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Private-property prices fall sharply in core area


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http://business.asiaone.com/Business/My%2B...209-326719.html

 

Private-property prices fall sharply in core area

 

This suggests that some home buyers became more cautious after the additional buyer's stamp duty took effect in December.

 

Thu, Feb 09, 2012

my paper

 

By Reico Wong

 

THE property cooling measures introduced late last year have started to show a significant impact on the housing market.

 

Prices of private apartments and condominiums have dropped by as much as :o10.2 per cent :o in the Core Central Region since the fourth quarter, suggesting that home buyers became more cautious after the additional buyer's stamp duty took effect in December.

 

The average selling price of such units has fallen to $1,600 per sq ft (psf) from $1,781 psf in the fourth quarter, according to data released yesterday by the Singapore Real Estate Exchange (SRX).

 

The rental prices of apartments and condominiums have also been affected, with those of properties in the non-central areas hit the hardest.

 

The rental rates of units outside the central region have fallen 2.3 per cent since the fourth quarter, from $2.99 psf to $2.92 psf.

 

However, rents for apartments and condominiums in the Core Central Region are still climbing. They have risen 1.3 per cent since the fourth quarter, from $4.68 psf to $4.74 psf.

 

This is likely to be just the start of a downtrend, the heads of property agencies said yesterday at a housing forum organised by SRX. They added, however, that a price crash is unlikely.

 

Private-property prices are expected to drop between 10 and 15 per cent this year, said Dennis Wee Group, HSR Property Group, PropNex, DTZ, ERA Realty and C&H Properties.

 

Next >>

 

 

Prices of Housing Board resale flats are likely to ease between 3 and 5 per cent this year, but could also fall by as much as 10 per cent if the euro-zone debt crisis worsens, the companies said.

 

Mr Albert Lu, chief executive of C&H, said population growth - especially that of permanent residents and new citizens - is slowing, leading to a fall in housing demand.

 

He added that HDB prices have doubled over the past six years and are unlikely to climb steeply soon, given the large number of Build-To-Order (BTO) flats being pumped into the market.

 

He said the attractive prices of BTOs would draw buyers from the resale market following remarks by National Development Minister Khaw Boon Wan that he is looking into letting second- timers buy BTO flats.

 

When second-timers buy BTO flats, they will have to sell their flats, which would further "dampen demand", said Mr Lu.

 

PropNex CEO Mohamed Ismail said buyers now enjoy more choice, with some 5,000 executive-condominium (EC) units slated for construction this year and "a continued supply of government land sales".

 

There will be "supply, supply and more supply, be it of HDB flats, EC units or mass-market properties", he said.

 

"I would not be surprised if public- housing prices remain the same, five years from now," he said, adding that they might be only about 10 per cent higher at most.

 

<< Previous Next >>

 

 

Purchases of private property by foreigners reached historic highs last year, hitting 31 per cent, a two-fold increase from 10 years ago, according to another report released yesterday by Savills.

 

Mainland Chinese were the top buyers, making up 28 per cent of all purchases by foreigners, with Indonesians accounting for just 18 per cent of all foreign purchases.

 

Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee, said: "Singapore is still one of the best cities in Asia to put your money. If prices drop about 10 per cent and conditions are favourable, buyers will definitely come back."

 

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So i can print out this article and go shopping for private properties in the so called core districts and expect a 10% discount?

 

:huh: i dont know. they say for $181 discount one: :huh:

 

The average selling price of such units has fallen to $1,600 per sq ft (psf) from $1,781 psf in the fourth quarter, according to data released yesterday by the Singapore Real Estate Exchange (SRX).

 

 

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last time have news saying that private property will drop 30%, i print out that article when i was buying and seller don't want to give 1% discount also

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last time have news saying that private property will drop 30%, i print out that article when i was buying and seller don't want to give 1% discount also

 

:ph34r: looks like newspaper hao siao one :ph34r: how can they anyhow print! <_< wait cause panic selling how? :ph34r:

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izit? still looks the same to me. some even up their price. :wacko:

 

dont know whether is it got outliers in past transactions which pulled down the transacted psf :huh:

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So i can print out this article and go shopping for private properties in the so called core districts and expect a 10% discount?

sure you can [thumbsup]

 

please print also this one.

 

http://business.asiaone.com/Business/My%2B...208-326657.html

 

Residential property prices ripe for correction: Credo

 

SINGAPORE - THE odds seem stacked against residential property prices in Singapore, historical data compiled by Credo Real Estate shows.

 

Notably, negative residential price corrections were reflected in the years 2008, 2000 and 1983 following several quarters of price moderation to levels close to zero - a pattern which became apparent in the final quarter of 2011.

 

 

Slowing to a meagre 0.2 per cent from 1.3 per cent in the previous quarter, the residential property price index for the fourth quarter of 2011 seemed supportive of the view that current values are nearing their apex.

 

More worryingly, the fall in prices tended to coincide with periods of negative GDP (gross domestic product) growth or deteriorating economic conditions, which in most cases evolved into recessions.

 

Said Credo Real Estate's executive director and head of research and consultancy, Ong Teck Hui: 'If a recession occurs this year, it will certainly lead to a correction in the residential market. Even if a recession does not occur this year but economic conditions deteriorate ultimately leading to a recession, the market is also likely to correct.'

 

The debate over when the correction will take place has been going on for a while, with many analysts arguing that property prices would weaken this year as a result of economic uncertainty, mounting supply and cooling measures by the government. However, the situation could look a lot brighter if Singapore manages to escape with a mild slowdown.

 

'If economic conditions turn out to be better than expected, we are likely to see a fairly stable market, albeit with uneven performance amongst different market segments and with price adjustments within a narrow range,' said Mr Ong.

 

In particular, the suburban primary mass market could stay 'relatively healthy' due to firm underlying demand should a recession be averted, though the secondary market, which is experiencing weaker volume, could face a wave of price moderations.

 

Slower activity in the prime residential segment is also expected as foreign buyers take time to come to terms with the additional buyer's stamp duty (ABSD).

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Neutral Newbie

i tried last week, the seller gave me the finger and say he would use the 100,000 k to 200000k discount and pay a gal $10,000 per month for 20 months before selling the house and by the end of 20 months the market might be better or just use the house to keep a long term mistress then sell it to me. <_<

Edited by The_man3
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buy <1500psf ... try to sell at >1700psf ... now testing water at 1600psf

still a lot of meat in the profit margain [laugh]

Edited by Wt_know
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:ph34r: looks like newspaper hao siao one :ph34r: how can they anyhow print! <_< wait cause panic selling how? :ph34r:

 

Actually thats the whole idea... the higher powers are controlling the market now. [gossip]

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