Planet Perfecto

Planet Perfecto were a dance supergroup, formed in 1997 by Paul Oakenfold, Ian Masterson and Jake Williams. They were signed to Oakenfold’s record label, Perfecto Records.

Before forming Planet Perfecto, all three producers had made their names in the dance music scene under different guises. Most notably Jake Williams as JX and Masterson with Flexifinger. Paul Oakenfold was often viewed as being the main force behind “Planet Perfecto”, but this is probably because he was more of a household name; being successful as a DJ and having hits under numerous guises.

Planet Perfecto have not released any further material since 2001.

Youssou N’Dour featuring Neneh Cherry – 7 Seconds

“7 Seconds” is a song composed by Youssou N’Dour, Neneh Cherry, Cameron McVey and Jonathan Sharp. Released as a single by Youssou N’Dour and Neneh Cherry, the song was a huge international hit in 1994. It remained on the charts for nearly half a year and reached the top three in many countries, including the United Kingdom, France, Germany, Italy, Australia, Russia and Poland. The single stayed at #1 for 16 consecutive weeks on the French Singles Chart, which was the record of the most weeks at the top at the time. The song was a track on N’Dour’s album The Guide (Wommat), released shortly after the single. In 1996 it was included on the Neneh Cherry album Man.

Higher starting pay for fresh graduates

CNA
14 September 2011

SINGAPORE: Fresh graduates salaries are showing an upward trend this year, according to the Fresh Graduate Pay Survey by global management consultancy the Hay Group.

The findings showed engineering jobs are still in demand and fresh engineering graduates can expect to earn about $2,745 per month.

This is slightly higher than the starting salaries for jobs in the legal (S$2,738) and production (S$2,728) services for fresh graduates.

The survey in July this year drew participation from 100 companies across general industries in Singapore.

It showed that average starting salary for degree holders was S$2,593 per month.

Diploma holders are also expected to fare better this year in the jobs market.

Their average starting pay was $1,799 per month.

Design and creative jobs topped the list of hot jobs for diploma holders who can command slightly higher starting salaries of about $1,900 per month.

The survey said employers place a premium of 44.7 per cent for degree holders over diploma holders in terms of starting salaries.

The premium which employers place on a master’s degree over general degree holders is lesser at 11.1 per cent.

One in four employer surveyed said they pay premiums to male employees who have completed National Service, with the average premium at S$166.

Bengawan Solo

Domestic goddess
by Huang Lijie
The Straits Times

Mrs Anastasia Liew, 62, fumbles to hide her hands from the camera.

Wearing a single diamond ring and no nail polish, the founder and managing director of Bengawan Solo cake shop says to the photographer: ‘Can you not photograph my hands? They don’t look good. These hands have been making cakes for more than 30 years.’

Her remark is more self-conscious than vain. But really she should be prouder of her hands – they have helped build her confectionery business from the kitchen of an HDB flat into an empire with a turnover of $43 million last year.

And its cookies such as gula melaka (palm sugar) kueh bangkit and pineapple tarts will retail at London’s famous Selfridges for a week in October in a shopping aisle dedicated to Singapore food products. This is a tie-up facilitated by International Enterprise Singapore, which promotes the overseas growth of home-grown businesses.

The cake chain is also actively scouting for locations in Hong Kong and Japan to open outlets in the next two years.

She says: ‘Our business in Singapore is stable so I dare to take the risk and open in places such as Hong Kong and Japan where we are well known. Their tourists form a large part of our customers.’

Bengawan Solo’s overseas expansion plans were prematurely announced at least six years ago by her son Henry, the younger of her two children and the company’s business development director.

‘He was new to the business and spoke without thinking. I scolded him afterwards,’ she says while affectionately slapping the knee of the 31-year-old National University of Singapore business administration graduate, who sits beside her during the interview in her Holland Road bungalow.

She acknowledges that her strict demand to maintain the standard of her products delayed the company’s move into foreign markets.

Sourcing key ingredients such as fresh pandan and coconut for overseas manufacture was an obstacle and she refused to compromise by using processed substitutes.

