Wednesday, July 30, 2008
About this Blog
URA’s data analysed rents in developments with at least 100 units and that have 10 or more leases each in the first and second quarters this year. Of the 124 projects in this category, 80 - or about 64 per cent - saw rents drop between the two quarters.
District 1-4 (City, Tiong Bahru, Mt Faber) -2.80%
District 5 (West Coast) -3.17%
District 7-8 (Beach Rd, Farrer Park) 3.35%
District 9-11 (Orchard, River Valley, Newton) -0.96%
District 12 (Toa Payoh, Novena) * 34.73%
District 14 (Paya Lebar, Eunos, Kembangan) -4.44%
District 15-16 (East Coast, Bedok) -3.45%
District 17-18 (Changi, Pasir Ris, Tampines) -5.35%
District 19-20 (Bishan, Ang Mo Kio, Hougang) -1.24%
District 21-22 (West) -1.05%
District 23-28 (North and northwest) -2.61%
(Notes: The data only compares projects with at least 10 leases signed in each quarter. In total, there were 124 projects that qualified; 80 of them saw rents fall in the quarter, 39 saw rents rise, and five stayed the same.* For District 12, only one project – Trellis Towers – had at least 10 leases signed in each quarter. )
As seen from the data above, rent decline is greatest in the two areas most popular with expats - East Coast and the central region around Orchard Road.
(Median rent in $psf shown in brackets. Information extracted from the Singapore Property Forum.)
Vista Park (Buona Vista) -15.13 (2.58)
Avila Gardens (Changi) -14.89 (2)
Pine Grove (Mt Sinai) -14.75 (2.08)
Duchess Crest (Bukit Timah) -12.42 (4.09)
Palm Gardens (Choa Chu Kang) -11.76 (2.1)
Trellis Towers (Toa Payoh) 34.73 (4.5)
Pandan Valley (Ulu Pandan) 24.06 (2.63)
The Bencoolen (Bugis) 17.61 (5.81)
Summerhill (Upp Bukit Timah) 14.34 (2.95 )
The Mayfair (Jurong East) 14.13 (3.15 )
URA overall rental data, including those projects with less than 10 leases, showed that rents across the country rose 2.5% in the second quarter. This data should be interpreted in the light that for projects with more than 10 leases, we have an overwhelming number of losers over gainers.
Rents are likely to fall further as the stock of homes available for rental rises. Projects to watch are those which were heavily bought into by investors, such as the 640-unit Icon in Tanjong Pagar, a 430-unit tower at Sail @ Marina Bay, the 600-unit Citylights at Lavender, and the 546-unit Sea View in Amber Road.
May also want to read:
Information of all HDB-DBSS, including future DBSS
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Condominium Rents Fell in almost All Districts: 2Q 2008 URA data
According to the latest data from the Urban Redevelopment Authority (URA), 2 in 3 projects with a substantial number of leases saw rents drop in the second quarter from the previous quarter.URA’s data analysed rents in developments with at least 100 units and that have 10 or more leases each in the first and second quarters this year. Of the 124 projects in this category, 80 - or about 64 per cent - saw rents drop between the two quarters.
Fall in rents by Districts
District 1-4 (City, Tiong Bahru, Mt Faber) -2.80%
District 5 (West Coast) -3.17%
District 7-8 (Beach Rd, Farrer Park) 3.35%
District 9-11 (Orchard, River Valley, Newton) -0.96%
District 12 (Toa Payoh, Novena) * 34.73%
District 14 (Paya Lebar, Eunos, Kembangan) -4.44%
District 15-16 (East Coast, Bedok) -3.45%
District 17-18 (Changi, Pasir Ris, Tampines) -5.35%
District 19-20 (Bishan, Ang Mo Kio, Hougang) -1.24%
District 21-22 (West) -1.05%
District 23-28 (North and northwest) -2.61%
(Notes: The data only compares projects with at least 10 leases signed in each quarter. In total, there were 124 projects that qualified; 80 of them saw rents fall in the quarter, 39 saw rents rise, and five stayed the same.* For District 12, only one project – Trellis Towers – had at least 10 leases signed in each quarter. )
As seen from the data above, rent decline is greatest in the two areas most popular with expats - East Coast and the central region around Orchard Road.
Worst Hit Condos (with sharpest decline in % in rent)
(Median rent in $psf shown in brackets. Information extracted from the Singapore Property Forum.)
Vista Park (Buona Vista) -15.13 (2.58)
Avila Gardens (Changi) -14.89 (2)
Pine Grove (Mt Sinai) -14.75 (2.08)
Duchess Crest (Bukit Timah) -12.42 (4.09)
Palm Gardens (Choa Chu Kang) -11.76 (2.1)
Best Performing Condos (with greatest increase in % in rent)
Trellis Towers (Toa Payoh) 34.73 (4.5)
Pandan Valley (Ulu Pandan) 24.06 (2.63)
The Bencoolen (Bugis) 17.61 (5.81)
Summerhill (Upp Bukit Timah) 14.34 (2.95 )
The Mayfair (Jurong East) 14.13 (3.15 )
URA overall rental data, including those projects with less than 10 leases, showed that rents across the country rose 2.5% in the second quarter. This data should be interpreted in the light that for projects with more than 10 leases, we have an overwhelming number of losers over gainers.
Rents are likely to fall further as the stock of homes available for rental rises. Projects to watch are those which were heavily bought into by investors, such as the 640-unit Icon in Tanjong Pagar, a 430-unit tower at Sail @ Marina Bay, the 600-unit Citylights at Lavender, and the 546-unit Sea View in Amber Road.
May also want to read:
Information of all HDB-DBSS, including future DBSS
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, July 29, 2008
About this Blog
The following are some views expressed in the Singapore Property Forum:
Forumer 1:
The IR effect on condo demand is only 8,800+ units on an optimistic estimate. The holdings of investors plus projects in the pipeline far exceed that number.
Most of the IR workers will be staying in HDB. If you want to catch them, go invest in HDB.
Forumer 2:
Very sharp analysis there. Good job!!
8,800 is a very optimistic estimate base on 5 foreigners per household. I think it's more like 6-10 per household cos those are the limits set by HDB which should reduce housing demand to half or less.
Don't forget that shrinking growth in other sectors will also reduce number of foreigners. The actual demand will indeed be much smaller than this estimate.
IR will itself take time to become profitable. In fact, it's a big risk itself.
For F1, it has benefited our neighbours. So how cost competitive can we be??
Take an honest, rational look. Can the jobs generated justify the current property prices for the mass market?
High end properties would depend if we can attract the really super-rich. It's a high risk bet.
Most of the jobs would support HDB demand, as the report said. It's a commonsensical thing that speculators failed to see during the heat of 2007. They assumed that all these IR jobs would support private property prices at $1000psf - $1500psf.
The mid-range executives may be paid $4K-$5K. Can they afford the mass condos rent of $4-$5K to justify condos of >$1M to give rental yield of 4-5%?? They'd probably also squeeze into HDB flats, unless landlords of mass condos sponsor them which landlords will have to as vacancy rate increases, rather than leave their condos vacant.
Nobody can deny that IR will add value to our economy but up to this point, I think it's largely over-blown.
We must also not let this sort of exuberence cause us to overlook the risks of prolonged global economic slowdown. Would-be-buyers should have their feet planted in the ground. For one thing, it does not look like the IR will create a lot of well-paying jobs for Singaporeans to help them pay for the skyhigh property price.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Marina Bay Integrated Resorts Estimated Housing Demand ~8800 units with most going to HDB flats rather than Private Properties
According to an estimate by Ku Swee Yong, director of marketing and business development at Savills Singapore; the minimum requirement for housing demand generated by the IRs would translate to 8,800 units between 2009 and 2010.The following are some views expressed in the Singapore Property Forum:
Forumer 1:
The IR effect on condo demand is only 8,800+ units on an optimistic estimate. The holdings of investors plus projects in the pipeline far exceed that number.
Most of the IR workers will be staying in HDB. If you want to catch them, go invest in HDB.
Forumer 2:
Very sharp analysis there. Good job!!
8,800 is a very optimistic estimate base on 5 foreigners per household. I think it's more like 6-10 per household cos those are the limits set by HDB which should reduce housing demand to half or less.
Don't forget that shrinking growth in other sectors will also reduce number of foreigners. The actual demand will indeed be much smaller than this estimate.
IR will itself take time to become profitable. In fact, it's a big risk itself.
For F1, it has benefited our neighbours. So how cost competitive can we be??
Take an honest, rational look. Can the jobs generated justify the current property prices for the mass market?
High end properties would depend if we can attract the really super-rich. It's a high risk bet.
Most of the jobs would support HDB demand, as the report said. It's a commonsensical thing that speculators failed to see during the heat of 2007. They assumed that all these IR jobs would support private property prices at $1000psf - $1500psf.
The mid-range executives may be paid $4K-$5K. Can they afford the mass condos rent of $4-$5K to justify condos of >$1M to give rental yield of 4-5%?? They'd probably also squeeze into HDB flats, unless landlords of mass condos sponsor them which landlords will have to as vacancy rate increases, rather than leave their condos vacant.
Nobody can deny that IR will add value to our economy but up to this point, I think it's largely over-blown.
We must also not let this sort of exuberence cause us to overlook the risks of prolonged global economic slowdown. Would-be-buyers should have their feet planted in the ground. For one thing, it does not look like the IR will create a lot of well-paying jobs for Singaporeans to help them pay for the skyhigh property price.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
ALL REAL ESTATE AGENTS! BEWARE!
BRAVO BUILDING AND CONSTRUCTION PTE LTD71, LORONG 23.
GEYLANG.
