UPDATE: Being a Singapore Tourist-Costly

There has been a resolution to the scandal that hit the Newton Circus Food Centre here in Singapore. I will begin by recapping the story. Last week a report came out the that a group of American tourist went to the hawker center at Newton Circus. They ordered 8 large Prawns and were charged S$239.00 which is about S$30 a prawn. Their total bill was S$491 at a outdoor hawker center where the average through Singapore is S$2 to S$3 a plate of food. This is a tourist attraction because it was features as one of the 1001 places to see before you die in the book of the similar title.

The stall owners were accused of overcharging and then intimidating the patrons in order to collect payment. This resulted in the patrons filing a formal complaint.

Another article ran on the 18th of March in the Straits Times which was an attempt to explain why the stall owners had not cheated anyone. It was reported that the tourist were served prawns weighing over 400 grams. And that the price for a prawn that size was warranted because it was rare. Also they denied the intimidating the patrons.

RESULTS:

The Singapore Government is quick to react. I have to commend them on that.

Channel News Asia reported that The National Environment Agency (NEA) said it had investigated the incident of overcharging of American Michael Rigby who was billed a total of S$491, including S$239 for eight tiger prawns.

The article went on to explain that Stall No. 43 (Tanglin’s Best BBQ Seafood Stall) at Singapore’s Newton Hawker Centre has had its licence suspended for three months for overcharging. And that the stall assistant involved in the incident will be barred from working at the Newton Food Centre for over a year.

My Comments:

I think the bottom line is the Stall owner failed to solve this problem when they had the chance. They probably could have made their case to the tourist but in the end maybe charge for one or two less prawns. It may had satified the tourist enough not to file a report and then this would never have built into such a big story. The tourist may have never came back but at least the bad taste that is lingering in the mind of everyone would not be there.

NEA decision was quick and reactive to the situation. Singapore is not about to allow negative press to stay on the front page expecially when everyone from Thailand, Malaysia, Hong Kong, and Indonesia are fightin for every last tourist. My only complaint would be more of a question. Why was the stall worker banned longer than the stall owner? Shouldn't the stall owner be held more accountable for the actions of their employees?

This could be a cultural reaction to a problem by saying the main cause was the stall assistant. I would put forth that the stall owner of #43 was the major cause of the problem. First by not training properly. Second either not watching their operation or watching and not caring about how they did business. The Stall owner reaps the profit but the stall assistant only gets paid a portion of the windfall. If it was better to be a stall assistant then I too would be a stall assistant.

Being a Tourist in Singapore-- Costly!!!

Something for everyone to be aware of in the downturn, some people get very desperate to earn a buck. An article posted on www.soshiok.com/articles/12091/ tells the story of some visitors to a Newton Stall. It does not say if it was the Newton Circus but I would no doubt it if it was.

The American tourist and his family were charged $239 for 8 tiger prawns. Do the math.... yes $30 for each prawn. The whole meal for four people came in around $500. I know the there is a book 1000 places to go before I die but this may be put on the list of 1000 places I went to and would never return!!!

Beware, Keep your eyes open the good deal is coming.

Industrial Property Costs Move Singapore into 5th Place

A Business Times Article reported "SINGAPORE has emerged as the world's fifth most expensive location for industrial property occupancy costs in the latest 2009 ranking by Cushman & Wakefield, up from 12th position in the 2008 ranking"

The article quoted Cushman & Wakefield Singapore managing director Donald Han saying: 'Singapore's rise up the world ranking is partly due to countries which used to be more costly moving down. In terms of rental growth, Singapore remained stable in 2008.

The article noted that Singapore's economy is export driven so forecast for he next 12 months is a dramatic reduction in demand. This reduction will no doubtly effect costs.

The next 9 to 12 months will definitely be something to watch in all segments of the property market. Articles in the past have sited take rates as steady but near the mid part of 2009 there will be several projects that will be releasing their units to their buyers which in turn will flood the market with rentals and sales. Keep your eyes open, the deals are coming!!!

