Friday, July 4, 2008

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June Property Sales Increase In New Condo Launches

It's obvious that there's quite a lot of pent-up demand in the Singapore property market. Since the launch of Dakota Residences about 2 weeks, property sales have been brisk.

Here are some news headlines:
Clover by the Park: Buyers snap up 195 units in Bishan condo
IN A welcome departure from the generally quiet market so far this year, the latest property launch - of the 616-unit Clover by the Park - has generated sales of 195 units so far. ....Buyers were mostly families upgrading from HDB flats. They picked up units priced between $907,000 and $2.68 million, or $599 per sq ft (psf) to $858 psf, said Sim Lian Land’s executive director, Ms Diana Kuik.
- Business Times - 30 Jun 2008

Encouraging sales indicative of improving home buying sentiment
Encouraging sales at recent project launches to boost June sales. We
understand from City Development management that around 15 out of the 77
units in the recent soft launch of the Shelford Suites project near the upcoming
Botanic Gardens MRT have been sold at ASP around S$1500-1600 psf. Earlier,
according to The Business Times, Sim Lian Group has sold around 100 units at
its 99-year leasehold Clover By The Park condo last week out of the 308 units
launched at an ASP of S$750 psf. Since the launch of Dakota Residences last
Friday, Ho Bee has sold 95 units in the project at ASP of $976 psf. The sales of
the 210 units in these three projects alone will boost the Jun sales numbers.
- by investment analyst at UOB Kay Hian Research


Well, before you decide to join the herd, you may want to ponder over what a forumer said about the brisk sales:
"Once the buyers who are comfortable with current prices are exhausted, sales will dwindle again. Then developers will have to cut prices again to the next lower level to re-ignite sales.
The facts still are that prices had shot up too high too fast to be sufficiently supported. Price pressure will still be on the downside.
Why be kan-cheong? If you cannot afford private, stay in HDB. Lots of meirts to that. You can probably afford a much bigger flat than if you went private. Cheaper, devalues less than private 99y condos. Government gives you more rebates, and if you fall ill next time, means testing will also mean your hospital bill is subsidised more.
On the other hand, if prices do come down another 20%-30% (not unreasonable given that prices overshot 30-100% last two years, and since world economy is in trouble) then it may make sense to buy in.
"



May also want to read:
99-year leasehold Properties Uncertain Top Up: Government
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Your Property Investment Determines Your Financial Success in Your Life

4 comments:

Anonymous said...

sigh...i oso noe now shldnt buy...cos the price is so high...

sigh...i oso knoe hdb is safer...but but, the prices from resale are equally crazy! and I m sure they will drop too!!!

why those idiots still wan to make a fake impression tat e prices r still holding???

when do you tink the prices are gg to drop?

*desperate home seeker*

Smart Buyer said...

Dear Anonymous,
I can understand your frustration.

I guess you're a first-time home buyer.

If I were a first-time home buyer, I'd just join the BTO queue.

The private property market and the HDB resales market probably belong to the cash-rich enbloc-sellers now and it simply won't make financial sense for a first-time home buyers to compete with them.

Furthermore, developers have held back launches to squeeze the buyers further.

In the HDB resales market too, home buyers will find themselves competing with foreigners' demand for rental housing.

These conditions clearly work against a "desperate home seeker" like you. If you can affordable to wait, it's best that you wait.

It'd probably take a sharp economic downturn to bring property prices down to earth. Personally, I think this is likely by next year.

My best wishes.

Anonymous said...

but but but...HDB refuse to adjust the income ceiling of $8000 lei...maybe me or my partner should go unemployed, jus to get a flat....

*sigh*

Smart Buyer said...

Sigh... agree with you that it's probably time for HDB to review its income ceiling.

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