Sunday, June 15, 2008

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High-end Property: Lead the Property Downward Trends

High-end property prices could fall further

High-end properties have generally outperformed the rest of the market in 2007, where prices have surged nearly 30.4% between 1Q07 and 1Q08. We attribute this strong performance to strong foreign interests in Singapore properties, which saw foreigners snatching up a record 2,262 units in 2007, and an increase in speculative activities. However, anecdotal evidence suggests that interest from foreign investors has started to wane in the wake of the global credit crunch and speculative activities have also grounded to a halt with the withdrawal of the Deferred Payment Scheme. We note that has been reflected in the recent transactions of several up-market properties. And to make matters worse, there is still a huge pipeline of projects in CCR waiting to be launched this year and this could add another 2,617 units into the market, which is more than 10 times the number of units launched in CCR in 1Q08. As such, we do not see any catalyst for near term price increase.
- OCBC Investment Research Report, June 2008





May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation

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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.

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