You are on page 1of 10

Issue 368

Copyright © 2011-2016 www.propwise.sg. All Rights Reserved.


CONTENTS FROM THE

p2 How the US-China Trade War is Making


EDITOR
Welcome to the 368th edition of the
Singapore Property Weekly.
the Crazy Rich Chinese Poorer
Hope you like it!
p8 Resale Property Transactions
Mr. Propwise
(August 13 – August 17)

Contribute Advertise
Do you have articles and insights and articles that you’d like to share Want to get your brand, product, service or property listing out to
with thousands of readers interested in the Singapore property thousands of Singapore property investors at a very reasonable
market? Send them to us at info@propwise.sg, and if they’re good cost? Head over to www.propwise.sg/advertise/ to find out more.
enough, we’ll publish them here, on our blog and even on Yahoo!
News.
SINGAPORE PROPERTY WEEKLY Issue 368

How the US-China Trade War is Making the


Crazy Rich Chinese Poorer
By Property Soul (guest contributor)

Last Thursday, Donald Trump imposed new


trade tariffs against China with 25 percent
duties on 279 product categories worth a total
of US$16 billion. China immediately
responded by imposing retaliatory taxes on
the same value of imported US products in
333 product categories.

Who are the winners or losers?

For China, since the total amount of exports


to US (USD506 billion in 2017) is much
higher than imports from US (USD130 billion
in 2017), it is not possible to come up with a
reciprocal amount in retaliatory tariffs.

Back to Contents Page | 2


SINGAPORE PROPERTY WEEKLY Issue 368

However, China can take revenge by making But Trump is not deterred by the
it more difficult for US companies to do consequences. He threatened a third round of
business in China. tariffs on an additional $200 billion of Chinese
goods involving more consumer products.
That is why every time when there are new
tariffs coming into force, the equity market will Trump said in an interview last Thursday, “I
be under pressure, especially stock prices of think that if I ever got impeached, the market
US companies with significant business would crash. Everybody would be very poor.”
operations and sales revenue in China.
Wow, that is really a huge threat to anyone
So far US companies impacted by the trade who dares to challenge his legitimacy as the
tariffs are from the automobile, heavy US President. The S&P 500 Index just closed
equipment, food and drinks industries. Many this week at an all-time high, hitting a record
have to increase product prices and cut of 3,455 days in a bull market – the second
revenue forecasts. longest in history.

The US-China trade war will also force US According to BBC, the index has increased
retailers to sell more expensive China 300 percent after the last financial crisis. Over
products or alternative imports from other the last 9 ½ years, it has benefited from low
countries, resulting in higher prices for US inflation, low interest rates, stock buybacks,
consumers. slow wage growth and Trump’s corporate tax
cut.

Back to Contents Page | 3


SINGAPORE PROPERTY WEEKLY Issue 368

But this is good news for the rich only. In Alibaba’s Jack Ma told the media that he is
America, 84 percent of shares are owned by not worried about the trade war. He believed
the top 10 percent richest households. On the the Chinese government will help China
contrary, the wealth of median households fell enterprises to find alternative sources of US
30 percent between 2007 and 2016. imports and exports on the tariff list.

Feeling the heat of US trade tariffs in This is just a face-saving act in front of the
China western media. Read the news headlines in
mainland China and you will see a totally
The rich Americans are richer, but the poor
different picture.
Americans are poorer. In the meantime, the
rich Chinese are poorer because of the trade Increased tariffs have pushed up costs of raw
war. materials and parts for production. Some raw
materials are under sanction. There is
The Shanghai Composite is down 18 percent
discontinuation in the supply chain or
since the beginning of the year. Early this
technology transfer in some trades. Finished
month, China just lost its place as the world’s
products are piling up due to the closure of
second largest stock market to Japan. The
the large US export market.
Chinese yuan has fallen 9 percent against the
US dollar. China’s GDP is predicted to slow Those who suffer the most are manufacturers
down to 6.3 percent in the second half of the or distributors with US as the only or major
year. supplier or customer.