DIRECTORS PANG YEE HONGPOH
CHING YEECHOO CHOON (RESIGNED 2003)
YEO ENG TIONG (RESIGNED 2005)
COMPANY SECRETARY ALICE YIP SIEW HAR
Bravo Building and Construction Pte Ltd will not pay commission to Agents for selling their properties.
Agents who have worked for them are now still waiting, after two years, to be paid!
Likewise, they have re-registered a new company Abacus Development Pte Ltd to sell their new apartments launched recently……
ABACUS DEVELOPMENT PTE LTD
71, LORONG 23. GEYLANG
DIRECTORS PANG YEE HONG
ABDUL JABBAR BIN KARAMDIN (RESIGNED APRIL 2007)
COMPANY SECRETARY POH CHING YEE
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Real Estate Agents Not Paid Commission by Developer Bravo?
The blogger has received the following comment from an anonymous poster. The blogger has not verified the validity of the content in the comment. Readers are advised to exercise their own judgement:ALL REAL ESTATE AGENTS! BEWARE!
BRAVO BUILDING AND CONSTRUCTION PTE LTD71, LORONG 23.
GEYLANG.
DIRECTORS PANG YEE HONGPOH
CHING YEECHOO CHOON (RESIGNED 2003)
YEO ENG TIONG (RESIGNED 2005)
COMPANY SECRETARY ALICE YIP SIEW HAR
Bravo Building and Construction Pte Ltd will not pay commission to Agents for selling their properties.
Agents who have worked for them are now still waiting, after two years, to be paid!
Likewise, they have re-registered a new company Abacus Development Pte Ltd to sell their new apartments launched recently……
ABACUS DEVELOPMENT PTE LTD
71, LORONG 23. GEYLANG
DIRECTORS PANG YEE HONG
ABDUL JABBAR BIN KARAMDIN (RESIGNED APRIL 2007)
COMPANY SECRETARY POH CHING YEE
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Monday, July 28, 2008
About this Blog
In Mar 2005, HDB again reduced the minimum occupation period (MOP) for subletting of whole flat from 15 years to 10 years for all HDB flat owners even if they have an outstanding HDB loan; and from 10 years to 5 years for owners without an outstanding HDB loan. The relaxation is aimed at giving flat owners greater flexibility to monetise their flat. It will also enlarge the rental market for HDB flats and provide more rental housing options for those who are not ready to buy a property yet. With this relaxation, about 537,000 flats can potentially be sublet.
In 2007, when the influx of foreign workers began to cause an acute shortage in housing, HDB again relaxed the sublet policy. HDB flat owners can now sublet their whole flats after meeting the Minimum Occupation Period of 5 years for flats bought from HDB or 3 years for flats bought from the open market.
With each sublet policy relaxation, more and more HDB flats were made available for subletting; yet the HDB rental demand remains strong. While rental growth in private property has started to moderate, HDB flat sublets continue to see eye-popping increase in rental yield. In effect, the HDB rental market has taken away a substantial number of would-be tenants for private properties. This has effectively depreciated the rental value of private properties for private property investors making them a lot less attractive than in the 90s.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
HDB Sublet Of Whole HDB Flats has appreciated HDB flat value & depreciated value of Mass Market Private Properties esp. Condos
In the 1990s, the rental market was largely exclusive to the private property market, mainly private condos. Proud condo owners could fetch as much as 10% rental yield during those prime years. But today, this has changed dramatically with the entry of the HDB flats into the rental market.HDB Sublet of Whole HDB Flats effected on Jan 1 2003
Prior to this, the subletting of whole HDB flats was generally not allowed, except under certain circumstances, e.g. when the lessees are working or studying abroad. Starting from 1 Jan 2003, owners of all HDB flats who have occupied their flats for 15 years or more will be able to sublet their whole flat provided the flat owners have no outstanding loan from HDB. This is relaxed further in the later part of the year to include flat owners who have an outstanding loan from HDB provided they've occupied the flats for more than 15 years, and for HDB flat owners who do not have an outstanding HDB loan, they can sublet their whole flat after occupying it for at least 10 years. Those with an outstanding HDB loan can qualify by either fully redeeming their loan or refinancing their loan with the banks.In Mar 2005, HDB again reduced the minimum occupation period (MOP) for subletting of whole flat from 15 years to 10 years for all HDB flat owners even if they have an outstanding HDB loan; and from 10 years to 5 years for owners without an outstanding HDB loan. The relaxation is aimed at giving flat owners greater flexibility to monetise their flat. It will also enlarge the rental market for HDB flats and provide more rental housing options for those who are not ready to buy a property yet. With this relaxation, about 537,000 flats can potentially be sublet.
In 2007, when the influx of foreign workers began to cause an acute shortage in housing, HDB again relaxed the sublet policy. HDB flat owners can now sublet their whole flats after meeting the Minimum Occupation Period of 5 years for flats bought from HDB or 3 years for flats bought from the open market.
With each sublet policy relaxation, more and more HDB flats were made available for subletting; yet the HDB rental demand remains strong. While rental growth in private property has started to moderate, HDB flat sublets continue to see eye-popping increase in rental yield. In effect, the HDB rental market has taken away a substantial number of would-be tenants for private properties. This has effectively depreciated the rental value of private properties for private property investors making them a lot less attractive than in the 90s.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Saturday, July 26, 2008
About this Blog
There is a distinct possibility that we are at the start of a deeper multi-year correction, which makes buying in the near future a bad idea.
Prices on the back of 2006-2007 rises are unsustainable even with a 10-20% fall back. Supply was low (then), but it is rising. Singapore, and the world, economy was blistering, but now slowing. DPS and rising prices encouraged inflows of hot money into property sector (then). That has now gone.
The higher and faster you rise, the more unstable those prices are, and how very high and fast prices had risen!
Mass market homes are not immune. They too had risen significantly last year. Some of this was due to the 'overflow' effect of buyers from prime regions being outpriced to cheaper regions. Now that prime regions are coming down, and may have lots more to fall, I'd expect mass market to suffer too. Of course, mass market buyers are also price and economy sensitive.
Bad times don't last forever, but we may be in for a global downturn after the multi-year global multi-year boom. Economic benefits of IR may be a mirage, especially if it fails to bring in sufficient tourists amidst weakening economies, more expensive travel ad hotel costs, and competition from regional casinos.
Posted by Anonymous at the Singapore Property Forum.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Private Property Price into Deep Multi-year Correction?
How deep does this rabbit hole go?There is a distinct possibility that we are at the start of a deeper multi-year correction, which makes buying in the near future a bad idea.
Prices on the back of 2006-2007 rises are unsustainable even with a 10-20% fall back. Supply was low (then), but it is rising. Singapore, and the world, economy was blistering, but now slowing. DPS and rising prices encouraged inflows of hot money into property sector (then). That has now gone.
The higher and faster you rise, the more unstable those prices are, and how very high and fast prices had risen!
Mass market homes are not immune. They too had risen significantly last year. Some of this was due to the 'overflow' effect of buyers from prime regions being outpriced to cheaper regions. Now that prime regions are coming down, and may have lots more to fall, I'd expect mass market to suffer too. Of course, mass market buyers are also price and economy sensitive.
Bad times don't last forever, but we may be in for a global downturn after the multi-year global multi-year boom. Economic benefits of IR may be a mirage, especially if it fails to bring in sufficient tourists amidst weakening economies, more expensive travel ad hotel costs, and competition from regional casinos.
Posted by Anonymous at the Singapore Property Forum.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
Note that the highest RPI achieved to date is 136.9 in 1996, 4th quarter; due largely to the spillover speculation from the private property market. Demand was largely for bigger HDB flats like executive flats then. This in turn caused many Singaporeans to apply for upgrading to larger HDB flats with the belief that they'd make more money. This resulted in over-supply of new HDB flats in the subsequent years.
With the outbreak of the Asian Financial Crisis in 1997, coupled by the gross over-supply; HDB resale flats plunged in 1997-1998 for the first time.
HDB Resale Flats Price Index 1990 - 2008: Graph & Chart
RPI (Resale Price Index) Graph for HDB resale flats from 1990-2008
Note that the highest RPI achieved to date is 136.9 in 1996, 4th quarter; due largely to the spillover speculation from the private property market. Demand was largely for bigger HDB flats like executive flats then. This in turn caused many Singaporeans to apply for upgrading to larger HDB flats with the belief that they'd make more money. This resulted in over-supply of new HDB flats in the subsequent years.
With the outbreak of the Asian Financial Crisis in 1997, coupled by the gross over-supply; HDB resale flats plunged in 1997-1998 for the first time.
