Cambodia Calling: Big surprise: Property prices fall in Singapore and Cambodia

Sunday, December 28, 2008

Big surprise: Property prices fall in Singapore and Cambodia

Singapore's private home prices fall: Dec 28, 2008, Private home prices fall. By JOYCE TEO

Private home prices are falling - and they will fall even more next year.

Property developers may disagree, but there is no question about it, if you ask industry observers.

The economy has slowed considerably and there have been retrenchments and wage cuts.

Sales volume of new homes looks set to reach an 18-year low this year, while supply is far from lacking...

Manpower Ministry data already shows that average monthly real earnings - pay minus the effect of inflation - fell by 17 per cent from SGD$3,982 in the first quarter to SGD$3,307 in the third quarter.

Also, on an annualised quarter-on-quarter basis, gross domestic product growth in the third quarter declined by 6.8 per cent, continuing the 5.3 per cent contraction experienced in the second quarter...

Going forward, though, there could be more speculators desperate to get rid of their properties because they do not want to be saddled with huge loans, experts say...

Novelty Group, for one, last month cut its price for the 75-unit Luma at River Valley Grove from SGD$2,800 per sq ft (psf) to SGD$1,450 psf.

In Cambodia, speculators are the big losers as property market stalls:Dec 18 2008, Written by SOEUN SAY AND GEORGE MCLEOD:

"About 5,000 land speculators have lost their fortunes after the property market downturn brought on by the global economic crisis," said Meas Tola, managing director of Angkor Real Estate of Cambodia.

He says his company's future is in question as commissions fall to almost nothing....

"The prices in Phnom Penh have been overinflated. Everyone has jumped on the greed bandwagon. ... Now we are seeing a lot of major construction projects being put on hold or cancelled," said Naim Khan-Turk, the director of research and consultancy with CB Richard Ellis in Ho Chi Minh City.

"Cambodia is going to have a reality check. Speculators have been borrowing to buy condos that aren't built and they are not going to be able to pay the banks; then the suppliers won't get paid and everyone is going to lose," he said.

No comments:

Subscribe to: Post Comments (Atom)

Some argue that "Shopping is more important than voting", and that the disposition of money is the most basic role we play in any system of economics. Some theorists believe that it is the clearest way that we express our actual moral choices, i.e., if we say we care about something but continue to buy from parties that have a high probability of risk of harm or destruction of that thing, we really don't care about it; we are practicing a form of simple hypocrisy." - Ethical Consumerism, Wikipedia

THE BLOOM MANIFESTO

1. We believe in the right of all people to a decent life, free of poverty and with access to education

2. We believe you will be enriched helping the poor

3. We believe women hold up half the sky

4. We believe workers should always be paid a fair wage

5. We believe if you knew the truth, you would not be an accessory to the exploitation of workers

6. We believe exploitation is evil

7. We believe in the power of good over evil

8. We believe in the power of the individual to bring about change

9. We believe your bag is a reflection of you - are you really a sheep?

10. We believe quality is worth paying for

11. We believe in love at first sight - at least where our bags are concerned!

12. We believe in life, liberty and the pursuit of handbags!

WHAT IS A SOCIAL ENTERPRISE?

A social enterprise has as its central objective, a social or environmental purpose, and not the obsession with profits. Yes, of course we want to be profitable, but it is so we can hire even more people in unfortunate circumstances, and offer them a shot at a better life, and not because we want to "increase shareholder value" or for the sake of lining our personal pockets. In fact, the only foreign staff (and founder/funder) does not get a salary from Bloom.

At Bloom, our mission is to alleviate poverty and save the environment at the same time, through our recycled bags.

As a social enterprise in Cambodia, we are competing with many NGOs on the one hand (which get donations) and for want of a better word, capitalistic businesses (which drive down costs in an effort to maximise profits). We recognise and accept the challenges that face all business, but are committed to principles of Fair Play, and will NEVER sacrifice those principles in order to be competitive. This means, for instance, we will never sacrifice workers' pay just so our bags will be cheaper. The average pay at Bloom today is 2.13 times the market rate.

So please, before you ask us to discount our bags, remember that we are not a minimum wage factory; we are a social enterprise. If you want a cheap factory-made bag, Bloom is not what you are looking for. If you agree that workers (where-ever they are--Singapore, Germany, France, the US) should always be paid fairly and are not here to produce goods and services at low wages for the profit of big business, then please consider Bloom. Bloom bags are all hand-made by our small team who spend our working hours dreaming up and making bags.

All Bloom profits go to our Khmer staff and to growing Bloom. Ultimately the aim is for Bloom to be a workers' cooperative, where workers own, manage, grow the business and share the profits.

WHO WE ARE

Bloom is a social enterprise established in Sept 2006 with the intention of providing fair-paying jobs to abandoned, widowed and divorced Cambodian women. Bloom is not a factory. We are a small workshop of nine people who work closely as a team to produce original, quality handmade bags made from recycled rice and fish feed bags.

Every Bloom Bag is meticulously designed, cut, glued and sewn by the Bloom team in our workshop in Phnom Penh. Each bag is handmade with love and attention to detail (the Bloom team really enjoys making bags!), resulting in beautiful, unique bags we are sure you will love and your friends will want!

All Bloom Bags are handmade by our team. We do not outsource to other sewers because we want to be in control of the supply chain, to ensure that everyone involved in making a Bloom Bag is paid fairly. There is no middleman taking a cut and passing on the work to another.

Please Visit Bloom's new workshop off Norodom Boulevard in Phnom Penh and our retail outlets. Bloom is next to Warehouse Pub in the Old Market Area in Siem Reap and at No.808 Russian Market, Phnom Penh.