International Schools Play A Part Too In Growth

So much talk about rising rentals that expatriates are feeling the pain. Now, finding a vacancy in an international school is another headache for expatriates with school-going children.

This issue has been highlighted months ago (even in Hong Kong), with the government releasing some premises to convert to international schools; and become talk of the town again when 10 foreign families queued at Tanjong Katong Primary School (a local school which is popular with expatriates) a few days prior to registration, only to know that there was only 1 vacancy left.

Some multinational companies are thinking twice about deploying staff with school-going children to Singapore. As foreign talent and expatriate numbers rise, from 798,000 to 875,500 last year, 40 international schools here are facing a growing crunch. The wait can be as long as 2 years.

Global Indian International School (GIIS) is looking for a third campus. The expansion will make GIIS the largest international school here. Originally started for overseas Indian children, it is now popular with other expatriates that its 3,900-strong cohort is a mosaic of 24 nationalities.

The problem has caused some foreigners to turn down job offers, while others have put off relocating here until they find a school.

* CNA-Schools , CNA-TKPS Winner , New Canadian Int'l Sch , MOE *

*****
Residential crunch, followed by office crunch, then hotel crunch, and now school crunch ... ...

As a parent who has gone thru' balloting for a place in a school, this thing can be vy vy vy stressful especially if it is a first-come-first-served system.
While I do encourage these expatriates to allow their kids to attend local schools (then all schools become 'international' schools), I do hope tt MOE could conduct balloting at Phase 3 so tt these families do not hv to queue for so many days ... waste of time, resources and heighten stress level.

Another interesting thing to know on hotel shortage: Golf Clubs' Hotel Rm .

Annuities, Do We Need It?

I find this article an interesting read, I've extracted a part here but do go to this link for the full story:

>>>
At a recent retirement workshop that I conducted, an interesting discussion arose. In discussing the role of life insurance in a person's financial life, I told the participants that life insurance is for the purpose of protecting against income loss for the family, during a person's income-producing years, should death occur. It should be an expense if nothing happens to you. As such, buying term insurance products that give nothing in return when they expire is the way to go. It is a highly affordable way for you to cover all your needs.
Then the objection came: "Won't I lose out if nothing happens to me and I get nothing back?"

I (then) explained that an annuity is an insurance policy that will pay you an income for as long as you live.
Another objection came: "Won't I lose out if I die too early?"

I was dumbfounded for a while. In the first case, why should you feel upset if you are healthy, live a long life and do not claim any proceeds from life insurance? And if you die too soon, and benefit from life insurance but "lose out" in your annuity, you are unhappy as well. We need to understand that we can't have the best of both worlds in many things in life.
<<<

* CNA-Annuities *

*****
Typical kiasu, kiasi & ai-pi-ai-qi (wan cheap, wan good) Singaporeans, but these traits aren't bad at times.

US Home Price Index

US Home Price Index (HPI) fell 3.2% to 183.89 last Q, fr the same period a yr ago; its worst decline in its 20yrs' history and the pace of decline accelerated fr 1.6% in 1st Q. This may indicate tt US housing slump tt began in late 2005 may worsen.

Inventories of homes rose 5.1% last mth, boosting the overhang of supply. The large inventory cum tighter lending standards hv hurt 2/3 of the US' home builders business.

2012 Top 10 Jobs

Innovation in an information-rich society will put a premium on skilled and semi-skilled workers, especially in computers, health care, science and technology. And there will be job openings aplenty in the trades as baby boomers retire.

Top 10 hot jobs of 2012:
(1) Organic food producers, retailers
(2) Computational biologists
(3) Parallel programmers
(4) Data technologists
(5) Simulation engineers
(6) Boomers companions, caretakers
(7) Genetic counselling
(8) Brain analysts
(9) Space tour guide
(10) Robot builders, tenders

* MSN-Future Jobs *

*****
Interesting ... ... Go to the site and read the jobs' details.
Of the 10, 2 are what I've been 'forecasting' to hv potential, ie organic thingy and ageing mkt. Organic vege really tastes nice but too expensive. Baby sitter gg to phase out and change to Elderly sitter soon. It wld be nice to combine a childcare centre + elderly care centre. Any investors???

