If you are looking for 5% interest yield, look no where else.
Buy Frasers Centrepoint. It's price now is $1.53.
The distributable income was 8.2 cents in for FY2010. That's 5% interest that no banks can give you.
Cheers.
October 26, 2010, 8.55 am (Singapore time)
FCT Q4 distribution income a record $16.5m
By BERNICE BONG
SINGAPORE - Frasers Centrepoint Trust (FCT) posted a record distribution income of $16.54 million for the fourth quarter ended Sept 30, 2010, up 29.3 per cent from a year earlier.
For the full financial year, distribution income totalled $59.18 million, a 26.1 per cent increase from last year.
Its distribution per unit (DPU) is 2.16 cents, 5.9 per cent higher from the 2.04 cents last year. This brings total DPU for FY2010 (Oct 1 2009 to Sept 30 2010) to a record 8.20 cents, a 9 per cent increase over the previous financial year.
Click here for FCT's news release
Gross revenue jumped 32 per cent year-on-year (y-o-y) to a record high of $114.7 million, boosted by the accretive acquisitions of Northpoint 2 and YewTee Point, and the successful revamp of Northpoint 1.
Net property income similarly surged 34 per cent y-on-y to $80.1 million.
Occupancy level remained high at 98.1 per cent, in spite of the ongoing refurbishment of Causeway Point.
Chief Executive Officer of the Manager of FCT, Dr Chew Tuan Chiong said, 'FCT generated 74 per cent total return for unitholders since listing in 2006. During the same period, FCT achieved four consecutive years of DPU growth with a compound annual growth rate of 8 per cent.'
Tuesday, October 26, 2010
Monday, October 18, 2010
Warren Buffett: Buying Berkshire Hathaway Was $200 Billion Blunder - CNBC
Warren Buffett: Buying Berkshire Hathaway Was $200 Billion Blunder - CNBC
Click on the link and learn this important lesson.
Emotion is the worst enemy of decision-making.
Buffett was controlled by his emotions then, that's why it was a $200 Billion blunder.
Monday, August 30, 2010
The rich now will get even richer...
After reading the news on the cooling measures, I can't help but to think that we have gone back to the times where the rich will just get richer.
Why do I say that? You will know the answer after reading the attached report that I have extracted from the Straits Times.
I fully agree with the editor that the cooling measures affect the middle income people like us the most.
First, raising the cash upfront to 10% and increasing the seller's stamp duty from 1 year to 3 years are reasonable measures. However, only allowing 70% home loan for second property is not reasonable. Housing loan is actually a good debt, so why reduce to 70%?
In order to buy a second home costing $500,000, for example, a buyer needs to come up with $50,000 and $50,000 from CPF and a loan of $400,000. That's reasonable.
Imagine if a buyer have to pay $100,000 from CPF instead, how long will the buyer take to reach that amount in the CPF? Another good 5 years?
On average, it takes a person with $3,000 monthly salary, 5 years to get to $100,000 in their CPF account. And not forgetting that he must put aside a minimum sum of $120,000, if they want to buy a second property. Then when will he able to own a second property to rent out and earn some passive income? On the day when he reach 60? Then how much will the property cost then?
On one hand, our senior minister asked us to work smart but on the other hand, we cannot earn a passive income because of the "cooling" measures. How can one reitre comfortably in the future?
The rich will get richer, as these cooling measures do not affect them in anyway. Then the financial gap will again widen.
While some measures are actually good, but others are in fact redundant.
Read the following article and leave your comments.
Aug 31, 2010
'Targeted' cooling has wider implications
Home-owners who wish to upgrade, downgrade or move are affected too
By Fiona Chan, Assistant Money Editor
THE Hungry Ghost month is almost over, but the property market got a new scare yesterday.
To rein in soaring home prices, National Development Minister Mah Bow Tan unveiled an array of measures to temper demand for both private homes and Housing Board (HDB) flats.
He stressed that the steps, while 'comprehensive', were 'calibrated' to target those who already own a home and are buying another for investment or speculative purposes.
First-time buyers and those buying for their own stay, Mr Mah added, would be generally unaffected by the new rules.
But would this be always the case?
Yes and no. It is true that if you are buying a home for the first time, none of the curbs will directly affect you.
But if you are the average home-owner paying off a mortgage, chances are you could be stuck in your current home for some time.
This is because a genuine home-buyer who already owns a home and wants to upgrade, or downgrade, or simply move house, will have to jump through many more hoops than in the past.
Take the new rule that home-owners with outstanding mortgages must fork out a higher downpayment for a new property. They will now have to pay at least 30 per cent of the purchase price upfront, up from 20 per cent previously.
This restriction is meant to deter property investors or speculators from owning more than one property. But it will also, inadvertently perhaps, make life difficult for people moving house.
