China improved the earnings of local developers

Amidst the lacklustre residential marketplace in Singapore, strong sales in the biggest cities in China has improved the earnings of local developers, reported Nikkei Asian Review.

For example, CapitaLand’s sales soared by 21.3 percent year-on-year to US$3.41 billion (S$4.73 billion), driven by solid residential transactions in China. In spite of the nation’s softer economy, sales rose two-fold to US$2.36 billion (S$3.27 billion).

City Developments Limited (CDL), another leading developer, has also reaped rewards for venturing into essential Chinese cities.

For the 2015 financial year, CDL China sold 13 villas in Shanghai and almost 700 units in Suzhou, with total sales amounting to 1.6 billion yuan (S$340.74 million). The firm’s net profit inched up 0.5 percent last year to S$773.3 million.

“There have been hints of development, with increased buying activity in certain cities for example Shanghai and Suzhou after the government lifted several cooling measures and comfortable loan restrictions in 2015,” CDL said in a statement.

While the Chinese economy isn’t as lively home builders have gained by focusing on first-tier cities, like Shanghai and Beijing, which are finding higher growth compared to the rest of the state.

Based on Joe Zhou, JLL’s Research Head for China, “residential sales volumes across 20 major cities in China shot up by 28 percent in 2015. Prices in Tier 1.5 and 2 cities are also gaining momentum”, but third- and fourth-grade cities are still saddled with surplus supply.

The Chinese prefer to invest in first-tier cities as the quality of the properties there are usually superior to those found in other urban areas. Additionally, there is small investment opportunities in the country, clarified David Ji, Knight Frank’s Head of Consultancy and Research for Greater China.

Chinese cities are categorised into grades based on their population, gross domestic product and other variables.

Extras: T Space Tampines | Parc Life EC | Centrium Square

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EC or BTO?

Buying any kind of residential property is probably the most expensive item in our life. Besides the primary needs of ‘Possessing a place called home’ , the two principal questions that probably in the rear of one’s mind are:
1. Should I purchase a BTO, EC or private condomimum unit?
2. Should I Buy an EC – The Criterion EC Now?
Below are my personal humble opinion. Read on and determine for yourself whether you share my ideas and is it the right time to think about purchasing one now.
1. Should I Buy a BTO, EC or Private Condominum?
First thing first, we need to examine the variables which could limit or determine your choice.
Eligibility. The eligibility conditions for BTO and EC are very similar but for the income amount qualification and family scheme. Combined SC singles above 35 years can choose an EC unit, while single SC above 35 years bringing in up to $5,000 per month can opt for a 2 room BTO unit in non-mature estate. If you’re a single below 35 years old, your option is simply limited to the private condominium or the resale marketplace. For private condominum, there’s no eligibility condition, it’s open to anyone that has got the means to buy.
Income Level. Next, your home alternatives may be restricted by the entire gross income. If your own monthly total household income is:
* below $10,000, all 3 options (BTO, EC, private condo) are open
* $10,000 – $12,000, you can just buy an EC or private condominium
* above $12,000, your only option is private condo.
Location. Purchasing property is principally about place plus it still holds true as the most crucial consideration. What is vital to folks when it comes to location varies from buyer to buyer. Some may take a look at surrounding conveniences for transportation and convenience, while for others being near to a table-topping school is very important. So if you prefer a particular place quite definitely, while it is a BTO or EC or private condo project, you’re prone to go for it (subject to your own above eligibilty and income level qualification).
I have collated the conveniences in some of the areas (Sengkang, Woodlands) where ECs in Singapore are found. Trust to cover all the places in the long run.
Budget. Another determining factor will be your budget. You must not overstretch yourself in purchasing a property. Your budget could also restrict your options (BTO, EC or Condo) and also the type of unit alternatives (1, 2, 3, 4 or 5 rooms).

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