Expats’ living costs rising faster in Hong Kong than Singapore

Expats’ living costs rising faster in Hong Kong than Singapore

WHILE living costs for expatriates in Singapore are rising, they are going up even faster in regional rival Hong Kong.
It is now 15 per cent more expensive to live in Hong Kong than in Singapore, according to the latest Cost of Living Survey released by human resource data firm ECA International.

This is a bigger difference than last year, when the cost of living in Hong Kong was 12 per cent higher than here.

Globally, Singapore has shot up 35 spots from last year’s survey to rank as the 95th most expensive city to live in this year. Hong Kong is at 33.

In Asia, Singapore is at No.12 while Hong Kong is ranked sixth.

The new figures show Beijing to be 15 per cent more expensive to live in than Singapore. The Chinese capital ranks as the fifth most expensive Asian city, and No. 31 overall.

ECA carries out its survey twice a year to help multinational companies calculate remuneration packages and living costs for expatriates.

The study compares a basket of 125 consumer goods and services commonly bought by expats in over 370 locations and measures these items against inflation, availability of goods and exchange rates.

That is why the Angolan capital Luanda is the most expensive location for foreigners for the second year running, as certain items typically purchased by expats are not readily available there.

ECA said the wild currency fluctuations caused by tumultuous global economic events this year contributed significantly to how a country ranked.

The strengthening of the yen meant Tokyo has reclaimed its position as Asia’s most expensive city. It was second after Seoul last year.

It also meant that three other Japanese cities - Yokohama, Nagoya and Kobe - joined the ranks of the top 10 most expensive cities globally.

Meanwhile, Korean locations have seen the largest relative fall in cost of living due to the depreciation of the won, which fell more than 48 per cent against the US dollar between September last year and last month, said ECA.

Mr Lee Quane, general manager of ECA Asia, said research shows most companies pay expats in their home currency while they are on assignment, which could mean lower purchasing power in unfavourable exchange rate environments.

‘Companies which split pay between the employee’s home and host countries will be much better equipped to ride out the currency volatility,’ he added.

MICHELLE TAY

Source : Straits Times - 05 Dec 2008

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Singapore Government offers fewer land sales sites

Singapore Government offers fewer land sales sites

The move will help ease fears of a supply glut next year

By Joyce Teo, Property Correspondent

NO NEW sites have been added to the Government’s land sales programme for the first half of next year, an anticipated move designed to tame fears of a supply glut in an already weak market.

Only sites on the reserve list will be up for sale, and almost all of these are carried over from this year. The amount of commercial space will also be reduced.

‘The global economic outlook is likely to remain weak in 2009 and this would have an impact on Singapore’s economy, including the property market,’ said the Ministry of National Development, which releases the sales programme in June and December every year.

Knight Frank’s director of research and consultancy, Mr Nicholas Mak, said the programme announced yesterday reflects government efforts to give the market a chance to adjust to a new supply and demand equilibrium and to lessen the pressure of a glut.

Much of the announcement was flagged in a special statement made on Oct 31, when the Government said it will suspend outright land sales in the first half of next year, leaving only reserve list sites for sale.

It went further yesterday by limiting office space and ruling that no new plots of land will be made available as response to recent tenders was poor, said Mr Mak.

Also, no new supply of private residential units from other government agencies will be made available. It placed about 20 such units on the market in the second half of this year.

Developers prefer reserve list sites as the land goes up for tender only if a minimum bid acceptable to the Government is submitted.

There will be 38 such sites on offer next year, with 37 carried over from the reserve list for the second half of this year. The remaining one is the unsold executive condominium site in Punggol.

That site was from the confirmed list, which meant that it was for outright sale, but there was no demand when it went to market last month.

There are 18 residential sites, 10 for hotels, six commercial plots, three white sites and a commercial/residential site.

The property market has been hit by weak buying interest and a credit crunch. Private home sales are at a standstill as buyers await more price falls.

Developers have also been withholding launches, adding to the stockpile of potential houses, said Mr Mak, who expects ‘very few’ residential sites to attract buying interest next year.

However, Credo Real Estate managing director Karamjit Singh said supply is not much of a problem as there are still buyers around.

‘The problem is buyers’ lack of confidence. If the current low sales volume carries into the next year, there is the fear of a deep plunge in prices. The Government should do something soon to stimulate demand,’ said Mr Singh.

The Government statement yesterday said that its reserve list system provides ‘greater flexibility to the market’ to adjust to the economic conditions.

As housing prices are expected to fall further next year, developers may be able to pick up the better-located sites - in Bishan Street 14 and Dakota Crescent - at attractive prices, said CBRE Research executive director Li Hiaw Ho.

‘It is likely that most residential activity will be focused on the lower end of the market where prices will be more affordable,’ he said, adding that likely launches in the first half of next year include leasehold condos in Boon Lay Way, Elias Road, Simei Street 4 and West Coast Crescent.

The supply of commercial space for the first half of next year has been cut from 143,000 sq m to 40,000 sq m. Transitional office sites have been reduced.

The new land sales programme also offers slightly fewer hotel rooms.

