the site could have been sold to develop private condos, but the government preferred to build public housing in the area to share "the growth of the city with the people who built the city," said MM Lee.
If not for home ownership, which is fundamental for creating a sense of belonging to the nation, Singapore would not have progress, stability and prosperity.
“It is critical for an immigrant community from all parts of the world, with no common history, to quickly establish their roots here. And you establish your roots when you own a new home,” he said.
The pride of the people in their homes has "prevented our estates from turning into slums, which is often the fate of public-housing estates in other countries," he added.
“The Pinnacle@Duxton is a strong testament to our tenacity and capabilities as a people, to get to where we (are today).”
“We have yet to reach the pinnacle of our growth. The future of Asia has never looked better. The growth potential for Singapore is tremendous if we stay united and work intelligently and hard.”
Higher prices for The Pinnacle@Duxton shows strong demand
Higher prices for The Pinnacle@Duxton shows strong demand
Dec 14, 2009 - PropertyGuru.com.sg
The higher prices achieved for The Pinnacle@Duxton on its second launch were a sign of strong demand, said Minister Mentor Lee Kuan Yew yesterday.
'Even though prices of the flats at the second launch in 2008 were higher, the demand for the flats was still very strong. The higher prices reflect the demand for the flats; they reflect the market demand,' said Mr. Lee during the hand over ceremony for The Pinnacle@Duxton.
The Pinnacle@Duxton is a 50-storey public housing project that was first launched in May 2004. Some of the remaining flats were re-launched in September 2008 and 111 five-room units were put up for sale at around $545,000 to $645,800.
When it was first introduced in 2004, four-room units were worth $289,200 while most of the five-room units were offered for about $439,400.
Mr. Lee said that pricing of HDB flats is very important as it reflects its true value.
“We cannot price a new flat in Punggol or Tanjong Pagar the same because when they are re-sold, we know there will be a tremendous difference in price,” he said.
“From the 1980s, we moved towards a market-based system. By liberalising the resale market and allowing HDB prices to move in tandem with the economy, we unlocked the value of HDB flats to allow citizens to share in the fruits of the nation's growth. Home ownership of a HDB flat is a store of value that can be monetised when need be.”
The development of The Pinnacle@Duxton, which is the tallest public housing project in the country, features 12 sky bridges that are linked in all seven buildings. The sky bridges will be launched on January 1.
The development also includes other amenities like a childcare centre, food court, basketball court and 800-metre jogging track.
The Pinnacle@Duxton houses a total of 1,848 flats. Its construction has been completed, except for some minor jobs such as the landscaping.
Dec 14, 2009 - PropertyGuru.com.sg
The higher prices achieved for The Pinnacle@Duxton on its second launch were a sign of strong demand, said Minister Mentor Lee Kuan Yew yesterday.
'Even though prices of the flats at the second launch in 2008 were higher, the demand for the flats was still very strong. The higher prices reflect the demand for the flats; they reflect the market demand,' said Mr. Lee during the hand over ceremony for The Pinnacle@Duxton.
The Pinnacle@Duxton is a 50-storey public housing project that was first launched in May 2004. Some of the remaining flats were re-launched in September 2008 and 111 five-room units were put up for sale at around $545,000 to $645,800.
When it was first introduced in 2004, four-room units were worth $289,200 while most of the five-room units were offered for about $439,400.
Mr. Lee said that pricing of HDB flats is very important as it reflects its true value.
“We cannot price a new flat in Punggol or Tanjong Pagar the same because when they are re-sold, we know there will be a tremendous difference in price,” he said.
“From the 1980s, we moved towards a market-based system. By liberalising the resale market and allowing HDB prices to move in tandem with the economy, we unlocked the value of HDB flats to allow citizens to share in the fruits of the nation's growth. Home ownership of a HDB flat is a store of value that can be monetised when need be.”
The development of The Pinnacle@Duxton, which is the tallest public housing project in the country, features 12 sky bridges that are linked in all seven buildings. The sky bridges will be launched on January 1.
The development also includes other amenities like a childcare centre, food court, basketball court and 800-metre jogging track.
The Pinnacle@Duxton houses a total of 1,848 flats. Its construction has been completed, except for some minor jobs such as the landscaping.
HDB flats will appreciate in value as long as economy grows
HDB flats will appreciate in value as long as economy grows
Dec 14, 2009 - PropertyGuru.com.sg
The value of public flats will continue to rise, as long as the Singapore economy continues to grow. With limited space, public housing appears all set to go up – with more skyscraper units to be launched.
According to Minister Mentor Lee Kuan Yew, The Pinnacle@Duxton is the tallest HDB development in Singapore with 50 storeys.
The first rental HDB blocks along Tanjong Pagar were constructed in 1963 on the site where Pinnacle@Duxton is situated. It is currently the tallest HDB project in Singapore.
Mr. Lee attributed the change to an early policy resolution to construct a home-owning society. It is what encourages Singaporeans to upgrade this asset for a better life, something which rental flats could not offer.
Moving forward, Mr Lee anticipates more of such flats to be launched.
“The Pinnacle@Duxton is therefore a good example that if the nation continues to do well, we can build more flats of this standard. But we should not make a quick profit from a resale of HDB flats,” he said.
“The rules on minimum occupation and requirement for family units nucleus are to discourage speculative purchases.”
The government could have built a condo in this central area but preferred to construct HDB flats and share the city’s growth with the people who had once rented flats in the area, said Mr. Lee in an interview.
In response to questions regarding young couples who are curious about the affordability of flats, he said that this is related to the growth of the country – if the country is performing well, prices of properties will increase.
However, if the economy declines, unemployment rate will rise but values of property and incomes will go down.
“Well, it's a very special problem we face because we can't expand the city laterally, we have to expand the city vertically. Yes, we can have more (land) reclamations but that's only about 10, 15 percent and we've reached the limit. he said. Therefore, I see more and more of the old blocks being demolished and new blocks like The Pinnacle@Duxton being built," he said.
Dec 14, 2009 - PropertyGuru.com.sg
The value of public flats will continue to rise, as long as the Singapore economy continues to grow. With limited space, public housing appears all set to go up – with more skyscraper units to be launched.
According to Minister Mentor Lee Kuan Yew, The Pinnacle@Duxton is the tallest HDB development in Singapore with 50 storeys.
The first rental HDB blocks along Tanjong Pagar were constructed in 1963 on the site where Pinnacle@Duxton is situated. It is currently the tallest HDB project in Singapore.
Mr. Lee attributed the change to an early policy resolution to construct a home-owning society. It is what encourages Singaporeans to upgrade this asset for a better life, something which rental flats could not offer.
Moving forward, Mr Lee anticipates more of such flats to be launched.
“The Pinnacle@Duxton is therefore a good example that if the nation continues to do well, we can build more flats of this standard. But we should not make a quick profit from a resale of HDB flats,” he said.
