Property prices still rising

[wenqing]

http://sg.yfittopostblog.com/2011/03...s-on-the-rise/

Property prices still rising

By iProperty.com Singapore – March 4th, 2011

Despite the cooling measures, property prices continue to increase (Image courtesy of Singapore Tourism Board).

With the Urban Redevelopment Authority (URA) releasing its figures about the price of Singapore property recently, now seems a good time to look back at a year where the Singapore government took unprecedented measures to attempt to cool the Singapore property market.

COV down

Cash-over-valuation (COV) for resale Housing Development Board (HDB) units — the amount that home owners often ask for above the official valuation of their property –- is falling from its 4Q 2010 average of $23,000, indicating that the Singapore government’s cooling measures may be beginning to take effect.

Prices on the Increase

However, figures from the Urban Redevelopment Authority (URA) — Singapore’s national land use planning authority — show that overall prices of private residential properties increased by 2.7% in 4Q 2010, compared with the 2.9% increase in the previous quarter.

In fact, for the whole of 2010, prices had increased by 17.6%, compared with the 1.8% rise in 2009. Worrying news, given that two sets of cooling measures were introduced in 2010 with the sole aim of reducing further property speculation that was pushing up process.


Private Property


The URA’s figures also revealed that prices of non-landed properties increased by 1.8% in 4th Quarter 2010, compared with the 1.6% increase in the previous quarter.

For the year 2010 as a whole, prices of non-landed properties increased by 14.0% — a massive increase that may indicate the first forming of a property bubble. Overall, in 4Q 2010, prices of apartments increased by 2.4%, while prices of condominiums increased by 1.6%.

Rental


There is mixed news for the rental market. While some expected the proviso in the recent cooling measures relating to the non-ownership of private property in Singapore or abroad by HDB-home owners to bring rental prices down, the figures beg to differ.

Rentals of private residential properties increased by 2.6% in 4th Quarter 2010, report URA, compared with the 3.6% increase in the previous quarter. Rental prices saw a massive hike for the year 2010 as a whole, with rentals of private residential properties rising by 17.9%.


For the most authoritative and comprehensive listing of properties for sale or rent, go to www.iProperty.com.sg


For more property news, real estate reports and celebrity home features, head to www.iproperty.com.sg/resources


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Singapore’s coolest homes
Are Singapore’s shophouses disappearing?
BTO flats in Yishun, Butik Batok launched


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[wenqing]

http://sg.yfittopostblog.com/2011/02...-city-to-rent/


Singapore property: World’s 5th most expensive to rent



There are only four countries in the world where it is now cheaper to rent a property other than Singapore. (Image courtesy of Singapore Tourism Board)


With property prices on an incremental rise throughout the whole of 2010 and with this trend showing no signs of slowing in 2011, it should come as no surprise to most Singaporeans that the country remains one of the most expensive places to rent a home both in Asia and the world.


The World’s 5th Most Expensive


Ranked 5th in the world, and 3rd in Asia, on the basis of the average price for a two-bedroom rental property, the city-state has officially one of the highest cost of living rates in the world. Only in Tokyo and Hong Kong does it cost more to rent a couple of bedrooms.


Singapore’s ranking is due to a 15 per cent increase in monthly rent to S$3,600 in 2010 for an unfurnished, two bedroom property, according to a report by ECA International, a human resources support company.


Expats Push up Prices


“The rebound in Singapore has been driven by a general recovery in house prices, along with increased demand,” says Lee Quane, regional director, ECA Asia.

Referring to foreign employees transferred to Singapore, who make up a large portion of the rental market here, Quane continued, saying:

“Assignee numbers are up again in Singapore following falls during the economic downturn. This has placed pressure on rental accommodation, particularly in areas popular with expatriates.”


For foreign companies who are relocating personnel to Singapore, ECA believes that exchange rate fluctuations play an important role when making direct comparisons of residential property for rent.

“The strengthening of the Singapore dollar against its American counterpart has contributed to the relative increase in accommodation costs — when Singapore rents are quoted in local currency they have increased at the lower, albeit significant, rate of 9 percent year-on-year,” says Mr Quane.


