Showing posts with label 0.2 Property News Analysis Dec 2008. Show all posts
Showing posts with label 0.2 Property News Analysis Dec 2008. Show all posts
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
Tuesday, December 30, 2008
About this Blog
However, if we look at the absolute number of HDB upgraders of 582 in Q4 2008, the number has actually plunged to the lowest level this year and a far cry from the almost 3000 in Q2 2007 during the property peak. The sharp decline in the number of upgraders may reflect that despite the rising HDB resale prices, even HDB upgraders are cooling off from the private property market.
It maybe more accurate to interpret the data as a decline in the proportion of other types of buyers which include speculators, specuvestors, home-buyers etc; rather than an increase in the proportion of upgraders. In a nutshell, I'd see the data as being more reflective of the fleeing of speculators from the private property market, rather than an increased interest in private property among HDB upgraders.
May also want to read:
HDB Upgraders: Lessons learnt from the Property Boom-Bust of the 90s
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
HDB Resale Price Index 1990-2008: Graph & Chart
HDB upgraders to private properties increased by proportion but decreased by absolute number: Even HDB upgraders are cooling
BT reported on 30 Dec 2008 that according to DTZ's analysis, the percentage of HDB upgraders continued to grow. In 2008, a higher proportion of purchasers with HDB addresses was registered with 37 per cent of all buyers expected to be HDB upgraders in 2008 compared to 22 per cent in 2007. Based on available caveats in URA's REALIS, the number of buyers with HDB addresses in Q408 is 582. While this is a preliminary number, it represents 43 per cent of total caveats lodged so far in the fourth quarter. DTZ noted that this is higher than the 41 per cent in Q308, 36 per cent in Q208, and 28 per cent in Q108.
However, if we look at the absolute number of HDB upgraders of 582 in Q4 2008, the number has actually plunged to the lowest level this year and a far cry from the almost 3000 in Q2 2007 during the property peak. The sharp decline in the number of upgraders may reflect that despite the rising HDB resale prices, even HDB upgraders are cooling off from the private property market.
It maybe more accurate to interpret the data as a decline in the proportion of other types of buyers which include speculators, specuvestors, home-buyers etc; rather than an increase in the proportion of upgraders. In a nutshell, I'd see the data as being more reflective of the fleeing of speculators from the private property market, rather than an increased interest in private property among HDB upgraders.
May also want to read:
HDB Upgraders: Lessons learnt from the Property Boom-Bust of the 90s
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
This follows two consecutive quarters of declines of around 4.5 per cent each.
The prime districts include District 9, 10 and 11.
Overall average prime prices fell 21.6 per cent year-on-year (yoy) to $1,160 per square foot (psf), below the level of $1,200 psf registered in Q207.
Freehold non-landed homes outside the prime districts fell in Q408 but at a lower rate of 9.3 per cent qoq or 10.5 per cent yoy.
Landed housing prices also fell 5.7 per cent qoq, or 2.9 per cent yoy, islandwide in Q408.
The fall in prices follows dismal developer sales in October and November with only 112 and 192 units sold in the primary market respectively, compared to the monthly average of 444 units sold in the first nine months of the year.
DTZ said that based on caveats lodged, preliminary data from URA's REALIS showed that the number of transactions in the year is only about 35 per cent of last year's 38,100 units.
DTZ is also forecasting a further decline of 15-20 per cent for this segment of the market in 2009.
DTZ said that the downturn in the economy will deter buyers from committing to property purchases and sales are expected to continue to remain low in 2009.
Lower rental returns will not help either.
DTZ said that average monthly rents of prime non-landed homes decreased in Q408 by 9.4 per cent qoq or 9.2 per cent yoy to $4.36 psf.
Outside the prime districts, rents held up better with an increase of 2 per cent yoy, despite a fall of 1.2 per cent qoq.
The extent of price corrections is still uncertain but Nomura has already adjusted its forecasts. In March, it forecast average prices in the luxury sector to fall by 32.3 per cent from the 2007 peak over 2008-2010 - 16.9 per cent in 2008, 10.3 per cent in 2009 and 9.3 per cent in 2010.
It now expects luxury prices to fall 43.8 per cent from the peak, and mass residential prices to fall 32.1 per cent as yields move out by an additional 25-50 basis-points.
OCBC analysts also believe that high-end property prices could decline by 15-20 per cent in 2009 due to weak sentiment, unsold inventories and potential risks of buyers' default and fire-sales.
OCBC expects mass market property prices to remain resilient, supported by the stability in HDB prices. For the mid-market properties, it expects prices to fall further in 2009, with a projected decline of 5-10 per cent.
Extracted from BT 30 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
Private Property Price in 2009: Analysts forecast further decline of 15%-20%
Based on its preliminary analysis of official data, DTZ said that prices of non-landed freehold private homes in the prime districts fell by 14 per cent quarter-on-quarter (qoq) in the fourth quarter of 2008.This follows two consecutive quarters of declines of around 4.5 per cent each.
The prime districts include District 9, 10 and 11.
Prime property prices fell 21.6% year-on-year
Overall average prime prices fell 21.6 per cent year-on-year (yoy) to $1,160 per square foot (psf), below the level of $1,200 psf registered in Q207.
Freehold non-landed homes outside the prime districts fell in Q408 but at a lower rate of 9.3 per cent qoq or 10.5 per cent yoy.
Landed housing prices also fell 5.7 per cent qoq, or 2.9 per cent yoy, islandwide in Q408.
The fall in prices follows dismal developer sales in October and November with only 112 and 192 units sold in the primary market respectively, compared to the monthly average of 444 units sold in the first nine months of the year.
DTZ said that based on caveats lodged, preliminary data from URA's REALIS showed that the number of transactions in the year is only about 35 per cent of last year's 38,100 units.
DTZ forecast property price to further decline by 15%-20% in 2009
DTZ is also forecasting a further decline of 15-20 per cent for this segment of the market in 2009.
DTZ said that the downturn in the economy will deter buyers from committing to property purchases and sales are expected to continue to remain low in 2009.
Lower rental returns will not help either.
DTZ said that average monthly rents of prime non-landed homes decreased in Q408 by 9.4 per cent qoq or 9.2 per cent yoy to $4.36 psf.
Outside the prime districts, rents held up better with an increase of 2 per cent yoy, despite a fall of 1.2 per cent qoq.
Nomura forecast property price fall of 43.8% in high end market and 32.1% in mass market
The extent of price corrections is still uncertain but Nomura has already adjusted its forecasts. In March, it forecast average prices in the luxury sector to fall by 32.3 per cent from the 2007 peak over 2008-2010 - 16.9 per cent in 2008, 10.3 per cent in 2009 and 9.3 per cent in 2010.
It now expects luxury prices to fall 43.8 per cent from the peak, and mass residential prices to fall 32.1 per cent as yields move out by an additional 25-50 basis-points.
OCBC forecast high-end propety price to fall by 15-20% and mass market by 5-10%
OCBC analysts also believe that high-end property prices could decline by 15-20 per cent in 2009 due to weak sentiment, unsold inventories and potential risks of buyers' default and fire-sales.
OCBC expects mass market property prices to remain resilient, supported by the stability in HDB prices. For the mid-market properties, it expects prices to fall further in 2009, with a projected decline of 5-10 per cent.
Extracted from BT 30 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
This, compared to the monthly average of 444 units sold in the first nine months of the year. The October sales volume is the lowest since the release of official monthly sales data by the Urban Redevelopment Authority (URA) in June 2007.
For the full year, DTZ estimated that the number of home sales in the primary and secondary markets will only make up about 35 per cent of last year's sales, which saw some 38,100 units sold. The figure is based on caveats lodged with the URA so far.
At the same time, the fall in private home prices have started to gather pace in the fourth quarter, with prime non-landed properties the hardest hit. Prices of non-landed freehold private homes in the prime districts fell by 14 per cent quarter-on-quarter in the three months ended December, according to DTZ Research. Overall, average private home prices have fallen 21.6 per cent year-on-year to S$1,160 per square feet, below the level of S$1,200 per sq ft in the second quarter of 2007.
Meanwhile, average monthly rents of prime non-landed homes have fallen 9.2 per cent to S$4.36 per square feet.