She says: ‘Ours is not a bread business where with one dough recipe you can make many different types of bread. Our kueh and cakes have individual recipes that need to be perfected by the workers.’

Her solution: a second factory. The new factory located in Woodlands Link, built at a cost of $5.2 million, began operating this year, almost doubling its production capacity so it can now export its confections without worrying about inconsistency.

Good quality has been the hallmark of Bengawan Solo since day one.

Mrs Liew would buy fresh pandan and coconut rather than stint and use bottled pandan essence or packet coconut milk for the cakes she sold to supermarkets in the 1970s. The effort paid off. Although her cakes cost more, 45 cents compared to the market rate of 30 cents, because of more expensive ingredients, they were a hit.

‘The supermarket manager asked me why I sold my cakes so expensive but I knew mine were better, more fragrant. My cakes always sold out,’ she says with pride in her voice.

Most of Bengawan Solo’s more than 50 types of kueh and cakes, including kueh lapis and lapis sagu, continue to be handmade by more than 130 factory staff to preserve their homemade goodness.

Yet she readily embraces technology if it improves her confections.

‘In the past, you could throw my pineapple tarts against the wall and they wouldn’t break. Now, they melt in the mouth,’ she says.

The secret: machines imported from Japan in the 1990s that produce a thin and even crust.

Another key to Bengawan Solo’s success: Mrs Liew takes feedback seriously.

Earlier this year, some customers complained that her premium pineapple tarts, which use a blend of top-grade butter from Australia and Holland, tasted too strongly of butter.

Eventually she found out that the quality of the Dutch butter had slipped and she immediately reverted to using just one type of butter.

Madam Chen Lee Fung, 40, head of the icing department at Bengawan Solo and an employee of 16 years, says: ‘If we are lazy and take short cuts, she will tell us off. But she is also patient enough to show us the right way to do things when we make mistakes.

‘Once, when the cake moulds were not cleaned to her standard, she rolled up her sleeves and showed the workers how to do it.’

From young, Mrs Liew was assiduous. When she was schooling, she always made sure she was among the top three in class.

Born Tjendri Anastasia to a housewife mother and provision store owner father in Bangka Island off Palembang, Indonesia, the third of eight siblings grew up in Palembang.

After civil unrest in the country in the 1960s forced her to stop school at Secondary 3, she signed up for baking and cooking classes to upgrade herself.

Improving on the recipes she was taught, she conducted culinary classes for housewives and young women in the kitchen of her family terrace house.

The income from these classes allowed her to take more lessons in cooking as well as dress-making in Jakarta before coming to Singapore in 1970 to brush up on her English.

In 1973, she married accounts executive Johnson Liew, a fellow Indonesian Chinese based in Singapore who is 15 years her senior. They are both Singapore citizens and their two children were born in Singapore.

Two years after marriage, the restless housewife began making butter and chiffon cakes from the kitchen of her four- room flat in Marine Parade to sell to friends. It became so popular that a department store in Lucky Plaza went as far as to set up a special retail counter selling her cakes.

The store, however, did not have a licence to sell food so when the law caught up with it, it pointed its fingers at Mrs Liew, who was unaware that her unlicensed home-baking business was illegal.

She stopped her business immediately but customers kept asking for her confections, so a couple of months later, she invested a few thousand dollars to open a store in an HDB shophouse close to home. She named it Bengawan Solo after the popular Indonesian song about Indonesia’s Solo River.

A 1981 Sunday Times article praising its cakes and kueh turned the already popular shop into an overnight sensation.

All-day queue

She says: ‘People would queue outside the shop before it opened and there would still be a line at closing time when all the cakes had sold out.’

The enthusiastic response led to the opening of another outlet in Centrepoint in 1983 and her husband joined her as the company’s accounts director.

By 1987, Bengawan Solo had five stores and a central kitchen in Harvey Road. It became so successful that investors knocked on her door with huge bids to buy over the company, which has never experienced negative growth and remains in the family to this day.