Table of RPI for HDB resale flats from 1990-2008
| HDB RPI (Resale Price Index) 1990-2008 | ||||
| 1Q | 2Q | 3Q | 4Q | |
| 1990 | 33.6 | 33.8 (0.6% ) | 34.6 (2.4% ) | 34.1 (-1.4%) |
| 1991 | 34.5 (1.2% ) | 35.2 (2.0% ) | 34.9 (-0.9% ) | 34.7 (-0.6%) |
| 1992 | 35.7 (2.9%) | 37.9 (6.2% ) | 38.7 (2.1%) | 39.6 (2.3% ) |
| 1993 | 41.8 (5.6% ) | 54.8 (31.1% ) | 65.9 (20.3%) | 67.8 (2.9% ) |
| 1994 | 69.7 (2.8% ) | 71.5 (2.6% ) | 75.5 (5.6% ) | 75.8 (0.4% ) |
| 1995 | 79.2 (4.5% ) | 88.4 (11.6%) | 93.6 (5.9% ) | 101.9 (8.9%) |
| 1996 | 111.4 (9.3% ) | 125.7 (12.8% ) | 133.3 (6.0%) | 136.9 (2.7% ) |
| 1997 | 136.3 (-0.4%) | 134.9 (-1.0%) | 129.4 (-4.1%) | 121.7 (-6.0%) |
| 1998 | 113.0 (-7.1%) | 108.3 (-4.2%) | 103.6 (-4.3% ) | 100.0 (-3.5%) |
| 1999 | 98.5 (-1.5%) | 99.9 (1.4%) | 108.0 (8.1%) | 110.4 (2.2%) |
| 2000 | 111.1 (0.6%) | 109.7 (-1.3% ) | 107.3 (-2.2%) | 104.9 (-2.2%) |
| 2001 | 101.3 (-3.4% ) | 99.7 (-1.6%) | 97.7 (-2.0%) | 96.3 (-1.4%) |
| 2002 | 95.5 (-0.8%) | 95.7 (0.2%) | 96.7 (1.0%) | 96.7 (0.0%) |
| 2003 | 98.2 (1.6%) | 100.3 (2.1%) | 38.7 (2.1%) | 39.6 (2.3% ) |
| 2004 | 104.1 (0.2%) | 105.4 (1.2% ) | 105.5 (0.1% ) | 106.6 (1.0% ) |
| 2005 | 106.7 (0.1%) | 101.6 (-4.8% ) | 101.2 (-0.4%) | 101.6 (0.4%) |
| 2006 | 101.8 (0.2%) | 102.8 (1.0%) | 102.6 (-0.2% ) | 103.6 (1.0%) |
| 2007 | 104.9 (1.3% ) | 108.0 (3.0% ) | 108.0 (3.0% ) | 121.7 (5.7% ) |
| 2008 | 126.2 (3.7% ) (-0.4%) | 131.7 (4.4% ) | ? | ? |
In comparison, the HDB resale boom in the 2008 is better supported by fundamental factors. Policies such as sublet of whole HDB flats, singles ownership scheme and more generous government subsidies all go towards supporting higher prices for HDB resale flats. At the same time, genuine demand for HDB flats has also been increased by the recent influx of foreign workers and the bulk of new citizens. On top of this, Minister for National Development Mah Bow Tan has repeatedly said that HDB would build only on "orders" (BTO = Build to Order), so the oversupply condition that happened in the 90s is quite unlikely to repeat this time round. While HDB flat owners may welcome this assurance, HDB home-buyers are getting increasingly stressed up by the soaring resale prices. One wonders how the government will ultimately balance the interests of the two parties. Meanwhile, it seems HDB resale price is set to rise further and possibly surpassing its 1996's peak.
May also want to read:
HDB Resales: West Sees Highest Price Increase
HDB contributes to Singapore record high inflation
HDB Income Ceiling for buying HDB flats not pro-family
Your investment in a home may be the sole-determinant of your financial success in your life
Friday, July 25, 2008
About this Blog
The following are views of some forumers on the latest URA real estate data extracted from the Singapore Property Forum:
Forumer 1 wrote:
1. Prices probably declined. Flash estimate last month was for a 0.4% rise for the quarter. Final report is 0.2% rise, with price declines in the last month bringing down the average figure of the whole quarter.
2. With prices virtually flat, we've hard evidence that, CURRENTLY, property does NOT protect you against inflation.why not protect against inflation?
Forumer 2 wrote:
That's what I was thinking too. It seems that the price index dropped in June.
Forumer 3 wrote:
For 1st 6 month, inflation is 7%, FD rate is 0.5% for 6 months, so your cash value is down by 6.5%. 1st 6 months property price up Q1+Q2=4.1%. If you keep cash, value already down by 6.5+4.1=10.6% for 6 months. f you rent it out at 6% yield, 6 months another additional 3% income. Moving forward, ball game is totally different, more money will be printed, value of cash will shrink more, will see.
Forumer 4 wrote:
Obviously PPI for June has fallen, so has rent. What edge against inflation? what rubbish? inflation is revised up 4 times up to 7%... 7.5% for June, property price is down by june, stop this rubbish about property hedging against inflation...
Forumer 5 wrote:
The increase of 4.1% of the last 2 quarters not even enough to cover property transaction cost of stamp duty + agent fee + legal fee + mortgage interest,.. so no need to talk about hedge against inflation.
Most ppl who didn't buy would have their money mostly in CPF which pays 2.5% nett lah. Those who bought in the last 2 Qs, nett increase is 0 or worse. For what? Risk is so high!!
Forumer 6 wrote:
By the way, the actual increase for non-landed is only 0.1 which shows June PPI for condos is really down, down.
Indicative of the cooling private property market are the 43,473 new units still unsold from a total supply of 67,569 uncompleted units from private housing projects. This number includes more than 12,000 which developers have held back from launch and another 28,282 which are pending approval .
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Property Investors said Private Property Price has fallen according to URA 2Q 2008 Real Estate Statistics
URA 2Q 2008 Real Estate Statistics shows that price of private property rose by 0.2%, half that of the earlier estimate; and rentals of private residential properties rose 2.5% compared with 6.0% in the previous quarter .The following are views of some forumers on the latest URA real estate data extracted from the Singapore Property Forum:
Forumer 1 wrote:
1. Prices probably declined. Flash estimate last month was for a 0.4% rise for the quarter. Final report is 0.2% rise, with price declines in the last month bringing down the average figure of the whole quarter.
2. With prices virtually flat, we've hard evidence that, CURRENTLY, property does NOT protect you against inflation.why not protect against inflation?
Forumer 2 wrote:
That's what I was thinking too. It seems that the price index dropped in June.
Forumer 3 wrote:
For 1st 6 month, inflation is 7%, FD rate is 0.5% for 6 months, so your cash value is down by 6.5%. 1st 6 months property price up Q1+Q2=4.1%. If you keep cash, value already down by 6.5+4.1=10.6% for 6 months. f you rent it out at 6% yield, 6 months another additional 3% income. Moving forward, ball game is totally different, more money will be printed, value of cash will shrink more, will see.
Forumer 4 wrote:
Obviously PPI for June has fallen, so has rent. What edge against inflation? what rubbish? inflation is revised up 4 times up to 7%... 7.5% for June, property price is down by june, stop this rubbish about property hedging against inflation...
Forumer 5 wrote:
The increase of 4.1% of the last 2 quarters not even enough to cover property transaction cost of stamp duty + agent fee + legal fee + mortgage interest,.. so no need to talk about hedge against inflation.
Most ppl who didn't buy would have their money mostly in CPF which pays 2.5% nett lah. Those who bought in the last 2 Qs, nett increase is 0 or worse. For what? Risk is so high!!
Forumer 6 wrote:
By the way, the actual increase for non-landed is only 0.1 which shows June PPI for condos is really down, down.
Indicative of the cooling private property market are the 43,473 new units still unsold from a total supply of 67,569 uncompleted units from private housing projects. This number includes more than 12,000 which developers have held back from launch and another 28,282 which are pending approval .
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
HDB Resales Market Hot: Price Up 4.5% in 2Q 2008: Resale Transactions rose 22% & Sublet rose 15%: HDB Sublet Rent Rose 20%
HDB's 2nd Quarter 2008 Public Housing Data shows that the HDB resales market remains strong. Resale Price Index (RPI) up 4.5% compared to the 3.7% increase for the previous Quarter of 2008. The strong demand for HDB flats was reflected in the rise in resale transactions, from about 6,360 cases in Q1 '08 to about 7,760 cases, an increase by about 22%; and subletting transactions increase of about 15% to about 4,120 cases in the second quarter from about 3,580 cases in the first quarter. The rental data also shows that HDB sublet rent rose by as much as 20% for some HDB estates e.g. in Toa Payoh, 4 rm rent was 1.78K in 1Q, rose to 2.1K in 2Q which gives an increase of ~20%.May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
Forumer 1 wrote;
Let me tell you as a property buyer how do I feel. I am a businessman and have my own house fully paid forth. I'm looking to buy a 2nd property but its no hurry. The price has to be right. I am not desperate to feel that I need to buy now or I will lose out in making money. What will you lose if the property prices suddenly shoot up or if you miss the boat? There are always better opportunities elsewhere for better returns, like stocks, other businesses etc. I am conservative and what I look for is stability. The purchase must not cause additional stress to my family financially or cause me to wake up in the middle of the night worrying. Please be prudent and do not over overstretch yourselves. My feel is that economy is slowing down and you need to watch your liabilities.
I have to evaluate and weigh the returns across different investments, and when to get in at the right price. That's part of my "job" in doing business. Fear of property price shooting up? Not really, my bigger fear would be more on overcommitment.
Forumer 2 wrote:
You are so right. Business is all about weighing various options - stocks, forex, commodities and last of all, property which is so illiquid.
Forumer 3 wrote:
A desperate seller and a cool investor. It's obvious that the price will drop as the buyers are taking our time.
Forumer 4 wrote:
I fully agree with you. And because the buyers left now are mostly like you - prudent, rational, not greedy - prices must fall. The ploys of those ppl who try to talk up the market has failed completely.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Property Buyers & Investors are now Conservative, Rational, Less Greedy..
The following are views of some forumers on the way they look at property investment (extracted from the Singapore Property Forum) :Forumer 1 wrote;
Let me tell you as a property buyer how do I feel. I am a businessman and have my own house fully paid forth. I'm looking to buy a 2nd property but its no hurry. The price has to be right. I am not desperate to feel that I need to buy now or I will lose out in making money. What will you lose if the property prices suddenly shoot up or if you miss the boat? There are always better opportunities elsewhere for better returns, like stocks, other businesses etc. I am conservative and what I look for is stability. The purchase must not cause additional stress to my family financially or cause me to wake up in the middle of the night worrying. Please be prudent and do not over overstretch yourselves. My feel is that economy is slowing down and you need to watch your liabilities.