DTZ expects home sales to remain low next year as the recession takes its toll and homebuyers are concerned over job security.
Posted by anonymous 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
Private home sale, price, rent falls SHARPLY Q4 2008
According to a report released Monday by property consultant DTZ, only 112 private homes were sold in the primary market in October, and 192 units sold in November.This, compared to the monthly average of 444 units sold in the first nine months of the year. The October sales volume is the lowest since the release of official monthly sales data by the Urban Redevelopment Authority (URA) in June 2007.
Private property sales in 2008 only 35% of 2007's
For the full year, DTZ estimated that the number of home sales in the primary and secondary markets will only make up about 35 per cent of last year's sales, which saw some 38,100 units sold. The figure is based on caveats lodged with the URA so far.
Prime non-landed properties hardest hit
At the same time, the fall in private home prices have started to gather pace in the fourth quarter, with prime non-landed properties the hardest hit. Prices of non-landed freehold private homes in the prime districts fell by 14 per cent quarter-on-quarter in the three months ended December, according to DTZ Research. Overall, average private home prices have fallen 21.6 per cent year-on-year to S$1,160 per square feet, below the level of S$1,200 per sq ft in the second quarter of 2007.
Rents of prime non-landed homes have fallen 9.2%
Meanwhile, average monthly rents of prime non-landed homes have fallen 9.2 per cent to S$4.36 per square feet.
DTZ expects home sales to remain low next year as the recession takes its toll and homebuyers are concerned over job security.
Posted by anonymous 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
Wednesday, December 24, 2008
About this Blog
unfounded wrote:
Even all the uncompleted units are bought under DPS, there is no effect because these speculators or buyers bought under DPS in 2005/2006 are still sitting pretty with between 50% to 250% capital appreciation . Most of these speculators are rich and dont underestimate them, they have more wealth than you think. When they go to the bank, the valuation is still much higher than the purchase price and most of them get financing easily unless they got burnt badly in the stock or currency markets. The full impact of worldwide recession do not seem to hit Singapore too badly. With bank loans, what is the problem ? It is at low interests. Do you think property prices can drop by more than 50%? Impossible in politically safe Singapore, a Global city with IRs, Sport Hubs, YOG, F1,growing foreigners and rich migrants and so much to offer to investors. The Singapore government with billions in reserves will never let this happen and they will intervene strongly to prop up the market as they are also biggest property owners. Property market in Singapore is safe and unique, even for speculators of 2005/2006.
bull wrote:
come next month budget, govt is going to approve S$5B or more for infrastructure projects, the more the better, can create jobs, drive our GDP, eventually these development will make your property appreciate their value much more.
Like Jurong lake, if govt can complete it within 5 yrs from now on, that will be nice when it completes, Punggol marina center, Buona Vista R&D hub, MRT line, expressway.....
Guest wrote:
Buyers under DPS has to pay more in total, so those with cash will not opt for this. We can conclude many of these DPS buyers are shallow-pocket flippers. What makes it worse is the unexpected credit crunch. Besides, flippers are normally people with a risky-income profile like bankers, remisers, property agents ... who make a lot of money in the 2007-boom and became too optimistic about the property market. These people will be faced with sudden loss of income and will find it very hard to get a bank loan.
bear wrote:
DPS buyers cannot just walk away from the deals and think their maximum loss is the 10-20% downpayment. Developers can resell at any lower prices and the defaulting buyers will have to pay the difference plus all legal fees. So these shallow-pocket flippers will have to sell their units at whatever prices the market will pay. I see a property price crash coming from middle 2009.
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
Will DPS Property Buyers default come 2009-2010? Property buyers' discussion
The following are some forumers' views on the recent news reports on defaulting DPS property buyers ( "Size of the DPS behemoth" and "D-Day for Home-Buyers") extracted from the Singapore Property Forum:unfounded wrote:
Even all the uncompleted units are bought under DPS, there is no effect because these speculators or buyers bought under DPS in 2005/2006 are still sitting pretty with between 50% to 250% capital appreciation . Most of these speculators are rich and dont underestimate them, they have more wealth than you think. When they go to the bank, the valuation is still much higher than the purchase price and most of them get financing easily unless they got burnt badly in the stock or currency markets. The full impact of worldwide recession do not seem to hit Singapore too badly. With bank loans, what is the problem ? It is at low interests. Do you think property prices can drop by more than 50%? Impossible in politically safe Singapore, a Global city with IRs, Sport Hubs, YOG, F1,growing foreigners and rich migrants and so much to offer to investors. The Singapore government with billions in reserves will never let this happen and they will intervene strongly to prop up the market as they are also biggest property owners. Property market in Singapore is safe and unique, even for speculators of 2005/2006.
bull wrote:
come next month budget, govt is going to approve S$5B or more for infrastructure projects, the more the better, can create jobs, drive our GDP, eventually these development will make your property appreciate their value much more.
Like Jurong lake, if govt can complete it within 5 yrs from now on, that will be nice when it completes, Punggol marina center, Buona Vista R&D hub, MRT line, expressway.....
Guest wrote:
Buyers under DPS has to pay more in total, so those with cash will not opt for this. We can conclude many of these DPS buyers are shallow-pocket flippers. What makes it worse is the unexpected credit crunch. Besides, flippers are normally people with a risky-income profile like bankers, remisers, property agents ... who make a lot of money in the 2007-boom and became too optimistic about the property market. These people will be faced with sudden loss of income and will find it very hard to get a bank loan.
bear wrote:
DPS buyers cannot just walk away from the deals and think their maximum loss is the 10-20% downpayment. Developers can resell at any lower prices and the defaulting buyers will have to pay the difference plus all legal fees. So these shallow-pocket flippers will have to sell their units at whatever prices the market will pay. I see a property price crash coming from middle 2009.
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
Among the additional information we would have liked are:
Break down between local buyers and foreign buyers is important on the basis that the former are more likely to honor the transactions unless they really can’t afford to. Developers are understandaby reluctant to provide such information on a
project-by-project basis, eg CapitaLand’s Orchard Residences (launched in Apr ‘07), SC Global’s The Marque (Jun ‘07), City Developments’ Cliveden (Jun ‘07); and Keppel
Land’s Marina Bay Residences (Dec ‘06), which would have a higher percentage of foreign buyers.
How many of the 10,450 were the original buyers and how many from sub-sales is not known. URA noted that the number of units still under DPS may change over time as developers may not extend the scheme to sub-purchasers when the original purchasers sub-sell their units.
The percentage of buyers who have secured financing reflects the proportion of buyers who bought for owner occupation since they would likely have arranged for financing at the time of purchase, even if they have opted for DPS.
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
Important information on Deferred Payment Scheme not released by URA
Last week, URA released information on private housing units sold under the Deferred Payment Scheme. The more useful data, however, have been withheld as requested by developers, which in turn suggest they are not positive.Among the additional information we would have liked are:
Break down between local buyers and foreign buyers
,Break down between local buyers and foreign buyers is important on the basis that the former are more likely to honor the transactions unless they really can’t afford to. Developers are understandaby reluctant to provide such information on a
project-by-project basis, eg CapitaLand’s Orchard Residences (launched in Apr ‘07), SC Global’s The Marque (Jun ‘07), City Developments’ Cliveden (Jun ‘07); and Keppel
Land’s Marina Bay Residences (Dec ‘06), which would have a higher percentage of foreign buyers.
How many original buyers and how many from sub-sales
How many of the 10,450 were the original buyers and how many from sub-sales is not known. URA noted that the number of units still under DPS may change over time as developers may not extend the scheme to sub-purchasers when the original purchasers sub-sell their units.
Percentage of DPS buyers who have secured financing
The percentage of buyers who have secured financing reflects the proportion of buyers who bought for owner occupation since they would likely have arranged for financing at the time of purchase, even if they have opted for DPS.
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, December 22, 2008
About this Blog
The increasing number of en bloc sites put back on the rental market is expected to further depress already weakening rentals.
The latest of these is Lucky Tower at Grange Road which was bought by City Developments Ltd (CDL) in May 2006. A CDL spokesman said that the entire development of 91 units has been leased to a master tenant that intends to sub-let the units.
