Govt Firmly Rebutted REDAS President Mr Simon Cheong

[Mdm Tang]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_506765.html


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Mar 26, 2010



MND rebuts claims
By Jessica Cheam


Claims that the Government is partly to blame for Singapore's short supply of land and high property prices have been firmly rebutted by the Ministry of National Development (MND) yesterday. -- ST PHOTO: STEVEN LEE CT


CLAIMS that the Government is partly to blame for Singapore's short supply of land and high property prices have been firmly rebutted by the Ministry of National Development (MND) yesterday.

President of the Real Estate Developers' Association of Singapore (Redas), Mr Simon Cheong, questioned on Wednesday the need for government intervention to halt the rise of private home prices, adding that it should shoulder some of the responsibility for short land supply and escalating property prices.

The ministry said yesterday in a statement that it 'disagreed totally with his view'. MND pointed out that the Government's objective was to maintain 'a healthy property market'.

'A property market bubble, if allowed to form, may not only impact housing affordability, but also severely impact the economy when it bursts,' it said.

Mr Cheong - who is also chairman and chief executive of developer SC Global - had claimed that because the supply side was managed by the public sector, market forces were often not wholly free to respond to demand.

He noted that land values were largely determined by the Government's reserve price system, but a site's reserve price is not revealed.

Read the full story in Friday's edition of The Straits Times.

 

[halsey02]

The late JBJ in his speech to the elctotorate, has an answer to all these, we do not study hard & take note...

" Yes Sir!, Yes Sir, three bags full"....everything here in SINgapore is under their control, if they can control the air you breather, they will also cahrge you with air tax per cc....at AFFORDABLE prices..

want to live a good life & make money...just repeat the above mantra"..." and you have money, power & connection...

forget about moaning about property prices etc....just chant "......"

LET'S ALL CHANT " Yes Sir, Yes Sir!"....and you will get more than three bags fulll..

LET'S ALL CHANT....

 

[Papsmearer]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_506765.html


+++++++++++++++++++++++++++++++



Mar 26, 2010



MND rebuts claims
By Jessica Cheam


Claims that the Government is partly to blame for Singapore's short supply of land and high property prices have been firmly rebutted by the Ministry of National Development (MND) yesterday. -- ST PHOTO: STEVEN LEE CT


CLAIMS that the Government is partly to blame for Singapore's short supply of land and high property prices have been firmly rebutted by the Ministry of National Development (MND) yesterday.

President of the Real Estate Developers' Association of Singapore (Redas), Mr Simon Cheong, questioned on Wednesday the need for government intervention to halt the rise of private home prices, adding that it should shoulder some of the responsibility for short land supply and escalating property prices.

The ministry said yesterday in a statement that it 'disagreed totally with his view'. MND pointed out that the Government's objective was to maintain 'a healthy property market'.

'A property market bubble, if allowed to form, may not only impact housing affordability, but also severely impact the economy when it bursts,' it said.

Mr Cheong - who is also chairman and chief executive of developer SC Global - had claimed that because the supply side was managed by the public sector, market forces were often not wholly free to respond to demand.

He noted that land values were largely determined by the Government's reserve price system, but a site's reserve price is not revealed.

Read the full story in Friday's edition of The Straits Times.

How is this a rebuttal? Jessica Cheam is the latest PAP cocksucker.

'A property market bubble, if allowed to form, may not only impact housing affordability, but also severely impact the economy when it bursts,' it said.

That's pretty obvious, isn't it? Million dollar ministers are telling us something the whole world knows?

"Disagreed totally with his view" is a rebuttal? WTF

 

[halsey02]

How is this a rebuttal? Jessica Cheam is the latest PAP cocksucker.

'A property market bubble, if allowed to form, may not only impact housing affordability, but also severely impact the economy when it bursts,' it said.

That's pretty obvious, isn't it? Million dollar ministers are telling us something the whole world knows?

"Disagreed totally with his view" is a rebuttal? WTF

Everything is in their hands....your $10 million Sentosa Cove home will be $1 if you vote in oppositions, your $999,999 Telok Blangah AFFORDABLE HDB flat will become $9.99 if the opposition takes over...

so, like I say...you want to live a good life...suck the pap brand lolipops in so many flavours including halal version...and chant " Yes Sir, Yes Sir"..and it will be filled...

waste time agreeing or diagreeing..just be greedy...make the money & run...

