Showing posts with label 4. HDB Market Outlook. Show all posts
Showing posts with label 4. HDB Market Outlook. Show all posts
Friday, January 2, 2009
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
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
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
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
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
About this Blog
Mr 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
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
Monday, December 8, 2008
About this Blog
New HDB flats are subsidised and priced below those of resale flats in the same area. But there has been a shift in the market cycle, and the HDB resale market is seen heading south because of the current recession. ‘This is more or less the peak for HDB flat prices,’ said C&H Realty managing director Albert Lu.
While new flats have always been a safe bet, some who bought or are buying them now may find themselves with a paper loss soon.
The situation is similar to that in the previous 1996 peak. Back then, those who bought new flats in the new town of Sengkang found themselves ‘under water’ a few years later, said Mr Eugene Lim, an associate director of ERA Asia Pacific. The prices they paid were higher than those of resale flats in the area.
Experts say that as the HDB resale market slowly inches down, this scenario may present itself again. ‘Those who buy new flats when resale prices are high may have a higher probability of losing out,’ said Mr Leong Sze Hian, president of the Society of Financial Service Professionals.
‘In contrast, those who buy when resale prices are low may have a higher probability of a price appreciation. So, maybe a balanced cost-approach pricing may be better instead of market subsidy.’
The balanced cost-approach is based on pricing the cost of building the flats. It will give rise to more stable prices that reflect inflation and wage increases, he explained.
Buyers of new build-to-order flats will have to wait about three years, by which time the market may have changed completely. They may end up in a position where their new flat’s price is similar or higher than resale prices, MrLu said.
Experts, though, are quick to add that it will be only a paper loss, if any. ‘If you don’t sell your flat, you will not see any loss,’ explained ERA’s Mr Lim. ‘There is a downside risk to buying a new flat, but it is very small.’
In any case, buyers of new flats have to occupy their units for at least five years before they can sell them. Many often continue to live in them for years after that, experts say.
In the next five to 10 years, if the world economy strengthens, the next peak for HDB flat prices may be higher than where they are right now, said Mr Lu.
There is, therefore, the possibility of a capital appreciation, but any gains will likely be smaller than before, since today’s buyers are paying a lot more for their HDB flats.
‘It’s no longer the $100,000 to $200,000 types of gains that were easily attainable in the past,’ said Mr Lim.
Mr Lu said that for those seeking a new flat to live in, it would not really matter when they buy. If they were to buy high and sell low, they would also be able to buy a replacement home at a low price, he pointed out.
Ultimately, new HDB flats remain the cheapest form of housing in Singapore.
Still, buyers have to work out their sums first.
Regardless of the economic situation or any potential capital appreciation gains, the key is to buy a flat that one can afford, experts advise.
Extracted from Sunday Times - 7 Dec 2008
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
HDB New Flats not a safe bet as Resale HDB prices fall
It used to be that one could never lose out buying a new HDB flat from the Government. It was a sure-win bet to a better life for many as they sold their flats for windfall gains after five years, as allowed under HDB rules, and upgraded to newer or bigger and nicer homes. This, however, may no longer be the case these days.New HDB flats are subsidised and priced below those of resale flats in the same area. But there has been a shift in the market cycle, and the HDB resale market is seen heading south because of the current recession. ‘This is more or less the peak for HDB flat prices,’ said C&H Realty managing director Albert Lu.
New HDB flats not a safe bet as seen in 1996 Peak
While new flats have always been a safe bet, some who bought or are buying them now may find themselves with a paper loss soon.
The situation is similar to that in the previous 1996 peak. Back then, those who bought new flats in the new town of Sengkang found themselves ‘under water’ a few years later, said Mr Eugene Lim, an associate director of ERA Asia Pacific. The prices they paid were higher than those of resale flats in the area.
Experts say that as the HDB resale market slowly inches down, this scenario may present itself again. ‘Those who buy new flats when resale prices are high may have a higher probability of losing out,’ said Mr Leong Sze Hian, president of the Society of Financial Service Professionals.
‘In contrast, those who buy when resale prices are low may have a higher probability of a price appreciation. So, maybe a balanced cost-approach pricing may be better instead of market subsidy.’
Cost-Approach Pricing for HDB New flats
The balanced cost-approach is based on pricing the cost of building the flats. It will give rise to more stable prices that reflect inflation and wage increases, he explained.
