Resale prices of private homes down 0.4% in April: SRX

[taggy]

http://www.channelnewsasia.com/news/...4-/670082.html

SINGAPORE: Resale prices of private homes declined marginally by 0.4 per cent in April compared to March. Resale volumes also remained low, with 572 non-landed units transacted compared to 614 in the previous month.
On a year-on-year basis, the resale volume recorded in April represented a more than 50 per cent drop from the same period last year.
This is according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX).
The SRX also said that prices of resale non-landed private homes in the city area and city fringes dropped 1.9 per cent over the previous month.
Prices of those in the city area fell for the fourth consecutive month to an average of S$1,722 per square foot. Prices of those in the city fringes fetched SS$1,267 per square foot. In contrast, resale prices of private homes in the suburbs saw a 1.0 per cent increase to reach an average per square foot price of S$1,022 in April.
Meanwhile, overall rental prices for non-landed private homes in April slipped by 1.0 per cent compared to March.
On the public housing front, overall cash-over-valuation (COV) for HDB resale flats dropped S$1,000 to end at S$30,000 in April. This was the lowest monthly COV since September 2012.
However, the median resale price of HDB flats continued its uptrend to reach S$465,000 in April, up 1.1 per cent from S$460,000 in March.
According to flash figures, resale transaction volumes for HDB flats remained fairly stable in April with 1,271 HDB flats sold.


- CNA/ac


i m wondering why no one discussing this news

[danguard]

More pple waiting at the sideline then committing ... After all how many time can the average household buy property on their lifetime .. Like me like that just keep waiting and thinking loh

[Arcachon]

Try removing all the CMs and see how many still waiting at the sideline.

The last CM, bank willing to loan to me with LTV 60% and pay out in 6 yrs.

Just remove one CM you will see the Tsunami.

[RCT]

What CM? Did the government restrict u from buying house? They only restrict the loan and increase tax only.. If one can really afford the house, I think those CM will not have any effect..

[phantom_opera]

following correction in Hong Kong

but Dow at 15k plus Cheap Yen could reignite animal spirit in may

[henryhk]

Make the garment and the discontented people happy a bit.....if not CM 8 come again.....hahaha

[lionhill]

diffcult to conclude that a crash is impending because a crash usually starts from price dropping in suburbia.

CCR is dropping because of the quantum and the SSD for 2nd local buyers and foreigners. OCR is rising because there is still excessive cash.

Whether the overall is dropping or rising depends on the weights and the number of CCR, OCR transactions?

[kane]

What CM? Did the government restrict u from buying house? They only restrict the loan and increase tax only.. If one can really afford the house, I think those CM will not have any effect..

Extra 7 or 10% is a sizeable sum that eats into future profits. Even if can afford, they could be better use of capital.

[chiaberry]

Extra 7 or 10% is a sizeable sum that eats into future profits. Even if can afford, they could be better use of capital.

Agreed. My year end extra funds from 2012 used to buy First REIT @ 1.06. Now 1.425.

I know some forum members condemn REITs but one cannot take a blinkered attitude. Just because you lost $ on certain investments in the past, doesn't mean that you can't go in again as the investment climate is changing all the time. You can't win on investments all the time. If you are expecting to always make money, sorry this is not realistic. You have to take a longer term view.

I bought Parkway Life REIT at IPO when they were not popular and I was given an extra allocation because there were not enough takers. IPO price ? around 1.3+ now ? 2.7+. That's not counting the yummy dividends received all these years.

[princess_morbucks]

Agreed. My year end extra funds from 2012 used to buy First REIT @ 1.06. Now 1.425.

I know some forum members condemn REITs but one cannot take a blinkered attitude. Just because you lost $ on certain investments in the past, doesn't mean that you can't go in again as the investment climate is changing all the time. You can't win on investments all the time. If you are expecting to always make money, sorry this is not realistic. You have to take a longer term view.

I bought Parkway Life REIT at IPO when they were not popular and I was given an extra allocation because there were not enough takers. IPO price ? around 1.3+ now ? 2.7+. That's not counting the yummy dividends received all these years.

Sis, you really like hospital reits!
Reits are rising like nobody's business.
The first reit boss is buying his share of first reit too.
I guess he really loves his company's reit.

[hyenergix]

Agreed. My year end extra funds from 2012 used to buy First REIT @ 1.06. Now 1.425.

I know some forum members condemn REITs but one cannot take a blinkered attitude. Just because you lost $ on certain investments in the past, doesn't mean that you can't go in again as the investment climate is changing all the time. You can't win on investments all the time. If you are expecting to always make money, sorry this is not realistic. You have to take a longer term view.