The tempting offers continue to pour in for her company but she remains unmoved because she cannot bear to part with her ‘baby’.

Besides, her son is interested in carrying on the legacy.

She says: ‘When my son, then about 12, overheard that a company wanted to buy us, he said, ‘Mummy, you cannot sell it. I want to run the company.’ ‘

Her younger sister and daughter- in-law also work in Bengawan Solo as the head of the kueh-making department and store operations manager respectively.

Her daughter, Rissa, 35, who graduated with a bachelor’s degree in business from the University of Wisconsin- Stevens Point, prefers to pursue her interest in real estate for now. The mother of two is a property agent.

Although Bengawan Solo is a family- run business, not all recipes are known only to family members. The heads of certain cake departments know the recipes for products under their charge and they are told to keep them to themselves.

Sure, her recipes may leak out, Mrs Liew admits, but she prefers to trust her employees and few have betrayed her good faith, she says.

She says: ‘Many years ago there was a worker who learnt my recipes and started his own shop. But it did not take off and the shop closed down after a short while.’

Her soft-hearted nature is what endears her to her employees.

Workers with difficulty paying off their home loans for example, have received five-figure interest-free loans from her that are repaid by monthly deductions from their salaries.

Staff who encounter emergencies such as severe illness in the family have also received help from her in the form of doctor recommendations and cash.

And when busy festive periods end, she often rewards her workers with a meal and karaoke session where she lets her hair down and sings along with the group.

Mrs Elizabeth Ong, 58, director of a biomedical company who has known Mrs Liew for 10 years through volunteer grassroots activities with the Jurong GRC, says: ‘She is an unassuming person who is able to relate to people from all walks of life.’

Mrs Liew continues to be hands-on with the business, making trips to the outlets to gather customer feedback and going on inspection rounds at the factory seven days a week.

With the opening of its 43rd store at Ion Orchard next week, she certainly has her work cut out for her.

She is, however, trying to slowly hand over the reins to the next generation because she understands that age is catching up with her.

‘I certainly hope Bengawan Solo will continue as a family business through the generations and become an internationally renowned brand.’

Lighthouse Family – High

Lighthouse Family are a British musical duo that rose to prominence in the mid-1990s and remained active until the early 2000s. Vocalist Tunde Baiyewu and keyboard player Paul Tucker formed the act in 1993 in Newcastle upon Tyne, UK after meeting while studying at university. Their 1995 debut album Ocean Drive sold more than 1.8 million copies in the UK alone and established them as a popular easy listening duo throughout Europe.

They are well known for their songs: “Lifted”, “Ocean Drive”, “Raincloud” and “High”, which also reached number one on the Australian Singles Chart.

Singaporeans want to marry but don’t look actively for mate: Study

ST, 17 August 2011
By Theresa Tan

MOST Singaporean singles here long to be married, but are just leaving it to fate. Few actively hunt for a spouse, and believe that Mr or Miss Right will appear magically when Cupid strikes.

That’s one of the main findings from new research on Singaporean Chinese singles by Professor Gavin Jones, a demographer with 45 years’ experience who has been based at the Asia Research Institute here since 2003.

He also found out that most singles here will not lower their expectations of a life partner just for the sake of marrying. Many are just too busy with work to hunt for a mate, while some avoid the dating market for practical reasons.

For example, less educated men who feel they don’t have enough money to start a family or find it hard to get a girlfriend, he noted.

When it comes to finding a husband, his findings showed that Singaporean women place great emphasis on a man’s ‘economic success’. They want a man who has greater – or at least equal – earning power.

One study respondent, a security guard in his 30s who earns about $1,500 a month, said that his girlfriend broke up with him because his pay was too low.

Prof Jones noted this materialistic streak is ‘very widespread’ and ‘more marked’ among East Asian women.
Continue reading “Singaporeans want to marry but don’t look actively for mate: Study”

Avoiding gossip is secret to 113-year-old's long life

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An ex-Hongkonger, social worker known as ‘Mother Teresa of Singapore’ tries to keep a peaceful mind
Joyce Ng
SCMP Aug 08, 2011
Steering clear of gossip is the key to a long life, a 113-year-old Singaporean woman says.

