Source: Yahoo! News Singapore
LONDON (AFP) - - The US economy shrank by 0.5 percent in the third quarter, official data showed on Tuesday as Britain edged ever closer to a recession and the IMF's top economist warned of a second Great Depression.
The abrupt contraction of gross domestic product (GDP) in the world's largest economy, confirming a first estimate, was seen by analysts as marking the start of a steep downturn for the United States after GPD growth of 2.8 percent in the second quarter.
Britain's economy also shrank by 0.6 percent in the three months to September compared to the previous quarter, against a previous estimate of 0.5-percent contraction, the Office for National Statistics said.
Britain and the United States will be in recession if their economies contract again in the fourth quarter, according to the traditional definition of a recession as two consecutive quarters of negative economic growth.
The IMF's top economist, Olivier Blanchard, warned governments around the world should boost domestic demand in order to avoid a Great Depression similar to the downturn that shook the world in the 1930s.
"Consumer and business confidence indexes have never fallen so far since they began. The coming months will be very bad," Blanchard said in an interview with the French newspaper Le Monde.
"It is imperative to stifle this loss of confidence, to restart household consumption, if we want to prevent this recession developing into a Great Depression," he added.
New data out in France offered some respite from the gloom, however, showing that household consumption of manufactured goods -- a key growth indicator -- rallied 0.3 percent last month after slumping in October.
"It is a first small Christmas present for the French economy," said Alexander Law, an economist at the Xerfi research centre in Paris.
But in Italy, retail sales figures went down 0.3 percent in October.
Denmark's economy contracted 0.4 percent in the third quarter and the Dutch economy showed zero growth, official data showed. Finland's unemployment rate rose to 6.0 percent in November from 5.8 percent a month earlier.
Elsewhere in Europe, the Polish central bank cut its key lending rate by 75 basis points to 5.00 percent, following a further cut in interest rates in Hungary on Monday by half a percentage to 10.0 percent.
The European Central Bank issued some heartening pre-Christmas data showing that the eurozone's current account deficit narrowed to 6.4 billion euros (9.0 billion dollars) in October from 8.8 billion euros in September.
News of weakening growth sent the British pound sliding under 1.0550 euros, nearing a record low of 1.0463 reached last week, as dealers bet on more interest rate cuts from the Bank of England and forecast parity with the euro.
The dollar also drifted lower against the euro and the yen in muted trading conditions ahead of the Christmas holidays. In late morning trading, the euro firmed to 1.3959 dollars, from 1.3944 dollars in New York late on Monday.
European stocks rose in early afternoon trading after the announcement of US GDP figures, with the FTSE 100 index in London up 0.80 percent, the Frankfurt Dax up 0.89 percent and the CAC 40 in Paris up 0.51 percent.
Asian stocks closed mostly down, with the Hong Kong stock market shedding 2.8 percent and Shanghai sinking 4.55 percent as a smaller-than-expected Chinese interest rate cut failed to boost market sentiment.
Oil prices also fell further to below 40 dollars a barrel in Asian trade, with New York's main futures contract, light sweet crude for delivery in February, shedding eight cents to 39.83 dollars a barrel.
The contract had fallen to 39.91 dollars in New York on Monday.
Energy analysts were also keeping a close eye on a meeting of key world gas exporters in Moscow amid fears of a "gas OPEC" similar to the Vienna-based oil cartel that could raise natural gas prices.
In a keynote speech, Russian Prime Minister Vladimir Putin told the conference that the "era of cheap gas" for consumers was coming to an end because of the expense of developing new fields.
Venezuelan Energy Minister Rafael Ramirez said: "We see in this forum an opportunity to build a solid organisation, which has in its foundation the same principles that gave birth to OPEC."
Wednesday, December 24, 2008
Saturday, December 20, 2008
Reduction of Oil Production by OPEC
Source: OPEC
As annouced by OPEC, there's a reduction in oil prices, and it sees the current oil prices dropped. New York oil prices have dropped below $34 per barrel.
We will wait for the next surge in oil price.
As annouced by OPEC, there's a reduction in oil prices, and it sees the current oil prices dropped. New York oil prices have dropped below $34 per barrel.
We will wait for the next surge in oil price.
Friday, December 19, 2008
Singapore says 10,000 homes bought via deferred payment
Source: Yahoo! News
Singapore says 10,000 homes bought via deferred payment
Reuters - Friday, December 19
SINGAPORE, Dec 19 - Singapore said on Friday there were 10,450 uncompleted private homes purchased under the country's deferred payment scheme, revealing for the first time the potential number of homes that may be returned to developers.
About 4,560 of these homes are scheduled for completion next year while another 2,540 will be ready in 2010, the Urban Redevelopment Authority said in a statement.
Singapore introduced the deferred payment scheme in 1997 in a bid to boost the then-moribond property market. The scheme, which was withdrawn in 2007, allowed buyers to buy property under construction without lining up bank financing in advance so long as they made a downpayment of 10-20 percent.
The recent fall in Singapore home prices, coupled with the financial crisis that has made banks reluctant to lend, has led to concerns about a jump in the supply of unsold homes due to the failure of buyers to get loans.
"The data is provided to enable the public to make a better informed assessment of the private housing market," URA said.
Singapore says 10,000 homes bought via deferred payment
Reuters - Friday, December 19
SINGAPORE, Dec 19 - Singapore said on Friday there were 10,450 uncompleted private homes purchased under the country's deferred payment scheme, revealing for the first time the potential number of homes that may be returned to developers.
About 4,560 of these homes are scheduled for completion next year while another 2,540 will be ready in 2010, the Urban Redevelopment Authority said in a statement.
Singapore introduced the deferred payment scheme in 1997 in a bid to boost the then-moribond property market. The scheme, which was withdrawn in 2007, allowed buyers to buy property under construction without lining up bank financing in advance so long as they made a downpayment of 10-20 percent.
The recent fall in Singapore home prices, coupled with the financial crisis that has made banks reluctant to lend, has led to concerns about a jump in the supply of unsold homes due to the failure of buyers to get loans.
"The data is provided to enable the public to make a better informed assessment of the private housing market," URA said.
Thursday, December 18, 2008
World Bank head sees worldwide problem in 2009
Source: Yahoo! News Singapore
AFP - 50 minutes agoSINGAPORE, Dec 18, 2008 (AFP) - The president of the World Bank warned Thursday of a worldwide struggle in the first half of 2009 as a deepening global economic crisis hits Asian countries.
Robert Zoellick also cautioned against a return to trade protectionism that could worsen the crisis.
"I am afraid that the first six months of 2009 are going to be a problem worldwide, including in Asia and including in Southeast Asia," Zoellick told a news conference during a visit to Singapore.
The Bank said in a report last week that the Asia-Pacific region remained reasonably well-placed to weather the global slowdown but will see growth ease to 5.3 percent in 2009 from 7.0 percent this year.
It said the global economy would expand a mere 0.9 percent next year and world trade volume would fall 2.1 percent, the first drop in 26 years.
"In the discussions that I have had with people around the world, no one has a very good prediction for the length and depth of this crisis," Zoellick said.
Government monetary and fiscal policy, as well as open trade systems, will determine whether the situation can improve later next year, he said.
"Particularly I am concerned about the rising dangers of protectionism," he added, describing as "unfortunate" the difficulties encountered during the Doha Round of talks on a new global trade pact.
"The international system needs to stay on offence on trade because protectionist forces will raise their heads," he said.
The so-called Doha talks started at the end of 2001 in the Qatari capital. They aim to boost international commerce by removing trade barriers and subsidies, but a deal has proved elusive.
Developing countries, including China and India, want the industrialised world to scrap agricultural subsidies, while Western powers are seeking greater access for their products in emerging markets.
"Whatever parties can do to try to get the Doha Round back on track would be vitally important," Zoellick said later at a dialogue session with students from a local university.
"This financial and economic and unemployment problem is serious enough.
"If we start to trigger a round of protectionism, as you saw in the 1930s, it could deepen (the global crisis)."
Pascal Lamy, the head of the World Trade Organisation (WTO), last Friday scrapped plans to hold a ministerial meeting on the trade talks, citing the "unacceptably high" risk of failure and dashing hopes that the long-delayed global trade pact could be clinched this month.
The World Bank, which provides financial and technical assistance to developing countries, said last week that healthy growth in recent years had left major economies such as China in good shape to fight the global crisis with macroeconomic measures.
But it said "in the near term, downside risks are substantial" due to recessions in developed markets.
Zoellick, who was recently in China, said that country's leaders expected to see a decline in growth because of the global slowdown but that they were struck by the sharpness and the depth of the fall in exports.
The World Bank forecast 7.5 percent growth for China next year, which would be its slowest in nearly two decades.
Zoellick was in Singapore to sign a memorandum of understanding with the city-state to strengthen and expand collaboration on development assistance.
"Singapore and the World Bank Group intend to play a positive and growing role in helping countries tackle critical policy challenges especially in the area of urban management," said a statement from Singapore's foreign ministry
AFP - 50 minutes agoSINGAPORE, Dec 18, 2008 (AFP) - The president of the World Bank warned Thursday of a worldwide struggle in the first half of 2009 as a deepening global economic crisis hits Asian countries.
Robert Zoellick also cautioned against a return to trade protectionism that could worsen the crisis.
"I am afraid that the first six months of 2009 are going to be a problem worldwide, including in Asia and including in Southeast Asia," Zoellick told a news conference during a visit to Singapore.
The Bank said in a report last week that the Asia-Pacific region remained reasonably well-placed to weather the global slowdown but will see growth ease to 5.3 percent in 2009 from 7.0 percent this year.
It said the global economy would expand a mere 0.9 percent next year and world trade volume would fall 2.1 percent, the first drop in 26 years.
"In the discussions that I have had with people around the world, no one has a very good prediction for the length and depth of this crisis," Zoellick said.
Government monetary and fiscal policy, as well as open trade systems, will determine whether the situation can improve later next year, he said.
"Particularly I am concerned about the rising dangers of protectionism," he added, describing as "unfortunate" the difficulties encountered during the Doha Round of talks on a new global trade pact.
