PRs Now Better Educated

PRs Now Better Educated

S’pore must welcome more ‘suitably qualified’ immigrants: Wong

by Imelda Saad Aziz

SINGAPORE – The number of foreigners who became permanent residents (PRs) last year was half that of 2009 and one-third 2008′s figure. But the approach of keeping Singapore’s doors open to “suitably qualified” foreigners is here to stay.

Deputy Prime Minister Wong Kan Seng yesterday reiterated this reality as the population ages without replacing itself adequately.

With the fertility rate hitting a new low last year, Mr Wong said the Republic must keep bringing in foreign workers to support economic growth. Said Mr Wong: “The key hurdle to achieving a sustainable population lies in our local fertility rate, which is quite weak.”

Mr Wong, who heads the National Population and Talent Division (NPTD), also outlined the principles that would guide the Government’s objective of achieving a “sustainable population profile”: Preserving and upholding what is distinctive and unique about Singapore, ensuring the growth and change will benefit Singaporeans and remaining nimble and prepared to make adjustments along the way.

Speaking at the annual Singapore Perspectives seminar, which is organised by the Institute of Policy Studies, Mr Wong disclosed that 29,265 foreigners became PRs last year, a sharp drop from 59,460 in 2009, and 79,200 in 2008.

The number of new citizens remained relatively steady at 18,758 in 2010, compared to 19,928 for 2009.

The Government had tightened the PR and citizenship framework in the last quarter of 2009 to better manage the pace and overall numbers of foreigners.

IPS research fellow Leong Chan Hoong said the figures had a “very reassuring effect for Singaporeans”. Said Dr Leong: “Certainly I think this will help assure Singaporeans that the policymakers have their interests as a priority.”

In his speech, Mr Wong said the Government would continue to encourage couples to have more children but he noted that raising the fertility rate would take time.

Growing the population, Mr Wong explained, provides the critical mass to attract investors and grow domestic markets.

The key is in attracting the right kind of people.

Mr Wong said: “Singapore’s population story is still evolving. Looking ahead, continual refinements will need to be made at appropriate junctures to ensure that Singapore will remain our best home. Like other countries around the world, we must continue to welcome suitably qualified people to work and live in Singapore and contribute to our society.”

Mr Wong described these “suitably qualified people” as an “improvement in the quality of new PRs”.

According to the latest population census, PRs in Singapore tend to be better-educated.

Almost half of the PR population last year were degree holders, compared with 18 per cent of citizens.

Going forward, the NPTD will formulate, coordinate and review Government policies.

As to what is unique about Singapore, Mr Wong said that its people “value hard work, thrift and honesty” and the country has also made its multi-ethnic diversity work for it.

Mr Wong said the Government will “always be guided by the need to preserve a strong citizen core” and to “maintain stability” in the ethnic mix.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

A New Chapter In Teaching Mother Tongue »« Private home sales drop 30% on-month

Private home sales drop 30% on-month

Private home sales drop 30% on-month

By Jonathan Peeris | Posted: 17 January 2011

SINGAPORE: Sales of private home properties moderated in December, but still came in above the 1,000 units level. Data released on Monday by the Urban Redevelopment Authority (URA) shows that 1,332 private homes were sold last month.

That is a 30 per cent on-month drop from the 1,915 units sold in the previous month.

Including Executive Condominiums, the total sales would have reached an even higher figure of 1,699.

Chalking up the best sales was Prive at Punggol Road, which sold 326 units for a median price of S$704 per square foot.

Meanwhile, the most expensive property sold in December was at The Ritz Carlton Residences at Cairnhill Road, where a unit was sold at a median price of S$4,307 per square foot.

-CNA/ac

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

PRs Now Better Educated »« JTC awards Toh Tuck industrial site to Incorporated Builders

JTC awards Toh Tuck industrial site to Incorporated Builders

JTC awards Toh Tuck industrial site to Incorporated Builders

Posted: 17 January 2011

SINGAPORE : JTC Corporation has awarded the tender for an industrial site at Old Toh Tuck Road/Toh Tuck Avenue to Incorporated Builders.

The developer submitted the highest bid of S$8.7 million for the 10,083 square metre land parcel.

Tender for the site was launched on October 29 last year and closed on December 10, with five bids submitted.

The land usage, zoned for Business 2, is meant for logistics facilities – which can be used for storage, packaging, containerisation and general warehousing.

