View Full Version : MAS flags risks from 'excessive exuberance' in property market
Amber Woods
30-11-17, 12:05
THE Monetary Authority of Singapore (MAS) sounded a note of caution on the property market on Thursday, saying that recent market developments such as the en-bloc rage and rising land prices could pose risks to the market's stability.
Market players should therefore take a medium-term view of supply-demand dynamics and act with caution, it said in its 2017 Financial Stability Review.
Its concerns stemmed from a potential mis-match between the supply of private housing and occupation demand, as the development of en bloc and Government Land Sales (GLS) sites is expected to add another 20,000 new units in the next one to two years. This is more than double the current supply in the pipeline, if the 16,031 unsold uncompleted units with planning approvals as at the end of the third quarter remain unsold.
"With slower population growth, there is considerable uncertainty as to whether existing vacancies and the new supply coming on-stream can be fully absorbed by the market. Should there be insufficient occupation demand for the completed housing units, a supply imbalance could result and place downward pressure on prices and rentals in the medium term," the MAS said in the report.
On that note, the central bank urged developers to factor in a significant increase in private housing stock in the near term when bidding for land, and prospective buyers to consider the subdued rental market and further interest rate hikes that could weigh on their debt servicing ability
MAS flags risks from 'excessive exuberance' in property market
5 hours ago
Lynette Khoo
SINGAPORE - The Monetary Authority of Singapore (MAS) sounded a note of caution on the property market on Thursday (Nov 30), saying that recent market developments such as the en bloc fever and rising land prices could pose risks to the market's stability.
Market players should therefore take a medium-term view of supply-demand dynamics and act with caution, it said in its 2017 Financial Stability Review.
Its concerns stemmed from a potential mis-match between the supply of private housing and occupation demand, as the development of en bloc and Government Land Sales (GLS) sites is expected to add another 20,000 new units in the next one to two years. This is more than double the current supply in the pipeline, if the 16,031 unsold uncompleted units with planning approvals as of the end of the third quarter remain unsold.
"With slower population growth, there is considerable uncertainty as to whether existing vacancies and the new supply coming on-stream can be fully absorbed by the market. Should there be insufficient occupation demand for the completed housing units, a supply imbalance could result and place downward pressure on prices and rentals in the medium term," the MAS said in the report.
On that note, the central bank urged developers to factor in a significant increase in private housing stock in the near term when bidding for land, and prospective buyers to consider the subdued rental market and further interest rate hikes that could weigh on their debt servicing ability."Banks should continue to maintain prudent underwriting standards and review their valuation practices to ensure that property appraisals remain realistic and substantiated," the MAS said.
MAS deputy managing director, Ong Chong Tee, said: "Near-term financial stability risks may have receded with the stronger global economy. However, financial institutions, households and corporates should remain vigilant to the risks highlighted in the report, including the impact of rising interest rates, geopolitical developments, and excessive exuberance in the property market."
The warnings by the MAS echo recent comments of National Development Minister Lawrence Wong in Parliament and at a dinner gathering of real estate players last month, when he reiterated the need for developers and homebuyers to be prudent.
Singapore's private residential market has picked up in recent quarters, with a first uptick of 0.7 per cent in the official price index in the third quarter after 15 quarters of decline. Rents remained unchanged in the third quarter, also after falling for 15 quarters.
Transactions of private homes in the first 10 months of this year have already exceeded that for the whole of last year, reflecting firm demand underpinned by an improvement in buyers' sentiment and low interest rates. Consequently, new housing loans have risen to an average of S$3.5 billion per month in the first 10 months of 2017, up from S$2.8 billion over the same period last year.
Developers have also actively participated in bidding for sites in the en-bloc market and the GLS programme to replenish their land banks.
But meanwhile, the rental market remains weak as vacancy rates stayed elevated at 8.4 per cent in the third quarter, compared with 5.2 per cent in the first quarter of 2013 and the historical average of around 6.5 per cent over the past decade.
Population growth has also moderated to a compounded annual rate of 1.1 per cent from 2012 to 2017, down from 3 per cent in the 2007-2012 period.