"The international system needs to stay on offence on trade because protectionist forces will raise their heads," he said.
The so-called Doha talks started at the end of 2001 in the Qatari capital. They aim to boost international commerce by removing trade barriers and subsidies, but a deal has proved elusive.
Developing countries, including China and India, want the industrialised world to scrap agricultural subsidies, while Western powers are seeking greater access for their products in emerging markets.
"Whatever parties can do to try to get the Doha Round back on track would be vitally important," Zoellick said later at a dialogue session with students from a local university.
"This financial and economic and unemployment problem is serious enough.
"If we start to trigger a round of protectionism, as you saw in the 1930s, it could deepen (the global crisis)."
Pascal Lamy, the head of the World Trade Organisation (WTO), last Friday scrapped plans to hold a ministerial meeting on the trade talks, citing the "unacceptably high" risk of failure and dashing hopes that the long-delayed global trade pact could be clinched this month.
The World Bank, which provides financial and technical assistance to developing countries, said last week that healthy growth in recent years had left major economies such as China in good shape to fight the global crisis with macroeconomic measures.
But it said "in the near term, downside risks are substantial" due to recessions in developed markets.
Zoellick, who was recently in China, said that country's leaders expected to see a decline in growth because of the global slowdown but that they were struck by the sharpness and the depth of the fall in exports.
The World Bank forecast 7.5 percent growth for China next year, which would be its slowest in nearly two decades.
Zoellick was in Singapore to sign a memorandum of understanding with the city-state to strengthen and expand collaboration on development assistance.
"Singapore and the World Bank Group intend to play a positive and growing role in helping countries tackle critical policy challenges especially in the area of urban management," said a statement from Singapore's foreign ministry
Monday, December 15, 2008
Laguna Park crosses 80% treshold
Source: Todayonline. 15 Dec 2008
Despite challenging situation of the current property market, owners of Laguna Park had consented the enbloc sales process, for a price of $1.8 million to $2.3 million for their units instead of the initial hope of $3 million last year.
The current asking price would amount to approximately $1.2 billion for the 667,000 square feet site with plot ratio 2.8, amounts to around $643/sqftppr.
Depite being one of the rare plots having superb seaview, with it's leasehold tenure, it may be difficult for developers to purchase and relaunch at a remarkable profit condisering high construction cost currently.
Despite challenging situation of the current property market, owners of Laguna Park had consented the enbloc sales process, for a price of $1.8 million to $2.3 million for their units instead of the initial hope of $3 million last year.
The current asking price would amount to approximately $1.2 billion for the 667,000 square feet site with plot ratio 2.8, amounts to around $643/sqftppr.
Depite being one of the rare plots having superb seaview, with it's leasehold tenure, it may be difficult for developers to purchase and relaunch at a remarkable profit condisering high construction cost currently.
Wednesday, December 10, 2008
Parent companies of some MNCs to cut jobs; staff in S’pore may be affected
Channel NewsAsia - Wednesday, December 10SINGAPORE: Many multinational corporations are planning to retrench workers in Asia due to the economic downturn. Among them are Sony Electronics and Nomura, a financial services group. It’s believed staff at their Singapore offices will be affected.
Sony’s Japan headquarters announced that it is cutting 8,000 jobs worldwide as demand for consumer electronic goods has slowed significantly.
Sony said its headquarters is now reviewing its operations in each country.
While there are no specific numbers available for Singapore, what’s clear is that Sony is cutting costs.
Reports have also said that Japan’s biggest brokerage Nomura is laying off 100 people in Asia this year, including some in Singapore.
It is said the positions will be in its equity operations in places like Hong Kong and Singapore.
Nomura said it’s evaluating business opportunities and is now making strategic decisions about resource allocation and employee numbers.
Singapore’s labour movement urged Sony and Nomura to justify the headcount cut.
Halimah Yacob, Deputy Secretary—General, NTUC, said: "What these two companies will have to do is to explain the circumstances under which these retrenchments are being carried out, that they have exhausted all other possibilities and not just merely say this is the headquarters’ instruction to them."
Madam Halimah doesn’t believe the latest retrenchments will trigger a snowball effect, prompting other MNCs to do the same.
She added: "Workers do look at the kind of employers they want to work with so when employers resort to retrenchments when there’s no necessity, then obviously when times are better and they need workers they’ll find it a lot harder to get workers."
Observers said it’s not entirely surprising that companies like those in the electronics and finance industries are resorting to retrenchments. But companies are once again reminded to implement and exhaust all the tripartite guidelines first to cut costs.
Some measures under the guidelines include introducing shorter work weeks and flexible work arrangements. — CNA/vm
Sony’s Japan headquarters announced that it is cutting 8,000 jobs worldwide as demand for consumer electronic goods has slowed significantly.
Sony said its headquarters is now reviewing its operations in each country.
While there are no specific numbers available for Singapore, what’s clear is that Sony is cutting costs.
Reports have also said that Japan’s biggest brokerage Nomura is laying off 100 people in Asia this year, including some in Singapore.
It is said the positions will be in its equity operations in places like Hong Kong and Singapore.
Nomura said it’s evaluating business opportunities and is now making strategic decisions about resource allocation and employee numbers.
Singapore’s labour movement urged Sony and Nomura to justify the headcount cut.
Halimah Yacob, Deputy Secretary—General, NTUC, said: "What these two companies will have to do is to explain the circumstances under which these retrenchments are being carried out, that they have exhausted all other possibilities and not just merely say this is the headquarters’ instruction to them."
Madam Halimah doesn’t believe the latest retrenchments will trigger a snowball effect, prompting other MNCs to do the same.
She added: "Workers do look at the kind of employers they want to work with so when employers resort to retrenchments when there’s no necessity, then obviously when times are better and they need workers they’ll find it a lot harder to get workers."
Observers said it’s not entirely surprising that companies like those in the electronics and finance industries are resorting to retrenchments. But companies are once again reminded to implement and exhaust all the tripartite guidelines first to cut costs.
Some measures under the guidelines include introducing shorter work weeks and flexible work arrangements. — CNA/vm
Saturday, December 6, 2008
Singapore may face years of slow growth after recession
Singapore may face years of slow growth after recession Reuters - Saturday, December 6By Neil Chatterjee and Kevin Lim
SINGAPORE, Dec 5 - Singapore's economy, already in recession, may shrink in 2009 and face slow growth for years to come, the country's prime minister said, as the export-dependent city-state is hit by the fallout from the world economic crisis.
Lee Hsien Loong, at a lunch hosted by Singapore's Foreign Correspondents Association, said it was not government policy to weaken its currency -- a move that could help exporters but hurt the country's standing as place for investment.
"Singapore must be prepared for several years of slow growth," he said. "Even the most pessismistic bears did not anticipate the consequences of the bubbles," Lee added, referring to U.S. subprime housing woes and global trade imbalances.
The central bank, which sets monetary policy by managing the Singapore dollar against a secret basket of currencies, in October switched from allowing a gradual rise in the currency to a neutral stance of zero appreciation.
Some commentators expect the central bank to ease policy further by letting the currency weaken ahead of its next scheduled review in April.
Lee, the son of Singapore's founding father and former Prime Minister Lee Kuan Yew, is facing his biggest test since taking office four years ago, with the country's top trading partners the United States and Europe in recession and growth in Asian neighbours slowing.
Lee said policies to boost the economy would take effect immediately after being announced in an expansionary January budget. The government would partly rely on construction to help growth with project costs coming down, he said.
"It makes sense for us to take advantage of that," Lee said. "The budget emphasis will be on jobs." He expects unemployment to rise, particularly in manufacturing, which accounts for about a quarter of the economy.
Last month, the government pledged to spend S$2.3 billion to help firms get credit and said it would run a larger budget deficit to support an economy that it said could shrink 1 percent in 2009 and at best would expand 2 percent.
BANKING SECRECY
The government is trying to diversify away from manufacturing into service industries such as tourism and finance.
Singapore's banks have not suffered huge writedowns on risky debts unlike peers in the United States and Europe, though top bank DBS Group said last month it would cut 900 jobs after suffering a 38 percent drop in quarterly profit.
Lee said Singapore may face political pressure from the European Union and the United States over its role as a financial centre for rich foreigners, following a landmark deal by offshore haven Liechtenstein with the United States to drop bank secrecy in cases of tax evasion.
"I expect Singapore to come under pressure too," he said in response to a question on whether pressure on countries like Liechtenstein and Switzerland will help private banks based in Singapore.
The government has previously denied suggestions that the country is a tax haven. It has strict bank secrecy laws and has been promoting itself as a rival financial centre to Hong Kong to attract banks such as UBS, Credit Suisse and Citigroup to manage money for rich clients.
SINGAPORE, Dec 5 - Singapore's economy, already in recession, may shrink in 2009 and face slow growth for years to come, the country's prime minister said, as the export-dependent city-state is hit by the fallout from the world economic crisis.
Lee Hsien Loong, at a lunch hosted by Singapore's Foreign Correspondents Association, said it was not government policy to weaken its currency -- a move that could help exporters but hurt the country's standing as place for investment.
"Singapore must be prepared for several years of slow growth," he said. "Even the most pessismistic bears did not anticipate the consequences of the bubbles," Lee added, referring to U.S. subprime housing woes and global trade imbalances.
The central bank, which sets monetary policy by managing the Singapore dollar against a secret basket of currencies, in October switched from allowing a gradual rise in the currency to a neutral stance of zero appreciation.
Some commentators expect the central bank to ease policy further by letting the currency weaken ahead of its next scheduled review in April.
Lee, the son of Singapore's founding father and former Prime Minister Lee Kuan Yew, is facing his biggest test since taking office four years ago, with the country's top trading partners the United States and Europe in recession and growth in Asian neighbours slowing.
Lee said policies to boost the economy would take effect immediately after being announced in an expansionary January budget. The government would partly rely on construction to help growth with project costs coming down, he said.
"It makes sense for us to take advantage of that," Lee said. "The budget emphasis will be on jobs." He expects unemployment to rise, particularly in manufacturing, which accounts for about a quarter of the economy.