I bought Parkway Life REIT at IPO when they were not popular and I was given an extra allocation because there were not enough takers. IPO price ? around 1.3+ now ? 2.7+. That's not counting the yummy dividends received all these years.

Thanks to REITS, inflation is going higher and higher.

[chiaberry]

Inflation is a killer.

Since Sis finds it no longer worthwhile to buy property (object in principle to handing $ over so easily to gah-men), has to find other places to park $$$.

[DKSG]

I think it is also good to be humble and not disclose personal gains/profits explicitly in the forum.

DKSG

[DKSG]

Lately Office Boy noticed that many sellers pull their units out from the market.

A quick check for PCs in a few developments in PropGuru shows very very few units up for sale.

I want to check with other forumers here whether you all notice this trend ?

Or maybe Office Boy is out-dated about this observation.

DKSG

[kane]

That's been the case since SSD was implenented no?

[dtrax]

interacted with a few biz pple (non-citizens), a few of them who bot properties even after CM, all shout damn heart pain gotta pay the 10% absd but in the end still suck thumb and guai guai buy.. but from what I tell many still hoarding cash n hooting for their chewren

[wind30]

More pple waiting at the sideline then committing ... After all how many time can the average household buy property on their lifetime .. Like me like that just keep waiting and thinking loh

I am 38. In my short working life, good times to buy were 2001-2005, 2009. There is probably two periods when I could buy. probably more too come...

[wind30]

Try removing all the CMs and see how many still waiting at the sideline.

The last CM, bank willing to loan to me with LTV 60% and pay out in 6 yrs.

Just remove one CM you will see the Tsunami.

err.... when they start removing CM, I will bet you 100% that there will be no Tsumami...

same case now, so many CM also very hard to stop buying. Property is a cycle lah... once it starts going downhill, you think removing one CM can make any diff?

IF prices are falling, you think bank loan you 100% you want to buy meh?

[DKSG]

interacted with a few biz pple (non-citizens), a few of them who bot properties even after CM, all shout damn heart pain gotta pay the 10% absd but in the end still suck thumb and guai guai buy.. but from what I tell many still hoarding cash n hooting for their chewren

Previously, I always say volume precedes price movements, if volume starts to drop, then prices will start to drop soon.

But this time round because of all the CMs, do you think my theory may go wrong ? This is because as volume starts to slow down for resale, we are seeing more and more record prices being hit. I checked quite few PCs and the last done are all record prices and these are within the last 2 months - Mar/Apr.

I know dtrax is not only good at screaming, but a smart thinker too! Any thoughts ?

DKSG

[chiaberry]

I think it is also good to be humble and not disclose personal gains/profits explicitly in the forum.

DKSG

Just sharing that there are alternative investments to property that can give income and capital gains. Not only property. Especially at a time when the Govt is trying hard to curb returns from property. We have to divest. We can no longer leverage as much as before for property.

Sorry. I must take a lesson in humility from the best Office Boy.

I am one of the best Office Boy (pai seh to say that man!) around because a few of my colleagues made hundreds of thousands just taking advice from me.]

[Arcachon]

Lately Office Boy noticed that many sellers pull their units out from the market.

A quick check for PCs in a few developments in PropGuru shows very very few units up for sale.

I want to check with other forumers here whether you all notice this trend ?

Or maybe Office Boy is out-dated about this observation.

DKSG

If you have a HDB, you sell now can you buy later if you own a PC? No.

If you have a PC, you sell now can you buy later, if you also own a HDB?

All the CMs is making the seller to pull out their unit.

The only things that can make the seller to sell is when the interest go up till the rental income is below the mortgage's payment.

With QE3 unlimited, ECB, Japan, China printing money who else is not printing money.

[wind30]

If you have a HDB, you sell now can you buy later if you own a PC? No.

If you have a PC, you sell now can you buy later, if you also own a HDB?

All the CMs is making the seller to pull out their unit.

The only things that can make the seller to sell is when the interest go up till the rental income is below the mortgage's payment.

With QE3 unlimited, ECB, Japan, China printing money who else is not printing money.

but the point is the price is already adjusted to the near zero interest rates. no upside as interest rates cannot fall below zero. now is nobody want to buy and sell.

but any whiff of rising interest rates, everyone will be rushing for the exit. But I think some of the people already exited especially if they are not thinking of holding long term.

[Sam88]

but the point is the price is already adjusted to the near zero interest rates. no upside as interest rates cannot fall below zero. now is nobody want to buy and sell.

but any whiff of rising interest rates, everyone will be rushing for the exit. But I think some of the people already exited especially if they are not thinking of holding long term.

if there is no upside, why govt keep introducing additional CMs?

