Sunday, April 12, 2009

Singapore Property 1Q 2009


This is a review of an article by Phillip Securities Research plus some of my inputs. ( The number facts are from the article) Found out a few things:


1. Price of non-landed private residential properties decreased by (from URA)
  • 15.2% - core central region
  • 17.2% - rest of core central region
  • 7.55 - outside central region
Reason of the highest decrease in the core central region is because these prices has been high, and are expected to decline further than the 'outside central region', hence due to the lack of demand, the price drop.
The other reason is the HDB up graders find the outside central region more affordable and hence are the people creating the demand.

2. Revaluation losses
  • Expect property companies ( eg. SPH how hold some properties, wheel lock, REITs etc.) to write down assets by 20-30% in 2009) This is because in 4Q 2008, the write downs less than 10%, as property markets have not dipped much.
3. Interest Absorption Scheme (IAS)
  • After the Singapore government scarpped the Deferred Payment scheme to curb property speculation ( the scheme that allows buyers to start paying for their house only after it obtain the Temporary Occupation Permit (TOP), developers have comed up with some similar, called the IAS. Under this system, the buyer pays a 20% downpayment when they book,and will not need to make progressive payments untill the house has obatains the TOP. However, there have to pay a premium of about 3% for this IAS

So in general, the property market is expected to decline!

3 comments:

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Anonymous said...

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you need finance for the expansion of you business? Or do you need a
personal loan? My loan ranges from personal to business loan. My
interest rate is very affordable and our loan process is very fast as well.
I am very willing to make all your financial troubles a thing of the
past.If you
are really ready to get your financial problems solved,Then search no
further and apply for a loan today.If you are interested fill the DATA
FORM so that i can give you my terms and conditions.

BORROWERS DATA FORM
1)YOUR NAME.........................................
2)YOUR COUNTRY...................................
3)YOUR OCCUPATION.............................
4)YOUR MARITAL STATUS......................
5)PHONE NUMBER..................................
6)MONTHLY INCOME..............................
7)ADDRESS......................................... ..
PURPOSE......................................... ...
9)LOAN REQUEST...................................
10)TELEPHONE...................................... ..
11)LOAN DURATION.................................

My email address is stated below: I look forward to doing business with
you.
================================================== =
Thanks
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