atans1

Property developers think they GLCs? Or Dr Eng Kai Er?

In Economy, Property on 05/12/2014 at 6:28 am

PAP administration must always ensure that they make good money or can screw the taxpayers  to indulge themselves (Btw, one of these days, when I really make up on the wrong side of the bed, remind me to blog on why Dr Eng’s actions show that while she may have a passion for the arts — like she had — when was interviewed for her scholarship, she had a passion for scientific research, she doesn’t have a clue about the way to craft a narrative  that pleases the audience. She must belong to the school that believes in upsetting the audience, unlike Stanley Kulbrick, John Ford or even Shakespeare who entertained while provoking them)

Sorry, for the digression. I got the impression that property developers think that they like GLCs and Dr Eng can screw the public when I read that REDAS president Chia Boon Kuah said  at the Real Estate Developers’ Association of Singapore’s (REDAS) 55th anniversary dinner at the Ritz-Carlton on 26 Nov, that the real estate industry could be heading for major trouble unless the government takes “supportive measures” to help property developers.

“[The slowdown and added pressures in the residential market] pose significant challenges to the property sector, and there could be wider impact on the economy,” he said.

Mr Chia is worried that the looming supply of 68,000 completed new residential units in the next few years is likely to cause home vacancy rates to head towards 10%. Presently, the private home vacancy rate is estimated to be at 7.1% in the 3Q of this year.

“This will add even more pressure on the residential market,” Mr Chia said.

“Developers are concerned. Genuine home buyers from the Singapore market have adopted a wait-and-see attitude. The situation poses significant challenges to the property sector, and there could be wider impact. It is in no one’s interests to witness unintended outcomes.”

“We urge the Government to stand ready, to take supportive measures to prevent a tipping point, should the market turn volatile and worsen further.”

With National Development Minister Khaw Boon Wan present at the dinner as REDAS’ guest-of-honour.Mr Chia took the opportunity to KPKB that the government’s cooling measures continue to bite and dampen property buying sentiment.

“The data and facts truly speak for themselves,” pointing out the falling transaction volume and declining prices or properties. Private home prices have declined in the last 4 consecutive quarters, while transaction volume has also dipped 50% from 18,000 last year to less than 9,000 expected this year.

Mr Chia also highlighted the importance of the property sector to the Singapore’s economy, “Real estate accounts for about half of the total fixed capital formation. One in 5 people in the workforce is employed by the real estate and construction industry.”

As usual our local media did not criticise the self-seving nature of his comments*. But let’s be thankful. Once upon a time, MediaCorp’s ace columnist (now reired. Wonder how many houses he got at big discounts?) would have come out in support of the developers.

So it was with great pleasure that I read this in Forum a few days ago.

Where was Redas when home prices were rising?

Published on Dec 1, 2014 12:47 AM

LAST Thursday’s report (“Property sector ‘needs govt support'”) reads like a case of the Real Estate Developers’ Association of Singapore (Redas) wanting to have its cake and eat it, too.

Redas president Chia Boon Kuah warned of grave consequences for the country, noting how property prices have declined amid falling sales in the last four consecutive quarters.

Did Redas make any such warning when property prices ran ahead of the growth in household incomes, and did it ask the Government to take action then?

It was only last year that we saw the second-quarter private residential property price index hitting an all-time high despite a few rounds of cooling measures.

Did Redas not realise that rising property prices caused the public to fear that homes would be beyond their reach, and that many have bought property even though they may not be able to service the housing loans?

The supply of 68,000 completed residential units over the next few years will be built by the association’s members.

More properties may have been put on the block due to mortgage defaults (“More homes go under the hammer in weak market”; Nov 21), if not for the cooling measures and the total debt servicing ratio framework.

Khong Kiong Seng

– See more at: http://www.straitstimes.com/archive/monday/premium/forum-letters/story/where-was-redas-when-home-prices-were-rising-20141201#sthash.me7zc0Ki.dpuf

Developers must long for the days when Mah was the property minister

https://atans1.wordpress.com/2011/04/30/property-prices-going-against-natural-laws/

https://atans1.wordpress.com/2009/12/15/property-prices-mm-lee-is-too-modest/

https://atans1.wordpress.com/2014/02/10/bring-back-super-mah/

*But ST said that if the restrictions were not lifted, developers will make less than usual profit margins, and some may lose money: as though making huge profits is the natural state of things, like scholars entitled to indulge their fantasies? [Update at 10 am)

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  1. No worries man. Standard practice for Redas prezzie to kpkb about too much govt actions or lack thereof. Almost always happens at their D&Ds with ministers present. Been like that for many years liao. Ministers just continue listen to their walkmans, smile, and toast their champagne.

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