Upgrading to private home? Wait a bit, says Mah

[mr funny]

http://www.straitstimes.com/News/Hom...ry_629917.html

Jan 30, 2011

Upgrading to private home? Wait a bit, says Mah


If you are a Housing Board flat owner looking to upgrade to a private property, wait a little longer before signing on the dotted line.

This was the advice from Minister for National Development Mah Bow Tan in an interview published in the Chinese daily Lianhe Wanbao yesterday.

'Housing prices are rather high now... if you wait for a while, you might find more affordable properties,' Mr Mah was quoted in the paper as saying.

Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.

'When that happens, you will be thankful that you didn't buy right now!' he added.

The property market hit new highs last year, fuelled by strong demand from cash-rich buyers, low interest rates and strong economic growth.

Private home prices moved up 17.6 per cent last year after rising just 1.6 per cent the year before. Non-landed property, which includes condominium units popular with Housing Board upgraders, rose 14 per cent.

Mr Mah said the Government is trying to dampen a 'flock' mentality that seems to have developed among property investors lured by the promise of making a quick profit.

He added that the recent market cooling measures - which include hefty sellers' stamp duties and lowered loan limits for second mortgages - should be seen in this context.

Rather than deterring home buyers from upgrading their houses, or reducing prices, they are meant to stabilise the market so that prices can increase at a more steady rate, he said.

'Reducing prices on purpose is not our aim, and it is of no use at all,' said Mr Mah. 'This may make some home buyers happy, but on the other hand, home sellers will be unhappy.'

For those who cannot wait and need to upgrade their homes right now, Mr Mah said he believed the new measures should not deter them as long as they have sufficient cash flow.

The minister also said that the Government is studying the effects of the latest round of measures closely, and warned that it could act again in three to four months' time.

He said property players will also need some time to digest the new measures and assess their impact before deciding what to do next.

'Although there are some who have reacted in knee-jerk fashion, most buyers and sellers are adopting a wait-and-see approach,' he added.

Amresh Gunasingham

[KC76]

http://www.straitstimes.com/News/Hom...ry_629917.html

Jan 30, 2011

Upgrading to private home? Wait a bit, says Mah


If you are a Housing Board flat owner looking to upgrade to a private property, wait a little longer before signing on the dotted line.

This was the advice from Minister for National Development Mah Bow Tan in an interview published in the Chinese daily Lianhe Wanbao yesterday.

'Housing prices are rather high now... if you wait for a while, you might find more affordable properties,' Mr Mah was quoted in the paper as saying.

Meaning prices should go down since more affordable in future?

Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.

'When that happens, you will be thankful that you didn't buy right now!' he added.

The property market hit new highs last year, fuelled by strong demand from cash-rich buyers, low interest rates and strong economic growth.

Private home prices moved up 17.6 per cent last year after rising just 1.6 per cent the year before. Non-landed property, which includes condominium units popular with Housing Board upgraders, rose 14 per cent.

Mr Mah said the Government is trying to dampen a 'flock' mentality that seems to have developed among property investors lured by the promise of making a quick profit.

He added that the recent market cooling measures - which include hefty sellers' stamp duties and lowered loan limits for second mortgages - should be seen in this context.

Rather than deterring home buyers from upgrading their houses, or reducing prices, they are meant to stabilise the market so that prices can increase at a more steady rate, he said.

'Reducing prices on purpose is not our aim, and it is of no use at all,' said Mr Mah. 'This may make some home buyers happy, but on the other hand, home sellers will be unhappy.'

Meaning his policies will not reduce prices?

For those who cannot wait and need to upgrade their homes right now, Mr Mah said he believed the new measures should not deter them as long as they have sufficient cash flow.

The minister also said that the Government is studying the effects of the latest round of measures closely, and warned that it could act again in three to four months' time.

He said property players will also need some time to digest the new measures and assess their impact before deciding what to do next.

'Although there are some who have reacted in knee-jerk fashion, most buyers and sellers are adopting a wait-and-see approach,' he added.

Amresh Gunasingham

2 contradicting statements all within a write-up? So should prices stay or go down?

[Komo]

Believe at least suburb properties prices can expect to stabilse for new launches for list prices or near top ones play some catch up (stretch to hit $1k psf?). I suppose 2011 new launches can expect more freebies and discount (including stamp duty rebates) and buffet from developer?

[hyenergix]

Believe at least suburb properties prices can expect to stabilse for new launches for list prices or near top ones play some catch up (stretch to hit $1k psf?). I suppose 2011 new launches can expect more freebies and discount (including stamp duty rebates) and buffet from developer?

Q1 and Q2 2011 will still be flushed with cash from QE2 in US and economic data may appear to be good. Perhaps around +/- Q3 2011 (if no further stimulus) and more condos TOP, then we see much better deals. By the way discounts/vouchers are already coming in...

