Post by oldman on Nov 12, 2013 19:35:02 GMT 7
Interesting comment on the property market in Top Global's 3rd quarter report released today.
A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
Many predicted that Singapore home prices may fall 20% by 2015 due to oversupply and various curbs imposed by our Government to cool off property market.
Meanwhile, it was reported that Hong Kong home prices will fall as much as 25 percent from their peak as housing supply increases and the possibility of rising interest rates grows, according to Bank of America Corp.’s Merrill Lynch unit.
Over in Indonesia, in order to avert a potential bubble in the hottest property market in Asia, Bank Indonesia (the central bank of Indonesia) had further tighten its monetary policy in the sector recently by raising the minimum down payment requirement on housing loans to 30 percent for first home ownership amongst other measures.
Just as other governments in the region are busy correcting their housing market conditions via stricter policy and control in land use, increase in taxes and tightening of credit etc, our neighbour country, Malaysia, also announced various measures via their 2014 Budget recently. Among others, there will be 30% real property gain tax (RPGT) for disposal of property within the first three years. For disposals within the holding period up to four and five years, the rates are increased to 20 percent and 15 percent respectively.
The Malaysia 2014 Budget saw significant changes made to property purchases by foreigners where foreigners are only eligible to purchase property at the minimum price of RM1 million (S$394,340) from the previous RM500,000 (S$199,230).
Although all that are happening seem to pose some deterrence over our growth plans, it may not be a bad thing after all as players are more cautious while market prices are making the corrections, which is healthy for the sector in the long run. Very importantly, it is not just happening to Singapore market but across the region. The slowdown provides more breathing space for repositioning and redefining growth directions although it is inevitable that the Group may have to bite the bullet in the transition.
infopub.sgx.com/FileOpen/TopGlobal.Results.AnnouncementQ3FY2013.12Nov2013.ashx?App=Announcement&FileID=263764
A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
Many predicted that Singapore home prices may fall 20% by 2015 due to oversupply and various curbs imposed by our Government to cool off property market.
Meanwhile, it was reported that Hong Kong home prices will fall as much as 25 percent from their peak as housing supply increases and the possibility of rising interest rates grows, according to Bank of America Corp.’s Merrill Lynch unit.
Over in Indonesia, in order to avert a potential bubble in the hottest property market in Asia, Bank Indonesia (the central bank of Indonesia) had further tighten its monetary policy in the sector recently by raising the minimum down payment requirement on housing loans to 30 percent for first home ownership amongst other measures.
Just as other governments in the region are busy correcting their housing market conditions via stricter policy and control in land use, increase in taxes and tightening of credit etc, our neighbour country, Malaysia, also announced various measures via their 2014 Budget recently. Among others, there will be 30% real property gain tax (RPGT) for disposal of property within the first three years. For disposals within the holding period up to four and five years, the rates are increased to 20 percent and 15 percent respectively.
The Malaysia 2014 Budget saw significant changes made to property purchases by foreigners where foreigners are only eligible to purchase property at the minimum price of RM1 million (S$394,340) from the previous RM500,000 (S$199,230).
Although all that are happening seem to pose some deterrence over our growth plans, it may not be a bad thing after all as players are more cautious while market prices are making the corrections, which is healthy for the sector in the long run. Very importantly, it is not just happening to Singapore market but across the region. The slowdown provides more breathing space for repositioning and redefining growth directions although it is inevitable that the Group may have to bite the bullet in the transition.
infopub.sgx.com/FileOpen/TopGlobal.Results.AnnouncementQ3FY2013.12Nov2013.ashx?App=Announcement&FileID=263764