I have to evaluate and weigh the returns across different investments, and when to get in at the right price. That's part of my "job" in doing business. Fear of property price shooting up? Not really, my bigger fear would be more on overcommitment.
Forumer 2 wrote:
You are so right. Business is all about weighing various options - stocks, forex, commodities and last of all, property which is so illiquid.
Forumer 3 wrote:
A desperate seller and a cool investor. It's obvious that the price will drop as the buyers are taking our time.
Forumer 4 wrote:
I fully agree with you. And because the buyers left now are mostly like you - prudent, rational, not greedy - prices must fall. The ploys of those ppl who try to talk up the market has failed completely.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Thursday, July 24, 2008
About this Blog
The second DBSS site is at at the junction of Boon Keng Road and Bendemeer Road, walking distance to Boon Keng MRT station. It was priced from $349K - $727K, about 50% above Premiere @ Tampines. Though it saw 5-time over-subscription during its launch, the actual take-up was much smaller. About one-third of its 714 remain unsold.
The tender has been awarded to Qingdao Construction Group Corporation (Singapore Branch).
The site is located in a matured estate with comprehensive facilities. Just a short stroll away from the Simei MRT station, residents can count on the convenience of ready amenities and services at East Point and the surrounding neighbourhood shops. Established schools nearby like the Griffiths Primary School, Anglican High School, Tampines Junior College and Temasek Polytechnics create a conducive environment for learning. Being close to the Tampines and Bedok stadiums, sports halls and swimming complexes also offer excellent respite for the residents
HDB has launched the sale of a site at Lorong 1A Toa Payoh for tender under the Design, Build and Sell Scheme (DBSS) on June 2008. The site is located in a mature estate, just minutes away from the Toa Payoh Town Centre with its MRT station and bus interchange. Residents can enjoy easy access to many amenities, such as shops, park, schools, swimming complex, sports hall and stadium.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
HDB-DBSS 6 Sites: Premiere@Tampines, City View@Boon Keng, Central@AMK, Coming: Bishan, Simei, Toa Payoh
1: HDB-DBSS: The Premiere at Tampines
The HDB-DBSS pilot project, Premiere@Tampines located at Tampines Avenue 6, drew almost 6,000 applications for its two-, four- and five-room flats during its launch in late 2006. Units were priced at $138K - $450K. The 616 units in all the six 17-storey towers are completely sold. Premiere@Tampines is scheduled to be completed in 2010.
2: HDB-DBSS: Cityview@Boon Keng
The second DBSS site is at at the junction of Boon Keng Road and Bendemeer Road, walking distance to Boon Keng MRT station. It was priced from $349K - $727K, about 50% above Premiere @ Tampines. Though it saw 5-time over-subscription during its launch, the actual take-up was much smaller. About one-third of its 714 remain unsold.
3: HDB-DBSS:Park Central@AMK
Just launched, it saw more than a thousand applicants but the final take-up is yet to be seen. The 578 units at Central@AMK were priced at an average of $500 psf, about 10% lower than City View at Boon Keng.
The site is situated close to the Ang Mo Kio Town Centre where the MRT station, bus interchange and the AMK Hub with abundant dining, shopping and entertainment facilities; are located. Schools in the neighbourhood include the Presbyterian High School, CHIJ St. Nicholas Girls’ School, Nanyang Polytechnic and Anderson Junior College.
4: HDB-DBSS: Bishan
The site at Bishan Street 24 for tender under the Design, Build and Sell Scheme (DBSS) on Thursday 27 December 2007. The site is located in a middle-aged estate with a wide array of facilities. With the Bishan MRT station and bus interchange just a few streets away, residents can rely on the convenience of ready amenities and services at Bishan Junction 8. The site is also close to the neighborhood Park and education institutions such as Catholic High Schools, Raffles Institution and Raffles Junior College.The tender has been awarded to Qingdao Construction Group Corporation (Singapore Branch).
5: HDB-DBSS: Simei
The site is located in a matured estate with comprehensive facilities. Just a short stroll away from the Simei MRT station, residents can count on the convenience of ready amenities and services at East Point and the surrounding neighbourhood shops. Established schools nearby like the Griffiths Primary School, Anglican High School, Tampines Junior College and Temasek Polytechnics create a conducive environment for learning. Being close to the Tampines and Bedok stadiums, sports halls and swimming complexes also offer excellent respite for the residents
6: HDB-DBSS: Toa Payoh
HDB has launched the sale of a site at Lorong 1A Toa Payoh for tender under the Design, Build and Sell Scheme (DBSS) on June 2008. The site is located in a mature estate, just minutes away from the Toa Payoh Town Centre with its MRT station and bus interchange. Residents can enjoy easy access to many amenities, such as shops, park, schools, swimming complex, sports hall and stadium.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Wednesday, July 23, 2008
About this Blog
Park Central@AMK located near Ang Mo Kio MRT station is the third HDB's DBSS. (See information on all 6 HDB DBSS Sites including future sites.) DBSS flats typically come with condo-style fittings like built-in wardrobes, air-conditioners and parquet flooring.
The four 30-storey blocks will house four- and five-room units were priced at an average of $500 psf ($433K -S$689K), about 10% lower than Cityview at Boon Keng, the second HDB-DBSS launched in the earlier.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Park Central@AMK: Price 10% lower than City View at Boon Keng
According to news reports, about 3,000 home buyers visited the showflats of Park Central @AMK on the first day of its launch on Wednesday. By noon, 130 people have applied for the flats in central Singapore which will be ready in 2011.Park Central@AMK located near Ang Mo Kio MRT station is the third HDB's DBSS. (See information on all 6 HDB DBSS Sites including future sites.) DBSS flats typically come with condo-style fittings like built-in wardrobes, air-conditioners and parquet flooring.
The four 30-storey blocks will house four- and five-room units were priced at an average of $500 psf ($433K -S$689K), about 10% lower than Cityview at Boon Keng, the second HDB-DBSS launched in the earlier.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, July 22, 2008
About this Blog
It seems bad news of the collapse of US bank IndyMac and rescue of mortgage giants Freddie Mac and Fannie Mae last week took a toll on property sales over the weekend.
CapitaLand's Wharf Residence in Tong Watt Road sold just over 10 units of its total of 173 units. Units are priced between $1500 psf-$1900 psf. Unit sizes start at about 1,000 sq ft, so a two-bedroom unit costs $1.6 million to $1.7 million.
Frasers Centrepoint's near Potong Pasir MRT station,Woodsville 28 with a total of 110units, sold about 19 of the 48 units launched at an average price of $880 psf.
Sales also continued at a snail's pace at other condos that have recently been launched, despite reports of large crowds at showflats.
OLA Residences in Mountbatten Road has sold only about 10 of its 50 units since sales began three weeks ago.
Two smaller projects, The Scenic@Braddell in Braddell Road and Jubilee Residence in Pasir Panjang, have sold about 10 units each in the last few weekends, putting them at the halfway mark in sales. The Scenic is priced at $820 psf to $850 psf, while Jubilee is going for $900 psf.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Property Buying Momentum slows further: Wharf Residence sold 10 of 173, Woodsville 19 of 110, OLA Residences 10 of 50 units sold.
Last weekend saw yet another lukewarm response from buyers, reported ST.It seems bad news of the collapse of US bank IndyMac and rescue of mortgage giants Freddie Mac and Fannie Mae last week took a toll on property sales over the weekend.
CapitaLand's Wharf Residence in Tong Watt Road sold just over 10 units of its total of 173 units. Units are priced between $1500 psf-$1900 psf. Unit sizes start at about 1,000 sq ft, so a two-bedroom unit costs $1.6 million to $1.7 million.
Frasers Centrepoint's near Potong Pasir MRT station,Woodsville 28 with a total of 110units, sold about 19 of the 48 units launched at an average price of $880 psf.
Sales also continued at a snail's pace at other condos that have recently been launched, despite reports of large crowds at showflats.
OLA Residences in Mountbatten Road has sold only about 10 of its 50 units since sales began three weeks ago.
Two smaller projects, The Scenic@Braddell in Braddell Road and Jubilee Residence in Pasir Panjang, have sold about 10 units each in the last few weekends, putting them at the halfway mark in sales. The Scenic is priced at $820 psf to $850 psf, while Jubilee is going for $900 psf.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
Personally, I'm of the opinion that the current property price simply cannot be justified by its ROI (Return on Investment). Typically, a new property bought from the developer at today's price will generate only a 2% rental yield or less, perhaps a little higher for 99 LH property but then buyers will be faced with the risk of high capital deprecation when the property age.
Even at 5-6%, I'd not find investing in Singapore property attractive because there are other investment alternatives like foreign currency fixed deposit which pay 10% interest and blue chips stocks which pay good dividends. These alternatives are not necessarily riskier than property investment. They're generally more liquid so you can cash out easily when needed. Property is not only difficult to liquidate, renting a property also incurs a lot of headache such as tenant management, property maintenance and all the logistics of moving furniture. Having owned a rental property for well-over 10 years, my experience says property investment is not at all as attractive as many Singaporeans believe, especially not when prices are still sky-high like today and rental yields are getting increasingly lower as vacancy rate increases.
The following is a forum exchange between a bull and a bear on the return on investment for Singapore property extracted the Singapore Property Forum.
Bear wrote:
Buyers cannot ignore the low ROI from property investment. PERIOD.