“The rules on minimum occupation and requirement for family units nucleus are to discourage speculative purchases.”
The government could have built a condo in this central area but preferred to construct HDB flats and share the city’s growth with the people who had once rented flats in the area, said Mr. Lee in an interview.
In response to questions regarding young couples who are curious about the affordability of flats, he said that this is related to the growth of the country – if the country is performing well, prices of properties will increase.
However, if the economy declines, unemployment rate will rise but values of property and incomes will go down.
“Well, it's a very special problem we face because we can't expand the city laterally, we have to expand the city vertically. Yes, we can have more (land) reclamations but that's only about 10, 15 percent and we've reached the limit. he said. Therefore, I see more and more of the old blocks being demolished and new blocks like The Pinnacle@Duxton being built," he said.
ST : Pinnacle of living in S'pore
Dec 14, 2009
Pinnacle of living in S'pore
By Shawn Lee Miller
MM Lee (extreme left) hands over keys to owners of new flats at the Pinnacle@Duxton. -- ST PHOTO: LAU FOOK KONG
WHAT better high for new house buyers than getting the keys to their new home?
But for Mr Venketroyalu, 38, welcoming Minister Mentor Lee Kuan Yew as the first house guest to his new flat was definitely the highest point of his day.
Mr Venketroyalu was among the first few home owners to receive the keys to his new apartment at Pinnacle@Duxton last Saturday.
Pinnacle@Duxton stands on the same plot of land where MM Lee, who was then MP for Tanjong Pagar, unveiled the first rental blocks in the Tanjong Pagar constituency in 1964.
MM Lee, who was there to visit the new crown jewel in Singapore's public housing programme, described the event as a symbolic milestone.
Mr Venketroyalu himself used to stay in the old rental flats back in 1977.
When asked about the difference between then and now, he said: 'When I walk down the street and look up, it doesn't look like Singapore. It's like I'm in New York. It's an amazing look, fantastic.'
A testament to the changing face of Singapore, the 50-storey high Pinnacle@Duxton also boasts a skygarden which offers a panaromic view of the Singapore skyline.
Members of the public can go up to the skygarden for $5 to admire the view, and will be able to ballot for a spot to catch special events like the NDP fireworks.
For more on what MM Lee had to say about the Pinnacle@Duxton and public housing in Singapore, visit RazorTV.
Pinnacle of living in S'pore
By Shawn Lee Miller
MM Lee (extreme left) hands over keys to owners of new flats at the Pinnacle@Duxton. -- ST PHOTO: LAU FOOK KONG
WHAT better high for new house buyers than getting the keys to their new home?
But for Mr Venketroyalu, 38, welcoming Minister Mentor Lee Kuan Yew as the first house guest to his new flat was definitely the highest point of his day.
Mr Venketroyalu was among the first few home owners to receive the keys to his new apartment at Pinnacle@Duxton last Saturday.
Pinnacle@Duxton stands on the same plot of land where MM Lee, who was then MP for Tanjong Pagar, unveiled the first rental blocks in the Tanjong Pagar constituency in 1964.
MM Lee, who was there to visit the new crown jewel in Singapore's public housing programme, described the event as a symbolic milestone.
Mr Venketroyalu himself used to stay in the old rental flats back in 1977.
When asked about the difference between then and now, he said: 'When I walk down the street and look up, it doesn't look like Singapore. It's like I'm in New York. It's an amazing look, fantastic.'
A testament to the changing face of Singapore, the 50-storey high Pinnacle@Duxton also boasts a skygarden which offers a panaromic view of the Singapore skyline.
Members of the public can go up to the skygarden for $5 to admire the view, and will be able to ballot for a spot to catch special events like the NDP fireworks.
For more on what MM Lee had to say about the Pinnacle@Duxton and public housing in Singapore, visit RazorTV.
ST : Home sales up but not in value
Dec 14, 2009
Home sales up but not in value
By Joyce Teo, Property Correspondent
ALMOST as many homes will be sold this year as in the previous boom of 2007, but the quantum of sales is still only at about 60 per cent of the previous peak.
This is because less high-end homes were sold this year, unlike in 2007 when these homes stole the limelight, according to a new report released on Monday by property consultancy CB Richard Ellis (CBRE).
The large-scale mass market projects that were either fully sold or nearly sold out this year include Caspian in Jurong, Double Bay Residences in Simei, Mi Casa in Choa Chu Kang, The Gale in Flora Road.
Successful mid-tier projects include The Arte and Vista Residences in Jalan Datoh.
Home sales up but not in value
By Joyce Teo, Property Correspondent
ALMOST as many homes will be sold this year as in the previous boom of 2007, but the quantum of sales is still only at about 60 per cent of the previous peak.
This is because less high-end homes were sold this year, unlike in 2007 when these homes stole the limelight, according to a new report released on Monday by property consultancy CB Richard Ellis (CBRE).
The large-scale mass market projects that were either fully sold or nearly sold out this year include Caspian in Jurong, Double Bay Residences in Simei, Mi Casa in Choa Chu Kang, The Gale in Flora Road.
Successful mid-tier projects include The Arte and Vista Residences in Jalan Datoh.
ST : Dubai govt statement on restructuring, aid
Dubai govt statement on restructuring, aid
THE following statement was issued by the government of Dubai:
STATEMENT FROM HH SHEIKH AHMAD BIN SAEED AL MAKTOUM,CHAIRMAN OF THE DUBAI SUPREME FISCAL COMMITTEE
Dubai - The Government of Dubai, acting through the Supreme Fiscal Committee ('SFC'), today announces a set of actions in relation to Dubai World: HH Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said:
'Like other global financial centers, Dubai has faced recent market challenges driven by the global economic slowdown and a severe real estate market correction.
'Recently, Dubai World announced that it might not be able to commercially support its obligations. Since that time, the Government of Dubai has worked closely with the Abu Dhabi Government and the UAE Central Bank in addressing and assessing the impact of Dubai World on the UAE economy, banking system and investor confidence. The following provides a comprehensive set of actions:
'First, the Government of Abu Dhabi and the UAE Central Bank have agreed to provide important support. Specifically, the Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World. As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today.
'The remaining funds would also provide for interest expenses and company working capital through April 30, 2010 - conditioned on the company being successful in negotiating a standstill as previously announced. In addition, the Government of Dubai is particularly focused on addressing the concerns of Dubai World trade creditors within the Emirate of Dubai.
To help address these concerns, today the Government of Dubai is announcing that the remainder of the funds provided will be used for the satisfaction of obligations to existing trade creditors and contractors. Discussions with affected contractors will begin in short order.
Next, the Central Bank is also prepared to provide support to local UAE banks. Finally, today the Government of Dubai will announce a comprehensive reorganization law, a framework that is based upon internationally accepted standards for transparency and creditor protection. This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations.
