Property Market Sentiments

[greengiraffe]

http://www.straitstimes.com/business/163...-this-year

A house in Tanjong Katong was sold at auction yesterday for $16.3 million - the highest price fetched at auction this year. It was an estate sale. The single-storey bungalow at 25 Branksome Road went to a Singaporean buyer.

It sits on freehold land of about 13,844 sq ft, which works out to a pricing of about $1,177 per sq ft - below the median price of detached houses in District 15, which was about $1,246 per sq ft of land area in the second quarter.

[greengiraffe]

http://www.straitstimes.com/singapore/ho...tor=CS3-17

The Straits Times

Not time yet to unwind property cooling measures: Minister, Housing News & Top Stories - The Straits Times
Housing News -Property cooling measures are set to stay put, at least for now, National Development Minister Lawrence Wong said yesterday.. Read more atstraitstimes.com.

http://www.straitstimes.com/business/property/why-collective-sales-slowly-losing-shine?xtor=CS3-17

[img=100x66]filesystem:chrome-extension://clhhggbfdinjmjhajaheehoeibfljjno/temporary/812340264_42587_1625297015712236398.jpg[/img]
The Straits Times
Why collective sales slowly losing shine, Property News & Top Stories - The Straits Times
Property News -Demand for collective sale sites in Singapore has nearly dried up, with only two deals done since the beginning of last year - a far cry from the 16 transactions closed in 2013, according to data from real estate consultancy JLL.. Read more at straitstimes.com.

2 major property news on ST today that is worth deep thinking...

I m personally for rationale and prudent policies...

Positives:

Looks like PAP is waking up from previous lessons to have better controls over asset inflation and its negative impact on Singapore's economy and future generations. This is all the most important given that Singapore as a financial centre is also an easy hot $ centre like many other global financial centres.

Negatives:

Could it be that the incumbents has decided that they will make $ for themselves like what other governments will do in the name of the betterment of meeting citizens' aspirations... ultimately govt invisible hands remain important to sustain a basic momentum of economic activities.

Overall:

I think that basic housing prices in Singapore remains dear especially in the light of changed world order and its impact on Singapore as a top tier global cities.

It is a difficult balance due to historical mistakes of liberal migration policies and lack of controls over hot $ flow. It remains a progressive signs that someone is rational and sensible that appropriate and adequate controls are needed for future social balances... 

Fundamentally, demand will utimately be rooted to global economic activities and the impact on Singapore economic activities that I deemed extremely challenging over the next 3 years...

No Vested Interests
Busy Body As Always

[corydorus]

A lot of potential is locked up due to high housing price. it is the most expensive item to buy in a life time. Let's take a slightly extreme view. Say it only takes 5 years of annual earning of median income to fully purchase a reasonable HDB home. This will free up a lot of cash on other activities to meet individual aspiration instead in a rat race for 4 walls on a "rented land". We could see true blue singaporean in world sports, culture creativity, scientists and great entrepreneurs. I see a lot of positives in the curb measures.

[greengiraffe]

A lot of potential is locked up due to high housing price. it is the most expensive item to buy in a life time.  Let's take a slightly extreme view. Say it only takes 5 years of annual earning of median income to fully purchase a reasonable HDB home. This will free up a lot of cash on other activities to meet individual aspiration instead in a rat race for 4 walls on a "rented land". We could see true blue singaporean in world sports, culture creativity, scientists and great entrepreneurs. I see a lot of positives in the curb measures.

I m definitely for your views.

In a changed world order where business and product cycles have shortened tremendously, high asset prices is a drag on risks taking and creativity.

One can only hope that the restraint can go on for a longer time...

Imagine this, would HDB ever sell a 5 room flat for 180k for a 30 yr non-transferable lease or even say 135k for an entry 3 room flat? I m definitely for such a out of the box move...

[greengiraffe]

http://www.straitstimes.com/business/aus...pore-firms

$3.6b spent Down Under in first nine months, up from $1.9b in the same period last year
Rennie Whang

There has been no let-up in Singapore companies buying into properties Down Under this year.
In one of the latest deals, there could be a Fragrance or Parc Sovereign hotel in Perth's central business district. Global Premium Hotels said earlier this month it is paying A$23.85 million (S$24 million) for the site which could be redeveloped into a hotel. In the first nine months of this year, Singapore firms spent US$2.576 billion (S$3.57 billion) on 54 Australian properties, well up from US$1.396 billion (S$1.92 billion) and 46 properties in the same period last year, according to data compiled by Savills Research.

[greengiraffe]

http://www.straitstimes.com/business/spo...ies-abroad

S'pore-based firms snap up $24b of properties abroad

 
Purchases by Singapore-based firms of overseas real estate rose 58 per cent in value to US$17.2 billion (S$23.7 billion) in the first three quarters of this year compared with the same period last year, according to Savills Research. The analysis was based on properties and portfolios worth at least US$2.5 million.

[greengiraffe]

http://www.straitstimes.com/business/com...l-for-203m

for 308 rooms in Middle Rd - $659k/key fair?

[CityFarmer]

http://www.straitstimes.com/business/com...l-for-203m

for 308 rooms in Middle Rd - $659k/key fair?

I don't know the detail, but generally, fair value is normally at million $/key range for hospitality sector, based on what I know, isn't it? The price seems like a 50% discounted deal, may be a run-down hotel? 

Any expert to enlighten?

[lanoitar]

Quite a discount from Andy Ong's (ousted Sakae dir) asking price of $275m for this 2 years old hotel:

http://www.btinvest.com.sg/property/loca...-20140918/

[ValueMushroom]

The buyer got a good deal, for a freehold hotel in city area, at 659K a key.