Showing posts with label 0.4 Property News Analysis Oct 2008. Show all posts
Showing posts with label 0.4 Property News Analysis Oct 2008. Show all posts
Monday, November 3, 2008
About this Blog
HDB rental market will be the next segment of the local property market to be hit by the global financial crisis, reported Straits Times today. This may very well mark the beginning of the weakening in the HDB market.
Rents of Housing Board flats, which have been climbing steadily, largely on demand from foreigners squeezed out of the private homes market, are up only slightly in the third quarter even as rents of private homes fell. But property experts say HDB rents have likely peaked. They will hold steady for the next several months before they begin to crack from the pressure of falling rents in the private homes market.
'Any decline in private rents is going to contribute to the downward slide in HDB rents, but it may take a few months for the impact to filter down,' said Knight Frank's director of research and consultancy Nicholas Mak.
Downward Pressure on HDB Rents Already Showing
The pressure is already starting to show: Rents for HDB flats have shown smaller increases in the third quarter. Median rents for five-room flats have risen by $100 every quarter this year to $2,000 in the third. But median rents for three-room flats remained unchanged at $1,500 in the three-month period to Sept 30 while median rents for four-room flats showed a smaller $50 rise to $1,800, from $1,750 in the second quarter and $1,600 in the first.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
HDB Rents to Fall as Private Property Rents fall
Downward slide in HDB rents may take a few monthsHDB rental market will be the next segment of the local property market to be hit by the global financial crisis, reported Straits Times today. This may very well mark the beginning of the weakening in the HDB market.
Rents of Housing Board flats, which have been climbing steadily, largely on demand from foreigners squeezed out of the private homes market, are up only slightly in the third quarter even as rents of private homes fell. But property experts say HDB rents have likely peaked. They will hold steady for the next several months before they begin to crack from the pressure of falling rents in the private homes market.
'Any decline in private rents is going to contribute to the downward slide in HDB rents, but it may take a few months for the impact to filter down,' said Knight Frank's director of research and consultancy Nicholas Mak.
Downward Pressure on HDB Rents Already Showing
The pressure is already starting to show: Rents for HDB flats have shown smaller increases in the third quarter. Median rents for five-room flats have risen by $100 every quarter this year to $2,000 in the third. But median rents for three-room flats remained unchanged at $1,500 in the three-month period to Sept 30 while median rents for four-room flats showed a smaller $50 rise to $1,800, from $1,750 in the second quarter and $1,600 in the first.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Saturday, November 1, 2008
About this Blog
"AIA S'pore lays off 20: More job losses expected in cost-cutting exercise begun before crisis hit its US parent."
Bull said:
What is 20 retrenchment??? compare to 200,000 new jobs we created this year.If you are not choosy, be realistic with your pay & jobs, no problem lah.
Bear said:
don't forget we've thousands of fresh-grad looking for jobs every year?
don't forget most new jobs created are in the construction industry .. can our retrenched bankers or even factory operators now go and take over blanga's constructional workers' positions?
be realistic with your pay and job... well said ... but how are you going to pay for the million dollar condo you committed earlier this year?
Another Bear said:
Moral of the story do not over commit to those overpriced condo..
Yet Another Bear said:
AIA axes 20 ... just slightly more than a week ago, Merrill Lynch also axed about 20 persons. i heard that very recently, standard charted also axed some (anyone care to confirm??)...
while I am not surprised that banks are cutting fat, these few... maybe 50 people are the "higher income" whose salaries and bonuses combined can easily be used to pay for 1000 workers in the construction and services industry... see the comparison???
so we create 200,000 jobs. Yeah, these are majority the low paying ones. But at the top line, our best paying industry (i.e. banks) are retrenching, most of it on the quiet and not so "visibly" like right now. This looks to me like incomes are going to shrink. The people in the banking & finance industry that were laid off... they were also the very same people that had the money in the first place to buy the condominiums. Many of them did indeed buy during the boom and they aren't necessarily going to be able to get a job with similar pay... let alone better pay to finance their earlier purchases. In fact, the higher up you are, when you are axed, the more difficult it is to find an equivalent job.
Guess what... this is going to be a vicious cycle. When their jobs are unstable, even the ones with loads of cash in the bank will think thrice about buying expensive properties.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Property Buyers be Prudent: Fewer Jobs, More Retrenchments Ahead
The following is a forum exchange on the deterioriating job market in Singapore (extracted from the Singapore Property Forum):"AIA S'pore lays off 20: More job losses expected in cost-cutting exercise begun before crisis hit its US parent."
Bull said:
What is 20 retrenchment??? compare to 200,000 new jobs we created this year.If you are not choosy, be realistic with your pay & jobs, no problem lah.
Bear said:
don't forget we've thousands of fresh-grad looking for jobs every year?
don't forget most new jobs created are in the construction industry .. can our retrenched bankers or even factory operators now go and take over blanga's constructional workers' positions?
be realistic with your pay and job... well said ... but how are you going to pay for the million dollar condo you committed earlier this year?
Another Bear said:
Moral of the story do not over commit to those overpriced condo..
Yet Another Bear said:
AIA axes 20 ... just slightly more than a week ago, Merrill Lynch also axed about 20 persons. i heard that very recently, standard charted also axed some (anyone care to confirm??)...
while I am not surprised that banks are cutting fat, these few... maybe 50 people are the "higher income" whose salaries and bonuses combined can easily be used to pay for 1000 workers in the construction and services industry... see the comparison???
so we create 200,000 jobs. Yeah, these are majority the low paying ones. But at the top line, our best paying industry (i.e. banks) are retrenching, most of it on the quiet and not so "visibly" like right now. This looks to me like incomes are going to shrink. The people in the banking & finance industry that were laid off... they were also the very same people that had the money in the first place to buy the condominiums. Many of them did indeed buy during the boom and they aren't necessarily going to be able to get a job with similar pay... let alone better pay to finance their earlier purchases. In fact, the higher up you are, when you are axed, the more difficult it is to find an equivalent job.