Buyers of new build-to-order flats will have to wait about three years, by which time the market may have changed completely. They may end up in a position where their new flat’s price is similar or higher than resale prices, MrLu said.
Experts, though, are quick to add that it will be only a paper loss, if any. ‘If you don’t sell your flat, you will not see any loss,’ explained ERA’s Mr Lim. ‘There is a downside risk to buying a new flat, but it is very small.’
In any case, buyers of new flats have to occupy their units for at least five years before they can sell them. Many often continue to live in them for years after that, experts say.
HDB flats capital appreciation likely be smaller than in the past
In the next five to 10 years, if the world economy strengthens, the next peak for HDB flat prices may be higher than where they are right now, said Mr Lu.
There is, therefore, the possibility of a capital appreciation, but any gains will likely be smaller than before, since today’s buyers are paying a lot more for their HDB flats.
‘It’s no longer the $100,000 to $200,000 types of gains that were easily attainable in the past,’ said Mr Lim.
Mr Lu said that for those seeking a new flat to live in, it would not really matter when they buy. If they were to buy high and sell low, they would also be able to buy a replacement home at a low price, he pointed out.
Ultimately, new HDB flats remain the cheapest form of housing in Singapore.
Still, buyers have to work out their sums first.
Regardless of the economic situation or any potential capital appreciation gains, the key is to buy a flat that one can afford, experts advise.
Extracted from Sunday Times - 7 Dec 2008
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
Friday, December 5, 2008
About this Blog
According to industry players, the wait could be at least another nine months — if prices do come down at all — no thanks to the slew of foreigners and private property downgraders eyeing the HDB rental and resale markets respectively, which indirectly pushes up the prices of new HDB flats.
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“Whenever you have a recession, the first to be hit would be the private property market. So, a lot of people will start downgrading from private homes to HDB flats.”, said Dennis Wee Group director Chris Koh.
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HDB’s “market-based” pricing approach for new flats takes into account several factors, including a project’s location, its individual attributes and the prevailing market conditions. The new flats are sold according to the prices they would fetch on the resale market minus the Government’s subsidy.
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And in the first nine months of the year, HDB’s resale price index rose 12.4 per cent, rising by 4.2 per cent in the third quarter.
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While HDB resale prices are expected to stabilise in the year ahead, the recession has yet to hit the man-in-the-street, saidMr Koh. A case in point: The latest Built-To-Order project Punggol Arcadia was more than three times oversubscribed, despite having five-room flats going for as much as $356,000 to $416,000.
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Still, ERA Asia-Pacific’s assistant vice-president Eugene Lim noticed in recent weeks that prospective home buyers are now trying to get more bang for their buck. Said Mr Lim: “If your house is not near an MRT station, people are offering you prices that match the valuation or even lower.”
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National Development Minister Mah Bow Tan explained in 2002 that prices of new HDB flats rise and fall more slowly than do resale flat prices. This was necessary to maintain a stable property market and protect the value of the flats, the minister said.
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Prior to last year’s property bull-run, which saw HDB’s resale price index matching its previous peak of 1996, resale flat prices fell by 30 per cent in the aftermath of the 1997 Asian financial crisis. But prices for new flats dropped just 10 to 15 per cent.
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Some market experts believe it could be the same story this time round — with prices of new flats in the outlying areas expected to fall faster.
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But Mr Lim, for one, doubted that prices of new HDB flats would fall at all, given the perpetually high demand for housing here.
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Reiterating how HDB “followed the market and moved prices downwards” in the aftermath of the Asian financial crisis a decade ago, a HDB spokesperson reiterated that the Government “remains committed to ensure that HDB flats are affordable to the vast majority of our citizen families, especially young married couples and the lower-income households”.
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Still, in view of the current economic climate, the spokesperson advised flat seekers to “buy a flat within their means, bearing in mind how their future earnings may be impacted”.
.
The spokesperson added: “Given the current economic climate ... They may have to start off with something more modest in size or less than ideal in location if prudence calls.”
Going by past recessions, it could take nine more months before prices fall
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
HDB Resale Price may take another 9 months before falling
Going by past recessions, it could take nine more months before prices fall, said a news report.According to industry players, the wait could be at least another nine months — if prices do come down at all — no thanks to the slew of foreigners and private property downgraders eyeing the HDB rental and resale markets respectively, which indirectly pushes up the prices of new HDB flats.