The 30-year leasehold site has a gross plot ratio of 1.6 and a project completion date of 96 months.

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Private home sales drop 30% on-month »« Floods Buoy Commodities

Floods Buoy Commodities

Floods Buoy Commodities

by May Wong

SINGAPORE – Commodity prices are set to continue to trend upwards, aggravated further by the floods in Australia, and analysts said this could in turn benefit commodity-exporting countries in Asia such as Indonesia.

Despite the weather disruptions to mining activities and with crop productions down in Australia, analysts believe the commodity sector will still perform better than most other asset classes this year. Some say that is because, as economies do well, demand for commodities will continue to grow. And right now, there is still a shortage of commodity supplies.

With Australia – a major supplier of coal to Asian steel producers – grappling with the destruction, other countries might step up their output to plug the gap. Mr Avtar Sandu, Asian commodities manager, Phillip Futures, said that Indonesia, the second-largest exporter of thermal coal, might attract a lot of long-term contracts.

“The full impact has yet to be felt. I feel the flooding is going to go on for another two to three weeks and, with the ships lining up on the ports itself, exports will be hit and spot prices especially for coal are going to go up,” Mr Sandu said.

The price of coking coal, used in steelmaking, is likely to reach US$320 ($412) per tonne in the first quarter, up from the current price of US$295 a tonne. It has already increased by about 33 per cent since last October.

Analysts were bullish on the prospects of local commodity firms like Straits Asia Resources and Noble Group. They said such companies either do not have operations in Australia or that their businesses are well-diversified and not dependent on Queensland.

“We do not expect Straits Asia Resources to be affected by the Australian floods because its operations are based in Indonesia. And, in fact, Straits Asia Resources might benefit from what’s happening in Australia because of rising thermal coal prices, resulting from supply shortages,” said Mr Lee Wen Ching, investment analyst, OCBC Investment Research.

“As for Noble, we do not expect the floods to have significant impact for two main reasons. Firstly Australia accounts for only 2 per cent of Noble’s volumes. Secondly, Noble’s coal mines are located in New Castle, which is quite far south from Queensland,” he said.

Mr Lee said Olam International sources cotton and wheat from Queensland and that the harvest yield for its cotton crop might be affected by floods. However, the extent of damage will not be ascertained until the harvesting season in February.

“Investors (in Olam) can take comfort in knowing that despite the floods, Australian cotton harvest is expected to grow to four million bales from 1.6 million bales the year before, and on top of that, Olam’s market share has been rising. This could offset some of the weakness caused by these floods in Australia,” he said.

May Wong

Source : TODAYonline – MediaCorp Press Ltd’s copyright

JTC awards Toh Tuck industrial site to Incorporated Builders »« More REITS To Make Debut On S’Pore Exchange

More REITS To Make Debut On S’Pore Exchange

More REITS To Make Debut On S’Pore Exchange

by Millet Enriquez

SINGAPORE – At least seven real estate investment trusts (REITs) that could raise around $4 billion are expected to make their debut on the Singapore Exchange this year.

Analysts expect further upside for REITs and said more of them will likely ride the momentum and issues as big as last year’s two mega-IPOs could be in the pipeline.

One of these is the Mapletree Commercial Trust to be launched sometime in late March or early April, which could raise over $1 billion and will have an asset portfolio of about $2.5 billion, said Mr George Lee, executive vice-president, Group Investment Banking at OCBC Bank.

The other big issue is that of Perennial Real Estate, which is reported to list a trust comprising principally of retail malls in China, and will potentially raise funds close to $1 billion.

The REIT IPO pipeline also includes another syariah-compliant REIT of a Middle East hospitality asset, three hospitality trusts from Singapore and Hong Kong, and an industrial trust.

“The general market is fairly conducive to IPOs this year,” said Mr Lee, adding that a bullish equity market – which could hit 3,500 to 3,600 this year – as well as better performance from last year’s IPOs could encourage more companies to list on the exchange this year.

Prospect for REITs, in particular, remain positive.

OCBC’s Mr Lee said that while the FTSI REIT sub-index has risen 149 per cent from the trough in March 2009, there is still more room for upside given that the index is still 37 per cent off the peak reached in June 2007.

Credit Suisse in its Jan 12 report said it expects positive momentum to continue in the office REIT sector and estimates rents to rise by 3 to 8 per cent in 2011 to 2012.

