Dennis, I've got to salute you for always giving us words of encouragements. I actually found out that applying your "teaching" is quite a lonely journey. It actually do not appeal to people who have not got the right mindset yet. People like things which are exticing and cool, likewise in investing. They like famous and branded stocks. This is just human nature.
Last few weeks was trying to get a friend to attend your seminar. Was quite frustrated cos he actually invest without doing homework. Told him CMA was overpriced, try to look at starhill or suntec. He said "suntec? u sure? my fren say no good.. the dividend they take out from the NAV one..". I was quite frustrated actually knowing he doubted my advice which i know can really work. Another typical qs like " why did the guy bother to teach if he's so good, he can just retire and enjoy life is he's so good with investing". Incidentally he's quite successful with work and business, so like doubting people who are financially below his level. This is something like to say that a $10m-guy can not learn anything from a $1m or $100k-guy or whatever figure is definitely a wrong mindset to adopt.
I can't imagine Dennis' journey when he 1st started his seminar education. Must be a very lonely journey with many sceptical and doubting people along the way. Im glad you go all out and do it. Just want to encourage you to conduct the next seminar about the secret in doing business. Im sure many of us here will want to attend it
Property market sentiments
Moderators: alvin, learner, Dennis Ng
I will be shifting this discussion to under Financial Principles "Milllionarei by age 45 is possible" http://www.masteryourfinance.com/forum/ ... php?t=1272
Please post future comments relating to this topic over there instead.
This is why I only wrote my book after I reached my first million in year 2008 (Book was launched on 30 May 2009), and only started conducting How to Save and Accumulate One Million Dollars Seminar on 23 May 2009.
His skepticism is not unfounded. I realised quite a number of Trainers are "fake", that they did NOT become Rich from what they teach but their main source of income is Seminars, not whatever investment strategies they teach. This is one Reason why I decided to start conducting seminars in year 2009 as I reached the point of "I can't stand it" on some of the "Rubbish" Seminars out there.
Lonely? Setbacks? Doubts? Skeptics?
Yes, I have encountered many of these many times along my journey, until I have lost count of them.
Well, none of these really can put me down becos my Guiding Light is Conscience (so why do I be upset about what others think of me) and what pushes me to go forward is Passion and my Definite Major Life Purpose of helping to educate the public on Financial Matters.
I've been sharing on internet forums since 1999...stopped in year 2007 after I realised much of the time is spent responding to some silly attackers on internet. So this is the 11th year I'm doing what I'm doing. Now as my business on track, I get to spend more time daily to pursue my Personal Life Mission of educating the public on financial matters.
P.S. I'm also on the look out for a few persons who want to join me in educating the public,I can even train them to conduct Financial Seminars, so that we can reach out and benefit even more people. The goal is to help one million people achieve one million dollars.
When the Student is ready, the Teacher will Appear. As mentioned, before age 28, I felt anyone talking about Money is very disgusting. I only changed my mindset and started to learn actively since age 28. Perhaps your friend should consider the possibility that if he learns more, he might be a few million dollars richer, and imagine what he had "lost" becos he is NOT Richer than he IS right now.
I achieved one million dollars, excluding the value of my house in 15 years when my total income for that 15 years is S$1.08 million. My life experience shows it is possible for average Singaporean to become financially free without having a HIGH income.
However, to have one million if one earns total of 10 million dollars is no big deal. To have one million dollars when one earns slightly over one million dollars, I think NOT many can do that and perhaps, there might be things they can learn from me.
This year I'll be reaching my 2nd million dollars, or additional 1 million dollars in 2 years instead of 15 years, and I'll be reaching S$10 million in 5 years' time. Perhaps your friend might only be considering to learn form me when I reach deca-millionaire status (more than S$10 million dollars). Well, he would have lost 5 years of his time then.
Opportunity Cost is something most people omit or overlooked.
Please post future comments relating to this topic over there instead.
yes, agree.Stradlinz wrote:Dennis, I've got to salute you for always giving us words of encouragements. I actually found out that applying your "teaching" is quite a lonely journey. It actually do not appeal to people who have not got the right mindset yet. People like things which are exticing and cool, likewise in investing. They like famous and branded stocks. This is just human nature.
Last few weeks was trying to get a friend to attend your seminar. Was quite frustrated cos he actually invest without doing homework. Told him CMA was overpriced, try to look at starhill or suntec. He said "suntec? u sure? my fren say no good.. the dividend they take out from the NAV one..". I was quite frustrated actually knowing he doubted my advice which i know can really work. Another typical qs like " why did the guy bother to teach if he's so good, he can just retire and enjoy life is he's so good with investing". Incidentally he's quite successful with work and business, so like doubting people who are financially below his level. This is something like to say that a $10m-guy can not learn anything from a $1m or $100k-guy or whatever figure is definitely a wrong mindset to adopt.