.
“Whenever you have a recession, the first to be hit would be the private property market. So, a lot of people will start downgrading from private homes to HDB flats.”, said Dennis Wee Group director Chris Koh.
.
HDB’s “market-based” pricing approach for new flats takes into account several factors, including a project’s location, its individual attributes and the prevailing market conditions. The new flats are sold according to the prices they would fetch on the resale market minus the Government’s subsidy.
.
And in the first nine months of the year, HDB’s resale price index rose 12.4 per cent, rising by 4.2 per cent in the third quarter.
.
While HDB resale prices are expected to stabilise in the year ahead, the recession has yet to hit the man-in-the-street, saidMr Koh. A case in point: The latest Built-To-Order project Punggol Arcadia was more than three times oversubscribed, despite having five-room flats going for as much as $356,000 to $416,000.
.
Still, ERA Asia-Pacific’s assistant vice-president Eugene Lim noticed in recent weeks that prospective home buyers are now trying to get more bang for their buck. Said Mr Lim: “If your house is not near an MRT station, people are offering you prices that match the valuation or even lower.”
.
National Development Minister Mah Bow Tan explained in 2002 that prices of new HDB flats rise and fall more slowly than do resale flat prices. This was necessary to maintain a stable property market and protect the value of the flats, the minister said.
.
Prior to last year’s property bull-run, which saw HDB’s resale price index matching its previous peak of 1996, resale flat prices fell by 30 per cent in the aftermath of the 1997 Asian financial crisis. But prices for new flats dropped just 10 to 15 per cent.
.
Some market experts believe it could be the same story this time round — with prices of new flats in the outlying areas expected to fall faster.
.
But Mr Lim, for one, doubted that prices of new HDB flats would fall at all, given the perpetually high demand for housing here.
.
Reiterating how HDB “followed the market and moved prices downwards” in the aftermath of the Asian financial crisis a decade ago, a HDB spokesperson reiterated that the Government “remains committed to ensure that HDB flats are affordable to the vast majority of our citizen families, especially young married couples and the lower-income households”.
.
Still, in view of the current economic climate, the spokesperson advised flat seekers to “buy a flat within their means, bearing in mind how their future earnings may be impacted”.
.
The spokesperson added: “Given the current economic climate ... They may have to start off with something more modest in size or less than ideal in location if prudence calls.”
Going by past recessions, it could take nine more months before prices fall
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
Monday, December 1, 2008
About this Blog
Buyers paying less cash for HDB resale flats
by Sunday Times, November 30, 2008, HDB resale flats buyers are paying less cash above valuation (COV). This may be yet another sign that the financial crisis would eventually impact all market segments. The private property market is at a standstill and prices have fallen as the global financial crisis scares buyers away.
While HDB resale flat market remains active and prices are still fairly strong, there are increasing signs that this segment of the market is no longer immune to the economic slowdown.
While prices have not dropped, the cash amount that buyers typically pay on top of the flat’s valuation has fallen more significantly, according to market analysts. ‘In view of the current sentiment, HDB resale flat valuations should stay flat going forward. If COV is coming down, prices will eventually come down.’ said Mr Eugene Lim, associate director of ERA Asia Pacific
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
HDB Resale Flats Buyers Paying Less COV
According to the report,Buyers paying less cash for HDB resale flats
by Sunday Times, November 30, 2008, HDB resale flats buyers are paying less cash above valuation (COV). This may be yet another sign that the financial crisis would eventually impact all market segments. The private property market is at a standstill and prices have fallen as the global financial crisis scares buyers away.
While HDB resale flat market remains active and prices are still fairly strong, there are increasing signs that this segment of the market is no longer immune to the economic slowdown.
While prices have not dropped, the cash amount that buyers typically pay on top of the flat’s valuation has fallen more significantly, according to market analysts. ‘In view of the current sentiment, HDB resale flat valuations should stay flat going forward. If COV is coming down, prices will eventually come down.’ said Mr Eugene Lim, associate director of ERA Asia Pacific
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, November 19, 2008
About this Blog
It stressed that long-term measures to help these owners manage their mortgage payment is the best solution, and that compulsory acquisition of the flat is a last resort.
As of October 2008, some 33,000 flat owners owed HDB arrears of three months or more. They make up less than 8 per cent of the 420,000 households with outstanding HDB loans.