The MAS said that it will continue to monitor market developments with the Ministry of National Development and the Ministry of Finance and "where necessary, take appropriate actions to maintain a stable and sustainable property market".
Amber Woods
30-11-17, 16:18
HIGHER PRICES, MORE TRANSACTIONS IN PRIVATE PROPERTY MARKET
Amid the pick-up in Singapore's private residential property market, MAS noted that both prices and the number of transactions have increased in recent quarters.
Private home prices rose slightly by 0.7 per cent in the third quarter, after a gradual decline over 15 consecutive quarters. Prices in the Outside Central Region (OCR), Rest of Central Region (RCR) and Core Central Region (CCR) rose by 0.8 per cent, 0.5 per cent and 0.1 per cent, respectively.
Buyer sentiment has also improved, as seen in the higher take-up at recent project launches and the increase in resale transactions, said MAS.
The total number of transactions in the first 10 months of 2017 rose 54 per cent compared to the same period last year. However, sub-sale transactions, a proxy for speculative activity, have remained low and broadly unchanged.
The increase in transactions also came about amid continued low interest rates, MAS noted.
The three-month Singapore Interbank Offered Rate (SIBOR) remains low, although it has increased slightly over the past year. The commonly used reference rate for housing loans stood at 1.1 per cent in mid- November, compared to a peak of 3.6 per cent recorded in 2006.
Given the increased transaction activity, new housing loans have risen to an average of S$3.5 billion per month in the first 10 months of 2017, up from S$2.8 billion over the same period last year.
Still, the growth in outstanding housing loans remains low at 4 per cent year-on-year as of October.
“The asset quality of housing loans continues to be strong. Both loans in arrears and NPLs (non-performing loans) are low,” MAS wrote in its report, while noting that the share of loans that are more than 30 days in arrears and NPL ratio were 1 per cent and 0.4 per cent respectively in the third quarter, unchanged from a year ago.
Its stress test results indicate that the banking system would be resilient to a sharp drop in property prices of 50 per cent over a three-year period, the central bank added.
However, the local rental market remains weak, with more than 30,000 vacant private housing units as of third quarter this year.
Despite declining from the peak of 8.9 per cent in the second quarter of 2016, vacancy rates remain relatively high at 8.4 per cent in the third quarter.
Third-quarter rentals have stayed unchanged from the previous three months, after falling by a cumulative 12.5 per cent since the third quarter in 2013.
"Should interest rates rise or rentals fall further, some borrowers could face difficulties meeting mortgage repayments on their investment properties," MAS said.
Source: CNA/cy
Read more at http://www.channelnewsasia.com/news/singapore/en-bloc-risks-private-property-market-outlook-mas-9454128
It means to say, prices are going the way of cars, up and away.
Don’t depend on the rent or the low interest rates if you are looking to buy.
Only buy if you are serious in staying and able to pay the mortgage, or willing to collect less rent than mortgage.
Make sense?
If en-bloc causing oversupply, then gov can easily cut back GLS right? Anyway, they have little carrying costs (since they bought most of their land at 1967 price of about S$0.60 psf and for freehold status some more)!
MAS flags risks from 'excessive exuberance' in property market
5 hours ago
Lynette Khoo
SINGAPORE - The Monetary Authority of Singapore (MAS) sounded a note of caution on the property market on Thursday (Nov 30), saying that recent market developments such as the en bloc fever and rising land prices could pose risks to the market's stability.
Market players should therefore take a medium-term view of supply-demand dynamics and act with caution, it said in its 2017 Financial Stability Review.
Its concerns stemmed from a potential mis-match between the supply of private housing and occupation demand, as the development of en bloc and Government Land Sales (GLS) sites is expected to add another 20,000 new units in the next one to two years. This is more than double the current supply in the pipeline, if the 16,031 unsold uncompleted units with planning approvals as of the end of the third quarter remain unsold.
"With slower population growth, there is considerable uncertainty as to whether existing vacancies and the new supply coming on-stream can be fully absorbed by the market. Should there be insufficient occupation demand for the completed housing units, a supply imbalance could result and place downward pressure on prices and rentals in the medium term," the MAS said in the report.