Source : Straits Times - 05 Dec 2008

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Electricity prices to be cut by 25%

Electricity prices to be cut by 25%

They look set to fall further in the second quarter of next year

By Liaw Wy-Cin

ELECTRICITY prices for the next three months will fall 25 per cent next month, as oil prices continue to slide.
Three-room Housing Board households will see their average monthly power bills fall by about $20, while five-roomers will pay about $34 less.

News of the cut, the first decline since April last year in the quarterly-adjusted tariffs, was a welcome respite for businesses grappling with the economic downturn and rising costs.

They took a hit when the tariffs for the last quarter of the year went up by 21 per cent - the biggest one-time hike in about seven years.

With the latest cut, electricity tariffs will go down from about 30 cents per kilowatt-hour to just under 23 cents.

Yesterday, the Energy Market Authority’s (EMA) chief executive-designate Lawrence Wong had more good news - he expects electricity prices to fall again for the second quarter of next year.

‘Oil prices are coming down some more, and if this continues, electricity prices will continue to decline.’

Following sharp public criticism over how electricity prices went up in October even as oil prices fell, EMA has started a review of the pricing formula.

Fuel oil prices account for 50 to 60 per cent of the tariff. The cost of power generation, delivery and other fees make up the rest. Under the current formula, electricity tariffs are pegged to fuel oil prices which are reviewed every three months.

Because of the time lag, tariffs can still climb when oil prices are coming down, which is what happened this quarter.

Said Mr Wong: ‘We will have to see if we want to adopt a formula that is more reflective of the prevailing energy market.’

But this may mean more frequent ups and downs in electricity prices every month and this volatility may deter investment in Singapore’s power system, he said.

For now, it also does not look like any change in the pricing system is likely to see electricity tariffs pegged to the price of natural gas, even though 80 per cent of Singapore’s electricity is powered by natural gas from Indonesia and Malaysia.

Said Mr Wong: ‘Pegging electricity prices to natural gas in Asia may have to wait for the Asian markets to mature, which will not happen soon.’

Initial findings of the review are expected in the middle of next year.

He added: ‘The reality is that we will have no control of global oil movement in the energy market and no matter how we fine-tune the tariff formula, I don’t think we will completely shield or insulate households from price volatility movement.’

Energy conservation remains the best strategy for private school lecturer, Mrs Sally Chew, 47.

The power bill for her family of five, who live in a five-room HDB flat, hit a high of about $250 last month.

Although it will go down in the New Year with lower tariffs, she said: ‘But I will still tell my two children to continue saving electricity, switching off the lights when they leave the room, and not to use the air-conditioner too much.

‘It is still costly, and prices will go up and down with oil prices, so it’s best to just save electricity.’

Source : Business Times - 05 Dec 2008

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The Mayfair@ 1 Jurong East Street 32 for sale

The Mayfair@ 1 Jurong East Street 32

District: 22 ( Boon Lay, Lakeside, Jurong )
Property Type: Condominium
Asking Price: $ 670,000
Tenure: 99 Years
No. of bedrooms: 3
No. of bathrooms: 3
Built up: 1184 sq. ft.

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Mindy Yong

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Alessandrea@ 31 Alexandra Road for sale

Alessandrea@ 31 Alexandra Road

District: 03 ( Alexandra, Queenstown, Tiong Bahru )
Property Type: Condominium
Asking Price: $ 1,200,000
Tenure: Freehold
No. of bedrooms: 3
Built up: 1098 sq. ft.

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Mindy Yong

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Citylights@ Jellicoe Road for sale

Citylights@ Jellicoe Road

District: 12 ( Balestier, Serangoon, Toa Payoh )
Property Type: Condominium
Asking Price: $ 780,000
No of storeys: 12
Tenure: 99 Years
No. of bedrooms: 2
No. of bathrooms: 1
Family/Hall: 1
Built up: 678 sq. ft.
Amenities: Full Condo facilities

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Mindy Yong

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Grand Duchess at St Patrick’s@ Saint Patrick’s Road for sale

Grand Duchess at St Patrick’s@ Saint Patrick’s Road

District: 15 ( Amber Rd, Joo Chiat, Katong, Marine Parade, Meyer, Tanjong Rhu )
Property Type: Condominium
Asking Price: $ 1,300,000
No. of bedrooms: 3
Built up: 1507 sq. ft.

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Mindy Yong

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Yishun Sapphire@ 50,52,54 Canberra Drive for sale

Yishun Sapphire@ 50,52,54 Canberra Drive

District: 27 ( Sembawang, Yishun )
Property Type: Condominium
Asking Price: $ 600,000
No. of bedrooms: 3
Built up: 1163 sq. ft.

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Mindy Yong

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Yishun Emerald@ 26/28/30/32 Canberra Drive for sale

Yishun Emerald@ 26/28/30/32 Canberra Drive

District: 27 ( Sembawang, Yishun )
Property Type: Condominium
Asking Price: $ 680,000
No. of bedrooms: 3
Built up: 1195 sq. ft.

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Mindy Yong

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Lakeshore@ Twr 3A-3E Jurong West St 41 for sale

Lakeshore@ Twr 3A-3E Jurong West St 41

District: 22 ( Boon Lay, Lakeside, Jurong )
Property Type: Condominium
Asking Price: $ 850,000
No. of bedrooms: 3
Built up: 1109 sq. ft.

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Mindy Yong

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