Friday, February 20, 2009
About this Blog
SmallTimer said:
"isit? can quote any report? i just got sms from agent that it is 80% sold so what is the latest? at first i laugh at the email from agent that markets this project saying that the value will appreciate by 2011 (TOP time) and rental can yield 5% .... i was wondering who the hell will believe all this bullshit. but i was wrong ... there are apparently a lot of people that take thing pretty much as the email says and dive into buying. good luck for them. me, i would rather miss the boat keep my cash then buying such over-priced property. "
Commentor#2 said:
"c'mon, common sense tells me that if the take up rate is so good, the paper will splash out immediately or at most the next day like the Caspian. I read the paper every day and till now did not see anything at all. Action speaks louder than Words, ALWAYS.
You are not sensibly talking but blatantly lying.
Actually I hope you are telling the truth because it is more of a Good News than Bad. Those Bullshitter, you think yourself, I am not going to explain why. "
Extracted from the Singapore Property Forum.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Alexis at Alexandra sold out?
Property agents said Alexis@Alexandra was sold out within 3 days. The following are responses from forumers.SmallTimer said:
"isit? can quote any report? i just got sms from agent that it is 80% sold so what is the latest? at first i laugh at the email from agent that markets this project saying that the value will appreciate by 2011 (TOP time) and rental can yield 5% .... i was wondering who the hell will believe all this bullshit. but i was wrong ... there are apparently a lot of people that take thing pretty much as the email says and dive into buying. good luck for them. me, i would rather miss the boat keep my cash then buying such over-priced property. "
Commentor#2 said:
"c'mon, common sense tells me that if the take up rate is so good, the paper will splash out immediately or at most the next day like the Caspian. I read the paper every day and till now did not see anything at all. Action speaks louder than Words, ALWAYS.
You are not sensibly talking but blatantly lying.
Actually I hope you are telling the truth because it is more of a Good News than Bad. Those Bullshitter, you think yourself, I am not going to explain why. "
Extracted from the Singapore Property Forum.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Sunday, February 8, 2009
About this Blog
"why the media make such a hoohah about Caspan... price drop but only sold 80 units ... economy is going down, more people loosing jobs, so why people stil have to pay high high price for property...making the poor suffer and the rich richer!! HDB flat price also more than half million..how to live"
Anonymous wrote:
"my guess is this going to be like Livia, only hot during initial launch and then sale die again..80 units out of 712 units is only about 10%.. nothing to hoohah about!"
Above comments on Caspan sale are extracted from the Singapore Property Forum.
News report: Business Times - 7 Feb 2009
THE year’s first major release of a private housing project has shown that there’s still demand for projects priced attractively. Frasers Centrepoint had sold close to 80 units at its Caspian condo near Jurong Lake by late last night, the company’s CEO, Lim Ee Seng, told BT.
About 70 per cent of buyers are estimated to be HDB upgraders; the rest had private addresses. Singaporeans accounted for more than 85 per cent of buyers. Only a fifth of the buyers so far have opted for the interest absorption scheme offered by the developer. This means that they pay 3 per cent higher for their units.
The project is priced at $580 per square foot (psf) on average for buyers who opt for normal progress payment.
Property market watchers expect sales in the 99-year-leasehold condo next to Lakeside MRT Station to pick up steadily over the weekend.
Frasers Centrepoint had meant to open its showflat for sales to staff on Thursday, but decided to start selling in the evening to other buyers who had started gathering outside. The average price of $580 psf - or $598 psf for those who opt for interest absorption - is for the 250 units being marketed in the first phase.
Knight Frank executive director Peter Ow, whose firm is not involved with marketing the project, said: ‘The response is very encouraging in today’s market. It goes to show that there’s still demand in the market, as long as the project is priced attractively. Those who want the location will buy. I believe buyers would be buying predominantly for owner occupation.’
The 712-unit Caspian is being built next to LakeHolmz, an earlier condo by Frasers Centrepoint that was completed about four years ago. Units in LakeHolmz are going for about $600 psf on average in the resale market, while further away, units at The Lakeshore, which was completed more recently, are fetching an average price of around $750 psf.
Frasers Centrepoint indicated that 80 per cent of the Caspian units sold are two and three-bedders.
A strong draw of the project is its location in the Jurong Lakeside District, for which the government has big growth plans as a unique destination for business and leisure, and a vibrant regional centre serving the west region of Singapore. The project’s location next to Lakeside MRT Station will also receive a boost from the extension of the East-West MRT Line with the opening of new stations this month.
Frasers Centrepoint’s Mr Lim said: ‘We’re happy with the positive response generated by Caspian, which will hopefully create some impetus to the otherwise sluggish market.
‘We did a thorough market research and survey, which resulted in a substantial number of potential buyers indicating firm interest within a certain price range. We then launched below this price range to further boost the demand.’
He did not indicate what the surveyed average price range was, but BT understands that it was in the low to mid-$600 psf range.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Caspan at Jurong Lakeside selling hot?
Caspan hot? said"why the media make such a hoohah about Caspan... price drop but only sold 80 units ... economy is going down, more people loosing jobs, so why people stil have to pay high high price for property...making the poor suffer and the rich richer!! HDB flat price also more than half million..how to live"
Anonymous wrote:
"my guess is this going to be like Livia, only hot during initial launch and then sale die again..80 units out of 712 units is only about 10%.. nothing to hoohah about!"
Above comments on Caspan sale are extracted from the Singapore Property Forum.
News report: Business Times - 7 Feb 2009
Frasers Centrepoint brings cheer to market with sale of 80 units at Caspian’s preview at $580psf
THE year’s first major release of a private housing project has shown that there’s still demand for projects priced attractively. Frasers Centrepoint had sold close to 80 units at its Caspian condo near Jurong Lake by late last night, the company’s CEO, Lim Ee Seng, told BT.
About 70 per cent of buyers are estimated to be HDB upgraders; the rest had private addresses. Singaporeans accounted for more than 85 per cent of buyers. Only a fifth of the buyers so far have opted for the interest absorption scheme offered by the developer. This means that they pay 3 per cent higher for their units.
The project is priced at $580 per square foot (psf) on average for buyers who opt for normal progress payment.