Last month, the government pledged to spend S$2.3 billion to help firms get credit and said it would run a larger budget deficit to support an economy that it said could shrink 1 percent in 2009 and at best would expand 2 percent.
BANKING SECRECY
The government is trying to diversify away from manufacturing into service industries such as tourism and finance.
Singapore's banks have not suffered huge writedowns on risky debts unlike peers in the United States and Europe, though top bank DBS Group
Lee said Singapore may face political pressure from the European Union and the United States over its role as a financial centre for rich foreigners, following a landmark deal by offshore haven Liechtenstein with the United States to drop bank secrecy in cases of tax evasion.
"I expect Singapore to come under pressure too," he said in response to a question on whether pressure on countries like Liechtenstein and Switzerland will help private banks based in Singapore.
The government has previously denied suggestions that the country is a tax haven. It has strict bank secrecy laws and has been promoting itself as a rival financial centre to Hong Kong to attract banks such as UBS
Thursday, December 4, 2008
Singapore government released another 10 temporary dormitory sites for foreign workers
SINGAPORE : The National Development Ministry (MND) has on Wednesday released the details of another 10 temporary dormitory sites for foreign workers.
Source from Yahoo!Singapore, News
The 10 sites, comprising 3 vacant state buildings and 7 vacant state lands, will provide an additional 20,000 bed spaces.
The 3 state properties which will be converted into temporary dormitories are the former Queenstown Polyclinic at 51 Margaret Drive, the former CAAS office at 1801 Upper Changi Road North, and the existing CPG Corporation Airport Development Division at 1800 Upper Changi Road North.
The former Queenstown Polyclinic and the former CAAS office will house 150 construction workers each. MND said these two temporary dormitories will be ready in about 3 to 6 months.
After the CPG Airport branch is vacated in 3 to 6 months’ time, it will be tendered out for the development of a temporary dormitory for 800 construction workers.
The 7 state lands which can be developed into temporary dormitory sites are located in or near industrial estates. The sites are at Mandai Road, Old Choa Chu Kang Road, Hougang Avenue 3, Seletar West Farmway which is located in Jalan Kayu, Jurong Road and Kim Chuan Road.
Their leases have been kept to not more than 6 years.
MND said it has consulted the area’s Members of Parliament (MPs) and grassroots organisations in the past two months on the development of the sites into temporary dormitories.
It added that several measures will be put in place to minimise the inconveniences posed by the dormitory developments. These include requiring the dormitories to have adequate facilities for workers, appointing a liaison officer as a point of contact for the grassroots organisations, and conducting educational programmes to inform workers of the social norms and laws in Singapore.
The government is also engaging the MPs and grassroots leaders of existing areas with very high foreign worker populations to identify and implement appropriate measures.
The temporary dormitories are part of the government’s efforts to provide proper housing for foreign workers, while more purpose built dormitories come on stream over the next few years. — CNA /ls
Source from Yahoo!Singapore, News
The 10 sites, comprising 3 vacant state buildings and 7 vacant state lands, will provide an additional 20,000 bed spaces.
The 3 state properties which will be converted into temporary dormitories are the former Queenstown Polyclinic at 51 Margaret Drive, the former CAAS office at 1801 Upper Changi Road North, and the existing CPG Corporation Airport Development Division at 1800 Upper Changi Road North.
The former Queenstown Polyclinic and the former CAAS office will house 150 construction workers each. MND said these two temporary dormitories will be ready in about 3 to 6 months.
After the CPG Airport branch is vacated in 3 to 6 months’ time, it will be tendered out for the development of a temporary dormitory for 800 construction workers.
The 7 state lands which can be developed into temporary dormitory sites are located in or near industrial estates. The sites are at Mandai Road, Old Choa Chu Kang Road, Hougang Avenue 3, Seletar West Farmway which is located in Jalan Kayu, Jurong Road and Kim Chuan Road.
Their leases have been kept to not more than 6 years.
MND said it has consulted the area’s Members of Parliament (MPs) and grassroots organisations in the past two months on the development of the sites into temporary dormitories.
It added that several measures will be put in place to minimise the inconveniences posed by the dormitory developments. These include requiring the dormitories to have adequate facilities for workers, appointing a liaison officer as a point of contact for the grassroots organisations, and conducting educational programmes to inform workers of the social norms and laws in Singapore.
The government is also engaging the MPs and grassroots leaders of existing areas with very high foreign worker populations to identify and implement appropriate measures.
The temporary dormitories are part of the government’s efforts to provide proper housing for foreign workers, while more purpose built dormitories come on stream over the next few years. — CNA /ls
Wednesday, December 3, 2008
Most Expensive Small Towns in America
The Most Expensive Small Towns in America
By Manuel Baigorri and Amanda Zusman
From exclusive summer resorts to elite enclaves, here are communities where the values may be small-town but the valuations remain big
Editor's note: The results of this list were determined by locating the towns in the U.S. with the highest median home sale prices and the smallest year-round population per Metropolitan Statistical Area. All data provided by Zillow.com
By Manuel Baigorri and Amanda Zusman
From exclusive summer resorts to elite enclaves, here are communities where the values may be small-town but the valuations remain big
Editor's note: The results of this list were determined by locating the towns in the U.S. with the highest median home sale prices and the smallest year-round population per Metropolitan Statistical Area. All data provided by Zillow.com
Small Towns with Big Money
Small Towns with Big Money
By Prashant Gopal, Businessweek.com
Dec 1st, 2008
ARTICLE TOOLS: Email article Printable view IM article Save to del.icio.us Bookmark
From summer resorts to wealthy suburbs, a look at the most expensive small towns in the U.S.
Residents of America's most expensive small town get by without a chain store or even a traffic light. The town has one gas station, an elementary school, a community center, a general store, dairy and vegetable farms, and some restaurants and inns that open during the warm seasons.
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Median home value is $2.237 million in Chilmark, a small town on Martha's Vineyard, an island south of Cape Cod. The town is home to 953 year-round residents, but the population swells dramatically during the summer when the rich and famous-including Seinfeld creator Larry David and actor Ted Danson-settle in for the summer. Chilmark, which includes the 300-year-old fishing village of Menemsha, has only 1,700 homes, many of them expensive vacation properties, and is the second-least densely populated town on the island. Houses rarely go on sale here, but when they do prices are high. On Sept. 12 a buyer paid $13.8 million for eight acres with a nine-bedroom home on it. In July, another buyer paid $15 million for 27 acres of land near the town's beautiful Squibnocket Beach.
"I definitely think inventory has a lot to do with it," Pamela Bunker, Chilmark's assistant assessor, said of the home values. "People are asking for high, high prices because people don't have to sell. We have amazing water views here. And the three-acre zoning keeps it really rural."
The Selection Process
Businessweek.com worked with Zillow.com to come up with a list of the 32 smallest towns with the highest home values. We set a cap on population of 10,000 people, although most of the towns populations fall well below that. In fact, many have fewer than 1,000 residents. We also only selected one property per Metropolitan Statistical Area, a geographical designation used by the U.S. Census, because otherwise the list would have nearly entirely dominated by towns near New York, Los Angeles, and San Francisco. (We did, however, include more than one home from the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA because, frankly, it covers so much space that it seemed silly not to.)
Readers looking for certain towns may be disappointed not to find them on our list. Some, such as Jupiter Island, Fla., which is home to some of the most expensive homes in the country, has too large a population to qualify for our list. Others, such as Washington, Conn., were left off because Zillow.com didn't have enough data on them to come up with a median home price.
Besides high prices and low populations, what the towns on the list also have in common are great locations. Many of them such as, Chilmark, Stinson Beach, Calif., Water Mill in Southampton, N.Y., Block Island along Rhode Island's coast, and Haleiwa in Hawaii are known for their gorgeous beaches. Far Hills, N.J., is a beautiful New York suburb where you'll find large country estates, polo matches, and fox hunting. And the wealthy Chicago suburb of Kenilworth, which sits on Lake Michigan, is a tight-knit community with little room for new development.
Seasonal Resorts and Bedroom Communities
Yet these towns are not all alike. In fact, it would be quite easy to break them down into two separate categories: seasonal resorts and year-round communities. The former includes places like Chilmark and Water Mill, which chalk up their high property values to the influx of well-heeled summer people who are willing to pay top dollar for the pleasure of walking their beaches between Memorial Day and Labor Day. The latter includes Far Hills and Kenilworth, which are plush bedroom communities located a short distance from a major metropolis. The distinction is important, however, because many families looking for a place to settle may find Block Island, for example, a little inhospitable when February rolls around.
These are places with a restricted supply of real estate, much of which has been passed on from generation to generation in the same families. Residents want a small-town experience, and they are willing to pay higher taxes to keep it that way. These towns rarely have tax revenue from malls and office complexes to dip into.
"A lot of people in urban environments or fast-paced traveling environments... are looking for a lifestyle change, even if it's 48 hours or a couple weeks out of the year," said Paul Boomsma, president of LuxuryPorfolio.com, the high-end marketing arm for independent real estate brokers. "They want to go out on the front porch and all they want to hear is birds. It's a great way to have a complete recharge experience."
One of the best features of Clyde Hill, a small town just across Lake Washington from Seattle, is its location. The town has two commercial areas: one is a gas station and the second is a coffee shop. But residents don't have to go far for action.
"We're across the bridge from Seattle and adjacent to the booming downtown of Bellevue," city administrator Mitch Wasserman said. "And you're able to take advantage of gorgeous vistas of Mount Rainier."
The question remains whether these places will continue to take advantage of their buoyant property values into 2009. While it's true that most of these communities have relatively few homes, and commensurately small turnover, what is fair to say is that by this time next year the list could be completely different. The reason is that inclusion is reflective of sales. If homes fail to sell, or prices come down, the town on this list may well be replaced by others next year. All it takes is one really big sale to change the results.
Kenilworth, Ill.
Chicago-Naperville-Joliet, IL-IN-WI MSA
Median home sales price: $1,368,912
Population: 2,422
Median household income: $200,000
Kenilworth has a reputation for being one of the wealthiest communities in the Midwest. It is located approximately 17 miles north of downtown Chicago.