It added that rents here are still 50 per cent lower than those in Hong Kong – a gap that will widen further – and Singapore remains an attractive venue for businesses to set up and expand.

“Businesses have been and are still in expansion mode, mostly across the financials and related, insurance, oil and gas, services and shipping industries.

“We expect occupancy to bottom in 2011 and recover to 90 per cent in 2014, when we anticipate a potential shortage in prime CBD space, as new supply is only expected to come through in 2015,” the Credit Suisse report said.

Analysts said that tax benefits and high visibility to help raise funds are among the reasons why REITs list on the exchange.

“Listed REITs income is tax-free, subjected to certain conditions,” said Mr Robson Lee, partner Shook Lin & Bok.

He added that to qualify, REITs must distribute 90 per cent of its income to unit holders and invest portions of its net asset value on rental-yielding properties.

Properties sold to listed REITs are also not subject to stamp duties, he added.

Experts believe REITs will remain attractive to investors, especially at this time because they ware a good hedge against inflation.

“With REITs there’s no speculation, it’s a serious business of acquiring property with a steady income yield. It’s a hybrid of sorts: It’s a property and yield play. You don’t expect phenomenal upswings or downswings because rentals are locked in three years or more, so this creates a very safe, stable kind of investment,” said Shook Lin & Bok’s Mr Lee.

“There will be no lack of tenants,” he added, and investors can enjoy a steady stream of rental driven by economic recovery and Singapore’s attractive business environment.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Floods Buoy Commodities »« Number Of Off-Peak Cars Starts To Plateau

Number Of Off-Peak Cars Starts To Plateau

Number Of Off-Peak Cars Starts To Plateau

by Leong Wee Keat

SINGAPORE – In the first sign that the population of off-peak cars (OPCs) may be reaching a plateau, the number of red licence plates on the roads has fallen for the first time in at least three years.

The number of car owners converting to the OPC scheme has also hit the brakes lately.

According to Land Transport Authority (LTA) figures, the total population of OPCs decreased last month by 57, from November’s 50,097. The fall was attributed to high Certificate of Entitlement premiums, which are making OPCs less appealing and keeping budget buyers on the sidelines, motor traders say.

The number of new cars registered as OPCs has fallen sharply since last January – when the scheme was enhanced to allow motorists on the roads throughout Saturdays and the eves of some public holidays – from 767 to 111 last month.

Before the change, they were allowed on the roads only before 7am or after 3pm on those days. If they wished to drive outside the prescribed hours, they had to pay $20 a day.

When asked by MediaCorp if the fall in the OPC numbers was a concern, the LTA said the overall population last year was 2,816 more than the number in December 2009.

The LTA had previously envisaged that the enhanced scheme could eventually lead to 10 to 15 per cent of cars being OPCs, which would alleviate peak-hour traffic. OPCs now account for 8.4 per cent of the car population.

One trader felt that the $17,000 tax savings on an OPC is “relatively insignificant” now. For example, a 1.6-litre Hyundai Avante, which cost $52,000 last February, now costs $80,500. The OPC discount would have been 33 per cent last year, but amounts to 21 per cent now.

Under the revised scheme, car owners who convert to red plates could also receive cash rebates of up to $1,100 for every six months under off-peak registration.

But fewer owners seem to be making the switch lately. There were 108 owners who did so last month, less than half of the 229 in December 2009. Still, the 1,984 conversions last year were several times higher than the number in 2009.

Singapore Vehicle Traders Association honorary secretary Raymond Tang has seen several used car buyers converting their cars to red plates, allowing them to claim cash rebates to offset rising fuel and parking costs.

To make the scheme more attractive, he suggested that the authorities could look at expanding the scheme to the eve of public holidays beyond just New Year’s Day, Chinese New Year, Hari Raya Puasa, Deepavali and Christmas. “With COEs so high, it doesn’t make any sense to motorists to purchase new cars as OPCs,” he added.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

More REITS To Make Debut On S’Pore Exchange »« Property curbs are calibrated, targeted, pre-emptive: Mah

Property curbs are calibrated, targeted, pre-emptive: Mah

Property curbs are calibrated, targeted, pre-emptive: Mah

By Saifulbahri Ismail/Ng Lian Cheong | Posted: 15 January 2011

SINGAPORE: National Development Minister Mah Bow Tan said the latest property cooling measures were not meant to crash the market.