Giving this update in Parliament on Tuesday, Parliamentary Secretary for National Development Mohamad Maliki Osman said home owners should buy within their means.
But he recognised that there are some who are affected by the economic downturn and one option for them is to downgrade to a smaller unit.
More 2 and 3-room HDB flats will be coming on stream next year to cope with the growing demand for smaller flats.
Dr Maliki also said heavily subsidised rental flats should be given to those who are in dire need. - CNA
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
HDB Mortgage Defaults Up 33,000 in October: More 2-room HDB flats to be built
The Housing and Development Board (HDB) will continue to keep tabs on flat owners who default on their HDB mortgage payments.It stressed that long-term measures to help these owners manage their mortgage payment is the best solution, and that compulsory acquisition of the flat is a last resort.
As of October 2008, some 33,000 flat owners owed HDB arrears of three months or more. They make up less than 8 per cent of the 420,000 households with outstanding HDB loans.
Giving this update in Parliament on Tuesday, Parliamentary Secretary for National Development Mohamad Maliki Osman said home owners should buy within their means.
But he recognised that there are some who are affected by the economic downturn and one option for them is to downgrade to a smaller unit.
More 2 and 3-room HDB flats will be coming on stream next year to cope with the growing demand for smaller flats.
Dr Maliki also said heavily subsidised rental flats should be given to those who are in dire need. - CNA
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
Friday, November 14, 2008
About this Blog
And on 29 Oct in ST, the developer had said
'We're very confident that there'll be a strong demand for our flats, which are new and attractively priced compared to resale flats in Bishan.'
Well, lets see how many percent of applications actually convert finally into real sales. If there's one thing previous DBSS launches have taught us, do not count your chickens before they hatch.
Nov 13, 2008
Higher-end HDB mkt cooling? (I'd replace the "?" with a ".")
By Jessica Cheam
THE higher-end of the public housing market is showing its first signs of cooling, with the Housing Board's latest condo-style flats receiving a lacklustre response.
With only one day left to the closing of applications, Natura Loft at Bishan has drawn about 600 applications for 480 flats, its developer told The Straits Times yesterday. This is in stark contrast to the previous three projects built under HDB's design, build and sell scheme (DBSS), which attracted overwhelming demand.
The first project, Premiere @ Tampines, was a hit, with 6,000 applications for 616 homes; City View @ Boon Keng had 3,500 buyers vying for 714 flats while the third project, Park Central at Ang Mo Kio, drew 2,300 bids for 578 units.
Industry watchers say Natura Loft is a victim of the latest turn in market sentiment, which has seen companies retrenching staff and economies worldwide entering recession.
'Announcements such as DBS Bank laying off 900 jobs has caught everyone off-guard, and local sentiment has turned very bad,' said Mr Colin Tan, head of research and consultancy at Chesterton Suntec International.
Other analysts such as ERA Asia-Pacific's assistant vice-president Eugene Lim said Natura Loft's pricing was 'on the high side'. (Hmm, you don't say! Well, someone has to send the developers this message)
'The pricey units were launched at a time when the market is jittery, making a double whammy for the project,' he said.
Posted by Ann in the Singapore Property Forum
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
Higher-end HDB market cooling: Natura Loft at Bishan sees far fewer applicants
I'm not surprised, are you?And on 29 Oct in ST, the developer had said
'We're very confident that there'll be a strong demand for our flats, which are new and attractively priced compared to resale flats in Bishan.'
Well, lets see how many percent of applications actually convert finally into real sales. If there's one thing previous DBSS launches have taught us, do not count your chickens before they hatch.
Nov 13, 2008
Higher-end HDB mkt cooling? (I'd replace the "?" with a ".")
By Jessica Cheam
THE higher-end of the public housing market is showing its first signs of cooling, with the Housing Board's latest condo-style flats receiving a lacklustre response.
With only one day left to the closing of applications, Natura Loft at Bishan has drawn about 600 applications for 480 flats, its developer told The Straits Times yesterday. This is in stark contrast to the previous three projects built under HDB's design, build and sell scheme (DBSS), which attracted overwhelming demand.
The first project, Premiere @ Tampines, was a hit, with 6,000 applications for 616 homes; City View @ Boon Keng had 3,500 buyers vying for 714 flats while the third project, Park Central at Ang Mo Kio, drew 2,300 bids for 578 units.
Industry watchers say Natura Loft is a victim of the latest turn in market sentiment, which has seen companies retrenching staff and economies worldwide entering recession.