Malaysia Property, Anyone?

Malaysian property market has been picking up due to several government measures to spur economic growth since last December. This year, the Government has waived real property gains tax (RPGT) and relax foreign ownership restrictions on residential properties priced over RM250k.

Analysts believe the low- to medium-priced property segment might be the next in line to receive a government boost in the form of incentives. They also foresee more tax incentives to revive interest in REITs (real estate investment trusts). Other possible incentives are: reduction of stamp duty, relaxation of foreign ownership of commercial properties, and restructuring of EPF depositors' accounts to allow more withdrawals for property purchases.

* The Star-Goodies *

*****
Guess my frens who hv invested in M'sia KL pty recently will be vy happy if these incentives come true.

Mortgage Crisis Forces Sale of German Bank

1st major European victim of US sub-prime mortgage (SPM) problems ... ...

Landesbank Sachsen Girozentrale (a state-run bank in eastern German state of Saxony) is being sold to a larger rival, Landesbank Baden-Wurttemberg. It is the 2nd German lender which was overwhelmed by sub-prime related losses, after another German bank, IKB Deutsche Industriebank, received $8 bil euro bailout last mth.

Sachsen LB's exposure was >$17 bil euro, more than 10x its core capital and more than 1/4 of its total assests.

* Telegraph-SPM *

*****
The scary thing is tt we dun hv a clear picture of CDO holdings (with sub-prime debt) by banks, fund mgrs, insurance companies, etc. The ripples of fear just spread and claim 'lives' ... ...

Top-up Loved Ones' CPF

The CPF scheme has been amended to provide more ways for family members to support one another financially, and allow a smooth and equitable distribution of CPF monies for divorcing couples. The CPF Act amendments were announced by Manpower Minister Dr Ng Eng Hen in Parliament on Monday.

(I) Family Members Top-Ups
Before:
1) Members can top-up accounts using cash only and not their CPF funds.
2) Allow top-ups to spouses'/siblings' accounts only if their age are >55yrs old.

Changes (wef Oct 2007, otherwise stated):
1) Members can top-up their siblings'/grandparents' retirement accounts from their own CPF accounts or in cash.
2) Tax relief of max $7k/yr will be given for (a) cash top-ups, and (b) sibling >=55yrs old, and (c) sibling's earning is <=$2k/yr (ie <=$166/mth).
3) Allow top-ups to spouses/siblings' special accounts below the age of 55 using CPF or cash.
This is to be used to provide a steady income stream during the recipients' retirement and cannot be withdrawn as a lump sum. (wef Jan 2007)

- 1 in 4 members aged 40-55 has hit 1.5x Min Sum.
[Note: Members need to hv 1.5x the prevailing Min Sum before they can top-up someone else's account]
- 1/3 of members who turned 62 last yr met their Min Sum (of $60k) when they were 55yrs in 1999.
[Note: Current Min Sum is $99.6k, and will raise in stages till $120k]

(II) Smooth & Equitable Division of CPF for Divorce
Before:
1) Ex-spouse has to wait till his/her ex-spouse (a) reaches 55yrs, and (b) meets the Min Sums in his Retirement and Medisave accounts, then will receive the funds (if granted a share).
2) CPF doesn't allow member, who's a male, to transfer property to the ex-spouse.

Changes (wef Oct 2007, otherwise stated):
1) Allow immediate transfer of CPF monies to ex-spouse's CPF account.
2) Allow immediate transfer of immovable property to ex-spouse. Shd the property be sold off later, the amount took fr CPF savings to buy the property will hv to be returned to CPF.
Note: The ex-spouse must be a Singapore citizen or permanent resident.