Guess what... this is going to be a vicious cycle. When their jobs are unstable, even the ones with loads of cash in the bank will think thrice about buying expensive properties.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Thursday, October 30, 2008
About this Blog
Get a confirmation from your banker about loan availability for desired amount for desired property before you put down any deposit. DO NOT under any circumstances put down a deposit hoping that your loan will be approved. Now a days bank's are valuing property very conservatively. For example - you are viewing a property worth 1mil (seller might tell you thats the valuation/or below valuation price). - So your estimate is that you need 200K cash/cpf and 800K loan (max 80% loan available these days). - You put in some token deposit to confirm purchase. - You check with your banker now. He values the property at 900K and approves 720K loan. - You suddenly find yourself in a position to put up 80K cash extra. - If you cant get that, you have to forfeit your deposit Please avoid such situation. Agents will always tell you to put a deposit, telling you that unit is hot and other buyers are also in queue. Dont believe them. Its better to let a unit go than to let your deposit go. Take your time before you confirm any purchase. Be financially prudent. God bless.
Posted by Anonymous in the Singapore Property Forum in the response to the article reproduced below:
He buys condo for a windfall but takes a big fall instead
AMONG the legion of burnt investors is a buyer of a million-dollar condo apartment who should have known better. He jumped into a then hot property market without weighing the biggest 'if' of all - what if you lack the cash to complete the purchase? Now Mr Byron Nifakis, 39, is bankrupt. He wanted to buy a $1.2 million four-room flat in the Casa Merah condominium, as an investment. The Singapore permanent resident was working as the IT director of a restaurant here, earning $10,000 a month. Now he is reminded of his bankruptcy whenever he peers out of his rented home, which faces the Casa Merah on Tanah Merah Kechil Avenue. He eyed the condo development to cash in on the rising property market last year. But, by his own admission, his 'naivety and -censored-' resulted in his owing the condo developers $18,000 for his botched purchase. Mr Nifakis, who came to Singapore from Canada in 2001, thought he was 'safe' as he had not signed any documents committing himself to the deal. But he had handed over a $60,000 cheque as deposit, and what he did not know was that this was sufficient proof of his option to buy the property. His cheque bounced, but lawyers and property agents told The New Paper he was still obliged to buy the unit. Mr Nifakis, who had only about $6,000 in his account then, could not proceed with the purchase because money he was counting on from overseas partners did not come in. He said: 'It was only because my property agent promised me that I could get more time to process the $60,000 payment that I even decided to go to the showroom that day to try my luck.' But by 4pm, he was unable to raise the money from his partners. So he returned to the showroom to back out of the deal and get his cheque back. When the agents refused to return the cheque, Mr Nifakis left the showroom. 'I thought they could keep my cheque, because they would not be able to use it against me,' he said. But he was wrong. A purchasers' particulars form he had signed stated that he had to pay 25 per cent of the $60,000, or $15,000, if he backed out of the deal. And, to his horror, he learnt later from his lawyer that the cheque could be used as evidence that the option had already been granted to him. He said: 'I should have refused to leave the showroom until it was closing time so that I could speak to someone who could return me my cheque. 'My agents kept telling me 'I'm sure you will find a way to get the money'.' Trying to make the best out of a bad situation, he 'scrambled' to get the money by applying for a bank loan, but failed to get approval. Desperate Desperate for more time, Mr Nifakis wrote to the developers, but failed to get an extension. They insisted that he had to pay the $15,000. Mr Ling Tien Wah, the lawyer acting for the developer, explained that since Mr Nifakis did not exercise his option to buy the apartment, the developer was entitled to 25 per cent of the $60,000 booking fee. In February this year, a judge ordered Mr Nifakis to pay the developer $18,000, including legal fees of $3,000. The developer took out a bankruptcy application against him in July when he failed to pay up. To make matters worse, his company laid him off the same month because it had run into financial difficulties and had shut down the restaurant. On 9 Oct, the court issued Mr Nifakis a bankruptcy order as he was unable to come to a compromise with the developers on a repayment scheme. He asked to pay them $300 a month over five years, but the developer rejected the offer, noting that if he wanted to, he could clear his debt in just 12 months. A bitter Mr Nifakis said: 'This is the biggest investment I have made; it is also the biggest lesson I have had to learn. 'I try not to think about it too much. There's a bit of resentment. After all, that property could have been mine.'
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Property Buying Advice: Confirm Bank Loan Before Putting a Deposit
A friendly advise for all buyers:Get a confirmation from your banker about loan availability for desired amount for desired property before you put down any deposit. DO NOT under any circumstances put down a deposit hoping that your loan will be approved. Now a days bank's are valuing property very conservatively. For example - you are viewing a property worth 1mil (seller might tell you thats the valuation/or below valuation price). - So your estimate is that you need 200K cash/cpf and 800K loan (max 80% loan available these days). - You put in some token deposit to confirm purchase. - You check with your banker now. He values the property at 900K and approves 720K loan. - You suddenly find yourself in a position to put up 80K cash extra. - If you cant get that, you have to forfeit your deposit Please avoid such situation. Agents will always tell you to put a deposit, telling you that unit is hot and other buyers are also in queue. Dont believe them. Its better to let a unit go than to let your deposit go. Take your time before you confirm any purchase. Be financially prudent. God bless.