Many people buy their dream home first before selling their existing one, to make sure they have plenty of time to move, and banks ease these back-to-back transactions by providing bridging loans.
But now home-owners who still have a mortgage will have to sell well before they buy, if they want to avoid paying the higher downpayment for their new home.
They then have to obtain a bank letter saying their existing home has been sold, and the mortgage will be paid off at a certain date, before they can apply for a loan for their new home - and even then they will get only an in-principle approval.
Because property transactions take about three months to complete, these buyers may have to find somewhere to stay in between selling and buying.
Aspiring upgraders or home-owners who want to buy and live in newly launched private homes, which take about three years to build, will have to stay somewhere else for even longer.
The new rules don't mean that these owner-occupiers cannot buy new homes to live in, but it does make the timing of when they buy and sell their homes absolutely crucial.
One wrong step and they will need to fork out more cash and CPF savings in upfront downpayments. That risk alone will make anyone think twice about swopping their homes for better ones.
But this is not the only curb that casts a wider net than it appears to at first. There is also the new maxim that private property owners must sell their homes within six months if they buy a HDB resale flat.
The aim of this is to dissuade would-be property investors from dabbling in the market for HDB flats - which should be prioritised for owner-occupiers - and pushing up their prices.
But any HDB owner who already owns a private property for investment may now find himself stuck as well.
If he wants to move, say to another HDB flat closer to his parents, he will have to sell his current flat first before buying a new one.
But the moment he sells the flat, he becomes classified as a private property owner because of his investment property. That means that if he then buys another HDB flat, he will have to sell his private property within six months - even though he is just moving house.
In effect, he may now never be able to move to another HDB flat for the rest of his life unless he is willing to sell both his current properties.
This makes private property a particularly risky investment asset for HDB flat-owners, for reasons completely unrelated to affordability.
Even buyers of private properties, while free of HDB restrictions, must now put more thought into their purchases.
Whatever home they buy, they must be prepared to live in it for at least three years - or pay a penalty in the form of a sellers' stamp duty, which can go up to 3 per cent of the purchase price.
This could affect shoebox apartments, many of which are bought as starter or investment homes, to be resold after a year or two.
So however you slice and dice it, it seems that the latest measures really leave only two groups of people completely unaffected.
The first are those rich enough to be unfettered by the new rules. By throwing various obstacles in the way of owning more than one home, the Government is sending a very clear signal that property is an investable asset class - with no restrictions - only for those who can afford it with money to spare.
The other group of people who will view the measures with equanimity are those who plan to buy only one home and stay in it for the rest of their lives.
Indeed, one of the main aims of the measures, said Mr Mah yesterday, is to ensure that all Singaporeans are able to secure a home - not an investment - for themselves. As Prime Minister Lee Hsien Loong has said, 'property is for people to buy to live in', meant as a nest egg and not as an easy way to make a quick buck.
If you subscribe to this view, and also think that property buyers should be a lot more prudent to start with, then the new measures tick all the right boxes.
But if you like the idea of moving from one home to another as your needs and lifestyle change, the slew of curbs would restrict your options, unless you are willing to stump up more upfront cash and accept lower levels of loan financing.
Buying a home will now be more of a long-term commitment than ever, and buyers must really think about their life plans for at least the next few years before taking that leap.
The housing market may become more stable, but it is also likely to be much less vibrant. And with the cooling moves coming just as Singapore's economy is entering an uncertain second half, there is a risk of the property market paling precipitously.
The important thing now is for the Government to closely watch if the impact of the measures turns out to be more widely felt than expected, and adjust them accordingly.
fiochan@sph.com.sg
Why do I say that? You will know the answer after reading the attached report that I have extracted from the Straits Times.
I fully agree with the editor that the cooling measures affect the middle income people like us the most.
First, raising the cash upfront to 10% and increasing the seller's stamp duty from 1 year to 3 years are reasonable measures. However, only allowing 70% home loan for second property is not reasonable. Housing loan is actually a good debt, so why reduce to 70%?
In order to buy a second home costing $500,000, for example, a buyer needs to come up with $50,000 and $50,000 from CPF and a loan of $400,000. That's reasonable.
Imagine if a buyer have to pay $100,000 from CPF instead, how long will the buyer take to reach that amount in the CPF? Another good 5 years?
On average, it takes a person with $3,000 monthly salary, 5 years to get to $100,000 in their CPF account. And not forgetting that he must put aside a minimum sum of $120,000, if they want to buy a second property. Then when will he able to own a second property to rent out and earn some passive income? On the day when he reach 60? Then how much will the property cost then?
On one hand, our senior minister asked us to work smart but on the other hand, we cannot earn a passive income because of the "cooling" measures. How can one reitre comfortably in the future?
The rich will get richer, as these cooling measures do not affect them in anyway. Then the financial gap will again widen.
While some measures are actually good, but others are in fact redundant.
Read the following article and leave your comments.
