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property and Financial sector commence bear market
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Salute
Master |
28-Oct-2007 12:37
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Hi 01101749 When you talked about Temasek off loading SSH, why underneath you mentioned the price of 7.60 and 8.05 that people bought and hold onto. To what I know SSH is only 40.5cts. Did I miss something here |
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01101749
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27-Oct-2007 12:06
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Temask dumping ahead of bad news? must have traped alot buyer who bought and hold from 7.6 to 8.05, those who bought at peak may need some help-> 
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01101749
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27-Oct-2007 11:55
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cool down property sector and banks earning will be effected? reduced property buyer will lead to decline banks earning? STI may have peaked 3920, may not break for 4000+? |
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01101749
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27-Oct-2007 11:36
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Bull cycle for property and Banking reached the peak and more down cycle will follow or bear market.   
Singapore Govt Withdraws Deferred Pay Scheme For Ppty Buys to cool down the sector, banking sector will also be affected! SINGAPORE The Singapore government said late Friday it has withdrawn a deferred payment scheme for property purchases due to "strong economic and property market conditions." "In view of the current buoyant property market, the government has decided to withdraw the scheme for the sale of uncompleted private residential and commercial properties with effect from Oct. 26," the Urban Redevelopment Authority said in a statement. In 1997, when the island's property market crashed, the government set the scheme, which allowed developers to offer buyers of uncompleted residential and commercial properties the option to defer part of the progress payments due after the initial 20% down payments to a later stage. Subsequently, the government allowed deferrals of up to half of the initial 20% down payments. The move fueled speculation among investors who were able to secure properties by putting up a minimum down payment and quickly reselling them. -By October 26, 2007 06:50 =DJ UPDATE:Singapore Pulls Pay Deferral Option To Cool Ppty Boom By John Jannarone and Patricia Kowsmann Of DOW JONES NEWSWIRES SINGAPORESingapore's government has withdrawn a key payment deferral option for real estate buyers, in a bid to cool the city-state's sizzling property market. The move comes just two weeks after the central bank tightened policy, and reflects a non-monetary step to prevent a real estate boom from stoking unwelcome inflationary pressure. It also underscores the lack of options available to Asian economies that are unable to raise interest rates while the Federal Reserve eases its policy, because their policies target foreign exchange. Singapore's property planning agency said late Friday that it has pulled the Deferred Payment Scheme for property purchases in view of "strong economic and property market conditions." "It's not a fiscal move, but it's a way of addressing overheating aside from tighter monetary policy," said Chua Hak Bin, director of Asia Pacific Economics & Market Analysis at Citigroup in Singapore. Different features of the scheme - which allows purchasers to defer both downpayments and progress installments - were introduced during recessions in 1997 and 2001 to jump-start the real estate market. But in the last two years Singapore's property market has rebounded, driven partly by speculators who have bought properties with a small downpayment and quickly resold them. The agency also reported revised private home sales data for the third quarter Friday, with sales increasing 8.3% from the second quarter. That matched the pace in the second quarter which was the fastest rate of increase since the record 11.8% rise posted in the second quarter of 1999. A large percentage of the home purchases last quarter were sub-sales - transactions that occur before title certificates have been issued and often reflect speculative investment. Third-quarter sub-sales accounted for more than a fifth of all transactions in the most prime districts, including Sentosa Island, the Orchard Road area, and the new downtown at Marina Bay. "Subsales have reflected a growing percentage of the market," Citigroup's Chua said. "It's gives a sense of the role of speculation in the market." Island-wide, subsales accounted for 12.7% of all sale transactions in the third quarter. The government said the deferred payment scheme for sales of uncompleted private residential and commercial properties would be withdrawn effective Friday. Signs Of Overheating Consumer prices rose 2.7% from a year earlier in September after hitting a 14-year high of 2.9% in August, prompting the central bank Oct. 10 to adjust its monetary policy a notch tighter. But the central bank's policy mechanism focuses on foreign exchange, which forces it to give up control of lending rates. External trade dwarfs the city-state's domestic economy, so the central bank prefers to use exchange rate targeting as its primary policy tool. The new policy allows a slightly faster appreciation of the currency and helped the Singapore dollar reach its highest level against the greenback in 10 years Friday, with the U.S. currency trading at just S$1.4523. Ultimately, an excessively strong currency will impact the competitiveness of exporters, and a stronger currency won't necessarily cool the property market. "The property market phenomenon is driven by local demand, whereas the exchange rate is used to control imported inflation," said Song Seng Wun, an economist at Malaysian investment bank CIMB-GK in Singapore. "The government needed to take a different angle." |
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