Back to Contents Page | 4


SINGAPORE PROPERTY WEEKLY Issue 368

They are struggling to maintain their business But Sunrise ran into financial difficulties from
and pay off their loans. 2015 when its businesses in soybean, crude
oil and petrochemicals were not doing well.
With mounting debts, the number of liquidity
With banks tightening on credit, the company
cases of local enterprises is escalating. The
could barely survive on debts. The last straw
Supreme People’s Court is now exploring
was the escalating prices of soybeans from
ways to simplify the trial of bankruptcy cases.
US in the trade war.
In mid-July, local enterprise Sunrise Group,
Earlier this month, tyre maker Yongtai Capital
the largest soybean importer in China, filed
Group also filed for bankruptcy. The 10th
for Chapter 11. Around 6,000 employees lost
largest tyre company in China was once
their jobs overnight.
ranked 32nd in world’s most powerful tyre
Sunrise’s founder Shao Zhongyi (邵仲毅) is companies by US magazine Tyre Business in
the richest man in Shandong with estimated 2016. The company was founded in 1996 and
19 billion yuan (S$3.8 billion) in net worth. employed 5,000 people at its peak.
Nicknamed the “king of soybean”, his
The US is the main export market that
company accounts for one-tenth of total
accounts for 40 percent of tyres made in
soybean imports in China. He is also a
China. But in early July, US imposed 25
political representative in the National
percent duties on tyres imported from China.
People’s Congress (equivalent to the
parliament in China).

Back to Contents Page | 5


SINGAPORE PROPERTY WEEKLY Issue 368

China has ordered provincial government to It is other countries’ problems. Let them settle
estimate the impact of the trade war on it on their own.
affected companies, while keeping things low
Trump is taking full advantage of China’s
profile for an obvious reason.
looming debt problem to attack its enemy in a
Hold your breath for what’s coming trade war with no end in sight. Analysts also
worry that the trade war and interest rate hike
In June, the tit-for-tat trade war also spread to
will have a domino effect on the collapse of
the European Union, with EU charging 25
the local economy in emerging markets. The
percent retaliatory taxes against 2.8 billion
Guardian lists China as one of the four high-
euros worth of U.S. goods, in response to
risk countries.
Trump’s trade tariffs on steel and aluminium.
EU said another 10 to 50 percent tariffs could After all, nobody has the complete picture of
be imposed on 3.6 billion euros of US imports the actual financial status of local enterprises
in three years’ time. and banks, the real impact of banks’
tightening of borrowing, and the extent of
Analysts warn a full-blown global trade war
impact of the trade war in the country.
may lead to global recession.
Now the world is looking at China. We all
Do you think Trump cares about the next
understand that, so long as China’s economy
global financial crisis or economic recession?
is intact, we can avoid the collapse of the
He cares for nothing except his own interests.
global economy.

Back to Contents Page | 6


SINGAPORE PROPERTY WEEKLY Issue 368

For the past few years, rich Chinese who I don’t think so. They have enough problems
snapped up foreign properties everywhere of their own.
are blamed for creating the property bubble in
By guest contributor Property Soul, a
many countries. When property markets are
successful property investor, blogger, and
slowing down one by one (including Australia,
author of the No B.S. Guide to Property
UK, Canada and the US), the rich Chinese
Investment.
are now blamed for bursting the bubble.

It all started with the control of capital outflow.


And now it is the impact of the US-China
trade war.

A Singapore industry stakeholder commented


that the local real estate market will continue
to grow because foreign buyers, especially
the well-to-do Chinese, are still buying.