Aug 31, 2010
'Targeted' cooling has wider implications
Home-owners who wish to upgrade, downgrade or move are affected too
By Fiona Chan, Assistant Money Editor
THE Hungry Ghost month is almost over, but the property market got a new scare yesterday.
To rein in soaring home prices, National Development Minister Mah Bow Tan unveiled an array of measures to temper demand for both private homes and Housing Board (HDB) flats.
He stressed that the steps, while 'comprehensive', were 'calibrated' to target those who already own a home and are buying another for investment or speculative purposes.
First-time buyers and those buying for their own stay, Mr Mah added, would be generally unaffected by the new rules.
But would this be always the case?
Yes and no. It is true that if you are buying a home for the first time, none of the curbs will directly affect you.
But if you are the average home-owner paying off a mortgage, chances are you could be stuck in your current home for some time.
This is because a genuine home-buyer who already owns a home and wants to upgrade, or downgrade, or simply move house, will have to jump through many more hoops than in the past.
Take the new rule that home-owners with outstanding mortgages must fork out a higher downpayment for a new property. They will now have to pay at least 30 per cent of the purchase price upfront, up from 20 per cent previously.
This restriction is meant to deter property investors or speculators from owning more than one property. But it will also, inadvertently perhaps, make life difficult for people moving house.
Many people buy their dream home first before selling their existing one, to make sure they have plenty of time to move, and banks ease these back-to-back transactions by providing bridging loans.
But now home-owners who still have a mortgage will have to sell well before they buy, if they want to avoid paying the higher downpayment for their new home.
They then have to obtain a bank letter saying their existing home has been sold, and the mortgage will be paid off at a certain date, before they can apply for a loan for their new home - and even then they will get only an in-principle approval.
Because property transactions take about three months to complete, these buyers may have to find somewhere to stay in between selling and buying.
Aspiring upgraders or home-owners who want to buy and live in newly launched private homes, which take about three years to build, will have to stay somewhere else for even longer.
The new rules don't mean that these owner-occupiers cannot buy new homes to live in, but it does make the timing of when they buy and sell their homes absolutely crucial.
One wrong step and they will need to fork out more cash and CPF savings in upfront downpayments. That risk alone will make anyone think twice about swopping their homes for better ones.
But this is not the only curb that casts a wider net than it appears to at first. There is also the new maxim that private property owners must sell their homes within six months if they buy a HDB resale flat.
The aim of this is to dissuade would-be property investors from dabbling in the market for HDB flats - which should be prioritised for owner-occupiers - and pushing up their prices.
But any HDB owner who already owns a private property for investment may now find himself stuck as well.
If he wants to move, say to another HDB flat closer to his parents, he will have to sell his current flat first before buying a new one.
But the moment he sells the flat, he becomes classified as a private property owner because of his investment property. That means that if he then buys another HDB flat, he will have to sell his private property within six months - even though he is just moving house.
In effect, he may now never be able to move to another HDB flat for the rest of his life unless he is willing to sell both his current properties.
This makes private property a particularly risky investment asset for HDB flat-owners, for reasons completely unrelated to affordability.
Even buyers of private properties, while free of HDB restrictions, must now put more thought into their purchases.
Whatever home they buy, they must be prepared to live in it for at least three years - or pay a penalty in the form of a sellers' stamp duty, which can go up to 3 per cent of the purchase price.
This could affect shoebox apartments, many of which are bought as starter or investment homes, to be resold after a year or two.
So however you slice and dice it, it seems that the latest measures really leave only two groups of people completely unaffected.
The first are those rich enough to be unfettered by the new rules. By throwing various obstacles in the way of owning more than one home, the Government is sending a very clear signal that property is an investable asset class - with no restrictions - only for those who can afford it with money to spare.
The other group of people who will view the measures with equanimity are those who plan to buy only one home and stay in it for the rest of their lives.
Indeed, one of the main aims of the measures, said Mr Mah yesterday, is to ensure that all Singaporeans are able to secure a home - not an investment - for themselves. As Prime Minister Lee Hsien Loong has said, 'property is for people to buy to live in', meant as a nest egg and not as an easy way to make a quick buck.
If you subscribe to this view, and also think that property buyers should be a lot more prudent to start with, then the new measures tick all the right boxes.
But if you like the idea of moving from one home to another as your needs and lifestyle change, the slew of curbs would restrict your options, unless you are willing to stump up more upfront cash and accept lower levels of loan financing.
Buying a home will now be more of a long-term commitment than ever, and buyers must really think about their life plans for at least the next few years before taking that leap.
The housing market may become more stable, but it is also likely to be much less vibrant. And with the cooling moves coming just as Singapore's economy is entering an uncertain second half, there is a risk of the property market paling precipitously.