Property market watchers expect sales in the 99-year-leasehold condo next to Lakeside MRT Station to pick up steadily over the weekend.
Frasers Centrepoint had meant to open its showflat for sales to staff on Thursday, but decided to start selling in the evening to other buyers who had started gathering outside. The average price of $580 psf - or $598 psf for those who opt for interest absorption - is for the 250 units being marketed in the first phase.
Knight Frank executive director Peter Ow, whose firm is not involved with marketing the project, said: ‘The response is very encouraging in today’s market. It goes to show that there’s still demand in the market, as long as the project is priced attractively. Those who want the location will buy. I believe buyers would be buying predominantly for owner occupation.’
The 712-unit Caspian is being built next to LakeHolmz, an earlier condo by Frasers Centrepoint that was completed about four years ago. Units in LakeHolmz are going for about $600 psf on average in the resale market, while further away, units at The Lakeshore, which was completed more recently, are fetching an average price of around $750 psf.
Frasers Centrepoint indicated that 80 per cent of the Caspian units sold are two and three-bedders.
A strong draw of the project is its location in the Jurong Lakeside District, for which the government has big growth plans as a unique destination for business and leisure, and a vibrant regional centre serving the west region of Singapore. The project’s location next to Lakeside MRT Station will also receive a boost from the extension of the East-West MRT Line with the opening of new stations this month.
Frasers Centrepoint’s Mr Lim said: ‘We’re happy with the positive response generated by Caspian, which will hopefully create some impetus to the otherwise sluggish market.
‘We did a thorough market research and survey, which resulted in a substantial number of potential buyers indicating firm interest within a certain price range. We then launched below this price range to further boost the demand.’
He did not indicate what the surveyed average price range was, but BT understands that it was in the low to mid-$600 psf range.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Saturday, February 7, 2009
About this Blog
"I am not a bull and want overpriced property prices in singapore to come to some sense. Unfortunately, prices will possibly rise because our pragmatic Government will get involved in helping whatever companies to obtain financing by taking a major amount of risk on their defaults.
Companies big or small or medium will rush in to get easy credit nowadays up to 4 years from S$5m to S$50m on the pretext of working capital needs and started to use this spare cash to speculate in shares and properties. The resilient packages have alot of loopholes and it is easy to exploit.
The abuse is starting and how you expect the bank or government going to control. Then the government has waived and help developers to delay their launching of projects by extension of construction dates and postpone land sales indefinitely.
You see all these are calculated to help the developers, the rich and vested people. We have the public funds and reserves to help them.
Then the developers will given a freehand to start to blow the horn about singapore growing into a GLOBAL CITY, Jurong, Kallang and Paya Lebar regional centres and MRTs, IRs, F1 and a Swiss standard of living in the making. Singaporeans all easily buy these and rush and drive property prices up and up.
You see it is all planned.
So if you want to speculate or buy, go go at your timing. But why when it is already overpriced and so artificial. If it goes up, it is not for the average, it is for the rich and speculators. "
MORE GREED AND FEAR SAID:
"It is a scary situation because there are billions available for speculation now and ready to be abused. it is going to be messy, deceptive, pretentious, greed and fear of losing out . Banks are swarmed with thousands and thousands of applications to process. More and more such loans are released into the system and the companies are rushing in to use these companies to speculate. Companies even Ok are pretending to be wanting to retrench and expand. They are taking advantage of the RESILIENT PACKAGES to speculate.
Good news for developers and speculators!!!!! Sorry bears! "
GUEST REPLIED:
"You think our govt is stupid or what? or are you stupid? You think our govt will lend money for companies to speculate? They only lend to companies with sound business lah!! Sorry bulls! Property crashing liao!!!! "
DAMNSHIT SAID:
"I am RICH, BASTARD i am very illiquid. DAMN if I can't sell my property at 2008 price and over time when I lost my holding power, I sure beome poor SHIT. "
GUEST SAID:
"I don't think the govt resilient package will cause property price to rise. It may help developers to delay launches but ultimately, developers must sell properties to be in business. With jobless rate climbing and household income dropping, demand will shrink, esp for private property. How long can the developers hold on to their unsold properties? How long can the speculators hold on? Even if economic recovery comes by the end of 2009, it will be slow. Household income will take a long time to catch up with sky-high property price. So the way I see it, either developers stop selling properties and be out of business for a long time or lower their prices to a more affordable level to move sale. The days of wild speculation using easy credits from the banks are over!!! So what's there to sustain the current high price even if govt gives developers more time? It'll take years for household income to catch up with current high property price and can the developers wait for years?"
Extracted from the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Can government resilient package save the property market?
GREED AND FEAR SAID:"I am not a bull and want overpriced property prices in singapore to come to some sense. Unfortunately, prices will possibly rise because our pragmatic Government will get involved in helping whatever companies to obtain financing by taking a major amount of risk on their defaults.
Companies big or small or medium will rush in to get easy credit nowadays up to 4 years from S$5m to S$50m on the pretext of working capital needs and started to use this spare cash to speculate in shares and properties. The resilient packages have alot of loopholes and it is easy to exploit.
The abuse is starting and how you expect the bank or government going to control. Then the government has waived and help developers to delay their launching of projects by extension of construction dates and postpone land sales indefinitely.
You see all these are calculated to help the developers, the rich and vested people. We have the public funds and reserves to help them.
Then the developers will given a freehand to start to blow the horn about singapore growing into a GLOBAL CITY, Jurong, Kallang and Paya Lebar regional centres and MRTs, IRs, F1 and a Swiss standard of living in the making. Singaporeans all easily buy these and rush and drive property prices up and up.
You see it is all planned.
So if you want to speculate or buy, go go at your timing. But why when it is already overpriced and so artificial. If it goes up, it is not for the average, it is for the rich and speculators. "
MORE GREED AND FEAR SAID:
"It is a scary situation because there are billions available for speculation now and ready to be abused. it is going to be messy, deceptive, pretentious, greed and fear of losing out . Banks are swarmed with thousands and thousands of applications to process. More and more such loans are released into the system and the companies are rushing in to use these companies to speculate. Companies even Ok are pretending to be wanting to retrench and expand. They are taking advantage of the RESILIENT PACKAGES to speculate.
