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Private-property prices fall sharply in core area


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  On 2/9/2012 at 3:29 AM, Davinci said:

You're right, 10% tax on investment is nothing for those from the mainland.

Those that are cheering about the price drop, obviously they're too poor to own any property currently.

What make them think they can afford should the price drop further?

 

Well said..

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i have also seen an article about why ppty prices will not drop.

 

can't really remember but it is about the number of new flats/condos over the next few years still not being able to cope with the pent up demand from the past 10years (from the increase in population)

Edited by Moneylove
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Why property prices will remain high

 

Updated: 20120131 ST -

 

THE report ('Record number of homes to be built, further easing prices'; last Saturday) quoted experts forecasting a steep decline in home prices of up to 15 per cent this year. This was based on a drop in transactions last month and a record supply of 77,089 uncompleted homes at the end of last year, of which 39,184 remained unsold.

 

And in the public housing market, an overwhelming supply of 25,000 units will be released, on top of last year's batch of 25,000 units, which is unprecedented in recent years.

 

Despite the large incoming supply and cooling measures, which will put pressure on home prices, an excessive price fall is unlikely because of current strong fundamentals.

 

What is also vital to consider is the equally huge demand backlog in private and public housing.

 

Between 1995 and 2010, there was strong population growth amid an undersupply of housing. This led to a dire imbalance, which resulted in robust home transactions and escalating prices in recent years.

 

Based on official data, the population of citizens and permanent residents expanded by 758,200 in the 1995 to 2010 period. But the increase in available private homes within the same period was only 128,896.

 

Working on 3.5 persons per household, 758,200 equates to 216,628 households. So, as of December 2010, there was a housing deficit of 87,732 (216,628 minus 128,896).

 

This strong pent-up demand can easily absorb the 77,089 uncompleted homes in the pipeline until 2015. And this is not taking into account the housing requirements of new immigrants, who may need about 20,000 to 30,000 homes from now until 2015.

 

Last year, 107,000 foreigners were added to the population. According to some experts, a 1.8 per cent population growth will most likely support home price growth in a favourable environment.

 

Currently, the property market is well supported by favourable key fundamentals such as low interest rates, low home vacancies, future population growth and the spillover effect from an imbalance in the resale HDB market.

 

All these factors will contribute to a positive impact on the residential property market in the coming years.

 

In the absence of a severe global economic recession accompanied by massive job losses, a sharp property price correction is highly unlikely this year.

 

Wong Toon Tuan

 

 

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  On 2/9/2012 at 3:33 AM, Moneylove said:

i have also seen an article about why ppty prices will not drop.

 

can't really remember but it is about the number of new flats/condos over the next few years still not being able to cope with the pent up demand from the past 10years (from the increase in population)

 

The so-called analysts' guess.

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  On 2/9/2012 at 3:02 AM, Old-driver said:

Take all these reports with a pinch of salt. If CCR is now averaging $1500, who would want to buy a LH, punggol at 1400 when the gap is so close?

 

Very true.. typical LH99 condos in matured heartlands still going around 1.2K psf.

 

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  On 2/9/2012 at 3:24 AM, Jj5599 said:

Punggol @ $1400 psf is larger units la....must compare apple with apple.

Punggol $1400psf larger unit, core area smaller unit? Dun understand what u mean

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  On 2/9/2012 at 3:49 AM, Jj5599 said:

People buy based on hype at the showflat...I'd like to see how many sub-sales there are in a 900+ unit project

Yes, when the devt TOP in 2-3 years time, there will be another scramble to get tenants... and i cant imagine a 900-unit -way fight

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  On 2/9/2012 at 3:43 AM, Rickster said:

Very true.. typical LH99 condos in matured heartlands still going around 1.2K psf.

So in essence, all prices are inter-twined. IF CCR comes down there will be pressure for OCR and RCR to also come down, which is not the case now. Why not buy a Holland, RV or Newton FH if anyone is willing to sell 1500 psf?

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  On 2/9/2012 at 3:43 AM, Rickster said:

Very true.. typical LH99 condos in matured heartlands still going around 1.2K psf.

If central location fall from $1800 to say $1400.. why wouldn't faraway neighbourhood LH99 fall from 1200psf to $1000 or even 800/900psf? Hdb value will also drop from 600k per unit to maybe 400k? Strange views of property prices from alot of potential property buyers in car forum..

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  On 2/9/2012 at 3:51 AM, Chucky2007 said:

Punggol $1400psf larger unit, core area smaller unit? Dun understand what u mean

 

Punggol $1400 psf for maybe say 1000 sq ft..u think in Shenton Way or Orchard u can get 1000 sq ft at $1400 psf?

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I would agree that valuation from valuars have dropped. In june11, my property valued at 1.4+mil, in nov, one valuar gave 1.6mil, last month 1 valuar give 1.35mil.. so much fluctuations.. but it wouldn't affect me as i dun intend to sell off anything below 1.45m as i bought it early 2010 for much cheaper price. Currently its rented out for 3900/mth so will just sell few years later while saving up the rental maybe 2-4years later. Its like buying bank share at $6 n share price now $9.. if share dividend if 7-8%, even if never sell off at $9 n it fall to $6 again also doesn't matter lah..

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  On 2/9/2012 at 4:01 AM, Jj5599 said:

Punggol $1400 psf for maybe say 1000 sq ft..u think in Shenton Way or Orchard u can get 1000 sq ft at $1400 psf?

$1400psf punggol property with size of 1000sqft cost $1.4mil.. what r u talking abt? U are saying $1.4mil cannot get property or no property at shenton cost $1400psf? If its later, u r right.. shenton way dun cost $1400psf.. if u mean $1.4mil cannot buy anything in cbd, then u r wrong.. can buy, just not 1000sf.. u say must compare apple to apple mah.. so i say i dun understand what u talking abt.. comparing cbd to punggol is not apple to apple..

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  On 2/9/2012 at 4:10 AM, Chucky2007 said:

I would agree that valuation from valuars have dropped. In june11, my property valued at 1.4+mil, in nov, one valuar gave 1.6mil, last month 1 valuar give 1.35mil.. so much fluctuations.. but it wouldn't affect me as i dun intend to sell off anything below 1.45m as i bought it early 2010 for much cheaper price. Currently its rented out for 3900/mth so will just sell few years later while saving up the rental maybe 2-4years later. Its like buying bank share at $6 n share price now $9.. if share dividend if 7-8%, even if never sell off at $9 n it fall to $6 again also doesn't matter lah..

 

i always wonder how valuers work?

 

like my case, the last done was still $x but the valuer values it $x -$y.

 

when market is rising they would have use the last done price of $x. but when sentiment creeping down they can introduce an arbitral estimate of $y to discount off the last done price? really interested to know how they arrive at $y.

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  On 2/9/2012 at 1:38 AM, Jj5599 said:

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

 

of cos la, if someone does that to me i wil also ask him fly kite. have to see location, unit and bla bla ma ^_^

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  On 2/9/2012 at 2:13 AM, Rickster said:

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

 

The newspaper are not there to cause panic. The news only reflect what is happening or already has happened.

Panic is caused by the ignorant and ill-informed...

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