The important thing now is for the Government to closely watch if the impact of the measures turns out to be more widely felt than expected, and adjust them accordingly.
fiochan@sph.com.sg
Wednesday, August 25, 2010
Sim Lian Group and Popular Holdings
What do the two companies above have in common?
1. Both are local companies started from scratch.
2. Both are listed in the Singapore Exchange.
3. Both do not have high trading volume.
4. Both companies give dividend yield rate of about 8% or more.
5. Both are cheap companies.
6. Both have the biggest shareholder holding about 53% of total shares.
So what am I talking about?
I am talking about companies that can help you grow your savings.
Let's just talk about dividend yield.
Popular holdings gave out dividend of 1.2 cents per share for financial year ended 30 April 2010.
Current price of Popular Holdings is 15 cents.
This gives us a yield of 8%. (take dividend divided by share price times 100%)
Sim Lian Holdings gave out dividend of 5.1 cents per share for financial year ended 30 June 2010.
Current price of Sim Lian Group is 52 cents.
This gives us a yield of 9.8%.
Let's talk about their P/E ratio.
Popular Holdings earns 4.53 cents for financial year ended 30 April 2010. The P/E ratio is at only 3.31.
Thier net asset value (NAV) is already 21.45 cents. It means that we can buy Popular Holdings at a discount of 6.45 cents (30% discount).
Sim Lian Group earns 18.4 cents for financial year ended 30 June 2010. The P/E ratio is at only 2.83.
Their net asset value (NAV) is already 55 cents. It means that we can buy Sim Lian at a discount of 3 cents (5.5% discount)
Both companies have the largest shareholder holding about 53% of the total share available, which means small investors like us got no say in their proposal. But who cares? As long as these companies are well run and give us earnings every year, I don't see anything wrong with them holding more than 50% of the total shares.
If you got the time, go to their company websites and read their annual reports. Do some homework before you commit to invest in these two companies.
Sim Lian Group: http://www.simlian.com.sg/
Popular Holdings: http://www.popularworld.com/
Disclosure: Blogger holds shares of Popular Holdings. Blogger has no shares in Sim Lian Group.
Disclaimer: This post is written based on my own findings and views. It is not meant to be a blog to encourage buy or sell.
1. Both are local companies started from scratch.
2. Both are listed in the Singapore Exchange.
3. Both do not have high trading volume.
4. Both companies give dividend yield rate of about 8% or more.
5. Both are cheap companies.
6. Both have the biggest shareholder holding about 53% of total shares.
So what am I talking about?
I am talking about companies that can help you grow your savings.
Let's just talk about dividend yield.
Popular holdings gave out dividend of 1.2 cents per share for financial year ended 30 April 2010.
Current price of Popular Holdings is 15 cents.
This gives us a yield of 8%. (take dividend divided by share price times 100%)
Sim Lian Holdings gave out dividend of 5.1 cents per share for financial year ended 30 June 2010.
Current price of Sim Lian Group is 52 cents.
This gives us a yield of 9.8%.
Let's talk about their P/E ratio.
Popular Holdings earns 4.53 cents for financial year ended 30 April 2010. The P/E ratio is at only 3.31.
Thier net asset value (NAV) is already 21.45 cents. It means that we can buy Popular Holdings at a discount of 6.45 cents (30% discount).
Sim Lian Group earns 18.4 cents for financial year ended 30 June 2010. The P/E ratio is at only 2.83.
Their net asset value (NAV) is already 55 cents. It means that we can buy Sim Lian at a discount of 3 cents (5.5% discount)
Both companies have the largest shareholder holding about 53% of the total share available, which means small investors like us got no say in their proposal. But who cares? As long as these companies are well run and give us earnings every year, I don't see anything wrong with them holding more than 50% of the total shares.
If you got the time, go to their company websites and read their annual reports. Do some homework before you commit to invest in these two companies.
Sim Lian Group: http://www.simlian.com.sg/
Popular Holdings: http://www.popularworld.com/
Disclosure: Blogger holds shares of Popular Holdings. Blogger has no shares in Sim Lian Group.
Disclaimer: This post is written based on my own findings and views. It is not meant to be a blog to encourage buy or sell.
Sunday, August 15, 2010
Is it a good time to buy Genting Singapore now?
Genting Singapore just reported a better than expected second quarter results that beat analysts by 33%. So is it the right time to buy Genting Singapore shares now?
After announcement of the second quarter results, the share price has rocketed 15% to close near $1.50. At this price, giving it a P/E ratio of 15, Genting Singapore has to earn $0.10 per share for FY2010. As of 2H2010, their earnings per share is at $0. I still don't think that it is the right time to hold their shares yet.
On 24 august, shareholders will have to vote for the divestment of all the UK casinos. Once it's approved, we will still have to wait for the actual sales to realize.
So when is the right time? When the price goes back to $1.20 range, or if you feel rich, no harm buying now. The difference is only the percentage returns that you will get for your invested capital.