Posted by Anonymous in the Singapore Property Forum in the response to the article reproduced below:
He buys condo for a windfall but takes a big fall instead
AMONG the legion of burnt investors is a buyer of a million-dollar condo apartment who should have known better. He jumped into a then hot property market without weighing the biggest 'if' of all - what if you lack the cash to complete the purchase? Now Mr Byron Nifakis, 39, is bankrupt. He wanted to buy a $1.2 million four-room flat in the Casa Merah condominium, as an investment. The Singapore permanent resident was working as the IT director of a restaurant here, earning $10,000 a month. Now he is reminded of his bankruptcy whenever he peers out of his rented home, which faces the Casa Merah on Tanah Merah Kechil Avenue. He eyed the condo development to cash in on the rising property market last year. But, by his own admission, his 'naivety and -censored-' resulted in his owing the condo developers $18,000 for his botched purchase. Mr Nifakis, who came to Singapore from Canada in 2001, thought he was 'safe' as he had not signed any documents committing himself to the deal. But he had handed over a $60,000 cheque as deposit, and what he did not know was that this was sufficient proof of his option to buy the property. His cheque bounced, but lawyers and property agents told The New Paper he was still obliged to buy the unit. Mr Nifakis, who had only about $6,000 in his account then, could not proceed with the purchase because money he was counting on from overseas partners did not come in. He said: 'It was only because my property agent promised me that I could get more time to process the $60,000 payment that I even decided to go to the showroom that day to try my luck.' But by 4pm, he was unable to raise the money from his partners. So he returned to the showroom to back out of the deal and get his cheque back. When the agents refused to return the cheque, Mr Nifakis left the showroom. 'I thought they could keep my cheque, because they would not be able to use it against me,' he said. But he was wrong. A purchasers' particulars form he had signed stated that he had to pay 25 per cent of the $60,000, or $15,000, if he backed out of the deal. And, to his horror, he learnt later from his lawyer that the cheque could be used as evidence that the option had already been granted to him. He said: 'I should have refused to leave the showroom until it was closing time so that I could speak to someone who could return me my cheque. 'My agents kept telling me 'I'm sure you will find a way to get the money'.' Trying to make the best out of a bad situation, he 'scrambled' to get the money by applying for a bank loan, but failed to get approval. Desperate Desperate for more time, Mr Nifakis wrote to the developers, but failed to get an extension. They insisted that he had to pay the $15,000. Mr Ling Tien Wah, the lawyer acting for the developer, explained that since Mr Nifakis did not exercise his option to buy the apartment, the developer was entitled to 25 per cent of the $60,000 booking fee. In February this year, a judge ordered Mr Nifakis to pay the developer $18,000, including legal fees of $3,000. The developer took out a bankruptcy application against him in July when he failed to pay up. To make matters worse, his company laid him off the same month because it had run into financial difficulties and had shut down the restaurant. On 9 Oct, the court issued Mr Nifakis a bankruptcy order as he was unable to come to a compromise with the developers on a repayment scheme. He asked to pay them $300 a month over five years, but the developer rejected the offer, noting that if he wanted to, he could clear his debt in just 12 months. A bitter Mr Nifakis said: 'This is the biggest investment I have made; it is also the biggest lesson I have had to learn. 'I try not to think about it too much. There's a bit of resentment. After all, that property could have been mine.'
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Tuesday, October 28, 2008
About this Blog
Notice that people are shifting from private housing to HDB and smaller and smaller HDB ... this is the result of housing inflation in a recession: people downgrade, rather than pay whatever the developers ask ... so bulls' theory of how inflation will chase up private property price is totally wrong.
Source : Business Times - 25 Apr
HDB prices up as demand rises. Rents also rise,
Q3 data shows; prices and rents of private mass-market homes fall as demand shifts to HDB flats
DEMAND is shifting to HDB flats from mass-market private homes - pushing up HDB prices and rents, but causing mass-market home prices and rents to fall. Figures released yesterday by the Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) show HDB’s resale price index rose 4.2 per cent in the third quarter. This means that in the first nine months of 2008, HDB resale prices climbed 12.4 per cent. The number of transactions also increased in Q3 to 8,110, from 7,760 in Q2.
‘In contrast to the private property market, despite the gloomy economic outlook, demand in the resale HDB market is still very active, with buyers coming from up-graders, down-graders and Permanent Residents,’ said ERA assistant vice-president Eugene Lim.
Analysts attribute this to a shift in demand towards HDB flats and away from private mass-market projects. ‘Demand is moving towards the HDB market,’ said Nicholas Mak, director of research and consultancy at Knight Frank. ‘A greater proportion of new homeowners, such as newlyweds and new immigrants, are looking only at HDB flats.’ In the past, a greater proportion of new homeowners would have considered private mass-market apartments, he said: ‘Compared to purchasing private residential properties, buying an HDB flat may allow some to set aside funds for liquidity during this uncertainty.’
Statistics show the number of Singapore citizens and Permanent Residents (PRs) is set to hit a record this year. In the first half of 2008, there were 34,800 new PRs and 9,600 new citizens, up from 28,500 new PRs and 7,300 new citizens in H1 last year.
Another reason homebuyers are choosing HDB flats over private mass-market homes is that HDB flat prices are still rising, while prices of private homes are falling. ‘People want the asset they buy to appreciate in value. In the HDB market there is still room for prices to move upsaid Ku Swee Yong, ,’ director of marketing and business development at Savills Singapore. At Sengkang, where HDB flats are going for around $250,000-$300,000, prices could climb 5-10 per cent in the next few quarters, he said.
Private mass-market rents have also been hit by the shift in demand. They fell 2.7 per cent in Q3, as demand switched to the HDB rental market. Overall median sub-let rents for HDB flats rose slightly in Q3.
But looking ahead, even growth in HDB prices is expected to slow as the economy worsens. ‘As such, although there is good demand for resale HDB flats, we expect buyers to turn more cautious and exercise more prudence by offering less for flats so as not to overstretch,’ said ERA’s Mr Lim.
HDB resale prices are expected to continue to increase, but probably at a more measured pace in the coming months. ERA’s Mr Lim said: ‘For 2008 we may see an overall price increase of 15-17 per cent, slightly lower than the 17.5 per cent increase for the whole of 2007. As for 2009, we are likely to see only marginal quarterly price increases, as current resale prices are a new peak.’ Likewise, PropNex’s Mr Ismail expects the HDB resale price index to increase about 15 per cent for the whole of 2008.
Because of this, cash-over-valuation (COV) figures will continue to decline in the coming quarters, analysts say. The median COV for resale transactions fell to $19,000 in Q3, from $20,000 in Q2 and $21,000 in Q1. The bigger drops in median COVs were for five-room flats (down 15 per cent) and executive flats (down 22 per cent), notes Mohd Ismail, chief executive of PropNex. ‘This is evidence of buyers resisting paying larger COVs for larger properties in this bleak economy,’ he said.
The increasing popularity of smaller three and four-room flats was also reflected in the median resale prices. The increase for smaller flats, at almost 5 per cent, outstripped the 1.5 per cent increase for larger flats.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Demand Shifting to HDB flats from Mass-Market Private Property
Result of housing inflation in a recession: People Downgrade
Notice that people are shifting from private housing to HDB and smaller and smaller HDB ... this is the result of housing inflation in a recession: people downgrade, rather than pay whatever the developers ask ... so bulls' theory of how inflation will chase up private property price is totally wrong.
Source : Business Times - 25 Apr
Demand shifting to HDB flats from mass-market private homes
HDB prices up as demand rises. Rents also rise,
Q3 data shows; prices and rents of private mass-market homes fall as demand shifts to HDB flats
DEMAND is shifting to HDB flats from mass-market private homes - pushing up HDB prices and rents, but causing mass-market home prices and rents to fall. Figures released yesterday by the Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) show HDB’s resale price index rose 4.2 per cent in the third quarter. This means that in the first nine months of 2008, HDB resale prices climbed 12.4 per cent. The number of transactions also increased in Q3 to 8,110, from 7,760 in Q2.