He described them as “calibrated”, “targeted” and “pre-emptive”. Mr Mah was speaking to reporters at a community event on Saturday.

Explaining the government’s rationale for the recently announced property cooling measures, Mr Mah said a judgement call was needed when property prices were moving faster than what the economy can support.

He said: “When you start to see people queuing up (at property launches), long queues, and you start to read about people buying 2-3 houses at the same time, people with no steady income….I think those are the sort of signs that there’s a little too much exuberance in the market.”

Mr Mah said that there is an abundant supply of private homes, citing figures to show that there are about 34,000 private properties in the market – equivalent to three years’ supply of homes.

He also said that the cooling measures are not permanent, adding that the government will keep an eye on the market and if they are no longer necessary, they will be removed.

Mr Mah noted that these measures will also help some Singaporeans to realise their dream homes.

He said: “These measures will help to ensure that prices are kept within fundamentals. If we can establish that and maintain that then I think there’s no reason why Singaporeans, young Singaporeans, middle-income Singaporeans cannot have that home that they desire.”

Of the four rounds of government measures to cool the red-hot property market over the last two years, the latest which came into effect on 14 January has been the most severe.

Market watchers believe the latest measures will have real bite and will prove more effective than previous attempts to cool rising property prices.

Some factors, like an increase in land supply, may also add downward pressure on private property prices, said analysts.

In the past three years, private developers sold an average of about 12,700 units annually. Should this number be halved this year, private property prices will also be affected, said analysts.

Hence, some buyers can look forward to see home prices taking a dip from their record highs.

Meanwhile, an analyst said completed private developments may prove more popular, following the introduction of the latest property-cooling measures.

SLP International Property Consultants’ research executive director, Nicholas Mak, said: “I think there will be many HDB upgraders who will prefer to buy completed properties, because if they were to sell their existing flats, they can borrow up to 80% of the price of the property from the bank, and at the same time, they would be able to move into the completed property immediately, thereby saving the rental cost.”

- CNA/ir

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Number Of Off-Peak Cars Starts To Plateau »« Measures will discourage property speculation: REDAS

Measures will discourage property speculation: REDAS

Measures will discourage property speculation: REDAS

By Wayne Chan |  13 January 2011
SINGAPORE : The Real Estate Developers’ Association of Singapore (REDAS) has said the latest measures taken by the government to further cool the residential property market will discourage speculative demand.

It said in a statement that the measures which impact Seller’s Stamp Duty (SSD) and Loan-To-Value limits on housing loans will also encourage longer term holding of properties, which will contribute to the stability of the market.

From January 14, the holding period for the Seller’s Stamp Duty will be raised to four years from the current three.

The SSD rates will also be raised to 16 per cent for properties sold in the first year, 12 per cent for those in the second year, eight per cent in the third year, and four per cent for properties sold in the fourth year.

Meanwhile, those with existing home loans will have to pay more cash upfront for taking out new mortgages.

The Loan-to-Value limit for such buyers is being lowered to 60 per cent for individuals and 50 per cent for property buyers who are not individuals – such as trusts and companies.

REDAS said that it is confident that Singapore’s property market will continue to be underpinned by sound economic fundamentals and a favourable business environment.

Prospective buyers Channel NewsAsia spoke to welcomed the measures to cool the market and added they would be more cautious about their home purchase.

34-year-old Hemanta Kumar Banka, an IT professional, said: “People will try to hold back as much as possible until there is a real need because the amount of tax which is there is not a small amount – it’s a big chunk …

“Spending like a 10 per cent, a 12 per cent is not a small amount, so those are good cooling measures which are going to help bring the property market down.”

Account executive Lim Nyuk Khim, 24, said: “Definitely good for us, especially for first time buyers. Because for investment purposes, if I am going in for a fast buck, I actually would have to pay more.”

- CNA/al/fa

 
Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Property curbs are calibrated, targeted, pre-emptive: Mah »« More property market measures announced

More property market measures announced

More property market measures announced

By Mustafa Shafawi | 13 January 2011
SINGAPORE: The government has announced more measures to maintain a stable and sustainable property market.

From Friday, the holding period for imposition of Seller’s Stamp Duty (SSD) will be raised to four years from the current three.

The SSD rates would also be raised while the Loan-To-Value (LTV) limit would be lowered to 50 per cent on housing loans for property buyers who are not individuals.

The LTV limit would also be lowered to 60 per cent for individual property buyers with one or more outstanding housing loans.