Bull wrote:
Low ROI? Many projects in the market can now simply generate 7% of rental yield. Certainly, that's almost never seen in Singapore ppty history before. How can these projects generate such a high return? Because the rental market is still very strong, while housing prices is relatively stagnant or slow. In other words, the pent-up demand for housing is real and incredibly huge, but due to some uncertainty, ppl still opt for rental, instead of buying. Obviously, this is a game for only genuine risk takers, not kiasu sideline buyers, to transform the risk into a huge profit.
Bear wrote:
Try giving us some concrete examples. I bet you can't do it, using current prices and rentals.
Bull wrote:
why not? HDB easily 6-8%. LH 99 yrs, 5-6%.
Bear wrote:
When you buy a HDB, you've to stay in it. So why are we talking about ROI for HDB?? Anyway, we talking about private property market here. LH 99 yrs, new 3-rm in suburb like Hillview Regency costs about $900k-$1M which can rent for $2-3K/month at a good time like that but only $1.5-$2.5k at worse time, so let's assume average of $2K. 20,000/900,000 ~1%. Ok if we relax it, you're just talking about 2%. Meanwhile, your 99LH will suffer capital depreciation. Ps show one which gives 5-6% at today's price. Anyway is 5-6% attractive given the depreciation, the huge risk and the illiquidity?
Bull wrote:
There is many HDB rented out, commonwealth area $2.5k-3k, Redhill & Tiong Bahru, 3.5k-4k. 99 LH near MRT, 2 rm is renting at $3.5k-4k & so on. These are selling at $700k-850k. Some people don't mind a 3-4% rental yield.
Bear wrote:
3-4% is ok? Mortgage rate is ~ 3.5% and likely to go up. Your nett return is 0%!! Only ppl who can't count will think it's ok. Put your money in Aussie FD and you'll get 8-9%. Leave your money in CPF, you'll get 2.5%, no risk and no maintenance and no mortgage to pay.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Investment Property: Low ROI, High Risk, Illiquid & Heartache: Compare with Investments in Blue Chip Stocks, Foreign Currency Deposit..
Today, I shall focus on the property investors. Unlike home buyers, property investors buy properties purely for their investment returns.Personally, I'm of the opinion that the current property price simply cannot be justified by its ROI (Return on Investment). Typically, a new property bought from the developer at today's price will generate only a 2% rental yield or less, perhaps a little higher for 99 LH property but then buyers will be faced with the risk of high capital deprecation when the property age.
Even at 5-6%, I'd not find investing in Singapore property attractive because there are other investment alternatives like foreign currency fixed deposit which pay 10% interest and blue chips stocks which pay good dividends. These alternatives are not necessarily riskier than property investment. They're generally more liquid so you can cash out easily when needed. Property is not only difficult to liquidate, renting a property also incurs a lot of headache such as tenant management, property maintenance and all the logistics of moving furniture. Having owned a rental property for well-over 10 years, my experience says property investment is not at all as attractive as many Singaporeans believe, especially not when prices are still sky-high like today and rental yields are getting increasingly lower as vacancy rate increases.
The following is a forum exchange between a bull and a bear on the return on investment for Singapore property extracted the Singapore Property Forum.
Bear wrote:
Buyers cannot ignore the low ROI from property investment. PERIOD.
Bull wrote:
Low ROI? Many projects in the market can now simply generate 7% of rental yield. Certainly, that's almost never seen in Singapore ppty history before. How can these projects generate such a high return? Because the rental market is still very strong, while housing prices is relatively stagnant or slow. In other words, the pent-up demand for housing is real and incredibly huge, but due to some uncertainty, ppl still opt for rental, instead of buying. Obviously, this is a game for only genuine risk takers, not kiasu sideline buyers, to transform the risk into a huge profit.
Bear wrote:
Try giving us some concrete examples. I bet you can't do it, using current prices and rentals.
Bull wrote:
why not? HDB easily 6-8%. LH 99 yrs, 5-6%.
Bear wrote:
When you buy a HDB, you've to stay in it. So why are we talking about ROI for HDB?? Anyway, we talking about private property market here. LH 99 yrs, new 3-rm in suburb like Hillview Regency costs about $900k-$1M which can rent for $2-3K/month at a good time like that but only $1.5-$2.5k at worse time, so let's assume average of $2K. 20,000/900,000 ~1%. Ok if we relax it, you're just talking about 2%. Meanwhile, your 99LH will suffer capital depreciation. Ps show one which gives 5-6% at today's price. Anyway is 5-6% attractive given the depreciation, the huge risk and the illiquidity?
Bull wrote:
There is many HDB rented out, commonwealth area $2.5k-3k, Redhill & Tiong Bahru, 3.5k-4k. 99 LH near MRT, 2 rm is renting at $3.5k-4k & so on. These are selling at $700k-850k. Some people don't mind a 3-4% rental yield.
Bear wrote:
3-4% is ok? Mortgage rate is ~ 3.5% and likely to go up. Your nett return is 0%!! Only ppl who can't count will think it's ok. Put your money in Aussie FD and you'll get 8-9%. Leave your money in CPF, you'll get 2.5%, no risk and no maintenance and no mortgage to pay.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
Only speculators ignore fundamentals such as ROI for their properties. Speculators would pay much higher prices that can be justified by the ROI, with the overly-optimistic belief that another speculator would pay them even higher prices. If you're not into such speculation, you must maintain your clarity throughout, even if property prices start to soar with speculation.
The bigger the bubble gets, the more alluring they look, and they more risky they become. If you have decided to walk away from such speculation from onset, then be blind and deaf to such housing speculation no matter how hot it gets. Until and unless the bubble bursts, you must tell yourself that you'll nothing to do with it. One thing for sure, all property bubbles will eventually burst. In fact, the longer they take, the harder the crash.
There is nothing worse than for a prudent property investor to change his mind half-way-through after watching the property price going up for a period of time because then, he'd be most likely to be caught right at the peak of the property cycle. Instead, a logical investor should look beyond property investment.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Property Investors Never Allow Speculation to cloud your decision
A genuine property investor must not allow speculation to cloud his mind. A residential property is ultimately just a roof over the head for someone. Its real value is ultimately determined by how much a would-be tenant is willing to pay for such a roof over the head.Only speculators ignore fundamentals such as ROI for their properties. Speculators would pay much higher prices that can be justified by the ROI, with the overly-optimistic belief that another speculator would pay them even higher prices. If you're not into such speculation, you must maintain your clarity throughout, even if property prices start to soar with speculation.
The bigger the bubble gets, the more alluring they look, and they more risky they become. If you have decided to walk away from such speculation from onset, then be blind and deaf to such housing speculation no matter how hot it gets. Until and unless the bubble bursts, you must tell yourself that you'll nothing to do with it. One thing for sure, all property bubbles will eventually burst. In fact, the longer they take, the harder the crash.
There is nothing worse than for a prudent property investor to change his mind half-way-through after watching the property price going up for a period of time because then, he'd be most likely to be caught right at the peak of the property cycle. Instead, a logical investor should look beyond property investment.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Friday, July 18, 2008
About this Blog
To further motivate property agents, the commission rate may go up to, say, 1% more nowadays, once a certain number of units have been sold.
Under such handsome rewards, it'd be natural for property agents to push developers' projects.
While this should not deter property buyers from buying the properties they want, property buyers should be careful that they do not make impulsive decisions because of sales pressure or any such sales tactics exerted by agents.
Tactics employed by agents are focused towards getting the buyers to commit immediately rather than time to work out a prudent decision. Agents may, for example, show buyers that the price offerred is below current replacement cost, either because the developer bought the land cheap or locked in construction costs early. Or agents may tell potential buyers that the developer will raise prices once it achieves a certain percentage of sales. These tactics work, according to some agents.
One technique I've adopted to avoid making impulsive decision under sales pressure is NOT to visit showroom with my cheque book. Even if a buyer is completely sold, some time off from the sales environment will allow him to reconsider his decision more rationally. Other strategies may include bringing along a trusted impartial party, preferably one with substantial property-buying and property-owning experience, who may be able to point out problems that are easily over-looked by an all excited buyer.
Most importantly, property buyers should do all their homework, especially in financial planning, even before starting their property hunt. Here's a Checklist for Buying Property .
May also want to read:
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Developers pay Agents to Push Sales with Higher Commission: Buyers beware of sales tactics: REAL ESTATE BUYERS GUIDE
According to a news report by Business Times, developers are paying property agents 2% or more, compared to the 0.5% in the past, to push sales.To further motivate property agents, the commission rate may go up to, say, 1% more nowadays, once a certain number of units have been sold.
Under such handsome rewards, it'd be natural for property agents to push developers' projects.
While this should not deter property buyers from buying the properties they want, property buyers should be careful that they do not make impulsive decisions because of sales pressure or any such sales tactics exerted by agents.
Tactics employed by agents are focused towards getting the buyers to commit immediately rather than time to work out a prudent decision. Agents may, for example, show buyers that the price offerred is below current replacement cost, either because the developer bought the land cheap or locked in construction costs early. Or agents may tell potential buyers that the developer will raise prices once it achieves a certain percentage of sales. These tactics work, according to some agents.
One technique I've adopted to avoid making impulsive decision under sales pressure is NOT to visit showroom with my cheque book. Even if a buyer is completely sold, some time off from the sales environment will allow him to reconsider his decision more rationally. Other strategies may include bringing along a trusted impartial party, preferably one with substantial property-buying and property-owning experience, who may be able to point out problems that are easily over-looked by an all excited buyer.
Most importantly, property buyers should do all their homework, especially in financial planning, even before starting their property hunt. Here's a Checklist for Buying Property .
May also want to read:
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Thursday, July 17, 2008
About this Blog
The global slowdown is here, declared the eonomists stunt by the sharp decline.