[kane]

Q1 and Q2 2011 will still be flushed with cash from QE2 in US and economic data may appear to be good. Perhaps around +/- Q3 2011 (if no further stimulus) and more condos TOP, then we see much better deals. By the way discounts/vouchers are already coming in...

how much are the discount vouchers?

[mantrix]

how much are the discount vouchers?

I know FEO is offering 3% of purchase price in the form of furniture vouchers

[proud owner]

I know FEO is offering 3% of purchase price in the form of furniture vouchers

gets back more than stamp duty ..which is 3pct - 5k

[Wild Falcon]

Developers don't even have confidence to build and sell 1000sqft units (only 3-4 room flat size) in certain areas. Almost every new launch at certain districts are MM. It shows that developers know that even a small 1000sq ft unit is going to cause PSF to fall and have resort to 300sq ft units to inflate PSF by easily 30%-40%. Nowadays, a 4-rm HDB flat is more spacious and luxurious than a new "condo". If wanna invest, only go to areas where new launches sizes are still ok - becos there is still room to downsize. Once units in an area for every launch has reached 300sq ft, u know the developers have run out of ideas to push the prices up anymore.

[proud owner]

Developers don't even have confidence to build and sell 1000sqft units (only 3-4 room flat size) in certain areas. Almost every new launch at certain districts are MM. It shows that developers know that even a small 1000sq ft unit is going to cause PSF to fall and have resort to 300sq ft units to inflate PSF by easily 30%-40%. Nowadays, a 4-rm HDB flat is more spacious and luxurious than a new "condo". If wanna invest, only go to areas where new launches sizes are still ok - becos there is still room to downsize. Once units in an area for every launch has reached 300sq ft, u know the developers have run out of ideas to push the prices up anymore.

what to do ... so many people are mentally psyching themselves that we are gearing towards HK , in terms of price and size .....


i still believe ...the more they sell MM ...they more we shud be big units ...

[kane]

what to do ... so many people are mentally psyching themselves that we are gearing towards HK , in terms of price and size .....


i still believe ...the more they sell MM ...they more we shud be big units ...

true, to HKers, a 1200sqft apt 3 bedder is like 豪宅 to them.

3% furniture voucher? They always premium price leh.

[mantrix]

Developers don't even have confidence to build and sell 1000sqft units (only 3-4 room flat size) in certain areas. Almost every new launch at certain districts are MM. It shows that developers know that even a small 1000sq ft unit is going to cause PSF to fall and have resort to 300sq ft units to inflate PSF by easily 30%-40%. Nowadays, a 4-rm HDB flat is more spacious and luxurious than a new "condo". If wanna invest, only go to areas where new launches sizes are still ok - becos there is still room to downsize. Once units in an area for every launch has reached 300sq ft, u know the developers have run out of ideas to push the prices up anymore.

There is truth to this comment - now we see more and more MMs in CCR and RCR...when it's OCR's turn, then that's when big units are the rarirty and the premium...

[Regulators]

i think developers moving forward will try to keep quantums low, other wise they will get stuck longer with higher quantum large units. For small boutique developments, the oxley strategy makes a lot more sense. I think 55 devonshire will be another soldout mm development.

Developers don't even have confidence to build and sell 1000sqft units (only 3-4 room flat size) in certain areas. Almost every new launch at certain districts are MM. It shows that developers know that even a small 1000sq ft unit is going to cause PSF to fall and have resort to 300sq ft units to inflate PSF by easily 30%-40%. Nowadays, a 4-rm HDB flat is more spacious and luxurious than a new "condo". If wanna invest, only go to areas where new launches sizes are still ok - becos there is still room to downsize. Once units in an area for every launch has reached 300sq ft, u know the developers have run out of ideas to push the prices up anymore.

[Regulators]

Think of it this way, years ago before mm came into the picture, certain areas are meant only for the really rich, but developers going small gives hdb upgraders a chance to buy a piece of orchard, river valley and devonshire. Such mm projects in prime districts will continue to be sellout projects to cater to people that have been long deprived of getting a piece of action in prime districts.

[kane]

Think of it this way, years ago before mm came into the picture, certain areas are meant only for the really rich, but developers going small gives hdb upgraders a chance to buy a piece of orchard, river valley and devonshire. Such mm projects in prime districts will continue to be sellout projects to cater to people that have been long deprived of getting a piece of action in prime districts.

and the birth rate continues to trend down due to space constraints? The new generation appear to me more conscious about brand and image than having the hardship of starting a family and especially raising kids.

[teddybear]

Yes seems to be the case now. The younger generation rather buy a smaller size property (even a MM) in branded location than a much bigger size property in HDB heartland areas for the same absolute price. Cheapness in $PSF is more a reason not to buy! Is it any wonder why all the MMs hitting super high $PSF?

and the birth rate continues to trend down due to space constraints? The new generation appear to me more conscious about brand and image than having the hardship of starting a family and especially raising kids.