I can't imagine Dennis' journey when he 1st started his seminar education. Must be a very lonely journey with many sceptical and doubting people along the way. Im glad you go all out and do it. Just want to encourage you to conduct the next seminar about the secret in doing business. Im sure many of us here will want to attend it
This is why I only wrote my book after I reached my first million in year 2008 (Book was launched on 30 May 2009), and only started conducting How to Save and Accumulate One Million Dollars Seminar on 23 May 2009.
His skepticism is not unfounded. I realised quite a number of Trainers are "fake", that they did NOT become Rich from what they teach but their main source of income is Seminars, not whatever investment strategies they teach. This is one Reason why I decided to start conducting seminars in year 2009 as I reached the point of "I can't stand it" on some of the "Rubbish" Seminars out there.
Lonely? Setbacks? Doubts? Skeptics?
Yes, I have encountered many of these many times along my journey, until I have lost count of them.
Well, none of these really can put me down becos my Guiding Light is Conscience (so why do I be upset about what others think of me) and what pushes me to go forward is Passion and my Definite Major Life Purpose of helping to educate the public on Financial Matters.
I've been sharing on internet forums since 1999...stopped in year 2007 after I realised much of the time is spent responding to some silly attackers on internet. So this is the 11th year I'm doing what I'm doing. Now as my business on track, I get to spend more time daily to pursue my Personal Life Mission of educating the public on financial matters.
P.S. I'm also on the look out for a few persons who want to join me in educating the public,I can even train them to conduct Financial Seminars, so that we can reach out and benefit even more people. The goal is to help one million people achieve one million dollars.
When the Student is ready, the Teacher will Appear. As mentioned, before age 28, I felt anyone talking about Money is very disgusting. I only changed my mindset and started to learn actively since age 28. Perhaps your friend should consider the possibility that if he learns more, he might be a few million dollars richer, and imagine what he had "lost" becos he is NOT Richer than he IS right now.
I achieved one million dollars, excluding the value of my house in 15 years when my total income for that 15 years is S$1.08 million. My life experience shows it is possible for average Singaporean to become financially free without having a HIGH income.
However, to have one million if one earns total of 10 million dollars is no big deal. To have one million dollars when one earns slightly over one million dollars, I think NOT many can do that and perhaps, there might be things they can learn from me.
This year I'll be reaching my 2nd million dollars, or additional 1 million dollars in 2 years instead of 15 years, and I'll be reaching S$10 million in 5 years' time. Perhaps your friend might only be considering to learn form me when I reach deca-millionaire status (more than S$10 million dollars). Well, he would have lost 5 years of his time then.
Opportunity Cost is something most people omit or overlooked.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Is demand for GLS sites outstripping supply?
Going by recent state tenders, new records likely to be set in residential property prices
Arthur Sim
Correspondent
The Business Times
Thursday, 13 May 2010
Record property prices are being set for new developments even before a single unit is sold.
While this may seem ludicrous to some, high prices that developers have been paying for recent Government Land Sales (GLS) sites already presupposes this, suggesting that demand for GLS sites is outstripping supply.
A site at Simei Street 3 has just sold for $152.69 million after receiving 18 bids. Analysts at CBRE believe a new project on this site would have a breakeven cost of $860-$900 psf and would fetch an average price of around $1,000 psf. Interestingly, CBRE also noted that units of a new development in the same area went for $660-750 psf this year.
Last month, a site at Boon Lay Way sold for $303 million after receiving 14 bids. CBRE said then that this means the development would have a breakeven cost in the $800-$870 psf range with the developer selling the units for at least $1,000 psf. This would similarly set a new benchmark for the area, as subsale units of The Caspian in the vicinity transacted at $650-800 psf while resale units at The Lakeshore nearby have been trading at $680-900 psf over the previous 4 months.
Also likely to set a new benchmark for Upper Thomson Road will be the development built on a site that sold for $251.3 million in November 2009. With an estimated breakeven cost of about $850-$900 psf, units will sell for over $1,000 psf. The developer who bought the site also recently helped set a new benchmark price for the West Coast with its development that sold for between $1,000 psf and $1,200 psf.
Operating in the free market, developers can pay anything they want for GLS sites. Some of the bigger developers might even find the current prices affordable, especially with the current low interest rates.
In this light, the government might want to consider if the rate at which it conducts land sales is an effective enough strategy to maintain the supply/demand balance.
But going by some of the recent tender prices for government land sales, efforts to keep property prices in check by releasing more sites do not seem to be working, with tender prices on the GLS reserve list at least, much higher than what the government is actually prepared to accept.
The tender process for reserve list sites is unique in that the site is only released for public tender after one developer has committed to make a minimum bid that is acceptable by the government. This in effect 'triggers' the site for public tender and sets a 'reserve price' for the site.