On that note, the central bank urged developers to factor in a significant increase in private housing stock in the near term when bidding for land, and prospective buyers to consider the subdued rental market and further interest rate hikes that could weigh on their debt servicing ability."Banks should continue to maintain prudent underwriting standards and review their valuation practices to ensure that property appraisals remain realistic and substantiated," the MAS said.
MAS deputy managing director, Ong Chong Tee, said: "Near-term financial stability risks may have receded with the stronger global economy. However, financial institutions, households and corporates should remain vigilant to the risks highlighted in the report, including the impact of rising interest rates, geopolitical developments, and excessive exuberance in the property market."
The warnings by the MAS echo recent comments of National Development Minister Lawrence Wong in Parliament and at a dinner gathering of real estate players last month, when he reiterated the need for developers and homebuyers to be prudent.
Singapore's private residential market has picked up in recent quarters, with a first uptick of 0.7 per cent in the official price index in the third quarter after 15 quarters of decline. Rents remained unchanged in the third quarter, also after falling for 15 quarters.
Transactions of private homes in the first 10 months of this year have already exceeded that for the whole of last year, reflecting firm demand underpinned by an improvement in buyers' sentiment and low interest rates. Consequently, new housing loans have risen to an average of S$3.5 billion per month in the first 10 months of 2017, up from S$2.8 billion over the same period last year.
Developers have also actively participated in bidding for sites in the en-bloc market and the GLS programme to replenish their land banks.
But meanwhile, the rental market remains weak as vacancy rates stayed elevated at 8.4 per cent in the third quarter, compared with 5.2 per cent in the first quarter of 2013 and the historical average of around 6.5 per cent over the past decade.
Population growth has also moderated to a compounded annual rate of 1.1 per cent from 2012 to 2017, down from 3 per cent in the 2007-2012 period.
The MAS said that it will continue to monitor market developments with the Ministry of National Development and the Ministry of Finance and "where necessary, take appropriate actions to maintain a stable and sustainable property market".
thomastansb
30-11-17, 22:12
Even if oversupply, it won't be until 2021 at the earliest. Let's assume 2017 enbloc. 2018 move out. 2018-2019 launch. 2021-2022 back on the market.
So enbloc in 2017, back on the market in 2021/2022.
If 2018 - 2022/2023.
5 years of rental to collect even if you buy now. Why worry about oversupply? The current enbloc owners have no place to stay. Either these cash rich owners buy or they rent. Either way, they are jacking up the prices because to them, everything is cheap.
To me, collect 5 years of rental, prices continue to go up 5% a year till 2020 and then stagnant. Total up 15% + 5 years of rental.
Even if oversupply, it won't be until 2021 at the earliest. Let's assume 2017 enbloc. 2018 move out. 2018-2019 launch. 2021-2022 back on the market.
So enbloc in 2017, back on the market in 2021/2022.
If 2018 - 2022/2023.
5 years of rental to collect even if you buy now. Why worry about oversupply? The current enbloc owners have no place to stay. Either these cash rich owners buy or they rent. Either way, they are jacking up the prices because to them, everything is cheap.
To me, collect 5 years of rental, prices continue to go up 5% a year till 2020 and then stagnant. Total up 15% + 5 years of rental.
Have been doing it since 2010 when SB TOP, cash out some more to buy another one.
Tell people buy buy buy they say I spam, cut and paste, grammar more good, read my England no shiok, lucky got people like my Bad England, cut and paste and spam.
Money in the Bank can only depreciate like the Japanese Banana currency which my grandmother has a lot, if only she buy lot of property.
MAS mainly is warning marginal buyers that the price will runaway from the rent very soon, in fact could have started. It is also a last warning for the comfortable fence sitting buyers who can comfortably service the mortgage, especially those for own stay, to commit before they miss the train.
Those vested based on yesterday’s prices will do fine, but those hoping to adopt buy to let at tomorrow’s prices will encounter the price instability stated and may have to sell back at today’s prices (aka 50% drop to today’s prices by 2023 for eg) if they cannot afford the mortgage. It is as official a last call as they can give.
