The Origins of Indian Property Market Bubble can be traced to the interest rate reductions made by the NDA Government in the years following 2001. Home Loan Rates fell to multi year lows of 7.5% in early 2004. This prepared the basis for the massive increase in Real Estate Property Prices across India. Low Interest rates triggered huge interest in individuals to borrow to own their own homes and this started increasing demand for quality real estate across India, after 2003.
The Indian Property Market has been sizzling since March 2005, when the current UPA government decided to open FDI in Real Estate. The market has been growing at a dizzying rate of 100%+, what with every NRI who ever laid his hand on the green paper wanting to eat a piece of the pie!
The market is growing rapidly with both established players such as Omaxe, DLF, Parasvnath and new players such as Emgreenlots of builders are fake even FIR has been registered against EMgreen directors and were arrested in chandigarh city.
However many experts feel this is a bubble waiting to burst, and Indian property prices are likely to shed about 20-25% in the next 6-12 months. Some apartments in key Indian Cities such as Mumbai and Delhi are getting as expensive as those in the Advanced Nations.
Friday, April 27, 2001
Saturday, April 15, 2000
Listed on the main board of SGX, Chip Eng Seng Corporation Ltd
Listed on the main board of SGX, Chip Eng Seng Corporation Ltd is one of Singapore's leading construction companies. Its scope of business includes construction, property development and property investment. The Group’s construction arm, Chip Eng Seng Contractors (1988) Pte Ltd is a BCA A1 general building contractor that is eligible for public project tenders of unlimited value. Leveraging on its competencies in building methodology and project management, the group diversified into complementary area of property development in 2000. This business diversification strategy was initiated to broaden the Group's business scope and earnings.
The Group’s property development and investment arms are headed by CEL Development Pte Ltd (formerly known as Chip Eng Leong Enterprise Pte Ltd). It has since undertaken several development projects in Singapore and Australia, on its own and with its partners.
In 2006, Chip Eng Seng was awarded Winner for the "Most Transparent Company" under the construction category organised by Securities Investors Association of (Singapore). This is the third time that the Company is recognised for its unwavering commitment to corporate transparency. In 2005 and 2004, the Company was respectively the Runner-Up and Winner in this category.
The Group's construction arm, Chip Eng Seng Contractors (1988) Pte Ltd was also accorded the Housing & Development Board's Quality Award 2005 - a fitting testimony to the professional quality that the Group delivers for its construction undertakings.
The Group’s property development and investment arms are headed by CEL Development Pte Ltd (formerly known as Chip Eng Leong Enterprise Pte Ltd). It has since undertaken several development projects in Singapore and Australia, on its own and with its partners.
In 2006, Chip Eng Seng was awarded Winner for the "Most Transparent Company" under the construction category organised by Securities Investors Association of (Singapore). This is the third time that the Company is recognised for its unwavering commitment to corporate transparency. In 2005 and 2004, the Company was respectively the Runner-Up and Winner in this category.
The Group's construction arm, Chip Eng Seng Contractors (1988) Pte Ltd was also accorded the Housing & Development Board's Quality Award 2005 - a fitting testimony to the professional quality that the Group delivers for its construction undertakings.
Tuesday, April 27, 1999
Chinese property bubble
China's economic growth over the past few years has been phenomenal. Growth in international trade has created a demand for property that has hitherto been unheard of. Urban centres such as Shanghai and Beijing have witnessed a growth in prices to the point where many local people would now be unable to purchase the homes in which they live.
There is a further dimension to the Chinese property market, which is seldom mentioned in the Western media: all the land in China is state owned and there is no existing law in China permitting, let alone protecting, the acquisition of private land ownership.
The “purchasing” of a property in China does not result in the ownership, either in part or in whole, of the property or the land that the property in question is built upon. Rather, the “purchaser” receives a lease of a certain length (normally around 70 years) for the exclusive (but transferable) right to the usage of the property. The law governing what happens after the present lease expires is still being formulated and is one of the hotly debated issues in the Chinese law community.
Further more, as all lands are state owned, the city or provincial government officials in China possess extraordinary powers when it comes to land usage planning and allocation. This is a country where sections of a city can be arbitrarily demolished and rebuilt with scant consultation (if any) with the people concerned. At the time of writing, the law protecting the property leaseholder in situations where the land it locates on is to be redeveloped is ambiguous at best.
Therefore, after taking into account the fact that the Chinese “property market” consists entirely of the trading of these time limited land leases of uncertain future, the magnitude of their recent boom in price, and the potential size of the housing bubble created as a result, is perhaps beyond comparison to any other country in the world at this time.
There is a further dimension to the Chinese property market, which is seldom mentioned in the Western media: all the land in China is state owned and there is no existing law in China permitting, let alone protecting, the acquisition of private land ownership.
The “purchasing” of a property in China does not result in the ownership, either in part or in whole, of the property or the land that the property in question is built upon. Rather, the “purchaser” receives a lease of a certain length (normally around 70 years) for the exclusive (but transferable) right to the usage of the property. The law governing what happens after the present lease expires is still being formulated and is one of the hotly debated issues in the Chinese law community.
Further more, as all lands are state owned, the city or provincial government officials in China possess extraordinary powers when it comes to land usage planning and allocation. This is a country where sections of a city can be arbitrarily demolished and rebuilt with scant consultation (if any) with the people concerned. At the time of writing, the law protecting the property leaseholder in situations where the land it locates on is to be redeveloped is ambiguous at best.
Therefore, after taking into account the fact that the Chinese “property market” consists entirely of the trading of these time limited land leases of uncertain future, the magnitude of their recent boom in price, and the potential size of the housing bubble created as a result, is perhaps beyond comparison to any other country in the world at this time.
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