THE Government has announced what it called two ‘calibrated’ measures to cool the exuberance in the private residential market and prevent a property bubble from forming.

From Saturday, it will introduce a seller’s stamp duty on all residential properties and lands that are bought after today and sold within one year from the date of purchase, and lower the housing limit to 80 per cent of the total purchase price.

These new steps came less than six months after the Government introduced a set of measures to temper the exuberance in the private residential market last September.

‘While the September 2009 measures helped to cool the property market, there are recent signs that it is starting to heat up again,’ said a joint statement from the Ministry of National Development, Finance Ministry and the Monetary of Singapore.

Demand for private housing units spiked sharply in January, with the the number of units sold by developers tripling that in December, and making it the highest monthly total since last September. Prices have also risen sharply in the second half of 2009, at a faster rate compared to previous rebounds from the troughs of property cycles.

There was no let up in the January price increases. Mortgage lending also soared by around 12 per cent year-on-year through 2009, said the statement.

‘While the current level of speculative activity in the market is still lower than what it was at the height of the property market boom, and overall price levels are below the previous peak, there is a risk that the market could overheat in the next few months, fuelled by low global interest rates and positive sentiments associated with the economic recovery.

‘Any excessive exuberance will make the property market vulnerable to the continuing risks in the global economy. Should growth turn out weaker than expected, property buyers and speculators could face capital losses as the market corrects. Conversely, if the recovery stays on course, interest rates will eventually rise and drive up financing costs with severe implications for those who have overextended themselves.

‘Therefore, the Government has decided to introduce calibrated measures now to temper sentiments and pre-empt a property bubble from forming.

‘We will tighten the supply of credit to the housing market to encourage greater financial prudence among property purchasers. The Government prefers to take small steps early, rather than be forced to impose more drastic measures after a bubble has formed.’

Source : Straits Times – 19 Feb 2010

THE Government has served notice that it will introduce additional measures, if necessary, to promote a stable and sustainable property market.

On Friday, it announced two measures – a seller’s stamp duty and a lower housing loan limit – to help temper sentiment in the simmering residential property market, which it said is showing signs of starting to heat up again.

To pre-empt a property bubble from forming, the government said it is tightening the supply of credit to the housing market ‘to encourage greater financial prudence’ among property buyers.

‘The Government prefers to take small steps early, rather than be forced to impose more drastic measures after a bubble has formed,’ said a joint statement from the ministries of National Develop and Finance, and Monetary Authority of Singapore.

‘The Government will continue to monitor the property market closely and will introduce measures if required later, to promote a stable and sustainable property market,’ added the statement.

At the same time, it will also continue to ensure that there is adequate housing supply to meet demand.

Already, it has made available sites under the Government Land Sales (GLS) programme that can yield 10,550 private housing units in the first half of this year. This is the highest supply level in the history of the GLS scheme.

Source : Straits Times – 19 Feb 2010

SINGAPORE’S economy, which contracted 2 per cent last year, is expected to grow at 4.5 to 6.5 per cent this year, adding to evidence of a sustained regional recovery.

The Ministry of Trade and Industry gave the revised GDP growth forecast in a statement on Friday morning. The earlier prediction was for the economy to grow 3 to 5 per cent in 2010.

The economy expanded by 4 per cent in the fourth quarter of 2009, from a year ago, after growing by 0.6 per cent in the previous quarter. On a seasonally adjusted quarterly annualised basis, Singapore’s GDP contracted by 2.8 per cent in the fourth quarter, said MTI.

The services sector grew by 6.6 per cent in the fourth quarter, compared to 8.2 per cent growth in the third quarter. The trade- and tourism-related sectors posted the strongest gains compared to the previous quarter. The financial sector, however, contracted from the previous quarter, in part due to declines in the fund management and stockbroking segments.

The manufacturing sector contracted by 29 per cent in Q4, reversing from the 25.6 per cent expansion in the third quarter. This decline was mainly due to a contraction in the output of the biomedical manufacturing and transport engineering clusters. Growth in the electronics and chemicals clusters strengthened on the back of continued recovery in global trade.

On the outlook for 2010, MTI said Asia is expected to experience a strong recovery this year. But the recovery in the G3 economies, is expected to be weaker, largely supported by fiscal stimulus measures and inventory accumulation in the first half of the year.

‘The outlook for the second half of the year remains uncertain. Private final demand in the G3 may remain weak, as there are still few indications that non-policy induced private demand is gaining strength,’ it noted.