Be prepared for new launch PSF to go up by 50-100%. Much smaller units could be coming. Remember, MAS did not warn of exuberance, only if excessive exuberance (Arcachon level).
tonymontana
01-12-17, 07:08
Have been doing it since 2010 when SB TOP, cash out some more to buy another one.
Tell people buy buy buy they say I spam, cut and paste, grammar more good, read my England no shiok, lucky got people like my Bad England, cut and paste and spam.
Money in the Bank can only depreciate like the Japanese Banana currency which my grandmother has a lot, if only she buy lot of property.
Yes, all well and good, but There are risks with such a strategy, such as prices crashing suddenly like in 2000-2003. I remember vividly reading about this guy in the straits times who upgraded to a landed in sgoon garden only to have to foreclose and basically went bankrupt, IIRC it's in 2003. Property isn't such a straightforward barrel shoot as some people think. However I also think prices will continue going up. Rental won't be as great as in 2010, but investors will have to take what they can. Recently changed tenant in one of our property, very fast get new tenant. And it's not even CCR.
bargain hunter
01-12-17, 09:51
http://www.businesstimes.com.sg/real-estate/allgreen-snaps-up-two-freehold-sites-in-bukit-timah-in-collective-sales
ALLGREEN TOTALLY DON'T RESPECT MAS. HAHAHAHAHHAHAHAHA
Amber Woods
01-12-17, 09:52
Lets' look at the en bloc market in perspective. For most older estates, it is about 60% owner occupied and 40% investment. For every 100 units en bloc, we assume all the 40% investors will buy a replacement unit for investment. We can also safely assume that for the 60% owner occupiers who are usually elderly, 50% of the 60% will downgrade to HDB flats; 25% will stay with with children and keep the cash for retirement. The remaining 25% will buy a new unit. So effectively, for every 100 units being en bloc, there will be about 55 buyers need to buy private property.
However, for every 100 units being en bloc, there will be another 200 new units (conservatively) added to the supply because developers will build more smaller units. So it means that supply will be increased by about 3 times for every 100 units of units being en bloc with respect to the number of buyers buying replacement units.
With falling rents and increasing interest rate, the 55 potential buyers out of 100 units being en bloc may be less. Some will prefer to invest in bonds instead. The en bloc buyers are not going to put pressure on demand. In fact, it increases supply much more than creating demand.
bargain hunter
01-12-17, 09:53
"The selling price for Royalville reflects a land rate of about S$1,960 per square foot per plot ratio (psf ppr).
As for the 28-unit Crystal Tower at Ewe Boon Road in prime district 10, the selling price reflects a land rate of S$1,840 psf ppr."
?!??!??!?!??!!?!?!?!?!?!??!?!?!?! :not-worthy::jaw-dropping:
Land price already almost 2K PSF.
Plus construction in an environment of increasing water tax, GST when?, manpower costs, new fabrication technology, catering for taxes for unsold units etc...
Selling price most certainly near 3KPSF?
"The selling price for Royalville reflects a land rate of about S$1,960 per square foot per plot ratio (psf ppr).
As for the 28-unit Crystal Tower at Ewe Boon Road in prime district 10, the selling price reflects a land rate of S$1,840 psf ppr."
?!??!??!?!??!!?!?!?!?!?!??!?!?!?! :not-worthy::jaw-dropping:
bargain hunter
01-12-17, 11:49
Land price already almost 2K PSF.
Plus construction in an environment of increasing water tax, GST when?, manpower costs, new fabrication technology, catering for taxes for unsold units etc...
Selling price most certainly near 3KPSF?
easily > $2,500. should be somewhere between 2500 and 3000psf. for sixth avenue?!
govt just wanna create a oversupply panic so that they can open door big big for FTs
All the data point to one thing that is going to happen, just like 2006.
tonymontana
01-12-17, 17:40
"The selling price for Royalville reflects a land rate of about S$1,960 per square foot per plot ratio (psf ppr).
As for the 28-unit Crystal Tower at Ewe Boon Road in prime district 10, the selling price reflects a land rate of S$1,840 psf ppr."