 

[Watchman]

Everything is in their hands....your $10 million Sentosa Cove home will be $1 if you vote in oppositions, your $999,999 Telok Blangah AFFORDABLE HDB flat will become $9.99 if the opposition takes over...

so, like I say...you want to live a good life...suck the pap brand lolipops in so many flavours including halal version...and chant " Yes Sir, Yes Sir"..and it will be filled...

waste time agreeing or diagreeing..just be greedy...make the money & run...

Nah it will not happen .

It's the mass public fear of new beginnings that make them fear . Fear not .

 

[ahleebabasingaporethief]

Like I said before. Even some ELITES are fed up with the SCUMS.

The ground is not sweet for the SCUMS.

What's the point of asking for feedback and engaging us in cyberspace, when all our GOOD INTENTIONS in giving feedback in this forum is not used?

Now even an ELITE's feedback is also REJECTED.

How many you think believe Simon Cheong? How many believe the SCUMS?

I tell you. 99.9% believe SIMON CHEONG. But 66.5 % got NO BALLS to exercise their VOTES CORRECTLY.
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[cheekenpie]

CNA got full story

Govt rebuts REDAS president's comments, defends Reserve Price system
By May Wong | Posted: 25 March 2010 1735 hrs


Photos 1 of 1

Prospective home buyers at a condominium showroom in Singapore


Video
Govt rebuts REDAS president's comments, defends Reserve Price system

SINGAPORE : The Ministry of National Development (MND) has defended its Reserve Price system for state land tenders, and disagrees that it has constrained market forces in Singapore.

It issued a statement to rebut what the Real Estate Developers' Association of Singapore (REDAS) President, Simon Cheong had said on Wednesday.

Cheong cited two sites, Tampines and Ten Mile Junction, saying they were released for sale but not awarded at "market prices".

He had also said "the higher bid prices generated more revenue for state coffers but also accentuated the demand-supply mismatch."

But the ministry disagreed with his view totally.

First, it said it is arguable if awarding the two sites at the low bid prices in 2008 would have moderated property prices or simply allowed the bidders to achieve a higher profit margin.

"The government has a responsibility to safeguard the nation's assets, including government land, and to be able to extract the highest value from those land. So the government does have a duty to try to balance a number of factors, not just smoothing out the market volatility, but also to ensure that the lands are sold at a fair and open market price," explained Nicholas Mak, lecturer, Real Estate, Ngee Ann Polytechnic.

Next, the MND said the Reserve Price system has not deterred the successful sale of sites under the Government Land Sales (GLS) programme.

In fact, it said in 2008, seven residential sites were sold via the Confirmed List.

The two sites of Tampines and Ten Mile Junction were the few exceptions.

Thirdly, the government pointed out that the potential yield from the two sites is small (estimated at about 800 units), compared to the total supply of 60,476 uncompleted units of private housing from projects in the pipeline.

So it is questionable if the added supply from the award of these sites in 2008 would have affected prices today in any way.

Lastly, a Reserve Price is necessary to help the ministry decide whether to award a sale site.

The government uses the price as a guide, and not a rigid formula to decide whether to award a sale site.

On the two highlighted sites, the ministry said it is not convinced the bids represented fair market value. Rather, they were opportunistic ones.

This is because there were very few bids for the sites and these were exceptionally low.

Some industry watchers agree.

"If the developer were to buy the land at a very low price, there is no guarantee that he will sell the new development at a very low price. Chances are that if the market were to recover, and prices start to escalate, the developer will sell the new project at as high a price that he can achieve in the market. And he will congratulate himself for achieving that (huge) normal profit," said Mak.

In its statement, the ministry said it is the government's objective to maintain a steady and healthy property market.

If it allows a property market bubble to form, it will impact housing affordability and the economy, if it bursts. - CNA /ls

This statement is bestest: "First, it said it is arguable if awarding the two sites at the low bid prices in 2008 would have moderated property prices or simply allowed the bidders to achieve a higher profit margin."