'Today's actions, taken together, demonstrate our strong commitment as a global financial leader to transparency, good governance, and market principles. There will certainly be challenges periodically, just as there are challenges in other major financial centers around the globe. We believe today's actions will best serve the interests of all stakeholders.
'We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices. Dubai is, and will continue to be, a strong and vibrant global financial center. Our best days are yet to come.
'The Government of Dubai remains committed to its high standards and its obligations. We are confident in our economic model, and we are confident in the long-term health and outlook for our economy. The actions taken today are consistent with our market development, and we believe they are the actions that will best serve the interests of all stakeholders.' -- REUTERS
THE following statement was issued by the government of Dubai:
STATEMENT FROM HH SHEIKH AHMAD BIN SAEED AL MAKTOUM,CHAIRMAN OF THE DUBAI SUPREME FISCAL COMMITTEE
Dubai - The Government of Dubai, acting through the Supreme Fiscal Committee ('SFC'), today announces a set of actions in relation to Dubai World: HH Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said:
'Like other global financial centers, Dubai has faced recent market challenges driven by the global economic slowdown and a severe real estate market correction.
'Recently, Dubai World announced that it might not be able to commercially support its obligations. Since that time, the Government of Dubai has worked closely with the Abu Dhabi Government and the UAE Central Bank in addressing and assessing the impact of Dubai World on the UAE economy, banking system and investor confidence. The following provides a comprehensive set of actions:
'First, the Government of Abu Dhabi and the UAE Central Bank have agreed to provide important support. Specifically, the Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World. As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today.
'The remaining funds would also provide for interest expenses and company working capital through April 30, 2010 - conditioned on the company being successful in negotiating a standstill as previously announced. In addition, the Government of Dubai is particularly focused on addressing the concerns of Dubai World trade creditors within the Emirate of Dubai.
To help address these concerns, today the Government of Dubai is announcing that the remainder of the funds provided will be used for the satisfaction of obligations to existing trade creditors and contractors. Discussions with affected contractors will begin in short order.
Next, the Central Bank is also prepared to provide support to local UAE banks. Finally, today the Government of Dubai will announce a comprehensive reorganization law, a framework that is based upon internationally accepted standards for transparency and creditor protection. This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations.
'Today's actions, taken together, demonstrate our strong commitment as a global financial leader to transparency, good governance, and market principles. There will certainly be challenges periodically, just as there are challenges in other major financial centers around the globe. We believe today's actions will best serve the interests of all stakeholders.
'We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices. Dubai is, and will continue to be, a strong and vibrant global financial center. Our best days are yet to come.
'The Government of Dubai remains committed to its high standards and its obligations. We are confident in our economic model, and we are confident in the long-term health and outlook for our economy. The actions taken today are consistent with our market development, and we believe they are the actions that will best serve the interests of all stakeholders.' -- REUTERS
ST : Dubai to pay $5.7b debt
Dec 14, 2009
Dubai to pay $5.7b debt
Abu Dhabi gives Dubai US$10b in bailout money
Dubai allocates $4.1b for immediate Dubai World debt
Dubai enacts new bankruptcy law
Abu Dhabi is the largest member of the United Arab Emirates federation and a big oil exporter. -- PHOTO: REUTERS
DUBAI - ABU Dhabi stepped in to help fellow United Arab Emirates member Dubai with a US$10 billion (S$14 billion) injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday.
The move was the least expected of all options Dubai had on the table after requesting a standstill on $26 billion in Dubai World debt on Nov 25, alarming markets and shaking the image of the emirate as a regional business hub.
'The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World,' the chairman od the Dubai Supreme Fiscal Committee said in a statement. 'As a first action for the new fund, the government of Dubai has authorised $4.1 billion to be used to pay the sukuk obligations that are due today.'
Abu Dhabi is the largest member of the United Arab Emirates federation and a big oil exporter. 'We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices,' Sheikh Ahmed bin Saaed al-Maktoum said in the statement.
'Dubai is, and will continue to be, a strong and vibrant global financial center. Our best days are yet to come.'
Excess funds would be used to cater to Dubai Worlds needs up until the end of April 2010, the statement said. Dubai has announced a bankruptcy law that it said could be used in case Dubai World and creditors failed to reach an agreement on debt maturing in the future. -- REUTERS
Dubai to pay $5.7b debt
Abu Dhabi gives Dubai US$10b in bailout money
Dubai allocates $4.1b for immediate Dubai World debt
Dubai enacts new bankruptcy law
Abu Dhabi is the largest member of the United Arab Emirates federation and a big oil exporter. -- PHOTO: REUTERS
DUBAI - ABU Dhabi stepped in to help fellow United Arab Emirates member Dubai with a US$10 billion (S$14 billion) injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday.
The move was the least expected of all options Dubai had on the table after requesting a standstill on $26 billion in Dubai World debt on Nov 25, alarming markets and shaking the image of the emirate as a regional business hub.
'The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World,' the chairman od the Dubai Supreme Fiscal Committee said in a statement. 'As a first action for the new fund, the government of Dubai has authorised $4.1 billion to be used to pay the sukuk obligations that are due today.'
Abu Dhabi is the largest member of the United Arab Emirates federation and a big oil exporter. 'We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices,' Sheikh Ahmed bin Saaed al-Maktoum said in the statement.
'Dubai is, and will continue to be, a strong and vibrant global financial center. Our best days are yet to come.'
Excess funds would be used to cater to Dubai Worlds needs up until the end of April 2010, the statement said. Dubai has announced a bankruptcy law that it said could be used in case Dubai World and creditors failed to reach an agreement on debt maturing in the future. -- REUTERS
HDB flat value will rise as long as economy grows: MM Lee
HDB flat value will rise as long as economy grows: MM Lee
By Asha Popatlal, Channel NewsAsia | Posted: 13 December 2009 2123 hrs
SINGAPORE: Public flats will continue to appreciate in value as long as the Singapore economy continues to grow. And with limited space, the future of public housing looks set to go up - with more skyscraper flats to be built.
Minister Mentor Lee Kuan Yew said this as he launched The Pinnacle@Duxton, which at 50 storeys, is the tallest HDB development in Singapore.
The first rental HDB blocks in Tanjong Pagar were built in 1963 on the site where The Pinnacle@Duxton stands. Today, it is the site of the tallest HDB in the country and the scene has changed significantly.
Mr Lee attributes the change to an early policy decision to build a home-owning society, which is what motivates Singaporeans to upgrade this asset for a better life, something which could not have happened with just rental flats.
Going forward, Mr Lee expects more of such flats to be built.
He said: "The Pinnacle@Duxton is therefore a good example that if the nation continues to do well, we can build more flats of this standard. But we should not make a quick profit from a resale of HDB flats.
"The rules on minimum occupation and requirement for family units nucleus are to discourage speculative purchases."
Mr Lee gave out keys to seven of the first families to move in and visited one family, whose father had rented a flat in the area previously.