Asia’s Most Expensive Cities


Want to find out where you might get a bit more bedroom (or less) for your buck? Asia’s top 19 most expensive cities in which to rent are:


1 Tokyo
2 Hong Kong
3 Singapore
4 Seoul
5 Shanghai
6 Hanoi
7 Bangkok
8 Mumbai
9 Jakarta
10 Beijing
11 Ho Chi Minh City
12 Manila
13 Taipei
14 Kuala Lumpur
15 Guangzhou
16 New Delhi
17 Suzhou
18 Shenzhen
19 Karachi


Can Singaporeans Afford to Rent?


The report is focused primarily on expatriates renting in Singapore, but it does also highlight why many young Singaporeans don’t move out from their parent’s homes: they simply can’t afford to.


Regardless of cultural or religious ties that keep young Singaporeans at home -– unlike in many Western countries, where most young people leave home to go to university and then move out on their own accord in their early twenties, or co-habit with their partner before buying a house –- the sheer cost of renting on a graduate’s salary means most unmarried Singaporeans are yet to fly the proverbial nest.


What do you think? Is renting a property just too expensive to justify -– regardless of the relative freedom it might bring you?


Are more Singaporeans staying at home for longer than previously, and what does this trend mean?


For the most authoritative and comprehensive listing of properties for sale or rent, go to www.iProperty.com.sg

For more property news, real estate reports and celebrity home features, head to www.iproperty.com.sg/resources

• Singapore’s coolest homes
• Are Singapore’s shophouses disappearing?
• BTO flats in Yishun, Butik Batok launched

Follow Yahoo! News on Twitter and become a fan on Facebook.

[mcmlxxvi]

Average 2BR @ $3600??? Sure or not...

I think $3K can get comfortable 2BR.... maybe City Fringe... if further out, $2.5-2.8K does it.

[kane]

With the hype generated by the media, I think we'll see 50% LTV sooner rather than later.

[Geylang OKT]

Honest mistake, let's move on

[kane]

With those tough policies, there are probably mostly genuine upgraders and long term investors left moving this market.

[phantom_opera]

Agents might even use the potential lowering of LTV ratio to rush upgraders to commit now rather than later. That's why H2o selling so well

Then when it is at 50%, agents will say buy now, otherwise will be 40%

Some upgraders will be priced out of the market but they will start cursing if price goes up further

We are China II, a property market that never say die

It is time to up CPF OA to 4% ... then I think property market will cool down automatically.

[teddybear]

These "genuine upgraders" very funny isn't it? Buy H2O in Sengkang ave $920 psf in ulu ulu "birds don't want to lay egg location" and still have to wait for another 3 years to TOP but don't want to buy e.g. The 2-years old Quartz in Buangkok beside Buangkok MRT station and lots of shops & eateries nearby for ave $8xx psf.
If Govt think price too high (which is true only for new launch properties), should just target the new launch properties mah, blanket cooling policy also affect the cheap resale units, seem strange?

With those tough policies, there are probably mostly genuine upgraders and long term investors left moving this market.

[mantrix]

Agents might even use the potential lowering of LTV ratio to rush upgraders to commit now rather than later. That's why H2o selling so well

Then when it is at 50%, agents will say buy now, otherwise will be 40%

Some upgraders will be priced out of the market but they will start cursing if price goes up further

We are China II, a property market that never say die

that's a fair insight - problem is using LTV is not going to solve the issue of escalating prop prices. MBT will do better using other measures to control the situation

[phantom_opera]

These "genuine upgraders" very funny isn't it? Buy H2O in Sengkang ave $920 psf in ulu ulu "birds don't want to lay egg location" and still have to wait for another 3 years to TOP but don't want to buy e.g. The 2-years old Quartz in Buangkok beside Buangkok MRT station and lots of shops & eateries nearby for ave $8xx psf.
If Govt think this is not right, should just target the new sales mah, blanket policy also affect the cheap resale units, seem strange?

Quartz quantum big, 8XXpsf X 1044sqft = 900k+, H2o 743sqft X 1000psf only 743k leh And they cannot afford D Leedon 6XXsqft at 1,600psf hah hah

[kane]

Exactly, quartz has 24hr ntuc and kopitiam next to year and offers immediate rental. But still people prefer brand new. And the price index is driven by new launches. If they chart the resale market they'll probably have seem a flat line since Sep last year.