Returning to Hong Kong in a wheelchair seven decades after she left the city, Teresa Hsu Chih said keeping a peaceful mind was her secret to longevity.

A well-known social worker in the Lion City, Hsu said she still occasionally did counselling work.

She was speaking as a guest at event held by the Hong Kong Health Care Association on Aging a few hours after flying in from Singapore.

Assisted by a care-giver, she can communicate slowly in Cantonese, Putonghua and English.

Daily meditation was also important, Hsu said.

“You just sit in peace. Think about what pain people suffer and what you can do to share your love,” she said.

Staying single may also have helped.

“I am not married. There’s no guy there to yell at me,” she said with a broad grin.

A vegetarian diet with lots of fruits is another secret to Hsu’s longevity. She starts a typical day by eating two raw eggs, with the yolk used as a facial mask. She likes soft fruits, such as melon, papaya and avocado.

Hsu said she did not have any disease common among the elderly, such as diabetes and osteoporosis.

Taking the flight yesterday, however, raised her blood pressure a little, as a doctor found when he measured it at the event.

Hsu is often referred to as the Mother Teresa of Singapore, where she started a non-governmental organisation to help the aged and sick in 1961.

She was born in 1898 in Guangdong and moved to Hong Kong aged 16, working as a cleaner while taking evening lessons in English.

During the second world war, she quit her job as a secretary and bookkeeper and went to Chongqing as a volunteer. At 47, she began to train as a nurse in Britain, where she worked for the next decade.

In 1961, she settled in Singapore and began her lifelong vocation of helping the needy.

Hsu returns to Singapore today.

Sim Kee Boon 沈基文

Sim Kee Boon (simplified Chinese: 沈基文; pinyin: Shěn Jīwén) was one of Singapore’s pioneer civil servants – men who worked closely with the Old Guard political leaders and played a key role in the success of Changi Airport and turned the fortunes of Keppel Shipyard around.

He graduated with Bachelor of Arts (Honours) in Economics from University of Malaya in 1953, and joined the civil service that year. By 1962, at just 33, he was made acting permanent secretary in the National Development Ministry, before taking charge of the Finance Ministry as well as Intraco, the state trading company. He was also Chairman and member of the Council of Presidential Advisers.

As Permanent Secretary at the Communications Ministry from 1975 to 1984, he made his name in the history books as the man behind was then the biggest civil project in Singapore – the construction and opening of Changi Airport – managing every aspect of the project from land reclamation to squatter resettlement. To Sim, Changi Airport project was his ‘national service’ to Singapore.

When Sim was given the mammoth task, he knew little about building an airport. Yet he approached the task as a layman, often asking questions and consulting his officers and staff. His hands-on, consultative management style kept staff on their toes, making sure they understand the importance of Changi project and nothing was to be overlooked. Civil Aviation Authority of Singapore (CAAS) chairman Liew Mun Leong remembered that Sim asked for mosaic tile samples from contractors to be displayed so staff could give feedback on tiles for the airport walls.

Sim was also known for his attention to details. As Chairman of the Civil Aviation Authority of Singapore (CAAS) for 15 years from 1984, he ensured that the airport had kept up with if not, exceed world-class quality standards. From airport management software to the texture of trolley handles, he insisted every aspect of customer experience must keep up with its impressive infrastructure. The quality of toilets at the Airport was even under his radar. He was quoted saying that the first and last point of exposure to an airport is the toilet. It gives you an impression of the country.

He also introduced free local phone calls in the transit area and the famous ’12-minute rule’. This means the first bag must be ready for retrieval 12 minutes after an aircraft grounds to a halt. He would even walk around the Changi terminals frequently, instituting the habit of ‘Management by Walking Around’ in CAAS. Mr David Lum, Managing Director of Lum Chang Holdings remembered that he would make an effort to look around airport, by reaching the place one or two hours earlier and board the plane at the last minute. And finally, he also stressed that the different players – CAAS, immigration and customs authorities, airport retailers, eateries – must work together as a team for Changi to succeed.