?!??!??!?!??!!?!?!?!?!?!??!?!?!?! :not-worthy::jaw-dropping:
why jaw drop? It's prime districts, I would expect those kind of land rate for freehold, with the DT line stations in operation.
I think Ewe boon rd location is far better than royalville's, so allgreen got something of a bargain at 1840psf ppr (lower than royalville)
bargain hunter
01-12-17, 18:24
why jaw drop? It's prime districts, I would expect those kind of land rate for freehold, with the DT line stations in operation.
I think Ewe boon rd location is far better than royalville's, so allgreen got something of a bargain at 1840psf ppr (lower than royalville)
i think there's a small commercial component for royalville, hence the higher psf. but if the selling price is 2700psf or so, then allgreen is likely to replicate its skysuites @ anson mickey mouse formula.
anythingwhatever
01-12-17, 20:18
All the data point to one thing that is going to happen, just like 2006.
The bull run or the bear crash? :)
The bull run or the bear crash? :)
Before the Bear crash, the Bull need to run first.
https://s3-ap-southeast-1.amazonaws.com/static.streetsine/CoolingMeasure/NLP_Resale_HD_2.jpg
bargain hunter
01-12-17, 20:38
The bull run or the bear crash? :)
bull run first then bear crash follow. lol. but i think the volatility will be greatly reduced due to the different circumstances (TDSR/ABSD/SSD).
thomastansb
01-12-17, 23:57
People have been saying since 2009 recovery that prices will drop. Prices will crash. OCR will die. CCR will rot.
It has almost been 8 years of rental for me. Well, it might drop. But when? At a very modest 3k nett gain a month, I have already collected close to 300k of nett rental. I don't care what people say. I look at my bank account and I know I made the right decision. And I haven't even talk about the capital gain.
Have been doing it since 2010 when SB TOP, cash out some more to buy another one.
Tell people buy buy buy they say I spam, cut and paste, grammar more good, read my England no shiok, lucky got people like my Bad England, cut and paste and spam.
Money in the Bank can only depreciate like the Japanese Banana currency which my grandmother has a lot, if only she buy lot of property.
thomastansb
01-12-17, 23:59
It depends when you got your house. I got mine in Q1 2009. And a second one also in 2009. Never looked back since then. And also, even if you buy at 2013 peak, your rental would have cover any drop in prices. Assuming a very low 2% yield a year, 5 years would have been 10%. And who on earth is getting 2% yield right?
Yes, all well and good, but There are risks with such a strategy, such as prices crashing suddenly like in 2000-2003. I remember vividly reading about this guy in the straits times who upgraded to a landed in sgoon garden only to have to foreclose and basically went bankrupt, IIRC it's in 2003. Property isn't such a straightforward barrel shoot as some people think. However I also think prices will continue going up. Rental won't be as great as in 2010, but investors will have to take what they can. Recently changed tenant in one of our property, very fast get new tenant. And it's not even CCR.
tonymontana
02-12-17, 10:46
People have been saying since 2009 recovery that prices will drop. Prices will crash. OCR will die. CCR will rot.
It has almost been 8 years of rental for me. Well, it might drop. But when? At a very modest 3k nett gain a month, I have already collected close to 300k of nett rental. I don't care what people say. I look at my bank account and I know I made the right decision. And I haven't even talk about the capital gain.
Exactly! If you've played your cards right, singapore property is the best in this region.
tonymontana
02-12-17, 10:54
It depends when you got your house. I got mine in Q1 2009. And a second one also in 2009. Never looked back since then. And also, even if you buy at 2013 peak, your rental would have cover any drop in prices. Assuming a very low 2% yield a year, 5 years would have been 10%. And who on earth is getting 2% yield right?
you're right. having said that, luckily i didn't buy anything in 2013, heng ah. :p
i guess what i was saying in that post is to be careful not to overstretch.
Govt already took alot from property owners: Stamp duty, Property tax, income tax from rental. Cant imagine if they still want to implement more cooling measures. Really blood suckers. They should just let price rises instead. Even stock market has rises more than double now.
