Singapore

Their currency is currently in deflation – it’s all just about margins.

3.35% margin between that fixed rate in the current inflation rate.

Australia has circa 2.8% margin between underlying inflation rate and comparable five year fix.

• This reply was modified 8 years, 8 months ago by  Corey Batt.

Why do people lend money to others? For profit. You’re not going to lend out (especially at a fixed rate return) for a negative return (below inflation). There are some market distortions where this might happen, but for the most part this is the reality.

Effectively there is a margin between inflation and rate being offered – then lumber on the other costs of funding and that’s where the fat is.

Dean – as above, it comes down to the local currency inflation rate. ANZ is lending in Singapore in the local currency and profiting on the margin between cost of funding and sale price. Cost of funding will not drop below the underlying inflation rate unless for distortion reasons (happened for a while with USD borrowings when EU funds were happy to push their capital at a guaranteed loss just to protect the majority of the capital in a stable environment).

Singapore’s current mortgage rate for fixed is 4.2% and 3.8% for a floating rate. i believe that its slightly lower than Australia. Wonder why the difference.

It turns out that it was necessary to go to Singapore to apply for a mortgage.

realestatepro wrote:

Saw this in the news recently: https://www.straitstimes.com/business/property/dunman-road-mega-site-draws-128-billion-bid-pine-grove-gls-site-draws-6715-million-bid With the global slow down and increase in rates, its interesting that Singapore’s property market is still pretty strong and stable.

The tenders for two state-owned plots closed on June 2 in Singapore, resulting in mixed outcomes. Developers displayed eagerness to bid for the Pine Grove site, while the mega-site in Dunman Road (Grand Dunman) did not receive as much attention. This is consistent with the developers’ mindset of bidding for sites with high demand, but only up to a certain point due to the high prices of some mega-plots. The Dunman Road site, the largest Government Land Sales plot since May 2018, only received two bids, possibly due to the considerable price and risks associated with construction costs, cooling measures, and economic uncertainty. SingHaiyi Group submitted the top bid of $1.28 billion or $1,350 per sq ft per plot ratio, although the developer has not commented on its intentions for the site. In contrast, the Pine Grove (Parcel A) plot – (Pinetree Hill) received five bids, resulting in one of the tightest races in recent memory. The UOL Group and Singapore Land Group joint venture emerged victorious with a bid of $671.5 million or $1,318 psf ppr, beating Allgreen Properties’ bid by just $800.

How was the performance of the 2 condominiums?