Residential investment sales plunged in Q3

[mr funny]

http://www.todayonline.com/Business/...-plunged-in-Q3

Residential investment sales plunged in Q3

by Jo-ann Huang

05:55 AM Oct 22, 2010


SINGAPORE - Investment sales for residential property in Singapore have fallen 30.8 per cent in a single quarter, with analysts attributing the dive to the slew of cooling measures introduced by the Government in August.

According to a report issued yesterday by property consultancy Colliers International, the third quarter saw a total value of $3.74 billion in residential investment sales, well below the $5.4 billion recorded in the previous quarter.

This was mainly due to lower prices submitted by developers in tenders for state residential land sites, analysts said. Compared to the second quarter's $1.85 billion, third-quarter figures for state land sales came in at $897.08 million or a 51.5-per-cent drop, according to the report.

The policy measures, coupled with the ample land supply through the Government Land Sales (GLS) programme, have "resulted in developers' cautiously optimistic stance in state land tenders that closed in September", observed Ms Tay Huey Ying, director of research and advisory at Colliers International and author of the report.

Ms Tay noted that only four to nine parties typically bid for any land site in the third quarter, compared to between 10 and 18 in the second quarter.

Mr Eugene Lim, associate director of ERA Asia Pacific, believes the focus on public housing and mass market housing had contributed to the fall in residential investment sales.

"The types of land that are being launched are not for high-end residential properties. More land sites for executive condominiums (ECs) and mass market housing have gone on sale in the quarter," he said.

"The value of tenders is also not that high because the land sites are not in prime locations," he noted.

Among the measures announced in August was the reduction of the loan-to-value ratio from 80 to 70 per cent for buyers with one or more outstanding mortgage loans at the time of their new purchase. The measures seem to have taken effect, as the number of homes sold last month numbered only 911 units. This is a drop from 1,259 units in August and the peak of 1,553 units in July.

Market watchers foresee property prices dipping 3 to 5 per cent by year-end and they expect this trend to continue into next year.

And they forecast more property launches by the end of this year as developers try to offload inventory before the downtrend deepens.

"Developers who have bought land from GLS in the last few months will want to rush out their launches in the last quarter. However, monthly sales will be slow and my estimate is around 500 to 600 units," said KPC Properties managing director Koh Poh Chew.

[jbond]

"Among the measures announced in August was the reduction of the loan-to-value ratio from 80 to 70 per cent for buyers with one or more outstanding mortgage loans at the time of their new purchase. The measures seem to have taken effect, as the number of homes sold last month numbered only 911 units. This is a drop from 1,259 units in August and the peak of 1,553 units in July.

Market watchers foresee property prices dipping 3 to 5 per cent by year-end and they expect this trend to continue into next year."
.

Last year many agents said the same thing - property prices will come down soon (trick to get people to buy?).


Are prices really going to go down because of the government's cooling measures?

[devilplate]

Last year many agents said the same thing - property prices will come down soon (trick to get people to buy?).


Are prices really going to go down because of the government's cooling measures?

u type wrongly?

shd be 'tricking owners to sell?'

[sfwoo]

u type wrongly?

shd be 'tricking owners to sell?'

I know one family, sold their 2+1 mass market condo at $400+K 2 yrs ago, cos agent told them, 99LH, low floor, ULU, better grab since got buyer. They not ZHAI enough...so, sell lor.

After selling, 2 months later, her direct neighbour, same sized unit, same facing, lousier reno, different agent...sell for $600+K.

[devilplate]

I know one family, sold their 2+1 mass market condo at $400+K 2 yrs ago, cos agent told them, 99LH, low floor, ULU, better grab since got buyer. They not ZHAI enough...so, sell lor.

After selling, 2 months later, her direct neighbour, same sized unit, same facing, lousier reno, different agent...sell for $600+K.

i kena b4 also....but not so much diff in %...ard 15% diff 3mths later...and i TOT i sold at record price at tat time!!!

SELLER'S REMORSE IS PERM AND UNFORGETTABLE!

[smallant]

Hmmm... selling and buying prop is like stocks leh...
Can timed the lowest to buy and highest to sell ?
Would sure like to learn...

But 50% difference in 3 mths is huge... So sellers also better do yr homework.. Dun get CON !

[rattydrama]

the message could be get people to buy but seller, dont be too demanding and ask for sky high price......

I still need to collect stamp duty to pay bonus, bank still need business and earn enough to pay their taxes to me and my electorate is happy to vote me. Moreover, not my fault if you dont buy/sell -- see ... the price drop / up again.......

Best director in the making.

[smallant]

if the script acts out right... then property here only have one direction to head leh.... Land is limited here.. every one have a stake here.. the biggest stake holder is .....

[mcmlxxvi]

i kena b4 also....but not so much diff in %...ard 15% diff 3mths later...and i TOT i sold at record price at tat time!!!

