TR EMERITUS

Written by Our Correspondent In yet another clear-cut example that Singapore PRs are partially responsible for the sky-rocketing HDB flat prices, it was reported in the Straits Times today that a Taiwanese PR couple forked out an amazing $650,000 for a four-room flat in Bras Basah which amounts to $736 psf for a 30-year old leasehold public housing. This is the highest price psf paid for a HDB flat and exceeded the previous record set last year November when an Indonesian PR paid $653,000 for a 969 sq ft resale flat in Queenstown. The property agent who brokered the deal told Straits Times that the couple bought the place for its proximity to their work-place at City Hall. Though their professions were not revealed, it is likely that they are mid to high level executives which explain their ability to pay such a hefty price for the flat. PRs like this Taiwanese couple are "spoiling" the HDB resale market as they have more spending prowess than young Singaporeans who are fresh out of college or university. There is no minimal period of residency imposed on PRs buying HDB flats. They can also bring home the profits made from the sale of their flats years later should they decide to leave Singapore. In the end, it is Singapore citizens who will be bearing the brunt of the escalating prices which is condemning them to a lifetime of debts to service the mortgage loans. The prices of HDB flats have increased in recent years as rising demand far outstrips the supply of new flats. Below is a graph illustrating how the rise in the prices of resale flats coincides with the rise in the number of foreigners in Singapore between the years 2000 and 2008, courtesy of Kojakbt, the moderator of 3in1kopitiam: Due to the ruling party’s liberal immigration policy, foreigners now made up 36 per cent of Singapore’s population, up from 14 per cent in 1990. Despite evidence showing otherwise, both HDB and PAP continue to insist that HDB flats are "affordable" to ordinary Singaporeans and that PRs are not responsible for the astronomical prices. National Development Minister Mah Bow Tan said a few weeks ago in Parliament that PRs who make up “only” one in five resale flat buyers, have "minimal" impact on resale prices even as he admitted at the beginning of the year that he was "caught offguard" by the rising prices. In an interview with Channel News Asia's "Talking Point" two weeks ago, Mr Mah is adamant that most Singaporeans can still afford HDB flats and that "the system is sound." Mr Mah's views appear to contradict that of his deputy, Senior Minister of State for the National Development Ministry Grace Fu who admitted unwittingly that PRs are indeed contributing to the increasing prices. "We have some Singaporeans coming to us and saying ‘I want to sell to a PR because the PR is giving me a better price than Singaporeans," she was quoted as saying in a Channel 8 Focus programme two days ago. She even praised PRs for "helping" HDB flat owners: "So even though we may not want to have many foreigners or PRs buying HDB flats, if you’re an HDB flat owner and when you’re selling the HDB flat, a PR is helpful for you as well. So for all our policies we try to take a very balanced view.” With the state media adding "fuel" to the "fire", it is hardly surprising that both property agents and flat sellers are making full use of the frenzy in the property market to make a quick buck.   EDITORS’ NOTE: Please join the discussion about this article on our Facebook page here and invite your friends to do so to help us raise awareness among fellow Singaporeans.   Related articles: >> Grace Fu: PRs are helpful to HDB flat owners selling their flats >> HDB launches “traveling exhibition” to trumpet its achievements in the heartlands >> PAP to upgrade 12,000 HDB households ahead of next election >> Mah Bow Tan: We do not want flat prices to go down >> Prices of resale flats to rise further as PR quota reached >> Taiwanese PR offers $50k COV for resale flat >> Mah Bow Tan: PRs have minimal impact on resale flat prices >> No empirical evidence to suggest that public housing is affordable in Singapore >> When will Singapore’s property bubble burst? >> Why HDB is unable to reveal break down costs of new flats now >> HDB to consider introducing rules to curb property speculation >> HDB blames Singaporeans for not selecting flats when given the chance >> Singaporeans worried about retirement after depleting CPF to pay for over-priced HDB flats >> Mah Bow Tan acknowledged that rising HDB flat prices has sparked “fresh concerns” >> PM Lee: Govt does not have control over prices of resale flats” >> COVs of resale flats shooting through the roof >> HDB resale price index hit record high in 2009 >> Singaporean wants PRs to live in rented flats instead of buying resale flats >> Singaporeans wants PRs to be banned from selling HDB flats at a profit >> Shanmugam: Singaporeans likely culprits for driving up HDB flat prices >> Mah Bow Tan: HDB flats remain affordable >> Means testing for PRs to buy resale flats >> Immigration and public housing: should the govt or people plan ahead? >> Grace Fu: hard to predict demand for housing >> Indonesian PR bought 4-room flat at $653,000 >> Mah Bow Tan asks home buyers to be realistic >> PAP MP blames young couples who cannot get a flat for not planning ahead >> Home affordability: HDB versus the public >> Demand vs supply: so many applicants, so few flats >> Number of applicants exceed number of flats >> HDB to increase supply of flats >> Mah: don’t compare with prices in the past >> ERA: 40 per cent of HDB flat buyers are PRs  Read More →