Water Mill, N.Y.
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA
Median home sales price: $2,488,987
Population: 1,872
Median household income: $84,400
Settled in 1644 on the east end of New York's Long Island, Water Mill may be part of the town of Southampton but it lacks its neighbors snooty airs and prides itself on being more laid back, if not more expensive. While it may not be the quaint little village it had once been, it still boasts one of the best farm stands in the area--the Green Thumb--and is only a short bike ride from Flying Point Beach.
Haleiwa, Hawaii
Honolulu, HI MSA
Median home sale price: $898,538
Population: 2,226
Median household income: $39,643
This historic town in the North Shore of Hawaii offer great beaches. During the summer, the Haleiwa Arts Festival features art demonstrations and live entertainment.
Far Hills, N.J.
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA
Median home sales price: $1,071,438
Population: 928
Median household income: $112,817
One of the wealthiest suburbs of Manhattan, Far Hills is notable for its horse farms, rolling hills, elegant mansions, and Old Money.
It is also home to several fun attractions, including the Leonard J. Buck Garden, a 33-acre public botanical garden; the Natirar, a 491-acre estate once owned by Mohammed VI, King of Morocco; and the headquarters of the United States Golf Assn.
Stinson Beach, Calif.
San Francisco-Oakland-Fremont, CA MSA
Median home sale price: $1,651,041
Population: 780
Median household income: $87,679
Stinson Beach is known for being a prime surfing location with its long shore. It is located about 30 minutes from the Golden Gate Bridge and is a popular day trip for San Franciscans.
Prices of Chilmark, MA
By Prashant Gopal, Businessweek.com
Dec 1st, 2008
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From summer resorts to wealthy suburbs, a look at the most expensive small towns in the U.S.
Residents of America's most expensive small town get by without a chain store or even a traffic light. The town has one gas station, an elementary school, a community center, a general store, dairy and vegetable farms, and some restaurants and inns that open during the warm seasons.
More from BusinessWeek.com
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Median home value is $2.237 million in Chilmark, a small town on Martha's Vineyard, an island south of Cape Cod. The town is home to 953 year-round residents, but the population swells dramatically during the summer when the rich and famous-including Seinfeld creator Larry David and actor Ted Danson-settle in for the summer. Chilmark, which includes the 300-year-old fishing village of Menemsha, has only 1,700 homes, many of them expensive vacation properties, and is the second-least densely populated town on the island. Houses rarely go on sale here, but when they do prices are high. On Sept. 12 a buyer paid $13.8 million for eight acres with a nine-bedroom home on it. In July, another buyer paid $15 million for 27 acres of land near the town's beautiful Squibnocket Beach.
"I definitely think inventory has a lot to do with it," Pamela Bunker, Chilmark's assistant assessor, said of the home values. "People are asking for high, high prices because people don't have to sell. We have amazing water views here. And the three-acre zoning keeps it really rural."
The Selection Process
Businessweek.com worked with Zillow.com to come up with a list of the 32 smallest towns with the highest home values. We set a cap on population of 10,000 people, although most of the towns populations fall well below that. In fact, many have fewer than 1,000 residents. We also only selected one property per Metropolitan Statistical Area, a geographical designation used by the U.S. Census, because otherwise the list would have nearly entirely dominated by towns near New York, Los Angeles, and San Francisco. (We did, however, include more than one home from the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA because, frankly, it covers so much space that it seemed silly not to.)
Readers looking for certain towns may be disappointed not to find them on our list. Some, such as Jupiter Island, Fla., which is home to some of the most expensive homes in the country, has too large a population to qualify for our list. Others, such as Washington, Conn., were left off because Zillow.com didn't have enough data on them to come up with a median home price.
Besides high prices and low populations, what the towns on the list also have in common are great locations. Many of them such as, Chilmark, Stinson Beach, Calif., Water Mill in Southampton, N.Y., Block Island along Rhode Island's coast, and Haleiwa in Hawaii are known for their gorgeous beaches. Far Hills, N.J., is a beautiful New York suburb where you'll find large country estates, polo matches, and fox hunting. And the wealthy Chicago suburb of Kenilworth, which sits on Lake Michigan, is a tight-knit community with little room for new development.
Seasonal Resorts and Bedroom Communities
Yet these towns are not all alike. In fact, it would be quite easy to break them down into two separate categories: seasonal resorts and year-round communities. The former includes places like Chilmark and Water Mill, which chalk up their high property values to the influx of well-heeled summer people who are willing to pay top dollar for the pleasure of walking their beaches between Memorial Day and Labor Day. The latter includes Far Hills and Kenilworth, which are plush bedroom communities located a short distance from a major metropolis. The distinction is important, however, because many families looking for a place to settle may find Block Island, for example, a little inhospitable when February rolls around.
These are places with a restricted supply of real estate, much of which has been passed on from generation to generation in the same families. Residents want a small-town experience, and they are willing to pay higher taxes to keep it that way. These towns rarely have tax revenue from malls and office complexes to dip into.
"A lot of people in urban environments or fast-paced traveling environments... are looking for a lifestyle change, even if it's 48 hours or a couple weeks out of the year," said Paul Boomsma, president of LuxuryPorfolio.com, the high-end marketing arm for independent real estate brokers. "They want to go out on the front porch and all they want to hear is birds. It's a great way to have a complete recharge experience."
One of the best features of Clyde Hill, a small town just across Lake Washington from Seattle, is its location. The town has two commercial areas: one is a gas station and the second is a coffee shop. But residents don't have to go far for action.
"We're across the bridge from Seattle and adjacent to the booming downtown of Bellevue," city administrator Mitch Wasserman said. "And you're able to take advantage of gorgeous vistas of Mount Rainier."
The question remains whether these places will continue to take advantage of their buoyant property values into 2009. While it's true that most of these communities have relatively few homes, and commensurately small turnover, what is fair to say is that by this time next year the list could be completely different. The reason is that inclusion is reflective of sales. If homes fail to sell, or prices come down, the town on this list may well be replaced by others next year. All it takes is one really big sale to change the results.
Kenilworth, Ill.
Chicago-Naperville-Joliet, IL-IN-WI MSA
Median home sales price: $1,368,912
Population: 2,422
Median household income: $200,000
Kenilworth has a reputation for being one of the wealthiest communities in the Midwest. It is located approximately 17 miles north of downtown Chicago.
Water Mill, N.Y.
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA
Median home sales price: $2,488,987
Population: 1,872
Median household income: $84,400
Settled in 1644 on the east end of New York's Long Island, Water Mill may be part of the town of Southampton but it lacks its neighbors snooty airs and prides itself on being more laid back, if not more expensive. While it may not be the quaint little village it had once been, it still boasts one of the best farm stands in the area--the Green Thumb--and is only a short bike ride from Flying Point Beach.
Haleiwa, Hawaii
Honolulu, HI MSA
Median home sale price: $898,538
Population: 2,226
Median household income: $39,643
This historic town in the North Shore of Hawaii offer great beaches. During the summer, the Haleiwa Arts Festival features art demonstrations and live entertainment.
Far Hills, N.J.
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA
Median home sales price: $1,071,438
Population: 928
Median household income: $112,817
One of the wealthiest suburbs of Manhattan, Far Hills is notable for its horse farms, rolling hills, elegant mansions, and Old Money.
It is also home to several fun attractions, including the Leonard J. Buck Garden, a 33-acre public botanical garden; the Natirar, a 491-acre estate once owned by Mohammed VI, King of Morocco; and the headquarters of the United States Golf Assn.
Stinson Beach, Calif.
San Francisco-Oakland-Fremont, CA MSA
Median home sale price: $1,651,041
Population: 780
Median household income: $87,679
Stinson Beach is known for being a prime surfing location with its long shore. It is located about 30 minutes from the Golden Gate Bridge and is a popular day trip for San Franciscans.
Prices of Chilmark, MA
CapitaLand to cut staff salaries between 3-20 pct
Source: Yahoo news.singapore
Reuters - 2 hours 8 minutes agoSINGAPORE, Dec 3 - Southeast Asia's largest developer, CapitaLand, said on Wednesday it will cut staff pay between three to 20 percent in light of a slowing domestic economy.
CapitaLand said in a statement that the firm-wide measures will affect mostly management and executive level employees, with its chief executive, Liew Mun Leong, bearing the maximum cut of 20 percent.
The cuts will take effect in January 2009.
"We felt that the proactive measures demonstrate the Groups disciplined capital management and prudence during these global financial and economic uncertainties," Liew said.
Some Singapore firms have started laying off staff and cutting salaries in light of the tough economic conditions. State investor Temasek Holdings [TEM.UL] said last month it will cut staff pay between 15 to 25 percent while DBS Group and Neptune Orient Lines said they will be cutting jobs.
Reuters - 2 hours 8 minutes agoSINGAPORE, Dec 3 - Southeast Asia's largest developer, CapitaLand
CapitaLand said in a statement that the firm-wide measures will affect mostly management and executive level employees, with its chief executive, Liew Mun Leong, bearing the maximum cut of 20 percent.
The cuts will take effect in January 2009.
"We felt that the proactive measures demonstrate the Groups disciplined capital management and prudence during these global financial and economic uncertainties," Liew said.
Some Singapore firms have started laying off staff and cutting salaries in light of the tough economic conditions. State investor Temasek Holdings [TEM.UL] said last month it will cut staff pay between 15 to 25 percent while DBS Group
Saturday, November 8, 2008
Is the Sands casino in time?
While Las Vegas Sands Corp need to raise new capital to keep lenders at bay, our DBS bank indicates no problems with the marina sands project.
Wednesday, October 29, 2008
Singapore's economy remains weak
Quoted from Yahoo!
SINGAPORE, Oct 28, 2008 (AFP) - Singapore's economy, which is already in a technical recession, will remain weak in 2009 on projections the global economic outlook will deteriorate further, the central bank said Tuesday.
