Property Prices rise again in April 2011

This discussion thread is for forum members to discuss and learn and share with one another on anything related to the Property Market.

Moderators: alvin, learner, Dennis Ng

Platinum Forum Contributor
Posts: 218
Joined: Mon May 02, 2011 5:37 am

Post by jfoo2 »

I think it is super CLEAR that sentiments towards private housing has changed. Especially after the General Elections.

Without the GE, I feel the picture will be very different (for housing).
Dennis Ng
Site Admin
Posts: 9781
Joined: Tue Nov 29, 2005 7:16 am
Location: Singapore

Resale Home Prices Rising at Faster Rate...

Post by Dennis Ng »

Jun 29, 2011
Resale home prices rising at faster rate: DTZ
Sellers taking cue from new launches as impact of cooling steps wanes
By Esther Teo, Property Reporter

RESALE home prices continue to head north in tandem with pricier new launches in the second quarter, as the latest DTZ Research report shows steeper gains across all segments of the property market.

Industry experts cite various reasons for this upward price trend as the effect of January's cooling measures begins to wane.

DTZ's head of South-east Asia research, Ms Chua Chor Hoon, said asking prices of resale homes are continuing to trend upwards as sellers benchmark their home prices against those of new launches.

But with more caution in the market due to the expectation of housing policy reviews after the elections and as price resistance increases, the pace of price gains is likely to moderate for the rest of the year, she added.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, added that the resale market is driven mainly by owner-occupiers, and they are now back in the market after the initial knee-jerk reaction to the cooling measures.

Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said the overall price increase could be partly attributed to buyers snapping up resale properties, as such homes are cheaper alternatives to new sales.

Resale homes are also more attractive to some buyers as they offer immediate occupation or an instant rental income stream.

'The overall 2.5 per cent May price increase, however, does not reflect that the previous round of measures was ineffective, as this increase follows after consecutive months of subdued price gains following the cooling measures in January,' he added.

Suburban leasehold condos saw the largest jump, with prices rising by 3.9 per cent in the second quarter, from the previous quarter. This is a significant increase from the 0.8 per cent seen in the first quarter of the year, DTZ's analysis found.

Freehold condos in the prime districts of 9, 10 and 11 and luxury condos also registered higher quarterly resale prices, with a 3.3 per cent and 1.7 per cent gain respectively, against the rather flat prices in the previous quarter.

A monthly index by the National University of Singapore (NUS) has found resale prices of completed non-landed homes strengthening by 2.5 per cent last month compared with April's prices.

This also represented a faster pace of price increase as April's gain was a more subdued 1.1 per cent. While central home prices rose by 3.5 per cent, non-central home prices inched up by 1.7 per cent.

Cushman's Mr Ong viewed the higher price increases for central homes in the NUS index as possibly 'encouraging rather than cautionary' as this is the only segment with prices yet to return to their previous peak in 2008.

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng
Site Admin
Posts: 9781
Joined: Tue Nov 29, 2005 7:16 am
Location: Singapore

Post by Dennis Ng »

23 Jun 2011

Private home prices rise but at slower pace
By Esther Teo, Property Reporter

PRIVATE home prices in Singapore have inched up to a new record high though the once rapid rate of increase has again moderated as buyers turn cautious.

Analysts say their caution is the result of higher asking prices, uncertainty over possible new government property measures and a slowing economy.

Prices in the sector rose 2 per cent in the April to June quarter, slowing from 2.2 per cent in the previous quarter, according to Urban Redevelopment Authority figures released yesterday.

It was the seventh straight quarter of moderation. Landed property posted the biggest gains of 3.6 per cent.

This overall 2 per cent gain is, however, a slight rise from the 1.9 per cent flash estimate released earlier this month, indicating that sales recorded in the last two weeks of the quarter continued to show some price increases.

The slowing rises suggest a stabilised property market, analysts say, with runaway prices unlikely now that the number of new private home sales has fallen in recent months as well.

Total sales volume in the primary and secondary - or resale - market has also fallen 18 per cent in the six months to June from the same period last year.

'Home buyers have begun to resist the higher asking prices by sellers and they have also become more selective. There are some uncertainties as they await clearer housing policy directions from the Government,' said ERA Realty key executive Eugene Lim.

Tighter lending rules and sellers' stamp duty of up to 16 per cent have helped weed out speculative purchases.

The Housing Board's move to ramp up new flat supply has also helped calm demand and thus prices, said PropNex chief executive Mohamed Ismail.

Across the various segments - whether landed homes or condos, on the city fringe or suburban areas - prices largely slowed their pace of increase as well.

One exception was homes in the city centre, which saw values gain 1.6 per cent in the second quarter - quicker than the 1.1 per cent rise in the previous quarter.

The outlook for home hunters is positive, with experts predicting a continued price slowdown for the rest of the year.

They cautioned that while the residential market is still driven by low interest rates and ample funds, sentiment will be tempered by the record home supply in the pipeline, tepid global economic conditions and expected housing policy shifts.

PropNex's Mr Ismail said that data from his firm's transactions showed median per sq ft (psf) prices already falling across the island this month.

He expects prices to edge up a further 3 per cent to 4 per cent in the second half of the year.

Mr Png Poh Soon, Knight Frank's head of research and consultancy, expects an 8 per cent to 10 per cent jump in prices for the full year, significantly slower than the 18 per cent advance in prices last year, though still healthy by any standards.

Developers, however, may find themselves in a delicate situation in the light of the general slowdown and uncertain market sentiment, he added.

'Good quality developments will continue to attract demand, but they must be priced attractively to entice home buyers especially with the prospects of a quiet Hungry Ghost Month looming ahead.'

Private home rental growth also held steady with a slight increase of 1.3 per cent - marginally faster than the 1.2 per cent uptick in the previous quarter - led by rental growths in the semi-detached and terraced landed housing segments.

The broad-based softening also affected other property sectors, with the office and industrial segments mostly taking a hit. Gains in rents and prices mainly held steady or moderated quarter-on-quarter.

Cushman & Wakefield senior manager of Asia-Pacific research Ong Kah Seng said this reflected the effect of an economic slowdown and the increased price sensitivity of tenants as business costs rose.

Office rents, for example, inched up 1.5 per cent from 5.4 per cent the three months before, while prices rose at a slower pace of 3.6 per cent from 4.9 per cent.

'The office property sector is expected to achieve continued leasing and rental growth momentum, although (tenants) may be increasingly realistic in the face of modest economic growth, increased business costs and more space options,' Mr Ong added.

Price growth for industrial space eased to 5.5 per cent from 8.3 per cent, while rents slowed to 5.7 per cent from 6.3 per cent.

Shop space values, however, gathered pace to 1.1 per cent from 0.5 per cent in the first quarter as rents held steady with a 0.8 per cent increase.

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Post Reply