While it is not defined as such, the 'trigger price', which is made public, translates as the minimum price the government is prepared to accept for the land.
Looking at the four GLS reserve list sites that were awarded in the second half of 2009, what is interesting to note is that all sold for 150%-200% more than the trigger price.
The one reserve list site sold in 2010 so far has gone for 80% more than the trigger price.
In comparison, the two sites on the reserve list that sold in the second half of 2007 during the previous peak sold for just between 25-30% more than the trigger price.
The one reserve list site that sold in the first half of 2008 went for 70% more than the trigger price, but it should be pointed out that the trigger price for that site was just $30 million.
The dynamics of the property market were different during the recent peak in 2007, with most land sales derived from collective sale sites. Property prices were also largely driven by the high-end market. So it is difficult to make a like-for-like comparison.
What is easier to say for certain, however, is that the government clearly wants to keep property prices in check and the GLS is one strategy it employs to do this, largely by making what it believes is a reasonable number of sites available for development with supply of new sites solely in its hands.
But one negative consequence of this was played out in 2006 and 2007, when there were fewer GLS sites available and developers turned instead to the collective sales market that resulted in the 'en bloc fever' which to some degree, destabilised the property market by creating significant supply and demand imbalances - the repercussions of which are still being felt today.
By controlling the supply of development sites again, the government has released a record number of sites for sale through the GLS. For the 1H10, residential sites with a total potential of over 10,000 units have been made available through the GLS, the highest number of potential units in recent years.
Need for faster response
Still, the high bids received by developers suggest that the market can absorb even more units.
Certainly if 20,000 potential units were made available through the GLS, the current bidding would not be as aggressive.
While the government has acted to cool the market recently, it seems it will have to respond much faster to market movements.
It is true that the already large number of residential sites on the current GLS programme (H110) was considered by some to have been too many. But judging by developers' appetites in recent tenders, it may need to release many more in H210 or prices will keep going up.
Going by recent state tenders, new records likely to be set in residential property prices
Arthur Sim
Correspondent
The Business Times
Thursday, 13 May 2010
Record property prices are being set for new developments even before a single unit is sold.
While this may seem ludicrous to some, high prices that developers have been paying for recent Government Land Sales (GLS) sites already presupposes this, suggesting that demand for GLS sites is outstripping supply.
A site at Simei Street 3 has just sold for $152.69 million after receiving 18 bids. Analysts at CBRE believe a new project on this site would have a breakeven cost of $860-$900 psf and would fetch an average price of around $1,000 psf. Interestingly, CBRE also noted that units of a new development in the same area went for $660-750 psf this year.
Last month, a site at Boon Lay Way sold for $303 million after receiving 14 bids. CBRE said then that this means the development would have a breakeven cost in the $800-$870 psf range with the developer selling the units for at least $1,000 psf. This would similarly set a new benchmark for the area, as subsale units of The Caspian in the vicinity transacted at $650-800 psf while resale units at The Lakeshore nearby have been trading at $680-900 psf over the previous 4 months.
Also likely to set a new benchmark for Upper Thomson Road will be the development built on a site that sold for $251.3 million in November 2009. With an estimated breakeven cost of about $850-$900 psf, units will sell for over $1,000 psf. The developer who bought the site also recently helped set a new benchmark price for the West Coast with its development that sold for between $1,000 psf and $1,200 psf.
Operating in the free market, developers can pay anything they want for GLS sites. Some of the bigger developers might even find the current prices affordable, especially with the current low interest rates.
In this light, the government might want to consider if the rate at which it conducts land sales is an effective enough strategy to maintain the supply/demand balance.
But going by some of the recent tender prices for government land sales, efforts to keep property prices in check by releasing more sites do not seem to be working, with tender prices on the GLS reserve list at least, much higher than what the government is actually prepared to accept.
The tender process for reserve list sites is unique in that the site is only released for public tender after one developer has committed to make a minimum bid that is acceptable by the government. This in effect 'triggers' the site for public tender and sets a 'reserve price' for the site.
While it is not defined as such, the 'trigger price', which is made public, translates as the minimum price the government is prepared to accept for the land.
Looking at the four GLS reserve list sites that were awarded in the second half of 2009, what is interesting to note is that all sold for 150%-200% more than the trigger price.
The one reserve list site sold in 2010 so far has gone for 80% more than the trigger price.
In comparison, the two sites on the reserve list that sold in the second half of 2007 during the previous peak sold for just between 25-30% more than the trigger price.
The one reserve list site that sold in the first half of 2008 went for 70% more than the trigger price, but it should be pointed out that the trigger price for that site was just $30 million.