[fooblackie]

Quartz quantum big, 8XXpsf X 1044sqft = 900k+, H2o 743sqft X 1000psf only 743k leh And they cannot afford D Leedon 6XXsqft at 1,600psf hah hah

agreed that the quantum factor makes H2O looks affordable, psf notwithstanding.

however, there is an obvious no-brainer issue that a 743sqft unit is almost 30% smaller than a 1044 sqft unit. 1044sqft is probably a minimium decent-sized liveable unit.

If investors are getting this smaller-sized unit to rent out, i seriously wonder who will rent it and at what price? the rental yield is almost certaintly going to be miserable based this ulu location.

i will go for the quartz or compass hgts anytime. Location and amenities plus gd rental yield wins it hands down.

The only thing about H2O is that it is going to to brand new.

[teddybear]

I don't think the H2O buyers buy because of "brand new" factor. There is absolutely little reason to buy a 743 sqft 2-bedders at higher $psf at such lousy location (despite cheaper price but only slightly cheaper) for own stay as the size is just too small to be liveable with 2 bedrooms + living + dinning! This smell more like speculation at play? Buy to sell to the next greater fool regardless of whether the "good" is of any use/value to justify buying this "good"?
The 4th cooling measures are not "cooling" that because the "cooling" measure is not targeted at the "new launch speculation" but a blanket measure that hit resale properties as well that are actually so much cheaper (not considered at "run-away" prices, only "new launch" prices have ran-away!). If Singapore Govt can have "targeted" policies to dish out subsidies to the poor (and thus not benefiting those who are wealthy-enough to take care of themselves), don't understand why they cannot come out "targeted" cooling measures to just target this "new launch" property prices that have ran-away (instead of "blanket" cooling measures which is really ineffective!)

agreed that the quantum factor makes H2O looks affordable, psf notwithstanding.

however, there is an obvious no-brainer issue that a 743sqft unit is almost 30% smaller than a 1044 sqft unit. 1044sqft is probably a minimium decent-sized liveable unit.

If investors are getting this smaller-sized unit to rent out, i seriously wonder who will rent it and at what price? the rental yield is almost certaintly going to be miserable based this ulu location.

i will go for the quartz or compass hgts anytime. Location and amenities plus gd rental yield wins it hands down.

The only thing about H2O is that it is going to to brand new.

[kane]

We use to think how is it even possible to live in the HK pigeon holes. Well, there'll be quite a number of families who will be trying it out in another few years.

[phantom_opera]

I am not saying H2o is a good investment but 743/797sqft could be livable for a young couple with a little kid isn't it? Do you prefer a bigger HDB facing MSCP or 25m from the next block or a smaller condo 797sqft with poolview/facilities? For HDB upgrader, any condo is better than HDB

Imagine the following:

Bought 4r HDB at 250k (with renovation) in 2006
Market value of HDB at 450k
Still owe HDB 200k
CPF OA 200k
Cash 100k
Car loan 50k

Buy H2o 2br at 720k, 40%+stamp duy close to 300k which must come out from cash + CPF OA ... already very stretched


If buy Quartz 900k+, cash + CPF must be close to 400k. Cannot afford already. Don't underestimate CDL, they have done their calculation

[proper-t]

If Govt think price too high (which is true only for new launch properties), should just target the new launch properties mah, blanket cooling policy also affect the cheap resale units, seem strange?

Why kill the golden goose ? Most new launches (especially in the suburbs) derive from GLS.

[ay123]

With the hype generated by the media, I think we'll see 50% LTV sooner rather than later.

60% LTV already cushion the "what if price crash" scenario. so if there is another round of measure, they should come up with other mean and not to lower the LTV again. is proven that is has not much impact. think the best is to stop the purchase of 3rd property onward. this will stop most transaction. govt should also target the developer than the buyer. the price increase is due to new launch not secondary market. make developer place $100million with govt before TOP to tighten their cashflow and stop them from placing high bid

[devilplate]

I am not saying H2o is a good investment but 743/797sqft could be livable for a young couple with a little kid isn't it? Do you prefer a bigger HDB facing MSCP or 25m from the next block or a smaller condo 797sqft with poolview/facilities? For HDB upgrader, any condo is better than HDB

Imagine the following:

Bought 4r HDB at 250k (with renovation) in 2006
Market value of HDB at 450k
Still owe HDB 200k
CPF OA 200k
Cash 100k
Car loan 50k

Buy H2o 2br at 720k, 40%+stamp duy close to 300k which must come out from cash + CPF OA ... already very stretched


If buy Quartz 900k+, cash + CPF must be close to 400k. Cannot afford already. Don't underestimate CDL, they have done their calculation

ok den wat about those who bot the 3bedders in H20.....? 4bedders buyers cud be due to the river view....but 3bedders got nothing unique....hehe

[phantom_opera]

ok den wat about those who bot the 3bedders in H20.....? 4bedders buyers cud be due to the river view....but 3bedders got nothing unique....hehe

That one probably herd followers with more cash/cpf, friends/relatives buy so just follow loh

I would think 3br will move more slowly compared to 2br and 4br with river view.