* In Parliament-Top-ups , In Parliament-Divorce , Keynote Address , CPF *

*****
Vy real ageing problem ... ... Me inactive now, tink my old age cld be bad *sigh*.

Jul Consumer Price Index

The Consumer Price Index (CPI) in July 07 rose by 2.1% over June 07. It rose much faster than expected as hike in the GST took effect.

Compared with the same month a year ago, the CPI in July 07 was higher by 2.6%.

* ChannelNewsAsia , Statistic-Jul CPI *

*****
In Aug, a nearby roti prata stall raised $0.10 for all his prata, regardless got egg or no egg. That worked out to be 8.3% incr for egg prata, and 16.6% incr for kosong prata.

New Homes Supply

URA has released statistics showing the supply of new homes up to year 2010. It seeks to calm the over-heated market and to assure prospective home buyers that there is sufficient supply in the pipeline. Short-term residential supply crunch has led to soaring rentals, which may erode Singapore’s competitiveness as an investment destination.

Expected Supply of Private Homes
Type of property	2007	2008	2009	2010
Total	3,899	6,579	15,846	16,727
Under construction	3,899	6,257	10,229	5,284
Planned	-	322	5,617	11,443
- 2yrs written permission	-	279	3,828	5,067
- 6mths provisional permission	-	43	1,789	6343
- Others (not confirmed)	-			33

Source of data: URA

* SISV-News 22 Aug , URA-2Q07 Statistic *

*****
2009 ... abt 2.5times more than 2008. Will it lead to over-supply?

Monetise HDB Flats

In his National Day Rally speech, PM Lee said that the government would try to 'narrow the income gap' through a host of new measures to make it more affordable for Singaporeans to own a flat, especially for the lower-income group.

The Government will increase the CPF Housing Grant to $30k, from the current $20k for the lower income group, and the household income ceiling will be raised from $3,000 to $4,000 to cover about half the households in Singapore.

The Ministry of National Development (MND) will also make 2 and 3-room HDB flats easier to monetise. To help the aged residents, HDB will buy back the remaining lease of their lease and leave flat owners with 30 years on the same flat. The payment will be in a lump sum upfront and monthly annuity payment. To qualify, the flat owners must be 62 years old or older.

* PM's Speech , SISV-News 22Aug , HDB-CPF Grant *

*****
Ageing is a vy real problem and pretty sad too when u see an estate without children's laughter & kids running about (now, pple r complaining kids running wild in shopping centres). Instead, u'll see elderly fainting on the streets & the ambulances zooming in and out. Pls keep fit!

Businessman can start to look into the ageing mkt.

IUP/MUP to NRP/HIP

Interim Upgrading Programme (IUP) for individual precints will soon be replaced by a new Neighbourhood Renewal Programme (NRP) that will combine two or more precints to deliver better upgrading plans and facilities. And a new Home Improvement Programme (HIP), for practical improvements within the flats will also replace the current Main Upgrading Programme (MUP).

MUP benefited older flat built before 1980. So far, 100,000 flats have already benefited from MUP. Another 100,000 will get to gain from the HIP. The HIP and NRP will be extended to flats built from 1981 to 1986.

Private housing estates can now access to the Community Improvement Project Committee (CIPC) funds which only HDB estates are allowed to use at the moment. They will not have to wait for Estate Upgrading Programme (EUP) which is open to estates >30 years.

EUP started in 2000, and about 23k homes out of 200k in 30 estates have been upgraded so far. $20m is set aside each year for EUP and the budget will increase by $5m-$10m each year.

* SISV-News 22Aug , HDB-NRP & HIP , MND-EUP *

*****
I'm pretty disappointed with my estate condition compared to the one just across the road which is run by another constituency ... why huh? Dun understand ... is it no competitor for the past yrs elections? My suggestions likely to go to LTA lah (1yr still no response), Sports Council lah, PA lah ... is it better to email directly to the MP & Minister instead???

Rental Index

IRAS has compiled a residential rental index which shows the rental price movements of private homes.