Singapore is the Asian economy most exposed to the G3 countries - the US, Japan and Germany. Growth has been quite impressive in other Asian economies but may change in the second half when the impact of slower economic growth hits the rest of Asia. China, for instance, is already seeing a mild slowdown in economic growth, down to 10.1% year-on-year in the second quarter after rising 10.6% in the first quarter.
Singapore exports to the Europe, US and China fell 16.1%, 24.3% and 11.7% respectively in June. In May, IE Singapore lowered its forecast for export growth this year to 2%-4% from an earlier 4%-6%.
Electronics shipments made their 17th consecutive decline in June, down 14.6% from a year earlier. Non-electronics shipments, including petrochemicals and pharmaceuticals, fell 7.9 % on year.
Anaylsts do not discount a technical recession happening in the next quarter here in Singapore.
May also want to read:
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
When to Buy, When Not to buy
Property Price Index Graph Plotter & Online Property Valuation
Singapore Exports Down 10.5% in June: Impact of Global Slowdown May Increase in Second Half 2008: Technical Recession Possible
Singapore's non-oil domestic exports is down 10.5% in June, the worst half-yearly trade data since 2002, grossly below the forecast of economists who had expected a modest decline of 2.8%.The global slowdown is here, declared the eonomists stunt by the sharp decline.
Singapore is the Asian economy most exposed to the G3 countries - the US, Japan and Germany. Growth has been quite impressive in other Asian economies but may change in the second half when the impact of slower economic growth hits the rest of Asia. China, for instance, is already seeing a mild slowdown in economic growth, down to 10.1% year-on-year in the second quarter after rising 10.6% in the first quarter.
Singapore exports to the Europe, US and China fell 16.1%, 24.3% and 11.7% respectively in June. In May, IE Singapore lowered its forecast for export growth this year to 2%-4% from an earlier 4%-6%.
Electronics shipments made their 17th consecutive decline in June, down 14.6% from a year earlier. Non-electronics shipments, including petrochemicals and pharmaceuticals, fell 7.9 % on year.
Anaylsts do not discount a technical recession happening in the next quarter here in Singapore.
May also want to read:
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
When to Buy, When Not to buy
Property Price Index Graph Plotter & Online Property Valuation
About this Blog
From there, the line will go to the Beauty World station (just infront of Beauty World Plaza) will be located.
The line then will then move to another residential zone in Hillview. Here, there will be a station at Hillview (just infront of the St Francis Methodist School and the Salvation Army) and another at Cashew (in front of Assumption English School).
Next, the Downtown Line links up with the Bukit Panjang LRT, at the Petir station.
The line terminates at Gali Batu Depot, which is to be sited on part of the Kwong Hou Sua Teochew Cemetery.
In all, there are 12 stations, of which three are interchanges (Little India, Newton and Botanic Gardens). As with the Circle Line, the Land Transport Authority will be asking the public to suggest permanent names for the other nine stations.
Stage 1 is is where the Integrated Resort, Gardens by the Bay and new financial district are. Stage 3 goes through MacPherson, Bedok Reservoir and Tampines areas to end at the East-West Line's Expo Station.
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
LTA unveils locations of Stage 2 Downtown line stations
THE locations of stations along Downtown Line Stage 2, joining residents in Bukit Panjang and Bukit Timah to the city centre, were revealed on July 15 2008.
The line's southern-most station is Rochor.
North of this is the first of three interchanges, Little India station, which connects the North-east Line. Next is the Newton Interchange and then Stevens Station near Raffles Town Club. After that comes the Botanic Gardens Station, which intersects with the Circle Line.
The line then moves through Singapore's prestigious residential area, with stops near Duchess Avenue, Sixth Avenue (actually nearer to Fourth) and Blackmore (near King Albert Park).
The line will make stops near schools like Hwa Chong Institution, Singapore Chinese Girls School, Raffles Girls School, and National Junior College.
Click on the Maps to see locations of 12 MRT stations in the Stage 2 DTL & the network of MRT-LRT lines.
From there, the line will go to the Beauty World station (just infront of Beauty World Plaza) will be located.
The line then will then move to another residential zone in Hillview. Here, there will be a station at Hillview (just infront of the St Francis Methodist School and the Salvation Army) and another at Cashew (in front of Assumption English School).
Next, the Downtown Line links up with the Bukit Panjang LRT, at the Petir station.
The line terminates at Gali Batu Depot, which is to be sited on part of the Kwong Hou Sua Teochew Cemetery.
In all, there are 12 stations, of which three are interchanges (Little India, Newton and Botanic Gardens). As with the Circle Line, the Land Transport Authority will be asking the public to suggest permanent names for the other nine stations.
Stage 1 is is where the Integrated Resort, Gardens by the Bay and new financial district are. Stage 3 goes through MacPherson, Bedok Reservoir and Tampines areas to end at the East-West Line's Expo Station.
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Wednesday, July 16, 2008
About this Blog
Today, we heard President George Bush gave another of his rhetorical speech on how great the US economy is doing.
"I'm not an economist... But I do believe that we're growing,'' Bush said at a White House press conference this morning, asked when the economy might turn around. "I'm an optimist.''... "The bottom line is this - we're going through a tough time,'' the president said. "We can have confidence in the long-term strength of this economy... I believe we'll come out stronger than ever before. ''
Today, Bernanke gave his testimony in front of the Senate Banking, Housing and Urban Affairs Committee on how good the economy is 'NOT' doing:
"The economy continues to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labour market, and rising prices of oil, food, and some other commodities."
Here's the response from a citizen World Economy Prove Bush Wrong:
"But there was a more pressing matter that occur today, which might have a lasting effect on the economy. One that can make the growing recession to last longer than expected. An irreversible downward spiral in the Stock Market effecting the world economy. The Dow Jones Industrial Average closed down more than 90 points, falling below 11,000 for the first time since July 21, 2006. By itself, it may not leave a lasting impression, but with the 'economy continuing to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food and some other commodities,' the effects could last longer. Leaving this generation to deal with something far worse than a recession. Add to that the 'ever-ending-U.S.A.-shrinking-dollar' that sank to a new low against the Euro."
May I quote George Soros:
"It is an idle dream to think that you could have this kind of crisis without the real economy being affected. We're in a recession that is slow in coming but the slower it comes, the more powerful it is. "
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
George Soros: World Economy's Not Normal Bubble but Super-Bubble: We're in for financial destruction and a breakdown of world order
Today, let's turn our attention away from the seemingly unbeatable domestic economy and take a look at the bigger picture: The World EconomyToday, we heard President George Bush gave another of his rhetorical speech on how great the US economy is doing.
"I'm not an economist... But I do believe that we're growing,'' Bush said at a White House press conference this morning, asked when the economy might turn around. "I'm an optimist.''... "The bottom line is this - we're going through a tough time,'' the president said. "We can have confidence in the long-term strength of this economy... I believe we'll come out stronger than ever before. ''
Today, Bernanke gave his testimony in front of the Senate Banking, Housing and Urban Affairs Committee on how good the economy is 'NOT' doing:
"The economy continues to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labour market, and rising prices of oil, food, and some other commodities."
Here's the response from a citizen World Economy Prove Bush Wrong:
"But there was a more pressing matter that occur today, which might have a lasting effect on the economy. One that can make the growing recession to last longer than expected. An irreversible downward spiral in the Stock Market effecting the world economy. The Dow Jones Industrial Average closed down more than 90 points, falling below 11,000 for the first time since July 21, 2006. By itself, it may not leave a lasting impression, but with the 'economy continuing to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food and some other commodities,' the effects could last longer. Leaving this generation to deal with something far worse than a recession. Add to that the 'ever-ending-U.S.A.-shrinking-dollar' that sank to a new low against the Euro."
May I quote George Soros:
"It is an idle dream to think that you could have this kind of crisis without the real economy being affected. We're in a recession that is slow in coming but the slower it comes, the more powerful it is. "
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
However, dual agency introduces a host of conflicts of interest. Let's assume you're 2 weeks away from completing the sale and the house plumbing bursts. The seller says, 'I'll fix it.' But, you, the buyer says, 'I don't want it fixed because I don't want to buy the house.' The contract says the property will be conveyed in substantially the same condition. But who determines that? Who's the agent going to side with then? Worse still, some agents are representing themselves or their relatives.
For sg expatriates looking to buy Singapore property, you may want to know that the common market practice in Singapore is that property buyers do not in general pay the agent's commission, it's usually the seller who pays the agent's commission. An excellent guide for Singapare expats is this booklet entitled Singapore Explorer: The Complete Residents' Guide available at Amazon.
May also want to read:
Quick Way to Calculate Stamp Duty for Purchase of Property
How to Calculate Property Tax for Singapore Property
How to Calculate Rental Yield for Singapore Property
REAL ESTATE BUYERS GUIDE: 10 Things Property Buyers Should Know about their Property Agents, Esp for Sg Expats
1: YOUR AGENT DOESN'T REALLY WORK FOR YOU
The first and most important question to ask any agent-Who are you working for?-is deceptively simple and rarely asked by most buyers. Let's face it; if you're like most people the way you'll pick your agent is by calling the phone number given in that classified Ad at the top of the list, preferably a long list for which you can pick and choose. The next thing you know is that you'll spending evening after evening with your agent, who asks about your needs, laughs at your jokes, and sympathizes with your shock at soaring property prices. It's no surprise, then, that you end up thinking the property agent works for you. The fact is, most agents are not really working for the homebuyers - they're working for the themselves. So whatever you tell him may be taken against you. It's best, therefore, to maintain a poker face in your dealing with property agents.2: YOUR AGENT MAY BE IN A "DUAL AGENCY" SALE
No issue is more confusing for buyers than what is called "dual agency". That means that one real estate agency, sometimes one agent, is representing both the buyer and the seller in a transaction. Agents love this kind of deal because it increases the amount of commission they can earn-instead of having to split the usual 1-2% commission with an property agent.However, dual agency introduces a host of conflicts of interest. Let's assume you're 2 weeks away from completing the sale and the house plumbing bursts. The seller says, 'I'll fix it.' But, you, the buyer says, 'I don't want it fixed because I don't want to buy the house.' The contract says the property will be conveyed in substantially the same condition. But who determines that? Who's the agent going to side with then? Worse still, some agents are representing themselves or their relatives.