The dynamics of the property market were different during the recent peak in 2007, with most land sales derived from collective sale sites. Property prices were also largely driven by the high-end market. So it is difficult to make a like-for-like comparison.
What is easier to say for certain, however, is that the government clearly wants to keep property prices in check and the GLS is one strategy it employs to do this, largely by making what it believes is a reasonable number of sites available for development with supply of new sites solely in its hands.
But one negative consequence of this was played out in 2006 and 2007, when there were fewer GLS sites available and developers turned instead to the collective sales market that resulted in the 'en bloc fever' which to some degree, destabilised the property market by creating significant supply and demand imbalances - the repercussions of which are still being felt today.
By controlling the supply of development sites again, the government has released a record number of sites for sale through the GLS. For the 1H10, residential sites with a total potential of over 10,000 units have been made available through the GLS, the highest number of potential units in recent years.
Need for faster response
Still, the high bids received by developers suggest that the market can absorb even more units.
Certainly if 20,000 potential units were made available through the GLS, the current bidding would not be as aggressive.
While the government has acted to cool the market recently, it seems it will have to respond much faster to market movements.
It is true that the already large number of residential sites on the current GLS programme (H110) was considered by some to have been too many. But judging by developers' appetites in recent tenders, it may need to release many more in H210 or prices will keep going up.
In Hong Kong, property land prices are still heading up....
19 May 2010 - Henderson Land Development chairman Lee Shau-kee paid HK$68,229 (US$8,750) per square foot for the site in the Peak's Barker Road at a public auction, said real-estate services firm Jones Lang LaSalle, which organised the sale on Tuesday.
The 82-year-old's son, Martin, made light of the whopping price tag for the site in one of Hong Kong's most exclusive neighbourhoods, high above the glittering financial district.
'The price is reasonable but it is not something bought for money,' he was quoted as saying by the South China Morning Post.
'Even if you are willing to spend a fortune, you may not be able to get something you fancy. We will build three or four two-to-three storey houses for our family to live in.'
In February, Forbes business magazine listed Lee Shau-kee as Hong Kong's second-richest person, with a net worth of US$19 billion, behind Cheung Kong Holdings chief Li Ka-shing.
Henderson Land set an Asian record last October when it sold a duplex in the former British colony for HK$71,280 per square foot.
Such deals have highlighted the massive gap in living conditions between the rich and poor in Hong Kong, where some residents live in wire mesh abodes known as 'cage homes' that measure around 15 square feet (1.4 square metres). The issue has prompted government moves to introduce the territory's first ever minimum wage.
The latest eye-popping sale comes a week after Hong Kong said efforts to cool the territory's property market showed signs of working, following a lacklustre response to a sale of land near the airport.
Government officials have taken a more high-profile stance on the issue of soaring residential property prices after they jumped nearly 30 per cent in 2009.
Apart from increasing land supply, Hong Kong has also hiked stamp duty for luxury flats to curb speculation and pledged to curb excessive mortgage lending. -- AFP 19
19 May 2010 - Henderson Land Development chairman Lee Shau-kee paid HK$68,229 (US$8,750) per square foot for the site in the Peak's Barker Road at a public auction, said real-estate services firm Jones Lang LaSalle, which organised the sale on Tuesday.
The 82-year-old's son, Martin, made light of the whopping price tag for the site in one of Hong Kong's most exclusive neighbourhoods, high above the glittering financial district.
'The price is reasonable but it is not something bought for money,' he was quoted as saying by the South China Morning Post.
'Even if you are willing to spend a fortune, you may not be able to get something you fancy. We will build three or four two-to-three storey houses for our family to live in.'
In February, Forbes business magazine listed Lee Shau-kee as Hong Kong's second-richest person, with a net worth of US$19 billion, behind Cheung Kong Holdings chief Li Ka-shing.
Henderson Land set an Asian record last October when it sold a duplex in the former British colony for HK$71,280 per square foot.
Such deals have highlighted the massive gap in living conditions between the rich and poor in Hong Kong, where some residents live in wire mesh abodes known as 'cage homes' that measure around 15 square feet (1.4 square metres). The issue has prompted government moves to introduce the territory's first ever minimum wage.
The latest eye-popping sale comes a week after Hong Kong said efforts to cool the territory's property market showed signs of working, following a lacklustre response to a sale of land near the airport.
Government officials have taken a more high-profile stance on the issue of soaring residential property prices after they jumped nearly 30 per cent in 2009.
Apart from increasing land supply, Hong Kong has also hiked stamp duty for luxury flats to curb speculation and pledged to curb excessive mortgage lending. -- AFP 19
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
TODAYonline News Alert for May 21, 2010
While the announcement on Monday that developers sold 2,207 housing units last month did not shock, it certainly caused a huge surprise.
The total was the second-highest number achieved since records began being kept from June 2007 onwards.
