Outlook for Singapore Property Market for year 2007

[Dennis Ng]

Outlook of Singapore Property Market:

As many would know by now, Singapore property market hit the bottom in early year 2004. Thereafter, property prices started recovering in year 2005 and picking up pace in year 2006.

In recent months, the high end property market has breached new record high again and again. If you think St Regis at S$2,500 psf was high, the highest price was achieved for Orchard Residence at S$4,000 psf. And I heard that in Hong Kong, the latest record high is S$6,000 psf. Please note that such record high prices might not be “representative” as typically the average selling price is lower than that.

Perhaps the more important question is:how is outlook for Singapore property market for year 2007 and year 2008?

My opinion is that property market in Singapore still going up in year 2007 and year 2008.

There might be a property crash in year 2009 or 2010 when IR is completed and many of the properties that are en-bloc today are released, thereby creating a over-supply situation.

Another “coincidence” I discovered is that past crashes occurred in year of the Ox. 1973’s Oil Crisis, 1985s Singapore first recession, 1997s Asian Crisis and year 2009’s ???

Please also take note that year 2008 is Olympics for China Beijing and Presidential Elections for U.S. Politicians in these 2 countries might do everything they can to “postpone” any disaster.

Interestingly, I can even find Freehold apartments priced at below S$500 psf, and are still 20% to 30% off 1997's peak prices. Please note that high end properties have already breached 1997's peak prices and making new highs just like our stock market.

Similar to stock markets, after "blue chip" (high end properties) rise, the next wave would the the middle tier and lower tier properties and it is not inconceiveable for them to move back to 1997's prices, or 20% to 30% upside from current prices.

Current prices are between year 2000 to year 2002's price levels for such properties.

The key to buying a property is buy what is affordable to you and it makes sense to get Prior Bank Loan approval before you start shopping for a property. We can help you get Free Prior Bank Loan approval with NO obligations and fees whatsoever.

My opinion is that property market in Singapore still going up in year 2007 and year 2008.

Your opinion can certainly differ.

[Dennis Ng]

From UOB-Kayhian on property sector...

The en bloc frenzy in the central region now, with Leedon Heights fetching $835m and Farrer Court seeking $1.5b, is pushing asking prices for collective sales in the central region to record highs. Given the high prices and dwindling number of properties with en bloc potential in the central region, developers may shift their focus outside the region. This may spark a trend of developing luxury properties in popular non-central regions such as the East Coast stretch (districts 15 and 16), which appeal to expatriates, and will benefit the early entrants.

The buoyant outlook for Singapore’s high-end residential market is expected to persist for the next few years as Singapore continues to position itself as a global financial centre and attractive business, health and leisure destination.

High levels of foreign interest and the growing affluence of Singaporeans are key catalysts for the high-end residential market. Singapore is becoming an increasingly favoured cosmopolitan destination for mid- to high-level executives due to its environmental friendliness, stable political
environment, attractive business opportunities and great lifestyle. The recent leasing agreement for office premises at the new Marina Bay Financial Centre endorsed by UK-based Standard Chartered Bank is one of the largest deals ever in the history of Singapore and is a clear signal of more mid- to high-level expatriates coming to Singapore, which will lead to higher demand for luxury housing.

With prices reaching S$4000 psf, the high-end residential market in Singapore is beginning to challenge those of New York and Hong Kong in
terms of the highest average unit prices psf quoted. We believe the growing acceptance of Singapore as a choice destination in which to live and work will fuel prices further because property prices in Singapore are still lower than those of Hong Kong.

Our discussion with some developers reveals that more and more expatriates are relocating from Hong Kong to Singapore due to the similar but less costly set-up and, more importantly, lower levels of pollution here.

[Dennis Ng]

Stock Markets have corrected but Singapore Propert Market is still hot. Developers managed to sell more properties above S$4,000 psf in July 2007 than June 2007.

Cheers!

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

DEVELOPERS managed to sell 72 homes for more than $4,000 per square foot last month - four-and-a-half times the 16 homes they sold at this price in June, latest figures show.

According to Knight Frank's analysis of official data released yesterday, the big jump came as a result of the launch of Scotts Square by Wheelock Properties (Singapore).

Sixty-four of the total 150 units in the project sold by the developer in July were in the above $4,000 to $4,500 psf price band, while the other 86 units were sold in the above $3,500 to $4,000 psf range.

The median price for the 150 units sold at Scotts Square was $3,959 psf, with the lowest price being $3,638 psf and the highest $4,428 psf, according to the Urban Redevelopment Authority's (URA) data on the number of homes in uncompleted projects launched and sold by developers in July.

Other projects that saw primary market sales at above $4,000 psf last month include The Orchard Residences, The Marq On Paterson Hill and Cliveden at Grange.

Projects that saw primary market sales at above $4,000 psf last month included The Orchard Residences, The Marq On Paterson Hill and Cliveden at Grange.

'These were the same developments that contributed to the number of units that were sold above $4,000 psf in June,' Knight Frank said.