SINGAPORE : A total of 552 non-landed private residential units were resold last month, compared to 412 units in June 2014.
SINGAPORE : As Singapore faces a “new normal” of slower growth and even stagnation risks, the property market is unlikely to stage a major rebound even if some cooling measures are relaxed now, market watchers said at a property seminar on Tuesday.
Chua Hak Bin, head of emerging Asia economics at Bank of America Merrill Lynch, warned that Singapore may enter a period of stagnation over the next couple of years.
Recent alarm bells were sounded when employment growth contracted for the first time in the first quarter since the global financial crisis (GFC), loans growth contracted in May for the first time since the GFC, and Singapore’s inflation plunged to the lowest in five years, he said.
Some studies in the US have shown that macro-prudential measures such as housing loan-to-value ratios and stamp duties are more effective as tightening tools, but loosening these measures has less impact akin to “pushing on a string” in a downturn, Dr Chua said at the Real Estate Developers’ Association of Singapore (Redas) property market seminar.
Redas president Augustine Tan flagged that any recovery in the property market will not be brisk. “We have to brace ourselves for a different mode of operation as the real estate market enters a different period,” he told market practitioners at the seminar. “The build-up of the oversupply situation in the private residential market will not abate in the short term and recovery will not be a quick one.” Read more >>
A coffee shop in Bukit Batok Street 11 has reportedly been sold for $31 million – a record price for a Housing Board coffee shop.ST PHOTO: ALPHONSUS CHERN
SINGAPORE : The recent record price of $31 million for the sale of a coffee shop in Bukit Batok and the $23.8 million transaction in 2013 for a coffee shop in Hougang are outliers, and their sellers are not speculators, Minister for National Development Khaw Boon Wan told Parliament today.
He was replying to a question from Workers’ Party Non-Constituency MP Gerald Giam on whether the Government was concerned about the high transaction prices, and what measures it was taking to mitigate their impact on rentals and cooked food prices.
The sale of Yong Xing Coffee Shop at Bukit Batok Street 11 made headlines last month. Its seller had bought the 4,521 sq ft coffee shop for $3.4 million nearly 20 years ago. Read more >>
AUSTRALIA : Asian investors are moving beyond property and natural resources in Australia and looking at companies in the service, technology, agriculture and manpower sectors.
Other than attractive prices due to a depreciating Australian dollar, funds are cheaper to borrow due to lower interest rates. The proprietary technology available in Australian companies is also a reason for the increased interest.
Australian companies tend to attract Asian investors, who look at the potential of a business in the context of a much bigger Asian market, noted Mr Balaji Swaminathan, head of Australian bank Westpac’s international headquarters.
Infrastructure assets are also immensely popular with Asian investors, he added. “In the last 12 months, we have financed 11 out of the 12 infrastructure deals in Australia,” he disclosed. Read more >>