A closer analysis of the figures has shown that prices have continued to inch up.
The highest monthly sales figure of 2,772 was achieved in July last year. The Government introduced its first set of cooling measures soon after that, in mid September, and it did so again in February, after another spike in sales in January.
Will we be seeing a third set soon?
The usual comments were made following the disclosure of the sales figure: That demand at this rate was not sustainable and should ease for the rest of the year. I recall that this warning was given about six months ago and that we have been saying the same almost every month since.
Before the release of the recent figures on Monday, two tenders for private housing sites closed within a week of each other.
The results were notable for the good participation rate from developers - 14 bidders for the Boon Lay site and 18 for the Simei Street 3 site - and the high prices achieved. The estimated selling prices of both projects add to the spectre of continued price rises for the foreseeable future.
Will the authorities redouble their efforts to ensure that there is enough supply to meet the high demand for sites as indicated earlier? Can we expect another slate of sites to be offered soon?
What these two events showed is that there is still ample liquidity in the market. If we assume that developers take a 50 per cent loan for their sites, there is still a huge pile of about $1.5 billion left over from the 13 unsuccessful bidders for the Boon Lay site and another $1.1 billion from the 17 unsuccessful bidders for the Simei site.
While there were a few repeat bidders, these were for the sites alone. We have not considered construction and other development costs or even tenders for public housing sites yet.
How can this liquidity beast be tamed? I termed it a beast because, if left unchecked, it can lead to the ruin of many in the market.
Let's consider the situation in China. It has raised mortgage rates, property taxes, restricted households to a single purchase, requested banks not to finance purchases beyond the second property and introduced a host of other measures.
Despite the controls, property prices in 70 cities rose last month by an average 12.8 per cent from a year earlier, higher than the annual 11.7 per cent increase in March and the fastest pace since the Statistics Bureau began to put out monthly figures in July 2005. However, there were news reports towards the end of last month that Chinese property prices had stopped rising and that transaction volumes had dwindled.
The question is: Was it because of the measures? Or was it because of the economic storm clouds over Europe stemming from the Greek crisis and the subsequent plunge in the share markets?
I would say it is the latter. As such, once the Greek crisis passes, expect the buying to continue. If not, touch wood, the worldwide economic repercussions will ensure that the day of reckoning for the property markets throughout Asia come sooner rather than later.
In Singapore, the authorities may continue with their recent accelerated pace of releasing sites but up to a point enough becomes too much, even if developers continue to splurge on sites. Excessive liquidity distorts rational decision-making.
The policy focus has to shift back to the demand side but if China has so much difficulty taming its own property market, how much more will it take to tame our own liquidity beast considering that we have not really started?
Colin Tan is Head, Research and Consultancy, Chesterton Suntec International
While the announcement on Monday that developers sold 2,207 housing units last month did not shock, it certainly caused a huge surprise.
The total was the second-highest number achieved since records began being kept from June 2007 onwards.
A closer analysis of the figures has shown that prices have continued to inch up.
The highest monthly sales figure of 2,772 was achieved in July last year. The Government introduced its first set of cooling measures soon after that, in mid September, and it did so again in February, after another spike in sales in January.
Will we be seeing a third set soon?
The usual comments were made following the disclosure of the sales figure: That demand at this rate was not sustainable and should ease for the rest of the year. I recall that this warning was given about six months ago and that we have been saying the same almost every month since.
Before the release of the recent figures on Monday, two tenders for private housing sites closed within a week of each other.
The results were notable for the good participation rate from developers - 14 bidders for the Boon Lay site and 18 for the Simei Street 3 site - and the high prices achieved. The estimated selling prices of both projects add to the spectre of continued price rises for the foreseeable future.
Will the authorities redouble their efforts to ensure that there is enough supply to meet the high demand for sites as indicated earlier? Can we expect another slate of sites to be offered soon?
What these two events showed is that there is still ample liquidity in the market. If we assume that developers take a 50 per cent loan for their sites, there is still a huge pile of about $1.5 billion left over from the 13 unsuccessful bidders for the Boon Lay site and another $1.1 billion from the 17 unsuccessful bidders for the Simei site.
While there were a few repeat bidders, these were for the sites alone. We have not considered construction and other development costs or even tenders for public housing sites yet.
How can this liquidity beast be tamed? I termed it a beast because, if left unchecked, it can lead to the ruin of many in the market.
Let's consider the situation in China. It has raised mortgage rates, property taxes, restricted households to a single purchase, requested banks not to finance purchases beyond the second property and introduced a host of other measures.
Despite the controls, property prices in 70 cities rose last month by an average 12.8 per cent from a year earlier, higher than the annual 11.7 per cent increase in March and the fastest pace since the Statistics Bureau began to put out monthly figures in July 2005. However, there were news reports towards the end of last month that Chinese property prices had stopped rising and that transaction volumes had dwindled.