 

[Mdm Tang]

Like I said before. Even some ELITES are fed up with the SCUMS.

The ground is not sweet for the SCUMS.

What's the point of asking for feedback and engaging us in cyberspace, when all our GOOD INTENTIONS in giving feedback in this forum is not used?

Now even an ELITE's feedback is also REJECTED.

How many you think believe Simon Cheong? How many believe the SCUMS?

I tell you. 99.9% believe SIMON CHEONG.


$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$


My friends said Simon Cheong is creditable.

a) Good family background .

b) From well known Cheongs Tribe .

c) was director ( or something like that ) at
American Investment Bank : Credit Suisse etc...:p




$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

[Mdm Tang]

Clients used to pay top $$$ for Mr Simon Cheong's

advice while he was working as Director

of Credit Sui . NOw we got his advice for

free ...please appreciate ...

 

[ahleebabasingaporethief]

Yes supposedly rumoured to be from same Cheongs as public listed HongFok and the owners of International Plaza at Anson Rd. Whole family compound is in Oxley road..

REDAS comprises of all the major developers, so to issue such a statement is very solid backing also.

But we all know who to believe lah. HOW TO BELIEVE SOMEONE THAT IS SHORT?

My friends said Simon Cheong is creditable.

a) Good family background .

b) From well known Cheongs Tribe .

c) was director ( or something like that ) at
American Investment Bank : Credit Suisse etc...:p




$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

<input id="gwProxy" type="hidden"><!--Session data--><input onclick="jsCall();" id="jsProxy" type="hidden">

 

[Mdm Tang]

Yes supposedly rumoured to be from same Cheongs as public listed HongFok and the owners of International Plaza at Anson Rd. Whole family compound is in Oxley road..

REDAS comprises of all the major developers, so to issue such a statement is very solid backing also.
But we all know who to believe lah.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$


HOW TO BELIEVE SOMEONE THAT IS SHORT?



$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$



Dear Brothers and sis ,


i got a very simple exam to test who to believe ...

just like in schools ... Can ChannelNewsasia please

invite Mr Simon Cheong and the Represenattive From Govt

to a TV discussion and or Dedate . this will settle the

issues . You can see who to believe hor ....:p

 

[halsey02]

HOW TO BELIEVE SOMEONE THAT IS SHORT>>>

The 66.6% have shortness of breathe & shortness of vision...they believe MBT. WKS, DHANA...etc..

BELIEVE..hallelujah believe!

 

[Mdm Tang]

Business Times - 25 Mar 2010



Let private property fly free, urges Simon Cheong


Redas chief says state intervention on supply side not always helpful



By UMA SHANKARI

(SINGAPORE) The president of the Real Estate Developers' Association of Singapore (Redas), Simon Cheong, came out strongly yesterday to say the government should allow the property market here to operate fully as a free market.

Mr Cheong, who was speaking at the launch of a new price index for private homes in Singapore, also asked if the state should be so concerned with private housing prices when the segment serves only 16.5 per cent of the overall population.

Mr Cheong, who is also chief executive of SC Global Developments, said that he was commenting on the market despite being personally advised not to do so for fear of it being a 'sensitive topic'.

'But, on balance, in the interest of Singapore's property market, I decided to do so,' he said. 'If Redas members who are fighting in the foxhole everyday for the interest of a healthier property market do not speak up, then who will?' Real estate developers in Singapore now have the unenviable task of having to step up their game very quickly to satisfy demand, he said.

In Singapore, the government, which owns more than two-thirds of all land, controls the land supply. Land price here is largely determined by the reserve price system.

'As the supply side of the development equation is managed by the public sector, market forces are often not wholly free to respond to demand,' Mr Cheong said.

To illustrate his point, he highlighted the results of two recent government land tenders, which he said illustrated the 'conundrum and the dilemma developers face' when they bid for sites in the government land sales programme.

A site in Tampines first put up for sale by the government in June 2008 was not sold after the sole bid of $118 per square foot per plot ratio (psf ppr) was rejected for failing to meet the reserve price.

But earlier this month in another tender exercise, it was awarded to the top bidder at $421 psf ppr - 3.6 times the previous price.