'Announcements such as DBS Bank laying off 900 jobs has caught everyone off-guard, and local sentiment has turned very bad,' said Mr Colin Tan, head of research and consultancy at Chesterton Suntec International.
Other analysts such as ERA Asia-Pacific's assistant vice-president Eugene Lim said Natura Loft's pricing was 'on the high side'. (Hmm, you don't say! Well, someone has to send the developers this message)
'The pricey units were launched at a time when the market is jittery, making a double whammy for the project,' he said.
Posted by Ann in the Singapore Property Forum
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
About this Blog
In February this year, HDB also launched Punggol Spring, which is twice the distance away from the MRT/LRT station. Launch prices of Punggol Spring were about 20 per cent lower in comparison to Punggol Arcadia.
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
HDB BTO Punggol Arcadia Priced Higher than Punggol Sapphire
The Housing and Development Board (HDB) has launched the 750-unit Punggol Arcadia with five-room flats going for as much as $356,000 to $416,000. This represents an increase of between 7-8% compared to the nearby Punggol Sapphire which HDB launched six months ago. Punggol Arcadia and Punggol Sapphire are both are about the same distance to the Punggol MRT/LRT station.In February this year, HDB also launched Punggol Spring, which is twice the distance away from the MRT/LRT station. Launch prices of Punggol Spring were about 20 per cent lower in comparison to Punggol Arcadia.
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
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
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
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 2, 2008
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
Tuesday, September 23, 2008
About this Blog
‘There has been an increase in demand for new flats,’ HDB chief executive Tay Kim Poh said at a press briefing on the board’s annual report. ‘We have been ramping up the building programme.’ Mr Tay also said that HDB will adjust supply for 2009 accordingly to meet demand. In the light of rising construction costs, he reaffirmed HDB’s commitment to keep HDB flats affordable. According to HDB, a 4-room flat can cost about $300,000 to develop today, taking into account land, building and other costs. This is higher than the subsidised price of a 4-room flat sold by HDB at $200K to $260K.
To ensure that the basic housing needs of people are met, PropNex’s Mr Ismail said that HDBs may have to review certain policies, such as the income ceiling for HDB flat applicants, and perhaps even abolishing the resale levy.’
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
HDB BTO Flats see Strong Demand
THE strong demand in the HDB market saw bookings of HDB's Build-To-Order (BTO) flats increase by 49%, and the number of unsold HDB flats reduce from 3500 to 1500. HDB will offer 8400 new Build-To-Order (BTO) flats in 2008, compared to the 6000 in 2007 and 2400 in 2006. Of the 8400 HDB flats slated for 2008, about 5000 have already been launched.‘There has been an increase in demand for new flats,’ HDB chief executive Tay Kim Poh said at a press briefing on the board’s annual report. ‘We have been ramping up the building programme.’ Mr Tay also said that HDB will adjust supply for 2009 accordingly to meet demand. In the light of rising construction costs, he reaffirmed HDB’s commitment to keep HDB flats affordable. According to HDB, a 4-room flat can cost about $300,000 to develop today, taking into account land, building and other costs. This is higher than the subsidised price of a 4-room flat sold by HDB at $200K to $260K.
To ensure that the basic housing needs of people are met, PropNex’s Mr Ismail said that HDBs may have to review certain policies, such as the income ceiling for HDB flat applicants, and perhaps even abolishing the resale levy.’
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
Friday, September 19, 2008
About this Blog
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
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
Treelodge@punggol, first HDB econ-precinct, is 90% taken-up
Treelodge@punggol, the first HDB econ-precinct in Singapore, are 90% taken-up. The 3 to 5 room HDB flats in the precint are sold for $139K - $383K. Treelodge@punggol will be completed in 2011.May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Thursday, September 4, 2008
About this Blog
Jurong East has always been viewed as a rather lacklustre "ulu" estate with just over 22,000 homes. Even neighbouring Bukit Batok and Clementi have over 32,000 and 24,000 homes respectively.
However, in April, National Development Minister Mah Bow Tan unveiled in its masterplan to transform Jurong East into the new Jurong Lake District which is sited to be the largest commercial hub outside the Central Business District.
