Wednesday, April 14, 2010

Gem demand

Sales of diamonds in Belgium

in USD
China $737mn
US $695mn
Israel $274mn
Switzerland $237mn
UAE $140mn
India $139mn
UK $66mn
France $56mn
Italy $55mn

Tuesday, April 13, 2010

AirAsia vs SIA

Since beginning full-scale operations in 2002, AirAsia has grown sharply by offering low-cost flights. As of the end of 2009, the company served 136 cities in a total of 18 countries and areas. AirAsia saw its passenger traffic jump 24% to about 22.7 million last year, topping Singapore Airlines Ltd.'s roughly 16.3 million to become the biggest airline company in Southeast Asia.

Jakarta: Vehicles and Pollution

8.5mn residents
9.9mn vehicles (including motorbikes)

Causing major pollution issues

China's Real Estate

China cost of 100sqm house over average annual household income has been hovering around 9-11x for the past 10 years.

Beijing is 16x, in most cities, more than 8x

However Chinese citizens have government subsidies or parents to help them coup with such high prices. Mostly people afford their 1st private home from their sale of public housing, which is usually their first home
Or enjoy parent support when buying their 1st private home

Housing composition
35% public housing
13% rented public house
9% economic houses
23% commercial houses
5% rented commercial houses
11% self constructed
4% others

Downpayment of homes usually 3x annual income
mortage servicing cost is 50% of disposable income

High price to income ratio in China supported by 50m upper income households, which is 8x annual household supply of 6mn units

Home buyers have very little leverage, consumer debt only 16% of GDP
US consumer never hit below 20% of GDP by contrast

There is a risk of more than the usual in 6mn units of supply bcos municipal govt gets 30-50% of revenue from land sales and are unlikely to stop selling land

But 1% increase in urbanization rate means 4-5m new urban households every year - hence the supply glut would be covered in time

There are talks of introducing a 1.5% property tax based on 70% of buying price

Wednesday, April 7, 2010

Alkaff Mansion

Top bid rent $79,251
by LES

SLA rent guide $28,100 per month

2nd bidder $41,300 br Frangance Group


Gross floor area 13,000 sq ft
Land area 97,000 sq ft

LES psf $6
SLA psf $2