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

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10-12-14, 10:45
princess_morbucks

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

Quote:

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-proper....CCfuvcsi.dpuf
10-12-14, 11:06
bargain hunter

the signs point to a soft landing in 2015 and 2016 instead of a massive oversupply in 2017?
10-12-14, 11:40
Allthepies

First time buyers, quick buy : )
10-12-14, 14:14
bargain hunter

developers quickly cut then first time buyers will quickly buy mah.

Quote:

Originally Posted by Allthepies

First time buyers, quick buy : )
10-12-14, 14:34
kellogs

waiting for the cut before the buy!
10-12-14, 18:42
bargain hunter

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.

Quote:

Originally Posted by kellogs

waiting for the cut before the buy!
10-12-14, 19:19
teddybear

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?

Quote:

Originally Posted by bargain hunter

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.
10-12-14, 19:19
4wheels

2nd timer will jump in to if there is a fire sales
10-12-14, 20:12
kellogs

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 ...

Quote:

Originally Posted by bargain hunter

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.
10-12-14, 20:20
bargain hunter

sophia residence so many cheap buys passed liao, u don't like?

Quote:

Originally Posted by kellogs

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 ...