Chief executive of Propnex, Mohd Ismail, said that he expects to see, in the initial stages, a marginal 5-10% price increase in the properties in Juorng East. However, upon completion of the many facilities and amenities, and as more businesses gradually shift their operations to the new Jurong Gateway precinct, we should even be able to see price increases of 30% to 50%.
As a comparison: For the first quarter of the year, the median resale prices for five-room HDB flats in Bukit Merah and Toa Payoh — estates that are considerably close to town — were $585,000 and $538,000 respectively, while the median resale price for a five-room HDB flat in Jurong East was just $386,000.
We can also expect to see a spillover effect from the revamped Jurong Lake District in the surrounding hinterland towns of Bukit Batok, Clementi and Jurong West.
Mr Mohd Ismail strongly encourages Jurong East residents to hold on to their properties due to the strong prospects for a high resale price upon completion and establishment of the Jurong Lake District.
May also want to read:
HDB Resales: West Sees Highest Price Increase
Jurong East Lake District Good Property Investment Prospect
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Jurong East Lake District Transformation could translate into High Resale Property Prices for Jurong East, Bukit Batok, Clementi and Jurong West
Todayonline reported that the Jurong East Lake District transformation could translate into high resale prices for properties in Jurong East and the neighbouring towns including Bukit Batok, Clementi and Jurong WestJurong East has always been viewed as a rather lacklustre "ulu" estate with just over 22,000 homes. Even neighbouring Bukit Batok and Clementi have over 32,000 and 24,000 homes respectively.
However, in April, National Development Minister Mah Bow Tan unveiled in its masterplan to transform Jurong East into the new Jurong Lake District which is sited to be the largest commercial hub outside the Central Business District.
Chief executive of Propnex, Mohd Ismail, said that he expects to see, in the initial stages, a marginal 5-10% price increase in the properties in Juorng East. However, upon completion of the many facilities and amenities, and as more businesses gradually shift their operations to the new Jurong Gateway precinct, we should even be able to see price increases of 30% to 50%.
As a comparison: For the first quarter of the year, the median resale prices for five-room HDB flats in Bukit Merah and Toa Payoh — estates that are considerably close to town — were $585,000 and $538,000 respectively, while the median resale price for a five-room HDB flat in Jurong East was just $386,000.
We can also expect to see a spillover effect from the revamped Jurong Lake District in the surrounding hinterland towns of Bukit Batok, Clementi and Jurong West.
Mr Mohd Ismail strongly encourages Jurong East residents to hold on to their properties due to the strong prospects for a high resale price upon completion and establishment of the Jurong Lake District.
May also want to read:
HDB Resales: West Sees Highest Price Increase
Jurong East Lake District Good Property Investment Prospect
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
Sunday, August 3, 2008
About this Blog
Developers however argued that the current price level is realistic. In fact, reports said industry players (not known who exactly though) expect prices at the next condo-style public housing project in Bishan to be even higher.
The psychological pressure exerted on would-be buyers is obvious: Buy now, price is going up! That's an old trick in the property market, isn't it? But it works; and still works so very well.
I'd urge prudent buyers to distant themselves from such emotions and make a calculated decision based on logical financial anaylsis.
Recalling my own encounter with greed and fear in the 80s' and 90s' property cycles, I'd say they're extremely convincing and seductive.
This is my testimony against greed and fear: Because I saw through the game of greed and fear in the property market; because I bought within my means at each stage of my life; and because as I waited, my affordability grew and the market finally crashed (and it must), I eventually bought freehold properties at less than half the price that my friends paid at the peak of the property cycle and I did not need any mortgage.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
More Cautious Buyers at Park Central @ AMK : DBSS at Bishan Price higher ?
New reports show that buyers at the recent launch of HDB third DBSS, Park Central at Ang Mo Kio to be a lot more cautious; and they have good reasons to be. The Singapore economy in 2008 is obviously slowing and the government has told Singaporeans to "be prepared for a downturn". Sales of City View at Boon Keng has been less brisk than expected. There're still some 22% unsold units to date which clearly reflects the price-resistance among buyers.Developers however argued that the current price level is realistic. In fact, reports said industry players (not known who exactly though) expect prices at the next condo-style public housing project in Bishan to be even higher.
The psychological pressure exerted on would-be buyers is obvious: Buy now, price is going up! That's an old trick in the property market, isn't it? But it works; and still works so very well.
I'd urge prudent buyers to distant themselves from such emotions and make a calculated decision based on logical financial anaylsis.