Recent Headlines Here in Singapore

Mohamed Sultan Road building sold for $35.8m- A member of the family that developed International Plaza has used his company to buy the freehold Le Mercier House on Mohamed Sultan Road. It is reported by the Business times here in Singapore. The buyer's company also owns the building right next door. Analyst quoted in the article say
hat the $35.8 million sale price works out to about $900 per square foot per plot ratio based on a 2.8 plot ratio - hence a maximum GFA of about 39,000 sq ft.

Savills pre-tax profit slides 61% to £33.2m- It is reported by the Business Times that
The London-listed agent, which has more than 200 offices and affiliates worldwide, said that a collapse in real estate transaction volumes had forced it to recommend a reduced final dividend of 3 pence per share, slashing its full 2008 dividend to 9 pence versus 18 pence in 2007. Lack of inventory is also contributing to the drop in profit. Many property on the market are the distressed variety but as these go the consumers that can are thinking they should hold onto their homes instead of selling.

In the new US property market, old guys are hot- Out of New York the reports are experienced but retired agents are coming back to the front in property selling. Many of the property specialist that currently practice real estate have never dealt with a declining market so these veterans of past crisis will be the go to agents for a while. Business Times

I still can't get it out of my head that if anyone has cash that they don't need currently to live on, should look into investing into a long term property investment vehicle. It would be tragic to have this type of crisis occur in the near future but all past records indicate that it should not happen again at least in our lifetime. Opportunity is Knocking!!!!

Signs Singapore Property Market is Slowing

(Singapore) In a recent article by the Business Times published in Singapore, signs of Singapore's slowing property market are evident. With research by URA and DTZ Research, third quarters numbers reflect a continued slow down. A slide in sub-sales and foreign buyers are the first two signs noted. The third sign is the rise in HDB upgraders.

A couple of areas to clarify before we forward: HDB is the Housing Development Board who offers below market homes (condos) to Singapore Citizens and permanent residents. This attributes to Singapore's high home ownership. The URA is the government agency called Urban Redevelopment Authority. They track sales and do most of the planning for growth in Singapore. DTZ is a property consultancy.

DTZ's analysis of caveats for private home purchases shows that total sub-sales of non-landed private homes fell 8 percent to 473 units in Q3 from the previous quarter. Sub sales also accounted for a smaller 13 percent share of purchases of non-landed private homes in Q3, compared with 16 per cent in Q2.

Sub sales of high-end condos/apartments slowed down even more in Q3 2008. The number of sub sale purchases involving units priced at least $1,000 psf fell 24.2 per cent quarter-on-quarter to only 213 transactions, accounting for 45 per cent of overall sub sales of non-landed private homes in Q3, against 54 per cent in Q2 2008.

The number of foreign buyers (including permanent residents) of private homes (both landed and non-landed) slid 6 per cent quarter-on-quarter to 903 in Q3. Also, these buyers made up 22 per cent of total private home deals in the quarter, down from 25 per cent in Q2.

Some of the central areas who experienced strong sales throughout the last year and a half saw continued lower numbers. The Sail at Marina Bay got the strongest subsale interest in Q3, with 30 deals (compared with 34 in Q2). The median subsale price for the project slid 6 per cent quarter-on-quarter to $1,719 psf, following a 14 per cent slide in Q2.
Median subsale prices also fell 3 per cent for Park Infinia at Wee Nam to $1,380 psf, The Esta (slipping 5 per cent to $910 psf) and City Square Residences (down 6 per cent to $960 psf).

The article does a good job giving us the figures but it fails to adequate job of spelling out future trends. It glosses over that it will continue slides but there will be pockets where the numbers will spike. Investors need to be aware that these numbers really give us an indication of what is to come. The trends take about six months to work their way into the buying and selling of property. So I will bet my last dollar, not worth that much these days, that the numbers will be considerably worse by Q2 of 2009. Two steps forward and three steps back for the information forecasting. When the paper relies on an agency (DTZ) for it commentary then of course they will protect their current production. Please disagree with me as I have been watching the trends for three years and it seems to be deeper than every in this hole.