Good news for developers and speculators!!!!! Sorry bears! "
GUEST REPLIED:
"You think our govt is stupid or what? or are you stupid? You think our govt will lend money for companies to speculate? They only lend to companies with sound business lah!! Sorry bulls! Property crashing liao!!!! "
DAMNSHIT SAID:
"I am RICH, BASTARD i am very illiquid. DAMN if I can't sell my property at 2008 price and over time when I lost my holding power, I sure beome poor SHIT. "
GUEST SAID:
"I don't think the govt resilient package will cause property price to rise. It may help developers to delay launches but ultimately, developers must sell properties to be in business. With jobless rate climbing and household income dropping, demand will shrink, esp for private property. How long can the developers hold on to their unsold properties? How long can the speculators hold on? Even if economic recovery comes by the end of 2009, it will be slow. Household income will take a long time to catch up with sky-high property price. So the way I see it, either developers stop selling properties and be out of business for a long time or lower their prices to a more affordable level to move sale. The days of wild speculation using easy credits from the banks are over!!! So what's there to sustain the current high price even if govt gives developers more time? It'll take years for household income to catch up with current high property price and can the developers wait for years?"
Extracted from the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Thursday, January 29, 2009
About this Blog
But alas, the budget did not address the buyers sentiments for today and tomorrow market. Think about it so what if the developers are given a special boost? People are still not buying! Inventory still stuck.
It is true that current prices have soften somewhat as compared to 2007/8 levels. For those who can afford, perhaps it's not bad a time to accquire your choice property. You can part away your money and help the developers pull through bad times. Your generosity will be much appreciated by them.
But for the average joe or bargainers, prices are still 50% higher than that of 2006/7 levels! For home owners, there's a major difference between a HOME and a HOUSE. When mortgage loan is at stake of repayment during such times, your HOME where one finds comfort, will become simply a HOUSE.
Read deeper my friends, the situation is so bad for real estate that the government had to give a lending hand to mitigate the impact. Demand are simply diminishing as we move deeper into 2009.
Even Tharman is not sure if 2010 will recover. And pls dont tell me abt Mr. Obama. 2 days after his inaugural, Dow Jones fell briefly below the psychological of 8000! "Change we must?!"
I am an optimistic person but yet realistic. I do wish things will recovery soon as I need a HOME over my head. But given all obvious indicators, the directions of the pole are clear, South.
If we continue to see demand trickle based on current bad market sentiments, a thin lifeline will simply becomes a thread. It snaps... Therefore?
The above comment is posted by Humble Bee in the Singapore Property Forum with reference to the news article below:
Jan 22, 2009
Budget 2009
Boost for property sector
By Fiona Chan
THE ailing property sector got a special Budget boost on Thursday, as a host of measures was unveiled to help real estate companies.
With more developers delaying their launches to wait out the downturn in buying demand, the Government focused mainly on extending aid to them in this area.
Property tax was deferred for two years for land approved for development, so developers sitting on their land bank will not have to pay this tax - which can amount to millions of dollars - for the time being.
Specific attention was also paid to developers who bought government land sites, and foreign developers who own private residential land here, as there are stricter rules that apply to them.
Normally, they have to develop the land within six years, in order to ensure that these developments are completed 'within a reasonable period after the land sale', said the Government. They also cannot resell the land without developing it.
But now, these developers have been given a one-year extension of this period so that they have more flexibility in building and selling their developments according to market conditions.
On top of that, those who have decided they want out of the business can now resell the land or dispose of their interest in it before Jan 21 next year.
Foreign developers also received more leeway. Currently, they are required to sell all the units in their project within two years of completion and are not allowed to rent out any unsold units.
Now, they have been given two more years to dispose of the units, and can also rent out any unsold units for up to four years.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Ailing property sector got a special Budget boost but can it really revive the property market?
I am happy for the developers that were given a thin lifeline through this bad times.But alas, the budget did not address the buyers sentiments for today and tomorrow market. Think about it so what if the developers are given a special boost? People are still not buying! Inventory still stuck.
It is true that current prices have soften somewhat as compared to 2007/8 levels. For those who can afford, perhaps it's not bad a time to accquire your choice property. You can part away your money and help the developers pull through bad times. Your generosity will be much appreciated by them.
But for the average joe or bargainers, prices are still 50% higher than that of 2006/7 levels! For home owners, there's a major difference between a HOME and a HOUSE. When mortgage loan is at stake of repayment during such times, your HOME where one finds comfort, will become simply a HOUSE.
Read deeper my friends, the situation is so bad for real estate that the government had to give a lending hand to mitigate the impact. Demand are simply diminishing as we move deeper into 2009.
Even Tharman is not sure if 2010 will recover. And pls dont tell me abt Mr. Obama. 2 days after his inaugural, Dow Jones fell briefly below the psychological of 8000! "Change we must?!"
I am an optimistic person but yet realistic. I do wish things will recovery soon as I need a HOME over my head. But given all obvious indicators, the directions of the pole are clear, South.
If we continue to see demand trickle based on current bad market sentiments, a thin lifeline will simply becomes a thread. It snaps... Therefore?
The above comment is posted by Humble Bee in the Singapore Property Forum with reference to the news article below:
Jan 22, 2009
Budget 2009
Boost for property sector
By Fiona Chan
THE ailing property sector got a special Budget boost on Thursday, as a host of measures was unveiled to help real estate companies.
With more developers delaying their launches to wait out the downturn in buying demand, the Government focused mainly on extending aid to them in this area.
Property tax was deferred for two years for land approved for development, so developers sitting on their land bank will not have to pay this tax - which can amount to millions of dollars - for the time being.
Specific attention was also paid to developers who bought government land sites, and foreign developers who own private residential land here, as there are stricter rules that apply to them.
Normally, they have to develop the land within six years, in order to ensure that these developments are completed 'within a reasonable period after the land sale', said the Government. They also cannot resell the land without developing it.
But now, these developers have been given a one-year extension of this period so that they have more flexibility in building and selling their developments according to market conditions.
On top of that, those who have decided they want out of the business can now resell the land or dispose of their interest in it before Jan 21 next year.
