Cooling measures loom as resale home prices rise

[reporter2]

http://www.straitstimes.com/PrimeNews/Story/STIStory_808897.html

Cooling measures loom as resale home prices rise

Published on Jun 9, 2012

By Esther Teo, Property Reporter


BOTH private and public resale homes have attracted higher prices in the past two months, a report has shown, stoking concerns that more cooling measures might be on the cards.

Preliminary data collated by major property agencies in Singapore found that the average price for all private non-landed resale transactions in April and May was $1,131 per sq ft (psf).

This uptick comes after average prices dipped from $1,072 psf in the fourth quarter last year to $1,051 psf in the first three months of the year, according to data from the Singapore Real Estate Exchange (SRX).

Resale volumes have also recovered after a poor first quarter and are set to post their best showing in a year, SRX said in its monthly report released yesterday.

Buyers could be flocking to the resale market because prices are more attractive than for new homes, consultants said.

Median prices for resale Housing Board (HDB) flats also rose by 2 per cent from the quarter before, with Bukit Panjang lodging the highest gain of 7.6 per cent.

SRX collates transactions by major property agencies, accounting for about 85 per cent of resale deals in the market.

Consultants note that while a rebound in the resale market might set some alarm bells ringing, more time is needed to determine if the trend is a sustained one.

The unfolding euro zone crisis must also be taken into account.

OrangeTee research and consultancy head Tan Kok Keong said: 'External conditions are quite bad so measures, if any, are likely to be less harsh... It is better to wait till the end of the quarter at least to get a clearer idea of where the market is headed.'

Official data for the second quarter will be out next month.

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[richwang]

If the Government is watching leading indicators (such as rental) as close as the forummers, they should start to think about heating measures now.

Thanks,
Richard

[phantom_opera]

is true, HDB resale price has gone up ...

[radha08]

If the Government is watching leading indicators (such as rental) as close as the forummers, they should start to think about heating measures now.

Thanks,
Richard

what can they do they launch more people buy more they issue CM people got CCM(counter CM) measures....:doh:..i know the article in todays Straits Times talked about oversupply of rental properties...and how its beggining to effect rental yields...but this message has been conveyed OVER and OVER again over the past few quarters...people still want to buy thinking rental is a GIVEN...what to do...:scared-2:

[House]

If the Government is watching leading indicators (such as rental) as close as the forummers, they should start to think about heating measures now.

Thanks,
Richard

LTV = 99.9%
$1 dollar DOWN PAYMENT !!!

:D :D :D

[richwang]

For who die die must buy property now, they can consider Iskanda.
Of course 30% discount is not enough, but how about 70% discount?
... or you could get 80% discount!

Thanks,
Richard

[kane]

They are analysing the issue from the wrong end. Resale was crushed by the cooling measures. The only reason it has come back to life is because new sale prices have escalated higher. And the measures haven't specifically cooled new sale by much. And if they cool new sale by too much, our construction industry could come to a standstill.

[phantom_opera]

They are analysing the issue from the wrong end. Resale was crushed by the cooling measures. The only reason it has come back to life is because new sale prices have escalated higher. And the measures haven't specifically cooled new sale by much. And if they cool new sale by too much, our construction industry could come to a standstill.

Not only that, resale HDB still up like 5% every year, rental also up 5-10%, 3r HDB or MM / or small 2br is all that PMETs can afford now

[bakasa2002]

Even as KBW rushes to build bto, they will take 3 yr to build n 5 yr to fulfil mop, so maybe that's why ppl still buying resale...

[kane]

New sale premium over resale was 20-25%. Then it became 30-35%. And in some cases 50%. At that sort of gap, people would naturally turn to resale cos it's hard to justify that big a gap even afyer factoring in reno cost and lease depreciation.

[richwang]

Now the availability problem is becoming true affordability problem.

Let's give it another 3-5 years, I believe the HDB rental will come down.

Thanks,
Richard

[phantom_opera]

Affordability is relative, increasingly, Singapore is for the upper middle class / rich ppl only

If family income is 12k, 4k rental is ok

[kane]

It's really not rocket science, just need to compare nett new family formation and net new inflow of population against housing growth.

[richwang]

ICA should have that number.

Any publish web site to get those statistics?

I am more interested to see whether it is indeed dropping in the past weeks/months.

Thanks,
Richard

[radha08]

If the Government is watching leading indicators (such as rental) as close as the forummers, they should start to think about heating measures now.

Thanks,
Richard

bro u one of the most polite guys in this forum always say thanks...:cheers5:

[TheOnlyGayInTheVillage]

bro u one of the most polite guys in this forum always say thanks...:cheers5:

I think its a default sig he using...