Recent Headlines--What Do They Mean?

US commercial property sales to fall 70%
(SEATTLE) The value of US commercial real estate sales this year will fall to US$142 billion, 70 per cent less than last year's record US$467 billion, as the economy slows and borrowing costs rise, according to Reis Inc, a New York-based real estate research firm
Occupancy costs fall in S'pore: CBRE
(SINGAPORE) The republic is still one of the most expensive places in the world to do business in, even though office occupancy costs here have dropped, the latest survey by CB Richard Ellis (CBRE) shows.
New York home prices see steep decline
(NEW YORK) The economic crisis is finally crashing New York's real estate party, forcing the city's residents to start sharing the rest of the country's pain.
HK's mortgage loans drop 40% in October
(HONG KONG) Hong Kong mortgage loans fell for a third month in October as banks tightened lending amid an economic slowdown and a freeze in global credit.
Frankfurt office property market seen softening
(FRANKFURT) The office property market in Frankfurt, Germany's banking capital, looks set to soften but is likely to hold up better than London, Europe's top financial centre, mainly because fewer bankers are losing their jobs.
Abu Dhabi moves to revive housing market
(ABU DHABI) Abu Dhabi deepened efforts to stave off economic damage from the credit crisis yesterday, launching a government- backed lender to revive the housing market as major Dubai developers were reported to halt sales.
Sellers slash asking prices for homes in UK
(LONDON) Increasingly desperate sellers slashed asking prices for homes in England and Wales by 2.9 per cent in November, pushing them 7.1 per cent below their level a year ago, a survey showed yesterday.
More steps to stimulate China market on the cards
(BEIJING) China is likely to roll out more measures before long to stimulate demand for housing, but recovery in the all-important property market is unlikely for another year.

The financial melt down that started as a ripple in the US has roared across the oceans to all parts. What does this mean? Are we near the bottom? How long will this last?

Meaning is very straight forward. We are all reaping a whirlwind of hurt that was the result of blind profit taking. The following analogy came to mind. Picture the Hoover Dam and several people at different parts of the dam. This Hoover Dam is not made of stone but is made of Gold. Each person there is picking at the dam with glee as large chunks come off. Even when water starts to come out the people just move to other areas. Well, you can guess what happens.

Now that the water is flooding and drowning some, everyone is complaining about what has occurred. Each person that was on the dam is blaming the guy with the biggest shovel---the US.

How long is this going to last? This is the Great Depression of our time. We may not experience long lines of people without jobs, waiting to get food but the younger generation will be talking about the devastation this melt down has caused. Just like my grandmother who lived through the depression, she never ate rice as an adult. Mainly because as a child she only had rice to eat so she hated it as an adult. We may see things turn around when people start to feel safe again. My guess is about 2 or more years. In some areas it could be longer.

Are we at the bottom? Is it much farther now? Not far now. We are closer to the bottom then we are to the top. I wonder how this will affect how we look at the world in 5 years or 10 years.
Lets say we are at the bottom now. Is that good? Does it take a severe problem for us to remember it longer than a few months. 9-11 is now a distant memory even as India is battle their own terrorist attack in Mumbai. I bet there is a sign of relief in the US that is not them but the wounds have scarred over from 9-11 and we soon put it behind us. If we manage to get out of this financial hole, do we soon forget as our refrigerator is filled and our car has a full tank of gas?

Human nature is a survival instinct.

Things I Love about Singapore

Whenever I go to a new city, I find you must live there for a while before you can actually say for certain you like it.  Visiting is totally different compared to living in a city.  I compare it to dating as opposed to living with each other.  When you are dating, there are sparks that blind you so you overlook the details.  It is not until you get that first place together that you magnifying glass comes out and you really see how things are going to be.