According to data complied by Savills Singapore, Lucky Tower was expected to be redeveloped into a 178-unit condominium. However, with redevelopment pushed back, these units are not expected to come on to the market anytime soon.
Another development, the 192-unit The Grangeford at Leonie Hill, acquired by OUE in 2007, has also been put back on the rental market.
OUE is controlled by the Lippo Group and Malaysian tycoon Ananda Krishnan. Lippo Realty executive director Thio Gim Hock said that approximately 70 per cent of the units have already been leased, mainly to expatriates.
On why it decided to defer redevelopment, Mr Thio said: 'The market does not look good for this year or the next.'
It is understood that asking rents for The Grangeford start at about $3,500 for 1,110 square foot two-bedroom units and about $4,500 for a 1,700 sq ft three-bedroom unit.
The Pontiac Land Group has also started to lease out Pin Tjoe Court, which it acquired in September 2006. Senior vice-president (residential leasing) William Teh said that it expects to redevelop the site next year. 'Till then, we are offering very short-term leases, and this is not representative of typical rental in the market,' he added.
Frasers Centrepoint said that Flamingo Valley, which it acquired in early 2007, has been put on the rental market with close to 60 per cent of the 185 units leased out.
Other en bloc developments back on the rental market include Furama Towers, Fairways Condominium, Sophia Court, and Lincoln Lodge.
Referring to this 'hidden leasing supply', Japanese investment house Nomura said: 'The move by developers to return en bloc units back to the leasing market to cover to a degree of the holding costs is not unanticipated.'
Regardless of 'hidden leasing supply', rentals are already expected to fall. Still, Knight Frank director (research and consultancy) Nicholas Mak believes that the 'hidden supply' of leasing units will not make much of a dent on the rental market. For starters, he notes, many of these en bloc developments have already reached a state of disrepair.
Pointing out that the 108-unit Fairways is about 10 per cent leased, he says that many of the units have been 'stripped bare'.
He also noted that these units have short leases and tenants may be given only one-month's notice to vacate
In the case of Grangeford, assuming a gross rent of $3.40 psf for the 396,483 sq ft apartment block, Nomura estimates that it could secure net income of $14.6 million, equating to a 2.3 per cent yield over its $625 million acquisition price, 'providing some relief to covering the site's holding costs'.
Continue with Deferred Enbloc Redevelopment cuts supply of 1000 new units
Extract:BT 22 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
Enbloc Properties put back on rental market: Expected to further depress rental market
At least 1,000 projected new apartment units can be expected to be withdrawn from immediate supply in Singapore's property market, as properties that were sold en bloc in recent years are put back on the market for rental.Enbloc sites rental units expected to further depress rental market
The increasing number of en bloc sites put back on the rental market is expected to further depress already weakening rentals.
CDL: Lucky Tower @ Grange Road leased to master tenant
The latest of these is Lucky Tower at Grange Road which was bought by City Developments Ltd (CDL) in May 2006. A CDL spokesman said that the entire development of 91 units has been leased to a master tenant that intends to sub-let the units.
According to data complied by Savills Singapore, Lucky Tower was expected to be redeveloped into a 178-unit condominium. However, with redevelopment pushed back, these units are not expected to come on to the market anytime soon.
192-unit The Grangeford at Leonie Hill on the rental market
Another development, the 192-unit The Grangeford at Leonie Hill, acquired by OUE in 2007, has also been put back on the rental market.
OUE is controlled by the Lippo Group and Malaysian tycoon Ananda Krishnan. Lippo Realty executive director Thio Gim Hock said that approximately 70 per cent of the units have already been leased, mainly to expatriates.
On why it decided to defer redevelopment, Mr Thio said: 'The market does not look good for this year or the next.'
It is understood that asking rents for The Grangeford start at about $3,500 for 1,110 square foot two-bedroom units and about $4,500 for a 1,700 sq ft three-bedroom unit.
Pontiac Land Group started to lease out Pin Tjoe Court
The Pontiac Land Group has also started to lease out Pin Tjoe Court, which it acquired in September 2006. Senior vice-president (residential leasing) William Teh said that it expects to redevelop the site next year. 'Till then, we are offering very short-term leases, and this is not representative of typical rental in the market,' he added.
Frasers Centrepoint: Flamingo Valley 60% leased out
Frasers Centrepoint said that Flamingo Valley, which it acquired in early 2007, has been put on the rental market with close to 60 per cent of the 185 units leased out.
Other en bloc developments back on the rental market include Furama Towers, Fairways Condominium, Sophia Court, and Lincoln Lodge.
Rental yield helps cover developers' holding costs
Referring to this 'hidden leasing supply', Japanese investment house Nomura said: 'The move by developers to return en bloc units back to the leasing market to cover to a degree of the holding costs is not unanticipated.'
Regardless of 'hidden leasing supply', rentals are already expected to fall. Still, Knight Frank director (research and consultancy) Nicholas Mak believes that the 'hidden supply' of leasing units will not make much of a dent on the rental market. For starters, he notes, many of these en bloc developments have already reached a state of disrepair.
Pointing out that the 108-unit Fairways is about 10 per cent leased, he says that many of the units have been 'stripped bare'.
He also noted that these units have short leases and tenants may be given only one-month's notice to vacate
Rental Yield of 2.3%
In the case of Grangeford, assuming a gross rent of $3.40 psf for the 396,483 sq ft apartment block, Nomura estimates that it could secure net income of $14.6 million, equating to a 2.3 per cent yield over its $625 million acquisition price, 'providing some relief to covering the site's holding costs'.
Continue with Deferred Enbloc Redevelopment cuts supply of 1000 new units
Extract:BT 22 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
Another consequence of deferred en bloc redevelopment is the impact this has on future supply.
Savills Singapore estimates that based on the en bloc deals between 2005 and 2007, over 23,000 new units could be added to the market.
But, as Nomura notes, supply has been increasingly pushed to 2012. As at the third quarter of this year, it found that some 16,762 units are scheduled for completion in 2012, versus the previous quarter's estimate of 14,179 units.
Based on an analysis of official data since Q499, it also found that actual completions lagged behind forecast completions.
The Urban Redevelopment Authority (URA) has also clarified that while developments are deemed 'under construction' in its database, this does not necessarily mean construction has begun.
A spokesman for URA said that it considers a project to be 'under construction' once the Building and Construction Authority records indicate that a project has been issued a permit to commence structural works.
As at Q308, there are 10,007 units under construction. URA said: 'As developers do not have to inform the government of actual ground-breaking after obtaining the permit to commence structural works, URA does not have information on the number of units, expected to be completed in 2009, which have actually broken ground.'
However, it added that it understands that actual construction for a project typically begins within 1-3 months after the developer obtains the permit to commence structural works for the project.
The number of developments that could be deferred will remain unknown. CB Richard Ellis executive director Jeremy Lake pointed out: 'Even if the property has been demolished, a meaningful number of projects will be delayed as construction costs are expected to fall over the next 18 months.'
Extract:BT 22 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
Deferred Enbloc redevelopment cuts supply of 1,000 new apartments
Continue from Enbloc Properties put back on Rental Market: Expected to further depress rental marketAnother consequence of deferred en bloc redevelopment is the impact this has on future supply.
Savills Singapore estimates that based on the en bloc deals between 2005 and 2007, over 23,000 new units could be added to the market.
But, as Nomura notes, supply has been increasingly pushed to 2012. As at the third quarter of this year, it found that some 16,762 units are scheduled for completion in 2012, versus the previous quarter's estimate of 14,179 units.
Based on an analysis of official data since Q499, it also found that actual completions lagged behind forecast completions.
The Urban Redevelopment Authority (URA) has also clarified that while developments are deemed 'under construction' in its database, this does not necessarily mean construction has begun.
A spokesman for URA said that it considers a project to be 'under construction' once the Building and Construction Authority records indicate that a project has been issued a permit to commence structural works.
As at Q308, there are 10,007 units under construction. URA said: 'As developers do not have to inform the government of actual ground-breaking after obtaining the permit to commence structural works, URA does not have information on the number of units, expected to be completed in 2009, which have actually broken ground.'
However, it added that it understands that actual construction for a project typically begins within 1-3 months after the developer obtains the permit to commence structural works for the project.