Similarly, a mixed-use site at Ten Mile Junction, which had a failed bid of $162 psf ppr back in April 2008, was awarded in February this year for $437 psf ppr.

In both cases, the higher bid prices generated more revenue for state coffers but also accentuated the demand-supply mismatch.

'With a higher land cost, these developers must now sell at higher prices just to maintain an equitable level of profitability.'

Mr Cheong also questioned recent government measures designed to keep private housing affordable, such as the introduction of a stamp duty for sellers and the removal of the deferred payment and interest absorption schemes.

While some felt private property was being priced out of their reach, he pointed out that it served only 16.5 per cent of the demography. 'Should it (the state) intervene to restrain the rise in property values to make private housing more affordable or should it be left to market forces?'

Mr Cheong also said that a certain level of speculative activity in the marketplace can, in theory, improve the liquidity of real estate assets and catalyse the sales of new developments.

When demand exceeds supply by a large margin, speculators provide investors with another source of a scarce commodity at a price premium. And encouraged by the higher prices, developers respond by launching more developments for sale and, in so doing, narrow the gap with demand, Mr Cheong added.

He concluded his speech by pointing out that there are various factors that make real estate the preferred asset class in the near term, such as pent-up demand for mass-market housing and high liquidity, with some $301 billion of cash deposits in banks and another $67 billion of investible CPF funds reported last year.

'Is it any wonder then that the recent measures to cool the private property market did not quench the thirst of genuine home buyers and investors - local and foreign alike - who clearly have strong confidence in the fundamentals of Singapore's real economy and its ascendancy as a global city in Asia?' he said.

Mr Cheong added that he hopes that the launch of the new index will be 'a step towards improving market transparency and help lessen future needs for frequent market interventions, allowing a freer hand for market forces to work out its own genius'.


Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

 

[Mdm Tang]

Business Times - 26 Mar 2010


Govt rebuts Cheong's 'free market' theory


It rejects Redas chief's 'hands-off' plea, says it can't let private property bubbles form


By UMA SHANKARI



(SINGAPORE) The government yesterday defended its policy of managing price movements in the private housing market and also stood by its method of supplying developers with state land sites.

It was responding to Wednesday's speech by the president of the Real Estate Developers' Association of Singapore (Redas), Simon Cheong, who said that the government should allow the private property market here to operate as a completely free market.

Mr Cheong also questioned the need for government intervention to manage the rise of private home prices and asked if the state should be so concerned with private housing prices when the segment serves only 16.5 per cent of the overall population.

His speech took some developers by surprise but most said that it was 'brave'. There was also broad agreement that the government should reveal the reserve price of each site it puts up for sale.

The Ministry of National Development (MND) said it would 'like to respond to the key points he (Mr Cheong) raised'.

'The government's objective is to maintain a steady and healthy property market where price movements are supported by economic fundamentals,' MND said in a statement. 'A property market bubble, if allowed to form, may not only impact housing affordability but also severely impact the economy when it bursts.'

MND does this by making sure that there is an adequate supply of land to meet demand and by providing timely and comprehensive real estate information to the public.

'When necessary, the government will also introduce measures to dampen market exuberance and prevent prices from running ahead of economic fundamentals,' MND added.

The ministry has in recent months taken several steps to keep private housing affordable, including the introduction of a stamp duty for sellers and the removal of the deferred payment and interest absorption schemes.

In his speech, Mr Cheong also cited two sites - one in Tampines and another at Ten Mile Junction - that were not awarded in 2008 after government land tenders as examples to illustrate how market forces were not allowed to act freely and were constrained by the reserve price system.

Both sites were recently awarded in new tenders at much higher prices than the bids in 2008.

Mr Cheong argued that if the government had awarded the sites at lower prices in 2008, it could have helped to moderate the recent hike in private home prices.

But MND 'disagrees totally with his view'. Firstly, it is arguable if awarding the two sites at the low bid prices in 2008 would have moderated property prices, MND said. It could have instead simply allowed the bidders to achieve higher profit margins.

