View Full Version : Prices of resale private homes fall in Nov to lowest level this year
princess_morbucks
05-12-13, 10:29
http://www.straitstimes.com/breaking-news/money/story/prices-resale-private-homes-fall-nov-lowest-level-year-20131205
The private home resale market weakened yet again in November, with prices falling to their lowest point so far this year.
Resale prices of non-landed private homes sank 1.5 per cent in November from the preceding month, according to Singapore Real Estate Exchange (SRX) flash estimates out on Thursday.
This marks the third consecutive monthly drop in the SRX's overall resale price index.
The price drops were islandwide, led by a 2 per cent tumble in the city centre. Suburban regions saw a 0.9 per cent slide and the city fringe a 0.7 per cent decline.
princess_morbucks
05-12-13, 10:33
The price drops were islandwide, led by a 2 per cent tumble in the city centre. Suburban regions saw a 0.9 per cent slide and the city fringe a 0.7 per cent decline.
CCR resale drop the most, followed by OCR and RCR.
princess_morbucks
05-12-13, 10:35
Only 387 homes were resold.
According to a release, resale prices of non-landed private residential units softened by 1.5% in November 2013 (SRX Property Resale Index), marking a third consecutive monthly drop in the overall resale price index. This is also the lowest price level observed in this year, 4.1% down from the price peak in February;
Price movements across all three regions fell into the negative zone, led by a 2.0% drop in the Core Central Region (CCR). Rest of Central Region (RCR) and Outside Central Region (OCR) also saw price drops of 0.7% and 0.9% respectively.
An estimated 387 non-landed homes were resold in November, a 22.9% drop from October's 502 units sold. On a year-on-year basis, this represented a 62% drop from the 1,019 units transacted in November 2012;
- See more at: http://sbr.com.sg/residential-property/news/resale-prices-condo-units-eased-15-in-november?utm_source=twitterfeed&utm_medium=twitter#sthash.HUBf3iyT.dpuf
Only 387 homes were resold.
I dun know how many ppl realize: this is already worse than SARS time.
there are 20,000 agents in this island.
The tide is turning !
Cheers for the those MTB...
Cheers for the those MTB...
Resale price is low because the quality of the properties on sale is low too. People are selling the property that they don't want.
Does tat mean there would not be any more property measures to hit the market, since garment has achieved its mission??!
I dun know how many ppl realize: this is already worse than SARS time.
there are 20,000 agents in this island.
20,000 agents is waaaay too many , Coupled with all the remisiers who will also be out of work now due to the penny stocks fiascos there should be enough serving staff for all the restaurants now complaining they cant get any staff to work for them .....
Does tat mean there would not be any more property measures to hit the market, since garment has achieved its mission??!
I am sure that there will be no more measures... in fact they are already starting to unwind the measures starting with BTO supply next year...
Historical data will show that the measures have always been unwind too late. so hoefully they will take this into consideration...
I am guessing mid 2014 the ABDS will be remove for residents and PRs
Just checked the prices of some PCs of my interest in D4 and D5, most of the asking prices are at least 5% more than that in March and none of the recent transactions show any clues of price dropping.
Does any bro and sis know where the most trasctions with lower prices are located?
20,000 agents is waaaay too many , Coupled with all the remisiers who will also be out of work now due to the penny stocks fiascos there should be enough serving staff for all the restaurants now complaining they cant get any staff to work for them .....
This kind of market need so many agents meh??
I am sure that there will be no more measures... in fact they are already starting to unwind the measures starting with BTO supply next year...
Historical data will show that the measures have always been unwind too late. so hoefully they will take this into consideration...
I am guessing mid 2014 the ABDS will be remove for residents and PRs
the reason is that you cannot stop all the BTO and PC being built.... every unit that is finished will put further pressure on the prices....
you can remove all the measures but history always show the supply glut will usually drop the prices....
condoinvestor
05-12-13, 20:04
Prices will decline or flatten thanks to all the over regulation. Lots of investors losing interest in SG property market and looking elsewhere for better yields and gains.
US, UK and Japan in their radar........
the reason is that you cannot stop all the BTO and PC being built.... every unit that is finished will put further pressure on the prices....
you can remove all the measures but history always show the supply glut will usually drop the prices....
