Blog Posts by Mr Propwise

  • Singapore property market outlook for 2012 and 2013

    By Mr Propwise | Property Blog – Tue, Mar 6, 2012

    In 2011, buyers from China were the biggest group of foreign property buyers in Singapore. (Yahoo! file photo)

    By Dennis Ng

    In 2011, buyers from China were the biggest group of foreign property buyers in Singapore. But if you are counting on foreigners to continue buying properties in Singapore in 2012 and 2013, I am afraid to say that you may be disappointed.

    The following factors are worthy of our consideration when studying the prospects of the property market in the next two years.

    Factors that determine Singapore's property market

    Since interest rates are at a historical low now, it can only go up from here, and not down. In fact, interest rates on home loans can shoot up to 3 per cent to 4 per cent. In my opinion, this could probably take place in 2013 when U.S. interest rates start to climb due to the threat of rising inflation.

    In the next two years, more than 30,000 condominium units will be completed. With a huge supply of new condominiums, do you think rental rates would go up or down? So when rental rates indeed go down and interest rates go up, would this make property investments

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  • Safe havens in Singapore property

    By Mr Propwise | Property Blog – Wed, Sep 21, 2011

    Singapore property prices have been holding up well despite weakness in the global economy. (AFP photo)Singapore property prices have been holding up well despite weakness in the global economy. (AFP photo)

    By Ku Swee Yong

    In the first half of August, a few days after Standard & Poor's downgraded U.S. debt and caused a 600-point drop in the U.S. stock market, a related entity, S&P Equity Research, published their stock recommendations which consisted of big names such as General Electric, PepsiCo, McDonalds, Abbott Laboratories.

    This list of high-quality companies were selected based on S&P Equity's opinion that investors should stick to traditional matrices such as dividends, consistent profits, strong cash flow, minimal debt, large cash reserves. Given the seesawing equities markets, they recommended that investors go back to basics and examine fundamentals.

    The thin ray of positive light coming from the U.S. is for interest rates to remain low over the next two years, hopefully on the back of a U.S. recovery. Let's not forget that troubles in Europe and Japan may delay the U.S. recovery by some more.

    Are there safe havens in Singapore property?

    Citibank analysts Wendy Koh and Tan Chun

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  • Will the COV go up or down after new HDB rules?

    By Mr Propwise | Property Blog – Wed, Sep 7, 2011

    It is hard to tell whether cash-over-valuation for HDB flats will rise or fall. (Yahoo! photo)It is hard to tell whether cash-over-valuation for HDB flats will rise or fall. (Yahoo! photo)

    Our article last week on What the raised income ceiling means for the property market by Dennis Ng resulted in quite a few comments from our readers. Our readers correctly pointed out that there was no raising of income ceiling for the purchase of resale flats, but only to qualify for the CPF grant when buying resale flats.

    To be clear, the HDB regulations announced on 15 August stipulate that:

    1. The monthly income ceiling for households will be raised from $8,000 to $10,000 for:

    a. Purchasing a new flat from HDB

    b. Purchasing resale flats with the CPF Housing Grant

    c. Getting a HDB loan for the purchase of a new or resale flat

    2. Raising the monthly income ceiling to purchase new Executive Condominiums (ECs) from $10,000 to $12,000.

    There was no change to the DBSS income ceiling of $10,000.

    So will the COV go up or down?

    Our reader C.H. commented, "It is interesting that Dennis is predicting an increase in the COVs for HDB resale flats despite the increased income ceiling for HDB

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  • How to invest in property for your retirement

    By Mr Propwise | Property Blog – Fri, Aug 12, 2011
    How to consider property as an investment for retirement. (Getty Images)How to consider property as an investment for retirement. (Getty Images)

    By Ku Swee Yong

    Can the average Singaporean enjoy a comfortable retirement by investing in property? We recently caught up with Ku Swee Yong, CEO and Director of International Property Advisor Pte Ltd, a real estate family office, to find out his views on the Singapore property market and how to do just that. He has just published his first book, Real Estate Riches — Understanding Singapore's property market in a volatile economy.

    What is your outlook on the Singapore property market for the next 12 months?

    I am mildly positive, especially for the mid-tier residential and luxury residential segments. I am seeing more activities and enquiries in the segment of $2 to $5 million with prices in the $1,500 to $2,500 psf range.

    Two macro factors have also caused me to turn positive:

    1. The unemployment rate remains very low, currently at 1.9%. As Foreign Direct Investment continues to be brought in by EDB, the MNCs will need to hire. More Employment Pass holders will be needed, and this

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