Foreign developers also received more leeway. Currently, they are required to sell all the units in their project within two years of completion and are not allowed to rent out any unsold units.
Now, they have been given two more years to dispose of the units, and can also rent out any unsold units for up to four years.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Friday, January 23, 2009
About this Blog
The Additional CPF Housing Grant for first time home-buyers will be increased from
S$30,000 to S$40,000. The additional housing grant is provided to help lower-income families buy their first HDB flat, which can be a new HDB flat or a resale flat.
The household income ceiling to qualify for this will also be raised from S$4,000 to S$5,000.
The above policies will likely provide some additional support to HDB resale flat prices during the current economic downturn given that more housing subsidy is available to more first-time home buyers. Smaller HDB flats will be the greatest beneficiary.
8,000 home-buyers are expected to benefit from this scheme each year, costing the government about S$150 million per year.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Singapore Government Budget to benefit more home-buyers of HDB flats
Under the latest Singapore goverment budget announced yesterday, home-buyers will get more help to pay for their first home.The Additional CPF Housing Grant for first time home-buyers will be increased from
S$30,000 to S$40,000. The additional housing grant is provided to help lower-income families buy their first HDB flat, which can be a new HDB flat or a resale flat.
The household income ceiling to qualify for this will also be raised from S$4,000 to S$5,000.
The above policies will likely provide some additional support to HDB resale flat prices during the current economic downturn given that more housing subsidy is available to more first-time home buyers. Smaller HDB flats will be the greatest beneficiary.
8,000 home-buyers are expected to benefit from this scheme each year, costing the government about S$150 million per year.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
URA data also shows that rents in the fourth quarter slipped 5.3 per cent.
The drop marked the second quarterly decline in residential property prices following a 2.4 per cent fall in July-September.
The decline in prices during the fourth quarter was also steeper than the initial estimate of a 5.7 per cent drop made earlier this month.
Rents during the October-December period fell by 5.3 per cent, the Urban Redevelopment Authority (URA) said.
Singapore releases advance estimates on property prices shortly after the end of each quarter based primarily on transactions during the first 10 weeks of the period.
The government subsequently provides detailed data for the period that includes price changes by region as well as rental trends.
Singapore's gross domestic product shrank in the fourth quarter at a deeper-than-expected seasonally adjusted rate of 16.9 per cent, the biggest fall on record, and the government said the economy may contract as much as 5 per cent this year.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Singapore private property prices fell 6.1% & rents fell 5.3% in Q4 2008 :
Singapore private home prices fell 6.1 per cent in the fourth quarter as the city-state plunged into its worst ever recession, government data showed on Friday.URA data also shows that rents in the fourth quarter slipped 5.3 per cent.
The drop marked the second quarterly decline in residential property prices following a 2.4 per cent fall in July-September.
The decline in prices during the fourth quarter was also steeper than the initial estimate of a 5.7 per cent drop made earlier this month.
Rents during the October-December period fell by 5.3 per cent, the Urban Redevelopment Authority (URA) said.
Singapore releases advance estimates on property prices shortly after the end of each quarter based primarily on transactions during the first 10 weeks of the period.
The government subsequently provides detailed data for the period that includes price changes by region as well as rental trends.
Singapore's gross domestic product shrank in the fourth quarter at a deeper-than-expected seasonally adjusted rate of 16.9 per cent, the biggest fall on record, and the government said the economy may contract as much as 5 per cent this year.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
The median Cash-Over-Valuation (COV) amount among all resale transactions conducted in Q4 2008 was $15,000, which was $4,000 lower than that in Q3 2008. Cases requiring COV constituted 85% of all resale transactions in Q4 2008, 4% lesser than that in Q3 2008.
Resale transactions decreased by about 24%, from about 8,110 cases in Q3 2008 to about 6,190 cases in Q4 2008. The total number of resale transactions for 2008 was 28,419, about 3% lower than in 2007.
On the HDB rental market, HDB housing data shows that median sublet rents for HDB flats in Q4 2008 remained the same as those in the previous quarter, except for 2-room flats which have a median slightly higher by $100 compared to Q3 2008. However, HDB subletting transactions fell by 7% from about 3,960 cases in Q3 2008 to about 3,690 cases in Q4 2008 which may be an early sign of falling rental demand.
The latest housing data indicates that the recession may have started to take its toll on the HDB resale market.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
HDB Resale Price Rose 1.4% but sales fell 24% in Q4 2008
According HDB housing data, HDB’s Resale Price Index (RPI) rose by 1.4% in 4th Quarter 2008 over the previous quarter, lower than the 4.2% increase seen in 3rd Quarter 2008.The median Cash-Over-Valuation (COV) amount among all resale transactions conducted in Q4 2008 was $15,000, which was $4,000 lower than that in Q3 2008. Cases requiring COV constituted 85% of all resale transactions in Q4 2008, 4% lesser than that in Q3 2008.
Resale transactions decreased by about 24%, from about 8,110 cases in Q3 2008 to about 6,190 cases in Q4 2008. The total number of resale transactions for 2008 was 28,419, about 3% lower than in 2007.
On the HDB rental market, HDB housing data shows that median sublet rents for HDB flats in Q4 2008 remained the same as those in the previous quarter, except for 2-room flats which have a median slightly higher by $100 compared to Q3 2008. However, HDB subletting transactions fell by 7% from about 3,960 cases in Q3 2008 to about 3,690 cases in Q4 2008 which may be an early sign of falling rental demand.
The latest housing data indicates that the recession may have started to take its toll on the HDB resale market.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Saturday, January 17, 2009
About this Blog
I would like to ask your expert opinion if value of property will likely appreciate more at Tiong Bahru (eg: Meraprime) where amenities are aplenty or tail-end of river valley (eg: Valley Park) when the market/economy recovers. Thanks.
Smart Buyer replied:
No doubt Meraprime has a good location but the current price a mind-blowing $12xx psf and it's a 99LH property. It reminds me of how hot nearby Central Green was in the mid 90s. Now it's going at about $8xx psf. So you can see a significant discount for older condos in the same locations. You may also like to take note that between 2002-2004, Central Green dropped as low as $4xxpsf. That will give some indication of the risk of entering at a high price.