SELLER'S REMORSE IS PERM AND UNFORGETTABLE!

You people must be those type who bought things liao still go shopping to compare prices to convince you got a good buy. Lol

[mcmlxxvi]

the message could be get people to buy but seller, dont be too demanding and ask for sky high price......

I still need to collect stamp duty to pay bonus, bank still need business and earn enough to pay their taxes to me and my electorate is happy to vote me. Moreover, not my fault if you dont buy/sell -- see ... the price drop / up again.......

Best director in the making.

Well said. Like the banking sector, national service and telco business. All same party directing behind...and Oscars award definitely

[devilplate]

You people must be those type who bought things liao still go shopping to compare prices to convince you got a good buy. Lol

or convince urself tat u sold at a gd price

[rattydrama]

yes long term...short term is the big question where every one is asking..

if the script acts out right... then property here only have one direction to head leh.... Land is limited here.. every one have a stake here.. the biggest stake holder is .....

[rattydrama]

Now is Chinese Golden Flower Award. Indian Bollywood upcoming.
Oscar –

Well said. Like the banking sector, national service and telco business. All same party directing behind...and Oscars award definitely

[jbond]

u type wrongly?

shd be 'tricking owners to sell?'

Hi devilplate!

Yes, I meant it to be "sell".

You are very sharp! No wonder you are "exalted"! Good to have great people like you around. We need your experience and advice.

Thanks and keep it up, sir!

jbond

[mcmlxxvi]

Now is Chinese Golden Flower Award. Indian Bollywood upcoming.
Oscar –

Aiya i old skool unkle can???

[mcmlxxvi]

or convince urself tat u sold at a gd price

I always tell myself to look to the future and not look back... Unless its to count the victories. To date i had done well to that cause... Except people like to remind me of my stupid boat incident losing 30k... But that serves as grounding back to earth when u think u are darn good and flying up high in the sky too yaya.... Everyone is human afterall and who doesnt make mistakes. Important is to move on.

[sh]

I always tell myself to look to the future and not look back... Unless its to count the victories. To date i had done well to that cause... Except people like to remind me of my stupid boat incident losing 30k... But that serves as grounding back to earth when u think u are darn good and flying up high in the sky too yaya.... Everyone is human afterall and who doesnt make mistakes. Important is to move on.

Look at it this way... you can never buy at the lowest and sell at the highest, otherwise you will be GOD.

Would have done well if you've made money.

[zzz1]

I know one family, sold their 2+1 mass market condo at $400+K 2 yrs ago, cos agent told them, 99LH, low floor, ULU, better grab since got buyer. They not ZHAI enough...so, sell lor.

After selling, 2 months later, her direct neighbour, same sized unit, same facing, lousier reno, different agent...sell for $600+K.

IMO, when come to buy/sell....if you had done your home work and judgement and derived the decision. Once done, don't look back....

[Lord Anus]

i kena b4 also....but not so much diff in %...ard 15% diff 3mths later...and i TOT i sold at record price at tat time!!!

SELLER'S REMORSE IS PERM AND UNFORGETTABLE!

knn.... got profit good liao... still wanna kow peh

sinkaporeans ah.... greedy lah...

[Lord Anus]

Hi devilplate!

Yes, I meant it to be "sell".

You are very sharp! No wonder you are "exalted"! Good to have great people like you around. We need your experience and advice.

Thanks and keep it up, sir!

jbond

if you every day write many nonsense posts, you can also have "exalted" status. it is the post count lah, not necessarily quality of the posts.

[devilplate]

if you every day write many nonsense posts, you can also have "exalted" status. it is the post count lah, not necessarily quality of the posts.

wah so insulting

[zzz1]

wah so insulting

don worry...your post count is not the highest. Lol

[devilplate]

don worry...your post count is not the highest. Lol

can hide my post count anot?

[kingkong1984]

I know one family, sold their 2+1 mass market condo at $400+K 2 yrs ago, cos agent told them, 99LH, low floor, ULU, better grab since got buyer. They not ZHAI enough...so, sell lor.

After selling, 2 months later, her direct neighbour, same sized unit, same facing, lousier reno, different agent...sell for $600+K.

This is not as bad as same unit sold higher in less than 3 months or days. Ignorant and pay your price.

[sfwoo]

This is not as bad as same unit sold higher in less than 3 months or days. Ignorant and pay your price.

HAHAHA!

Got.

My neighbour, bank take back his 2+1. He declare bankruptcy. Bank agent sell at $400+K, mass mkt in ULU place. Buyer came in with his mop brigade, the team included himself and wife...lock the place up.

3 months later...sell for $650K...also happened 2 yrs ago.

[kingkong1984]

Sounds bad. Must be painful. You didnt try to buy it? If my neighbours unit selling 200k below value, grab fast mah! You not talking to ur neighbird?