As a financial crisis evolves to impact economic activity worldwide, the city-state is likely to be hammered given its heavy exposure to external demand, the Monetary Authority (MAS) said in its Macro Economic Review.
"Looking ahead, the outlook for the global economy has deteriorated amidst heightened risk aversion and deleveraging in the financial sector," MAS said.
As a small and open trading economy, Singapore is vulnerable to any downturn in its major export markets such as the United States, Europe, China, India and Japan.
"The risks to external demand conditions continue to be on the downside, and a more severe global slowdown cannot be discounted," the MAS warned.
"Taking all these factors into account GDP growth is expected to be around 3.0 percent in 2008, and the economy will continue to grow below its potential rate into 2009," the MAS said.
Prospects for a recovery late next year hinge on the performance of key global economies, it said.
Singapore this month cut its economic growth forecast for 2008 to 3.0 percent from between 4.0 and 5.0 percent after the economy slipped into a technical recession, described as two consecutive quarters of negative growth.
Real gross domestic product (GDP) declined by 6.3 percent in the third quarter after contracting 5.7 percent in the previous quarter, according to preliminary government data.
The MAS said Singapore's financial sector will suffer from a direct impact, while weakening consumer sentiment will affect retail trade and the property market.
Other segments of the econonomy like manufacturing and tourism will suffer from falling external demand, it said.
-----
Quoted from Yahoo!
SINGAPORE, Oct 28 - Singapore's economy will grow below a potential rate of 4-6 percent in 2009 as the impact from a global financial crisis spreads across the whole economy and drags on previously resilient sectors such as manufacturing, the central bank said.
The Monetary Authority of Singapore said in its twice-yearly macroeconomic review report on Tuesday that the risks faced by Singapore's trade-dependent economy had shifted to slowing growth from rising prices, because the economic downturn has helped tame inflation.
It said it was ready to dampen excess volatility in Singapore's nominal effective exchange rate band, which it uses to set monetary policy by adjusting the strength of the Singapore dollar against a basket of currencies.
It said it had also temporarily increased the level of liquidity in the banking system.
"Growth will likely remain below trend in 2009," the central bank said on Tuesday. "Concomitantly, external and domestic inflationary pressures are likely to ease."
The government has said previously that the potential trend growth in the medium term is between 4 to 6 percent.
The central bank said prospects of Singapore's economy recovering in the latter half of 2009 will depend significantly on growth in the United States, Europe, Japan, and other regional economies.
Singapore's economy fell into a recession in the July-to-September period, the country's first recession since 2002, as manufacturing activity and exports slumped.
The central bank said Singapore's economy is expected to grow about 3 percent this year, with inflation hitting 6-7 percent in 2008 before easing to between 2.5-3.5 percent in 2009.
However, the central bank warned it will take time for the decline in prices to be reflected in the consumer price index.
"Headline inflation rates could be sticky downwards for a while as the prices of some goods and services continue to react to past increases," it said.
The central bank said Singapore's economy appeared to be experiencing the "second phase of the impact from global shocks".
"There are emerging signs that the adverse effects had spread from the vulnerable industries to segments that had previously been considered relatively resilient."
The recession prompted Singapore's central bank to ease monetary policy in October for the first time since 2003.
The central bank said on Tuesday it loosened policy in October because of "dissipating inflationary pressures and increased downside risks to growth".
SINGAPORE, Oct 28, 2008 (AFP) - Singapore's economy, which is already in a technical recession, will remain weak in 2009 on projections the global economic outlook will deteriorate further, the central bank said Tuesday.
As a financial crisis evolves to impact economic activity worldwide, the city-state is likely to be hammered given its heavy exposure to external demand, the Monetary Authority (MAS) said in its Macro Economic Review.
"Looking ahead, the outlook for the global economy has deteriorated amidst heightened risk aversion and deleveraging in the financial sector," MAS said.
As a small and open trading economy, Singapore is vulnerable to any downturn in its major export markets such as the United States, Europe, China, India and Japan.
"The risks to external demand conditions continue to be on the downside, and a more severe global slowdown cannot be discounted," the MAS warned.
"Taking all these factors into account GDP growth is expected to be around 3.0 percent in 2008, and the economy will continue to grow below its potential rate into 2009," the MAS said.
Prospects for a recovery late next year hinge on the performance of key global economies, it said.
Singapore this month cut its economic growth forecast for 2008 to 3.0 percent from between 4.0 and 5.0 percent after the economy slipped into a technical recession, described as two consecutive quarters of negative growth.
Real gross domestic product (GDP) declined by 6.3 percent in the third quarter after contracting 5.7 percent in the previous quarter, according to preliminary government data.
The MAS said Singapore's financial sector will suffer from a direct impact, while weakening consumer sentiment will affect retail trade and the property market.
Other segments of the econonomy like manufacturing and tourism will suffer from falling external demand, it said.
-----
Quoted from Yahoo!
SINGAPORE, Oct 28 - Singapore's economy will grow below a potential rate of 4-6 percent in 2009 as the impact from a global financial crisis spreads across the whole economy and drags on previously resilient sectors such as manufacturing, the central bank said.
The Monetary Authority of Singapore said in its twice-yearly macroeconomic review report on Tuesday that the risks faced by Singapore's trade-dependent economy had shifted to slowing growth from rising prices, because the economic downturn has helped tame inflation.
It said it was ready to dampen excess volatility in Singapore's nominal effective exchange rate band, which it uses to set monetary policy by adjusting the strength of the Singapore dollar
It said it had also temporarily increased the level of liquidity in the banking system.
"Growth will likely remain below trend in 2009," the central bank said on Tuesday. "Concomitantly, external and domestic inflationary pressures are likely to ease."
The government has said previously that the potential trend growth in the medium term is between 4 to 6 percent.
The central bank said prospects of Singapore's economy recovering in the latter half of 2009 will depend significantly on growth in the United States, Europe, Japan, and other regional economies.
Singapore's economy fell into a recession in the July-to-September period, the country's first recession since 2002, as manufacturing activity and exports slumped.
The central bank said Singapore's economy is expected to grow about 3 percent this year, with inflation hitting 6-7 percent in 2008 before easing to between 2.5-3.5 percent in 2009.
However, the central bank warned it will take time for the decline in prices to be reflected in the consumer price index.
"Headline inflation rates could be sticky downwards for a while as the prices of some goods and services continue to react to past increases," it said.
The central bank said Singapore's economy appeared to be experiencing the "second phase of the impact from global shocks".
"There are emerging signs that the adverse effects had spread from the vulnerable industries to segments that had previously been considered relatively resilient."
The recession prompted Singapore's central bank to ease monetary policy in October for the first time since 2003.
The central bank said on Tuesday it loosened policy in October because of "dissipating inflationary pressures and increased downside risks to growth".
Tuesday, October 14, 2008
Temasek's Mapletree to build Vietnam business park
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Temasek's Mapletree to build Vietnam business park
SINGAPORE, Oct 14 - Mapletree, the real estate arm of Singapore sovereign wealth fund Temasek Holdings [TEM.UL], said on Tuesday it has signed an agreement to develop a $400 million business park in Vietnam.
The 75-hectare business park, in Vietnam's Binh Duong province, will be built in phases starting from 2009, Mapletree said in a statement.
The deal brings its total investments in the Southeast Asian country to $700 million, it added.
Mapletree said a 68-hectare logistics park it is also building in Binh Duong, near Ho Chi Minh City, has already signed up six customers ahead of its completion in November 2008.
Quoted from Yahoo. news
The province of Binh Duong in Vietnam is one of the faster developing province is southern Vietnam which had attracted a US$1 billion investment in healthcare and education.
Singapore Property Weekly Market Wrap: Week 42 - Oct 14, 2008
Quoted from: "Singapore Property Weekly Market Wrap: Week 42 - Oct 14, 2008 "
Gomes Candice Armindo
URA and DTZ Data Capture Trend in Decreasing Private Property Prices
Real estate adviser DTZ has reported that prices of non-landed private residential properties have dropped as suggested by data collected in the 3Q 2008. Areas worst hit have been said to be prime districts that have been struck by a 4.2% quarter on quarter price drop. ( Yap 2008 )
URA data has captured similar trends but of differing magnitudes. URA has estimated that Core Central residential properties have slipped by 2%. The Rest of Central regions similarly reflected price reductions of 2.1%. However not all property segments have exprienced drops as prices of property situated in the Outside Central Region residential have increased by a marginal 0.1%. ( Yap 2008 )
Further reductions in the private residential market are expected to ensue as the US financial crisis reverberates throughout the Asian region. Its impacts have already been felt with regards to private residential launches. The 3Q of 2008 only saw the launch of small boutique projects and the sale of 320 units in August. ( Yap 2008 )
Tenants Face Five Year Ban Buying/Renting HDB Flats if Caught Illegal-Subletting
2008 hit a new record for the number of tenants caught illegal-subletting their rental flats. 147 rental flats were discovered to have been illegally sublet this year, which is a stark comparison to the meager 20 that were indentified in 2005 and 2006. Many of the flats have been let out to foreign workers or students from Malaysia, China and India. ( Cheam 2008 )
HDB has reiterated that tenants caught illegally renting out their flats will be liable to losing them. Tenants will also be slapped with a five year ban on renting or buying HDB property. ( Cheam 2008 )
HDB Launches 683 New Flats, Application Deadline Thursday 16th October
HDB had recently launched 683 flats for sale of which 288 are in Sengkang, 153 in Punggol, 77 in Jurong West and the rest spread across various other estates. The number of applications for the 683 flats was once again overwhelming; The HDB website registering a total number of 2,626 applications for the three room premium to executive type flats by 5pm, the day of the launch. Prices for the units have been said to range from $160,000 for a four room flat in Woodlands to $565,000 for five room flats in Bukit Merah. ( Straits Times 2008 )
Households with gross monthly incomes of up to $8,000 are eligible to apply for HDB flats. Applications are to be submitted by the HDB website, www. hdb.gov.sg by Thursday 16th of October. ( Straits Times 2008 )
HDB also plans to launch an additional 8,400 Built-To-Order flats later this year. ( Straits Times 2008 )
Experts Advice Home Owners to Opt for Fixed Rate Home Loans
Market volatilities have made home buyers think twice about the type of home loans they wish to take up. Sibor-linked loans entail paying interest rates in relation to the Interbank Offering Rate. This implies that monthly mortgage installments can be high or low, depending on Sibor rates moving upward or downward respectively. Fixed rate home loans on the other hand entail paying a fixed monthly mortgage installment. However, consumers opting for the convenience of fixed rate loans have to pay hefty premiums. ( Teo 2008 )
As of this year, Sibor has fluctuated significantly. In August, it stood at 1%, in September it took on a value of 2.23% and has now dropped to 1.5521%. Such fluctuations are serving as an impetus for many home owners to eschew variable rate loans. Experts too are suggesting that risk-adverse consumers refrain from opting for short-term variable rate loans as the market is highly unstable and unpredictable at this point in time. ( Teo 2008 )
There are of course individuals who contest such advice. Mr Leong Sze Hian, president of the Society of Financial Service Professionals has expressed his belief that interest rates tend to drop amid a recession. Expressing a converse sentiment is Alvin Liew, economist at Standard Chartered. He supports the argument that Sibor will rise amid the recession. Morgan Stanley Research on the other hand has indicated that Sibor rates will stay at 2% and reach almost 3% by next year end. ( Teo 2008 )
Consumers facing indecision on Sibor linked mortgages can also choose to look at CPF Ordinary Account (OA) rate pegged home loans. CPF OA rates have remained at 2.5% since July 1999.