Valley Park doesn't have the MRT-location of Meraprime but it's FH. Going price is still high at $1xxx psf. Prices fell to about $6xx psf in 2003.
In summary, 99LH property price falls faster in a downturn and with age but commands better rental rate. (If you like more info on comparing 99LH with FH, ps do a blog search here.)
Quite obvously, this is still not the time to enter the market. I don't know if prices will fall to an attractive level for these properties to make good investment value. I'm in no hurry. In fact, I'd simply turn to other types of investment if property remains over-valued. I don't know if you're in the same situation, so I can't tell what you should do.
Who's to know how long it will take the property market to recover? Whether they will appreciate or not, or more importantly by how much, would depend on your purchase price. At the current price level, I can see very little upside and plenty of risk.
Original post: Property Buying Advice: What to buy
Blog visitors are welcome to contribute their recommendations on which condo to buy.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Which condo to buy? Meraprime or Park Valley? Recommendations and Discussions
Hello Smart Buyer!I would like to ask your expert opinion if value of property will likely appreciate more at Tiong Bahru (eg: Meraprime) where amenities are aplenty or tail-end of river valley (eg: Valley Park) when the market/economy recovers. Thanks.
Smart Buyer replied:
No doubt Meraprime has a good location but the current price a mind-blowing $12xx psf and it's a 99LH property. It reminds me of how hot nearby Central Green was in the mid 90s. Now it's going at about $8xx psf. So you can see a significant discount for older condos in the same locations. You may also like to take note that between 2002-2004, Central Green dropped as low as $4xxpsf. That will give some indication of the risk of entering at a high price.
Valley Park doesn't have the MRT-location of Meraprime but it's FH. Going price is still high at $1xxx psf. Prices fell to about $6xx psf in 2003.
In summary, 99LH property price falls faster in a downturn and with age but commands better rental rate. (If you like more info on comparing 99LH with FH, ps do a blog search here.)
Quite obvously, this is still not the time to enter the market. I don't know if prices will fall to an attractive level for these properties to make good investment value. I'm in no hurry. In fact, I'd simply turn to other types of investment if property remains over-valued. I don't know if you're in the same situation, so I can't tell what you should do.
Who's to know how long it will take the property market to recover? Whether they will appreciate or not, or more importantly by how much, would depend on your purchase price. At the current price level, I can see very little upside and plenty of risk.
Original post: Property Buying Advice: What to buy
Blog visitors are welcome to contribute their recommendations on which condo to buy.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Monday, January 12, 2009
About this Blog
What is you opinion on FH property in Gelyang Loring 28? I heard banks will not give loan for such properties. What are the risk on investment returns on such properties?
Smart Buyer replied:
I've viewed some of the freehold properties there: greatest attraction is cheap. But they are not cheap for no reason. You'd probably have problem getting a bank loan. If you are thinking of staying there, take note that it's generally unsuitable for family-people. If you are thinking of buying a rental property, you may be dealing with certain category of tenants. The greatest risk is of course the difficulty of selling such a property.
Do consider carefully.
Original post: Property buyers lost? Buy or Don't Buy?
Chinamoon said:
I am man of modest means and cannot afford to spend too much on property.
Here are my thoughts:
PROS: (no pun intended)
1. Cheap because of rampant prostitution and gangland activities
2. Near town
3. Good yield as principal low
4. Possible redevelopment although this will be many years in future if it does happen
CONS:
1. Hard to take loan, banks unwilling to finance because of poor resale prospects, finance companies will provide but percentage of valuation not high
2. Prostitution and gangland violence everywhere, so very noisy and unsafe, not suitable for family
3. High maintenance as most property are rented out and tenants heck care the property
What are those I may have left out?
Anonymous replied:
no need to buy Geylang properties. People are backing off from options. Wait, there will be cheaper properties as Singapore enter into its worst ever recessions in history. Dont be fool by hypes of Sport Hubts, MRTs, near city, etc.
SmallTimer replied:
I have no experience buying propety in geylang area but would like to add a few points
1) the area tends to attract low life so when u rent aren't u afriad u will get one of them that would not only not pay rent on time but use your property to break the law?
2) even if your property is a few streets away from the vice activities there is no way to know if they will ever setup "shop" at your door step. all it takes is a few girls to decide to stand around there to parade their service or a popular massage place / nightclub to open nearby. or worst a cheapo hotel.
i would stay away from this area if i were u.
Extracted from the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Buying Freehold Properties in Geylang: Pros and Cons Discussion
Seng asked:What is you opinion on FH property in Gelyang Loring 28? I heard banks will not give loan for such properties. What are the risk on investment returns on such properties?
Smart Buyer replied:
I've viewed some of the freehold properties there: greatest attraction is cheap. But they are not cheap for no reason. You'd probably have problem getting a bank loan. If you are thinking of staying there, take note that it's generally unsuitable for family-people. If you are thinking of buying a rental property, you may be dealing with certain category of tenants. The greatest risk is of course the difficulty of selling such a property.
Do consider carefully.
Original post: Property buyers lost? Buy or Don't Buy?
Chinamoon said:
I am man of modest means and cannot afford to spend too much on property.
Here are my thoughts:
PROS: (no pun intended)
1. Cheap because of rampant prostitution and gangland activities
2. Near town
3. Good yield as principal low
4. Possible redevelopment although this will be many years in future if it does happen
CONS:
1. Hard to take loan, banks unwilling to finance because of poor resale prospects, finance companies will provide but percentage of valuation not high
2. Prostitution and gangland violence everywhere, so very noisy and unsafe, not suitable for family
3. High maintenance as most property are rented out and tenants heck care the property
What are those I may have left out?
Anonymous replied:
no need to buy Geylang properties. People are backing off from options. Wait, there will be cheaper properties as Singapore enter into its worst ever recessions in history. Dont be fool by hypes of Sport Hubts, MRTs, near city, etc.
SmallTimer replied:
I have no experience buying propety in geylang area but would like to add a few points
1) the area tends to attract low life so when u rent aren't u afriad u will get one of them that would not only not pay rent on time but use your property to break the law?
2) even if your property is a few streets away from the vice activities there is no way to know if they will ever setup "shop" at your door step. all it takes is a few girls to decide to stand around there to parade their service or a popular massage place / nightclub to open nearby. or worst a cheapo hotel.
i would stay away from this area if i were u.
