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Thread: Ghost town alert: Vacant homes up 32% to 16,877

  1. #1
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    Default Ghost town alert: Vacant homes up 32% to 16,877

    from SBR

    Ghost town alert: Vacant homes up 32% to 16,877

    It will get worse in two years.

    According to Savills, with more homes completed over the past year, the market has seen a signii cant rise in vacant units islandwide. From the trough in Q1/2011, the number of vacant units has increased by 32% from 12,740 to 16,877 units in Q3/2012, pushing the vacancy rate up from 4.9% to 6.1% over the same period. As of Q3 this year, the number of vacant condos stands at 14,198 units and vacant houses at 2,679 units.

    The vacancy rate in the Central region was 7.9% in Q3/2012, above the five-year average of 7.5%. Similarly, the vacancy rates in the eastern and western regions of Singapore were 4.5% and 4.0% in Q3, higher than the 3.5% and 3.6% five-year averages respectively.

    The vacancy rate increases are in tandem with a surge in condo completions in these areas. Some major completions over the past year include Caspian (712 units) and Mi Casa (457 units) in the west; and Double Bay Residences (646 units), Waterfront Waves (405 units) and Optima (297 units) in the east. The completions in the Central region include Reflections (1,129 units), Floridian (336 units), The Trizon (289 units), Parvis (248 units), Viva (235units) and The Wharf (186 units).

    The number of vacant units is set to increase in the months ahead as an avalanche of new homes will be completed within the next two years. According to URA data, 91,869 new homes will be released to the market in the next i ve years, more than half of which have been sold. The growing supply of new homes poses a significant risk to investors who have bought private homes for rental investment, particularly if interest rates should rise.

    Although it has been reported that many new homes were bought for owner occupation, the emergence of shadow spaces when owners relocate into their new premises may prove to be an additional challenge for both the leasing and sales markets. If demand from population growth does not rise in tandem and interest rates start to rise, a signii cant rental correction cannot be discounted. The likelihood of an interest-rate spike is, however, small for the moment.


  2. #2
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    read from another thread that the condo can be easily filled for the next 10-20 years
    [B]I took the road less traveled by, and that has made all the difference.[/B] - Robert Frost quotes (American poet, 1874-1963)

  3. #3
    Music of the night

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    This seems to be consistent with rental going down or flat in October as well as forumers comment about empty units
    Ride at your own risk !!!

  4. #4
    ipropertyguru

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    Quote Originally Posted by phantom_opera
    This seems to be consistent with rental going down or flat in October as well as forumers comment about empty units
    Owners rather leave it empty then lowet rent. Owner can afford to hold.

  5. #5
    i'm Buaya ! Girls BEWARE !!...

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    aiya... mai kia...


    up by 30+%, not vacancy rate at 30+%... and,
    hdb whole flat rental so tight like what... condo rental sure got good support 1...

  6. #6
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    Quote Originally Posted by leesg123
    Owners rather leave it empty then lowet rent. Owner can afford to hold.
    there will be owner who lower the rent to keep it occupies.

  7. #7
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    Quote Originally Posted by leesg123
    Owners rather leave it empty then lowet rent. Owner can afford to hold.

    why leave it empty? As long as the rental still bring in some net income, most people will rent out rather than leave it empty.

  8. #8
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    ghost town?
    this report says 2013 property might climb another 10%


    Private property prices set to keep rising in 2013: Report

    Published on Dec 12, 2012

    By Esther Teo, Property Reporter


    SHARPLY rising land costs, strong developer balance sheets and low interest rates should all combine to make 2013 another halcyon year for the property industry, an expert said.

    [b]Overall private home prices are likely to keep climbing on the back of rising land costs, increasing by up to 10 per cent next year, [u]Savills Singapore research head Alan Cheong said[/u] in a report released yesterday.[/b]

    Non-landed mass market homes are expected to see the steepest rise of 10 to 15 per cent, while the luxury market may also enjoy a 3 to 5 per cent price gain, surpassing its previous peak in 2007.

    This is because astute buyers will continue to seek good buys in the luxury segment, as prices here are still lower than in Hong Kong, Mr Cheong added.

    The property market has enjoyed a banner year, with a record-breaking 19,792 new homes sold in the first 10 months of the year, surpassing the previous high of 16,292 for the whole of 2010.

    Executive condominiums (ECs) have also enjoyed a spectacular run, with more than 4,000 units expected to be sold by the end of the year - another record.

    Only 3,935 EC units were sold in 2010 and last year combined.

    "Due to a significant run-up in private condo prices, ECs will remain an attractive long-term investment asset, with demand probably surpassing that of 2012," the report noted.

    But tiny shoebox homes of 500 sq ft or less seem to have fallen out of favour with home buyers.

    The proportion of shoebox homes sold, out of all new condo sales, has fallen from a three-year peak of 21 per cent in the third quarter of last year to a low of just 7 per cent in the fourth quarter of this year.

    This is also well down from the three-year average of 14 per cent, Savills' noted.

    "The downtrend could be due to fewer shoebox units being built. There has also been an increase in demand for larger-sized units in tandem with the growth in wealth here," the report said.

    But the overall property market remains resilient and now has "too strong a momentum to stop", Mr Cheong added.

    Quantitative easing in the United States should see liquidity flowing into Asian economies like Singapore in search of a safe haven and currency appreciation.

    Coupled with rock-bottom interest rates that are likely to remain low next year, some fresh external demand could be anticipated, he said.

    However, this may be offset by local buying fatigue from the many new launches over the past years and increasing home completions.

    Barring further property measures, total primary sales may hover between 16,000 and 18,000 units next year, less than this year's likely record of 23,000 to 24,000 units, the report noted.

    [email][email protected][/email]

  9. #9
    Music of the night

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    need another 1-2m of falling rental to confirm the trend .... falling rental may not automatically translate the lower resale prices
    Ride at your own risk !!!

  10. #10
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    Quote Originally Posted by wt_know
    ghost town?
    this report says 2013 property might climb another 10%
    go to emerald hill ... there are 2 condos there ... almost empty ...for 1 over years ...

    probably only a few units occupied ..

    i am not sure if they were sold and couldnt find tenants ... or not sold at all ...

    1 of them is 111 Emerald hill

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