Sim’s success in his work did not stop with the development of Changi Airport. Between the years 1984 and 1999, Sim was serving concurrently as Chairmen of Keppel Corporation and the Civil Aviation Authority of Singapore. It came to him at first, that he would end Keppel as it was making losses then. Instead he took the reins and once again demonstrated his canniness and swift in his decision-making and implementation. Mr Lim Chee Onn, who was executive chairman of Keppel Corporation at the time attributed Sim’s visionary abilities and his optimism ‘during those very trying times’ as factors which led to the renewed growth of Keppel within 5 years. With first signs of rejuvenation for Keppel, Sim diversified Keppel’s portfolios into other fields like engineering, property, financial services as well as developing shipyards in other parts of the world. Keppel Corporation had become a success story that befits the image of a Singapore business icon.

Another success story of Sim was when he was the founding chairman of Tanah Merah Country Club, where he built it from scratch on a barren land, and into one of Singapore’s best country clubs.

As Sim and his wife Jeannette were avid golfers, Tanah Merah Country Club was like his ‘second home’. He would also personally greet new Tanah Merah Country Club members. In October 2007 his illness took a turn for the worse, and had to undergo chemotherapy. Even so, Mr Edwin Khoo, committee member at the Tanah Merah Country Club, would still see Sim regularly at the club and walking with a tube under his shirt. When he could not get himself on the greens and play, Sim would still putt around and join golf buddies for drinks most weekends for two hours.

Of his contributions to the club, Mr Khoo said Mr Sim, a passionate golfer, single-handedly turned the barren land into the “best-run club in Singapore’, and was very proud of it.

“He always had a simple message for us committee members: to run this club well, and to make the best of what we can do. It was a simple but powerful message,” he said. He added that Mr Sim went to the club’s golf course every weekend for about two hours even when he could not play golf because of his failing health.

Businessman and Singapore’s Ambassador to Turkey, Mr Chandra Das, 68, who worked directly for Mr Sim when he was in the Economic Development Board in the mid-1960s and mid-1970s, said his former boss had taught him two things.

“First, there is no such thing as black or white. There are no fixed answers and there isn’t just one way of doing things. You must be flexible. There is a lot of grey. He was a specialist in the grey,” Mr Das told The Straits Times.

“The second thing he told me when I left EDB to join Intraco: He said in EDB there are two people playing chess and you are giving advice. In Intraco, you are a chess player.”

He described Mr Sim as “a very sharp and intuitive man, and a good teacher.” “He said you can make mistakes so long as you don’t repeat them. He was also very task-oriented and a stickler for work,’ added Mr Khoo.

“I remember I took a day off to go to the Registrar of Marriages to get married. After the ceremony, he called the ROM and said: Is Chandra Das there? Tell him to come back to work.”

Added Mr David Lum, managing director of Lum Chang Holdings, where Mr Sim was adviser since 2000, : ‘Whenever he’s at any airports, he would make an effort to look around. He’d try to go to the airport about one or two hours earlier and board the plane at the last minute.’

A hands-on man with exacting standards, he made frequent unannounced walks around the Changi terminals, instituting the habit of Management by Walking Around (MBW) in CAAS. The demand for the best holds true even on the greens, as the founder chairman built the Tanah Merah Country Club into one of Singapore’s best.

Said the club’s president Tan Puay Huat: ‘He’s not satisfied until everything is near perfect.’

Ms Mavis Tan, who was personal assistant to Mr Sim for 19 1/2 years since 1984 till he retired in 2000, said he was a boss with a kind heart but had high expectations of his staff, always challenging them to come up with solutions.

“I learnt a lot under him as I always had to anticipate what he would ask. It never failed to impress me that he had such wide first hand connections in the region,’ she said.

Staff at Keppel Group also said they benefited from Mr Sim’s leadership during his 16 years tenure as Group Executive Chairman.