[devilplate]

is proven that is has not much impact. think the best is to stop the purchase of 3rd property onward. this will stop most transaction. govt should also target the developer than the buyer. the price increase is due to new launch not secondary market. make developer place $100million with govt before TOP to tighten their cashflow and stop them from placing high bid

dun anyhow suggest! stop purchase of 3rd ppty will be super super drastic and cfm affect resale as well....teddy will be super angry!

as for 100mil deposit....small small case for big developers la.....

many over here wish to curb runaway prices in new launches and hope resale prices will grow steadily? start the SSD upon TOP lor....haha.....buyers CFM look at resale market

[phantom_opera]

Stop 3rd property purchase? Be prepared that shares of CAPL and Keppel Land plunged by 10% overnight For rich mainland Chinese, D Leedon is probably their 10th property

[amk]

... start the SSD upon TOP lor....

excellent suggestion

[hopeful]

dun anyhow suggest! stop purchase of 3rd ppty will be super super drastic and cfm affect resale as well....teddy will be super angry!

as for 100mil deposit....small small case for big developers la.....

many over here wish to curb runaway prices in new launches and hope resale prices will grow steadily? start the SSD upon TOP lor....haha.....buyers CFM look at resale market

between launch and TOP, can still speculate. Anyway, buyers at TOP are usually long term investors already, so SSD no effect

[peterng8]

when there is a genuine demand for investment or hedging inflation, how can any party keeps on suppressing it artificially by introducing more and more policies...one disadv of doing so will indirectly force the money to go to overseas property market...who benefit this if overseas investment fails as not every country has good governance as in Singapore? some property investment failure by singaporean has happened involving our neigbouring country...those singaporean still cannot get their moeny or see their property investment realise either till now...

things will change after erection...price will be up further this year but transaction volume stable..

[Wild Falcon]

Got effect one. Imagine SSD goes on and on after TOP over a long holding period. Even serious investors will be sianz.

between launch and TOP, can still speculate. Anyway, buyers at TOP are usually long term investors already, so SSD no effect

[Wild Falcon]

Redas so powderful... I doubt new measures will be targeted at new launches...

====
For true picture, Redas to highlight its shades

(SINGAPORE) The Real Estate Developers' Association of Singapore (Redas) has set up a new unit to conduct targeted research into issues that concern Singapore's property market.

Among various things, the working group will examine the factors that drive demand for various segments of the residential property market. With this, Redas hopes that future government measures to cool the market, if there are any, can be calibrated to target specific market segments. The working group will comprise Redas members as well as analysts and researchers from property firms such as CB Richard Ellis, Cushman & Wakefield, DTZ, Jones Lang LaSalle, Knight Frank and Savills.

'With the market situation so fluid, it is time that we set up this working group,' Redas chief executive Steven Choo told BT when contacted. 'We need to have a better handle on a lot of issues.'
He added that more such focus groups could be put together in the future to examine specific topics. Dr Choo is heading the research working group, which was set up after a Redas meeting last week.

For starters, the group will work on coming up with a fresh way of classifying private homes in Singapore and breaking down the pool of properties into categories such as luxury, high-end, mid-tier, and mass-market.

Right now, the Urban Redevelopment Authority (URA) classifies private homes in Singapore by location to compute its quarterly property price index. URA's three geographic categories are the core central region, rest of central region, and outside central region.

But in addition to location, Redas's working group will consider factors such as the amenities and design features of developments and the increased popularity of certain areas, which has translated into higher property prices. Not all estates within URA's outside central region are mass-market locations, industry players have said. It is also possible that the group could create an index to track prices in a particular segment.

After classifying the properties, the working group intends to analyse the demand drivers for each market segment. It will also look at construction costs and issues of sustainability.