Recalling my own encounter with greed and fear in the 80s' and 90s' property cycles, I'd say they're extremely convincing and seductive.
This is my testimony against greed and fear: Because I saw through the game of greed and fear in the property market; because I bought within my means at each stage of my life; and because as I waited, my affordability grew and the market finally crashed (and it must), I eventually bought freehold properties at less than half the price that my friends paid at the peak of the property cycle and I did not need any mortgage.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Tuesday, July 29, 2008
About this Blog
The following are some views expressed in the Singapore Property Forum:
Forumer 1:
The IR effect on condo demand is only 8,800+ units on an optimistic estimate. The holdings of investors plus projects in the pipeline far exceed that number.
Most of the IR workers will be staying in HDB. If you want to catch them, go invest in HDB.
Forumer 2:
Very sharp analysis there. Good job!!
8,800 is a very optimistic estimate base on 5 foreigners per household. I think it's more like 6-10 per household cos those are the limits set by HDB which should reduce housing demand to half or less.
Don't forget that shrinking growth in other sectors will also reduce number of foreigners. The actual demand will indeed be much smaller than this estimate.
IR will itself take time to become profitable. In fact, it's a big risk itself.
For F1, it has benefited our neighbours. So how cost competitive can we be??
Take an honest, rational look. Can the jobs generated justify the current property prices for the mass market?
High end properties would depend if we can attract the really super-rich. It's a high risk bet.
Most of the jobs would support HDB demand, as the report said. It's a commonsensical thing that speculators failed to see during the heat of 2007. They assumed that all these IR jobs would support private property prices at $1000psf - $1500psf.
The mid-range executives may be paid $4K-$5K. Can they afford the mass condos rent of $4-$5K to justify condos of >$1M to give rental yield of 4-5%?? They'd probably also squeeze into HDB flats, unless landlords of mass condos sponsor them which landlords will have to as vacancy rate increases, rather than leave their condos vacant.
Nobody can deny that IR will add value to our economy but up to this point, I think it's largely over-blown.
We must also not let this sort of exuberence cause us to overlook the risks of prolonged global economic slowdown. Would-be-buyers should have their feet planted in the ground. For one thing, it does not look like the IR will create a lot of well-paying jobs for Singaporeans to help them pay for the skyhigh property price.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Marina Bay Integrated Resorts Estimated Housing Demand ~8800 units with most going to HDB flats rather than Private Properties
According to an estimate by Ku Swee Yong, director of marketing and business development at Savills Singapore; the minimum requirement for housing demand generated by the IRs would translate to 8,800 units between 2009 and 2010.The following are some views expressed in the Singapore Property Forum:
Forumer 1:
The IR effect on condo demand is only 8,800+ units on an optimistic estimate. The holdings of investors plus projects in the pipeline far exceed that number.
Most of the IR workers will be staying in HDB. If you want to catch them, go invest in HDB.
Forumer 2:
Very sharp analysis there. Good job!!
8,800 is a very optimistic estimate base on 5 foreigners per household. I think it's more like 6-10 per household cos those are the limits set by HDB which should reduce housing demand to half or less.
Don't forget that shrinking growth in other sectors will also reduce number of foreigners. The actual demand will indeed be much smaller than this estimate.
IR will itself take time to become profitable. In fact, it's a big risk itself.
For F1, it has benefited our neighbours. So how cost competitive can we be??
Take an honest, rational look. Can the jobs generated justify the current property prices for the mass market?
High end properties would depend if we can attract the really super-rich. It's a high risk bet.
Most of the jobs would support HDB demand, as the report said. It's a commonsensical thing that speculators failed to see during the heat of 2007. They assumed that all these IR jobs would support private property prices at $1000psf - $1500psf.
The mid-range executives may be paid $4K-$5K. Can they afford the mass condos rent of $4-$5K to justify condos of >$1M to give rental yield of 4-5%?? They'd probably also squeeze into HDB flats, unless landlords of mass condos sponsor them which landlords will have to as vacancy rate increases, rather than leave their condos vacant.
Nobody can deny that IR will add value to our economy but up to this point, I think it's largely over-blown.
We must also not let this sort of exuberence cause us to overlook the risks of prolonged global economic slowdown. Would-be-buyers should have their feet planted in the ground. For one thing, it does not look like the IR will create a lot of well-paying jobs for Singaporeans to help them pay for the skyhigh property price.
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
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