Real News‎ > ‎2013‎ > ‎October 2013‎ > ‎

22 Oct 2013

Targeted cooling measures would be more effective
Curbs such as ABSD and TDSR do not seem to have produced the desired results
Source: Business Times
By: Ku Swee Yong

THE first part of this article last week concluded that the Singapore household balance sheet is rock solid: household net worth is increasing because household assets such as shares, CPF, currencies and savings are increasing more than household debt.

However, the pace of increase in mortgages remains a concern for the authorities. There is fear that the extended period of low interest rates may be over soon and over-stretched borrowers may find it tough to service their monthly repayments. Subsequently, they might sell their properties at a significant discount to current market values. Market valuations will then drop.

Are we over-borrowing against our homes?

According to the MAS, the average loan-to-value ratio (LTV) for housing loans was 47.5 per cent in Q2-2013. (Table 1) This is based on a quarterly survey of financial institutions which accounts for more than 90 per cent of the housing loans in Singapore. As at Q2-2013, the total home loans granted was $193.7 billion, out of which $162.8 billion has been utilised (including partial drawdowns for properties under construction).

Plum school site in Swiss Club area up for subleasing
German European School looking to sublet main campus site; minimum reserve price set at $39m for 26-year lease
Source: Business Times
By: Kalpana Rashiwala

New and existing players in the foreign school arena looking for a long-term investment in a flagship Singapore campus will soon be able to bid for a 26-year lease for a property surrounded by international schools and near Good Class Bungalow (GCB) areas.

The German European School Singapore (GESS) has launched a tender for a 26-year sub-lease on its main campus at 72 Bukit Tinggi Road in the Swiss Club locale. The minimum reserve price is set at $39 million, which translates to $415 per square foot on the existing gross floor area of 93,969 sq ft for the campus. Situated near the former Turf Club grounds, the 130,216 sq ft site is zoned for "educational institution" use under the Urban Redevelopment Authority's (URA) Master Plan 2008