BT understands that Redas is concerned about the possibility of another round of anti-speculation measures from the government. Last week, a monthly index compiled by the National University of Singapore showed that prices of non-landed private homes rose 2.6 per cent in January - despite the government announcing more demand-side cooling measures in the middle of the month. Private home prices rose 17.6 per cent last year, according to URA's official index.

National Development Minister Mah Bow Tan also told Parliament last week that the government is 'determined to do whatever is necessary to maintain market stability'. Dr Choo added that Redas is also setting up the new working group in line with its 'twin focus' to educate as well as advocate for the real estate industry at large.


Last year, the industry body teamed up with the National University of Singapore's Department of Real Estate in a historic move to develop a real estate sentiment index. The index is based on a quarterly structured-questionnaire survey conducted among senior executives of Redas member firms - mostly developers but also property consultants, architects, quantity surveyors and other professionals.
Source: Business Times © Singapore Press Holdings Ltd

[fooblackie]

I am not saying H2o is a good investment but 743/797sqft could be livable for a young couple with a little kid isn't it? Do you prefer a bigger HDB facing MSCP or 25m from the next block or a smaller condo 797sqft with poolview/facilities? For HDB upgrader, any condo is better than HDB

Imagine the following:

Bought 4r HDB at 250k (with renovation) in 2006
Market value of HDB at 450k
Still owe HDB 200k
CPF OA 200k
Cash 100k
Car loan 50k

Buy H2o 2br at 720k, 40%+stamp duy close to 300k which must come out from cash + CPF OA ... already very stretched


If buy Quartz 900k+, cash + CPF must be close to 400k. Cannot afford already. Don't underestimate CDL, they have done their calculation

yeah, your compt makes sense.

The affordability of these small sized units does have appeal. But honestly downsizing from a HDB to afford a smaller sized condo does have its drawbacks. In my view, Sub 800sqft units are really too small, even for a small family. If single or couple w/o kid i think barely liveable.

That's why for longer term prospect esp when more kids (about 2) come, a bigger place is needed. So this makes sense to go for the likes of Quartz.

The real issue is the false sense of "affordability" by these small sized unit. This preys on Singaporeans' desire to own a pte ppty.

[phantom_opera]

yeah, your compt makes sense.

The affordability of these small sized units does have appeal. But honestly downsizing from a HDB to afford a smaller sized condo does have its drawbacks. In my view, Sub 800sqft units are really too small, even for a small family. If single or couple w/o kid i think barely liveable.

That's why for longer term prospect esp when more kids (about 2) come, a bigger place is needed. So this makes sense to go for the likes of Quartz.

The real issue is the false sense of "affordability" by these small sized unit. This preys on Singaporeans' desire to own a pte ppty.

Average Hong Kong flat size is 600sqft woh. And technology has make efficient use of space easier e.g. last time you have the huge CRT TV but now you have the super thin LED TV to hang on your living hall. Last time you have this huge desktop 386 and many books with huge bookshelf with thousands of records/CDs, now you have iPad usable on a kitchen top. Last time living in suburbs means cooking at home, now can eat out at malls at suburbs like Compass Pt, NEX, Tampines, Jurong Point so kitchen small small to cook noodle and bake cookie enough.

[fooblackie]

Average Hong Kong flat size is 600sqft woh. And technology has make efficient use of space easier e.g. last time you have the huge CRT TV but now you have the super thin LED TV to hang on your living hall. Last time you have this huge desktop 386 and many books with huge bookshelf with thousands of records/CDs, now you have iPad usable on a kitchen top. Last time living in suburbs means cooking at home, now can eat out at malls at suburbs like Compass Pt, NEX, Tampines, Jurong Point so kitchen small small to cook noodle and bake cookie enough.

pardon my "traditional" views. You are modern and forward looking

[devilplate]

Average Hong Kong flat size is 600sqft woh. And technology has make efficient use of space easier e.g. last time you have the huge CRT TV but now you have the super thin LED TV to hang on your living hall. Last time you have this huge desktop 386 and many books with huge bookshelf with thousands of records/CDs, now you have iPad usable on a kitchen top. Last time living in suburbs means cooking at home, now can eat out at malls at suburbs like Compass Pt, NEX, Tampines, Jurong Point so kitchen small small to cook noodle and bake cookie enough.

gd points....but den HK dun hf 'affordable gd sized HDB BTO' for their local folks rite?

SG apts can nvr be as small as HK