Mass-market home prices will hold steady this year?
In contrast, private mass-market properties put up a decidedly lacklustre showing in Q3. Prices of non-landed properties in the outside central region - where most mass-market private homes are located - fell 1.5 per cent. The decline was not expected - most analysts have said mass-market home prices will hold steady this year.‘In contrast to the private property market, despite the gloomy economic outlook, demand in the resale HDB market is still very active, with buyers coming from up-graders, down-graders and Permanent Residents,’ said ERA assistant vice-president Eugene Lim.
Buying HDB flat allow liquidity during uncertain time
Analysts attribute this to a shift in demand towards HDB flats and away from private mass-market projects. ‘Demand is moving towards the HDB market,’ said Nicholas Mak, director of research and consultancy at Knight Frank. ‘A greater proportion of new homeowners, such as newlyweds and new immigrants, are looking only at HDB flats.’ In the past, a greater proportion of new homeowners would have considered private mass-market apartments, he said: ‘Compared to purchasing private residential properties, buying an HDB flat may allow some to set aside funds for liquidity during this uncertainty.’
More people are eligible to buy HDB flats now
Statistics show the number of Singapore citizens and Permanent Residents (PRs) is set to hit a record this year. In the first half of 2008, there were 34,800 new PRs and 9,600 new citizens, up from 28,500 new PRs and 7,300 new citizens in H1 last year.
Another reason to choose HDB: HDB flat appreciating, private home prices are falling
Another reason homebuyers are choosing HDB flats over private mass-market homes is that HDB flat prices are still rising, while prices of private homes are falling. ‘People want the asset they buy to appreciate in value. In the HDB market there is still room for prices to move upsaid Ku Swee Yong, ,’ director of marketing and business development at Savills Singapore. At Sengkang, where HDB flats are going for around $250,000-$300,000, prices could climb 5-10 per cent in the next few quarters, he said.
HDB Rental Flats also hit Private Mass-Market Rents
Private mass-market rents have also been hit by the shift in demand. They fell 2.7 per cent in Q3, as demand switched to the HDB rental market. Overall median sub-let rents for HDB flats rose slightly in Q3.
HDB Resale Prices Expected to continue to increase but at slower pace as the economy worsens
But looking ahead, even growth in HDB prices is expected to slow as the economy worsens. ‘As such, although there is good demand for resale HDB flats, we expect buyers to turn more cautious and exercise more prudence by offering less for flats so as not to overstretch,’ said ERA’s Mr Lim.
HDB resale prices are expected to continue to increase, but probably at a more measured pace in the coming months. ERA’s Mr Lim said: ‘For 2008 we may see an overall price increase of 15-17 per cent, slightly lower than the 17.5 per cent increase for the whole of 2007. As for 2009, we are likely to see only marginal quarterly price increases, as current resale prices are a new peak.’ Likewise, PropNex’s Mr Ismail expects the HDB resale price index to increase about 15 per cent for the whole of 2008.
HDB Demand Shifting towards Smaller Flats
Because of this, cash-over-valuation (COV) figures will continue to decline in the coming quarters, analysts say. The median COV for resale transactions fell to $19,000 in Q3, from $20,000 in Q2 and $21,000 in Q1. The bigger drops in median COVs were for five-room flats (down 15 per cent) and executive flats (down 22 per cent), notes Mohd Ismail, chief executive of PropNex. ‘This is evidence of buyers resisting paying larger COVs for larger properties in this bleak economy,’ he said.
The increasing popularity of smaller three and four-room flats was also reflected in the median resale prices. The increase for smaller flats, at almost 5 per cent, outstripped the 1.5 per cent increase for larger flats.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Friday, October 24, 2008
About this Blog
The median Cash-Over-Valuation (COV) amount of all resale transactions in 3rd Quarter 2008 was $19,000. This is a slight decrease compared with the COV of $20,000 in 2nd Quarter 2008.
Overall median sublet rents for HDB flats rose slightly in Quarter 3 2008. Subletting transactions fell slightly by about 4% from about 4,120 cases in Quarter 2 2008 to about 3,960 cases in Quarter 3 2008. The total number of HDB flats approved for subletting rose to about 21,400 units, compared to about 20,200 units in Quarter 2 2008.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
HDB Resale Price Index Quarter 3 2008: Price Rose 4.2% and Rent Rose marginally of less than 1%
HDB’s Resale Price Index (RPI) rose by 4.2% in 3rd Quarter 2008 over the previous quarter, slightly lower than the 4.5% increase seen in 2nd Quarter 2008. Resale transactions increased by about 4%, from about 7,760 cases in Quarter 2 2008 to about 8,110 cases in Quarter 3 2008.The median Cash-Over-Valuation (COV) amount of all resale transactions in 3rd Quarter 2008 was $19,000. This is a slight decrease compared with the COV of $20,000 in 2nd Quarter 2008.
Overall median sublet rents for HDB flats rose slightly in Quarter 3 2008. Subletting transactions fell slightly by about 4% from about 4,120 cases in Quarter 2 2008 to about 3,960 cases in Quarter 3 2008. The total number of HDB flats approved for subletting rose to about 21,400 units, compared to about 20,200 units in Quarter 2 2008.
May also want to read:
Singapore Property Forecast: HDB and Private Property will trend in opposite direction until ..,
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
About this Blog
Rents also fell during the July-September period by 0.9% compared to the increase of 2.5% in the three months to June. Rentals of non-landed properties in CCR, RCR and OCR fell by 0.7%, 0.5% and 2.7% respectively in Quarter 3 2008
Prices of non-landed properties fell 2.5% in 3rd Quarter 2008, compared with an increase of 0.1% in the previous quarter. Prices of apartments fell 2.4% and prices of condominiums fell 2.6%. Prices of non-landed properties in Core Central Region (CCR) fell 2.7% in Quarter 3 2008, and prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 2.4% and 1.5% respectively.
Prices of landed properties fell 1.9% in Quarter 3 2008, compared with the increase of 0.6% in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 1.9%, 2.1% and 1.6% respectively in Quarter 3 2008.