The question is: Was it because of the measures? Or was it because of the economic storm clouds over Europe stemming from the Greek crisis and the subsequent plunge in the share markets?
I would say it is the latter. As such, once the Greek crisis passes, expect the buying to continue. If not, touch wood, the worldwide economic repercussions will ensure that the day of reckoning for the property markets throughout Asia come sooner rather than later.
In Singapore, the authorities may continue with their recent accelerated pace of releasing sites but up to a point enough becomes too much, even if developers continue to splurge on sites. Excessive liquidity distorts rational decision-making.
The policy focus has to shift back to the demand side but if China has so much difficulty taming its own property market, how much more will it take to tame our own liquidity beast considering that we have not really started?
Colin Tan is Head, Research and Consultancy, Chesterton Suntec International
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
http://www.channelnewsasia.com/stories/ ... 29/1/.html
Qing Dao puts in top bid for Upper Serangoon residential site
By Janice Teo | Posted: 02 June 2010 1946 hrs
SINGAPORE : Developer Qing Dao Construction has put in a top bid of S$113.7 million for a residential land parcel in Upper Serangoon. That works out to about S$607 per square foot.
Consultants Colliers International said this is also the second highest price recorded for a 99-year leasehold land parcel sold by the government for non-landed housing in the city fringe area.
The tender by the Urban Redevelopment Authority received 15 bids in all.
The site at Upper Serangoon Road and Pheng Geck Avenue has a lease term of 99 years and is meant for residential development.
The second highest bid came from SP Setia International, which put in a bid of S$110.6 million.
Realty Consortium rounded off the top three bids with an offer of S$95.3 million.
The minimum offer price for the site was S$60 million.
Property consultancy CB Richard Ellis said based on the top bid, units in this new project could possibly sell above S$1,000 per square foot.
The consultancy also noted that the bullish bids showed that developers are confident of sites that are located close to MRT stations.
In the first quarter of this year, units at nearby developments like 8 @ Woodleigh and Woodsville 28 were transacted in the sub-sale market at between S$880 and S$1,130 per square foot.
- CNA/al
Qing Dao puts in top bid for Upper Serangoon residential site
By Janice Teo | Posted: 02 June 2010 1946 hrs
SINGAPORE : Developer Qing Dao Construction has put in a top bid of S$113.7 million for a residential land parcel in Upper Serangoon. That works out to about S$607 per square foot.
Consultants Colliers International said this is also the second highest price recorded for a 99-year leasehold land parcel sold by the government for non-landed housing in the city fringe area.
The tender by the Urban Redevelopment Authority received 15 bids in all.
The site at Upper Serangoon Road and Pheng Geck Avenue has a lease term of 99 years and is meant for residential development.
The second highest bid came from SP Setia International, which put in a bid of S$110.6 million.
Realty Consortium rounded off the top three bids with an offer of S$95.3 million.
The minimum offer price for the site was S$60 million.
Property consultancy CB Richard Ellis said based on the top bid, units in this new project could possibly sell above S$1,000 per square foot.
The consultancy also noted that the bullish bids showed that developers are confident of sites that are located close to MRT stations.
In the first quarter of this year, units at nearby developments like 8 @ Woodleigh and Woodsville 28 were transacted in the sub-sale market at between S$880 and S$1,130 per square foot.
- CNA/al
seems like developers are still confident. The winning bid for the land means the condo needs to be sold at S$1,000 to S$1,100 to be profitable. Looks like S$1,000 psf is now the "new" average price for condos?Stradlinz wrote:Seems like developers are very bullish abt Singapore property markets right now despite the turmoil in Europe and China's property market cooling measures by Chinese govt
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
The "new average" of $1k is true especially for mass market condos near to MRT. Even the high for The Centris at Boon Lay MRT was around $930/psf. Casa merah and Optima are very close to breaching the $1k markDennis Ng wrote:seems like developers are still confident. The winning bid for the land means the condo needs to be sold at S$1,000 to S$1,100 to be profitable. Looks like S$1,000 psf is now the "new" average price for condos?
That said, it is not impossible for prices to fall by up to 30% in future. Year 2012 and year 2013 will see over 10,000 condo units completing. The main increase in Supply is in year 2012 and year 2013, at 13,246 and 15,492 respectively. In year 2014, the number falls to 9,049.Stradlinz wrote:The "new average" of $1k is true especially for mass market condos near to MRT. Even the high for The Centris at Boon Lay MRT was around $930/psf. Casa merah and Optima are very close to breaching the $1k markDennis Ng wrote:seems like developers are still confident. The winning bid for the land means the condo needs to be sold at S$1,000 to S$1,100 to be profitable. Looks like S$1,000 psf is now the "new" average price for condos?
