Mortgagee Sale, Crisis or Opportunity?


I was monitoring the mortgagee sales in Singapore since last year as I believed the number of such sales will see sharp increase. True enough, it was reported by Straits Times yesterday¬†"Mortgagee sales spike as property curbs bite". According to the article, there were 54 homes put up for auction in the first quarter as mortgagee sales. You may think this is small number, but this was a 22.7% increase over the last quarter of last year and a 200% increase compared with the same period … [Read more...]

How many billionaires are there in Singapore?


According to Wealth-X and UBS Billionaire Consensus 2013, Singapore has 27 billionaires, which makes it the fifth biggest billionaire population in Asia and 18th in the world. The typical Singapore billionaire is said to be mainly from the "finance, banking and investments sector" (I think they probably put real estate in investment because most of the billionaires here are in real estate), has at least a degree and is above 60 years old. The study also shows that as of 2013, the total … [Read more...]

Why is the ease of Total Debt Servicing Ratio (TDSR) restriction disappointing


On Feb 10, 2014, The Monetary Authority of Singapore (MAS) announced to ease the restrictive Total Debt Servicing Ratio (TDSR) on certain property buyers. What it says is that some of whose who bought a residential property before the TDSR measure (introduced on June 29, 2013) will be exempted from the TDSR threshold of 60% so they can refinance their house. Why is this important to the home owners? Mortgages in Singapore typically have a lower spread to the Singapore interbank offer rate … [Read more...]

HDB Cash Over Valuation lowest since January 2011


In Jan 2012, I wrote an article "How much Cash-Over-Valuation (COV) should you pay for your HDB flat?" I explained the worrying "greater fool" situation of HDB buyers trying to outbid each other by paying a higher cash over valuation. In Apr this year, I told you HDB is going to "show hand" by just looking at the demand and supply of the market. If you read today's paper, it is reported that "Overall Housing Board cash-over-valuation (COV) continued a steady decline in July to $20,000, its … [Read more...]

The five “suspected” asset bubbles in 2013


Most of the articles you read will try to tell you what to invest, but today will share with you what not to invest. I am inspired by this twitter post. Though I cannot verify if it is indeed from UBS's report, but I agree most of the points. A consequence of ultra-loose monetary policy By now we all know what the world has become. By pushing risk free rates to an unprecedented low level, central banks run the risk of creating a disorderly return for many assets around the world. The real … [Read more...]