Leading the tributes from the group, Mr Lim Chee Onn, Executive Chairman of Keppel Corporation, said: “He developed a strong and stable platform for Keppel upon which we have been able to develop and grow at a sustained pace during these last 8 years. Keppel’s success today is a result of his vision and efforts.

‘As his colleague, I have learnt much from him through his inimitable style, particularly his great sense of optimism and cheerfulness even during very trying times.’

Ms Wang Look Fung, General Manager of the group corporate communications, added: ‘Mr Sim was respected and loved. In all his years at Keppel, he has taught me always to be first a Singaporean and then a Keppelite in my thinking process because what is good for Singapore will be good for the future of Keppel. I learned a lot from one of the finest masters in the art of communication.

‘I will always remember him as one who has a meticulous attention for details as well as an infectious joire de vivre, always affable and charming to everyone he meets.’

Mr Choo Chiau Beng, Senior Executive Director of Keppel Corp, and Chairman and CEO of Keppel Offshore and Marine, said he will remember Mr Sim as a successful man who was always able to balance well the demands of business and public service with family life and a passion for golf.

“He was an excellent boss – he demanded results but was human and caring. He always kept his cool like holing the final putt in an important 18th hole!’

He died on 9 November 2007 at the Singapore General Hospital, after a 17-year battle with stomach cancer.

Philippians 4

Finally, brothers and sisters, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable — if anything is excellent or praiseworthy—think about such things. Whatever you have learned or received or heard from me, or seen in me—put it into practice. And the God of peace will be with you.

Thanks for Their Gifts

I rejoiced greatly in the Lord that at last you renewed your concern for me. Indeed, you were concerned, but you had no opportunity to show it. I am not saying this because I am in need, for I have learned to be content whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do all this through him who gives me strength.

The Smashing Pumpkins – 1979

The Smashing Pumpkins are an American alternative rock band that formed in Chicago, Illinois in 1988. “1979” is the Smashing Pumpkins’ highest-charting single, reaching number twelve on the Billboard Hot 100 and number one on the Mainstream Rock Tracks and on the Modern Rock Tracks charts. It peaked at number fifty-four on the U.S. Hot Digital Songs in 2005, nine years after first being released. The song was nominated for the Record of the Year and Best Rock Performance by a Duo or Group with Vocal at the Grammy Awards. Pitchfork Media included the song at number 21 on their Top 200 Tracks of the 90s.

In the Name of the Father

In the Name of the Father is a 1993 biographical film directed by Jim Sheridan. It is based on the true life story of the Guildford Four, four people falsely convicted of the IRA’s Guildford pub bombings which killed four off-duty British soldiers and a civilian.

Peter William “Pete” Postlethwaite, OBE, (7 February 1946 – 2 January 2011) received an Academy Award nomination for his role in In the Name of the Father in 1993, and was made an Officer of the Order of the British Empire in the 2004 New Year’s Honours List. He died of pancreatic cancer on 2 January 2011.

Quote of the Week

“But believe you me, it only takes a few years to spend what your fathers and your forefathers have earned.”

~ Dr Lee Siew Choh (1917 – 2002)

Dr. Lee Siew Choh (simplified Chinese: 李绍祖; pinyin: Lǐ Shàozǔ; 1917 – 18 July 2002) was a politician and medical doctor from Singapore. Initially a member of the People’s Action Party (PAP), he became a leader of the breakaway Barisan Sosialis in 1961. After the Barisan Sosialis merged with the Workers’ Party in 1988, Lee stood as a Workers’ Party candidate in the 1988 general election and became Singapore’s first Non-Constituency Member of Parliament (NCMP), serving in this role until 1991.

Last Friday Night

Keenan Cahill (March 20, 1995 – December 29, 2022) was an American YouTuber and Internet celebrity who gained fame in the early 2010s for his viral videos in which he lip synced to popular songs before he went on to become a singer-songwriter and also did video collaborations with various other well known celebrities.