The government is also going to release alot of land in second half of year 2010 (see news story below). All these land sold will add to the units potentially completing in year 2013 and 2014...which are not factored into the above figure.
Below is what I wrote in www.HousingLoanSG.com on 11 April 2010:
11 April 2010 - I just checked the latest info compiled by URA in 4Q 2009.
The link is here:
http://www.ura.gov.sg/realEstateWeb/rea ... Search1.do
Year 2010 expected to have 7,584 private property units completed.
Year 2011 about 9,196.
The main increase in Supply is in year 2012 and year 2013, at 13,246 and 15,492 respectively. In year 2014, the number falls to 9,049.
Thus, based on the numbers, it would appear that year 2010 we are still likely to see Supply insufficient to meet Demand, thereby causing an "upward pressure" on Prices.
The Economy and Stock Market in year 2010 are expected to do well, typically this will lead to Property Market doing well as well.
Thus, in the next few months, unless something unexpected happens, we are likely to see prices continue to go up by say 10% to 20% in year 2010. Year 2011 the supply is also not too high.....
The Data again seems to point to a possible "correction" in property prices in Year 2012 if demand falls...
23 May 2010
SINGAPORE -(Dow Jones)- Singapore's Ministry of National Development said it will place 18 new property sites on the confirmed list of its government land sales program for the second half of 2010.
The 18 sites will be able to yield a total of 8,135 residential units, the largest number of units from the confirmed list since the government introduced the confirmed list system in the second half of 2001, the ministry said in a statement late Friday.
The government has also placed 13 additional sites on the reserved list for the second half, which can yield 5,770 residential units.
The government said the additional sites will be made available "in view of the strong demand for private housing and land for private residential developments."
-By Sam Holmes, Dow Jones Newswires; +65-6415-4157; samuel.holmes@dowjones.com
Read more: http://www.nasdaq.com/aspx/stock-market ... z0pwBtJoIq
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Yes I shared your concern about the TOPs units in 2012 and 2013. If the economy do not grow enough by then, we will have a real trouble. IMO these mass markets units breaching the $1k mark are considered high risk and the prices are at historical high. As you have mentioned earlier, the main risks are China's property crashing. From the past months, the stock market and property market in China do not look so good. So I think the risks have actually increased for now.
On the positive, I actually felt Singapore has evolved during the last few years. With the 2 IRs, developments around Marina Bay, more upscale shopping malls, fine dining, better transport connectivity and so on actually appeals to a lot more foreigners. They now find Singapore a very nice place to live in and to set up their second home, like sending their children here to study. So fundamentals has improved. However I think it will benefit the High-end segment the most, while mass market are still about affordability of locals. Off course the above are only my observasions and I might be wrong
On the positive, I actually felt Singapore has evolved during the last few years. With the 2 IRs, developments around Marina Bay, more upscale shopping malls, fine dining, better transport connectivity and so on actually appeals to a lot more foreigners. They now find Singapore a very nice place to live in and to set up their second home, like sending their children here to study. So fundamentals has improved. However I think it will benefit the High-end segment the most, while mass market are still about affordability of locals. Off course the above are only my observasions and I might be wrong
Hi Stradinz,Stradlinz wrote:Yes I shared your concern about the TOPs units in 2012 and 2013. If the economy do not grow enough by then, we will have a real trouble. IMO these mass markets units breaching the $1k mark are considered high risk and the prices are at historical high. As you have mentioned earlier, the main risks are China's property crashing. From the past months, the stock market and property market in China do not look so good. So I think the risks have actually increased for now.
On the positive, I actually felt Singapore has evolved during the last few years. With the 2 IRs, developments around Marina Bay, more upscale shopping malls, fine dining, better transport connectivity and so on actually appeals to a lot more foreigners. They now find Singapore a very nice place to live in and to set up their second home, like sending their children here to study. So fundamentals has improved. However I think it will benefit the High-end segment the most, while mass market are still about affordability of locals. Off course the above are only my observasions and I might be wrong
I agree with your views actually.
If someone ask me, in 10 years' time will Property prices in Singapore be higher or lower? I would say almost 100% certain that it'll be higher.
The BIG Picture for Singapore looks good. Population will grow from 5 million to 6.5 million over the next 20 years. Singapore is now transforming into "haven for the Rich" and began to attract the world's Rich, such as Jim Rogers, rich celebrities such as Jet Li, Gong Li, Jackie Chan. In time to come, maybe even Oprah Winfrey, Tom Cruise etc, would be buying properties in Singapore.