Singapore, up until January 2008, has been my date for the past several years.  I've made many visits but I did not stay longer than a month.  I had some good times and felt I was ready to make that next step.  So earlier this year, I made the move.  

I would like to say everything has been perfect but like any new relationship there has been the occasional bump and even all out brawl but I haven't left nor has Singapore.  My process here is to post my positives of Singapore because like my mother told me if you don't have anything positive to say keep it to yourself.  I will follow her advice for now but wait till she is not looking and I will post my list of things I don't particularly enjoy about Singapore later. So here they are in no particular order but how they came out of my head: 

1. Making Time to Eat: Singapore is awash with small stalls called "hawker centers" so you are never far from a small, fast cooked meal.  Most food is delivered within a few minutes of ordering.  It rivals fast food but it is freshly cooked most of the time.  
2. Family time: Singapore and its people are always busy doing something but no matter what time it is, the people here manage to see their families and eat a meal together.
3. Buses, MRT and Taxis:  Singapore has one of the best public systems for getting around.  There are bus stops everywhere and if your not taking a bus then take the Subway called the MRT.  When your in a hurry then a taxi is the next best thing.  It is a little more expensive then the first two but well worth the quickness and sometimes the conversation is better than a tour guide, therapist or financial consultant.
4. Green Green Green:  Singapore is by far one of the Greenest cities I have lived in.  I love to drive on the expressways because the trees form a natural tunnel that lets in patches of sky.  Some roads are so scenic that I could miss my turn if not for my GPS.
5. Driving on the Right Side:  At first I really disliked driving here but as time goes by I am getting the hang of it.  I think it is easier to use your mirrors while driving from the right.  Something about being right eyes dominate helps you see the side mirrors.
6. Shopping, Shopping:  Singapore has enough malls in such a small city/nation that I don't think I will ever run out of places to go on a hot, humid day.  Plus because all the major, high end brands are coveted here, you get exposed to a variety that you don't get in most cities.  If you get a chance to visit then check out Vivo City.  If you don't get lost, you will be able to tell others all about it.

This is a pretty short list but I will add more as time goes on.  I have only just begun the living together stage so I am sure there will be more epifanies in the future.  I just know that there is more to Singapore then just the Merlion and F1.

Finally, Singapore May See The Problems it....

On Thursday, July 24th, An article was publish in a local paper called Today. (Goto http://www.todayonline.com/pdf_main.asp?pubdate=20080724 ) The title of the article was "Oversupply Worse than Expected?" by Colin Tan.   Colin is head of research at Chesterton International .  And by far the bravest person to write anything about the possible Bubble in Singapore. 

I have been in Singapore since Jan 08 and I saw many of the same signs that my recent home of Las Vegas had shown.  Relatively quite prices and growth with the occasional twitch of something new would get hearts racing a bit.  Then all of a sudden, Boom, Bang and a Pop!!!, the lines started to form at builders.  They started to say they were sold out and had to make more.  People started to hear stories of their friend who just sold their home 10k above what they had asked for because two buyers came at the same time.  In rapid succession the lines double then triple and so did the asking price.  I once look at a home in the Southwest part of Las Vegas that was small with no yard.  They were asking $95 psf (per sq ft).  I thought it was high but during the Frenzy that same home went to $225 psf.  With current loans parameters, I could no longer buy a home.  Thank goodness the Banks thought of new inventive ways to lend money. (this is sarcasm for those who don't know me)

Singapore went through this same period but by my calculation and divinations, their wave started about a year and a half to two years after Las Vegas.  So what am I trying to say.....( dramatic pause insert music from your own memories)... "Singapore's Bubble is Coming".  I spoke to many agents here that all say the Singapore is different and I hope they are right.  But now I have some support.  Thank you Colin Tan.  How far will it drop?  We can only guess at this point, but all the signs are there.  I have seen the problems that arose in many areas of Las Vegas.  I can only hope there won't be the same carnage here in Singapore.