Extracted from the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Friday, January 2, 2009
About this Blog
Prices of non-landed private residential properties decreased by 6.3% in Core Central Region, 5.5% in Rest of Central Region and 4.7% in Outside Central Region in the quarter. In comparison, for 3rd Quarter 2008, prices of non-landed private residential properties decreased by 2.7% in Core Central Region, 2.4% in Rest of Central Region and 1.5% in Outside Central Region.
Homes in prime areas registered the biggest price fall, with apartments in the core central region declining 6.3 per cent compared with a drop of 4.7 per cent in outlying areas.
Many analysts expect Singapore property prices to keep falling in 2009. RBS predicts a price drop of 30 per cent in prime areas and a decline of 10 per cent in outlying areas.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
URA Quarter 4 2008 Real Estate Statistics Flash: Private Property Price Fell 5.5%
URA Quarter 4 2008 Real Estate Statistics Flash shows that private property price index slipped 5.7% in fourth quarter 2008 over the preceding quarter, following a 2.4% quarter-on-quarter fall in Q3.Prices of non-landed private residential properties decreased by 6.3% in Core Central Region, 5.5% in Rest of Central Region and 4.7% in Outside Central Region in the quarter. In comparison, for 3rd Quarter 2008, prices of non-landed private residential properties decreased by 2.7% in Core Central Region, 2.4% in Rest of Central Region and 1.5% in Outside Central Region.
Homes in prime areas registered the biggest price fall, with apartments in the core central region declining 6.3 per cent compared with a drop of 4.7 per cent in outlying areas.
Many analysts expect Singapore property prices to keep falling in 2009. RBS predicts a price drop of 30 per cent in prime areas and a decline of 10 per cent in outlying areas.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
Experts, however, said this resistance to downward pressure in the HDB resale market is expected to continue despite the economic downturn.
Eugene Lim, associate director, ERA Asia Pacific, said: "Buyers are coming from people who are upgrading (and) people who are downgrading... also, from the increase in the population of PRs (permanent residents). So the (demand for) HDB resale flats is very strong."
Observers said they expect flat or slow declines for public housing prices compared to steeper devaluations in the private home sector. They added this is the trend during times of uncertainty when home buyers opt for the safer option of HDB flats.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
HDB Flash Estimate 4th Quarter 2008 Resale Price Index: HDB Resale flat price index rose 1.5%
Housing & Development Board's resale flat price index rose 1.5% in fourth quarter 2008 over the preceding quarter. This was slower than the 4.2% quarter-on-quarter rise in Q3 2008. For the whole of 2008, the resale flat price index registered a 14.6% gain. The data indicates that HDB resale flat price is peaking, which does not come as a surprise given the increased momentum at which the economy is slowing.Experts, however, said this resistance to downward pressure in the HDB resale market is expected to continue despite the economic downturn.
Eugene Lim, associate director, ERA Asia Pacific, said: "Buyers are coming from people who are upgrading (and) people who are downgrading... also, from the increase in the population of PRs (permanent residents). So the (demand for) HDB resale flats is very strong."
Observers said they expect flat or slow declines for public housing prices compared to steeper devaluations in the private home sector. They added this is the trend during times of uncertainty when home buyers opt for the safer option of HDB flats.
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Thursday, January 1, 2009
About this Blog
"see who blinks first".
Its a seige. You rather starve than sell? OK, let's see if Singapore devlopers are somehow unique in being able to defy all history and the world in dissociating price from recessions and supply gluts. Already, once-proud markets have capitulated... from New York to London to Shanghai to HK... no one is immune.
"hunters pointed to just one reason: Home prices are still too high."
"Prices shooting beyond their (buyer's) means"
Its so funny. Like Bush, Pernanke and Paulson in early 2008 who, die, die also won't say the "R" word, developers won't admit that prices are too high even though its obvious to all. Machiam like "voldermort".
This denial still continues even when they tacitly admit to the realities.... sure, ok, I give in, you can have a 'rebate', a 'discount', a 'stamp duty absorption', 'furniture rebate' etc... just don't call it like what it is... a price fall.
"But the situation is set to worsen sharply for sellers as the economy contracts sharply"
Its not only worsening for sellers, but also buyers. As economy hits salaries, bonuses, and job-security of buyers, there will be fewer able or willing to pay the unrealistic price premiums commanded by sellers.
Posted by Ann in the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Property Buyers' one reason for not buying: Private Property Prices are still too high
Some comments on the article "Time to lower home prices; Straits Times 31 Dec 2008"..."see who blinks first".
Its a seige. You rather starve than sell? OK, let's see if Singapore devlopers are somehow unique in being able to defy all history and the world in dissociating price from recessions and supply gluts. Already, once-proud markets have capitulated... from New York to London to Shanghai to HK... no one is immune.
"hunters pointed to just one reason: Home prices are still too high."
"Prices shooting beyond their (buyer's) means"
Its so funny. Like Bush, Pernanke and Paulson in early 2008 who, die, die also won't say the "R" word, developers won't admit that prices are too high even though its obvious to all. Machiam like "voldermort".
This denial still continues even when they tacitly admit to the realities.... sure, ok, I give in, you can have a 'rebate', a 'discount', a 'stamp duty absorption', 'furniture rebate' etc... just don't call it like what it is... a price fall.
"But the situation is set to worsen sharply for sellers as the economy contracts sharply"
Its not only worsening for sellers, but also buyers. As economy hits salaries, bonuses, and job-security of buyers, there will be fewer able or willing to pay the unrealistic price premiums commanded by sellers.
Posted by Ann in the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
WHEN a property boom here ends, the first casualty is usually home supply.
Sure enough, the Government put a stop to new land sales early this month, as it did in the last two downturns, making it as good an indicator as any that a property slump had arrived.
Developers have also been cutting supply throughout the year, pushing back en bloc redevelopments and putting some launches on hold indefinitely.
But though reducing supply is necessary to prevent the market from collapsing, it is clearly inadequate as a cure at this point. No land plots have changed hands for months, new launches have slowed to a trickle - and yet buyers are still not biting. Property ads have dried up and showflats are starting to resemble ghost towns.
