Category Archives: General

Singapore 6th most expensive city in Asia

Posted on 11 Jun 2011 | Comments Off on Singapore 6th most expensive city in Asia

According to the latest cost of living survey from ECA International, Singapore is now the 6th most expensive city in Asia for expatriates to live in, up from its previous ranking of 9th spot. Singapore also rose to the 36th spot from 68th in the global ranking in one year.

The company, which provides solutions for firms sending their staff overseas, said the continued strength of the Singapore dollar against major currencies had pushed the republic up the global ranking.

ECA International also said prices of goods and services commonly purchased by international assignees have risen at much faster rates in Singapore than in other developed locations in the region.

It said such goods and services now cost almost 3% more in Singapore than in Hong Kong while just a year ago, the same would have cost 5% more in Hong Kong.

ECA International pointed out that Singapore is now more expensive for international assignees than Hong Kong, New York, Amsterdam, Frankfurt and Shanghai.

Meanwhile, Tokyo remains the most expensive city for international assignees.

Globally, Tokyo heads the top 10 list followed by Oslo, Nagoya, Stavanger in Norway, Yokohoma, Zurich, Angola’s capital Luanda, Geneva, Kobe and the Swiss capital of Bern.

The region’s top 10 most expensive cities are:
1) Tokyo
2) Nagoya
3) Yokohama
4) Kobe
5) Seoul
6) Singapore
7) Hong Kong
8) Beijing
9) Shanghai
10) Busan

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Property prices worry National Development Minister

Posted on 9 Jun 2011 | Comments Off on Property prices worry National Development Minister

National Development Minister Khaw Boon Wan on Thursday sounded the alert on the spike in property prices in his latest blog posting.

He said things can go very wrong suddenly and gave three reasons.

Firstly, 35,000 private homes have already been sold – though still in construction – with payments in various stages of completion.

And there are 45,000 units in the pipeline, waiting to be built and sold.

Secondly, URA on Thursday announced its Government Land Sale Programme for the second half of the year which will inject another 8,000 private residential units into the market.

Together with committed investments, some 53,000 units will be looking for buyers over the next few years.

Lastly, Mr Khaw said the external situation is not exactly bullish.

The European sovereign debt crisis will take a long time to clear.

The Middle East crisis can still go ugly.

If that leads to a spike in oil prices and halts the fragile global economic recovery, the impact on Asia and Singapore will be direct and immediate.

Moreover, foreign buyers of these properties have been strong.

In the recent quarter, they made up 16 per cent of all buyers of these private properties.

Many Singaporeans also buy properties with the intention to rent them to foreigners who come here to live or work.

In the event of any external shock, both foreign demand and rental demand can fall quite quickly.

Mr Khaw said the impact can be serious if the drop in demand happens at a time when there is a substantial increase in supply.

Further, low interest rates will not remain so forever. Cost of borrowing and repayment must go up and households must factor this in.

Mr Khaw said he’s not the only one worried.

He cited a property analyst who recently said some property investors seem either “blissfully ignorant” of the massive supply that will hit the market from 2013.

Mr Khaw said market correction or any crash is not a given.

If all goes well, the economy will continue to grow and those who bought properties here will enjoy good returns when their units are completed in the next few years.

But no one is immune to mishaps.

With so much uncertainties, the Minister advises investors and upgraders to bear these considerations in mind when they go to show rooms and contemplate if they should sign up.

Source : CNA – 9 Jun 2011

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