You Say, I Say

“Mas Selamat escaped because of a security lapse…The Criminal Investigation Department is investigating how it happened particularly in terms of whether there is any criminal wrongdoing…. I have set up a Committee of Inquiry to get to the bottom of this matter.  The Committee will examine the system of the Whitley Road Detention Centre, investigate how he escaped and recommend improvements.”

– Minister of Home Affairs, world’s highest pay minister,2nd March 2008

 

 

 

” To me, committees are what insecure people create in order to put off making hard decision.”

 

 

 

 

– Donald Trump, Forbes 314th richest man in the world 2007 (US$2.9 billion)

 

 

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Winner's Curse

Heard of the winner’s curse?

After today’s tender, it clearly shows that either MCL knows something that others don’t or others know something that MCL doesn’t.

How can this Yishun site be a better site than Ang Mo Kio site or West Coast site ($305psf/PR)? No doubt it has good view of the reservoir but it does not have a MRT station located within walking distance and it is located facing a busy traffic junction. At this land cost, the breakeven sale price will be around the region of $700-$750psf for a leasehold condo in Yishun. Mind you, it is just breakeven cost, throw in some profit and see the selling price escalate.

S/N NAME OF TENDERER TENDER PRICE ($) PRICE
($ PSF/PR)
1 MCL Land   $             213,500,000  $                          350
2 Peak Green   $             127,000,000  $                          208
3 Frasers Centrepoint   $             109,660,000  $                          180
4 Sim Lian Land   $               92,595,000  $                          152
5 Billion Rise   $               57,740,000  $                            95
Yishun residents will be glad that someone thinks their estate is worth this much.Either way, someone’s going to get into big trouble.

Inflating the Inflation

Inflation in South Korea reached an annual rate of 3.6% in Feb 2008, the president came out with his gun blazing made this comment: ‘We are facing a global economic crisis, which is beyond our control,’ Mr Lee told Britain’s Financial Times and other newspapers in an interview published yesterday. ‘The ramifications of what we may call the US financial crisis on the global economy are getting bigger. It is taking a toll on consumer prices, making people’s lives difficult. The most urgent policy is (tackling) inflation.’

Inflation in Singapore reached 6.5% in Feb 2008, the MTI issued a statement saying:”… underlying inflation remains stable, as indicated by the three-month moving average (3MMA) CPI, which grew 0.8 per cent month- on-month in February. The underlying inflation momentum is expected to decline during the course of the year.”

It is too much for some minister to come out and tell us they are doing all they can to fight the inflation?

65%

Remember my post on Cityview DBSS? Here’s the update:

 City View共有714个单位,总共收到约3500份申请,平均每个单位有5个人申购。经过两轮的抽签选购,将近65%的单位已有了主人,包括顶楼6间售价72万7000元的五房式阁楼组屋。

  负责销售的HSR经纪行董事刘凯丽受访时透露,第一轮抽签选购有1400人被抽中前往选择心仪的单位,第二轮同样有1400人被抽中选购,最终剩下250个单位没卖出。

  她说:“这两轮抽签选购进行了20天左右。考虑到最近的股市状态和美国经济走软,加上不少被抽中的申请者其实不符合资格,例如家庭月入超过8000元,所以20天的选购活动能有这样成绩已经是很不错的了。”

  从本月29日(星期六)上午10时起,位于文庆路的销售中心将以先到先得的方式派发轮候号码给公众,然后为公众确定是否符合购买资格,才让合格的买家选购单位。直接选购活动将在下个月5日结束。

  她也说,剩余的35%单位有各个价位和各种类型的组屋,平均售价仍是每平方英尺520元,发展商不会调整这些剩余单位的价格.

Basically, there are 5 applicants for every units and even after two rounds of allocation, a mere 65% was taken up. The developer will be selling the units on a first come first serve basis.

At the rate the situation is developing, it does not look good for future DBSS developments. In my opinion, this may well be the signal for the onset of the softening of the HBD resale market.