The government said its objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals.

Analysts said they believe the measures could further curb speculation in the market.

Research Consultancy SLP International executive director Nicholas Mak said: “This is going to basically drive another nail into the coffin of anybody who has thoughts of short-term investments — in other words speculation in the property market.

“This is quite a drastic measure to try to drive out short-term investors because by raising the Seller’s Stamp Duty to a very punitive rate of eight per cent and above basically creams off all the profits that a short-term investor hopes to gain”.

Chesterton Suntec International head of research and consultancy Colin Tan said he was surprised at the timing of the new measures.

“I think everyone recognises that the liquidity problem is a global one and that the measures are meant to inject some sanity at certain points in time,” he said.

“I think everybody (had) never expected them to last very long but apparently it’s so strong that they feel that maybe quite soon, after August 30, they need to act again.

“The message sent here is pretty strong. I think for a while the market should cool down.”

Previous measures have, to some extent, moderated the market, but sentiments remain buoyant.

It said low interest rates plus excessive liquidity in the financial system, both in Singapore and globally, could cause prices to rise beyond sustainable levels based on economic fundamentals.

Moreover, when interest rates eventually rise, it could strain purchasers who have overextended themselves financially.

Therefore, the government said it has decided to introduce additional targeted measures to cool the property market and encourage greater financial prudence among property purchasers.

It said there’s an ample supply of private residential units, and buyers need not rush to buy now.

It added it would continue to ensure an adequate supply of housing to meet demand.

The government also said it would continue to monitor the property market closely and take further steps to promote a stable and sustainable property market if necessary.

- CNA/wk
Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Measures will discourage property speculation: REDAS »« A CLEAR MESSAGE THE GOVERNMENT WILL NOT BE MESSED WITH

A CLEAR MESSAGE THE GOVERNMENT WILL NOT BE MESSED WITH

A CLEAR MESSAGE THE GOVERNMENT WILL NOT BE MESSED WITH

by Colin Tan

Upon first reading, the latest set of cooling measures looked pretty harsh but a second reading shows that the new rules are actually quite focused on which group of buyers it wants to discourage that is, speculators and short-term investors. Even here, we have to understand what is actually happening in the market before we can say for sure whether the impact on this group of buyers is significant.

The sharp hike in sellers’ stamp duty for any resale within four years of purchase is pretty drastic. This will significantly increase transaction costs and lower the profits of investors. This will in turn lower the attractiveness of properties as an investment asset.

However, how much of an impact this measure will have on the market will depend on how much re-selling actually occurs in the market within four years of purchase. The current statistics appear to show that the volume of subsales is not a big problem and has actually been decreasing over the past year.

The 50 per cent loan-to-value ratio for non-individual buyers also looks like it will hit the market hard. However, if the banks and finance companies are already voluntarily capping loans at 50 per cent for such buyers, then once again, the impact is minimal.

The reduction in loan-to-value ratio from 70 per cent to 60 per cent for individuals with one or more outstanding mortgages appears to be the easiest to analyse. Those buyers at the margin will be the hardest hit. Do expect another round of vocal protests in the media. However, more importantly, the proportion that needs to be paid in cash has been left untouched at 10 per cent.

You then have to ask which is the greater hurdle for such buyers? I suspect it is the cash component which means the impact is mitigated somewhat.

Is this new set of measures a case of the bark being worse than its bite?

Notwithstanding the actual impact of the measures, I expect a knee-jerk reaction from the market.

We can expect developers to hold back their launches as they wait for potential buyers to digest the news. The overall sales volume will drop sharply.

With much fewer launches, the price index will be strongly influenced by what happens in the secondary market. Whether prices correct or not will depend on whether there is any panic selling. The more likely response I feel is that most sellers will wait and see which means prices will be flat.

The strongest impact of the new set of measures is in its timing. Lately, some investors are even doubting whether the Government has the gumption to act tough. Certainly, many had not expected a reaction so soon after the Aug 30 announcement. After all, the flash estimates have shown that the pace of price increases have slowed.

That the authorities have acted so quickly when it needed to should send short-term investors a clear message it will not be messed with and that the market will certainly not be allowed to overheat.

Colin Tan is the head of Research & Consultancy at Chesterton Suntec International.
Source : TODAYonline  MediaCorp Press Ltd’s copyright

More property market measures announced »« NEW COOLING MEASURES BUT …