I'm very positive about the New Prime Districts in Singapore, which will include the traditional district 9 (Orchard), district 10 (Tanglin, Holland) and 3 other districts, District 1 (Marina, The Sail), District 2 (Shenton way, Tanjong Pagar) and District 4 (Sentosa, Harbourfront, Reflections etc). This is why in April I bought a condo in District 2, as before this, I sold off all my investment properties in year 2007 and did not have any investment property. So I just wanted for Asset Allocation purpose, to have some money invested into Property.
If economy slows down but followed by rising Inflation, what might happen is property prices might fall a little, then go up higher due to fear of inflation.
High inflation (or Stagflation) is one possible scenario and if anyone want to be financially prepared for such a scenario, just have some money into Real Assets, which include:
1. Real Estate
2. Gold/Silver
3. other commodities
4. Oil.
5. French Fine Wine
6. Land
Nobody can predict the future. What an individual can do is to assess what are the possible scenarios and plan accordingly to be prepared financially no matter which scenario might materialise in future.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Hi Dennis,Dennis Ng wrote:Hi Stradinz,Stradlinz wrote:Yes I shared your concern about the TOPs units in 2012 and 2013. If the economy do not grow enough by then, we will have a real trouble. IMO these mass markets units breaching the $1k mark are considered high risk and the prices are at historical high. As you have mentioned earlier, the main risks are China's property crashing. From the past months, the stock market and property market in China do not look so good. So I think the risks have actually increased for now.
On the positive, I actually felt Singapore has evolved during the last few years. With the 2 IRs, developments around Marina Bay, more upscale shopping malls, fine dining, better transport connectivity and so on actually appeals to a lot more foreigners. They now find Singapore a very nice place to live in and to set up their second home, like sending their children here to study. So fundamentals has improved. However I think it will benefit the High-end segment the most, while mass market are still about affordability of locals. Off course the above are only my observasions and I might be wrong
I agree with your views actually.
If someone ask me, in 10 years' time will Property prices in Singapore be higher or lower? I would say almost 100% certain that it'll be higher.
The BIG Picture for Singapore looks good. Population will grow from 5 million to 6.5 million over the next 20 years. Singapore is now transforming into "haven for the Rich" and began to attract the world's Rich, such as Jim Rogers, rich celebrities such as Jet Li, Gong Li, Jackie Chan. In time to come, maybe even Oprah Winfrey, Tom Cruise etc, would be buying properties in Singapore.
I'm very positive about the New Prime Districts in Singapore, which will include the traditional district 9 (Orchard), district 10 (Tanglin, Holland) and 3 other districts, District 1 (Marina, The Sail), District 2 (Shenton way, Tanjong Pagar) and District 4 (Sentosa, Harbourfront, Reflections etc). This is why in April I bought a condo in District 2, as before this, I sold off all my investment properties in year 2007 and did not have any investment property. So I just wanted for Asset Allocation purpose, to have some money invested into Property.
If economy slows down but followed by rising Inflation, what might happen is property prices might fall a little, then go up higher due to fear of inflation.
High inflation (or Stagflation) is one possible scenario and if anyone want to be financially prepared for such a scenario, just have some money into Real Assets, which include:
1. Real Estate
2. Gold/Silver
3. other commodities
4. Oil.
5. French Fine Wine
6. Land
Nobody can predict the future. What an individual can do is to assess what are the possible scenarios and plan accordingly to be prepared financially no matter which scenario might materialise in future.
Could you pls kindly enlighten on how to invest in oil and agricultural commodities? Thanks!
May I pls know how
One of the speakers presented the below information during the Singapore investment exhibition yesterday. 3 main factors that will influence the price of Singapore properties:
1. Sentiments
2. Cost of construction
3. Land price
If you think all 3 factors are on the UP trend, then investing in Singapore private property is a no brainer.
1. Sentiments
2. Cost of construction
3. Land price
If you think all 3 factors are on the UP trend, then investing in Singapore private property is a no brainer.
Hi Starfire,Starfire wrote:One of the speakers presented the below information during the Singapore investment exhibition yesterday. 3 main factors that will influence the price of Singapore properties:
1. Sentiments
2. Cost of construction
3. Land price
If you think all 3 factors are on the UP trend, then investing in Singapore private property is a no brainer.
I think sentiment can turn if the Euro Crisis spreads. When sentiment turns, land price might also be flat or even drop as developers will not be chasing after Land Sale. Construction cost depends largely on cost of materials, including steel, concrete and sand, since labour costs does not fluctuate as much.
I think he missed out 4th factor and 5th factor, Economic Outlook. If economic outlook is good, people will be buying properties and prices likely to go up.
5th factor is Supply. Govt can "flood" the market by releasing more and more land and more and more HDB flats.
Who is this speaker? Anyone listened to Eric Cheng? Please share what he spoke as his topic was "Singapore Property Market Outlook and Strategies".
I was the one who invited him to speak at Asian Investment Seminar, but I didn't hear him speak as I was already late in joining my family for lunch.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.