AsiaOne
Private-property prices fall sharply in core area
This suggests that some home buyers became more cautious after the
additional buyer's stamp duty took effect in December.
Thu, Feb 09, 2012
my paper
By Reico Wong
THE property cooling measures introduced late last year have started to show
a significant impact on the housing market.
Prices of private apartments and condominiums have dropped by as much as
10.2 per cent in the Core Central Region since the fourth quarter,
suggesting that home buyers became more cautious after the additional
buyer's stamp duty took effect in December.
The average selling price of such units has fallen to $1,600 per sq ft (psf)
from $1,781 psf in the fourth quarter, according to data released yesterday
by the Singapore Real Estate Exchange (SRX).
The rental prices of apartments and condominiums have also been affected,
with those of properties in the non-central areas hit the hardest.
The rental rates of units outside the central region have fallen 2.3 per
cent since the fourth quarter, from $2.99 psf to $2.92 psf.
However, rents for apartments and condominiums in the Core Central Region
are still climbing. They have risen 1.3 per cent since the fourth quarter,
from $4.68 psf to $4.74 psf.
This is likely to be just the start of a downtrend, the heads of property
agencies said yesterday at a housing forum organised by SRX. They added,
however, that a price crash is unlikely.
Private-property prices are expected to drop between 10 and 15 per cent this
year, said Dennis Wee Group, HSR Property Group, PropNex, DTZ, ERA Realty
and C&H Properties.
Prices of Housing Board resale flats are likely to ease between 3 and 5 per
cent this year, but could also fall by as much as 10 per cent if the
euro-zone debt crisis worsens, the companies said.
Mr Albert Lu, chief executive of C&H, said population growth - especially
that of permanent residents and new citizens - is slowing, leading to a fall
in housing demand.
He added that HDB prices have doubled over the past six years and are
unlikely to climb steeply soon, given the large number of Build-To-Order
(BTO) flats being pumped into the market.
He said the attractive prices of BTOs would draw buyers from the resale
market following remarks by National Development Minister Khaw Boon Wan that
he is looking into letting second- timers buy BTO flats.
When second-timers buy BTO flats, they will have to sell their flats, which
would further "dampen demand", said Mr Lu.
PropNex CEO Mohamed Ismail said buyers now enjoy more choice, with some
5,000 executive-condominium (EC) units slated for construction this year and
"a continued supply of government land sales".
There will be "supply, supply and more supply, be it of HDB flats, EC units
or mass-market properties", he said.
"I would not be surprised if public- housing prices remain the same, five
years from now," he said, adding that they might be only about 10 per cent
higher at most.
Purchases of private property by foreigners reached historic highs last
year, hitting 31 per cent, a two-fold increase from 10 years ago, according
to another report released yesterday by Savills.
Mainland Chinese were the top buyers, making up 28 per cent of all purchases
by foreigners, with Indonesians accounting for just 18 per cent of all
foreign purchases.
Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee,
said: "Singapore is still one of the best cities in Asia to put your money.
If prices drop about 10 per cent and conditions are favourable, buyers will
definitely come back."
reicow@...
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Originally Posted by Leeds
re-read that article, tell me this is not what it means 