Actually its nver supply glut that drop prices but the following:
1. High Unemployment rates
2. Global Crisis - Financial, Economic, Political, Pandemic
3. High Interest Rates
4. Demographic changes
Can start bio-ing the projects that I have missed out. With some unwinding of cooling measures to engineer a soft landing, that will be a sweet spot.
Actually its nver supply glut that drop prices but the following:
1. High Unemployment rates
2. Global Crisis - Financial, Economic, Political, Pandemic
3. High Interest Rates
4. Demographic changes
Actually I don't think so. Most of the above affect mainly the Demand, when people decide to PURCHASE a house.
There is always another side of the equation which is the supply. Problem about the supply is that there is a 3 year LAG... If you study feedback theory, you will realise that oscillations occur when the feedback is too slow compared to the stimulus.
That is why prices tend to undershoot/overshoot. If you can built a house in a day, property prices will be much more stable.
Has the problem with the duplication of transaction data been addressed? As mentioned, recently TOP properties sold before the project wass completed might have both original transaction prices reflected as well as what the secondary buyers paid....thereby skewing the the data. e.g. properties such as Tree House that was TOP in October has probably at least 30% changing hands before TOP.
for the duplicate caveat entry from subsale, what is the price entered into the system?
thomastansb
06-12-13, 09:08
You need supply glut + economic crisis.
the reason is that you cannot stop all the BTO and PC being built.... every unit that is finished will put further pressure on the prices....
you can remove all the measures but history always show the supply glut will usually drop the prices....
Just checked the prices of some PCs of my interest in D4 and D5, most of the asking prices are at least 5% more than that in March and none of the recent transactions show any clues of price dropping.
Does any bro and sis know where the most trasctions with lower prices are located?
The asking prices are usually 5 to 10% higher than transacted prices.
princess_morbucks
06-12-13, 09:26
Just checked the prices of some PCs of my interest in D4 and D5, most of the asking prices are at least 5% more than that in March and none of the recent transactions show any clues of price dropping.
Does any bro and sis know where the most trasctions with lower prices are located?
You can go to URA website : www.ura.gov.sg
or squarefoot website : www.squarefoot.com.sg
for the duplicate caveat entry from subsale, what is the price entered into the system?
Original Developers' Prices and Resale prices which could be as high as 30% differences....this would skew the data....so a price drop may not actually be a drop as was pointed out in an article recently especially, I guess, on month where there are more of such cases...
if there's no recession, the supply glut will only mean the prices will hold or dip marginally ...
recession will hit you where you least expect ... but if everyone is expecting and hoping for recession now ...
http://m.sbr.com.sg/financial-services/news/heres-impact-fed-tapering-singapore-banks
You have been warned.
According to Barclays, fund flows could reverse when tapering begins and drive system liquidity tighter, leading to greater competition for deposits, higher funding costs, and slower loan growth.
Here's more:
Banks would attempt to pass on higher funding costs in the form of higher lending rates (even before benchmark rate hikes start).
The start of Fed tightening, signaled by the first benchmark interest rate hike, is likely to further increase the borrowing cost burden for corporates and households, dampen the property market, and lead to banks asset quality deterioration in the medium-term.
- See more at: http://m.sbr.com.sg/financial-services/news/heres-impact-fed-tapering-singapore-banks#sthash.TGY7PPBB.dpuf
Read all these articles with a BIG pinch of salt.
Very often, they don't materialize............ :beats-me-man:
http://m.sbr.com.sg/financial-services/news/heres-impact-fed-tapering-singapore-banks
You have been warned.
According to Barclays, fund flows could reverse when tapering begins and drive system liquidity tighter, leading to greater competition for deposits, higher funding costs, and slower loan growth.
Here's more:
Banks would attempt to pass on higher funding costs in the form of higher lending rates (even before benchmark rate hikes start).
The start of Fed tightening, signaled by the first benchmark interest rate hike, is likely to further increase the borrowing cost burden for corporates and households, dampen the property market, and lead to banks asset quality deterioration in the medium-term.
- See more at: http://m.sbr.com.sg/financial-services/news/heres-impact-fed-tapering-singapore-banks#sthash.TGY7PPBB.dpuf
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