‘The Ministry of Trade and Industry expects the Singapore economy to grow by 4.5 to 6.5 per cent in 2010. This upgrade from the earlier 3 to 5 per cent forecast largely reflects increased strength in the near term growth momentum.’

Source : Straits Times – 19 Feb 2010

With the opening of Genting Singapore’s Resorts World at Sentosa integrated resort, there has been a flurry of transactions at Caribbean at Keppel Bay and also the upmarket condominium projects in Sentosa Cove. In the week of Jan 15 to 22 alone, there was a total of nine new sales and resales.

The condominium that saw the most resale activity was the 969-unit Caribbean at Keppel Bay developed by Keppel Land and completed in 2004. In that period, there were five transactions at Caribbean ranging from $1,363 to $1,479 psf.

The most recent transaction was an eighth floor, 893 sq ft unit in one of the 10-storey blocks; it changed hands for $1.28 million, or $1,433 psf. The previous owner had purchased it from the developer in 2004 for $707,085, or $791 psf, enjoying an 81% capital appreciation in the last five years.

The highest price achieved in terms of price psf was for a 1,356 sq ft seventh floor unit sold for just over $2 million, or $1,479 psf. In that same tower, a third-floor unit was sold for $1.702 million, or $1,363 psf. Two other units at Caribbean changed hands, with caveats lodged on Jan 15: One was a 1,668 sq ft fifth-floor apartment sold for $2.43 million, or $1,460 psf; the other was a 1,335 sq ft apartment on the third level of another block that went for $1.9 million, or $1,426 psf.

Over at The Berth by The Cove, considered the first condominium development to be launched at Sentosa Cove by developer Ho Bee Group, the most recent transaction, according to URA Realis, was for a 1,647 sq ft apartment on the first level of one of the low-rise blocks that changed hands at $2.45 million, or $1,490 psf.

This is the third time the apartment has changed hands in the secondary market. The original owner had purchased the property in November 2004, when it was first launched, for more than $1.39 million, or $846 psf. It was subsequently sold in a sub-sale two years later for $1.647 million, or $1,000 psf, according to an October 2006 caveat. Thus, the first owner enjoyed a price appreciation of 18.2% in about two years. Barely a month later, the property was flipped for $1.9 million, or $1,154 psf, according to a November 2006 caveat. This owner enjoyed the greatest capital gain of 29% in more than three years when he sold the property most recently for $2.45 million.

The Berth at the Cove was completed in 2006, and Ho Bee’s upmarket 249-unit The Coast was completed just last year. The most recent transaction at The Coast was for a 2,024 sq ft sixth-level apartment sold for $4.768 million, or $2,357 sq ft, according to a Jan 15 caveat with URA Realis. The previous owner had purchased the property for $3.416 million or $1,688 psf, when it was launched in late 2006. Thus, he saw a 39.6% capital appreciation in just over three years.

The most exclusive condominium project that has set a new price benchmark at Sentosa Cove and that has gotten tongues wagging is SC Global Developments’ Seven Palms. Last October, the developer announced that it had sold six of 10 units released, and according to caveats lodged with URA Realis, the units ranged in price from $8.35 million for a 2,702 sq ft apartment to $13.9 million for a 4,273 sq ft apartment. Average prices ranged from $3,091 to $3,353 psf. Most recently, another unit was sold, according to a Jan 15 caveat. It was for a 2,723 sq ft apartment that went for $9.088 million, or $$3,337 psf. Unlike the other condominiums that are of a 99-year lease tenure, SC Global’s Seven Palms has a 103-year lease.

Meanwhile, at the luxury 124-unit condominium project, The Marina Collection, developed by a consortium-led by Lippo Group, a unit was also sold during that period. It was a 4,693 sq ft, five-bedroom penthouse that went for more than $10.3 million, or $2,200 psf. Construction of the project is underway and scheduled for completion late this year or early 2011. Another similar-sized penthouse was sold in early 2008 for $12.67 million, or $2,700 psf. The developer released 60 units for sale in the first phase in late 2007 for $2,700 to $2,900 psf.

With the opening of Resorts World at Sentosa, there is even greater interest in luxury residential projects in Sentosa Cove and the Harbourfront area. Upcoming previews of new projects at Sentosa Cove after Chinese New Year include Ho Bee and IOI Properties’ 150-unit luxury Seascape as well as the second phase of The Marina Collection.

Source : The Edge – 15 Feb 2010