As at Quarter 3 2008, there were 66,422 private residential units in the pipeline, comprising supply from projects that are already under construction and those that have been granted planning approval but are not under construction yet. Of the 66,422 uncompleted units of private housing from projects in the pipeline, 23,008 units, 19,736 units and 23,678 units were expected to be completed over the next few years in CCR, RCR and OCR respectively.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
URA Quarter 3 2008 Real Estate Statistics: Private Property Price Fell 4.2% and Rent Fell as much as 2.7% in OCR
URA Q3 2008 real estate statistics shows that private property price fell 4.2%, worse than an initial estimate of a 1.8% decline.Rents also fell during the July-September period by 0.9% compared to the increase of 2.5% in the three months to June. Rentals of non-landed properties in CCR, RCR and OCR fell by 0.7%, 0.5% and 2.7% respectively in Quarter 3 2008
Prices of non-landed properties fell 2.5% in 3rd Quarter 2008, compared with an increase of 0.1% in the previous quarter. Prices of apartments fell 2.4% and prices of condominiums fell 2.6%. Prices of non-landed properties in Core Central Region (CCR) fell 2.7% in Quarter 3 2008, and prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 2.4% and 1.5% respectively.
Prices of landed properties fell 1.9% in Quarter 3 2008, compared with the increase of 0.6% in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 1.9%, 2.1% and 1.6% respectively in Quarter 3 2008.
As at Quarter 3 2008, there were 66,422 private residential units in the pipeline, comprising supply from projects that are already under construction and those that have been granted planning approval but are not under construction yet. Of the 66,422 uncompleted units of private housing from projects in the pipeline, 23,008 units, 19,736 units and 23,678 units were expected to be completed over the next few years in CCR, RCR and OCR respectively.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Thursday, October 23, 2008
About this Blog
Chesterton International research pointed out that a high end property should have 3 attributes: (1) prime location, (2) exclusivity and (3) spaciousness with area of 3000 sq ft or more. These are the attributes that high-net-worth-individuals would look for in a high-end property. In land scarce Singapore, properties with these attributes are few and far between; but it is precisely the scarcity of such properties that make them all the more desirable.
Many of the so-called high-end properties developed recently were enbloc developments of prime properties (in districts 9, 10,11) during the past two years. In many of these enbloc developments, there is really little value-add in terms of exclusivity or spaciousness. In fact, some of these properties were ordinary in design and downright small.
According Chesterton International research, the high prices of these properties were really the result of developers' high acquisition costs for these prime-location developments. Though these properties have been called high-end properties, they are in reality merely ordinary prime-location housing that do not really appeal to high-net-worth-individuals.
Knight Frank analyst said that not all high-end properties are of "grade A", some maybe of "grade A-minus". They provide condominium living that's do not necessarily meet high-end lifestyle. In a economic downturn, these "high-end" properties may not hold up as well as their other counter-parts. Developments like Sentosa Cove with a 99-lease may also not hold up as well. When supply of such properties increases, it depreciates their exclusivity that is needed to guarantee their values.
DTZ Tie Leung said that price decline in high-end properties is the result of low sale volume. Hence, owners will have to reduce their prices in order to sell their properties.
In the past, Singapore high-end properties are reckoned to be the "blue chips" of Singapore real estate, having withstood sharp price decline during crisis such as SARS. This maybe set to change with the current sub-prime crisis as both sales and prices of these high-end properties took the brunt of the economic turmoil.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Singapore High End Properties Merely High Priced
According to a news report from my paper today (shown below), some Singapore's high-end properties are merely high priced and not the sort of high-end properties pursued by high-net-worth-individuals.Chesterton International research pointed out that a high end property should have 3 attributes: (1) prime location, (2) exclusivity and (3) spaciousness with area of 3000 sq ft or more. These are the attributes that high-net-worth-individuals would look for in a high-end property. In land scarce Singapore, properties with these attributes are few and far between; but it is precisely the scarcity of such properties that make them all the more desirable.
Many of the so-called high-end properties developed recently were enbloc developments of prime properties (in districts 9, 10,11) during the past two years. In many of these enbloc developments, there is really little value-add in terms of exclusivity or spaciousness. In fact, some of these properties were ordinary in design and downright small.
According Chesterton International research, the high prices of these properties were really the result of developers' high acquisition costs for these prime-location developments. Though these properties have been called high-end properties, they are in reality merely ordinary prime-location housing that do not really appeal to high-net-worth-individuals.
Knight Frank analyst said that not all high-end properties are of "grade A", some maybe of "grade A-minus". They provide condominium living that's do not necessarily meet high-end lifestyle. In a economic downturn, these "high-end" properties may not hold up as well as their other counter-parts. Developments like Sentosa Cove with a 99-lease may also not hold up as well. When supply of such properties increases, it depreciates their exclusivity that is needed to guarantee their values.
DTZ Tie Leung said that price decline in high-end properties is the result of low sale volume. Hence, owners will have to reduce their prices in order to sell their properties.
In the past, Singapore high-end properties are reckoned to be the "blue chips" of Singapore real estate, having withstood sharp price decline during crisis such as SARS. This maybe set to change with the current sub-prime crisis as both sales and prices of these high-end properties took the brunt of the economic turmoil.
May also want to read:
Fire Sale: Owners Dump Condos
The days of Cheap, Easy Credits chasing after property is OVER!
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Wednesday, October 22, 2008
About this Blog
Singapore property developers are facing pressure from all sides - slowing sales, increasing difficulty in obtaining credit and mounting pressure to cut property prices in Singapore and in overseas markets such as China and Vietnam.
Deutsche Bank expects continued earnings downgrades on weak sales and average selling prices (ASPs) and the risk of provisions.
DBS Vickers who recently downgraded 6 property stocks including City Developments, CapitaLand and Ho Bee Investment, said asset devaluation is a concern.
Goldman Sachs acknowledged that the real estate market outlook is deteriorating at home and overseas - in markets such as China and Vietnam - for Singapore developers.
May also want to read:
The days of Cheap, Easy Credits chasing after property is OVER!
Fire Sale: Owners Dump Condos
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Singapore Property Developers may have to write down assets and make provisions
In the BT report today: "Lower profits for property developers expected", analysts continued to express pessimism over Singapore property developers' earnings.Singapore property developers are facing pressure from all sides - slowing sales, increasing difficulty in obtaining credit and mounting pressure to cut property prices in Singapore and in overseas markets such as China and Vietnam.