References
Cheam, J 2008, Five times more rental flats recovered - 147 units seized from tenants who made profit from illegal sub-letting, Straits Times, The ( Singapore ), October 6
Straits Times 2008, HDB offers 683 new flats, Straits Times, The ( Singapore ), October 11
Teo, J 2008, Finding best home loan as rates see-saw - Home owners may want to lock in longer-term interest rate to avoid any volatility ahead, say experts , Sunday Times, The ( Singapore ) - October 12, 2008
Yap, E 2008, Prime non-landed home prices fall 4.2% in Q3, Business Times, The ( Singapore ), October 8
Gomes Candice Armindo
URA and DTZ Data Capture Trend in Decreasing Private Property Prices
Real estate adviser DTZ has reported that prices of non-landed private residential properties have dropped as suggested by data collected in the 3Q 2008. Areas worst hit have been said to be prime districts that have been struck by a 4.2% quarter on quarter price drop. ( Yap 2008 )
URA data has captured similar trends but of differing magnitudes. URA has estimated that Core Central residential properties have slipped by 2%. The Rest of Central regions similarly reflected price reductions of 2.1%. However not all property segments have exprienced drops as prices of property situated in the Outside Central Region residential have increased by a marginal 0.1%. ( Yap 2008 )
Further reductions in the private residential market are expected to ensue as the US financial crisis reverberates throughout the Asian region. Its impacts have already been felt with regards to private residential launches. The 3Q of 2008 only saw the launch of small boutique projects and the sale of 320 units in August. ( Yap 2008 )
Tenants Face Five Year Ban Buying/Renting HDB Flats if Caught Illegal-Subletting
2008 hit a new record for the number of tenants caught illegal-subletting their rental flats. 147 rental flats were discovered to have been illegally sublet this year, which is a stark comparison to the meager 20 that were indentified in 2005 and 2006. Many of the flats have been let out to foreign workers or students from Malaysia, China and India. ( Cheam 2008 )
HDB has reiterated that tenants caught illegally renting out their flats will be liable to losing them. Tenants will also be slapped with a five year ban on renting or buying HDB property. ( Cheam 2008 )
HDB Launches 683 New Flats, Application Deadline Thursday 16th October
HDB had recently launched 683 flats for sale of which 288 are in Sengkang, 153 in Punggol, 77 in Jurong West and the rest spread across various other estates. The number of applications for the 683 flats was once again overwhelming; The HDB website registering a total number of 2,626 applications for the three room premium to executive type flats by 5pm, the day of the launch. Prices for the units have been said to range from $160,000 for a four room flat in Woodlands to $565,000 for five room flats in Bukit Merah. ( Straits Times 2008 )
Households with gross monthly incomes of up to $8,000 are eligible to apply for HDB flats. Applications are to be submitted by the HDB website, www. hdb.gov.sg by Thursday 16th of October. ( Straits Times 2008 )
HDB also plans to launch an additional 8,400 Built-To-Order flats later this year. ( Straits Times 2008 )
Experts Advice Home Owners to Opt for Fixed Rate Home Loans
Market volatilities have made home buyers think twice about the type of home loans they wish to take up. Sibor-linked loans entail paying interest rates in relation to the Interbank Offering Rate. This implies that monthly mortgage installments can be high or low, depending on Sibor rates moving upward or downward respectively. Fixed rate home loans on the other hand entail paying a fixed monthly mortgage installment. However, consumers opting for the convenience of fixed rate loans have to pay hefty premiums. ( Teo 2008 )
As of this year, Sibor has fluctuated significantly. In August, it stood at 1%, in September it took on a value of 2.23% and has now dropped to 1.5521%. Such fluctuations are serving as an impetus for many home owners to eschew variable rate loans. Experts too are suggesting that risk-adverse consumers refrain from opting for short-term variable rate loans as the market is highly unstable and unpredictable at this point in time. ( Teo 2008 )
There are of course individuals who contest such advice. Mr Leong Sze Hian, president of the Society of Financial Service Professionals has expressed his belief that interest rates tend to drop amid a recession. Expressing a converse sentiment is Alvin Liew, economist at Standard Chartered. He supports the argument that Sibor will rise amid the recession. Morgan Stanley Research on the other hand has indicated that Sibor rates will stay at 2% and reach almost 3% by next year end. ( Teo 2008 )
Consumers facing indecision on Sibor linked mortgages can also choose to look at CPF Ordinary Account (OA) rate pegged home loans. CPF OA rates have remained at 2.5% since July 1999.
References
Cheam, J 2008, Five times more rental flats recovered - 147 units seized from tenants who made profit from illegal sub-letting, Straits Times, The ( Singapore ), October 6
Straits Times 2008, HDB offers 683 new flats, Straits Times, The ( Singapore ), October 11
Teo, J 2008, Finding best home loan as rates see-saw - Home owners may want to lock in longer-term interest rate to avoid any volatility ahead, say experts , Sunday Times, The ( Singapore ) - October 12, 2008
Yap, E 2008, Prime non-landed home prices fall 4.2% in Q3, Business Times, The ( Singapore ), October 8
Europe leaders to unveil half-trillion-euro bank rescue
Europe leaders to unveil half-trillion-euro bank rescue
BERLIN (AFP) - Governments in Berlin, Paris and Rome were Monday to announce more than half a trillion euros in rescue funds for Europe's stumbling banking sector, as each puts a price tag on a joint bail-out plan.
Leaders of the 15-country eurozone single currency bloc, following the lead of Europe's financial giant Britain, agreed Sunday on a high-stakes joint bid to pull the world financial system back from the brink of collapse.
Stock markets in London, Paris, Amsterdam, Milan and Frankfurt, reeling from their blackest week since the crash of 1929, rebounded sharply even before full details of the rescue were unveiled, soaring by more than 5.0 percent.
Meeting in Paris, the leaders agreed to plough funds into struggling banks and guarantee inter-bank lending, which all but dried up in the panicked four weeks since the collapse of US bank Lehman Brothers, threatening the health of the wider economy.
No global price tag was announced for the enterprise -- modelled on a similar scheme adopted by London last week -- but the German package alone was set to reach 470 billion euros (640 billion dollars), government sources said.
In Berlin, Chancellor Angela Merkel's cabinet was to meet and at 3:00pm (1300 GMT) announce the rescue, set to include around 70 billion euros in fresh capital and 400 billion euros in loan guarantees, according to officials.
In France, whose major banks have so far pulled through the crisis relatively unscathed, President Nicolas Sarkozy will address the nation at 3:00 pm (1300 GMT), after an emergency cabinet meeting.
At the same time in Austria, the government was to announce a bail-out, which Chancellor Alfred Gusenbauer has said could involve part-nationalisation of the worst-hit banks.
Portugal has already offered a 20-billion-euro guarantee for endangered banks, while Italy's cabinet was to meet Monday to "update" bail-out measures already taken.
All 15 eurozone members are to release full details before a summit Wednesday of the 27 European Union members in Brussels, where more non-euro-spending states are expected to sign on.
The European plan, coming two days after the Group of Seven richest economies pledged similar action to shore up the financial sector, won plaudits from International Monetary Fund (IMF) chief Dominique Strauss-Kahn.
"Guarantees have been given, there is complete political determination," he told French radio Europe 1. "There is no reason today, for either depositors, market actors or businesses to have anything to fear."
Strauss-Kahn said the plan "should provide the elements to reassure, in a situation that is highly irrational," reaffirming the need for "massive," "global and coordinated" action.
The head of the eurogroup, Luxembourg prime minister Jean-Claude Juncker, said the bail-out was "essential" to prevent a global financial meltdown.
"This is not about handing out gifts to bankers," he told RTL radio. "The banks we help will have to pay. This is about ensuring that consumers and investors can keep on functioning in a rational way."
"If we just stand back and do nothing, everything will collapse."
European leaders took example from a 500-billion-pound (630-billion-euro, 850-billion-dollar) British rescue plan.
London on Monday ploughed 37 billion pounds into a trio of banks, Royal Bank of Scotland, HBOS and Lloyds TSB, the first to benefit from the scheme.
And European central banks moved to free up frozen lending by providing commercial banks with unlimited amounts of dollars in a joint operation that might be reinforced by Japan.
The Bank of England, European Central Bank and Swiss National Bank will loan dollars to commercial banks for periods of seven, 28 and 84 days "at fixed interest rates for full allotment," an ECB statement said.
Banks worldwide need dollars to finance operations, but the market on which they would normally borrow them has seized up following the collapse in the US subprime mortgage market.
The European Union also said it was ready to help Hungary's government after its currency, the forint, slumped last week.
