Giant on the move
from Global Investing:
On a recent trip home to Singapore, I was startled to learn just how much housing prices in the city-state have risen in my absence.
A cousin said he had recently paid over S$600,000 -- about US$465,000 -- for a yet-to-be-built 99-year-lease flat. Such numbers are hardly out of place in any major metropolis but this was for a state-subsidised three-bedroom apartment.
Soaring housing prices have fueled popular discontent -- little wonder as median monthly household incomes have stagnated at around S$5,000.
For its part, the government -- which houses 80 percent of people on the densely populated island -- insists that public housing prices are shaped by 'market forces', pointing to a raft of financing schemes to help first-time buyers.
from George Chen:
By George Chen
The opinions expressed are the author’s own.
When you walk around Hong Kong's Central commercial and business district these days, you may notice a number of stores are holding "removal sales", which means they can no longer remain in the same location. The reason? In most cases, just blame soaring rents.
Many analysts have forecast declines in residential and commercial property prices in Hong Kong for next year, although at a stable pace rather than a sharp drop. This may be true for some suburban areas where purchase options are more plentiful than those in downtown areas, but until that happens, prices are likely to keep rising, at least for the rest of the year.
from Summit Notebook:
Beijing's affordable housing projects -- which account for 10 percent of the government's huge $585 billion stimulus package, a key to propping up the crucial property market -- is making fans
of low income wage earners, but has some developers seething.
Some developers see the government's role in the market as interference in market forces that are distorting prices.