Deutsche Bank expects continued earnings downgrades on weak sales and average selling prices (ASPs) and the risk of provisions.
DBS Vickers who recently downgraded 6 property stocks including City Developments, CapitaLand and Ho Bee Investment, said asset devaluation is a concern.
Goldman Sachs acknowledged that the real estate market outlook is deteriorating at home and overseas - in markets such as China and Vietnam - for Singapore developers.
May also want to read:
The days of Cheap, Easy Credits chasing after property is OVER!
Fire Sale: Owners Dump Condos
When the bubble of greed and fear burst, guess who suffer?
Property Investment Tip: Don't put all your eggs in one basket
HDB Resales: West Sees Highest Price Increase
Tuesday, October 21, 2008
About this Blog
According to some property agents, some of their clients are willing to give as much as 20% discount or even more. Even with the hefty discount, these luxurious multi-million-dollar apartments are hardly a steal.
The situation is worse for those who opted for deferred payment schemes because some are no longer eligible for loans, and cannot meet payments once the developers issue the Temporary Occupation Permit (TOP). If they fail to sell off their properties before TOP, they may have to sell at even greater discounts.
The high-end property market seems to be hit the hardest, according to a property agent who said , 'My colleagues who specialise in high-end properties are not doing well. They do not have any transactions at all.'
Many of these high-end property speculators are stuck because they can neither sell their property, nor rent it out to cover their mortgages, as the rental market has slowed down a lot.
In response to the report, forumers at the Singapore Property Forum have these advice for property buyers:
"Not yet (time to buy), give it another 6 mth to 1 year, then you can see what "lelong lelong" is like ... bears be patient ... "
"Yes, be careful that all this lelong lelong shouts may not really be bargains at all .. for $1M you cannot even get a small studio ... look at the real investment value in terms of rental yield ... don't pay too much attention to the discount given .. after all, to begin with, these properties are really over-valued .. "
"Good advice - properties are still over-valued. Price has to come down more. "
"There are fire-sales already? 20% off. Although I am a bear but I didn't expect the drop to be quite so steep so fast. I was expecting a protracted argument with the bulls for at least 3-6 months or so and for prices to correct about 20-30% only in 2009.... OK, it looks like the crash may be bigger than expected. Would 50% be possible by end 2009? ... This is good for me because I can get a bigger unit with my budget after waiting for over a year but in a way, I feel bad for the people who have overcommitted on property."
"This is only the start of the mother of all meltdowns ... you've plenty to pick and choose from ..next year this time "
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Property Crash: Deferred-Payment-Scheme Property Buyers Not Eligible for Bank Loans Cannot Pay Developers Come TOP
The New Paper reported in the article "FIRE SALE: OWNERS DUMP CONDOS" October 20, 2008; that stock market losses have forced some property owners to resort to 'fire sales' for a quick return to liquidity.According to some property agents, some of their clients are willing to give as much as 20% discount or even more. Even with the hefty discount, these luxurious multi-million-dollar apartments are hardly a steal.
The situation is worse for those who opted for deferred payment schemes because some are no longer eligible for loans, and cannot meet payments once the developers issue the Temporary Occupation Permit (TOP). If they fail to sell off their properties before TOP, they may have to sell at even greater discounts.
The high-end property market seems to be hit the hardest, according to a property agent who said , 'My colleagues who specialise in high-end properties are not doing well. They do not have any transactions at all.'
Many of these high-end property speculators are stuck because they can neither sell their property, nor rent it out to cover their mortgages, as the rental market has slowed down a lot.
In response to the report, forumers at the Singapore Property Forum have these advice for property buyers:
"Not yet (time to buy), give it another 6 mth to 1 year, then you can see what "lelong lelong" is like ... bears be patient ... "
"Yes, be careful that all this lelong lelong shouts may not really be bargains at all .. for $1M you cannot even get a small studio ... look at the real investment value in terms of rental yield ... don't pay too much attention to the discount given .. after all, to begin with, these properties are really over-valued .. "
"Good advice - properties are still over-valued. Price has to come down more. "
"There are fire-sales already? 20% off. Although I am a bear but I didn't expect the drop to be quite so steep so fast. I was expecting a protracted argument with the bulls for at least 3-6 months or so and for prices to correct about 20-30% only in 2009.... OK, it looks like the crash may be bigger than expected. Would 50% be possible by end 2009? ... This is good for me because I can get a bigger unit with my budget after waiting for over a year but in a way, I feel bad for the people who have overcommitted on property."
"This is only the start of the mother of all meltdowns ... you've plenty to pick and choose from ..next year this time "
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Monday, October 20, 2008
About this Blog
Expectations initially on what the IRs could do to the Singapore economy were indeed very high, especially on the potential impact on the private property price. Property analysts had said it'd bring 40,000 jobs and the foreign talents needed would surely drive property price to yet another peak.
That, however, may be easier said than done.
To begin with, the Singapore Tourism Board is not confident of achieving this year’s target of 10.8 million visitors. Even if visitor numbers do pick up against the odds of an impending global recession, it remains to be seen whether these tourists will spend as freely as initially expected. The IRs have placed its bet in markets all over the world, the trouble is that almost each of these markets is in its downturn. The Shanghai index has fallen 69% from its peak in October 2007 and hit a 22-month closing low in September this year. Mumbai has not fared much better. Ultimately the success of the Singapore IRs will depend on tourist arrival which looks set to be hit by the global economic crisis.
In the light of the worsening global economic situation, analysts have cut back their projections on the IRs' contribution to Singapore to between 0.3% and 0.5% between 2010 and 2015.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Integrated Resorts (Spore IRs) may not live up to expectations
In the BT report "Dicing with a downturn", Saturday October 18, 2008; Singaporeans are again asked if the Singapore’s Integrated Resorts (IRs) can beat a global slowdown?Expectations initially on what the IRs could do to the Singapore economy were indeed very high, especially on the potential impact on the private property price. Property analysts had said it'd bring 40,000 jobs and the foreign talents needed would surely drive property price to yet another peak.
That, however, may be easier said than done.
To begin with, the Singapore Tourism Board is not confident of achieving this year’s target of 10.8 million visitors. Even if visitor numbers do pick up against the odds of an impending global recession, it remains to be seen whether these tourists will spend as freely as initially expected. The IRs have placed its bet in markets all over the world, the trouble is that almost each of these markets is in its downturn. The Shanghai index has fallen 69% from its peak in October 2007 and hit a 22-month closing low in September this year. Mumbai has not fared much better. Ultimately the success of the Singapore IRs will depend on tourist arrival which looks set to be hit by the global economic crisis.