When sales came to a standstill this year, developers blamed the financial crisis and government policy actions, such as the removal of the deferred payment scheme. But house hunters pointed to just one reason: Home prices are still too high.
The economy has shrunk for the first time since 2001, mass retrenchments are on the cards, and monthly sales of new homes have plummeted so much that experts warn total sales this year could reach an 18-year low. Yet private home prices - at least according to the Urban Redevelopment Authority’s (URA) price index - have not dropped by much.
In the third quarter, the URA’s price data registered a fall of 2.3% from the second quarter, after rising about 4% in the first half of the year. This means prices in September were still higher than in January.
Anecdotally, analysts estimate that prices in the fourth quarter fell by up to 20% in some developments. But prices jumped so much in the recent upturn - 31% last year alone - that even if the URA’s index does log an unlikely 20% drop this quarter, prices at year-end would still be higher than at the start of last year, and far above the pre-boom levels in 2005.
Not all developers can cut prices for their projects without incurring big losses, especially those who bought plots at the peak of the boom last year. But developers who were canny enough to pick up land at the trough of the market have plenty of room to manoeuvre.
One example is CapitaLand’s Latitude condominium at Jalan Mutiara. The developer bought the site for about $500 per sq ft (psf) in 2005 and sold units up to last month at $2,400 to $2,500 psf.
But down the road, Mutiara View is going for under $1,200 psf, while across the street, the new boutique condo RV Suites has been sold for $1,300 to $1,400 psf. According to agents, CapitaLand has quietly lowered prices recently to $2,000 to $2,100 psf.
Hong Leong’s Aalto along Meyer Road is another example. The site was bought for about $410 psf in 2005, but units were sold for well over $2,000 psf last year and this year. No new units have been sold since May, according to URA data.
To be sure, there are valid reasons for developers not to cut prices.
For one thing, selling homes at lower prices could result in a fall in the valuations of their properties, which could in turn hurt their balance sheets and make it more difficult for them to raise funds in an already tight credit market. And some argue that slashing prices could also set off a price war.
But there are also compelling reasons to start lowering prices. Key among them is that the see-who-blinks-first game is clearly turning in favour of buyers. Prices are already falling, pushed down by smaller developers squeezed for cash and individual home sellers anxious to offload their units.
A boutique condominium in the Novena area reportedly gave significant discounts - from over $1,300 psf down to just under $1,000 psf - after the financial crisis hit hard in October. At soon-to-be-completed developments such as City Square Residences in Kitchener Road, prices have fallen from a high of over $1,000 psf last year to less than $800 psf for some units in recent months.
Developers have said for months that they will maintain prices and ride out the storm. But the situation is set to worsen sharply for sellers as the economy contracts sharply. Even developers who can hold out are likely to find their property valuations hit anyway as prices come down throughout the market.
Lowering prices will bring buyers back into the market. Many have been waiting on the sidelines since early last year, when prices starting shooting up beyond their means.
Evania, a 35-unit condo in Upper Paya Lebar, moved 15 units last month after dropping prices from nearly $900 psf in March to just above $600 psf.
More positive news like this is exactly what is needed to restore sentiment in the market.
As for the threat of price wars, there is little basis in the argument. Prices are going to fall in any case, with or without a price war. The suggestion here is not for steep price cuts, just ‘realistic’ prices that will tempt buyers back into the market.
City Developments took some flak from its rivals after it priced its mass market condo Livia in Pasir Ris at an attractive $650 psf on average. But the launch was a huge success - and it has not caused a downward spiral.
Industry players have suggested that the Government step in with demand-boosting measures such as waiving, discounting or deferring stamp duty; resurrecting a fine-tuned version of the deferred payment scheme; and tweaking CPF rules to allow buyers more financing leeway.
Developers themselves have already started absorbing stamp duty and interest for selected projects, and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances.
These measures might help make the buying environment more conducive, but nothing would speak more persuasively to potential buyers than a discount.
In a year when everything is going to go on sale, property developers should consider joining the crowd.
ST 31 Dec 2008
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Time to lower home prices
Property developers should consider this step to lure back buyersWHEN a property boom here ends, the first casualty is usually home supply.
Sure enough, the Government put a stop to new land sales early this month, as it did in the last two downturns, making it as good an indicator as any that a property slump had arrived.
Developers have also been cutting supply throughout the year, pushing back en bloc redevelopments and putting some launches on hold indefinitely.
Reducing supply inadequate to prevent property collapse
But though reducing supply is necessary to prevent the market from collapsing, it is clearly inadequate as a cure at this point. No land plots have changed hands for months, new launches have slowed to a trickle - and yet buyers are still not biting. Property ads have dried up and showflats are starting to resemble ghost towns.
Property hunters' one reason for not buying: Home prices are still too high
When sales came to a standstill this year, developers blamed the financial crisis and government policy actions, such as the removal of the deferred payment scheme. But house hunters pointed to just one reason: Home prices are still too high.
Private property sales 18-yr low but price drop still small
The economy has shrunk for the first time since 2001, mass retrenchments are on the cards, and monthly sales of new homes have plummeted so much that experts warn total sales this year could reach an 18-year low. Yet private home prices - at least according to the Urban Redevelopment Authority’s (URA) price index - have not dropped by much.
In the third quarter, the URA’s price data registered a fall of 2.3% from the second quarter, after rising about 4% in the first half of the year. This means prices in September were still higher than in January.
Anecdotally, analysts estimate that prices in the fourth quarter fell by up to 20% in some developments. But prices jumped so much in the recent upturn - 31% last year alone - that even if the URA’s index does log an unlikely 20% drop this quarter, prices at year-end would still be higher than at the start of last year, and far above the pre-boom levels in 2005.
Not all developers can cut prices for their projects without incurring big losses, especially those who bought plots at the peak of the boom last year. But developers who were canny enough to pick up land at the trough of the market have plenty of room to manoeuvre.
One example is CapitaLand’s Latitude condominium at Jalan Mutiara. The developer bought the site for about $500 per sq ft (psf) in 2005 and sold units up to last month at $2,400 to $2,500 psf.