3: ALL AGENTS HAVE INCENTIVE TO SEE BUYERS PAY THE HIGHEST PRICE
Let's assume you've opted to use a buyer's agent who has declared no part in the seller's commission. Are your problems with conflicts of interest solved? Unfortunately, not. Unless you've agreed to pay your agent a flat fee for helping you find a home, even buyer's agents are working on commission and therefore have a financial interest to make sure the you, the buyer, pays the highest price possible.
4: AGENTS' PAY IS NEGOTIABLE
Real estate agents act as if the 1-2% commission-usually split 50-50 between the buyer's agent and the seller's agent-is carved in stone. Even in red-hot markets, agents may be convinced to discount their commissions in order to close a sale quickly. Another way to get a bargain on commissions is to have several agents bid against each other. This is especially worthwhile when it involves a very expensive property.5: YOUR AGENT MAY NOT SHOW YOU ALL THE AVAILABLE PROPERTIES HE KNOWS THAT MEET YOUR CRITERIA
A few years ago when I was hunting for a property, I engaged this really enthusiastic agent. He got me viewings almost every evening. When I eventually found the property I liked, he told me that there's another similar one on a higher floor. I trusted that the agent was really looking after my interest. I bought that property. I later learned that there's a bigger property going about the same price next door which the agent didn't show me. I later found out that the agent got co-broke commission, on top of the commission I paid him for the property he sold me but not for the other 2 properties mentioned here.6: DO NOT RELY ON YOUR AGENT FOR ADVICE ON THE PROPERTY
A real estate agent's job is to get you to buy the property he's selling. Period. He's not there to help you see confirm the facing of the sun or flaws in the property. Some agents are plain ignorant, others may be out to mislead you into a buying the property. If you must have an advisor, bring along a trusted friend or relative with substantial experience in making real estate purchase.
7: KNOW THAT THE REAL ESTATE INDUSTRY IS LIGHTLY REGULATED
You may want to engage a buyer's agent, especially if you're a foreigner and you're unfamiliar with the local real estate market. In which case, you may want to make sure your buyer's agent is working solely on your behalf. Do not assume that there are laws to protect your interest as a property buyer. In fact, the real estate industry is only lightly regulated. It's best to have a proper agreement that spelt out the terms and conditons under which your agent works for you, like a pledge to help you solicit for the lowest price possible.8: CHECK IF YOUR AGENT IS A MEMBER OF A REGULATORY BODY
Though the real estate industry is lightly regulated, there are some regulatory institutes that have been formed to the oversee fair practices. Check if your agent is a member of such regulatory institutes e.g. the Institute of Estate Agents (IEA). At the very least, it helps to know if your agent has been certified with a minimum amount of training in real estate and knows the proper practices in the industry.
9: YOU MAY NOT NEED A REAL ESTATE AGENT AT ALL
Property agents will want you to think you can't buy a house without them, but in fact it's not that hard to do. There are many websites that carry "for sale by owner" ads or even websites that are dedicated to matching buyers and sellers directly. Once you get started looking at some of these properties, you may find the process more appealing than working with an agent. In fact, you'll find some real advantages to buying directly from the seller, the biggest being the potential for a lower price.
10. YOU ARE THE BEST PERSON TO LOOK AFTER YOUR INTEREST, NOT YOUR AGENT
For sg expatriates looking to buy Singapore property, you may want to know that the common market practice in Singapore is that property buyers do not in general pay the agent's commission, it's usually the seller who pays the agent's commission. An excellent guide for Singapare expats is this booklet entitled Singapore Explorer: The Complete Residents' Guide available at Amazon.
May also want to read:
Quick Way to Calculate Stamp Duty for Purchase of Property
How to Calculate Property Tax for Singapore Property
How to Calculate Rental Yield for Singapore Property
Tuesday, July 15, 2008
About this Blog
Here's an excerpt of the report from BT, 15 July:
WHILE City Developments managed to sell 96 units last week at its Livia condo at Pasir Ris, developers of most other projects suffered rapidly declining sales at their showflats....Sim Lian sold 19 units last week at its Clover By The Park condo in Bishan, less than the 59-unit sales it achieved in the preceding week...Sim Lian also sold a unit at The Amery, a freehold project in the Telok Kurau area, last week - again a less sparkling performance than the four units it sold a week earlier.... Next to Geylang River, NTUC Choice Homes and Ho Bee found buyers for another nine units at Dakota Residences last weekend. This brings total sales to 170 units in the 99-year project, which has an average price of about $980 psf... Over in the Kovan MRT Station vicinity, the developer of Kovan Residences sold about 20 units last week, bringing total sales to over 100 units since the 99-year project was previewed at a private party on June 28.
Potential buyers should look out for the build up of unsold inventories. Note that 72.8% of the June transactions came from 8 new launches while older launches saw fewer transactions. There is still about 2,720 of launched but unsold units from older projects . Property analysts said that they do not dismiss the possibility of developers lowering their selling prices if unsold inventories continue to build up. Also, developers may launch more projects ahead of the Chinese Lunar Seventh Month (the Ghost Month) which is traditional low season for property buying. The increase in unsold inventories and the expected increased in new launches will likely dampen pricing.
In view of the risk of property prices falling further, property buyers should NOT rush into buying a property right now. Apart from the worry about the economy and retrenchment, there's also the increasing competition from more launches to come. For example, Frasers Centrepoint will have its preview for Woodsville 28 near Potong Pasir MRT Station this weekend. It is located three MRT stops closer to town than Kovan MRT Station and will compete with nearby Kovan Residences for the shrinking number of buyers.
Ann, a forumer, wrote in the Singapore Property Forum:
Developers had deliberately withheld launches for half a year. Surely there would be a certain level of pent-up demand. However, that small segment of buyers is quickly exhausted, and developers will have to cut prices to move the next lot of units. The full showrooms but lacklustre sales is also not surprising. As someone said, condo-viewing seems to be something of a national passtime in SIngapore. These crowds are clouds without water. Doesn't translate into actual sales.
I'll add one more line to Ann's comment:
If there's pent-up demand, there's even more pent-up supply.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Promising Take-up at Launches of Dakota Residences, Livia, Clover By The Park, Kovan Residences, Amery but Buying Momentum Ceases After Launches
According to a report by Business Times, condos sales are tapering. To me, this comes as no surprise at all. As I've explained in the post: Sales of Livia Condominium at Pasir Ris, I do not see the buying momentum being sustained after the initial surge in number of sales during recent launches.Here's an excerpt of the report from BT, 15 July:
WHILE City Developments managed to sell 96 units last week at its Livia condo at Pasir Ris, developers of most other projects suffered rapidly declining sales at their showflats....Sim Lian sold 19 units last week at its Clover By The Park condo in Bishan, less than the 59-unit sales it achieved in the preceding week...Sim Lian also sold a unit at The Amery, a freehold project in the Telok Kurau area, last week - again a less sparkling performance than the four units it sold a week earlier.... Next to Geylang River, NTUC Choice Homes and Ho Bee found buyers for another nine units at Dakota Residences last weekend. This brings total sales to 170 units in the 99-year project, which has an average price of about $980 psf... Over in the Kovan MRT Station vicinity, the developer of Kovan Residences sold about 20 units last week, bringing total sales to over 100 units since the 99-year project was previewed at a private party on June 28.
Potential buyers should look out for the build up of unsold inventories. Note that 72.8% of the June transactions came from 8 new launches while older launches saw fewer transactions. There is still about 2,720 of launched but unsold units from older projects . Property analysts said that they do not dismiss the possibility of developers lowering their selling prices if unsold inventories continue to build up. Also, developers may launch more projects ahead of the Chinese Lunar Seventh Month (the Ghost Month) which is traditional low season for property buying. The increase in unsold inventories and the expected increased in new launches will likely dampen pricing.
In view of the risk of property prices falling further, property buyers should NOT rush into buying a property right now. Apart from the worry about the economy and retrenchment, there's also the increasing competition from more launches to come. For example, Frasers Centrepoint will have its preview for Woodsville 28 near Potong Pasir MRT Station this weekend. It is located three MRT stops closer to town than Kovan MRT Station and will compete with nearby Kovan Residences for the shrinking number of buyers.
Ann, a forumer, wrote in the Singapore Property Forum:
Developers had deliberately withheld launches for half a year. Surely there would be a certain level of pent-up demand. However, that small segment of buyers is quickly exhausted, and developers will have to cut prices to move the next lot of units. The full showrooms but lacklustre sales is also not surprising. As someone said, condo-viewing seems to be something of a national passtime in SIngapore. These crowds are clouds without water. Doesn't translate into actual sales.
I'll add one more line to Ann's comment:
If there's pent-up demand, there's even more pent-up supply.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
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
Stage 2 downtown line rail network impact value of Freehold Properties along Bt timah, Hillview, Cashew,..