Speaking to reporters later, he said the government could have built a condominium in its place but preferred to build public flats in this central area and share the growth of the city with the people who had rented flats in the area before.
Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country's growth - if the country is doing well, property prices will go up.
But if the economy goes down, unemployment goes up but incomes and property values decline.
One thing that will be going up is the height of future public housing.
Mr Lee said: "Well, it's a very special problem we face because we can't expand the city laterally, we have to expand the city vertically. Yes, we can have more (land) reclamations but that's only about 10, 15 per cent and we've reached the limit.
"Therefore, I see more and more of the old blocks being demolished and new blocks like The Pinnacle@Duxton being built."
Units at The Pinnacle@Duxton cost an average of S$486,000 for a 4-room flat and S$590,000 for a 5-room flat, when the last of the units were released in October.
The 50th-storey skybridge will also be open to non-residents for a S$5 fee.
- CNA/ir
By Asha Popatlal, Channel NewsAsia | Posted: 13 December 2009 2123 hrs
SINGAPORE: Public flats will continue to appreciate in value as long as the Singapore economy continues to grow. And with limited space, the future of public housing looks set to go up - with more skyscraper flats to be built.
Minister Mentor Lee Kuan Yew said this as he launched The Pinnacle@Duxton, which at 50 storeys, is the tallest HDB development in Singapore.
The first rental HDB blocks in Tanjong Pagar were built in 1963 on the site where The Pinnacle@Duxton stands. Today, it is the site of the tallest HDB in the country and the scene has changed significantly.
Mr Lee attributes the change to an early policy decision to build a home-owning society, which is what motivates Singaporeans to upgrade this asset for a better life, something which could not have happened with just rental flats.
Going forward, Mr Lee expects more of such flats to be built.
He said: "The Pinnacle@Duxton is therefore a good example that if the nation continues to do well, we can build more flats of this standard. But we should not make a quick profit from a resale of HDB flats.
"The rules on minimum occupation and requirement for family units nucleus are to discourage speculative purchases."
Mr Lee gave out keys to seven of the first families to move in and visited one family, whose father had rented a flat in the area previously.
Speaking to reporters later, he said the government could have built a condominium in its place but preferred to build public flats in this central area and share the growth of the city with the people who had rented flats in the area before.
Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country's growth - if the country is doing well, property prices will go up.
But if the economy goes down, unemployment goes up but incomes and property values decline.
One thing that will be going up is the height of future public housing.
Mr Lee said: "Well, it's a very special problem we face because we can't expand the city laterally, we have to expand the city vertically. Yes, we can have more (land) reclamations but that's only about 10, 15 per cent and we've reached the limit.
"Therefore, I see more and more of the old blocks being demolished and new blocks like The Pinnacle@Duxton being built."
Units at The Pinnacle@Duxton cost an average of S$486,000 for a 4-room flat and S$590,000 for a 5-room flat, when the last of the units were released in October.
The 50th-storey skybridge will also be open to non-residents for a S$5 fee.
- CNA/ir
ST : US jobs rate still important
Dec 13, 2009
US jobs rate still important
WASHINGTON - PRESIDENT Barack Obama's top economic aide Christina Romer said Sunday that the improving US economy is not yet out of recession, and will not turn the corner until the unemployment picture improves.
'The president has always said, and what I firmly believe, is you're not recovered until all of those people that want to work are back to work,' said Romer, who heads up the White House Council of Economic Advisers.
'For the people on Main Street and throughout this country, they are still suffering, the unemployment rate is still 10 percent,' she told NBC's 'Meet the Press' program according to excerpts released ahead of the broadcast.
'I'm not going to say the recession is over until the unemployment rate is down to normal levels... where we were before the recession - certainly in the five percent' range, Romer said. Her comments came with the US Congress poised later this week to take up a new jobs bill to confront the soaring US unemployment rate.
Obama and his Democratic allies, facing deep US public worry over unemployment running at a quarter-century high, have redoubled their efforts to tackle the problem ahead of the November 2010 mid-term elections.
Earlier this month, official figures showed the unemployment rate fell in November to 10.0 per cent from 10.2 per cent, suggesting the problems in the job market had peaked. -- AFP
US jobs rate still important
WASHINGTON - PRESIDENT Barack Obama's top economic aide Christina Romer said Sunday that the improving US economy is not yet out of recession, and will not turn the corner until the unemployment picture improves.
'The president has always said, and what I firmly believe, is you're not recovered until all of those people that want to work are back to work,' said Romer, who heads up the White House Council of Economic Advisers.
'For the people on Main Street and throughout this country, they are still suffering, the unemployment rate is still 10 percent,' she told NBC's 'Meet the Press' program according to excerpts released ahead of the broadcast.
'I'm not going to say the recession is over until the unemployment rate is down to normal levels... where we were before the recession - certainly in the five percent' range, Romer said. Her comments came with the US Congress poised later this week to take up a new jobs bill to confront the soaring US unemployment rate.
Obama and his Democratic allies, facing deep US public worry over unemployment running at a quarter-century high, have redoubled their efforts to tackle the problem ahead of the November 2010 mid-term elections.
Earlier this month, official figures showed the unemployment rate fell in November to 10.0 per cent from 10.2 per cent, suggesting the problems in the job market had peaked. -- AFP
ST : Flat prices still affordable
Dec 14, 2009
Flat prices still affordable
MM: Cost grows with economy, but Govt will help first-home buyers
By Zakir Hussain , POLITICAL CORRESPONDENT
MM Lee assured young couples that the Government will help them to own their first flats. -- ST PHOTO: FRANCIS ONG
SINGAPOREANS can expect the prices of HDB flats to keep on rising as long as the economy continues to grow, Minister Mentor Lee Kuan Yew said on Sunday.
However, he assured young couples that the Government will help them to own their first flats.
The Housing Board will also keep building affordable homes 'so that each generation of Singaporeans will continue to have a stake in the nation', he added.
Mr Lee gave the assurance when he visited the newly-completed crown jewel of Singapore's public housing, which he said is symbolic of the spectacular transformation of the country.
The Pinnacle@Duxton, rising 50 storeys high, stands on a plot that was occupied by the first rental blocks in Tanjong Pagar constituency, of which Mr Lee has been the MP for 54 years.
On Sunday, he recalled how he used the two Duxton Plain blocks then under construction in his 1963 election campaign, when the leftists were determined to win his seat.
MM Lee on the Pinnacle@Duxton's special location in the city centre.
We could easily have sold (the Duxton plot) and then a condominium would have stood in its place.
'But it would not have the same effect because here, we have kept the HDB residents in place, so we are sharing the growth of the city with the people who are of that class who built the city. We could have maximised the value by selling it off, and then a condo would have been built. We didn't do that.'
Flat prices still affordable
MM: Cost grows with economy, but Govt will help first-home buyers
By Zakir Hussain , POLITICAL CORRESPONDENT
MM Lee assured young couples that the Government will help them to own their first flats. -- ST PHOTO: FRANCIS ONG
SINGAPOREANS can expect the prices of HDB flats to keep on rising as long as the economy continues to grow, Minister Mentor Lee Kuan Yew said on Sunday.