Else, just continue to save money and wait for the right time.
After announcement of the second quarter results, the share price has rocketed 15% to close near $1.50. At this price, giving it a P/E ratio of 15, Genting Singapore has to earn $0.10 per share for FY2010. As of 2H2010, their earnings per share is at $0. I still don't think that it is the right time to hold their shares yet.
On 24 august, shareholders will have to vote for the divestment of all the UK casinos. Once it's approved, we will still have to wait for the actual sales to realize.
So when is the right time? When the price goes back to $1.20 range, or if you feel rich, no harm buying now. The difference is only the percentage returns that you will get for your invested capital.
Else, just continue to save money and wait for the right time.
Tuesday, July 20, 2010
Can we still buy property in the already hot market?
The current property market is overheating. MM said probably no housing bubble yet. But we can see for ourselves how steep the price index is from the URA website.
So, can we buy property in the current market?
My answer is yes. You will still be able to find property that is undervalued. I bought a top floor (15th) 3 bedroom unit for $615 psf. This project is just 8 minutes walk from Hougang MRT station, Hougang Mall, Food Courts and within 1km of a SAP, Holy Innocents' Primary School.
The project may be 13 years old out of 99 years leasehold. You will not disagree that the potential for the upside is there. Comparing to neighboring estates that were selling at $700 psf, I was actually buying at a discount of 12.1%.
The maintenance of the estate was very well kept and the maintenance fee is only $180/month.
Another private property sector worth considering, landed properties. Some landed areas, outside core central, like Luxus Hills, Mimosa Terraces, Realty Park were all asking for prices that cannot be bought by the middle income family. So what can we do?
Look for alternatives.
I have been going around viewing open houses at different areas. Seletar, Teacher's Estate, Telok Kurau, Poh Huat area, Park Villas. Just take 2 areas for comparison. Park Villa is a 99 year leasehold terrace selling at $1.35 million while Teacher's Estate, a 999 year leasehold, terrace is selling for $1.3 million. Which is a better buy? I think you will have the answer now.
A 999 year or freehold terrace at other places listed above are asking for at least $1.8 million. How can a middle income family afford that kind of price?
Further investigation of the transacted prices at URA site confirms that Teacher's Estate is really a good buy. Prices were stable and in the uptrend even during the recession last year.
To buy a condominium unit, size 1200, at $1.5 million, at Meadows @Pierce or to buy a land, size 1800, for $1.3 million, it's your call.
Continue to save more money and look around for valuable properties. You will be able to climb up the property millionaire ladder one day.
Cheers.
So, can we buy property in the current market?
My answer is yes. You will still be able to find property that is undervalued. I bought a top floor (15th) 3 bedroom unit for $615 psf. This project is just 8 minutes walk from Hougang MRT station, Hougang Mall, Food Courts and within 1km of a SAP, Holy Innocents' Primary School.
The project may be 13 years old out of 99 years leasehold. You will not disagree that the potential for the upside is there. Comparing to neighboring estates that were selling at $700 psf, I was actually buying at a discount of 12.1%.
The maintenance of the estate was very well kept and the maintenance fee is only $180/month.
Another private property sector worth considering, landed properties. Some landed areas, outside core central, like Luxus Hills, Mimosa Terraces, Realty Park were all asking for prices that cannot be bought by the middle income family. So what can we do?
Look for alternatives.
I have been going around viewing open houses at different areas. Seletar, Teacher's Estate, Telok Kurau, Poh Huat area, Park Villas. Just take 2 areas for comparison. Park Villa is a 99 year leasehold terrace selling at $1.35 million while Teacher's Estate, a 999 year leasehold, terrace is selling for $1.3 million. Which is a better buy? I think you will have the answer now.
A 999 year or freehold terrace at other places listed above are asking for at least $1.8 million. How can a middle income family afford that kind of price?
Further investigation of the transacted prices at URA site confirms that Teacher's Estate is really a good buy. Prices were stable and in the uptrend even during the recession last year.
To buy a condominium unit, size 1200, at $1.5 million, at Meadows @Pierce or to buy a land, size 1800, for $1.3 million, it's your call.
Continue to save more money and look around for valuable properties. You will be able to climb up the property millionaire ladder one day.
Cheers.
Monday, July 19, 2010
Phase 1A of the downtrend
This piece of news is extracted from the businesstimes.
July 19, 2010, 8.40 am (Singapore time)
China to maintain property tightening
BEIJING - China will maintain its tightening campaign to cool real estate prices, the Minister of Housing and Urban-Rural Development said in remarks published on Monday, while urging local governments to build more affordable housing.
As Chinese economic growth slowed in the second quarter, some analysts and investors expected Beijing might loosen its efforts to temper the real estate sector, which accounts for more than 10 per cent of gross domestic product.
But Jiang Weixin, the housing minister, told a meeting of more than 70 mayors that the risks of doing so were too high.
