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Daily Archives: 21 Sep 2009

Pre-emptive measures to further cool property market

Posted on 21 Sep 2009 | Comments Off

THE measures taken by the Government to cool the residential real estate market are laudable. It is hoped that cool and level heads will prevail.

However, the interest absorption scheme (IAS) and interest-only loans are arguably offshoots of the disallowed deferred payment scheme (DPS). Buoyant trading and investment in property are also due to the current low interest rate environment, coupled with a dearth of attractive investment avenues over which we have little control.

Given the creativity and astuteness of property developers in Singapore (substituting IAS for DPS is a case in point), measures should also be adopted on a pre-emptive basis.

– Increase down payment ratio to 10 per cent

To nip the problem in the bud, there is one measure that is truly intuitive, and wholly within the Government’s control, which is to increase the cash down payment ratio to 10 per cent from the current 5 per cent of purchase price.

An increase in down payment ratio makes sense and is prudent. If a buyer wants to buy a property for $1 million but is unable to fork out $100,000 (or rather an incremental $50,000) in cash, he is not in a position to take on a leverage of $800,000. Continue reading →

Comments Off on Pre-emptive measures to further cool property market

Posted in Property Market / Real Estate

Tagged Deferred Payment Scheme, DPS, IAS, Interest Absorption Scheme, Property Investment, Singapore Property Market

New Orchard mall targets youth

Posted on 21 Sep 2009 | Comments Off

YET another mall will go up on Orchard Road next year, but it will distinguish itself by giving only 30 per cent of its space to retail, or food and beverage businesses.

The rest of the space in the five- storey building will go to a wide range of facilities aimed at nurturing youth talent and developing a vibrant community for young people.

*Scape, which will sit on a 12,000 sq m plot next to Orchard Cineleisure, will be ready in March. It will be in addition to the *Scape Youth Park across the road.

The $40 million building will position itself as an iconic youth brand and be a youth-engagement hub, said its general manager Evelyn Lau.

Its third storey, for instance, will have dance, music and recording studios for budding musicians, and its fourth, new media production suites and editing studios for those keen on generating new media content.

Those who want to put up a drama or musical performance can do so at a theatre, which can seat 600. Continue reading →