Govt already took alot from property owners: Stamp duty, Property tax, income tax from rental. Cant imagine if they still want to implement more cooling measures. Really blood suckers. They should just let price rises instead. Even stock market has rises more than double now.
I find them very good to me.
I did not pay ABSD, SSD and TDSR help to prevent the market from crash.
https://s3-ap-southeast-1.amazonaws.com/static.streetsine/CoolingMeasure/NLP_Resale_HD_2.jpg
Where to find when they even relax the TDSR so that I can re finance my mortgage.
http://www.businesstimes.com.sg/real-estate/singapore-tdsr-relaxed-for-mortgage-equity-withdrawal-loans
THE Total Debt Servicing Ratio (TDSR) will no longer be applied starting 11 March 2017 for mortgage equity withdrawal loans that have a loan-to-value (LTV) ratio of 50 per cent and below.
MAS and MND even help to advise the property investor now is the time to buy before the next Bull run.
https://www.srx.com.sg/cooling-measures
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2016/TDSR-Rules-on-Refinancing-Fine-Tuned.aspx
Singapore, 1 September 2016… The Monetary Authority of Singapore (MAS) announced today that the refinancing rules under the Total Debt Servicing Ratio (TDSR) framework will be fine-tuned to allow borrowers more flexibility in managing their debt obligations. This is in response to feedback from some borrowers who are unable to refinance their existing property loans owing to the application of the TDSR threshold of 60 per cent.
Like that so good can buy still waiting, I got no word to say.
buyer_east
02-12-17, 16:48
Arcachon, what is the reason people don't like condos at Balistier Road?
I see the location is quite near to the city center.
Arcachon, what is the reason people don't like condos at Balistier Road?
I see the location is quite near to the city center.
Depends on where you stay during the growing up period.
I stay in the east, use to pass by North bridge road when Gas work was at Kallang.
When Southbank was launch in 2006 it was no brainier for me to buy but for others they see Thai worker, Geylang Chicken and HDB friendly neighbor as a minus point.
Same go to Balestier Road it was the place where I go and buy 12x12 vinyl tile to lay on my father 3 room HDB. Where Karaoke, Night club, bar those a bit lower grade from the Singapore river Pub and Bar such as Hooters where they find young female waitress who give 2 ball all the time.
http://1.bp.blogspot.com/-PIY50i_2oyw/VMHlLsiAQrI/AAAAAAAAFfI/VmofhUTYLKQ/s1600/Hooters-Japan-Sexy-Asian-Girls.jpg
I was having dinner with my wife and my little boy at Hooters in US and I told my wife if my boy and I having dinner and she not around the Hooters will play their ball with my son.
To me Balestier Road bring back memory where I use to visit the clinic there when I was a small boy and my son who find his cure for this severe bronchitic when every doctor in Singapore diagnose him as asthmatic.
If you like Balestier Road don't be bored by the noise, Just Do It.
Hope I did not spam and sorry for the bad England.
Lets' look at the en bloc market in perspective. For most older estates, it is about 60% owner occupied and 40% investment. For every 100 units en bloc, we assume all the 40% investors will buy a replacement unit for investment. We can also safely assume that for the 60% owner occupiers who are usually elderly, 50% of the 60% will downgrade to HDB flats; 25% will stay with with children and keep the cash for retirement. The remaining 25% will buy a new unit. So effectively, for every 100 units being en bloc, there will be about 55 buyers need to buy private property.
However, for every 100 units being en bloc, there will be another 200 new units (conservatively) added to the supply because developers will build more smaller units. So it means that supply will be increased by about 3 times for every 100 units of units being en bloc with respect to the number of buyers buying replacement units.
With falling rents and increasing interest rate, the 55 potential buyers out of 100 units being en bloc may be less. Some will prefer to invest in bonds instead. The en bloc buyers are not going to put pressure on demand. In fact, it increases supply much more than creating demand.
Where will the displaced HDB dwellers who sold their place to the 50-60% elderly be buying? Your guess is as good as mine. Whatever percentage you use, is still just a speculation to suit your agenda. End of the day, it is not easy to gauge where the market is moving.
tonymontana
03-12-17, 10:52
I find them very good to me.
