The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 23rd November 2016

Top Story

Mature estates feature in 2016’s final BTO launch
The biggest joint build-to-order (BTO) and sale-of-balance-flats (SBF) exercise for the year was launched on Tuesday, offering more than 10,000 BTO and SBF units across 25 estates.  Most markedly, about three-fifths of the BTO supply is located in mature estates – which is rare, and which National Development Minister Lawrence Wong said shows that the government is delivering on its earlier promise to do so.  These flats on offer are spread across nine projects. Of these, three are in the non-mature town of Punggol (2,194 units); another six projects are in the mature estates of Bedok (1,655 units), Bidadari/Toa Payoh (1,018 units) and Kallang/Whampoa (243 units).  Consultants widely expect higher subscription rates for the units in the mature estates.

Singapore Economy

TPP breakdown a setback for trade thrust of Singapore’s future economy
The incoming president of the United States has said it loud and clear to the Trans-Pacific Partnership (TPP) trade deal: You shall not pass.  The setback for the TPP comes at a crucial time for Singapore, which is in the middle of drawing up a blueprint for its future economy – one in which internationalisation figures prominently, in order for its economy to grow externally.  And growing Singapore’s external pie has become increasingly crucial, given that its economy can expect a “new normal” of only 2-3 per cent annual growth, said Deputy Prime Minister Tharman Shanmugaratnam in September.  The TPP, which brings together 12 Asia-Pacific countries accounting for roughly 40 per cent of global GDP as signatories, is often hailed as a seminal trade framework that will enable exporters to benefit from the removal of duties on more types of goods than previous trade agreements provided for.

Singapore ranks 2nd in global connectedness index
Singapore has been ranked the second-most connected out of 140 countries. In East Asia and the Pacific, it is the top-ranked in the DHL Global Connectedness Index (GCI).  It missed out on the top spot in the global ranking, which went again to the Netherlands.  Europe held on to its pole position as the world’s most connected region. Eight out of the top 10 most globalised countries in the world are in Europe, the exceptions being Singapore and the United Arab Emirates.

Singapore household wealth up despite slowing economy
Total household wealth in Singapore grew 2.9 per cent this year to US$1.1 trillion (S$1.56 trillion) despite the slowing economy, a new study released yesterday has found.  The study, the Global Wealth Report by Credit Suisse Research Institute, said that this wealth is projected to rise by 3.5 per cent every year over the next five years to US$1.4 trillion in 2021.  Across the whole Asia-Pacific, total household wealth grew a stronger 4.5 per cent to US$79.96 trillion this year – the highest rate of increase among the regions.

Views, Reviews & Forum

Removal of ABSD would hurt middle-income buyers
The premise of the letter “Remove additional stamp duty for S’poreans to encourage investment here” (Nov 21) is that enterprising Singaporeans can make a business out of properties here and avoid the risks related to foreign properties.  Though this view is commendable, repealing the Additional Buyer’s Stamp Duty (ABSD) would hurt middle-income earners economically.

Priority is affordable homes, not property investment
I refer to the letter “Remove additional stamp duty for S’poreans to encourage investment here” (Nov 21).

The additional duty was implemented in 2011 as a means of controlling property prices, owing to the overheated market at the time.  Deputy Prime Minister Tharman Shanmugaratnam has further highlighted that such taxes “have been especially useful in the Asian context, where speculation in the property market is almost a habit” (“Using taxation to drive innovation, inclusive growth”; July 25).

Lower stamp duty would make property market more lively
The writer of the letter “Remove additional stamp duty for S’poreans to encourage investment here” (Nov 21) suggested that the Additional Buyer’s Stamp Duty be removed for Singaporeans who buy a second residential property. I agree.  With a bigger stake in assets here, they would promote and act in Singapore’s interests even more, to maintain or increase their property values. 

Global Economy & Global Real Estate

Home resales surge to 9 1/2-year high, point to stronger economic growth

Chinese developers flooding Johor home market

Hong Kong government: 1 million flats needed by 2046

Anbang’s pivot to Asia makes sense now

Wanda said to be in talks with firms for backdoor listing

India to lead in real estate investment in Asia

Additional Articles of Interest – Local & Overseas Real Estate

Are there still opportunities in the strata retail market?
The retail sector is still facing challenging times. However, there are some bright spots in the market. The partial completion of the Downtown Line, for example, has boosted footfall at Beauty World Centre, a strata mall located next to the Beauty World MRT station. There could also be opportunities along the upcoming Thomson-East Coast Line (TEL) given that retail properties are extremely location-sensitive.

Local & Overseas Real Estate – Full Article

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