Back to Contents Page | 7


SINGAPORE PROPERTY WEEKLY Issue 368

Non-Landed Residential Resale Property Transactions for the Week of Aug 13 – Aug 17
Postal Area Transacted Price Postal Area Transacted Price
Project Name Tenure Project Name Tenure
District (sqft) Price ($) ($ psf) District (sqft) Price ($) ($ psf)
2 SPOTTISWOODE SUITES 667 1,400,000 2,098 FH 13 BARTLEY RIDGE 463 710,000 1,534 99
2 LUMIERE 915 1,520,000 1,661 99 14 DAKOTA RESIDENCES 1,830 3,000,000 1,639 99
3 ALEXIS 592 970,000 1,638 FH 14 AVANT RESIDENCES 441 688,000 1,559 99
4 THE OCEANFRONT @ SENTOSA COVE 1,744 2,650,000 1,520 99 14 AVANT RESIDENCES 484 735,800 1,519 99
5 THE PEAK@BALMEG 3,068 4,400,000 1,434 FH 14 TREASURES @ G20 420 525,000 1,251 FH
5 DOVER PARKVIEW 1,249 1,500,000 1,201 99 14 VACANZA @ EAST 1,033 1,250,000 1,210 FH
5 PALM GREEN 1,399 1,450,000 1,036 FH 14 SIMS EDGE 872 1,050,000 1,204 FH
7 CONCOURSE SKYLINE 829 1,863,420 2,248 99 15 THE WATERSIDE 2,433 4,500,000 1,850 FH
7 SOUTHBANK 958 1,580,000 1,649 99 15 THE SHORE RESIDENCES 1,055 1,630,000 1,545 103
7 SUNSHINE PLAZA 570 861,000 1,509 99 15 TREESCAPE 603 820,000 1,360 FH
9 LLOYD SIXTYFIVE 2,422 6,800,000 2,808 FH 15 GARDEN PARK RESIDENCES 721 956,000 1,326 FH
9 PATERSON SUITES 1,679 4,130,340 2,460 FH 15 SANCTUARY GREEN 850 1,030,000 1,211 99
9 SOPHIA RESIDENCE 1,432 2,350,000 1,642 FH 15 ROSE MAISON 1,173 1,210,000 1,031 FH
9 8 @ MOUNT SOPHIA 1,378 2,130,000 1,546 103 15 TEMBELING COURT 2,379 2,070,000 870 FH
9 CASA NOVACREST 1,421 2,100,000 1,478 FH 15 LEGENDA AT JOO CHIAT 2,034 1,458,000 717 99
9 YONG AN PARK 6,878 10,000,000 1,454 FH 16 STRATFORD COURT 1,259 1,100,000 873 99
10 ST REGIS RESIDENCES SINGAPORE 1,507 3,775,000 2,505 999 16 AQUARIUS BY THE PARK 2,110 1,750,000 829 99
10 ONE JERVOIS 1,841 3,538,000 1,922 FH 17 PARC OLYMPIA 1,141 1,008,888 884 99
10 PROXIMO 1,119 1,920,000 1,715 FH 18 NV RESIDENCES 904 860,000 951 99
11 VIVA 1,528 3,438,000 2,249 FH 18 OASIS @ ELIAS 1,496 1,280,000 856 99
11 NEWTON 18 926 1,720,000 1,858 FH 18 SAVANNAH CONDOPARK 1,453 1,220,000 840 99
11 SKY@ELEVEN 2,713 4,250,000 1,567 FH 18 OASIS @ ELIAS 1,206 999,000 829 99
12 PRESTIGE HEIGHTS 344 600,000 1,742 FH 19 AMARANDA GARDENS 1,518 2,050,000 1,351 FH
12 THE MEZZO 560 780,000 1,394 FH 19 RIVERSOUND RESIDENCE 904 960,000 1,062 99
12 8 RAJA 2,024 2,480,000 1,226 FH 19 CHERRYHILL 1,044 1,100,000 1,054 FH

Back to Contents Page | 8


SINGAPORE PROPERTY WEEKLY Issue 368

Postal Area Transacted Price


Project Name Tenure
District (sqft) Price ($) ($ psf)
19 THE QUARTZ 1,163 1,220,000 1,049 99
19 RIVERSAILS 872 900,000 1,032 99
19 THE MINTON 1,216 1,250,000 1,028 99
19 BOATHOUSE RESIDENCES 915 937,000 1,024 99
19 EVERGREEN PARK 1,023 805,000 787 99
20 SKY VUE 797 1,320,000 1,657 99
20 CLOVER BY THE PARK 1,216 1,780,000 1,463 99
20 BISHAN 8 1,163 1,450,000 1,247 99
20 RAFFLESIA CONDOMINIUM 1,324 1,448,000 1,094 99
21 MAPLE WOODS 1,496 2,180,000 1,457 FH
21 HUME PARK I 904 915,000 1,012 FH
21 PINE GROVE 1,755 1,700,000 969 99
23 THE HILLIER 549 790,000 1,439 99
23 THE JADE 1,475 1,620,000 1,099 99
23 CHANTILLY RISE 947 1,000,000 1,056 FH
23 MERAWOODS 1,345 1,385,000 1,029 999
23 HILLINGTON GREEN 2,228 2,250,000 1,010 999
23 HILLVIEW REGENCY 1,119 1,030,000 920 99
25 PARC ROSEWOOD 603 655,000 1,087 99
25 ROSEWOOD SUITES 990 790,000 798 99
26 THE CALROSE 1,421 1,720,000 1,211 FH
26 TEACHER'S HOUSING ESTATE 1,195 838,000 701 999
26 HONG HENG GARDEN 2,110 1,280,000 607 FH

NOTE: This data only covers non-landed residential resale property


transactions with caveats lodged with the Singapore Land Authority.
Typically, caveats are lodged at least 2-3 weeks after a purchaser
signs an OTP, hence the lagged nature of the data.

Back to Contents Page | 9