I did not pay ABSD, SSD and TDSR help to prevent the market from crash.
https://s3-ap-southeast-1.amazonaws.com/static.streetsine/CoolingMeasure/NLP_Resale_HD_2.jpg
Where to find when they even relax the TDSR so that I can re finance my mortgage.
http://www.businesstimes.com.sg/real-estate/singapore-tdsr-relaxed-for-mortgage-equity-withdrawal-loans
THE Total Debt Servicing Ratio (TDSR) will no longer be applied starting 11 March 2017 for mortgage equity withdrawal loans that have a loan-to-value (LTV) ratio of 50 per cent and below.
MAS and MND even help to advise the property investor now is the time to buy before the next Bull run.
https://www.srx.com.sg/cooling-measures
you withdrew more equity after 11 mar 2017?
tonymontana
03-12-17, 10:56
Arcachon, what is the reason people don't like condos at Balistier Road?
I see the location is quite near to the city center.
Balestier got a shady reputation. Especially those apartments on the shaw plaza side.
but for rental play wise, it can be a good proposition. I mean it's definitely better to buy a smallish apartment in balestier for rental compared to pasir ris or punggol (for eg).
for own stay, i wouldn't unless i grew up around that area (which i didn't).
Amber Woods
03-12-17, 13:15
Where will the displaced HDB dwellers who sold their place to the 50-60% elderly be buying? Your guess is as good as mine. Whatever percentage you use, is still just a speculation to suit your agenda. End of the day, it is not easy to gauge where the market is moving.
It is an opinion based on my experience with older en bloc developments and subject to critics from people who also have similar experience with en bloc sales. There is no speculation nor any agenda.
It is an opinion based on my experience with older en bloc developments and subject to critics from people who also have similar experience with en bloc sales. There is no speculation nor any agenda.
I’m one of them, wanna buy more but kena block.
you withdrew more equity after 11 mar 2017?
Lots of plan, depends on which come first. Meantime was planned to go oversea again for a short working trip.
MAS hinting cooling measures of some form imminent.
Mmm, will it be more money generating cooling measures (like SSD and ABSD)?
And after that OCR private properties will continue to increase (like previously) and more GLS land will be sold at record price? :tongue4:
MAS hinting cooling measures of some form imminent.
MAS hinting cooling measures of some form imminent.
Definitely not true. It might even mean relaxing of some cooling measures soon to boost tax collections, and to warn borderline buyers against "excessive" exuberance, while giving first time buyers final call.
But most likely, it means that the government will not do anything if people choose to be excessively exuberant, as the "supply" is believed to be sufficient to cope with the price rise.
The only thing I know is that there is no government that will openly ask its people to buy. It's forever about caution, and for one to bear his/her own risks. If you gain buying with governmental encouragements, would you share with the government? If you lose because government said its a good time to buy, what would you do? So, the politically correct answer is as always, buy within means, don't be excessively exuberant, even though economy is doing well, everybody's salary is increasing, the property market has trended down for years while comparable markets have spiked.
Be prudent, but not complacent.
Govt already took alot from property owners: Stamp duty, Property tax, income tax from rental. Cant imagine if they still want to implement more cooling measures. Really blood suckers. They should just let price rises instead. Even stock market has rises more than double now.
Yah, really day light robbery
And you forgot ABSD, 30% water tariff increase, soon carbon taxes that will lead to electricity tariff increase........
Anyway, prices has risen at OCR, and they are near historical thousand years peak!
Govt already took alot from property owners: Stamp duty, Property tax, income tax from rental. Cant imagine if they still want to implement more cooling measures. Really blood suckers. They should just let price rises instead. Even stock market has rises more than double now.
tonymontana
05-12-17, 17:15
Definitely not true. It might even mean relaxing of some cooling measures soon to boost tax collections, and to warn borderline buyers against "excessive" exuberance, while giving first time buyers final call.
But most likely, it means that the government will not do anything if people choose to be excessively exuberant, as the "supply" is believed to be sufficient to cope with the price rise.
