Tag Archives: Private Property Index

Is another round of cooling measure on the way?

Posted on 24 May 2012 | Comments Off on Is another round of cooling measure on the way?

Much has been discussed in the Singapore media about National Development Minister Khaw Boon Wan’s remarks on shoe-box apartments and how he will not hesitate to intervene should there be clear evidence of unsustainable investor demand.

Singapore’s Private Property Index (PPI) finally eased 0.1 per cent in the first quarter, after five rounds of cooling measures to ensure property prices remain sustainable.

Shoe-box apartments, however, could possibly derail that plan.

Shoe-box apartments refer to residential units that are around 50 sq m in size that can hardly accommodate a family.

According to data from Savills, shoe-box apartments that are located in central areas are fetching the best rental yield in the first quarter – S$6.21 (US$5.00) per sq ft per month.

Therefore, buyers of such apartments are likely looking to rent them out due to the attractive rental returns.

A problem, however, could occur when such apartments are sprouting out in the suburbs.

As the suburbs is primarily home to Singaporeans, such apartments may lead to speculative buying without the intention of ever living in them.

This could push up property prices yet again.

So from the looks of it, another round of cooling measure could be on the way.

By: Khalil Adis, Singapore Editor, Property Report South East Asia

Source: PropertyReport – 2012 May 24

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Posted in Cooling Measures, Property Market / Real Estate

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Singapore’s delicate balancing act

Posted on 21 May 2012 | Comments Off on Singapore’s delicate balancing act

Recently, I was invited to give a property talk at the Ministry for National Development on what the future holds for Singapore’s property market in 2012. Needless to say, I was a bit nervous on how the ministry would perceive my feedback and market outlook as the government body is responsible for formulating and implementing policies that affect the real estate sector.

Singapore is facing a conundrum – it is a favoured investment destination among high net worth individuals which has in turn pushed up property prices. Wages for Singaporeans, however, have not gone up in tandem, which has priced out some locals from getting their first leg in real estate.

It has indeed been a challenging year for the government as high property prices caused a drop in vote margin during the general election last year. Post-GE, we are now seeing a trend in an oversupply in both the private and public markets, as well as Government Land Sales (GLS) programme to ensure property prices remain sustainable.

Coupled with the various policies implemented, the concerted effort by the government has finally began to show result – the Urban Redevelopment Authority’s (URA) Private Property Index (PPI) has finally eased 0.1 per cent in the first quarter of 2012. This is expected to fall even more due to the Eurozone crisis, making it an excellent opportunity for investors to start property hunting, especially for prime properties as they will be the first to decline.

In the words of Warren Buffet, “Be fearful when others are greedy. Be greedy when others are fearful.”

Source: PropertyReport – 21 May 2012

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Posted in General, Government, Property Market / Real Estate

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