"Property sector 'needs Govt support - The Straits Times Nov 29, 2014
The real estate sector could be heading for major trouble unless the Government takes "supportive measures" to help set it right.
The stark warning came last night from the leading industry body, Real Estate Developers' Association of Singapore (Redas), which pointed to falling sales and declining prices.
Its president, Mr Chia Boon Kuah, said at the organisation's 55th anniversary dinner: "(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.
"It is in no one's interest 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."
He declined to elaborate when asked later about what measures could be taken.
Mr Chia had earlier also pointed to the industry's importance to the economy. "Real estate accounts for about half of the total fixed capital formation. One in five people in the workforce is employed by the real estate and construction industry."
He also signalled appreciation for the Government's moderation of land sales this year. Redas had raised concerns at last year's dinner about the substantial amount of residential sites heading for the market.
Mr Chong Chou Yuen, chief financial officer of Tuan Sing Holdings, noted that while the Government has said property prices have not yet seen a "meaningful correction", developers hope it will cut back on cooling measures soon before the situation turns too dire.
"The Government should also allow the high-end market to be more active - it is Singapore's loss in foreign exchange if we can't attract foreigners to buy such properties here, and wealthier Singaporeans end up going overseas to invest," he added."
Well, well, well. The 'begging' finally begin by some of the riches people in Singapore in the Real Estate business!
Lessons for me are:
1. real estate developers need to ask themselves: 'How much profit is reasonable?' When the properties prices were skyrocketing upwards, DID anyone of them CAUTIONED Singaporeans NOT to buy or did they say: Buy now before it goes higher? The answer is pretty clear. So, STOP being a sissy! Take the blow on your chin, REDAS, if you are a true free market capitalistic animal! When goes up will come down and round and round. Got it?;
2. for the President of REDAS to 'thinly threaten' the Government that 1 in 5 are employed in the real estate and related industries, and I don't fault him as that is why he is the President of REDAS, to protect their RICH members' interests, is TOO MUCH!!
How many of these 1 in 5 are foreign workers who are paid dirt cheap wages and put in 50-pax a room living quarter UNFIT for the many RICH members of REDAS, but deem 'luxurious' for the FWs?
How the developers will behave depend very much on the question raised in point 1 above - 'how much profit is reasonable?' MUST the top few RICHEST men and women, if any, be a developer? Is this just and fair? Sustainable?
3. The CFO of Tuan Sing's comments, again, is laudable as he is speaking for his and his company's interests. Though on careful and closer examination, it DOES NOT make any senses about the alarm he raised: 'that Singapore will lose valuable foreign exchange is the foreign buyers are not buying the luxurious properties here; and Singaporeans buyers buying overseas!'
For a nation to depend on foreigners buying their properties, and land (thankfully our Government is STILL steadfastly refused to sell landed properties to foreigners), for foreign exchange, it cannot be a nation for the locally born and bred people. This is so when the local folks are NOT 'rich enough to buy these luxurious high-end properties save a minority! And this 'minority' WOULD have not bothered about buying OVERSEAS properties if they don't find them attractive in their OWN calculation and preferences.
Hence, the worry that Singapore will have an outflow of money from rich Singaporeans buying overseas properties due to Singapore high-end properties not being attractive!
Interesting that he and his REDAS friends did not raise the FEAR that when 'ordinary Singaporeans' have to go overseas to buy a resident home, not an investment property, because the 'home' prices in Singapore are WAY BEYOND THEM! Or that they have to WORK till 65 or 75 years old JUST to pay off the mortgages.
It is worthy to note that the REDAS event was held in Ritz Carlton, not an ordinary hotel that ordinary Singaporeans who are 'slaving' to pay off their 'private properties' CANNOT afford to patronise.
Perhaps, RICH beggars SHOULD NOT be allowed to threaten the nation and asked for 'helps'? LOL!!
The stark warning came last night from the leading industry body, Real Estate Developers' Association of Singapore (Redas), which pointed to falling sales and declining prices.
Its president, Mr Chia Boon Kuah, said at the organisation's 55th anniversary dinner: "(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.
"It is in no one's interest 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."
He declined to elaborate when asked later about what measures could be taken.
Mr Chia had earlier also pointed to the industry's importance to the economy. "Real estate accounts for about half of the total fixed capital formation. One in five people in the workforce is employed by the real estate and construction industry."
He also signalled appreciation for the Government's moderation of land sales this year. Redas had raised concerns at last year's dinner about the substantial amount of residential sites heading for the market.
Mr Chong Chou Yuen, chief financial officer of Tuan Sing Holdings, noted that while the Government has said property prices have not yet seen a "meaningful correction", developers hope it will cut back on cooling measures soon before the situation turns too dire.
"The Government should also allow the high-end market to be more active - it is Singapore's loss in foreign exchange if we can't attract foreigners to buy such properties here, and wealthier Singaporeans end up going overseas to invest," he added."
Well, well, well. The 'begging' finally begin by some of the riches people in Singapore in the Real Estate business!
Lessons for me are:
1. real estate developers need to ask themselves: 'How much profit is reasonable?' When the properties prices were skyrocketing upwards, DID anyone of them CAUTIONED Singaporeans NOT to buy or did they say: Buy now before it goes higher? The answer is pretty clear. So, STOP being a sissy! Take the blow on your chin, REDAS, if you are a true free market capitalistic animal! When goes up will come down and round and round. Got it?;
2. for the President of REDAS to 'thinly threaten' the Government that 1 in 5 are employed in the real estate and related industries, and I don't fault him as that is why he is the President of REDAS, to protect their RICH members' interests, is TOO MUCH!!
How many of these 1 in 5 are foreign workers who are paid dirt cheap wages and put in 50-pax a room living quarter UNFIT for the many RICH members of REDAS, but deem 'luxurious' for the FWs?
How the developers will behave depend very much on the question raised in point 1 above - 'how much profit is reasonable?' MUST the top few RICHEST men and women, if any, be a developer? Is this just and fair? Sustainable?
3. The CFO of Tuan Sing's comments, again, is laudable as he is speaking for his and his company's interests. Though on careful and closer examination, it DOES NOT make any senses about the alarm he raised: 'that Singapore will lose valuable foreign exchange is the foreign buyers are not buying the luxurious properties here; and Singaporeans buyers buying overseas!'
For a nation to depend on foreigners buying their properties, and land (thankfully our Government is STILL steadfastly refused to sell landed properties to foreigners), for foreign exchange, it cannot be a nation for the locally born and bred people. This is so when the local folks are NOT 'rich enough to buy these luxurious high-end properties save a minority! And this 'minority' WOULD have not bothered about buying OVERSEAS properties if they don't find them attractive in their OWN calculation and preferences.
Hence, the worry that Singapore will have an outflow of money from rich Singaporeans buying overseas properties due to Singapore high-end properties not being attractive!
Interesting that he and his REDAS friends did not raise the FEAR that when 'ordinary Singaporeans' have to go overseas to buy a resident home, not an investment property, because the 'home' prices in Singapore are WAY BEYOND THEM! Or that they have to WORK till 65 or 75 years old JUST to pay off the mortgages.
It is worthy to note that the REDAS event was held in Ritz Carlton, not an ordinary hotel that ordinary Singaporeans who are 'slaving' to pay off their 'private properties' CANNOT afford to patronise.
Perhaps, RICH beggars SHOULD NOT be allowed to threaten the nation and asked for 'helps'? LOL!!
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