	Rental index		% change over previous Q
	First quarter 2007	Second quarter 2007	First quarter 2007	Second quarter 2007
All Residential	113.8	125.6	7.6	10.4
Detached	108.2	116.4	5.0	7.6
Semi-detached	110.1	118.0	4.0	7.2
Terrace	107.2	118.1	6.5	10.2
Non-landed property	115.0	127.6	8.1	11.0
Core central	120.3	134.7	7.6	12.0
Rest of central	114.4	125.8	9.8	10.0
Outside central	101.6	111.1	7.1	9.4

Source of data: URA

Rents of private apartment in Core Central region have risen by 12% which is the highest among all the three regions. The other two regions have also posted strong growth of 10% and 9.4% respectively.

* SISV-News 21Aug *

2Q07 Sub-sales %tage Increasing

Sub-sales are resale of projects before their completion, and the data is based on caveats lodged. Sub-sale figures tracked by caveats lodged, however, are not very accurate as ‘flipping’ of Option to Purchase (OTP) are not captured.

Total number of sub-sale transacted in the 2Q was 1,254, which was 9.7% of total sales.

	New sales			Sub-sale	Resale	Total	Sub-sale% of total
Period	Uncompl	Compl	Sub-total
1Q 07	4,565	218	4,783	749	4,645	10,177	7.4
2Q 07	4,820	309	5,129	1,254	6,514	12,897	9.7

Source of data: URA

Sub-sales index is to track how widespread speculation is. During 2Q96 property peak, sub-sales formed about 28% of total sales, and led to Government intervention that really cool down the market.

* SISV-News 21Aug *

2Q07 New Home Sales

Data of the new private home sales are based on options granted by Developers, and feedback to URA quarterly so tt it can publish the sale statistics for the public.

In 1Q07, the market was fuelled by the high-end segment as there were more transactions in the core central region where more upmarket condominium projects were sold. In contrast, in 2Q07, more sales were transacted outside the central area and this may suggest the recovery of the mass market sector.

New Private Home Sales
Uncompleted					Completed properties
Period	Total	Core central	Rest of central	Outside central
2005	7,790	3,226	2,617	1,947	1,165
2006	10,363	3,957	3,751	2,655	784
1Q 07	4,565	2,055	1,294	1,216	218
2Q 07	4,820	1,196	1,461	2,163	309

Source of data: URA

* SISV-News 21Aug *

ABC of URA Market Data

Private Homes Price Index
- Overall price movement of all private homes (landed & non-landed, excl en-bloc), based on caveats lodged.
- Providing a quick overview of market performance.

Non-landed Homes Price Index
- Breaks down to various regions, such as core central (D9, 10, 11, Downtown & Sentosa), central and outside central; and further categorizes into completed and uncompleted homes.
- Gives a more accurate picture of the market based on location, which is a key factor in prices.
- Uncompleted homes may indicate speculators or investors involvement.

Number of Sub-sale
- Refers to the resale of homes that have not obtained completion and it is based on the caveats lodged.
- Indication of speculative activity and how widespread it is.
[Note: In 2Q96 (property peak), sub-sales formed about 28% of all private home sale that led to Government's intervention.
This sub-sale number is, however, not a true reflection of speculative activity, as 'flipping' of options are not captured.]

Number of New Homes Sold
- Shows how many new homes (completed & uncompleted) are sold based on Developers' options granted.
- Breaks down to various regions.
- Indicates demand and confidence in residential market.

Number of Homes to be Completed
- Shows the supply of homes for the next few years, incl projects under construction, and with written/provisional permission to build.
- A clearer picture of residential supply.

Residential Rental Index
- Rental rates movements (compiled by IRAS).