Singapore Arrivals

Our flight from Las Vegas to Singapore went by with the speed of a slow moving truck driver on his last batch of "no-doz" The final list of things to do before we left piled up to a point that I feared not being able to meet our plane on time. Past experience told us though our original flight was 8:45 am, it was wise to get there early and try to board the 7:30 am flight to LA. Luck was with us because the 8:45 am flight had been changed to 10:30 am and they wanted us on the earlier flight anyway.

Our Plane was new and each of our seats had the individual video monitor. We traveled from Las Vegas to LAX to Tokyo then on to Singapore- totalling over 20 hours of travel time. You have to hand it to the foreign air carriers, they tend to have great service and all the entertainment to help make this long flight bearable. I can tell you horror tales of my last experience with United but is was free so had to be done. So the advice today is don't just shop price for around the world trips, seek service and comfort. There is nothing worse then having to beg for water at 30,000 feet in the air.

Lets talk Airports for a second. Have you ever noticed the difference between most US airports and major airports around the world. With the exception of San Francisco and some of the others that I have not traveled to, many of the airports in the U.S. seem to be lacking in the cleaning area. I am amazed at how clean the escalators and people movers our in Japan and Singapore. I believe the term is Virtually spotless. I can't say the same for LAX. The U.S. does have some of busiest airports in the world but boy our image could use a little sprucing up. It also wouldn't hurt if some of the people working in LA would drop the attitude and be a little more courteous to people(customers) using their facilities. I am not talking about TSA people but those in the lounge areas or there providing directions.

Our excitement was mixed with the blur of being half exhausted as we landed in Singapore. We were welcomed by our Sister Aline and of course a little Singapore rain. With four large bags and two carry-on bags, thank goodness for a large van brought by another family member, Warren. Once we arrived at our close friend house, PG showed us where to drop our bags. Being that it was after midnight and we had finished with hugs and greetings, the subject turned to a main Singapore pastime, "Eating"

We had past a 24 hr outdoor noodle house just a few minutes walk from PG's house. So we grabbed a few umbrellas and set out to get a late night supper. The area we are staying at is very quaint in that most of the homes are 3 and 4 story mid-rises. Lots of lush large trees and vegetation towering throughout the outsides of the buildings, like the buildings were placed in open areas of the plant life. Did I mention that PG's home is a "Walk up" Flat? No lift!!! And we had 4 large, HEAVY, bags and two carry-on bags. No wonder I felt a twinge of hunger at 12:30 am. Not so bad after you catch your second wind and take deep breaths.

The first thing you notice at this 24hr noodle shop is that it is outdoors but under cover. The rain had moved to a drizzle as we walked but picked up after we finished eating. Every table was full except one and lots of good smells came from the open kitchen area. Jenny and I sat down as Aline and Warren placed our order with young chap looking a little wet from the local humidity or maybe it was because they were busy. There was over twenty people slurping noodles, soup and hot tea. We just added four more to their count. Within two minutes our four bowls of noodles and our big bowl of veggie soup was placed on our table. The steam rose from every item. Though it rained it is not cold by Las Vegas winter standards. I left wearing a coat in Las Vegas but wore short sleeves as we ate our quick served supper. Short of describing each bite, it tasted great. I would say it would compare to a home cooked meal but without the mess of clean up. In Singapore, these shops are everywhere and are the "fast foods" of the neighborhoods. There are the McDonald's and even a Burger King right when we came out of the airport but the difference is that the food was real good and we all ate for under $9 U.S. total.

A short walk back, another thing that is not done too much in Vegas, and we are ready to say goodnight. Through the haze of being tired and our excitement, I wonder what we will miss first from Las Vegas.

We have lots to do and many people to meet to work on our Real Estate Plans.

