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View Full Version : Fire sale alert: Home prices to plunge 10% as developers struggle to clear units


princess_morbucks
10-12-14, 10:45
Prices will reach levels last seen in 2009.

Developers will be the first to blink in the battle for lower residential property prices. According to Macquarie Research, private home prices will plunge by as much as 10% next year as developers struggle to clear and increasing number of unsold inventory.

Macquarie estimates that developers will have to clear around 12,000 units next year, causing prices to sink to levels last seen in 2009.

“Developers typically hold a certain level of inventory and tolerate a certain amount of unsold units, giving them the opportunity to capture the property up-cycle. However, current “inventory”, measured by the ratio of the total number of unsold and unlaunched units with sales licences as a % of near term supply (total unsold and unlaunched units) is too high,” noted Macquarie.

Macquarie further estimates that prices may inch up by 1% in 2016, which should alleviate margin pressure. Some cooling measures may also be relaxed especially if the government calls for an early election in 2015.
- See more at: http://sbr.com.sg/residential-property/in-focus/fire-sale-alert-home-prices-plunge-10-developers-struggle-clear-over-1#sthash.AroCwG48.CCfuvcsi.dpuf
bargain hunter
10-12-14, 11:06
the signs point to a soft landing in 2015 and 2016 instead of a massive oversupply in 2017?
Allthepies
10-12-14, 11:40
First time buyers, quick buy : )
bargain hunter
10-12-14, 14:14
developers quickly cut then first time buyers will quickly buy mah.


First time buyers, quick buy : )
kellogs
10-12-14, 14:34
waiting for the cut before the buy!
bargain hunter
10-12-14, 18:42
bro, u are not a first time buyer and have already benefitted from such "cuts" before. :wink-new:

the next round of cut will be in OCR liao. that should be the good one for the first timers to move in.


waiting for the cut before the buy!
teddybear
10-12-14, 19:19
OCR crashing will benefit HDB upgraders!
Isn't that what the HDB upgraders is waiting for and why Govt introduce all those property cooling measures?


bro, u are not a first time buyer and have already benefitted from such "cuts" before. :wink-new:

the next round of cut will be in OCR liao. that should be the good one for the first timers to move in.
4wheels
10-12-14, 19:19
2nd timer will jump in to if there is a fire sales
kellogs
10-12-14, 20:12
haha bro actually with the current market condition - the price which I paid for DUO might not be discounted hahaha ... I have been keeping bullets waiting for good buy but the current price is just too crazy ... hopefully I can get some good buy around river valley area, near the new stadium or Dhoby Gaut ...



bro, u are not a first time buyer and have already benefitted from such "cuts" before. :wink-new:

the next round of cut will be in OCR liao. that should be the good one for the first timers to move in.
bargain hunter
10-12-14, 20:20
sophia residence so many cheap buys passed liao, u don't like?


haha bro actually with the current market condition - the price which I paid for DUO might not be discounted hahaha ... I have been keeping bullets waiting for good buy but the current price is just too crazy ... hopefully I can get some good buy around river valley area, near the new stadium or Dhoby Gaut ...