The number of developments that could be deferred will remain unknown. CB Richard Ellis executive director Jeremy Lake pointed out: 'Even if the property has been demolished, a meaningful number of projects will be delayed as construction costs are expected to fall over the next 18 months.'
Extract:BT 22 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
Saturday, December 20, 2008
About this Blog
SOME 10,450 sold and uncompleted private homes are now under the deferred payment scheme (DPS), according to official data released yesterday.
Of the amount, close to half - 4,560 units - will be completed in 2009, while another 2,540 homes will be completed in 2010, the Urban Redevelopment Authority (URA) said. Under the DPS, which was introduced by the government in October 1997 and withdrawn in October 2007, the bulk of the purchase price of a property is due only after a project obtains its temporary occupation permit (TOP).
The data was welcomed by both analysts and the Real Estate Developers' Association of Singapore (Redas). Over the past several months, many market watchers and analysts have been estimating how big an impact the DPS will have on developers' cashflow and earnings if buyers default on their homes as TOP approaches.
'I think it provides a clearer picture as to the extent of the problem,' said Citigroup's head of Singapore equity research, Chua Hak Bin. 'And it is good that the government acted to stop the system when it did. If not, things would have got a lot worse.'
Said Redas: 'URA data, together with data compiled by Redas, helps to allay concerns that speculators may repudiate their DPS purchases at below-market prices as the completion date nears.' In its statement, Redas highlighted 10 projects - including City Developments' The Sail and Keppel Land's Park Infinia - where the DPS was offered but full payment was still made to the developers once TOP was obtained.
For now, the real area of concern is thought to be the 2,540 units under the DPS that will obtain TOP in 2010.
Redas also said that while units may be affected by market sentiments, sales contracts cannot be repudiated easily.
URA's data proves that the DPS scheme was 'very popular', Citigroup's Dr Chua said. To arrive at its numbers, URA did a survey among property developers of uncompleted DPS-approved projects. In total, developers of 605 projects, comprising 72,384 units, were granted approval to offer the DPS. Of this amount, there were 18,208 sold but uncompleted units as at end-November this year. And of this figure, 10,450 (57 per cent) were still under the DPS.
The fact that the bulk of DPS units will be completed in 2009 is cause for some concern, analysts said. '2009 is going to be a tough year for the economy, and there are 4,650 units under the DPS that will be completed,' said Ku Swee Yong, director of marketing and business development at Savills Singapore.
But assuming a three-year construction period, a large proportion of the units that will obtain TOP in 2009 were probably launched and sold in 2006 and early 2007, at prices that are relatively lower than today's level or the expected level in 2009. So even if the property market continues to weaken in 2009, the owners of these 4,560 units could still lease out the homes or sell them, analysts said. However, if developers had offered the DPS to many sub-purchasers when the original purchasers sub-sell the units, then defaults could be expected.
But for now, the real area of concern is thought to be the 2,540 units under the DPS that will obtain TOP in 2010. Of this number, 1,270 of the units are located in the core central region (CCR), which includes Sentosa and Marina Bay.
'Generally, I'm more concerned over the units which will receive TOP in 2010-2011, which could have been purchased in 2007 at the peak of the property market,' said DMG & Partners Securities analyst Brandon Lee.
And while developers have the legal right to pursue buyers who walk away from their deals, it could be harder to do this when it comes to foreigners, said Knight Frank managing director Tan Tiong Cheng.
Normally, about 75-90 per cent of uncompleted private residential units will be bought by Singaporeans, said DMG's Mr Lee. But in 2007, the proportion fell to 63-68 per cent, with the remaining purchases made by PRs, foreigners and companies. 'We see this segment as the most likely to return their units,' he said. His back-of-the-envelope figure puts the amount expected to be returned as possibly somewhere between 20-30 per cent.
URA said that it provided the data to enable the public to make a better assessment of the private housing market. 'This information was provided by developers in confidence and with the understanding that data for individual projects would not be released to the public. Hence URA is only releasing aggregated data and not data for individual projects,' the government agency said.
'Conducting a survey of developers of all uncompleted DPS-approved projects requires a lot of time and resources from the developers as well as the government. Given that the number of uncompleted units sold under DPS is likely to decline as projects are completed over time, we will monitor the situation and consider whether there is a need to conduct further surveys in future,' URA said in response to a query from BT.
BT 20 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
Size of the DPS behemoth
10,450 sold & uncompleted private homes under the DPS now; analysts worried about those getting TOP in 2010-11SOME 10,450 sold and uncompleted private homes are now under the deferred payment scheme (DPS), according to official data released yesterday.
Of the amount, close to half - 4,560 units - will be completed in 2009, while another 2,540 homes will be completed in 2010, the Urban Redevelopment Authority (URA) said. Under the DPS, which was introduced by the government in October 1997 and withdrawn in October 2007, the bulk of the purchase price of a property is due only after a project obtains its temporary occupation permit (TOP).
The data was welcomed by both analysts and the Real Estate Developers' Association of Singapore (Redas). Over the past several months, many market watchers and analysts have been estimating how big an impact the DPS will have on developers' cashflow and earnings if buyers default on their homes as TOP approaches.
'I think it provides a clearer picture as to the extent of the problem,' said Citigroup's head of Singapore equity research, Chua Hak Bin. 'And it is good that the government acted to stop the system when it did. If not, things would have got a lot worse.'
Said Redas: 'URA data, together with data compiled by Redas, helps to allay concerns that speculators may repudiate their DPS purchases at below-market prices as the completion date nears.' In its statement, Redas highlighted 10 projects - including City Developments' The Sail and Keppel Land's Park Infinia - where the DPS was offered but full payment was still made to the developers once TOP was obtained.
For now, the real area of concern is thought to be the 2,540 units under the DPS that will obtain TOP in 2010.
Redas also said that while units may be affected by market sentiments, sales contracts cannot be repudiated easily.
URA's data proves that the DPS scheme was 'very popular', Citigroup's Dr Chua said. To arrive at its numbers, URA did a survey among property developers of uncompleted DPS-approved projects. In total, developers of 605 projects, comprising 72,384 units, were granted approval to offer the DPS. Of this amount, there were 18,208 sold but uncompleted units as at end-November this year. And of this figure, 10,450 (57 per cent) were still under the DPS.
The fact that the bulk of DPS units will be completed in 2009 is cause for some concern, analysts said. '2009 is going to be a tough year for the economy, and there are 4,650 units under the DPS that will be completed,' said Ku Swee Yong, director of marketing and business development at Savills Singapore.
But assuming a three-year construction period, a large proportion of the units that will obtain TOP in 2009 were probably launched and sold in 2006 and early 2007, at prices that are relatively lower than today's level or the expected level in 2009. So even if the property market continues to weaken in 2009, the owners of these 4,560 units could still lease out the homes or sell them, analysts said. However, if developers had offered the DPS to many sub-purchasers when the original purchasers sub-sell the units, then defaults could be expected.
But for now, the real area of concern is thought to be the 2,540 units under the DPS that will obtain TOP in 2010. Of this number, 1,270 of the units are located in the core central region (CCR), which includes Sentosa and Marina Bay.
'Generally, I'm more concerned over the units which will receive TOP in 2010-2011, which could have been purchased in 2007 at the peak of the property market,' said DMG & Partners Securities analyst Brandon Lee.
And while developers have the legal right to pursue buyers who walk away from their deals, it could be harder to do this when it comes to foreigners, said Knight Frank managing director Tan Tiong Cheng.
Normally, about 75-90 per cent of uncompleted private residential units will be bought by Singaporeans, said DMG's Mr Lee. But in 2007, the proportion fell to 63-68 per cent, with the remaining purchases made by PRs, foreigners and companies. 'We see this segment as the most likely to return their units,' he said. His back-of-the-envelope figure puts the amount expected to be returned as possibly somewhere between 20-30 per cent.
URA said that it provided the data to enable the public to make a better assessment of the private housing market. 'This information was provided by developers in confidence and with the understanding that data for individual projects would not be released to the public. Hence URA is only releasing aggregated data and not data for individual projects,' the government agency said.