Removing the Clutter when relocating

I have sent so many postcards out to clients during the spring to announce the time to do spring cleaning. I wish I had sent a few to myself. I really didn't think we had too much extra stuff but boy was I wrong.

As a Realtor dealing with relocating clients, keep in mind the mountain of things that they had to do. Now they might have a service that is provided by their company but even with a service they may be distracted or concerned about the whole process. Ask them where they are at in the process. If your are showing homes or rentals to a client, they will really appreciate the attention to their struggles in relocating. You may not have to offer a solution but you may just be a ear to listen.

Here is some of the things that I had struggles with and where I found some relief.

1. Determine what you are taking and what is staying. How much do you want to store if you are not keeping a residence in your current location?



2. Contact local charities early on in the process for those items you want to donate. Sometimes the charities will not take your items. So call early!!!



3. In some cities, Craigslist is a lifesaver. If you are trying to sell items like furniture or office equipment then it is highly effective. Remember just like selling a home, Price is a factor. I even looked in Singapore to see if they use Craigslist and they do. So I may be getting some items I need that way.



4. Are your clients relocating a pet? This could add considerable frustration to your clients move. Some countries have specific rules regarding pets. We are bringing a cat to Singapore and they require health checks, tracking chips installed and a 30 day quarantine period. I only thought that bring my cat on the plane was the only worry.



5. If your clients are trying to get rid of a lot of items and they can't sell them, encourage them to call friends, family, co-workers, and church. We found a lot of help from these people.

Now these are not all the struggles we have had but I decided not to rail on the cox cable company or local cleaning companies that failed to even show up for their schedule appointments. Ask me and I will tell you but you may just shudder with fear when you hear how some people do business.

I would like to thank our family in the US, from Mom to our Sister Germaine, for all the help they provided. And especially our friends George and Mary for being a huge relief.

As we finish the last of the items before we go, we now realize that we had way too much stuff. I challenge anyone reading this if you have a garage or storage area that you have boxes that you haven't opened since the last time you moved, its time to let go. Don't take spring cleaning for granted. And remember to donate, your junk may be someones treasures.

NEXT STOP--SINGAPORE!!!

Too Sick To Move?

I just can't believe my luck some times.

The last few days have been a blur. It would be happy to say that I spent the last few days doing last minute shopping for my loved ones. Or maybe I had clients that came into town that made a big purchase. I could even be satisfied with being able to go to a Christmas party here or there. But as the picture shows, I have been in bed with the flu.


The positives of sitting in bed and watching television could be lauded by most couch potatoes but with the fact that there is just a few short days left before our move and several hundred things to get done before we leave, I did not have time for this at all. For those who don't know, Jenny and I are moving to Singapore. I have told a lot of people and I get a blank stares only about half the time. You know the kind of look that someone gives you when they think you're joking or maybe they are waiting for me to add a big --NOT at the end of my announcement. The other half tend to say" that is great I'd love to visit CHINA!!!!" aargh!!! I then tend to stare at them with the blank look, longing for the NOT joke to happen. It never comes though. Most friends are happy with the opportunity that it poses. They are encouraging for the risk that we are taking. Of course there are some friends who are worried that we are making the biggest mistake of our lives. But we agree that there really isn't a mistake that can't be overcome unless it is one that ends your life. Okay on that happy note-- back to being sick.


The best thing about being sick is getting better and of course the loving care that came from my family during my down time. I could not have asked for any more attention. But besides getting attention and rest, I was able to talk about my blog with Jenny. With her suggestions, I have decided to not only talk about investing in Singapore and Las Vegas but I am also going to use this forum to describe the details of a move for an expatriate. First hand knowledge is always the best.

So as my head clears, I will post more items to describe how this major move is taking shape and how it is affecting everyone involved. Until then-- Have a Blessed Christmas.

Phipps International -Ron Phipps is a Licensed Realtor in Las Vegas, NV and a Certified International Property Specialist.