'Once the policy is relaxed, property prices will rebound strongly. Our macro control efforts will then fail overnight, and the government will also lose the trust of its people,' he was quoted as saying by the China Business News.
China's property prices fell 0.1 per cent in June from May, the first monthly decline since February 2009, after Beijing rolled out a slew of measures in April, including higher required down payments and mortgage rates, to curb rapid housing price rises.
Mr Jiang urged the officials to speed up efforts to meet the country's target of building 5.8 million units of affordable housing this year.
His ministry will make a two-week check on the progress of construction beginning on Aug 10, he told the mayors. -- REUTERS
Now for my comments.
Prices of the properties in China as dropped 0.1% in June. It indicates that we have progressed from Phase 1 to Phase 1A. The dropped in property prices in China means that the other countries in Asia will follow suit. It may take a few months or even a few quarters for the Singapore property prices to go down too.
Prices will go down, but when? I do not know. Meanwhile, just need to continue to build our war chest with $$$ ammunition so that we can strike when the price is right.
Cheers.
Disclaimer: The above comments are personal comments. They should not be used to decide if one should buy or should sell their properties.
July 19, 2010, 8.40 am (Singapore time)
China to maintain property tightening
BEIJING - China will maintain its tightening campaign to cool real estate prices, the Minister of Housing and Urban-Rural Development said in remarks published on Monday, while urging local governments to build more affordable housing.
As Chinese economic growth slowed in the second quarter, some analysts and investors expected Beijing might loosen its efforts to temper the real estate sector, which accounts for more than 10 per cent of gross domestic product.
But Jiang Weixin, the housing minister, told a meeting of more than 70 mayors that the risks of doing so were too high.
'Once the policy is relaxed, property prices will rebound strongly. Our macro control efforts will then fail overnight, and the government will also lose the trust of its people,' he was quoted as saying by the China Business News.
China's property prices fell 0.1 per cent in June from May, the first monthly decline since February 2009, after Beijing rolled out a slew of measures in April, including higher required down payments and mortgage rates, to curb rapid housing price rises.
Mr Jiang urged the officials to speed up efforts to meet the country's target of building 5.8 million units of affordable housing this year.
His ministry will make a two-week check on the progress of construction beginning on Aug 10, he told the mayors. -- REUTERS
Now for my comments.
Prices of the properties in China as dropped 0.1% in June. It indicates that we have progressed from Phase 1 to Phase 1A. The dropped in property prices in China means that the other countries in Asia will follow suit. It may take a few months or even a few quarters for the Singapore property prices to go down too.
Prices will go down, but when? I do not know. Meanwhile, just need to continue to build our war chest with $$$ ammunition so that we can strike when the price is right.
Cheers.
Disclaimer: The above comments are personal comments. They should not be used to decide if one should buy or should sell their properties.
Sunday, July 4, 2010
Phase I of downtrend is on the way
This is an excerpt from the business times breaking news.
July 5, 2010, 1.22 pm (Singapore time)
China property prices to fall before long: minister
BEIJING - China's property prices will fall within a few months as government steps to cool the real estate market bite, Xu Shaoshi, minister of land and resources, said.
China introduced a slew of measures in April, including higher down payments and mortgage rates, to curb excessive real estate price rises, which the government sees as a threat to social stability.
'Property transactions have fallen now and prices have stagnated,' Mr Xu told a meeting of ministry officials on Sunday in Dalian, a northeastern port city.
'In another quarter's time or so, the property market will probably come to a full correction and prices will fall. But it's hard to say to what extent they will fall,' the official Xinhua news agency and other domestic media quoted him as saying.
Mr Xu added that China's land market had cooled and Beijing would continue to build more affordable housing, which could pull down the average level of house prices.
Nationwide, property prices rose 0.2 per cent in May, leaving them 12.4 per cent higher than a year earlier. The increases were smaller than in April. -- REUTERS
The china property market will take lead the downtrend. The rest of the region, where property markets are over heated will follow suit. Just wait for a quarter or two and we can strike using all our reserves in our war chest.
Wait no further, save more cash now.
July 5, 2010, 1.22 pm (Singapore time)
China property prices to fall before long: minister
BEIJING - China's property prices will fall within a few months as government steps to cool the real estate market bite, Xu Shaoshi, minister of land and resources, said.
China introduced a slew of measures in April, including higher down payments and mortgage rates, to curb excessive real estate price rises, which the government sees as a threat to social stability.
'Property transactions have fallen now and prices have stagnated,' Mr Xu told a meeting of ministry officials on Sunday in Dalian, a northeastern port city.
'In another quarter's time or so, the property market will probably come to a full correction and prices will fall. But it's hard to say to what extent they will fall,' the official Xinhua news agency and other domestic media quoted him as saying.