In the light of the worsening global economic situation, analysts have cut back their projections on the IRs' contribution to Singapore to between 0.3% and 0.5% between 2010 and 2015.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Wednesday, October 15, 2008
About this Blog
HDB flats demand remains strong amid the US subprime crisis. In two recent launches from the Housing Development Board, there are over 10 times more applicants than HDB flats for sale.
On 10 Oct 2008, last Friday, the half-yearly sale of three-room premium, four-room and bigger flats saw 7036 applications for 683 units, yet the offer ran until Thursday.
From Oct 2 to Oct 8 2008, HDB put on sale 150 smaller flats including studio apartments and 2 to 3 room flats in Bukit Merah, Geylang, Jurong East, Sengkang, Ang Mo Kio and Marine Parade. There were 2426 applications for them; 582 for the studio apartments and 1844 for 2-3 room flats. This makes the supply of these smaller HDB flats about 16 times over-subscribed. Studio apartment prices range from $62,900 to $116,400. A 2-room flata goes for $74000 to $106300; and a 3-room flat $134500 to $275200.
The huge over-subscription seen for smaller HDB flats should not come as a surprise despite the gloomy economic outlook triggered by the US subprime crisis. In anticipation of the country's worsening recession which the Singapore government has warned may lead to retrenchment, many home-buyers are getting increasingly cautious about making their financial commitment. Besides, HDB prices have surged significantly over the last 2 years making bigger HDB flats increasingly less affordable and lower-income households may have no choice but to start with smaller flats.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
HDB Market Outlook: HDB Flats Sale Remains Strong Amid US Subprime Crisis
HDB Flats oversubscribed by more than 10 times
HDB flats demand remains strong amid the US subprime crisis. In two recent launches from the Housing Development Board, there are over 10 times more applicants than HDB flats for sale.
On 10 Oct 2008, last Friday, the half-yearly sale of three-room premium, four-room and bigger flats saw 7036 applications for 683 units, yet the offer ran until Thursday.
Smaller HDB Flats 16 times over-subscription as bigger HDB flats become unaffordable
From Oct 2 to Oct 8 2008, HDB put on sale 150 smaller flats including studio apartments and 2 to 3 room flats in Bukit Merah, Geylang, Jurong East, Sengkang, Ang Mo Kio and Marine Parade. There were 2426 applications for them; 582 for the studio apartments and 1844 for 2-3 room flats. This makes the supply of these smaller HDB flats about 16 times over-subscribed. Studio apartment prices range from $62,900 to $116,400. A 2-room flata goes for $74000 to $106300; and a 3-room flat $134500 to $275200.
The huge over-subscription seen for smaller HDB flats should not come as a surprise despite the gloomy economic outlook triggered by the US subprime crisis. In anticipation of the country's worsening recession which the Singapore government has warned may lead to retrenchment, many home-buyers are getting increasingly cautious about making their financial commitment. Besides, HDB prices have surged significantly over the last 2 years making bigger HDB flats increasingly less affordable and lower-income households may have no choice but to start with smaller flats.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
Thursday, October 9, 2008
About this Blog
In a report, Merrill investment house has cut the portfolio weighting for Singapore to 4.27% - below the benchmark weighting of 5.14%. This follows downgrades in property and banking sectors which together account for around half of market capital. The report adds that Singapore is exposed to the global slowdown more than other countries, as its exports-to-GDP ratio is the highest in the region
Merrill research house thinks any chance for a recovery in the second half of this year has disappeared with the deterioration in the economy. Citing demand weak and high inventories, rising debt cost and lower rentals ahead; as reasons for its gloomy outlook, it expects residential prices to fall by 10 per cent this year and 25 per cent in 2009.
Merill believes a sustained slowdown in the property market will impact loan growth in 2009. It expects loan growth to slow to mid-single digits from the current 26% year-on-year, while weaker capital markets and prevailing risk-aversion in the market for wealth management products will cause market-sensitive revenues to decline.
May also want to read:
Singapore Property Developers' Rising Debts
Singapore Economy in the face of Worst Crisis since 1930s
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Merrill: Downgrades Singapore property and banking sectors, said residential property prices to fall 35%
Merrill reduces Singapore to heavy underweight
In a report, Merrill investment house has cut the portfolio weighting for Singapore to 4.27% - below the benchmark weighting of 5.14%. This follows downgrades in property and banking sectors which together account for around half of market capital. The report adds that Singapore is exposed to the global slowdown more than other countries, as its exports-to-GDP ratio is the highest in the region
Merrill expects Singapore residential property prices to fall by 10% this year and 25% in 2009
Merrill research house thinks any chance for a recovery in the second half of this year has disappeared with the deterioration in the economy. Citing demand weak and high inventories, rising debt cost and lower rentals ahead; as reasons for its gloomy outlook, it expects residential prices to fall by 10 per cent this year and 25 per cent in 2009.
Merrill said Singapore Banking Sector loan growth and wealth management products to suffer
Merill believes a sustained slowdown in the property market will impact loan growth in 2009. It expects loan growth to slow to mid-single digits from the current 26% year-on-year, while weaker capital markets and prevailing risk-aversion in the market for wealth management products will cause market-sensitive revenues to decline.
May also want to read:
Singapore Property Developers' Rising Debts
Singapore Economy in the face of Worst Crisis since 1930s
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Wednesday, October 8, 2008
About this Blog
Property sales down 81.4 per cent from August 2007. (1720 Aug 2007->320 Aug 2008)
GDP down 50% (2007 7.5% --> 2008 likely 4% or less)
Property price only down 1.8%? Sustainable? The support base is eroding month after month. If (when) it collapses, it will likely be serious.
Nicholas Mak:
‘As (these) problems persisted, it was only a matter of time before overall private home prices started to fall as well. Whatever price gain was achieved in the first half of this year will be given up in H2, resulting in flat prices for the whole of 2008.’
