SG property developers run into financial trouble

[2009]

Singapore listed property firms have 12 billion SGD in loans and bonds that will become due this year, according to Asian Pacific Real Estate Association.

Singapore developers are hoping that the Government will step in and and refinance some of the debts and inject confidence into the property market. Developers also hope that the deferred payment scheme will be started again to boost the sluggish property market.

What happened to the 'deep pockets' that developers were supposed to have??

[Dr. Phil]

I think governments must allow developers to sort their own mess out. Government re-financing will only defer the inevitable and encourage fraudulent and imprudent practices.

What we need globally is a correction to the housing market because the home is the biggest single expenditure in our lifetime and homes are simply unaffordable based on a prudent debt ratio which limits mortages to 3 x annual income.

Nationwide, in UK has claimed house prices in UK rose last month. They keep pushing the envelope hoping to entrap more buyers with negative equity. They do not say that only a few sales occurred of high-end properties which will hold their value. Elsewhere no buyers, prices fell but not enough to tempt buyers, mainly due to over-pricing but also because banks aren't lending.

Banks want buyers to pay 25% deposit. Interest rates are so low as to disuade savers.

Governments just dont get it. The greatest problem today is indigenstion from gluttonous consumption and unsustainable debt. And low interest rates are not working.

[Kubes.SG]

Property developers heads, like most agents have little going for them.  They are greedy, stupid and unable to tell the truth unless their gonads are in a vice (or they are $12B in the red).  Most inherited their business so they are not even at the top by merit.  

The thing that really disturbs me is that is some kind of special interest the SG Govt provides the property industry here - far more than others.  The Govt doesn't leave the sector alone so it can find it's natural market value level, instead continually (literally weekly) tweaking some aspect of what happens (HDB, mass and private).  Property is therefore the most manipulated, deceptive, distorted, volatile and risky industry sector in Singapore.

What will the Govt do?  Bail them out?  I hope not, let them fail, Singapore Inc can handle it financially, but the challenge will the National loss of face.  

Its a joke that SG thinks it's like Switzerland, it is really a US mini-me.   Remember what I have said for 18 months, DPS is Singapore's very own sub-prime disaster (and the really bad year will be 2010).  They created this all by themselves.  What Idiots.

[REITs]

Singapore listed property firms have 12 billion SGD in loans and bonds that will become due this year, according to Asian Pacific Real Estate Association.

Singapore developers are hoping that the Government will step in and and refinance some of the debts and inject confidence into the property market. Developers also hope that the deferred payment scheme will be started again to boost the sluggish property market.

What happened to the 'deep pockets' that developers were supposed to have??

You conveniently excluded that the loans andbonds are related to REITs and not so much for other aspects of property.

[koi]

Property developers heads, like most agents have little going for them.  They are greedy, stupid and unable to tell the truth unless their gonads are in a vice (or they are $12B in the red).  Most inherited their business so they are not even at the top by merit. 

Greedy? Can you tell me which company CEOs are not greedy and not maximise profits for their shareholders? If the property developers are "greedy", what adjective will you use to describe those Wall street bankers?
Let's look at some of the major developers in Sing. Far East is regarded as among the biggest. The founder is Ng Teng Fong and the old man is alive and kicking. Next comes City Dev. whose boss is Kwek Leng Beng. Yes he inherited the company from his father but his old man passed away along time ago. If he is stupid the company would not have grown for the last 20 years. Simon Cheong was a Citi banker. He founded SC Global himself. Centerpoint properties is a subsidiary of F&N whose CEO is LKY's second son. Capitaland and Keppel land are both govt link companies.
I thought Kubes is a fair and honest guy. Maybe I make a mistake. I am sorry. 

[Kubes.SG]

Yep, I put the SG Property Developer heads in the same class as the Wall Street investment bankers.  They take the same risks, they manipulate/distort the markets, they make massive profits in the good times, and come begging to the Govt when the Bubble of their own making blows up in their face.

[2009]

"You conveniently excluded that the loans andbonds are related to REITs and not so much for other aspects of property."

Yes, Singapore listed property firms including REITs, and they all invest in the same market and they share the same set of problems. With remarks like: "we are setting the prices so prices won't fall", the developers have caused the market to freeze because buyers know that prices are not sustainable.

The only thing is they got surprised how inflated the bubble was, and now they are stuck over-invested. Real estate is a capital intence business, so you can't afford to make too many mistakes.

[The Man]

And the fact that property investors now prefer overseas instead of Singapore, is not helping either... UK, US and AUS market, including their low currency rates, are offering more attractive deals than local market here.