About Sub-prime Mortgage

How a sub-prime mortgage become an investment instrument:

(1) Home Buyers
Poor credit histories Americans buy homes by paying higher interest rates, to compensate for greater risk of defaut.
(2) Mortgage Brokers
About 70% of the mortgages were initiated by hardly regulated home loan salesmen who reel in borrowers w/o regard for their need for loan or ability to repay it.
(3) Sub-prime Lenders and Banks
Sub-prime loan specialists sell the debt to big banks, which then sell to Wall Street banks.
(4) Mortgage-backed Securities
Sub-prime loans are pooled and repackaged into mortgage-backed security like bond, and offer a return fr interest paid by borrowers. Less risky bonds grant investors priority to repayments, while holders of more risky bonds will be the first to suffer losses fr defaults in the mortgage pool.
(5) Securities' Ratings
The bonds are then given credit rating. Given a large pool of mortgages, it is unlikely tt all borrowers will default at the same time. So less risky bonds are given AAA ratings, ie "risk-free".
(6) CDOs
The mortgages bonds are then re-packaged again, along with other types of bonds and debt instruments into Collateralised Debt Obligations (CDO), which are bought by banks, insurance companies, fund mgrs, etc. However, not all CDOs contain sub-prime debt.
CDOs may offer higher returns than bonds with the same rating. However, the chance of default is higher than corporate/govt bonds.
(7) Where they go to
(A) Equity: No direct impact. Stock mkt is hit bcos of fears over further deterioration of the sub-prime mortgage sector.
(B) Bond: Some may hv included CDOs and mortgage-backed securities in their portfolio.
(C) Balanced Funds: A mix of shares and bonds.
(D) Hedge Funds: Some unit trusts are invested in hedge funds and may hv exposure to CDO and mortgage-backed securities.
(E) Money Mkt: S&P found tt some money mkt funds n the US hv some exposure to mortgage-backed securities.

July Private Homes Prices

The number of properties sold in Jul was about 20% more than June's 1150, and 72 units were sold at >$4k psf which was more than 4.5x June figure of 16.

In July, homes selling at:
<$1k psf: 406 units (about 30%)
>$1k but <$2k psf: 601 units
>$2k but <$3k psf: 154 units
>$3k but <$4k psf: 145 units

July prices for some projects:

Projects	Location	# Sold	Price Range ($)
The Marq	Paterson Hill	2	4908 - 4978
The Orchard Residences	Orchard Turn	6	2808 - 4577
8 Napier	Napier Rd	1	3881
Residential Apt	River Valley Grove	3	3129 - 3299
CityVista Residences	Peck Hay Rd	16	2376 - 2874	(Median 2528)
One Shenton	Shenton Way	11	1767 - 2144	(Median 2007)
Icon	Gopeng St	5	1753 - 2144
The Rochester	North Buona Vista	365	905 - 1680	(Median 1274)
Botannia	West Coast Park	94	618 - 829	(Median 772)
Bluwaters II	Jln Loyang Besar	26	731 - 1146	(Median 754)
The Quartz	Buangkok Dr	19	554 - 749	(Median 3959)

ABC of HDB Market Statistics

Resale Price Index
- Overall price movement of resale HDB flats, based on resale prices by registration date.
- Reflects the general sentiment of the resale market.

Median Resale Prices
- A price that indicates half of the units are sold above the value, and the other half below the value.
- Break down by town and flat type.
- Gives a more accurate typical price of a flat.
[Note: To find out individual resale transaction, click here]

Median Cash-over-valuation (COV)
- The amount of cash that needs to be paid by buyer over and above the market valuation.
- Break down by town and flat type.
- Indication of premium that buyers are paying.
[Eg: Flat valuation is $200k. If (1) sold at $190k, then no COV payable, (2) sold at $250k, then COV payable is $50k in cash]

Number of Resale Applications
- Volume of transactions.
- Break down by flat type.
- Also reflects market sentiment.

Subletting Market Statistics
- Rental rates that landlords declared in HDB subletting application.
- Break down by town and flat type.

Number of Subletting Approvals
- Indicate the number of approved flats available.
- Break down by flat type.
[Note: Only sub-letting of whole flat requires HDB's approval]

* HDB-Statistics *