The only thing I know is that there is no government that will openly ask its people to buy. It's forever about caution, and for one to bear his/her own risks. If you gain buying with governmental encouragements, would you share with the government? If you lose because government said its a good time to buy, what would you do? So, the politically correct answer is as always, buy within means, don't be excessively exuberant, even though economy is doing well, everybody's salary is increasing, the property market has trended down for years while comparable markets have spiked.
Be prudent, but not complacent.
you are probably right. Govt needs to say something while doing something exactly opposite. It's called "C.Y.A".
For example, engaging with stakeholders about tweaks to the minimum stay period, while simultaneously slapping charges on an airbnb host
bargain hunter
05-12-17, 18:12
developers continue not to give MAS face, will start a new thread on the 2 latest bids. :)
thomastansb
05-12-17, 20:52
Prices declined for 15 quarters. And just went up 0.7% for ONE QUARTER. I think they are nuts if they implement CM now.
MAS hinting cooling measures of some form imminent.
Benchmarked to 2009 levels, the average increase is about 4.5% annually, or 4% compounded over 8 years. More or less acceptable (in fact superior in stability) compared with all comparable cities.
As long as we do not overshoot 4% increase annually, it is a level that matches the income growth of the top quartile.
The risk is if we go beyond 10% in a year. Then authorities might be pressured to do something. Either way, I am happy to watch on.
Whatever cooling measures the government imposed, developers are banking that the cyclical property market cannot stay down for more than 10 years.... 4 years down cycle so far + 7 years to build and fully sell the condo... so they just bid aggressively... looks like prices will go up 20% all over the island with the GLS and enbloc sites sold far...
IOI price for marina bay 16xx psf was considered high when they bid for it then came Guocoland 17xx psf at beach road.... then 17xx psf for a residential site at jiak Kim...
Looks like CCR LH and FH sites whether GLS or enbloc minimum 15xx psf ppr if it's pure residential and 17xx if it's mixed use and I am sure the next plot of mixed use at marina bay will go for 2000 psf ppr....
Guocoland laughing all the way to the bank as their tanjong pagar centre land cost was 1100 psf ppr
buyer_east
30-12-17, 13:36
Whatever cooling measures the government imposed, developers are banking that the cyclical property market cannot stay down for more than 10 years.... 4 years down cycle so far + 7 years to build and fully sell the condo... so they just bid aggressively... looks like prices will go up 20% all over the island with the GLS and enbloc sites sold far...
IOI price for marina bay 16xx psf was considered high when they bid for it then came Guocoland 17xx psf at beach road.... then 17xx psf for a residential site at jiak Kim...
Looks like CCR LH and FH sites whether GLS or enbloc minimum 15xx psf ppr if it's pure residential and 17xx if it's mixed use and I am sure the next plot of mixed use at marina bay will go for 2000 psf ppr....
Guocoland laughing all the way to the bank as their tanjong pagar centre land cost was 1100 psf ppr
Doing search over the last few months. It seems prices of the property I might look at all rose 10% already. :(
This year's pay is wasted in this indecision if I were to buy again now. :(
thomastansb
30-12-17, 14:16
But those searches you did are only a few properties. Perhaps of your interest only. If you factor in all transactions, then maybe 2-3% at most for the past Q.
Anyway, even upper changi/flora area (esso station there) will be selling 1.5 -1.6k psf soon. Just opp the prison there. At 888 psf/ppr, breakeven is 1350 to 1400 psf. So a profit of $200 psf sounds reasonable.
Doing search over the last few months. It seems prices of the property I might look at all rose 10% already. :(
This year's pay is wasted in this indecision if I were to buy again now. :(
buyer_east
30-12-17, 17:12
But those searches you did are only a few properties. Perhaps of your interest only. If you factor in all transactions, then maybe 2-3% at most for the past Q.
Anyway, even upper changi/flora area (esso station there) will be selling 1.5 -1.6k psf soon. Just opp the prison there. At 888 psf/ppr, breakeven is 1350 to 1400 psf. So a profit of $200 psf sounds reasonable.
usually when stocks index rose 3%, underlying stocks mostly rose 10% already. The majority of the stocks never move much.
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