However, he assured young couples that the Government will help them to own their first flats.
The Housing Board will also keep building affordable homes 'so that each generation of Singaporeans will continue to have a stake in the nation', he added.
Mr Lee gave the assurance when he visited the newly-completed crown jewel of Singapore's public housing, which he said is symbolic of the spectacular transformation of the country.
The Pinnacle@Duxton, rising 50 storeys high, stands on a plot that was occupied by the first rental blocks in Tanjong Pagar constituency, of which Mr Lee has been the MP for 54 years.
On Sunday, he recalled how he used the two Duxton Plain blocks then under construction in his 1963 election campaign, when the leftists were determined to win his seat.
MM Lee on the Pinnacle@Duxton's special location in the city centre.
We could easily have sold (the Duxton plot) and then a condominium would have stood in its place.
'But it would not have the same effect because here, we have kept the HDB residents in place, so we are sharing the growth of the city with the people who are of that class who built the city. We could have maximised the value by selling it off, and then a condo would have been built. We didn't do that.'
Sunday, December 13, 2009
Singapore leasing activity shows signs of recovery
Singapore leasing activity shows signs of recovery
Dec 11, 2009 - PropertyGuru.com.sg
The Singapore office market has experienced some recovery since its dull start this year.
Although office rents are still expected to fall further in 2010, but at a much slower pace compared to the past 15 months, a recent unexpected rise of leasing activity has created speculation about office rents bottoming-out as early as mid-2010.
“We are currently witnessing a strong recovery in leasing activity. Some tenants are even starting to look at expansion,” says Moray Armstrong, executive director for office services at CB Richard Ellis.
Property consultants predict a return of positive demand in the Singapore office market to more than one million square feet in 2010, on the back of economic growth. However, with more than 2.7 million square feet of new space intended for completion next year, rents will continue to dip and vacancies will rise.
Older buildings with tenants transferring to new projects still face a challenging year ahead. Nevertheless, some anticipate the authorities to closely watch on the competitiveness of the Republic in office rents. Mr. Armstrong believes, “it is not unrealistic to foresee that the government may release a couple of prime office sites in the Marina Bay area in the second half next year.”
“A lot will hinge on how the office market performs in the next three months. The government wants to ensure the supply pipeline is healthy so that businesses feel confident about Singapore's ability to meet long-term demand for growth from headquarters and corporates.”
Chris Archibold, the head of markets and regional director of Jones Lang LaSalle, acknowledges “some talk in the market that office supply may become limited in 2013 and 2014 in the CBD Core.”
“The Singapore government is likely to continue monitoring the office market and inject supply into the market through the reserve list in anticipation of an upturn to avoid the supply crunch we saw in 2007,” he added.
The gross average monthly rental value of grade A office space has plummeted 7.95 percent quarter on quarter to $8.10 per sq ft in Q4 2009, as shown in the CBRE data. This is the lowest quarter-on-quarter dip since office rents started falling in the last quarter of 2008. The latest figure in the fourth quarter of 2009 reflects 46 percent decline for the whole of 2009 and 57 percent from the peak of $18.80 psf in the second and third quarter of 2008. CBRE estimates a further 13.6 percent contraction next year to hit $7 psf by end-2010.
The average grade A rental data of Colliers International for various CBD micromarkets shows a 1.9 percent quarter-on-quarter drop in Raffles Place/New Downtown and one percent in Bugis/ Beach Road in the fourth quarter of 2009, with rents unchanged in the Orchard Road, Shenton Way/Tanjong Pagar, City Hall/Marina Centre. For the whole of 2009, the declines ranged from 42 percent to 53 percent, but Colliers foretells rental declines to moderate 'within 5 percent' from January to June next year from current levels.
DTZ estimates a drop of 15 to 20 percent in the average monthly rental value for prime office space along the Raffles Place by 2010, which it says has dropped this year from $16 psf in Q4 2008 to $7.90 psf.
Mr. Armstrong expects rentals to stabilize by mid-2010 especially for better-quality buildings. According to Angela Tan, DTZ's SE Asia head of development and occupational markets, rents will likely bottom in 2011. “If the economy grows more strongly than expected, rents could bottom earlier in end-2010.”
The completion of recent projects creates a two-tier market. “Given the pick-up in leasing activity, we expect the bottom in rentals for new prime Grade A office buildings to be as close as H2 2010. However, there's likely to be longer downward pressure on rentals in existing prime Grade A office buildings as landlords seek to backfill vacancy caused by tenants relocating to new developments,” says Mr. Archibold of JLL.
On a brighter note, Mr. Armstrong of CBRE says he has already seen some of the resurgence in leasing activity fuelled by expansion and not just replacement needs. This will serve as the foundation for a more positive take-up.
Dec 11, 2009 - PropertyGuru.com.sg
The Singapore office market has experienced some recovery since its dull start this year.
Although office rents are still expected to fall further in 2010, but at a much slower pace compared to the past 15 months, a recent unexpected rise of leasing activity has created speculation about office rents bottoming-out as early as mid-2010.
“We are currently witnessing a strong recovery in leasing activity. Some tenants are even starting to look at expansion,” says Moray Armstrong, executive director for office services at CB Richard Ellis.
Property consultants predict a return of positive demand in the Singapore office market to more than one million square feet in 2010, on the back of economic growth. However, with more than 2.7 million square feet of new space intended for completion next year, rents will continue to dip and vacancies will rise.
Older buildings with tenants transferring to new projects still face a challenging year ahead. Nevertheless, some anticipate the authorities to closely watch on the competitiveness of the Republic in office rents. Mr. Armstrong believes, “it is not unrealistic to foresee that the government may release a couple of prime office sites in the Marina Bay area in the second half next year.”
“A lot will hinge on how the office market performs in the next three months. The government wants to ensure the supply pipeline is healthy so that businesses feel confident about Singapore's ability to meet long-term demand for growth from headquarters and corporates.”
Chris Archibold, the head of markets and regional director of Jones Lang LaSalle, acknowledges “some talk in the market that office supply may become limited in 2013 and 2014 in the CBD Core.”
“The Singapore government is likely to continue monitoring the office market and inject supply into the market through the reserve list in anticipation of an upturn to avoid the supply crunch we saw in 2007,” he added.
The gross average monthly rental value of grade A office space has plummeted 7.95 percent quarter on quarter to $8.10 per sq ft in Q4 2009, as shown in the CBRE data. This is the lowest quarter-on-quarter dip since office rents started falling in the last quarter of 2008. The latest figure in the fourth quarter of 2009 reflects 46 percent decline for the whole of 2009 and 57 percent from the peak of $18.80 psf in the second and third quarter of 2008. CBRE estimates a further 13.6 percent contraction next year to hit $7 psf by end-2010.