But down the road, Mutiara View is going for under $1,200 psf, while across the street, the new boutique condo RV Suites has been sold for $1,300 to $1,400 psf. According to agents, CapitaLand has quietly lowered prices recently to $2,000 to $2,100 psf.
Hong Leong’s Aalto along Meyer Road is another example. The site was bought for about $410 psf in 2005, but units were sold for well over $2,000 psf last year and this year. No new units have been sold since May, according to URA data.
To be sure, there are valid reasons for developers not to cut prices.
For one thing, selling homes at lower prices could result in a fall in the valuations of their properties, which could in turn hurt their balance sheets and make it more difficult for them to raise funds in an already tight credit market. And some argue that slashing prices could also set off a price war.
see-who-blinks-first game is in favour of buyers
But there are also compelling reasons to start lowering prices. Key among them is that the see-who-blinks-first game is clearly turning in favour of buyers. Prices are already falling, pushed down by smaller developers squeezed for cash and individual home sellers anxious to offload their units.
A boutique condominium in the Novena area reportedly gave significant discounts - from over $1,300 psf down to just under $1,000 psf - after the financial crisis hit hard in October. At soon-to-be-completed developments such as City Square Residences in Kitchener Road, prices have fallen from a high of over $1,000 psf last year to less than $800 psf for some units in recent months.
Lowering prices will bring buyers back into the market
Developers have said for months that they will maintain prices and ride out the storm. But the situation is set to worsen sharply for sellers as the economy contracts sharply. Even developers who can hold out are likely to find their property valuations hit anyway as prices come down throughout the market.
Lowering prices will bring buyers back into the market. Many have been waiting on the sidelines since early last year, when prices starting shooting up beyond their means.
Evania, a 35-unit condo in Upper Paya Lebar, moved 15 units last month after dropping prices from nearly $900 psf in March to just above $600 psf.
More positive news like this is exactly what is needed to restore sentiment in the market.
‘Realistic’ prices that will tempt buyers back into the market
As for the threat of price wars, there is little basis in the argument. Prices are going to fall in any case, with or without a price war. The suggestion here is not for steep price cuts, just ‘realistic’ prices that will tempt buyers back into the market.
City Developments took some flak from its rivals after it priced its mass market condo Livia in Pasir Ris at an attractive $650 psf on average. But the launch was a huge success - and it has not caused a downward spiral.
Industry players have suggested that the Government step in with demand-boosting measures such as waiving, discounting or deferring stamp duty; resurrecting a fine-tuned version of the deferred payment scheme; and tweaking CPF rules to allow buyers more financing leeway.
Developers themselves have already started absorbing stamp duty and interest for selected projects, and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances.
These measures might help make the buying environment more conducive, but nothing would speak more persuasively to potential buyers than a discount.
In a year when everything is going to go on sale, property developers should consider joining the crowd.
ST 31 Dec 2008
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
Mr Lee said the economic outlook is highly uncertain. At each stage of this crisis, events have turned out worse than the experts predicted.
Governments everywhere have been implementing monetary and fiscal measures, rescuing troubled financial institutions and key corporations and pumping money into the economy. But no one is sure how the financial systems and economies will respond, or which policies will work.
'There is a loss of business and consumer confidence and, hence, one thing is certain: things cannot turn around overnight. Quite likely the global recession will be followed not by a quick rebound, but by several more years of slow growth,' Mr Lee said.
'We must therefore prepare for a difficult year ahead, and especially the first half of 2009. Our economy will probably contract further. More companies will be forced to downsize. So far we have not seen many job losses, but I expect more retrenchments in the next few months. We must be psychologically prepared,' he added.
In response to this economic crisis, Mr Lee said Singapore government's key focus is jobs - keeping people in jobs, helping workers who lose jobs find new ones, and retraining them with new skills.
Apart from lowering corporate taxes in 2008, two initiatives have also been implemented. One is the Skills Programme for Upgrading and Resilience (SPUR) which helps businesses pay for their staff training. More than 120 companies have come on board, which together will train more than 4,200 workers.
The second initiative is enhancing the government financing programmes for companies to ensure that basically sound firms, especially the smaller ones, can still obtain financing despite the tight credit climate, and so keep their operations going.
The government has also recently reduced interest rates and increased insurance premium subsidies under the schemes. These measures will benefit some 13,500 existing loans worth $550 million (US$381 million) and an estimated $3 billion in new loans.
Business Times - 31 Dec 2008
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
S'pore economy may contract further, expect more retrenchments
Singapore's economy will probably contract further and more retrenchments can be expected in the next few months as companies are forced to downsized, Singapore's Prime Minister Lee Hsien Loong said in his New Year message on Wednesday.Mr Lee said the economic outlook is highly uncertain. At each stage of this crisis, events have turned out worse than the experts predicted.
Governments everywhere have been implementing monetary and fiscal measures, rescuing troubled financial institutions and key corporations and pumping money into the economy. But no one is sure how the financial systems and economies will respond, or which policies will work.
'There is a loss of business and consumer confidence and, hence, one thing is certain: things cannot turn around overnight. Quite likely the global recession will be followed not by a quick rebound, but by several more years of slow growth,' Mr Lee said.
'We must therefore prepare for a difficult year ahead, and especially the first half of 2009. Our economy will probably contract further. More companies will be forced to downsize. So far we have not seen many job losses, but I expect more retrenchments in the next few months. We must be psychologically prepared,' he added.
In response to this economic crisis, Mr Lee said Singapore government's key focus is jobs - keeping people in jobs, helping workers who lose jobs find new ones, and retraining them with new skills.
Apart from lowering corporate taxes in 2008, two initiatives have also been implemented. One is the Skills Programme for Upgrading and Resilience (SPUR) which helps businesses pay for their staff training. More than 120 companies have come on board, which together will train more than 4,200 workers.
The second initiative is enhancing the government financing programmes for companies to ensure that basically sound firms, especially the smaller ones, can still obtain financing despite the tight credit climate, and so keep their operations going.
The government has also recently reduced interest rates and increased insurance premium subsidies under the schemes. These measures will benefit some 13,500 existing loans worth $550 million (US$381 million) and an estimated $3 billion in new loans.
Business Times - 31 Dec 2008
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
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