[RCT]

Why? Because if their citizen over-leveraged on property and all the major bank is over-exposed. When the interest rate suddenly spiked, the bank will be in trouble with all the bad loans.. Then MAS may have to step in to bill out the bank... Look at the amount of housing loan that the banks in Singapore is exposed. I don't think the government is coming out with all the CM to really make property more affordable. They are making sure that the financial market will not be screwed if the housing bubble suddenly burst.

We should know we are in a very risky balanced situation now. For the current market to maintain, we will need a low-interest rate, a high rental demand and a healthy economy at near 100% employment.

[lajia]

I agree...our economy is too closely linked with property as we have one of the highest owner rate in the world! Our market cannot compared to many because of the differences. A lot of ppl only look at one angle, and keep asking the garmen to make housing cheap....what is right is that they can control the hdb pricing. Then next, control over leveraging. And of course, the land supply....these are the 3 keys one. The rest, the more they do, the more messy it will get.
But what I don't get it is that they are continuing to sell land!!! They must stop before it is too late in my opinion. Unless, two things, open the gate wider & they know the interest rate will stay low for the next 5 yrs....concurrently, US takes another 2 yrs, Jap also take another 2 yrs and then Euro also take another 2yrs. If recovery in sight, full or high employment, then the risk is much much lower. For those who standby the fence, they will probably get in in another 2 yrs time...so it goes on and on....ideally....

I think no more CM, the last they will do is on the EC scheme! My opinion...

Why? Because if their citizen over-leveraged on property and all the major bank is over-exposed. When the interest rate suddenly spiked, the bank will be in trouble with all the bad loans.. Then MAS may have to step in to bill out the bank... Look at the amount of housing loan that the banks in Singapore is exposed. I don't think the government is coming out with all the CM to really make property more affordable. They are making sure that the financial market will not be screwed if the housing bubble suddenly burst.

We should know we are in a very risky balanced situation now. For the current market to maintain, we will need a low-interest rate, a high rental demand and a healthy economy at near 100% employment.

[lionhill]

Just sharing that there are alternative investments to property that can give income and capital gains. Not only property. Especially at a time when the Govt is trying hard to curb returns from property. We have to divest. We can no longer leverage as much as before for property.

Sorry. I must take a lesson in humility from the best Office Boy.

I am one of the best Office Boy (pai seh to say that man!) around because a few of my colleagues made hundreds of thousands just taking advice from me.]

Don't you think the retis are even more overpriced than residential properties?
When the market crash, reits will drop more than PCs. I still remember that First reits dropped to around 30 cents in 2009. Capitall mall once woth more than $5 in 2007. people bought that time is still underwater.

[Sam88]

Why? Because if their citizen over-leveraged on property and all the major bank is over-exposed. When the interest rate suddenly spiked, the bank will be in trouble with all the bad loans.. Then MAS may have to step in to bill out the bank... Look at the amount of housing loan that the banks in Singapore is exposed. I don't think the government is coming out with all the CM to really make property more affordable. They are making sure that the financial market will not be screwed if the housing bubble suddenly burst.

We should know we are in a very risky balanced situation now. For the current market to maintain, we will need a low-interest rate, a high rental demand and a healthy economy at near 100% employment.

CMs are put in place to prevent prices from shooting up in a big way. there is so much liquidity in the market, the money needs to search for something. with CM, money turned to commercial and stocks. stock shot thru the roof. if CM removed, prices will shoot up.

[heehee]

I agree with you because:
- there are no cooling measures for REITs & they have become so much overpriced + rental jacked up too high for tenants to survive over long term (eg when business drop &/or interest rate increase)
- the REITs are all leveraged to to tip, & they are able to do so on top of bank loans by corporate borrowings, issue of bonds etc!
- whatever gain & high yield you see are relative to the low interest rate & super leverage which are not expected to last.

Don't you think the retis are even more overpriced than residential properties?
When the market crash, reits will drop more than PCs. I still remember that First reits dropped to around 30 cents in 2009. Capitall mall once woth more than $5 in 2007. people bought that time is still underwater.

[danguard]

if there is no upside, why govt keep introducing additional CMs?

some truth in this - i also waiting to plunge in

[lionhill]

if there is no upside, why govt keep introducing additional CMs?

concur. I think the govt has done very well in managing the bubble of Properties. Otherwise, the price cannot be like this.

Looking back from 2004 or 2005, the rice price has almost doubled, the milk power price has been more than doubled.... In this sense, I suspect there are big bubbles in the property market.

However, looking at the starting salary of gradutes, there is only ~50% increase. it makes the property price look a bit pricy.

there were 911 in 2001, followed by recession, but there was no EM at that time. The mindset of people has also changed- at that time, few parent bought properties for their children, and people were not so interested in owning several PCs for passive income.

very complex. I think those economists need to design a new model to factor in all these factors.