Risks involved in Singapore property market swings
By Shirley Tan - Property Buyer Singapore Mortgage Consultants
The high-end properties as well as the mid to high-end properties risks largely depends on the demonstrated price volatility during market swings. The mass market condominiums are presently facing the challenge of a market affordability risks. With the present elevated market price levels, a new benchmark for prices could be formed provided the employment figures remain stable. The new prices could hold up for awhile depending on the employment factors. The HDB supports the condition of the mass market condominium. The HDB is the basis for mass market condominium pricing. The HDB is currently experiencing shortage of supply.
Availability of housing loan services
The only limitation that an individual may face is the availability of housing loan services that ignores cash down payment or owner’s cash equity part. Normally, housing loans require owner’s cash equity. The owner’s cash equity will serve as the down payment for the purchase of the property. The fact that the savings and cash holdings are not homogeneous across all income groups of the country, it would be impractical and misleading to use the national savings as a guide. To simplify the analysis, the cash down payment funding portion is ignored in the following computation.
Sample computation using condominiums such as Shenton Way
* 76 Shenton – between $1,900 – $2,400 psf.
* The Sail @ Marina Bay – between $2,000 – $3,300 psf
* International Plaza – $1,100 range
* Icon – $1,600 – $1,700 psf
* Some parts of China town, Tiong bahru, etc….
* Leonie Hill, Leonie Studio – $1,500 to $1,900
* Grange residences – $2,500 to $2,800 psf
* Ardmore park – $3,000 – $3,600 psf
* Balmoral – $1,500 – $1, 800 psf
* Cyan Bukit timah (New development) – $1,800 – $2,400 psf
* Aspen heights – $1,400 – $1,600 psf
* Rivergate – $1,600 to $1,900 psf
* 5th Avenue Condominium – $1,200 to $1,400 psf
Singapore BANKS CREDIT stance
Banks have generally been more careful in managing their loan portfolios, investments, and loan or credit facility offers. Banks such as Citibank that were greatly affected during the worldwide recession or sub-prime crisis are aggressively introducing the credit facility package Sibor with trend showing about + 0.5% ascending to 0.9% in June 2010. HSBC responded with the competition and started to campaign aggressively for their credit facilities. The Bank of East Asia eventually entered offering consumers the residential housing loan packages. This time, the banks learn to lend more freely and aggressively to regular households.
Friday, July 30, 2010
Thursday, July 29, 2010
Singapore interest rates and World Economy
Singapore Interest Rates and the World Economy
By Shirley Tan
July 28th, 2010
Posted by Shirley Tan under Singapore Property Investor, singapore mortgage refinance with No Comments
There is no effective way to measure the source of funds as well as the amount of funds each bank and lending institutions have. This would mean facing difficulty in making estimates as to the credit facilities and funds that they have available for lending to business enterprises and individuals. This could have help set the overnight benchmark interest rates. As the Federal Reserve gradually lower interest rates, it also slowly depletes its funds. The only thing that has been holding the interest rates is the Federal Reserve intervention. The interest could have skyrocketed without the timely intervention of the Federal Reserve.
CHINA
China is demonstrated good export trading and economic development. The economy is definitely showing increase signs of growth and consumption. China has a massive surplus and foreign currency reserves estimated to be worth more than US$2 trillion dollars. China’s surplus is one of the biggest worldwide! Their FDI is also impressive.
China supports the consumption of the United States as well as Europe. China has been exporting fish and other products to many neighboring countries as well as US and Europe. As long as China continue to export and support the US and Europe required commodities, they will have a good possibility to improve economic situation as well as build international relations effectively.
China has been supporting the consumption of the two big economic giants US and Europe, which makes it possible for these governments to issue more bonds. The action carries the hope that China and other rich sovereign countries would buy their bonds so they could efficiently support and finance national deficits. Issuing bonds while at the same time creating extra money supply might not be the best approach but it is still better than issuing more money supply without the support of a corresponding debt or higher tangible asset value.
