The SRPI (Singapore housing price index) is the monthly price movement, will provide a means for growth of property derivatives. For real estate developers can asset managers, banks and shareholders, such derivatives be a way to distort their exposure to property. National University of Singapore Institute SRPI adjusted every two years to reflect changes in supply, so it SRPI next be reviewed in December 2011. The new index also may contribute to an analysis of price trends and investors in making more informed decisions.
Shopping includes 364 private housing projects located through 26 postal districts in Singapore.
SRPI unique feature is that it uses a fixed basket of goods to determine the data. It can also help to increase the pool of financial products such as index in the exchange of notes, and the total returns offered in Singapore. National University of Singapore expects its new index to supplement the quarterly data reported by the Urban Renewal Authority.
Risk management products as these will complement the group offered the investment in fixed assets such as REIT, real estate trusts, real estate and equities. Property analyst has many different options that provide more useful data for comparison.
Minister for National Development Grace Fu, was launched in the index, saying it gives a snapshot of non-landed residential market.
"It would be helpful. More information to the market as perfect as possible to help those responsible," said Karamjit Singh, managing director of Credo Real Estate.
Head of Research at Jones Lang LaSalle in Southeast Asia, Dr Chua Yang Liang said: "This new ad is absolutely good factor for Singapore in terms of market transparency in our property."
SINGAPORE - The Singapore National University of Singapore housing price index (SRPI), which tracks the month-month price movement of a selected basket completed private residential buildings was officially launched on Wednesday.
The index promises to be a transparent, reliable and well-referenced index of prices of goods a benchmark index that monitors the movements of real estate directly.
Minister of State for National Development Grace Fu, was launched in the index, saying it gives a snapshot of non-landed residential market.
The index can also facilitate the analysis of price trends and help investors make more informed decisions, he said.
It is expected that the gains in acceptance rate, which could potentially be used to manage risk by developing products from this property. Of these derivatives may be a way for real estate developers, asset managers, banks and investors to hedge their exposure to property.
Risk management products such as these complement the existing range of real estate investment, such as REIT, real estate trusts, real estate and equities. It will join the ranks of financial instruments to meet the needs of investors.
If the Singapore government to intervene to reduce the prices of private property, or whether prices should be left to market forces?
This issue was raised by the President of the Association of developers in Singapore, Simon Cheong, in his speech at the launch of a new housing price index Madrid.
Mr. Cheong raised several issues that argue that the private property sector may be better in the long run if they are allowed to operate as a free market.
Singapore is one of the highest rates of home ownership in the world, with more than 80 percent of the population served by public housing.
Mr Cheong said that the private property geared only a small segment in Singapore.
As such, he questioned the need for strong government involvement in the taking of private homes more affordable for this group which has expressed concern about being driven out of their reach.
Rather than maintaining an affordable price, then other factors must be addressed in order to maintain a healthy market.
"It is a misconception that the increase in value is the only culprit, instead of other possible problems such as short-term supply and demand imbalances are available, or too much credit expansion in the financial system."
Mr Cheong also questioned the role of government as the largest supplier of land.
He suggested that the method for acquisition of land by the State through the reserve list system is too slow.
"During periods of high volatility, is not able to respond quickly enough to changes in real time on the market. This delay is compounded by the time the offer of land to run their course.
Especially for the reserve list, the requirement for a minimum bid price of the land before the state can be activated by a bidding process more entrenched position of the state as regulator of land prices in Singapore. "
The government recently announced measures that he says will ensure that the reserve list system remains responsive to market conditions.
Another point which Mr Cheong is that the government land sales process can be the cause of private property prices up.
"A Tampines instead of developing about 600 homes in the condominium was first released in June 2008. Tender then $ 118 per plot ratio was dismissed for not meeting the reserve price. It has recently been awarded the tender in March 2010 up to $ 421 per plot ratio. 3.6 times higher. Similarly, a crossing Ten Mile site that had a botched $ 162 again in 2008, recently received in 2010 for $ 437 per plot ratio or 2.7 times higher among the more competitive bids. In both cases, the highest purchase price also stressed that supply and demand imbalance. "
Mr Cheong said the dominant sector in the public housing reduces the development of private enterprises on a small island like Singapore.
The index was developed by the National University of Singapore, Institute of Real Estate and is the first index with an academic institution here.
Madrid residential price index, or SRPI that continues from month to month price movements, will be a resource for development of property derivatives.
So that will help to increase the supply of financial products in Singapore.
Organizations, such as real estate firms and financial institutions can use the index to help them better manage their direct exposure to real estate and portfolio to hedge their risks.
Curve consists of 364 private housing projects located in 26 postal districts in Singapore.
The composition of the basket will be adjusted every two years to reflect changes in the whole population in the private non-residential buildings.
Madrid residential price index was developed by the National University of Singapore, The Institute of Real Estate and is the first index with an academic institution here.
Indication of how housing prices and sales are doing now are mainly from urban renewal Authority. But now, buyers and sellers rely on other indicators to track the monthly price of the property.
The new index considers the unique location and its sale to indicate movements in market prices.
Associate Professor Lum Sau Kim, Project Manager, Institute of Real Estate, National University of Singapore, said: "We are different in the URA index based on the features. We use a basket approach.
"It means that we will cover 364 projects, condominiums and apartments, and certain characteristics of these projects. They are about three months to around 10 years old and do not include incomplete features.
Shopping tracking properties are adjusted every two years to reflect changes in supply. Curve to be reviewed next time in December 2011.
Minister of State for the National Development Grace Fu said: "By providing a snapshot of non-rural households with a basket of goods that can facilitate the analysis of price trends and help investors make more informed decisions.
"As gains in acceptance rate, which could potentially be used in risk management by developing products such as derivatives of the property. Derivatives as a way for real estate developers, property managers, banks and investors to hedge its exposure to property".
The index can help to broaden the range of financial products such as index-linked notes and total return swaps, offered in Singapore.
Property analysts have welcomed the introduction of an extra price index. Said it is another option that provides more useful data for comparison. The experts added that the monthly monitoring of evolution of prices to private property, would also provide more timely and in light of market depth.
Dr Chua Yang Liang, Head of Research, Southeast Asia, Jones Lang LaSalle said: "This new release factor is certainly good for Singapore in the form of a transparent market for our products.
"The housing market for some clarity. Is it right time, and where the market is on the way, I think there is another index to confirm or argue that the market is certainly a step in that direction very well."
Karamjit Singh, CEO, Credo Real Estate, said: "It would be useful. Any other information the market as perfect as possible to help decision-makers".
Singapore housing price index (SRPI) 2010 was launched by National University of Singapore, National University of Singapore (NUS), Institute of Real Estate has launched the new housing price index (Madrid SRPI), 24 March 2010. Singapore has a new price index, which provides information on the status of the housing market in the country.
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