So much $
The Package:
Bristain: Total 500 b pound (630 b euro/850 b dollars)
200 b pound (short term)250 b pound ( guarantee loan between bannks)
Germany
70 b euros (fresh capital)400 b euros (loan guarantee)
France
Austria
Portugal 20 b euro (guarantee)
BERLIN (AFP) - Governments in Berlin, Paris and Rome were Monday to announce more than half a trillion euros in rescue funds for Europe's stumbling banking sector, as each puts a price tag on a joint bail-out plan.
Leaders of the 15-country eurozone single currency bloc, following the lead of Europe's financial giant Britain, agreed Sunday on a high-stakes joint bid to pull the world financial system back from the brink of collapse.
Stock markets in London, Paris, Amsterdam, Milan and Frankfurt, reeling from their blackest week since the crash of 1929, rebounded sharply even before full details of the rescue were unveiled, soaring by more than 5.0 percent.
Meeting in Paris, the leaders agreed to plough funds into struggling banks and guarantee inter-bank lending, which all but dried up in the panicked four weeks since the collapse of US bank Lehman Brothers, threatening the health of the wider economy.
No global price tag was announced for the enterprise -- modelled on a similar scheme adopted by London last week -- but the German package alone was set to reach 470 billion euros (640 billion dollars), government sources said.
In Berlin, Chancellor Angela Merkel's cabinet was to meet and at 3:00pm (1300 GMT) announce the rescue, set to include around 70 billion euros in fresh capital and 400 billion euros in loan guarantees, according to officials.
In France, whose major banks have so far pulled through the crisis relatively unscathed, President Nicolas Sarkozy will address the nation at 3:00 pm (1300 GMT), after an emergency cabinet meeting.
At the same time in Austria, the government was to announce a bail-out, which Chancellor Alfred Gusenbauer has said could involve part-nationalisation of the worst-hit banks.
Portugal has already offered a 20-billion-euro guarantee for endangered banks, while Italy's cabinet was to meet Monday to "update" bail-out measures already taken.
All 15 eurozone members are to release full details before a summit Wednesday of the 27 European Union members in Brussels, where more non-euro-spending states are expected to sign on.
The European plan, coming two days after the Group of Seven richest economies pledged similar action to shore up the financial sector, won plaudits from International Monetary Fund (IMF) chief Dominique Strauss-Kahn.
"Guarantees have been given, there is complete political determination," he told French radio Europe 1. "There is no reason today, for either depositors, market actors or businesses to have anything to fear."
Strauss-Kahn said the plan "should provide the elements to reassure, in a situation that is highly irrational," reaffirming the need for "massive," "global and coordinated" action.
The head of the eurogroup, Luxembourg prime minister Jean-Claude Juncker, said the bail-out was "essential" to prevent a global financial meltdown.
"This is not about handing out gifts to bankers," he told RTL radio. "The banks we help will have to pay. This is about ensuring that consumers and investors can keep on functioning in a rational way."
"If we just stand back and do nothing, everything will collapse."
European leaders took example from a 500-billion-pound (630-billion-euro, 850-billion-dollar) British rescue plan.
London on Monday ploughed 37 billion pounds into a trio of banks, Royal Bank of Scotland, HBOS and Lloyds TSB, the first to benefit from the scheme.
And European central banks moved to free up frozen lending by providing commercial banks with unlimited amounts of dollars in a joint operation that might be reinforced by Japan.
The Bank of England, European Central Bank and Swiss National Bank will loan dollars to commercial banks for periods of seven, 28 and 84 days "at fixed interest rates for full allotment," an ECB statement said.
Banks worldwide need dollars to finance operations, but the market on which they would normally borrow them has seized up following the collapse in the US subprime mortgage market.
The European Union also said it was ready to help Hungary's government after its currency, the forint, slumped last week.
So much $
The Package:
Bristain: Total 500 b pound (630 b euro/850 b dollars)
200 b pound (short term)250 b pound ( guarantee loan between bannks)
Germany
70 b euros (fresh capital)400 b euros (loan guarantee)
France
Austria
Portugal 20 b euro (guarantee)
DBS says Indian JV to close branches, layoff staff
DBS says Indian JV to close branches, layoff staff
SINGAPORE, Oct 14 - DBS Group, Singapore's biggest bank, said on Tuesday that its Indian joint venture Cholamandalam DBS Finance is closing 75 branches in India.
"The business has to adapt to prevailing conditions in India," a DBS spokesman said, confirming an earlier report in the Times of India newspaper that its subsidiary will close 75 of its 260 branches and 200 people will lose their jobs.
DBS, which is Southeast Asia's biggest lender, has a 37.5 percent stake in Cholamandalam DBS Finance.
DBS and Cholamandalam Investments and Finance Company agreed to form the joint venture in the middle of 2005.
Quoted from yahoo news
Why closing these at this time? To take advantage of the current crisis to cut and streamline processes ? Or they are really losing grounds in India?
SINGAPORE, Oct 14 - DBS Group
"The business has to adapt to prevailing conditions in India," a DBS spokesman said, confirming an earlier report in the Times of India newspaper that its subsidiary will close 75 of its 260 branches and 200 people will lose their jobs.
DBS, which is Southeast Asia's biggest lender, has a 37.5 percent stake in Cholamandalam DBS Finance.
DBS and Cholamandalam Investments and Finance Company agreed to form the joint venture in the middle of 2005.
Quoted from yahoo news
Why closing these at this time? To take advantage of the current crisis to cut and streamline processes ? Or they are really losing grounds in India?
Friday, October 10, 2008
Interesting Articles
This is a summary of articles that may be of interest to you
Global Economy
1. US Senate approves economic bailout plan
2. UBS cuts 2000 more jobs in investment bank unit
3. Central banks unleash rate cut offensive against finance turmoil AFP
About Singapore
1. Singapore being top meeting place
2. Recession looms for Singapore: economists AFP
Singapore's property market
1. URA releases 3rd quarter 2008 private residentail property price index
2. Singapore home prices see first drop in 4 years
3. MRT guide to home prices
4. Tharman says global economic crunch could impact job market
Global Economy
1. US Senate approves economic bailout plan
2. UBS cuts 2000 more jobs in investment bank unit
3. Central banks unleash rate cut offensive against finance turmoil AFP
About Singapore
1. Singapore being top meeting place
2. Recession looms for Singapore: economists AFP
Singapore's property market
1. URA releases 3rd quarter 2008 private residentail property price index
2. Singapore home prices see first drop in 4 years
3. MRT guide to home prices
4. Tharman says global economic crunch could impact job market
Thursday, October 9, 2008
Central banks unleash rate cut offensive against finance turmoil AFP
Central banks unleash rate cut offensive against finance turmoil AFP -
LONDON (AFP) - - Major central banks launched coordinated interest rate cuts on Wednesday in a new gamble to counter the global financial crisis but failed to quell panic on global stock markets.
The rate cuts and Britain's move to pump 87 billion dollars into stricken banks were designed to underpin shaky confidence in the financial system.
But while the move brought temporary respite, London's main index soon fell back again and US stocks endured another rollercoaster ride, while Tokyo saw its biggest one-day fall in two decades.
The US Federal Reserve, the European Central Bank , Bank of England and central banks in Sweden and Switzerland all joined the new interest rate offensive, cutting rates by half a percentage point. China joined in cutting 27 basis points off its key rate.
The central banks highlighted in a joint statement that they had cooperated in "unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets" during the crisis.
They said inflationary pressures were easing as oil and other commodity prices fall due to the credit crunch cutting demand and so "some easing of global monetary conditions is therefore warranted."
Political leaders welcomed the cuts. "It is important and helpful that central banks are working in a coordinated way to deal with stress in the financial system," White House spokesman Tony Fratto said.
German Chancellor Angela Merkel said it would "help build confidence" in the global economy and French President Nicolas Sarkozy, current EU president, called it a "very important decision."
Neither the rate cut nor Britain's costly initiative to hold up the banking system could halt another market freefall.
Panic selling hit Asian stock exchanges and a drop of 9.38 percent in Tokyo prompted Japanese Prime Minister Taro Aso to voice "huge fears" for the future of the world's second biggest economy. Hong Kong fell 8.2 percent and Sydney 5.0 percent.
While the initial impact of the central banks' move was to breathe some life back into the main European markets, the relief was only temporary.
The London stock market plunged 5.38 percent, with dealers saying investors were unconvinced that the rate cuts would stop the rot.
Wall Street also remained volatile, rebounding from an opening plunge. The Dow Jones Industrial Average was trading 89.28 points (0.95 percent) higher at 9,536.39 around 1350 GMT, after initially plummeting 149.34 points.
"The central banks have to cut their rates further ... we have lost too much time," Robert Halver, a strategist at Baader Bank in Frankfurt told AFP.
Unveiling a package which will see Britain's eight main banks part-nationalised, Prime Minister Gordon Brown said "the global financial market has ceased to function" and needed "bold and far-reaching solutions."
The government said it would use 50 billion pounds (64 billion euros, 87 billion dollars) to buy stakes in HSBC, Royal Bank of Scotland, Barclays, HBOS, Lloyds TSB, Standard Chartered, Abbey and Nationwide Building Society.
It would also make available 200 billion pounds in short-term loans and issue 250 billion pounds to guarantee loans between banks.
Royal Bank of Scotland and HBOS, whose shares have suffered heavy recent losses, said they would take part in the recapitalisation part of the scheme but other banks including HSBC and Standard Chartered said they would not.
It hoped the measures will overcome the banks' reluctance to lend to each other -- the root of the financial crisis.
Brown also called for a "European-wide funding plan" to help ease the global financial crisis and said proposals had been made to other nations.
Britain's initiative followed desperate efforts by other governments and institutions.
The European Central Bank said it would pump 70 billion dollars into interbank money markets in one-day loans Wednesday, raising the daily amount by 20 billion dollars.
The US Federal Reserve said Tuesday it would buy up short-term corporate debt -- sharply extending its role in the economy -- and central bank chairman Ben Bernanke strongly hinted that a US interest rate cut was on the cards.