'Conducting a survey of developers of all uncompleted DPS-approved projects requires a lot of time and resources from the developers as well as the government. Given that the number of uncompleted units sold under DPS is likely to decline as projects are completed over time, we will monitor the situation and consider whether there is a need to conduct further surveys in future,' URA said in response to a query from BT.
BT 20 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
JUST how vulnerable is Singapore’s :souring economy to a wave of defaults from private home buyers who had made use of the popular Deferred Payment Scheme (DPS)?
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:It’s a question that continues to split analysts, even as the Urban Redevelopment Authority (URA): on Friday released, for the first time, data on private homes sold under the DPS, a decade-old plan scrapped in October last year.
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To “provide transparency”, the agency revealed that 10,450 uncompleted private homes had been sold under the scheme as at end-November.
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As the DPS tends to be used by speculators, the data breakdown reflects the potential number of homes that could be returned to developers, should buyers fail to secure financing by the time a project is completed and receives the Temporary Occupation Permit (TOP).
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For many, D-day approaches: Most of the units — 4,560 — will be ready next year, followed by another 2,540 units in 2010.
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With these two years likely to be weighed down by a global economic slump, buyers with shallow pockets will have difficulty coughing up the bulk of the price tag by the TOP date, especially as banks have become tight-fisted. If the purchase falls through, units will return to the market, possibly depressing prices.
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To Chesteron Suntec International research director Colin Tan, the statistics paint a grim picture.
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“If we assume all the people buying under DPS meant to flip, the 4,560 units represent one year of supply for a bad year. It’s bad,” Mr Tan told Today.
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Only 4,000 to 5,000 new private homes are expected to be sold this year, he said, way below last year’s 14,800.
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Under the DPS, the downpayment is :only 10 to 20 per cent of the unit’s price and the customer makes no other payments during the construction period — typically two to three years — until completion. The arrangement appeals to speculators who, during boom time, made just a small payment upfront and managed to “flip” the unit for a quick buck before the TOP date.
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:Some feel the DPS may create a local version of a sub-prime meltdown. Will the market soon be flooded with desperados cancelling purchases or defaulting? Developers are putting up a brave front.
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:“We note that DPS cases will peak in 2009. These units would have been purchased in 2005/6 before property prices peaked in late 2007. As the purchase prices of these units are likely to be below current market price, we are confident that such property purchasers will want to proceed with completion of ====:their sale, upon their unit’s grant of the TOP,” the Real Estate Developers’ :Association of Singapore (Redas) said in a statement.
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:Redas also stressed that buyers have no right to cancel sale-and-purchase agreements; only the developer does. So if the buyer fails to adhere to the contract, the developer could not only keep the downpayment but also demand claims and resell the property.
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:Redas did not say if their members were witnessing an increase in customers asking to repudiate contracts.
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:According to Knight Frank director of consultancy and research Nicholas Mak, people who bought units outside the Core Central Region – plum areas including Orchard and Sentosa – are “less at risk of default because a relatively higher proportion of these homes were bought for owners’ occupation”.
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:Two-thirds of the unfinished homes bought on DPS are outside the Core Central Region.
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:In the first place, said Savills Singapore director of marketing and business development Ku Swee Yong, DPS customers do include genuine home buyers, not just speculators.
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:Mr Mak said even if the property market weakened further next year, homebuyers collecting their keys “could either lease out the homes at relatively good returns or sell the homes at their breakeven level or with a profit”.
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:As for those taking delivery in 2010, they are unlikely to be pressured to sell at distress prices as “we expect the property market to stabilise in 2010 and may show some signs of recovery”:.
CNA 20 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
D-Day for homebuyers
7,100 units ready in next two years, buyers may face difficulties: AnalystsJUST how vulnerable is Singapore’s :souring economy to a wave of defaults from private home buyers who had made use of the popular Deferred Payment Scheme (DPS)?
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:It’s a question that continues to split analysts, even as the Urban Redevelopment Authority (URA): on Friday released, for the first time, data on private homes sold under the DPS, a decade-old plan scrapped in October last year.
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To “provide transparency”, the agency revealed that 10,450 uncompleted private homes had been sold under the scheme as at end-November.
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As the DPS tends to be used by speculators, the data breakdown reflects the potential number of homes that could be returned to developers, should buyers fail to secure financing by the time a project is completed and receives the Temporary Occupation Permit (TOP).
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For many, D-day approaches: Most of the units — 4,560 — will be ready next year, followed by another 2,540 units in 2010.
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With these two years likely to be weighed down by a global economic slump, buyers with shallow pockets will have difficulty coughing up the bulk of the price tag by the TOP date, especially as banks have become tight-fisted. If the purchase falls through, units will return to the market, possibly depressing prices.
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To Chesteron Suntec International research director Colin Tan, the statistics paint a grim picture.
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“If we assume all the people buying under DPS meant to flip, the 4,560 units represent one year of supply for a bad year. It’s bad,” Mr Tan told Today.
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Only 4,000 to 5,000 new private homes are expected to be sold this year, he said, way below last year’s 14,800.
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Under the DPS, the downpayment is :only 10 to 20 per cent of the unit’s price and the customer makes no other payments during the construction period — typically two to three years — until completion. The arrangement appeals to speculators who, during boom time, made just a small payment upfront and managed to “flip” the unit for a quick buck before the TOP date.
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:Some feel the DPS may create a local version of a sub-prime meltdown. Will the market soon be flooded with desperados cancelling purchases or defaulting? Developers are putting up a brave front.
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:“We note that DPS cases will peak in 2009. These units would have been purchased in 2005/6 before property prices peaked in late 2007. As the purchase prices of these units are likely to be below current market price, we are confident that such property purchasers will want to proceed with completion of ====:their sale, upon their unit’s grant of the TOP,” the Real Estate Developers’ :Association of Singapore (Redas) said in a statement.
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:Redas also stressed that buyers have no right to cancel sale-and-purchase agreements; only the developer does. So if the buyer fails to adhere to the contract, the developer could not only keep the downpayment but also demand claims and resell the property.
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:Redas did not say if their members were witnessing an increase in customers asking to repudiate contracts.
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:According to Knight Frank director of consultancy and research Nicholas Mak, people who bought units outside the Core Central Region – plum areas including Orchard and Sentosa – are “less at risk of default because a relatively higher proportion of these homes were bought for owners’ occupation”.
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:Two-thirds of the unfinished homes bought on DPS are outside the Core Central Region.
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:In the first place, said Savills Singapore director of marketing and business development Ku Swee Yong, DPS customers do include genuine home buyers, not just speculators.
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:Mr Mak said even if the property market weakened further next year, homebuyers collecting their keys “could either lease out the homes at relatively good returns or sell the homes at their breakeven level or with a profit”.
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:As for those taking delivery in 2010, they are unlikely to be pressured to sell at distress prices as “we expect the property market to stabilise in 2010 and may show some signs of recovery”:.
CNA 20 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
Friday, December 19, 2008
About this Blog
There are 144 two-room flats priced between $76,000-$90,000; and 216 three-room flats priced between $120,000 to $146,000.
The board said that in pricing new flats, it considers several factors such as location, individual attributes of the flats, design of the project and the prevailing market conditions.
'To ensure public housing is affordable for first- time home buyers, new HDB flats are priced below their equivalent market prices,' it added.
HDB says that prices of nearby resale flats (which are about 20 years old) are about $175,000 to $180,000 (on a pro-rated basis with units of the same 65 square metre size). As such, HDB has priced the three-room flats at about 20%-30% less than comparable resale prices.
There are 504 four- room flats and these have been priced between $197,000 and $238,000. HDB says that resale prices are between $225,000 and $257,000 (on a pro-rated basis with units of the same 90 sq m size) for the four-room flats nearby. As such, Dew Spring four-room flats are about 7%-12% cheaper.
HDB did not have comparable resale prices for two-room flats.
Including Dew Spring, HDB has launched a total of 883 units of two-room and three-room flats this year and plans to launch another 100 smaller flats soon. It also plans to offer about 4,000 smaller units over the next two years. The launch of Dew Spring follows National Development Minister Mah Bow Tan's announcement in Parliament on Nov 18 that lower-income families and those who need to downgrade to smaller flats can look forward to a steady supply of smaller flats.