Though desired for their freehold tenure and accessibility to the many elite schools in Singapore, private properties along Bt Timah, Hillivew, Cashew and the like have been sufferring poor rental yield due to their lack of accessibility to public transportation. With the eventual completion of the stage 2 Downtown MRT line in 2015, this may change dramatically, making these freehold properties all the more attractive to property buyers.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
Monday, July 14, 2008
About this Blog
Singapore Tourism Board(STB) deputy chairman and chief executive Lim Neo Chian said that SINGAPORE is 'very concerned' that the growth in visitor arrivals is slowing and is keeping a close watch on how it may affect the government's target for visitors to Singapore this year. Singapore's target for tourist arrivals is an increase 5% to 10.8 million this year. Singapore also targets the number of tourists to rise to 17 million by 2015 with the completion of the two integrated resorts.
Growth in tourists was down to 0.8% in April and May, the slowest expansion in a year, according to data from the STB. Tourists from Indonesia which constitute Singapore's biggest percentage of tourists, fell 12 per cent in May, the steepest decline among all market segments.
The decline in the number of tourists is largely the result of high inflation and weak global economic outlook which dampen travel plans.
This is yet another sign of the Singapore's economy weakening. In the last quarter, Singapore's economic growth is a mere 1.9%, largely the result of plunging orders in the manufacturing sector which has seen increase in retrenchment. However, Singapore has continued to create more jobs in the service industry as its tourism industry grows.
The 1.9% economic growth estimates stunned many economists, who responded by lowering their forecasts for this year and even 2009. United Overseas Bank has trimmed its full-year forecast to 4.7 per cent and 5 per cent in 2009. It cited 'weaker-than-expected second quarter figures, the vulnerability of Singapore's open economy to an external slowdown and the impact of a strong Singdollar on exports'. CIMB-GK economist Song Seng Wun has cut his 2008 growth forecast from 5.7 per cent to 4.6 per cent. Hong Kong-based Sun Mingchun of Lehman Brothers said: 'We expect GDP growth to slow sharply to 4.3 per cent in 2008 from 7.7 per cent in 2007.' Standard Chartered's Alvin Liew, who had earlier predicted growth of 4.5 per cent, has slashed his forecast to just 3.5 per cent.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Economy sees deterioration from manufacturing to tourism
Growth in tourists was down to 0.8% in April and May
Singapore Tourism Board(STB) deputy chairman and chief executive Lim Neo Chian said that SINGAPORE is 'very concerned' that the growth in visitor arrivals is slowing and is keeping a close watch on how it may affect the government's target for visitors to Singapore this year. Singapore's target for tourist arrivals is an increase 5% to 10.8 million this year. Singapore also targets the number of tourists to rise to 17 million by 2015 with the completion of the two integrated resorts.
Growth in tourists was down to 0.8% in April and May, the slowest expansion in a year, according to data from the STB. Tourists from Indonesia which constitute Singapore's biggest percentage of tourists, fell 12 per cent in May, the steepest decline among all market segments.
The decline in the number of tourists is largely the result of high inflation and weak global economic outlook which dampen travel plans.
This is yet another sign of the Singapore's economy weakening. In the last quarter, Singapore's economic growth is a mere 1.9%, largely the result of plunging orders in the manufacturing sector which has seen increase in retrenchment. However, Singapore has continued to create more jobs in the service industry as its tourism industry grows.
Analysts lower forcecast for Singapore Economic Growth for 2008 & 2009
The 1.9% economic growth estimates stunned many economists, who responded by lowering their forecasts for this year and even 2009. United Overseas Bank has trimmed its full-year forecast to 4.7 per cent and 5 per cent in 2009. It cited 'weaker-than-expected second quarter figures, the vulnerability of Singapore's open economy to an external slowdown and the impact of a strong Singdollar on exports'. CIMB-GK economist Song Seng Wun has cut his 2008 growth forecast from 5.7 per cent to 4.6 per cent. Hong Kong-based Sun Mingchun of Lehman Brothers said: 'We expect GDP growth to slow sharply to 4.3 per cent in 2008 from 7.7 per cent in 2007.' Standard Chartered's Alvin Liew, who had earlier predicted growth of 4.5 per cent, has slashed his forecast to just 3.5 per cent.
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
About this Blog
For older folks, the current oil crisis will inevitably bring to mind the oil crisis of the 70s. What parallels can be drawn between the oil crisis then and now? What happened then? Will history repeat itself? Or will it be worse than history?
Most comparisons turn to the low growth, high inflation, weak dollar and soaring energy prices of the 1970s, but this time with a housing crisis and spiking commodities prices thrown in, all threatening a prolonged recession.
The following excerpt from The Oil Recession of the 70s gives a brief description of what happened then:
Back then, the OPEC oil embargo sent crude oil tripling in prices within 6 months from $3.77 a barrel to $12. After which during the late 1978 during the Iran revolution, oil prices doubled to $30. Oil prices multiplied by 10 times within a period of 7 years. During our decade, oil prices increased from $30 to $145 within 5 times. The US Central bank started attacking the oil led recession by increasing interest rates to 20%. It worked but US fell into a deep recession.
Today, the US central bank is trying to achieve a reasonable amount of inflation within the system without resorting to take drastic action to plunge the US into another serious depression. Ben Benarke, the chairman of the central bank, an avid students of the great depression and the 1980s recession is trying to maneuver the economic such that history will not repeat itself again. Benarke has reduced interest rate again and again to help reduce the subprime impact on the US economy. This has however weakened the US dollar,and send oil price higher,
Benarke's walking on tight rope. The squeeze has left him with neither the space to move left or right, so the last Fed meeting saw the interest rate left unchanged.
Meanwhile subprime related losses continue to mount. The recent crisis in Fannie Mae and Freddie Mac and the collapse of IndyMac has sent another shockwave through the market.
And oil price remains at the threatening level of $145 per barrel.
Traders said mounting geopolitical tension in the oil-rich Middle East and unrest in key producer Nigeria will continue to provide underlying support for prices.
"It seems clear that geopolitics will continue to provide fuel for the seemingly relentless rally, with Iran and Western nations still at a standoff over the Islamic republic's pursuit of a uranium enrichment program," said Linda Rafield, senior analyst at energy information provider Platts.
Tehran insists its nuclear drive is aimed solely at generating energy but some Western nations fear it could be aimed at making an atomic bomb and have called for a freeze of its uranium enrichment program.
Iran is the second-biggest crude oil producer in the Organization of the Petroleum Exporting Countries cartel. The country's output is about four million barrels per day.
OPEC has said the cartel would not be able to replace Iran's oil production if supplies were halted in case of a war with Israel or the United States.
Finally, increased demand for oil in the emerging economies like China and India will continue to see supply lagging demand.
George Sorros described the current economic crisis as "slow in coming but the slower it comes, the more powerful it is."
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Oil Crisis of 70s vs 2000s: Will history repeat or Will it be worse than history?
Oil price has doubled thus far, with speculation that it'd surge to $200 or $400 per bareel. Oil price is not only the concern of traders these days, it has become the concern of everyone from housewives to salaried employees to businesses. It is posing a threat to the stability of the world economy today.For older folks, the current oil crisis will inevitably bring to mind the oil crisis of the 70s. What parallels can be drawn between the oil crisis then and now? What happened then? Will history repeat itself? Or will it be worse than history?
Most comparisons turn to the low growth, high inflation, weak dollar and soaring energy prices of the 1970s, but this time with a housing crisis and spiking commodities prices thrown in, all threatening a prolonged recession.
Oil Crisis of 70s result of OPEC oil embargo
The following excerpt from The Oil Recession of the 70s gives a brief description of what happened then:
Back then, the OPEC oil embargo sent crude oil tripling in prices within 6 months from $3.77 a barrel to $12. After which during the late 1978 during the Iran revolution, oil prices doubled to $30. Oil prices multiplied by 10 times within a period of 7 years. During our decade, oil prices increased from $30 to $145 within 5 times. The US Central bank started attacking the oil led recession by increasing interest rates to 20%. It worked but US fell into a deep recession.
Oil Crisis of 2000s result of Weak Dollar, Supply Problems & Increased Demand
Today, the US central bank is trying to achieve a reasonable amount of inflation within the system without resorting to take drastic action to plunge the US into another serious depression. Ben Benarke, the chairman of the central bank, an avid students of the great depression and the 1980s recession is trying to maneuver the economic such that history will not repeat itself again. Benarke has reduced interest rate again and again to help reduce the subprime impact on the US economy. This has however weakened the US dollar,and send oil price higher,
Benarke's walking on tight rope. The squeeze has left him with neither the space to move left or right, so the last Fed meeting saw the interest rate left unchanged.
Meanwhile subprime related losses continue to mount. The recent crisis in Fannie Mae and Freddie Mac and the collapse of IndyMac has sent another shockwave through the market.
And oil price remains at the threatening level of $145 per barrel.
Traders said mounting geopolitical tension in the oil-rich Middle East and unrest in key producer Nigeria will continue to provide underlying support for prices.
"It seems clear that geopolitics will continue to provide fuel for the seemingly relentless rally, with Iran and Western nations still at a standoff over the Islamic republic's pursuit of a uranium enrichment program," said Linda Rafield, senior analyst at energy information provider Platts.
Tehran insists its nuclear drive is aimed solely at generating energy but some Western nations fear it could be aimed at making an atomic bomb and have called for a freeze of its uranium enrichment program.
Iran is the second-biggest crude oil producer in the Organization of the Petroleum Exporting Countries cartel. The country's output is about four million barrels per day.
OPEC has said the cartel would not be able to replace Iran's oil production if supplies were halted in case of a war with Israel or the United States.
Finally, increased demand for oil in the emerging economies like China and India will continue to see supply lagging demand.
George Sorros described the current economic crisis as "slow in coming but the slower it comes, the more powerful it is."
May also want to read:
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
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Subscribe to:
Posts (Atom)