The average grade A rental data of Colliers International for various CBD micromarkets shows a 1.9 percent quarter-on-quarter drop in Raffles Place/New Downtown and one percent in Bugis/ Beach Road in the fourth quarter of 2009, with rents unchanged in the Orchard Road, Shenton Way/Tanjong Pagar, City Hall/Marina Centre. For the whole of 2009, the declines ranged from 42 percent to 53 percent, but Colliers foretells rental declines to moderate 'within 5 percent' from January to June next year from current levels.
DTZ estimates a drop of 15 to 20 percent in the average monthly rental value for prime office space along the Raffles Place by 2010, which it says has dropped this year from $16 psf in Q4 2008 to $7.90 psf.
Mr. Armstrong expects rentals to stabilize by mid-2010 especially for better-quality buildings. According to Angela Tan, DTZ's SE Asia head of development and occupational markets, rents will likely bottom in 2011. “If the economy grows more strongly than expected, rents could bottom earlier in end-2010.”
The completion of recent projects creates a two-tier market. “Given the pick-up in leasing activity, we expect the bottom in rentals for new prime Grade A office buildings to be as close as H2 2010. However, there's likely to be longer downward pressure on rentals in existing prime Grade A office buildings as landlords seek to backfill vacancy caused by tenants relocating to new developments,” says Mr. Archibold of JLL.
On a brighter note, Mr. Armstrong of CBRE says he has already seen some of the resurgence in leasing activity fuelled by expansion and not just replacement needs. This will serve as the foundation for a more positive take-up.
New head picked for property agent monitoring agency
New head picked for property agent monitoring agency
Dec 11, 2009 - PropertyGuru.com.sg
The Ministry of National Development (MND) picked Chionh Chye Khye, the current executive director (designate) with MND, to head a new government agency that will be set up next year to regulate Singapore’s property agents.
Mr. Chionh, before joining the MND in 2006, was the chief executive of the Building and Construction Authority. During his four-year tenure, he spearheaded the programme to raise productivity and quality of the construction industry, promote regulatory framework, and ensure infrastructure and building safety.
MND is expected to announce Mr. Chionh’s appointment as well as provide accurate details on the new agency by next year.
The Ministry said that the views it received from several stakeholders and channels are now being studied and consolidated, and will be used in improving the new regulatory framework. Key elements are also expected to be announced early next year.
'In the meantime, it would not be appropriate for us to comment on speculation,' it said.
In October, MND shared details of the new regulatory framework for the real estate industry, including the creation of a new agency that will enhance regulatory powers.
MND’s move comes after several property agents were criticised last year for being under-qualified and for their unethical practices. Minister for National Development Mah Bow Tan said in March that the whole system was 'not satisfactory' and the status quo was 'not tenable'.
With this move, activities of property agents will be closely monitored and rules will be enforced effectively.
Property agents must pass the industry examination and must be accredited first by a new accreditation body before they can work.
Currently, there are about 25,000 to 30,000 property agents in Singapore, with various degrees of training and professional standards.
Dec 11, 2009 - PropertyGuru.com.sg
The Ministry of National Development (MND) picked Chionh Chye Khye, the current executive director (designate) with MND, to head a new government agency that will be set up next year to regulate Singapore’s property agents.
Mr. Chionh, before joining the MND in 2006, was the chief executive of the Building and Construction Authority. During his four-year tenure, he spearheaded the programme to raise productivity and quality of the construction industry, promote regulatory framework, and ensure infrastructure and building safety.
MND is expected to announce Mr. Chionh’s appointment as well as provide accurate details on the new agency by next year.
The Ministry said that the views it received from several stakeholders and channels are now being studied and consolidated, and will be used in improving the new regulatory framework. Key elements are also expected to be announced early next year.
'In the meantime, it would not be appropriate for us to comment on speculation,' it said.
In October, MND shared details of the new regulatory framework for the real estate industry, including the creation of a new agency that will enhance regulatory powers.
MND’s move comes after several property agents were criticised last year for being under-qualified and for their unethical practices. Minister for National Development Mah Bow Tan said in March that the whole system was 'not satisfactory' and the status quo was 'not tenable'.
With this move, activities of property agents will be closely monitored and rules will be enforced effectively.
Property agents must pass the industry examination and must be accredited first by a new accreditation body before they can work.
Currently, there are about 25,000 to 30,000 property agents in Singapore, with various degrees of training and professional standards.
Global property prices recover, according to a survey
Global property prices recover, according to a survey
Dec 11, 2009 - PropertyGuru.com.sg
Property prices in Singapore recorded the highest rise globally in Q3 2009, according to the latest Global House Price Index from Knight Frank.
Although two-thirds of the countries covered in the survey showed an increase in property prices, year-on-year property prices in more than half of the countries covered are still down.
Israel’s property prices also posted the highest gain of up to 13.7 percent year-on-year.
Singapore property prices surged to 13.7 percent in the third quarter compared with the second quarter, while Dubai’s year-on-year property values dropped 47 percent.
“House prices are now rising in a clear majority of locations around the world with almost 70% of the locations reporting growth in the third quarter of 2009. This compares with under 50% during the second three months of the year,” said Knight Frank's head of residential research, Liam Bailey.
“There is still, however, a clear polarisation from the top to the bottom of the table. Israel remains the best performer on an annual basis and is the only country to have recorded double digit growth,” he added.
“Dubai has fallen the most despite posting a small recovery and the recent debt issues with Dubai World and the subsequent loss of confidence by investors means even this nascent rally is already under threat.”
Properties in Ireland, Denmark and Spain have yet to document their first quarter growth since the credit crisis due to the weak economic condition and an oversupply of housing.
Dec 11, 2009 - PropertyGuru.com.sg
Property prices in Singapore recorded the highest rise globally in Q3 2009, according to the latest Global House Price Index from Knight Frank.
Although two-thirds of the countries covered in the survey showed an increase in property prices, year-on-year property prices in more than half of the countries covered are still down.
Israel’s property prices also posted the highest gain of up to 13.7 percent year-on-year.
Singapore property prices surged to 13.7 percent in the third quarter compared with the second quarter, while Dubai’s year-on-year property values dropped 47 percent.
“House prices are now rising in a clear majority of locations around the world with almost 70% of the locations reporting growth in the third quarter of 2009. This compares with under 50% during the second three months of the year,” said Knight Frank's head of residential research, Liam Bailey.
“There is still, however, a clear polarisation from the top to the bottom of the table. Israel remains the best performer on an annual basis and is the only country to have recorded double digit growth,” he added.
“Dubai has fallen the most despite posting a small recovery and the recent debt issues with Dubai World and the subsequent loss of confidence by investors means even this nascent rally is already under threat.”
Properties in Ireland, Denmark and Spain have yet to document their first quarter growth since the credit crisis due to the weak economic condition and an oversupply of housing.