Extract: BT, 19 Dec 2008
May also want to read:
HDB Resale Price Index 1990-2008: Graph & Chart
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
HDB's Dew Spring @ Yishun: Supply of more smaller flats at affordable prices
THE Housing and Development Board (HDB) has launched Dew Spring @ Yishun where a good number of units are smaller two and three-room flats.2-room at $76,000-$90,000 and 3-room at $120,000 to $146,000
There are 144 two-room flats priced between $76,000-$90,000; and 216 three-room flats priced between $120,000 to $146,000.
The board said that in pricing new flats, it considers several factors such as location, individual attributes of the flats, design of the project and the prevailing market conditions.
'To ensure public housing is affordable for first- time home buyers, new HDB flats are priced below their equivalent market prices,' it added.
HDB priced 3-room flats 20%-30% less than resale flat prices
HDB says that prices of nearby resale flats (which are about 20 years old) are about $175,000 to $180,000 (on a pro-rated basis with units of the same 65 square metre size). As such, HDB has priced the three-room flats at about 20%-30% less than comparable resale prices.
HDB priced 4-room flats 7%-12% less than resale flat prices
There are 504 four- room flats and these have been priced between $197,000 and $238,000. HDB says that resale prices are between $225,000 and $257,000 (on a pro-rated basis with units of the same 90 sq m size) for the four-room flats nearby. As such, Dew Spring four-room flats are about 7%-12% cheaper.
HDB did not have comparable resale prices for two-room flats.
HDB's supply of smaller flats for Lower Income families & Downgraders
Including Dew Spring, HDB has launched a total of 883 units of two-room and three-room flats this year and plans to launch another 100 smaller flats soon. It also plans to offer about 4,000 smaller units over the next two years. The launch of Dew Spring follows National Development Minister Mah Bow Tan's announcement in Parliament on Nov 18 that lower-income families and those who need to downgrade to smaller flats can look forward to a steady supply of smaller flats.
Extract: BT, 19 Dec 2008
May also want to read:
HDB Resale Price Index 1990-2008: Graph & Chart
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
About this Blog
Urban Redevelopment Authority's (URA) monthly real estate data also revealed that the number of launch-ready units hit 6,512 units in November, a marginal rise over October but an increase of 3,840 units from a year ago.
Rosewood Suites in Woodlands by EL Development (ELD) sold 42 units in November, the most units sold, followed by Newton Edge (34 units) and RV Suites (19 units).
ELD is a unit of local builder Evan Lim & Co. Managing director Lim Yew Soon said that the pricing - at an average of $580 psf - 'may be on the low side' but added, 'We expect construction costs to come down next year so we took a bit of a risk with a lower margin'.
Still, Mr Lim conceded that, 'the price may not be sustainable in the long run', and ELD could begin to raise prices.
He also believes that a price war among developers is not likely because most developers bought sites at about the same price. 'And unless a developer goes bust, there is no reason for them to sell at a loss,' he added.
PropNex CEO Mohamed Ismail said that prices for existing developments in the same area such as Casablanca are going for between $500-$550 psf. He said that Rosewood Suites is 'extremely attractive in today's market' especially considering that new public housing flats are about $300 psf with Design, Build and Sell Scheme (DBSS) flats at about $450 psf.
PropNex was the marketing agent for Rosewood Suites and Mr Ismail added that most of the buyers were HDB upgraders.
Already, Knight Frank notes that the lowest priced non-landed unit sold in November was in Rosewood Suites at $512 psf while the highest priced non-landed unit is Orchard Scotts, which sold for $2,006 psf (The highest-priced unit sold in Orchard Scotts was $2,407 psf).
Both Newton Edge and RV Suites are in the core central region (CCR) and Colliers International director for research and advisory Tay Huey Ying noted that more than half the 382 units launched were in the CCR.
She added: 'Developers have been stepping up launches of prime properties since August 2008, in a reversal of the first half's trend where developers tended to hold back launches of prime properties. This could be an indication of weakening holding power amongst smallish and mid-tier developers with prime development sites.'
Ms Tay believes developers are likely to continue with the current launch momentum and could launch some 450-500 new units in December 2008, bringing the total launch volume for 2008 to some 6,500 units, less than half of last year's launch volume of more than 14,000 units.
Ms Tay expects developers' sale volume to hover between 150-200 units. This would bring sales volume for the year to less than 4,500 units, or less than a third of last year's volume of more than 14,000 units.
Other developments that registered better sales in November were Evania at Upper Paya Lebar Road and a landed housing project at Andrews Terrace.
CBRE Research executive director Li Hiaw Ho said: 'Price remains a critical factor to move sales, as seen by the good response to these projects.' He also said that prices for units in Evania have apparently been reduced from above $800 psf when it was first launched in March to $610 psf-$650 psf.
'Buyers will remain very cautious even if some re-pricing sets in,' he added. 'Since the economic drag is expected to persist into 2009, developers may be increasingly open to considering creative marketing tactics and soft discounts to attract buyers,' Nicholas Mak added.
Knight Frank director (research and consultancy) Nicholas Mak expects home-buying sentiments and launch activity to remain subdued until after the Chinese New Year in January.
DTZ executive director Ong Choon Fah also reckons the market is seeking 'clarity' on the economy and could wait for the January Budget measures before moving.
Extract:BT,16 Dec 2008
May also want to read:
Newton Edge: Buyers' Review
Launch of Rosewood Suite at $580 psf
Spore Property History 1960-2008
HDB Resale Price Index 1990-2008: Graph & Chart
Private Property Sales increases in November: Rosewood Suites and Newton Edge sold most
The launch of new developments helped pull up developer sales to 192 units in November, up from just 112 units in October. The number of units launched by developers increased from 159 units in October to 382 units in November.Launch-ready units hit 6,512 units in November
Urban Redevelopment Authority's (URA) monthly real estate data also revealed that the number of launch-ready units hit 6,512 units in November, a marginal rise over October but an increase of 3,840 units from a year ago.
Rosewood Suites and Newton Edge sold most
Rosewood Suites in Woodlands by EL Development (ELD) sold 42 units in November, the most units sold, followed by Newton Edge (34 units) and RV Suites (19 units).
ELD is a unit of local builder Evan Lim & Co. Managing director Lim Yew Soon said that the pricing - at an average of $580 psf - 'may be on the low side' but added, 'We expect construction costs to come down next year so we took a bit of a risk with a lower margin'.
Developer says may raise price and price war not likely
Still, Mr Lim conceded that, 'the price may not be sustainable in the long run', and ELD could begin to raise prices.
He also believes that a price war among developers is not likely because most developers bought sites at about the same price. 'And unless a developer goes bust, there is no reason for them to sell at a loss,' he added.
Rosewood Suites' Prices extremely attractive: Property Agents
PropNex CEO Mohamed Ismail said that prices for existing developments in the same area such as Casablanca are going for between $500-$550 psf. He said that Rosewood Suites is 'extremely attractive in today's market' especially considering that new public housing flats are about $300 psf with Design, Build and Sell Scheme (DBSS) flats at about $450 psf.
PropNex was the marketing agent for Rosewood Suites and Mr Ismail added that most of the buyers were HDB upgraders.
Already, Knight Frank notes that the lowest priced non-landed unit sold in November was in Rosewood Suites at $512 psf while the highest priced non-landed unit is Orchard Scotts, which sold for $2,006 psf (The highest-priced unit sold in Orchard Scotts was $2,407 psf).
Rosewood Suites and Newton Edge both in Central Core Region
Both Newton Edge and RV Suites are in the core central region (CCR) and Colliers International director for research and advisory Tay Huey Ying noted that more than half the 382 units launched were in the CCR.
Launch of Prime Properties may indicate small developers' weak holding power
She added: 'Developers have been stepping up launches of prime properties since August 2008, in a reversal of the first half's trend where developers tended to hold back launches of prime properties. This could be an indication of weakening holding power amongst smallish and mid-tier developers with prime development sites.'
Launch momemtum expected to continue
Ms Tay believes developers are likely to continue with the current launch momentum and could launch some 450-500 new units in December 2008, bringing the total launch volume for 2008 to some 6,500 units, less than half of last year's launch volume of more than 14,000 units.