Mr Xu added that China's land market had cooled and Beijing would continue to build more affordable housing, which could pull down the average level of house prices.
Nationwide, property prices rose 0.2 per cent in May, leaving them 12.4 per cent higher than a year earlier. The increases were smaller than in April. -- REUTERS
The china property market will take lead the downtrend. The rest of the region, where property markets are over heated will follow suit. Just wait for a quarter or two and we can strike using all our reserves in our war chest.
Wait no further, save more cash now.
Sunday, June 27, 2010
More evidence to show drop in price in the pipeline?
HOT from http://www.businesstimes.com.sg/
June 28, 2010, 1.11 pm (Singapore time)
StanChart cuts S'pore property firms
SINGAPORE - Standard Chartered has downgraded its recommendations on Singapore property firms CapitaLand Ltd, City Developments Ltd and Keppel Land Ltd, citing lower launch prices in 2011 due to larger land supply.
'We expect an increase in the residential supply in the pipeline in 2011 mainly due to the record land supply the government has announced it will push out in the second half of 2010,' the bank said in a report.
In addition, it said it expects prices to enter a down-cycle if the government revises policies to increase public housing supply in the next six to 12 months.
It said it also forecasts launch prices to decline by 20 per cent in the mass market districts and 10 per cent in the prime districts in 2011.
Broker rating and target price:
CapitaLand, In-line, $3.95
City Developments, Underperform, $9.27
Keppel Land, Underperform, $3.35
-- REUTERS
This piece of fresh news has affirmed my views on the current property market. Property prices are indeed going towards the downcycle, if you have followed the chart from the URA website. If not, at least housing prices will stagnate.
Well, well, time to follow these steps.
1. Choose the district/area that you would like to buy your property.
2. Decide how many bedrooms you want.
3. Access http://www.ura.gov.sg/ weekly to check the transacted prices.
4. Get a reliable and trustworthy agent to update you. They have first hand news about the market sentiments.
5. Check with the bank for an in-principle approval of home loan.
6. Keep a record of your CPF statements, remember the minimum sum rule.
If you do not know how to do the calculations, I am glad to be of serivce.
7. Build more cash in the war chest.
8. Wait patiently.
Cheers.
June 28, 2010, 1.11 pm (Singapore time)
StanChart cuts S'pore property firms
SINGAPORE - Standard Chartered has downgraded its recommendations on Singapore property firms CapitaLand Ltd, City Developments Ltd and Keppel Land Ltd, citing lower launch prices in 2011 due to larger land supply.
'We expect an increase in the residential supply in the pipeline in 2011 mainly due to the record land supply the government has announced it will push out in the second half of 2010,' the bank said in a report.
In addition, it said it expects prices to enter a down-cycle if the government revises policies to increase public housing supply in the next six to 12 months.
It said it also forecasts launch prices to decline by 20 per cent in the mass market districts and 10 per cent in the prime districts in 2011.
Broker rating and target price:
CapitaLand, In-line, $3.95
City Developments, Underperform, $9.27
Keppel Land, Underperform, $3.35
-- REUTERS
This piece of fresh news has affirmed my views on the current property market. Property prices are indeed going towards the downcycle, if you have followed the chart from the URA website. If not, at least housing prices will stagnate.
Well, well, time to follow these steps.
1. Choose the district/area that you would like to buy your property.
2. Decide how many bedrooms you want.
3. Access http://www.ura.gov.sg/ weekly to check the transacted prices.
4. Get a reliable and trustworthy agent to update you. They have first hand news about the market sentiments.
5. Check with the bank for an in-principle approval of home loan.
6. Keep a record of your CPF statements, remember the minimum sum rule.
If you do not know how to do the calculations, I am glad to be of serivce.
7. Build more cash in the war chest.
8. Wait patiently.
Cheers.
Buying craze has indeed slowed down
Published June 28, 2010 (Business Times)
68 units sold at Waterfront Gold
Two of 5 blocks, or 150 units, of Bedok Reservoir condo released last Friday
By KALPANA RASHIWALA
FRASERS Centrepoint and Far East Organization have sold 68 of the 150 units for sale at the Waterfront Gold condo fronting Bedok Reservoir as of yesterday.
These were units released by the developers last Friday.
The 99-year leasehold condo, which has a total 361 units, is priced at $950 psf on average.
Over 70 per cent of units sold were smallish apartments - one bedders, one bedroom with study units and two bedders.
Buyers were predominantly Singaporeans and there was a roughly equal split between those with HDB and private addresses. In absolute price terms, the cheapest unit sold was about $555,000, for a 581 square foot, one-bedder on the second level. Both penthouses released (about 2,000 sq ft each) were sold at an average price of about $1,025 psf or $2.1 million each.
While Waterfront Gold's sales seem tepid compared with launches earlier this year, Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong said the outcome was 'within our expectation and quite remarkable given today's market sentiment'.