CB Richard Ellis’ executive director Li Hiaw Ho.:
‘Prices, which are now under tremendous pressure, are likely to decline again in Q4,’
DTZ’s Ms Chua.:
Even the OCR is unlikely to be immune. ‘While it has been performing better, prices in that area will also drop if the economic slowdown continues,’
Posted by Ann in the Singapore Property Forum.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Private Property Price Under Tremendous Pressure
Stock market fallen 45%.(STI 3800->2100)Property sales down 81.4 per cent from August 2007. (1720 Aug 2007->320 Aug 2008)
GDP down 50% (2007 7.5% --> 2008 likely 4% or less)
Property price only down 1.8%? Sustainable? The support base is eroding month after month. If (when) it collapses, it will likely be serious.
Nicholas Mak:
‘As (these) problems persisted, it was only a matter of time before overall private home prices started to fall as well. Whatever price gain was achieved in the first half of this year will be given up in H2, resulting in flat prices for the whole of 2008.’
CB Richard Ellis’ executive director Li Hiaw Ho.:
‘Prices, which are now under tremendous pressure, are likely to decline again in Q4,’
DTZ’s Ms Chua.:
Even the OCR is unlikely to be immune. ‘While it has been performing better, prices in that area will also drop if the economic slowdown continues,’
Posted by Ann in the Singapore Property Forum.
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Sunday, October 5, 2008
About this Blog
According to Credit Suisse, by Q2 2008, gearing for big-cap developers rose to 52%, while for smaller developers 242%. It reckons that small-cap developers could put added pressure on the property market due to their high gearing. Credit Suisse says, 'This reinforces our belief that small developers will drive the price cuts in the near future in the primary markets, especially in the prime and mid-high end, as some of them have acquired prime sites at peak price.'
Credit Suisse expects writedowns by developers. CapitaLand, for instance, could write down as much as $200 million on its Farrer Court and Char Yong Gardens projects. This is based on an estimated breakeven price of $1429 psf and an estimated average selling price of $1280 psf for Farrer Court project. For Char Yong Gardens, the estimated breakeven figure is $2564 psf and the estimated average selling price $1960 psf. In 1998 when the property market crashed with the eruption of the Asian Financial Crisis, CapitaLand and Keppel Land wrote down between $900 million and $2.1 billion. Credit Suisse says they could 'do so again due to aggressive expansions and acquisitions, and substantial revaluation gains in recent years'.
In Credit Suisse's analysis, small-cap developers include Aspial, Koh Brothers, Heeton, Hiap Hoe, Ho Bee, Roxy, SC Global, Sim Lian, Sing Holdings, Soilbuild and Tee International.
For the full report, read: Write-downs could see property stocks slip further
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Singapore Property Developers Gearing Rose Sharply in Q2 2008, Write-downs Loom
Big developers gearing rose to 52%, while small developers 242%
According to Credit Suisse, by Q2 2008, gearing for big-cap developers rose to 52%, while for smaller developers 242%. It reckons that small-cap developers could put added pressure on the property market due to their high gearing. Credit Suisse says, 'This reinforces our belief that small developers will drive the price cuts in the near future in the primary markets, especially in the prime and mid-high end, as some of them have acquired prime sites at peak price.'
Write-downs signal developers' acceptance of price falls
Credit Suisse expects writedowns by developers. CapitaLand, for instance, could write down as much as $200 million on its Farrer Court and Char Yong Gardens projects. This is based on an estimated breakeven price of $1429 psf and an estimated average selling price of $1280 psf for Farrer Court project. For Char Yong Gardens, the estimated breakeven figure is $2564 psf and the estimated average selling price $1960 psf. In 1998 when the property market crashed with the eruption of the Asian Financial Crisis, CapitaLand and Keppel Land wrote down between $900 million and $2.1 billion. Credit Suisse says they could 'do so again due to aggressive expansions and acquisitions, and substantial revaluation gains in recent years'.
In Credit Suisse's analysis, small-cap developers include Aspial, Koh Brothers, Heeton, Hiap Hoe, Ho Bee, Roxy, SC Global, Sim Lian, Sing Holdings, Soilbuild and Tee International.
For the full report, read: Write-downs could see property stocks slip further
May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Thursday, October 2, 2008
About this Blog
Based on URA estimated price index of private residential property, prices fell from 177.5 points in the Q2 2008 to 174.3 points in the Q3 2008. This represents a decline of 1.8%, compared with the 0.2% increase in the Q2.
This may mark the beginning of the decline in Singapore private property price which has held up until now despite the eruption of the subprime crisis in Oct 2007. Going forward, the Singapore private property market is likely to get gloomier as the global financial crisis accelerates and the Singapore economy looks set to enter into a recession in Q3 2008 that will likely extend to 2009.
May also want to read:
History of Singapore Property 1960 to 2008
Write-downs signal developers acceptance of price fall
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
URA Q3 2008 Real Estate Statistics Flash: Private Property Price Fell
Private Property Price Fell 1.8%
Based on URA estimated price index of private residential property, prices fell from 177.5 points in the Q2 2008 to 174.3 points in the Q3 2008. This represents a decline of 1.8%, compared with the 0.2% increase in the Q2.
This may mark the beginning of the decline in Singapore private property price which has held up until now despite the eruption of the subprime crisis in Oct 2007. Going forward, the Singapore private property market is likely to get gloomier as the global financial crisis accelerates and the Singapore economy looks set to enter into a recession in Q3 2008 that will likely extend to 2009.
May also want to read:
History of Singapore Property 1960 to 2008
Write-downs signal developers acceptance of price fall
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
About this Blog
HDB’s flash estimate of the Q3 2008 Resale Price Index (RPI) is 137.4, an increase of 4.2% over the Q2 2008. Though slightly lower than the 4.5% increase in Q2 2008, the increase in HDB resale price is still very strong and reflects the continuous supply crunch in the HDB resale market. Up until now, the HDB resale market does not seem to suffer any subprime crisis. The strong demand has been driven largely by the "new citizens".
May also want to read:
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
HDB Q3 2008 Real Estate Statistics Flash: HDB Resale Price Rose 4.2% in Q3 2008
HDB Resale Price Rose 4.2% in Q3 2008
HDB’s flash estimate of the Q3 2008 Resale Price Index (RPI) is 137.4, an increase of 4.2% over the Q2 2008. Though slightly lower than the 4.5% increase in Q2 2008, the increase in HDB resale price is still very strong and reflects the continuous supply crunch in the HDB resale market. Up until now, the HDB resale market does not seem to suffer any subprime crisis. The strong demand has been driven largely by the "new citizens".
May also want to read:
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase
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