Ms Tay expects developers' sale volume to hover between 150-200 units. This would bring sales volume for the year to less than 4,500 units, or less than a third of last year's volume of more than 14,000 units.
Other developments that registered better sales in November were Evania at Upper Paya Lebar Road and a landed housing project at Andrews Terrace.
Price remains a critical factor to move sales
CBRE Research executive director Li Hiaw Ho said: 'Price remains a critical factor to move sales, as seen by the good response to these projects.' He also said that prices for units in Evania have apparently been reduced from above $800 psf when it was first launched in March to $610 psf-$650 psf.
'Buyers will remain very cautious even if some re-pricing sets in,' he added. 'Since the economic drag is expected to persist into 2009, developers may be increasingly open to considering creative marketing tactics and soft discounts to attract buyers,' Nicholas Mak added.
Home-buying sentiments to remain subdued to Jan after Chinese New Year
Knight Frank director (research and consultancy) Nicholas Mak expects home-buying sentiments and launch activity to remain subdued until after the Chinese New Year in January.
DTZ executive director Ong Choon Fah also reckons the market is seeking 'clarity' on the economy and could wait for the January Budget measures before moving.
Extract:BT,16 Dec 2008
May also want to read:
Newton Edge: Buyers' Review
Launch of Rosewood Suite at $580 psf
Spore Property History 1960-2008
HDB Resale Price Index 1990-2008: Graph & Chart
Thursday, December 18, 2008
About this Blog
Is there sufficient government regulation to deter a subprime crisis in Singapore
Such checks would minimise impact of sudden economic downturn on investors
MANY Singaporeans who bought properties during the boom years have since been caught up by the sudden financial turmoil and found themselves in a bind as the property market has taken an about-turn and some banks have frozen lending.
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Such investors stand to lose a lot of money should they sell in this declining market. The problem is compounded for “flippers” who are stuck with properties bought under deferred payment schemes, which they had every intention of selling as soon as prices went up. At its worst, economic turmoil can bring about the collapse of the property market, causing severe consequences to the economy at large.
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Many people do not consider whether they can truly afford a long-term asset such as property when prices skyrocket, and blindly jump into the market hoping to get a good bargain — either to buy a dream home while it’s available, or to make a windfall by flipping the unit.
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As with the financial advisory and insurance industries, maybe it is time that the Government and the relevant industry body implement a fact-finding process for potential home buyers. Under the Financial Advisers Act/Financial Advisers Regulations, the fact-finding process is mandatory before any investment product can be sold. The objective is to ensure consumers buy what they can afford, taking into account their needs and risk profiles.
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Buying a property involves substantial financial resources and, for the Average Joe, probably a lifetime of commitment to service the loans. Many could end up enslaved to their properties. They could face significant financial losses when a negative equity situation occurs, in that their outstanding mortgage loans could exceed the market values of their properties.
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It is high time a more rigorous regulatory regime, one with a focus on educating consumers, be added to help Singaporeans in their financial decisions.
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 agents to do financial risk-profiling of potential property buyers?
The following letter is published in several mainstream media. I've reproduced it for blog visitors' comments. For discussion of this topic, read also the post:Is there sufficient government regulation to deter a subprime crisis in Singapore
Risk profiling for homebuyers? - Letter from Ee Teck Siew
Such checks would minimise impact of sudden economic downturn on investors
MANY Singaporeans who bought properties during the boom years have since been caught up by the sudden financial turmoil and found themselves in a bind as the property market has taken an about-turn and some banks have frozen lending.
.
Such investors stand to lose a lot of money should they sell in this declining market. The problem is compounded for “flippers” who are stuck with properties bought under deferred payment schemes, which they had every intention of selling as soon as prices went up. At its worst, economic turmoil can bring about the collapse of the property market, causing severe consequences to the economy at large.
.
Many people do not consider whether they can truly afford a long-term asset such as property when prices skyrocket, and blindly jump into the market hoping to get a good bargain — either to buy a dream home while it’s available, or to make a windfall by flipping the unit.
.
As with the financial advisory and insurance industries, maybe it is time that the Government and the relevant industry body implement a fact-finding process for potential home buyers. Under the Financial Advisers Act/Financial Advisers Regulations, the fact-finding process is mandatory before any investment product can be sold. The objective is to ensure consumers buy what they can afford, taking into account their needs and risk profiles.
.
Buying a property involves substantial financial resources and, for the Average Joe, probably a lifetime of commitment to service the loans. Many could end up enslaved to their properties. They could face significant financial losses when a negative equity situation occurs, in that their outstanding mortgage loans could exceed the market values of their properties.
.
It is high time a more rigorous regulatory regime, one with a focus on educating consumers, be added to help Singaporeans in their financial decisions.
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, December 15, 2008
About this Blog
‘We do feel they are a shade conservative now. It used to be easy if you wanted to buy a second property,’ said Mr Eugene Lim, associate director of real estate firm ERA Asia-Pacific.
‘Now, they actually pay more attention to the buyer - like the stability of his income, whether the household is one or dual income,’ he said.
Property loans, which used to take three days to be approved, may now take a week, noted MrReeve Ho, senior vice-president of property firm HSR International.
There is now more to-ing and fro-ing in processing loans too, he observed.
‘In the past, they would give the nod if all the documents were in order. Now, even with all the documents in order, they may grant a smaller loan,’ he said.
The Monetary Authority of Singapore (MAS) allows a home buyer to take a loan of up to 90% of the home’s purchase price or valuation, whichever is lower.
But banks are granting 60%-70% of the price, said those in the property business.
ERA’s Mr Lim added that a salaried applicant with not more than one property, and hence less likely to be a speculator or to be overstretched, would find it easier to get a loan than someone whose income is commission-based.
But banks such as DBS, OCBC, UOB and Citibank insisted that it is business as usual and they have not tightened credit.
‘Our prudent consumer credit assessment process helps us evaluate the applicant’s ability to service a credit facility such as a car or housing loan, regardless of market conditions,’ said a UOB spokesman.
‘These credit facilities should never become a financial burden to our customers, in good or bad times. Customers with good credit records and stable income should not face problems getting a credit facility from us.’
Citibank said it continues to see steady growth for its credit card and personal credit line, Ready Credit, applications.
‘While we are cognisant of the environment, we make every credit line assignment tailored to the individual customer’s situation.
‘We continue to use rigorous credit criteria which take into account credit history, sources of income and employment status, among others,’ said Mr John Denhof, its business director for credit payment products.
Extract:Sunday Times, 14 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
Bank Loans for Property see Credit Crunch
Financial institutions are not admitting to it, but they appear to have turned shy in granting loans, especially for property and motor vehicles, some observers say.‘We do feel they are a shade conservative now. It used to be easy if you wanted to buy a second property,’ said Mr Eugene Lim, associate director of real estate firm ERA Asia-Pacific.
Banks pay more attention to stability of income for loans assessment
‘Now, they actually pay more attention to the buyer - like the stability of his income, whether the household is one or dual income,’ he said.
Mortgage take longer to be approved
Property loans, which used to take three days to be approved, may now take a week, noted MrReeve Ho, senior vice-president of property firm HSR International.
There is now more to-ing and fro-ing in processing loans too, he observed.
‘In the past, they would give the nod if all the documents were in order. Now, even with all the documents in order, they may grant a smaller loan,’ he said.
Banks grant mortgage only 60%-70%, instead of 90%
The Monetary Authority of Singapore (MAS) allows a home buyer to take a loan of up to 90% of the home’s purchase price or valuation, whichever is lower.
But banks are granting 60%-70% of the price, said those in the property business.
ERA’s Mr Lim added that a salaried applicant with not more than one property, and hence less likely to be a speculator or to be overstretched, would find it easier to get a loan than someone whose income is commission-based.
DBS, OCBC, UOB and Citibank say no credit tightening
But banks such as DBS, OCBC, UOB and Citibank insisted that it is business as usual and they have not tightened credit.
‘Our prudent consumer credit assessment process helps us evaluate the applicant’s ability to service a credit facility such as a car or housing loan, regardless of market conditions,’ said a UOB spokesman.