MND also said that the potential yield from the two sites is small (around 800 units) compared to the total supply of 60,476 uncompleted private housing units from projects in the pipeline (as at Q4 2009) - of which 34,234 units are still unsold. It is 'questionable' whether the added supply of the two sites in 2008 would have affected prices today in any way, the ministry said.

The reserve price also did not deter the successful sale of sites under the government land sales programme in 2008, MND pointed out. That year, seven residential sites which could yield a total of 2,464 units were sold through the confirmed list.

The Tampines and Ten Mile Junction sites, which were released for sale through the confirmed list but not awarded, were among the few exceptions.

MND added that a reserve price is necessary, as it is the government's duty as the custodian of state land to ensure it obtains a fair market price for a site. But the reserve price serves only as a guide, and is not a rigid formula for the government in deciding whether to award a sale site.

Said MND: 'The government had awarded sale sites in the past even when the top bid was below the reserve price. However, for the two sites cited by Mr Cheong, the government was not convinced that the bids represented fair market value rather than opportunistic bids, as there were very few bids for the sites, and the bids were exceptionally low.'

Developers BT spoke to said that MND's response was 'as expected'.

'MND has always stuck to its line about maintaining a sustainable property market and so we didn't expect changes just because of his (Mr Cheong's) speech,' said the chief executive of a property group here.

But while not everyone agreed with all parts of Mr Cheong's speech, most developers were in favour of asking the government to disclose the reserve price of each site it puts up for sale by tender.

'For future tenders, if the reserve price is released, there won't be cases where bids come in under the minimum price,' said EL Development managing director Lim Yew Soon. 'By simply listing the reserve price, it makes the whole process easier.'




Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

 

[Papsmearer]

CNA got full story




This statement is bestest: "First, it said it is arguable if awarding the two sites at the low bid prices in 2008 would have moderated property prices or simply allowed the bidders to achieve a higher profit margin."

I disagree, I say this is the bestest statement ""The government has a responsibility to safeguard the nation's assets, including government land, and to be able to extract the highest value from those land. So the government does have a duty to try to balance a number of factors, not just smoothing out the market volatility, but also to ensure that the lands are sold at a fair and open market price," explained Nicholas Mak, lecturer, Real Estate, Ngee Ann Polytechnic. Would Nicholas Mak care to explain why the govt. has failed to safeguard the nation's assets after billions upon billions of dollars losses in GIC and Temasek? Not even 1 individual was fired for losing all those money. How does the govt. plan to get this money back? Also, the govt. stole this land from its rightful owner by expropriating them for pennies on the dollar. The PAP did not buy the land at fair and open market price, but they want to sell it at fair and open prices? I guess this Nicholas Mak is the newest PAP cocksucker extraordinaire.

 

[mscitw]

Merchant Cheong is indeed a fool.

The vermin known as Marboro consistently refused to divulge actual costs of building pigeonholes, what makes Merchant Cheong believe the greedy regime will reveal the reserve price?

 

[kingrant]

It is a good start that more consequential people are becoming more vocal and direct, and speaking up against govt policies and other idiocies. But the TP brothel feverishly struggles to protect the regime, using colorful verbs is part of the weaponry: so Catherine Lims are 'slammed', Simon Cheongs are 'rebutted'.

Just who is next to be 'lambasted'? But fortunately, dissenting voices continue..Tan Kin Lian, Leong Sze Shian, and the Internet fora (like this one) also have a busy field day 'slamming' Lim Swee say, 'lambasting' Mah BT, 'ridiculing' WKS, and any Minister who dares to raise his head. These days, even Old Fart is not spared. Any wonder Ah Loong is so quiet, like a church mouse?

 

[soikee]

My friends said Simon Cheong is creditable.

a) Good family background .

b) From well known Cheongs Tribe.

c) was director ( or something like that ) at
American Investment Bank : Credit Suisse etc...:p




$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Your friends know fuck all!

 

[STUCK_HERE]

Rebutt, reboot, restart, reshit, who cares man! Simon Cheong so rich, he sure to say govt is right, he is wrong.

 

[1sickpuppy II]

Now I ask the man sitting opposite me take the bllue pill and forever sleep in bliss not bothering what the hell is happening or take the red pill and face reality. I tell you I can bet 99% of the sinkies will take the blue.