The hot property market of China has become highly speculative. Although the rental yield of China’s properties are very low, these properties carry sky-high prices without any rental value. Many properties for rent are still unoccupied. This is surely a good example of bubble or what they would call, a musical chair, where one hopes to pass the problem to the next person for a profit. Assets that do not generate a yield turn into liabilities. If this situation will finally explode, the whole of Asia is set to suffer.
By Shirley Tan
July 28th, 2010
Posted by Shirley Tan under Singapore Property Investor, singapore mortgage refinance with No Comments
There is no effective way to measure the source of funds as well as the amount of funds each bank and lending institutions have. This would mean facing difficulty in making estimates as to the credit facilities and funds that they have available for lending to business enterprises and individuals. This could have help set the overnight benchmark interest rates. As the Federal Reserve gradually lower interest rates, it also slowly depletes its funds. The only thing that has been holding the interest rates is the Federal Reserve intervention. The interest could have skyrocketed without the timely intervention of the Federal Reserve.
CHINA
China is demonstrated good export trading and economic development. The economy is definitely showing increase signs of growth and consumption. China has a massive surplus and foreign currency reserves estimated to be worth more than US$2 trillion dollars. China’s surplus is one of the biggest worldwide! Their FDI is also impressive.
China supports the consumption of the United States as well as Europe. China has been exporting fish and other products to many neighboring countries as well as US and Europe. As long as China continue to export and support the US and Europe required commodities, they will have a good possibility to improve economic situation as well as build international relations effectively.
China has been supporting the consumption of the two big economic giants US and Europe, which makes it possible for these governments to issue more bonds. The action carries the hope that China and other rich sovereign countries would buy their bonds so they could efficiently support and finance national deficits. Issuing bonds while at the same time creating extra money supply might not be the best approach but it is still better than issuing more money supply without the support of a corresponding debt or higher tangible asset value.
The hot property market of China has become highly speculative. Although the rental yield of China’s properties are very low, these properties carry sky-high prices without any rental value. Many properties for rent are still unoccupied. This is surely a good example of bubble or what they would call, a musical chair, where one hopes to pass the problem to the next person for a profit. Assets that do not generate a yield turn into liabilities. If this situation will finally explode, the whole of Asia is set to suffer.
Singapore’s Macro Economy
Singapore’s Macro Economy
July 28th, 2010
Posted by Shirley Tan under Singapore Property Investor, singapore mortgage refinance with No Comments
Singapore economy is coming from a low base since the recession but still showed high GDP growth. The real strength of the economy is still uncertain. The GDP of Singapore would be pretty much the same. However, the increasing expatriates and immigrants needing housing, schools, food, services, etc, their massive immigration, has been affecting the growth of the overall nominal GDP values.
The condition implies that we would be expecting a slow rate ascent of the real property prices towards the end of 2010. However, the risks of the property buyers will continue to increase. A property buyer planning to purchase a property still needs to make a good decision based on research and other information.
A property investor looking for real estate property to invest should wait a few more years to experience a market flooded with properties developed by the government of Singapore. The government has been trying to develop properties in relation to their present massive land sales program. There is no speculation of a market crash since the Singapore government could always resort to bring in more foreigners to boost demand for housing, which will support high land prices.
July 28th, 2010
Posted by Shirley Tan under Singapore Property Investor, singapore mortgage refinance with No Comments
Singapore economy is coming from a low base since the recession but still showed high GDP growth. The real strength of the economy is still uncertain. The GDP of Singapore would be pretty much the same. However, the increasing expatriates and immigrants needing housing, schools, food, services, etc, their massive immigration, has been affecting the growth of the overall nominal GDP values.
The condition implies that we would be expecting a slow rate ascent of the real property prices towards the end of 2010. However, the risks of the property buyers will continue to increase. A property buyer planning to purchase a property still needs to make a good decision based on research and other information.
A property investor looking for real estate property to invest should wait a few more years to experience a market flooded with properties developed by the government of Singapore. The government has been trying to develop properties in relation to their present massive land sales program. There is no speculation of a market crash since the Singapore government could always resort to bring in more foreigners to boost demand for housing, which will support high land prices.
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