Tanjong Pagar: The next new hotspot

Posted on 2 May 2013 | Comments Off on Tanjong Pagar: The next new hotspot

Tanjong Pagar is quickly becoming a popular and vibrant destination for swanky boutique hotels, creative office spaces and award-winning celebrity restaurants, according to Savills Singapore.

With many new residential projects such as Eon Shenton and Pinnacle@Duxton, the area is expected to overtake Ann Siang Hill and Club Street as a hotspot. Moreover, the nearby port is expected to relocate by 2026 and will be replaced by low-rise, sea fronting homes.

“The main attraction for Tanjong Pagar is its quaint conservation shophouses juxtaposed with modern skyscrapers. It is this meld of contrasts that draws the crowd in – a playground that serves their needs day and night, whether at work, play or even at home,” noted Sulian Tan-Wijaya, Senior Director, Lifestyle and Retail at Savills.

The firm was recently appointed to market three adjacent shophouses built in the 1920s. Located at 1A Keong Saik Road, they are near Chinatown, Harbourfront, Clarke Quay and Outram Park MRT stations, and were previously owned by AIA Singapore to house part of its Singapore-based operations till the end of last year.

Source : PropertyGury – 2 May 2013

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Tighter mortgage rules better for current property market

Posted on 2 May 2013 | Comments Off on Tighter mortgage rules better for current property market

The current low mortgage rate is one of the main contributors to the stubbornly high property prices here.

In the United States, the average mortgage rate is about 3.65 per cent despite the Federal Reserve maintaining its interest rate at near zero. Meanwhile, Hong Kong recently raised the risk weighting for new mortgages, and there has already been an impact on interest rates.

It would be good if the Monetary Authority of Singapore (MAS) could also administrate a gradual increase in mortgage rates here, to increase the holding cost of buying investment properties.

At current property prices and with rental yields expected to soften, a gradual increase in mortgage rates would have an immediate impact on property prices. By tightening mortgage rules now, the MAS would have better control over the stability of our financial institutions and our economy should there be sudden increases in interest rates in the near future.

Also, foreigners are more willing to pay the Additional Buyer’s Stamp Duty and park their money in Singapore’s real estate than buying risky investment assets elsewhere.

Just having a 10 per cent share of foreign buyers of properties here could provide a false sense of positive market sentiment towards our real estate. Developers would be quick to exploit more foreign buying to support property prices.

From PATRICK TAN CHOON HONG

Source : Today – 2 May 2013

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Posted in Loan / Mortgage / Finance

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