In July 2011, Cahill was joined backstage of Glee! Live by cast members Dianna Agron, Harry Shum, Jr., Darren Criss and Jenna Ushkowitz to lip-sync to Katy Perry’s song Last Friday Night (T.G.I.F.).

History may repeat in Hong Kong, beware the bubble: analyst

PRSEA | Jun 28, 2011

A seasoned property watcher has a dire warning when he looks at the current property scene in Hong Kong.

“I see history probably repeating itself and a correction looming large for the market,” said Koh Keng-shing, who has more than 30 years under his belt as a property professional.

During that time Koh was in charge of the professional services desk of First Pacific Davies (now Savills Hong Kong), and later served as valuation manager for consultancy Jones Lang Wooton (now Jones Lang LaSalle), according to the South China Morning Post.

His experience now tells him that a repeat of the 1997 market collapse could be in the future.

“Weaker than expected land auctions, tightened government measures on mortgage lending and increased land supply. Does that sound familiar?” asked Koh, noting those events foreshadowed the 1997 market collapse.

Currently running the real estate agency Landscope Realty, which he founded in 1995, Koh has been a member of the Royal Institution of Chartered Surveyors since 1990.

According to Koh a key turning point was the 9 June auction of the luxury residential site on Borrett Road.
The Borrett Road site sold at below market price estimates, and for Koh was a foreboding sign of things to come. The outcome recalled the trigger point for the 1997 market decline when a residential site in Wong Ma Kok, Stanley was sold on 3 June 1997 for HK$5.5 billion (US$706 million), 16 to 34 per cent below estimates and only 6 per cent above the opening bid.

Prior to the auction, sales volumes were regularly hitting record highs, but things quickly slid downwards, driven further by a government plan to increase land supply to increase the source of new homes to 85,000 per annum.

“Now, like then, we are seeing luxury home sales beginning to slow, even though prices remain high.”

On June 10, the government announced the launch of eight sites for sale, on which it expects developers to build 6,000 flats. The move coincided with an order from the Hong Kong Monetary Authority that banks should lend no more than 50 per cent on homes valued at above HK$10 million (US$1.3 million) (down from a cap of 60 per cent).

The authority for the first time also added tougher restrictions on non-resident borrowers. Momentum is also building for the government to revive its subsidised Home Ownership Scheme, suspended in 2002. Koh said the resumption of the scheme would shorten the cycle, bringing the correction forward into the second half of this year.

“Things have certainly taken a turn for the worse,” said Lee Wee Liat, head of regional research at Samsung Securities (Asia). The government’s willingness to resume building subsidised housing for sale, together with measures targeting foreign investment demand, showed a determination to cool the market down, he noted.
“A short-term correction is now possible,”

he said.

The latest data suggest a slowing in demand. Just 21 new homes were sold over last weekend — down from the 47 homes sold over the previous weekend, according to Samsung.

Secondary transaction volumes also fell to their lowest level so far this year, with just 21 flats sold at the 10 largest residential estates tracked by Midland Realty, down from 24 the previous weekend.

Developer Cheung Kong (Holdings) has lowered asking prices at its Uptown apartment block in Yuen Long by between 5 per cent and 8 per cent, putting new average selling prices in the range of HK$5,300 (US$681) to HK$5,500 (US$706) per sq ft, noted Lee in his latest research report.

But the pessimistic views are not shared by all industry players. Among the optimists is Nicholas Brooke, chairman of consultancy group Professional Property Services.

“Although the government intervention is likely to bring about some cooling in the short term, I think once this is absorbed by the market we will see renewed activity, albeit at a slower pace, in that the reality is that nothing has changed so far as the fundamentals are concerned,” Brooke said.

“I honestly do not foresee a bursting of the bubble as many describe it, but rather a gradual calming of the market as result of the combination of government intervention at both the supply and demand end of the equation, as well as a function of the likely hike in interest rates.

“The market will probably plateau by mid-2012 and there may be some downward adjustment thereafter, but I do not see this as major, given the wide international interest in Hong Kong real estate as a long-term investment medium,” he said.