President George W. Bush discussed the economic meltdown with leaders of Britain, France and Italy, seeking a common strategy ahead of crisis talks between the Group of Seven major economies in Washington on Friday
LONDON (AFP) - - Major central banks launched coordinated interest rate cuts on Wednesday in a new gamble to counter the global financial crisis but failed to quell panic on global stock markets.
The rate cuts and Britain's move to pump 87 billion dollars into stricken banks were designed to underpin shaky confidence in the financial system.
But while the move brought temporary respite, London's main index soon fell back again and US stocks endured another rollercoaster ride, while Tokyo saw its biggest one-day fall in two decades.
The US Federal Reserve, the European Central Bank , Bank of England and central banks in Sweden and Switzerland all joined the new interest rate offensive, cutting rates by half a percentage point. China joined in cutting 27 basis points off its key rate.
The central banks highlighted in a joint statement that they had cooperated in "unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets" during the crisis.
They said inflationary pressures were easing as oil and other commodity prices fall due to the credit crunch cutting demand and so "some easing of global monetary conditions is therefore warranted."
Political leaders welcomed the cuts. "It is important and helpful that central banks are working in a coordinated way to deal with stress in the financial system," White House spokesman Tony Fratto said.
German Chancellor Angela Merkel said it would "help build confidence" in the global economy and French President Nicolas Sarkozy, current EU president, called it a "very important decision."
Neither the rate cut nor Britain's costly initiative to hold up the banking system could halt another market freefall.
Panic selling hit Asian stock exchanges and a drop of 9.38 percent in Tokyo prompted Japanese Prime Minister Taro Aso to voice "huge fears" for the future of the world's second biggest economy. Hong Kong fell 8.2 percent and Sydney 5.0 percent.
While the initial impact of the central banks' move was to breathe some life back into the main European markets, the relief was only temporary.
The London stock market plunged 5.38 percent, with dealers saying investors were unconvinced that the rate cuts would stop the rot.
Wall Street also remained volatile, rebounding from an opening plunge. The Dow Jones Industrial Average was trading 89.28 points (0.95 percent) higher at 9,536.39 around 1350 GMT, after initially plummeting 149.34 points.
"The central banks have to cut their rates further ... we have lost too much time," Robert Halver, a strategist at Baader Bank in Frankfurt told AFP.
Unveiling a package which will see Britain's eight main banks part-nationalised, Prime Minister Gordon Brown said "the global financial market has ceased to function" and needed "bold and far-reaching solutions."
The government said it would use 50 billion pounds (64 billion euros, 87 billion dollars) to buy stakes in HSBC, Royal Bank of Scotland, Barclays, HBOS, Lloyds TSB, Standard Chartered, Abbey and Nationwide Building Society.
It would also make available 200 billion pounds in short-term loans and issue 250 billion pounds to guarantee loans between banks.
Royal Bank of Scotland and HBOS, whose shares have suffered heavy recent losses, said they would take part in the recapitalisation part of the scheme but other banks including HSBC and Standard Chartered said they would not.
It hoped the measures will overcome the banks' reluctance to lend to each other -- the root of the financial crisis.
Brown also called for a "European-wide funding plan" to help ease the global financial crisis and said proposals had been made to other nations.
Britain's initiative followed desperate efforts by other governments and institutions.
The European Central Bank said it would pump 70 billion dollars into interbank money markets in one-day loans Wednesday, raising the daily amount by 20 billion dollars.
The US Federal Reserve said Tuesday it would buy up short-term corporate debt -- sharply extending its role in the economy -- and central bank chairman Ben Bernanke strongly hinted that a US interest rate cut was on the cards.
President George W. Bush discussed the economic meltdown with leaders of Britain, France and Italy, seeking a common strategy ahead of crisis talks between the Group of Seven major economies in Washington on Friday
Recession looms for Singapore: economists AFP
Recession looms for Singapore: economists AFP - Wednesday, October 8
SINGAPORE, Oct 8, 2008 (AFP) - Singapore appears headed for its first recession since 2002 as the city-state suffers from a US economy wilting under its worst financial crisis since the Great Depression, economists say. Southeast Asia's wealthiest economy in terms of GDP per capita is heavily dependent on trade, which makes it sensitive to hiccups in developed economies, particularly key export markets the US and Europe.
The crisis that began last year in the US subprime, or higher-risk, mortgage sector is now infecting European shores, and Singapore may very likely find itself in an extended downturn, economists said.
They expect this Friday's release of preliminary economic data for the third quarter to confirm Singapore is in a technical recession, generally defined as two consecutive quarters of quarter-on-quarter contractions in economic output.
"We are pencilling in the worst for Singapore.... We might see two straight years of (economic) contractions (from 2009 to 2010)," said Song Seng Wun, a regional economist with CIMB-GK Research.
While the last technical recession came six years ago, the most recent full-scale recession was in 2001 when the economy contracted 2.4 percent during the year.
After years of growth, signs of a slowdown emerged with recent disappointing trade data and contractions in the important manufacturing sector, which includes the country's export-dependent electronic and pharmaceutical industries.
In August, key non-oil domestic exports fell for the fourth straight month, with electronic shipments continuing a decline begun in February 2007, and manufacturing dropped by 12.2 percent.
The August fall in output followed a 21.5 percent decline the previous month.
In the second quarter to June, Singapore's economy contracted 6.0 percent on an annualised, quarter-on-quarter basis and the negative trend likely extended into the third quarter, said economists.
"Things are bad globally," said Kit Wei Zheng, Citigroup's vice president for regional economics and market analysis.
"There are a lot of downside risks and in such a scenario, one cannot hope for a quick recovery," he said in Singapore.
Kit is optimistically forecasting a fourth-quarter recovery, with full-year growth at 2.8 percent.
Song said his revised 2009 forecast would likely be for negative growth.
He said that given the rarity of the global crisis, "the numbers we may be looking at may be once in a century for Singapore."
According to economists' calculations, more than two-thirds of the country's economy, valued at 243.17 billion Singapore dollars in 2007 (166.46 billion US), is driven by external demand.
The island nation has no significant domestic economic drivers to lean on because its market of almost five million is simply too small, said economists.
"If the world is in a recession, there is little that we can boost," said Song. "Our plan B is really to try to make the local population bigger."
Economists from Credit Suisse also see Singapore's economy slowing further next year.
"Signs that growth will be lower in 2009 than in 2008 are everywhere... lower job and income growth, falling asset prices, and flat to negative export growth," they said in a report.
"By sector, the global financial turmoil could hit financial services growth hard, exports are likely to drag down manufacturing, and the biomedical sector is expected to remain under pressure from competition from generic drugs."
In early August Singapore's government cut its forecast for economic growth this year to between four and five percent.
But Finance Minister Tharman Shanmugaratnam warned this week that the country could be stuck in an economic downturn that may last "several quarters" as the global crisis evolves.
"It is now an economic crisis," he was quoted as saying Monday in The Straits Times.
"So globally the economy is slowing down. This is a fact that we cannot escape."
SINGAPORE, Oct 8, 2008 (AFP) - Singapore appears headed for its first recession since 2002 as the city-state suffers from a US economy wilting under its worst financial crisis since the Great Depression, economists say. Southeast Asia's wealthiest economy in terms of GDP per capita is heavily dependent on trade, which makes it sensitive to hiccups in developed economies, particularly key export markets the US and Europe.
The crisis that began last year in the US subprime, or higher-risk, mortgage sector is now infecting European shores, and Singapore may very likely find itself in an extended downturn, economists said.
They expect this Friday's release of preliminary economic data for the third quarter to confirm Singapore is in a technical recession, generally defined as two consecutive quarters of quarter-on-quarter contractions in economic output.
"We are pencilling in the worst for Singapore.... We might see two straight years of (economic) contractions (from 2009 to 2010)," said Song Seng Wun, a regional economist with CIMB-GK Research.
While the last technical recession came six years ago, the most recent full-scale recession was in 2001 when the economy contracted 2.4 percent during the year.
After years of growth, signs of a slowdown emerged with recent disappointing trade data and contractions in the important manufacturing sector, which includes the country's export-dependent electronic and pharmaceutical industries.
In August, key non-oil domestic exports fell for the fourth straight month, with electronic shipments continuing a decline begun in February 2007, and manufacturing dropped by 12.2 percent.
The August fall in output followed a 21.5 percent decline the previous month.
In the second quarter to June, Singapore's economy contracted 6.0 percent on an annualised, quarter-on-quarter basis and the negative trend likely extended into the third quarter, said economists.
"Things are bad globally," said Kit Wei Zheng, Citigroup's vice president for regional economics and market analysis.
"There are a lot of downside risks and in such a scenario, one cannot hope for a quick recovery," he said in Singapore.
Kit is optimistically forecasting a fourth-quarter recovery, with full-year growth at 2.8 percent.
Song said his revised 2009 forecast would likely be for negative growth.
He said that given the rarity of the global crisis, "the numbers we may be looking at may be once in a century for Singapore."
According to economists' calculations, more than two-thirds of the country's economy, valued at 243.17 billion Singapore dollars in 2007 (166.46 billion US), is driven by external demand.
The island nation has no significant domestic economic drivers to lean on because its market of almost five million is simply too small, said economists.
"If the world is in a recession, there is little that we can boost," said Song. "Our plan B is really to try to make the local population bigger."
Economists from Credit Suisse also see Singapore's economy slowing further next year.
"Signs that growth will be lower in 2009 than in 2008 are everywhere... lower job and income growth, falling asset prices, and flat to negative export growth," they said in a report.
"By sector, the global financial turmoil could hit financial services growth hard, exports are likely to drag down manufacturing, and the biomedical sector is expected to remain under pressure from competition from generic drugs."
In early August Singapore's government cut its forecast for economic growth this year to between four and five percent.
But Finance Minister Tharman Shanmugaratnam warned this week that the country could be stuck in an economic downturn that may last "several quarters" as the global crisis evolves.
"It is now an economic crisis," he was quoted as saying Monday in The Straits Times.
"So globally the economy is slowing down. This is a fact that we cannot escape."
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