Straits Times Online Oct 16, 2010
Cooling measures seem to have immediate impact, with 911 units sold last month PRIVATE home sales last month were down sharply from August, suggesting that the recent steps to cool the surging property market had immediate impact.
Developers sold 911 flats last month - down from 1,259 in August - and a substantial part of that was due to heavy demand for one project.
The level of launches was slightly lower, with 1,058 units released last month, from 1,165 in August, according to the Urban Redevelopment Authority yesterday.
While last month's figures were down, in comparison with the preceding months of mostly bumper transactions, they were still fairly robust and brought sales of new private homes for the first nine months to 12,136. This compares with 12,828 units shifted in the same period last year.
Developers sold 14,688 new homes in the whole of last year, just short of the 2007 record of 14,811 units.
The Aug 30 cooling measures introduced tighter lending rules for people with existing mortgages looking to buy another home, and barred owners who plan to buy a HDB resale flat from keeping their private property, including any held overseas.
Reference #2 :-
ST Online Oct 12, 2010
Currency war may fuel bubbles
BEIJING - THE world faces risks of a currency war that could boost inflation and asset prices in emerging markets, an official Chinese newspaper said on Tuesday.
The China Securities Journal said in a front-page editorial that Beijing would have to control the pace of yuan appreciation and refrain from raising interest rates in order to ward off inflows of speculative capital......
'The financial crisis could escalate into a currency crisis,'the newspaper said. 'There will be no winner.' Efforts by the United States and Japan to weaken their currencies would lead to higher global commodity prices and fuel money flows into emerging markets, pushing up inflation as well as stock and property prices, it said......
Reference #3 :-
TODAY Oct 15, 2010
MAS signals its intent to combat inflation, even as economic growth slows
Taking global markets by surprise, the Monetary Authority of Singapore (MAS) tightened its monetary policy yesterday - signaling its intent to combat inflation even as the Republic's economic growth slows.
The move, which allayed the fears of business owners and consumers about rising costs, sent the Singapore dollar soaring to a record high against the greenback - it also sent the US dollar tumbling against a wide range of currencies.
The US dollar was at 1.2953 against the Singapore dollar and was being quoted at a record low of 1.2893 shortly after MAS' announcement.
While some experts worldwide expressed surprise at the global impact of MAS' move, a Barclays Capital report pointed out that Singapore was "seen as a barometer of Asian economic growth" and investors may read MAS' move "as a sign of greater willingness" on the part of other central banks in the Asian emerging economies to allow the US dollar to further depreciate.
Reference #4 :-
As the larger trend of flight out of USD continues, the Singapore government decides to throw the doors wide open…nay, tear them off the hinges and break down the walls as well, in anticipation of having more hot money flow into the country. The media has made much of MAS’ intent to “combat inflation” by allowing the SGD to appreciate, but we think you ain’t seen inflation yet, if you think setting the expectations for a stronger SGD will actually help keep prices in our tiny little red dot stable. Anyone recall the USD100 billion flow into Singapore during the GFC? Where did you think that money went to? So, was this unexpected? No, because it just confirms that SG is prioritizing the “Monaco” model, and local business be damned. Good for St Regis property prices? Hell yes....
Link :- http://singaporeuncletrader.wordpress.com/2010/10/14/as-hot-money-and-billionaires-continue-flight-from-usd-mas-throws-doors-open-wider/
Reference #5 :-
TODAY Oct 15, 2010
by Colin Tan
With Beijing acting to cool red-hot domestic market, sellers here could benefit from influx of Chinese buyers
Within days of Beijing announcing new measures to cool the overheated property market, thousands of people have been flocking to housing shows in big and small cities across China. Strong enthusiasm was seen in the property shows in Shenzhen, Shanghai and Nanning, though sales were lower compared with last year.
The Chinese authorities had ordered local banks to demand a downpayment of at least 30 per cent from all mortgage applicants and to suspend loans to buyers of third homes on Sept 29.
Following the move, Shanghai, one of the country's top-tier cities, issued new rules to limit home buyers to one new apartment and will impose a revised land appreciation tax soon.
While some analysts foresee a drop in prices in the coming months, property agents say initial signs suggest buyers are still not taking the measures seriously. Buyers react relatively calmly this time, compared with April when they disappeared in a flash.
Is this irrational behaviour or what?
'Noise' in the market
Economists have an explanation for this. Almost all of them agree that an excessively loose monetary policy - with interest rates kept low for too long invariably leads to asset inflation and this includes property.
At the micro level, individuals cannot comprehend this. It does not help that there is a lot of "noise" in the market. Instead they see rising asset prices - of houses, stocks, bonds - touted as a reflection of the real wealth being created......
Reference #6 :-
Singapore Releases 3Q 2010 Public Housing Data
Latest Data and market updates for 3rd Q 2010.