Supply Increases, Demand Might Dip for HDB Flats & Condo

[Dennis Ng]

29 Jan 2010 - Those who are rushing to buy HDB Resale Flats should take note of this latest announcement by Minister Mah Bow Tan that HDB might review rules to weed out speculators and rental investors, this might cause a dip in the demand for HDB Resale Flats.

Another thing to note is that HDB Resale Flats' prices are now at Historical High. HDB recently also announced that it is ready to build more HDB flats to meet demand, and with total of over 20,000 units of condos to be completed in year 2011 and year 2012, supply of properties (both HDB and Private condos) are going up in the next 2 years, if supply goes up and demand comes down, prices are likely to come down as well.

Looks like "High Home Prices" is one of the main concerns of Singaporeans. My personal hunch is that a General Election is coming soon, and they would like to keep prices stable or even slightly lower to win the Young Singaporeans' votes.

Regards.

Dennis Ng, http://www.HousingLoanSG.com

P.S. Above information is just sharing my personal comments and opinion and is NOT meant as investment advice to buy/sell/hold properties nor property stocks.

[dragon]

29 Jan 2010 - Those who are rushing to buy HDB Resale Flats should take note of this latest announcement by Minister Mah Bow Tan that HDB might review rules to weed out speculators and rental investors, this might cause a dip in the demand for HDB Resale Flats.

Another thing to note is that HDB Resale Flats' prices are now at Historical High. HDB recently also announced that it is ready to build more HDB flats to meet demand, and with total of over 20,000 units of condos to be completed in year 2011 and year 2012, supply of properties (both HDB and Private condos) are going up in the next 2 years, if supply goes up and demand comes down, prices are likely to come down as well.

Looks like "High Home Prices" is one of the main concerns of Singaporeans. My personal hunch is that a General Election is coming soon, and they would like to keep prices stable or even slightly lower to win the Young Singaporeans' votes.

Regards.

Dennis Ng, http://www.HousingLoanSG.com

P.S. Above information is just sharing my personal comments and opinion and is NOT meant as investment advice to buy/sell/hold properties nor property stocks.

Hi Dennis, it seems that when the property market is bad, Developers have a habit of postponing their new condo launches to a later year, such that new condo supply is kept limited when property prices are low. Is there any website or source that shows the estimated statistics in the next few years assuming Developers deliberately postpone till they can't postpone anymore? Thanx!

[Dennis Ng]

29 Jan 2010 - Those who are rushing to buy HDB Resale Flats should take note of this latest announcement by Minister Mah Bow Tan that HDB might review rules to weed out speculators and rental investors, this might cause a dip in the demand for HDB Resale Flats.

Another thing to note is that HDB Resale Flats' prices are now at Historical High. HDB recently also announced that it is ready to build more HDB flats to meet demand, and with total of over 20,000 units of condos to be completed in year 2011 and year 2012, supply of properties (both HDB and Private condos) are going up in the next 2 years, if supply goes up and demand comes down, prices are likely to come down as well.

Looks like "High Home Prices" is one of the main concerns of Singaporeans. My personal hunch is that a General Election is coming soon, and they would like to keep prices stable or even slightly lower to win the Young Singaporeans' votes.

Regards.

Dennis Ng, http://www.HousingLoanSG.com

P.S. Above information is just sharing my personal comments and opinion and is NOT meant as investment advice to buy/sell/hold properties nor property stocks.

Hi Dennis, it seems that when the property market is bad, Developers have a habit of postponing their new condo launches to a later year, such that new condo supply is kept limited when property prices are low. Is there any website or source that shows the estimated statistics in the next few years assuming Developers deliberately postpone till they can't postpone anymore? Thanx!

yes, this statistics is actually at ura website. www.ura.gov.sg

Originally, year 2010 there are more than 10,000 condos to be completed, but developers tried to delay and now only about 5,000 to be completed in year 2010. However, it means that yer 2011 and year 2012 now has over 10,000 units EACH YEAR to be completed.

A normal year condo sales is about 8,000 units, so over 10,000 units if coupled with slow down in economy might result in price falling then. Of course, no one has a crystal ball to see the future.

[dragon]

29 Jan 2010 - Those who are rushing to buy HDB Resale Flats should take note of this latest announcement by Minister Mah Bow Tan that HDB might review rules to weed out speculators and rental investors, this might cause a dip in the demand for HDB Resale Flats.

Another thing to note is that HDB Resale Flats' prices are now at Historical High. HDB recently also announced that it is ready to build more HDB flats to meet demand, and with total of over 20,000 units of condos to be completed in year 2011 and year 2012, supply of properties (both HDB and Private condos) are going up in the next 2 years, if supply goes up and demand comes down, prices are likely to come down as well.

Looks like "High Home Prices" is one of the main concerns of Singaporeans. My personal hunch is that a General Election is coming soon, and they would like to keep prices stable or even slightly lower to win the Young Singaporeans' votes.

Regards.

Dennis Ng, http://www.HousingLoanSG.com

P.S. Above information is just sharing my personal comments and opinion and is NOT meant as investment advice to buy/sell/hold properties nor property stocks.

Hi Dennis, it seems that when the property market is bad, Developers have a habit of postponing their new condo launches to a later year, such that new condo supply is kept limited when property prices are low. Is there any website or source that shows the estimated statistics in the next few years assuming Developers deliberately postpone till they can't postpone anymore? Thanx!

yes, this statistics is actually at ura website. www.ura.gov.sg

Originally, year 2010 there are more than 10,000 condos to be completed, but developers tried to delay and now only about 5,000 to be completed in year 2010. However, it means that yer 2011 and year 2012 now has over 10,000 units EACH YEAR to be completed.

A normal year condo sales is about 8,000 units, so over 10,000 units if coupled with slow down in economy might result in price falling then. Of course, no one has a crystal ball to see the future.

Thanx for the clarification, Dennis!