'We are testing the upper end of prices in the upgraders' market and because of the location and facilities, we are positioning Waterfront Gold as an upper-mid market condo rather than a mass-market product.
'For instance, we have a sky park with a dedicated express bubble lift and toilets in the development will have marble floors,' he added.
Mr Cheang also said the developers are offering two of the project's five blocks, or 150 units, as part of 'a deliberate attempt not to sell out the project'.
'We wish to sell progressively and keep the remaining three blocks until the location of the Bedok Reservoir Station on Downtown Line 3 is announced.'
Market watchers recall that during March/April, when home buying sentiment was stronger, developers used to achieve sales of about 300 units in the first weekend of a project's release.
Knight Frank managing director (residential services) Peter Ow attributed Waterfront Gold's sales result to a 'combination of challenging pricing and a slower market'.
Waterfront Gold is the third in a series of four condos that Frasers Centrepoint and Far East are developing on the former Waterfront View site.
Waterfront Waves was first released in January 2008 at an average price of about $750 psf, followed by the launch of Waterfront Key in July last year at $735 psf on average.
The developers have been raising prices in these two projects.
Waterfront Waves is now fully sold and the remaining 100-odd apartments at Waterfront Key are now selling at average prices of $850 psf for poolview units and $950 psf for reservoir-facing units.
Now for my comments:
The developers launch 150 units out of the 361 units that they have. What does this statement tell you?
Well, I see it that the developers have also seen a large dropped in the number of buyers. Anyway, why wait for the confirmation of the MRT station? Just launch all the units available and see the response.
Anyway, compared to March/April where selling 300 units can be easily achieved in the first weekend, but now? Only 68????
That's a 72% dropped in sales. What's more, most of the buyers are buying only the smaller units. What does this show again? No locals are interested to buy the bigger units to stay. So what do we do? Of course we target the bigger units.
Let's wait for more signals before we commit.
Have you started to build your war chest yet?
68 units sold at Waterfront Gold
Two of 5 blocks, or 150 units, of Bedok Reservoir condo released last Friday
By KALPANA RASHIWALA
FRASERS Centrepoint and Far East Organization have sold 68 of the 150 units for sale at the Waterfront Gold condo fronting Bedok Reservoir as of yesterday.
These were units released by the developers last Friday.
The 99-year leasehold condo, which has a total 361 units, is priced at $950 psf on average.
Over 70 per cent of units sold were smallish apartments - one bedders, one bedroom with study units and two bedders.
Buyers were predominantly Singaporeans and there was a roughly equal split between those with HDB and private addresses. In absolute price terms, the cheapest unit sold was about $555,000, for a 581 square foot, one-bedder on the second level. Both penthouses released (about 2,000 sq ft each) were sold at an average price of about $1,025 psf or $2.1 million each.
While Waterfront Gold's sales seem tepid compared with launches earlier this year, Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong said the outcome was 'within our expectation and quite remarkable given today's market sentiment'.
'We are testing the upper end of prices in the upgraders' market and because of the location and facilities, we are positioning Waterfront Gold as an upper-mid market condo rather than a mass-market product.
'For instance, we have a sky park with a dedicated express bubble lift and toilets in the development will have marble floors,' he added.
Mr Cheang also said the developers are offering two of the project's five blocks, or 150 units, as part of 'a deliberate attempt not to sell out the project'.
'We wish to sell progressively and keep the remaining three blocks until the location of the Bedok Reservoir Station on Downtown Line 3 is announced.'
Market watchers recall that during March/April, when home buying sentiment was stronger, developers used to achieve sales of about 300 units in the first weekend of a project's release.
Knight Frank managing director (residential services) Peter Ow attributed Waterfront Gold's sales result to a 'combination of challenging pricing and a slower market'.
Waterfront Gold is the third in a series of four condos that Frasers Centrepoint and Far East are developing on the former Waterfront View site.
Waterfront Waves was first released in January 2008 at an average price of about $750 psf, followed by the launch of Waterfront Key in July last year at $735 psf on average.
The developers have been raising prices in these two projects.
Waterfront Waves is now fully sold and the remaining 100-odd apartments at Waterfront Key are now selling at average prices of $850 psf for poolview units and $950 psf for reservoir-facing units.
Now for my comments:
The developers launch 150 units out of the 361 units that they have. What does this statement tell you?
Well, I see it that the developers have also seen a large dropped in the number of buyers. Anyway, why wait for the confirmation of the MRT station? Just launch all the units available and see the response.
Anyway, compared to March/April where selling 300 units can be easily achieved in the first weekend, but now? Only 68????
That's a 72% dropped in sales. What's more, most of the buyers are buying only the smaller units. What does this show again? No locals are interested to buy the bigger units to stay. So what do we do? Of course we target the bigger units.
Let's wait for more signals before we commit.
Have you started to build your war chest yet?
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