Chosun Ilbo, 26 March 2010 North Korea on Sunday slammed South Korean Defense Minister Kim Tae-young over recent remarks that Seoul would launch a preemptive strike if there are clear signs of a planned nuclear attack by the North. "We regard the scenario for a preemptive strike as an open declaration of war against us," the North Korean military's General Staff said in a statement. The North will "take resolute military action and blow up major targets, including the command center" in the South, it added. "Violent talk of a preemptive strike" by the South Korean minister "is creating an ominous situation on the Korean Peninsula where nobody knows when the disaster of the Korean War will be repeated," the statement said. At the same time, North Korean agencies involved in economic cooperation with South Korea continue to ask South Korean NGOs for aid. One of them, the National Economic Cooperation Federation in December asked the Seoul chapter of the evangelical charity World Vision for 300 tons of flour and 200 tons of rice. In the past, all the North had to do was wait until the South offered aid, but with a conservative government in Seoul, North Korean organization have had to make several phone calls through offices in Dandong. One NGO staffer said Pyongyang "keeps asking what the progress is." A Unification Ministry official said the North has been issuing visit visas to South Korean NGOs since the beginning of this year, which would usually only be forthcoming after Kim Jong-il's birthday on Feb. 16. One security official said the simultaneous threats and pleas are issued depending whether the North stands to profit. North Korea is apparently determined to hit back at anything it sees as a threat to the regime but at the same time it appears to be trying to improve inter-Korean relations if that will result in more aid. - Chosun Ilbo  Read More →

Written by Our Correspondent It was an embarrassing day for the PAP's much vaunted Integrated Resort as the Universal Studios Singapore theme park's main attraction has to be shut down indefinitely due to a technical glitch found in the Battlestar Galactica roller-coaster ride during an inspection yesterday. The Universal Studios theme park, touted as the only one in Southeast Asia is located within the Resorts World Sentosa (RWS) IR which was opened only a month ago. The state media has been actively promoting the theme park after it opened amidst much fanfare barely a week ago. On 19 March 2010, Reuters reported that the Singapore Universal Studios was opened with a "lavish ceremony aimed at attracting luck, and repeat business." "Doors were flung open to the public at precisely 08:28 a.m. after 18 Chinese lions blazed through the entrance at 08:08 a.m. The number 8 is considered by many in mostly ethnic Chinese Singapore as auspicious. Actresses dressed up like Marilyn Monroe and Betty Boop paraded with the lion-dancing troupe along Hollywood Boulevard, one of the seven themed zones in the 20-hectare park that aims to attract 4.5 million visitors in its first year," it added. [Source: Reuters, 19 March 2010] “We have ambitions that this would be the No. 1 destination in Asia and also Europe as far as theme parks are concerned,” Genting Group chairman Lim Kok Thay was quoted as saying. In a statement released to the press yesterday, RWS said that it had decided to shut down the ride to "reaffirm its commitment to employee and guest safety." Separately, the Singapore police issued a statement that the "ride's licence has been suspended with immediate effect." RWS has come under fire even before it was opened when sceptical netizens challenged its management repeatedly to reveal the exact number of Singapore citizens employed on its payroll. For some strange reasons, both RWS and the PAP have patently refused to do so except a vague statement that "more than 70 percent" of RWS staff are Singapore PRs and citizens and that RWS remains "committed" to employing Singapore citizens. Since its opening, visitors have confirmed that most of its casino staff are non-Singaporeans. There were also complaints that only half the casino's gambling tables were available and the place was flooded with foreign workers especially on the weekends making it difficult for punters to place their bets. With the second casino run by Marina Bay Sands scheduled to open next month, it will be a tough call for both IRs to generate a profit at least in the first year of their operation given the limited size of the Singapore market.   EDITORS’ NOTE: Please join our Facebook page here and invite your friends to do so as well.   Related articles: >> Universal Studios Singapore courts 8 for lucky launch >> Freelance prostitutes spotted at RWS Sentosa >> Call on RWS to reveal exact number of Singapore citizens on its payroll    Read More →