‘These credit facilities should never become a financial burden to our customers, in good or bad times. Customers with good credit records and stable income should not face problems getting a credit facility from us.’
Citibank said it continues to see steady growth for its credit card and personal credit line, Ready Credit, applications.
‘While we are cognisant of the environment, we make every credit line assignment tailored to the individual customer’s situation.
‘We continue to use rigorous credit criteria which take into account credit history, sources of income and employment status, among others,’ said Mr John Denhof, its business director for credit payment products.
Extract:Sunday Times, 14 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
‘This number may increase given the weak homebuying sentiment which is expected to persist,’ said Knight Frank director of research and consultancy Nicholas Mak.
Going ahead, there could also be a pool of sellers of newly completed, unoccupied developments eager to let go of their units. Because of the economic uncertainty, some owners of newly completed developments may be looking to offload their property instead of holding on to a big investment.
Although most of the projects targeted for completion next year received a good take-up rate during the good years in 2006 and last year, some of them would have been sold at high prices.
‘Some buyers who have stretched their financial limits and bought multiple units may sell these units on the resale market, so potential buyers will have more choices,’ said Mr Mak.
For example at The Sea View, a recently completed condo near the bustling Parkway Parade mall, there are unoccupied high-floor units going for $930 per sq ft (psf). Caveats filed this year showed that deals had been done at $1,000 psf and above.
Other recently completed condos that still have new units available include Lakeshore in Jurong West, Icon in Tanjong Pagar, Park Infinia at Wee Nam in Lincoln Road and St Regis Residences Singapore in Cuscaden Road.
Extract:Sunday Times, 15 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
Unsold condo units increase with TOP at The Sea View, Lakeshore, Icon, Park Infinia, St Regis Residences
At the end of the third quarter, the number of unsold units in completed non-landed developments stood at 759, up from 461 a year ago.Number of unsold condo units may continue to increase with weak sentiment
‘This number may increase given the weak homebuying sentiment which is expected to persist,’ said Knight Frank director of research and consultancy Nicholas Mak.
Seller of TOP condos eager to let go of unoccupied units
Going ahead, there could also be a pool of sellers of newly completed, unoccupied developments eager to let go of their units. Because of the economic uncertainty, some owners of newly completed developments may be looking to offload their property instead of holding on to a big investment.
Potential Buyers may have more choices by 2009
Although most of the projects targeted for completion next year received a good take-up rate during the good years in 2006 and last year, some of them would have been sold at high prices.
‘Some buyers who have stretched their financial limits and bought multiple units may sell these units on the resale market, so potential buyers will have more choices,’ said Mr Mak.
Unsold completed units at The Sea View, Lakeshore, Icon, Park Infinia, St Regis Residences
For example at The Sea View, a recently completed condo near the bustling Parkway Parade mall, there are unoccupied high-floor units going for $930 per sq ft (psf). Caveats filed this year showed that deals had been done at $1,000 psf and above.
Other recently completed condos that still have new units available include Lakeshore in Jurong West, Icon in Tanjong Pagar, Park Infinia at Wee Nam in Lincoln Road and St Regis Residences Singapore in Cuscaden Road.
Extract:Sunday Times, 15 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
Saturday, December 13, 2008
About this Blog
'HDB plans to offer about 3,000 flats for sale annually in Punggol, subject to demand,' said Minister for National Development Mah Bow Tan yesterday. 'By end-2011, there will be about 23,000 flats completed. Our plans to launch the first sale site at the Town Centre for a mixed commercial and private residential development are also on track. We will be launching this waterfront site by 2010/2011.'
Right now, there are about 17,000 HDB flats in Punggol. Since August last year, HDB has launched over 5,000 flats under seven Build-To-Order (BTO) projects in the town.
Construction on the $25 million project to revamp the waterway will begin next year and be completed by 2010, HDB said.
After that, plans for special housing designs that will capitalise on the views along the waterway will be developed, Mr Mah said. The idea, he said, is to bring the waterway closer to residents. 'With the waterway landscape proposals completed, we can focus on another important milestone in our Punggol journey: shaping the housing along the Punggol Waterway.'
With this in mind, HDB yesterday launched a new design competition for Punggol's Waterfront public housing. Competing firms will have to come up with a masterplan for some 6,000 HDB flats during the first stage. Five finalists will be chosen to proceed to the second stage, where they will have to come up with a more detailed plan for a smaller plot of land, with an estimated 1,300 units, within the bigger site.
Extract: BT, 13 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
Punggol's waterfront HDB flats and private homes from 2010
PUNGGOL, which started out as a sleepy fishing village, will get a new lease of life from 2010 onwards, with thousands of waterfront HDB flats and private homes planned alongside the soon-to-be bustling 4.2km Punggol Waterway.Launch of Punggol waterfront site by 2010/2011
'HDB plans to offer about 3,000 flats for sale annually in Punggol, subject to demand,' said Minister for National Development Mah Bow Tan yesterday. 'By end-2011, there will be about 23,000 flats completed. Our plans to launch the first sale site at the Town Centre for a mixed commercial and private residential development are also on track. We will be launching this waterfront site by 2010/2011.'
Right now, there are about 17,000 HDB flats in Punggol. Since August last year, HDB has launched over 5,000 flats under seven Build-To-Order (BTO) projects in the town.
Construction on the $25 million project to revamp the waterway will begin next year and be completed by 2010, HDB said.
Housing along the Punggol Waterway
After that, plans for special housing designs that will capitalise on the views along the waterway will be developed, Mr Mah said. The idea, he said, is to bring the waterway closer to residents. 'With the waterway landscape proposals completed, we can focus on another important milestone in our Punggol journey: shaping the housing along the Punggol Waterway.'
With this in mind, HDB yesterday launched a new design competition for Punggol's Waterfront public housing. Competing firms will have to come up with a masterplan for some 6,000 HDB flats during the first stage. Five finalists will be chosen to proceed to the second stage, where they will have to come up with a more detailed plan for a smaller plot of land, with an estimated 1,300 units, within the bigger site.
Extract: BT, 13 Dec 2008
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Mr Liew added: 'Now that the bulk of the units has been sold, our next goal is to make sure we deliver a quality home, and on time, to our customers.'
Park Central @ AMK is expected to get TOP (temporary occupation permit) in mid-2011.
The development is the third Design, Build and Sell Scheme (DBSS) development in Singapore.
The Housing and Development Board ( HDB ) scheme, which allows private developers to sell homes under HDB terms, was first announced in 2005.
UE says that since the launch in July, Park Central @ AMK received more than 2,300 applications. Its showflats also saw more than 23,000 visitors in the first two weeks.
A spokesman for UE added that most of the buyers have opted for HDB loans.
Last month, Chinese firm QingJian Realty launched the fourth DBSS development, Natura Loft at Bishan, with units going for around $450-$570 psf.
On Nov 14, it was reported that Natura Loft received about 600 applications for 480 flats a day before the close of applications.
BT, 12 Dec 2008
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HDB DBSS 6 Sites Detail Information
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
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Park Central @ AMK 70% sold
UE managing director of integrated facility management and property development business David Liew said that all the four-bedroom and penthouse units in the 578-unit development have been sold with only five-room units left.Mr Liew added: 'Now that the bulk of the units has been sold, our next goal is to make sure we deliver a quality home, and on time, to our customers.'
Park Central @ AMK is expected to get TOP (temporary occupation permit) in mid-2011.
The development is the third Design, Build and Sell Scheme (DBSS) development in Singapore.
The Housing and Development Board ( HDB ) scheme, which allows private developers to sell homes under HDB terms, was first announced in 2005.
UE says that since the launch in July, Park Central @ AMK received more than 2,300 applications. Its showflats also saw more than 23,000 visitors in the first two weeks.
A spokesman for UE added that most of the buyers have opted for HDB loans.
Last month, Chinese firm QingJian Realty launched the fourth DBSS development, Natura Loft at Bishan, with units going for around $450-$570 psf.
On Nov 14, it was reported that Natura Loft received about 600 applications for 480 flats a day before the close of applications.
BT, 12 Dec 2008
May also want to read:
HDB DBSS 6 Sites Detail Information
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
HDB Resale Price Index 1990-2008: Graph & Chart
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