The property market in 2014 starts with a series of bad news from the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB). How bad are the numbers? On 2nd January, HDB announced that the HDB Resale Price Index continued to drop in 4th quarter 2013. The 1.3 per cent decline was the worst since eight years ago in 2005. Coincidentally, URA released … [Read more...]
Why developers can sell at future prices
Do you ever wonder why new projects from developers are able to command a large premium in asking price, sometimes up to fifty percent higher than nearby projects built in recent years? Below is an abstract from my interview with a VIP customer (as compared to the usual retail buyers). Me : How do you manage to buy before everyone do? VIP: After developers set the prices, … [Read more...]
What Total Debt Servicing Ratio meant to kill
The Monetary Authority of Singapore (MAS) introduced the Total Debt Servicing Ratio (TDSR) framework for all property loans granted by financial institutions (FIs), with effect from 29 June 2013. In for the kill Computations of the TDSR affects properties that are residential or non-residential, individuals’ or companies', new applications or re-financed loans, and in or … [Read more...]
Why investors in S’pore and Hong Kong are cashing out of property
I seldom post articles from other sources, especially those from authors with vested interests. But I think that this one from Forbes Asia (originally from Asia Confidential) is simply too good to be missed. Following The Smart Money In Asia by James Gruber on March 30, 2013 Investors selling property assets Reasons for cashing out Where they’ll put their money What if … [Read more...]
Till ‘tax’ do us part
In Singapore, there was a recent rush for 'decoupling' – transferring ownership of properties previously under joint ownership to one of the owners. The legal transactions allow the exiting parties to be treated as first-time buyers when buying their next property, so that they don't have to pay the 7 percent additional buyer’s stamp duty, as recently introduced by the … [Read more...]