HLF eyeing the mega rich
HLF eyeing the mega rich
Dec 11, 2009 - PropertyGuru.com.sg
Buyers looking for a landed home in central Singapore can now grab a special package offered by Hong Leong Finance.
This is the latest marketing move by the company to attract home buyers in the competitive mortgage market.
Hong Leong is targeting those families living in a tiny niche, who can afford to buy good class bungalows costing more than $15 million.
The company is offering a special package that starts from 1.38 percent a year on a variable basis. The variable rate increases to 1.48 percent for the second year and 2.4 percent for the third year.
“With recent renewed interest in the good class bungalow market, it is only natural for Hong Leong Finance to expand its suite of services,” said Hong Leong Finance President, Ian Macdonald.
Such bungalows have a plot size of about 1,400 square metres, and are only located in 39 areas zoned for them.
There are only 2,400 bungalows around the country and it forms a highly exclusive market.
To attract buyers, Hong Leong is offering $1,000 worth of food and beverage vouchers at the Millennium and Copthorne Hotels for a minimum loan of $3 million.
Buyers who would take up more than $10 million loans can get $5,000 worth of vouchers. All customers will also get $500 worth of spa vouchers at the Haach Spa and a 20 percent discount at M Hotel in Singapore.
Dec 11, 2009 - PropertyGuru.com.sg
Buyers looking for a landed home in central Singapore can now grab a special package offered by Hong Leong Finance.
This is the latest marketing move by the company to attract home buyers in the competitive mortgage market.
Hong Leong is targeting those families living in a tiny niche, who can afford to buy good class bungalows costing more than $15 million.
The company is offering a special package that starts from 1.38 percent a year on a variable basis. The variable rate increases to 1.48 percent for the second year and 2.4 percent for the third year.
“With recent renewed interest in the good class bungalow market, it is only natural for Hong Leong Finance to expand its suite of services,” said Hong Leong Finance President, Ian Macdonald.
Such bungalows have a plot size of about 1,400 square metres, and are only located in 39 areas zoned for them.
There are only 2,400 bungalows around the country and it forms a highly exclusive market.
To attract buyers, Hong Leong is offering $1,000 worth of food and beverage vouchers at the Millennium and Copthorne Hotels for a minimum loan of $3 million.
Buyers who would take up more than $10 million loans can get $5,000 worth of vouchers. All customers will also get $500 worth of spa vouchers at the Haach Spa and a 20 percent discount at M Hotel in Singapore.
ST : Reits a good choice
Dec 12, 2009
Reits a good choice
By Joyce Teo, Property Correspondent
IF YOU want to invest in property but cannot bear the idea of borrowing hundreds of thousands of dollars to buy that fancy condominium unit or going through the hassle of being a landlord, real estate investment trusts (Reits) might be worth considering.
Reit prices have risen this year, but they are still worth a look as they offer investors a relatively liquid way to gain exposure to property, and in various sectors and markets too.
Potential investors, however, have to do their homework and tread cautiously.
Reits have survived the credit market squeeze triggered by the subprime crisis.
MacarthurCook Industrial Reit, for instance, recently managed to get shareholders to approve its recapitalisation plan to save itself. It has huge debts due by the end of the year and would have had to be liquidated had the plan been rejected.
Its plan includes a rights issue which diluted its share price.
Reits a good choice
By Joyce Teo, Property Correspondent
IF YOU want to invest in property but cannot bear the idea of borrowing hundreds of thousands of dollars to buy that fancy condominium unit or going through the hassle of being a landlord, real estate investment trusts (Reits) might be worth considering.
Reit prices have risen this year, but they are still worth a look as they offer investors a relatively liquid way to gain exposure to property, and in various sectors and markets too.
Potential investors, however, have to do their homework and tread cautiously.
Reits have survived the credit market squeeze triggered by the subprime crisis.
MacarthurCook Industrial Reit, for instance, recently managed to get shareholders to approve its recapitalisation plan to save itself. It has huge debts due by the end of the year and would have had to be liquidated had the plan been rejected.
Its plan includes a rights issue which diluted its share price.
ST : Private estate gets a bus
Dec 12, 2009
Private estate gets a bus
By Terrence Voon
Minister Lim Hwee Hua launches premium bus service 595 for residents at the Hillside Rosyth precinct. -- ST PHOTO: ASHLEIGH SIM
FOR years, getting to the nearest MRT station has been a hot, tiresome, 30-minute affair for Ms Amy Zhang.
The 36-year-old Chinese expatriate lives in Glasgow Road. To get to work, she has to walk to the main road first before taking a bus to Serangoon MRT station to catch a train to her workplace in Bugis.
From Sunday, her long treks will be a thing of the past.
The Hillside Rosyth Neighbourhood Committee (NC) has teamed up with the Land Transport Authority and a private bus operator to launch a premium bus service for the private residential area.
This will provide much-needed relief for non-drivers like Ms Zhang.
'I used to spend so much money on taxis when I did not feel like walking,' said the education consultant. 'But now I guess there's no need anymore.'
Private estate gets a bus
By Terrence Voon
Minister Lim Hwee Hua launches premium bus service 595 for residents at the Hillside Rosyth precinct. -- ST PHOTO: ASHLEIGH SIM
FOR years, getting to the nearest MRT station has been a hot, tiresome, 30-minute affair for Ms Amy Zhang.
The 36-year-old Chinese expatriate lives in Glasgow Road. To get to work, she has to walk to the main road first before taking a bus to Serangoon MRT station to catch a train to her workplace in Bugis.
From Sunday, her long treks will be a thing of the past.
The Hillside Rosyth Neighbourhood Committee (NC) has teamed up with the Land Transport Authority and a private bus operator to launch a premium bus service for the private residential area.
This will provide much-needed relief for non-drivers like Ms Zhang.
'I used to spend so much money on taxis when I did not feel like walking,' said the education consultant. 'But now I guess there's no need anymore.'
Friday, December 11, 2009
ST : China out of crisis
Dec 11, 2009
China out of crisis
BEIJING - CHINA said on Friday it had ended a year-long bout of inflation in November while factory output picked up as the world's third largest economy powered ahead following the global crisis.
The nation's consumer price index, the main gauge of inflation, rose 0.6 per cent year on year in November, the first increase since January, official data showed.
'The mild rise in prices during economic recovery is actually conducive to economic growth and job creation,' Sheng Laiyun, spokesman for the National Bureau of Statistics (NBS), told a news conference. 'Currently there is still no inflationary pressure.'
The increase was due in part to Beijing's efforts to raise state-controlled prices for fuel, electricity and water to better reflect market forces. Prices also likely rose last month because early snowstorms in northern and central China destroyed crops and disrupted transport, driving up the cost of food.
China last year unveiled a four-trillion-yuan (S$814 billion) stimulus package along with big tax breaks to boost consumer spending as the global crisis hit its key export markets in the United States and Europe.