[Regulators]

some people have the mentality that bringing kids into this world is causing them to suffer, so why have kids? Some say that having kids can be a joy, but joy to who? All human come into this world is mostly suffering than enjoyment for them. This idea may be quite extreme, but there is justifiable truth to it]

and the birth rate continues to trend down due to space constraints? The new generation appear to me more conscious about brand and image than having the hardship of starting a family and especially raising kids.

[kane]

actually, if they're even abled bodied and can move around freely, earn a living and socialise with friends, that is already an enjoyment. Kids can be a whole lot more fun with the interaction.

suffering is when a person lying on a hospital bed and can hardly move around for prolonged periods. by then, the person would realise whether he has 6 or 7 zeros in his bank counts for nothing other than paying the hospital bill which probably $200,000 should suffice for most treatments.

actually, it boils down to the half empty half full argument. i had a brief glimpse of what suffering was and it is no fun that's for sure.

[spikey69]

haha...my agent was cursing and swearing at MBT's announcement when we met up yesterday morning...

[Antz621]

haha...my agent was cursing and swearing at MBT's announcement when we met up yesterday morning...

The recent months bring zero good news and all bad news to them. The same goes for Car Showroom agents. Well they had their share of happy hour the last few years. Its time to swallow the pill!

[kingkong1984]

Yup, stocks retreating also... Economy cooling.... Inflation to be arrested,

Buy toto Lor...

[focus]

Yes seems to be the case now. The younger generation rather buy a smaller size property (even a MM) in branded location than a much bigger size property in HDB heartland areas for the same absolute price. Cheapness in $PSF is more a reason not to buy! Is it any wonder why all the MMs hitting super high $PSF?

Quite true. my bank RM rents a city MM with her beau and they wanted to buy over the MM but cannot part with the unreasonable pricing. So some industry professional needs to keep up with their image if they want to appear credible.

[kingkong1984]

Quite true. my bank RM rents a city MM with her beau and they wanted to buy over the MM but cannot part with the unreasonable pricing. So some industry professional needs to keep up with their image if they want to appear credible.

Then mm in woodlands a good buy?

[mcmlxxvi]

What Mah meant was prices will go down from insane levels to stable. Not loss making.

[sh]

What Mah meant was prices will go down from insane levels to stable. Not loss making.

what he meant was prices will stabilize from "insane" to just high.... remember 80% of households own property....

[DaytonaSS]

i ready the article, i was asking myself......

WTF is he saying. Ask pple to wait for price to drop.... then cover his ass by asking he is not causing the price to drop as it is meaningless. Buyer happy but sellers unhappy.

Man, election coming suddenly he so on the ball. I clearly rem him say just few months ago , THERE IS NO BUBBLE! HDB is selling AT MARKET PRICE, BUILDING COST NOT IMPT/IRREVALENT.

u pple think he trying to win heartlander's vote? looks to me like more politically motivated article. if tampiness got alot of property agent he sure CUI

If minister of national development tell u wait for price to drop does it mean sure CUI?

[kingkong1984]

He didn't say drop right? Wait for goodies....more EC, dbss, bto coming up... Not cheap but affordable.

He said something about many people unhappy, which he would not do. He is trying to make people happy, maybe at different points in time. Now it's voters, later is.....rich will also be taken care of...

[focus]

Then mm in woodlands a good buy?

For the City MM.. at least I know directly there is some example of why there is demand

But for the OCR one, I think maybe someone else have to share example of why people want to live in MM there. I don't know.

[DaytonaSS]

He didn't say drop right? Wait for goodies....more EC, dbss, bto coming up... Not cheap but affordable.

He said something about many people unhappy, which he would not do. He is trying to make people happy, maybe at different points in time. Now it's voters, later is.....rich will also be taken care of...

Housing prices are rather high now... if you wait for a while, you might find more affordable properties,' Mr Mah was quoted in the paper as saying.

Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.

'When that happens, you will be thankful that you didn't buy right now!' he added.

how can pple be thankful if rising price is curbed only? pple will only be thankful is price is lower right?

[kingkong1984]

EC,s lah.... Near mrt too.

Then dbss... Etc, sure make money ones...

Everything is in context of first time buyers... G will take good care of them when they remain in power....

[kane]

Housing prices are rather high now... if you wait for a while, you might find more affordable properties,' Mr Mah was quoted in the paper as saying.

Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.

'When that happens, you will be thankful that you didn't buy right now!' he added.

how can pple be thankful if rising price is curbed only? pple will only be thankful is price is lower right?

so who will start the ball rolling for lower prices? Them or private sellers, that's the part I'll be interested to know. i exclude developers cos most don't have an excess of landbanks and units in the pipeline. it wasn't like 2007 when some of the new kids in the block were leveraged to the hilt in developing new apartments.