Industrial output, which shows activity in the millions of factories and workshops around the country, expanded 19.2 per cent in November from a year ago, up from 16.1 per cent in October. But exports unexpectedly fell 1.2 per cent in November. -- AFP
China out of crisis
BEIJING - CHINA said on Friday it had ended a year-long bout of inflation in November while factory output picked up as the world's third largest economy powered ahead following the global crisis.
The nation's consumer price index, the main gauge of inflation, rose 0.6 per cent year on year in November, the first increase since January, official data showed.
'The mild rise in prices during economic recovery is actually conducive to economic growth and job creation,' Sheng Laiyun, spokesman for the National Bureau of Statistics (NBS), told a news conference. 'Currently there is still no inflationary pressure.'
The increase was due in part to Beijing's efforts to raise state-controlled prices for fuel, electricity and water to better reflect market forces. Prices also likely rose last month because early snowstorms in northern and central China destroyed crops and disrupted transport, driving up the cost of food.
China last year unveiled a four-trillion-yuan (S$814 billion) stimulus package along with big tax breaks to boost consumer spending as the global crisis hit its key export markets in the United States and Europe.
Industrial output, which shows activity in the millions of factories and workshops around the country, expanded 19.2 per cent in November from a year ago, up from 16.1 per cent in October. But exports unexpectedly fell 1.2 per cent in November. -- AFP
ST : Check your windows
Dec 11, 2009
Check your windows
Every year, more than 40 windows fall from high-rise buildings and the number of cases have risen in the last two years. -- ST PHOTO: STEPHANIE YEOW
WATCH out! More windows are falling from high-rise blocks in Singapore.
Every year, more than 40 windows fall from such buildings and the number of cases have risen in the last two years, according to the figures from the Building and Construction Authority. These include casement type windows, sliding windows, louvres and even fixed glass windows.
Since the window retrofitting exercise requiring aluminum rivets to be replaced with stainless steel ones in casement windows ended in September 2005, the number of fallen casement windows has reduced significantly - from 95 cases in 2005 to about 30 a year.
But, there is an increase in the number of fallen sliding windows this year - up by 10 cases from 16 cases in 2008, said BCA and the Housing Board in a joint statement on Friday. 'The causes of fallen sliding windows were mainly due to lack of maintenance,' they said.
To ensure that sliding windows are not dislodged easily, BCA and HDB advise homeowners to carry out regular maintenance to these windows. Safety features such as angle strip and safety stopper should also be installed for sliding windows, as a precautionary measure.
Under the Building Maintenance and Strata Management Act, it is the owner's and/or tenant's responsibility to maintain their windows regularly and properly.
Should a window fall due to lack of maintenance, they can face a maximum fine of S$10,000 and/or jail term of up to one year.
If any fallen casement window is found with aluminum rivets, they can also face a penalty of up to S$5,000 and/or jail term of up to six months, for failing to retrofit the window with stainless steel rivets.
Tips on maintaining windows
- Replace aluminum rivets and screws with stainless steel ones
-Check, clean and lubricate joints/moveable parts regularly, at least twice a year
-Open and close the window several times after lubrication
-Check the glass panes for cracks or loose panes
-Ensure that moveable parts are secured and loose screws are tightened
For sliding windows
- Check that safety stopper is in place
- Check that angle strip is in place
- Clean the track and ensure window panels can slide smoothly
Check your windows
Every year, more than 40 windows fall from high-rise buildings and the number of cases have risen in the last two years. -- ST PHOTO: STEPHANIE YEOW
WATCH out! More windows are falling from high-rise blocks in Singapore.
Every year, more than 40 windows fall from such buildings and the number of cases have risen in the last two years, according to the figures from the Building and Construction Authority. These include casement type windows, sliding windows, louvres and even fixed glass windows.
Since the window retrofitting exercise requiring aluminum rivets to be replaced with stainless steel ones in casement windows ended in September 2005, the number of fallen casement windows has reduced significantly - from 95 cases in 2005 to about 30 a year.
But, there is an increase in the number of fallen sliding windows this year - up by 10 cases from 16 cases in 2008, said BCA and the Housing Board in a joint statement on Friday. 'The causes of fallen sliding windows were mainly due to lack of maintenance,' they said.
To ensure that sliding windows are not dislodged easily, BCA and HDB advise homeowners to carry out regular maintenance to these windows. Safety features such as angle strip and safety stopper should also be installed for sliding windows, as a precautionary measure.
Under the Building Maintenance and Strata Management Act, it is the owner's and/or tenant's responsibility to maintain their windows regularly and properly.
Should a window fall due to lack of maintenance, they can face a maximum fine of S$10,000 and/or jail term of up to one year.
If any fallen casement window is found with aluminum rivets, they can also face a penalty of up to S$5,000 and/or jail term of up to six months, for failing to retrofit the window with stainless steel rivets.
Tips on maintaining windows
- Replace aluminum rivets and screws with stainless steel ones
-Check, clean and lubricate joints/moveable parts regularly, at least twice a year
-Open and close the window several times after lubrication
-Check the glass panes for cracks or loose panes
-Ensure that moveable parts are secured and loose screws are tightened
For sliding windows
- Check that safety stopper is in place
- Check that angle strip is in place
- Clean the track and ensure window panels can slide smoothly
ST : Inflation could hit 4%
Dec 11, 2009
Inflation could hit 4%
By Fiona Chan
INFLATION could hit a high of 4 per cent in the next six months on account of the surge in asset prices here, according to a new report by HSBC.
It said investors feeling rich from the stock market rally are likely to spend more, raising demand - and prices - for goods and services.
At the same time, a continued increase in property prices will also lead directly to a rise in inflation.
This will help boost the consumer price index - the key indicator of inflation here - next year, said HSBC economist Robert Prior-Wandesforde.
He has raised his inflation forecast for next year to 2.9 per cent from 2.5 per cent previously, with inflation expected to peak at about 4 per cent probably in the second quarter of next year.
Investors who have directly made money from shares will naturally spend more, helping fuel inflation, but even people who do not buy shares will feel the 'confidence effects', said Mr Prior-Wandesforde.
Inflation could hit 4%
By Fiona Chan
INFLATION could hit a high of 4 per cent in the next six months on account of the surge in asset prices here, according to a new report by HSBC.
It said investors feeling rich from the stock market rally are likely to spend more, raising demand - and prices - for goods and services.
At the same time, a continued increase in property prices will also lead directly to a rise in inflation.
This will help boost the consumer price index - the key indicator of inflation here - next year, said HSBC economist Robert Prior-Wandesforde.
He has raised his inflation forecast for next year to 2.9 per cent from 2.5 per cent previously, with inflation expected to peak at about 4 per cent probably in the second quarter of next year.
Investors who have directly made money from shares will naturally spend more, helping fuel inflation, but even people who do not buy shares will feel the 'confidence effects', said Mr Prior-Wandesforde.
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