Singapore Property Downcycle

[seletar]

http://sbr.com.sg/residential-proper....6F67bwMr.dpuf
Published 16 Sep 2014

Ghost month: New private home sales plunge 42.9% year-on-year in August


The Hungry Ghost did not bring good tidings to the country’s residential property developers. Data released by the Urban Redevelopment Authority revealed that new sales volume plunged 42.9% year-on-year to 432 units, from 756 units sold in the same month last year.

On a month-on-month basis, new sales volume fell by 15.1%, from 509 units in July 2014.

There were a total of 351 new private landed and non-landed units launched last month, representing a 64.1% plunge compared to August 2013 where 979 new units were launched.

According to Knight Frank, the lacklustre sales performance was due to the lack of new project launches in August which is traditionally a quiet period as developers seek to avoid the Hungry Ghost Month Festival, often perceived as an inauspicious period to buy a home.

Here’s more from Knight Frank:

In light of the existing Total Debt Servicing Ratio (TDSR) ruling and property cooling measures, prospective buyers are maintaining a wait-and-see approach in anticipation of further price changes. Buying sentiment for new launches is likely to remain fairly muted in light of the current cooling measures.

It is anticipated that total developers’ sales for the whole of 2014 could range between 8,000 to 9,000 units, falling short of the 10,000-unit mark.

[Arcachon]

[seletar]

http://sbr.com.sg/economy/news/asean....ITtX6R7C.dpuf
Published 16 Sep 2014

ASEAN meltdown: Singapore’s largest publicly traded companies at risk of default


Southeast Asia is suffering from critical debt levels and weak profitability.

Debt-to-earnings ratios rose last year at the fastest pace since 2011, as average return on capital at the biggest firms by market value fell for the first time since 2008, according to data compiled by Bloomberg. In the past four years, their debt rose 89 percent to the equivalent of $501 billion.

A report by Bloomberg reveals that average economic growth in Indonesia,Malaysia, Singapore, Philippines,Thailand and Vietnam fell to just under 5 percent last year from 8.5 percent in 2010, forcing companies to rely more on borrowing than earnings to finance their investments. Outbound acquisition activity from the Asean region has tripled in the past five years as companies sought growth abroad.

“More and more debt is financing less and less growth,” Singapore-based Xavier Jean, a director of corporate ratings for Standard & Poor’s, said in a Sept. 11 interview. “The only way for these companies to keep growing seems to be leveraging up.”

S&P released a study last week that said the escalating debt levels among Asean’s blue-chip companies will increase vulnerability when interest rates start to rise. Internal cash flows and cash balances funded only about half of the $300 billion the region’s largest companies spent on expansion and acquisitions between 2008 and the first quarter of 2014, S&P said. About $150 billion of debt was issued to bridge the gap.

Here’s more from Bloomberg:

Bigger, listed companies typically take on more debt at a faster pace than their private sector counterparts, S&P’s Jean said. That’s partly due to the cheaper cost of funding they’ve enjoyed over the last five years.

U.S. dollar borrowing costs have averaged 4.92 percent since September 2009, JPMorgan Chase & Co. indexes dating back to 2005 show. They averaged 6.70 percent the four years before that and climbed as high as 11.13 percent during the global financial crisis. Costs have risen 14 basis points this month, to 4.75 percent on Sept. 12. “As rates rise, these debt payments are going to become more expensive,” Jean said. “We’re calling attention especially because we’re seeing a lot of U.S. dollar bond transactions at very tight prices.”

[Kelonguni]

Revenge of the red fonts. Fast and furious.

[seletar]

http://sbr.com.sg/financial-services....0Y7kfMnZ.dpuf
Published 16 Sep 2014

Industry shocker: UOB’s non-performing housing loans spiked 34.2% in Q2



Residential NPLs are now at a 10-year high.

UOB took the banking sector by surprise when it revealed that its non-performing housing loans jumped 34.2% in the second quarter, taking NPLs to their highest level since 4Q04.

According to Maybank Kim Eng, the sharp spike in UOB’s housing NPLs is surprising given the perception that it is one of the more conservative home lenders in Singapore and only a slight year-to-date correction in Singapore’s home prices.

“We understand its NPLs were isolated to a group of borrowers who had invested in Turquoise, a high-end condominium project in Sentosa. According to URA data, two units at Turquoise changed hands in 2Q14 at 45% discounts to their launch prices. It stoked fears that it is a matter of time before default cases become widespread, undermining Singapore banks’ profitability that has been propped up by low charge-off rates,” noted the report.

[Arcachon]

The Red Red Red Red Font will be getting bigger soon.

4. We can’t put all false predictors in jail.

“I find it profoundly unethical to talk without doing, without exposure to harm, without having one’s skin in the game, without having something at risk.”

We all like to listen to the so-called experts making predictions about the property market – the media love it; the audience love it. These ‘experts’ and their predictions are fragile because they are exposed to prediction errors. Honestly, who can tell what is going to happen in the future?

Below are the media predictions and the reality of the property market in the 2000s and 1990s, extracted from No B.S. Guide to Property Investment.



But they don’t have to pay a price for their mistakes. In fact, in our history no one has ever been convicted by law because their projection figures or forecast trends are far from reality. No one has ever paid a price for a prediction error.

We can’t stop people from asking for predictions. We can’t stop experts from making false predictions. But we can at least request the predictors to eat their own cooking and have their skin in the game.

“Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have – or don’t have – in their portfolio.”

[seletar]

http://www.stproperty.sg/articles-pr...181008/page1/1

Bleak private home sales evoke memories of 2008

Number of units unsold at 15.1% last month, worse than in August 2008

The Straits Times - September 18, 2014


The sales gallery for the upscale Skyline @ Orchard Boulevard was deserted on Tuesday. By some indicators, the market is in worse shape than in the run-up to the 2008 global financial crisis. -- PHOTO: LIM YAOHUI FOR THE STRAITS TIMES


THE upscale Skyline @ Orchard Boulevard sums up the state of the private home market.

In the first eight months of the year, the 40-unit condominium has sold just one unit, leaving 34 units unsold.

The single sale in January was made at $3,362 per sq ft (psf) - far below the starting price of $3,900 psf at its June 2010 launch.

When The Straits Times visited on Tuesday, its sales gallery was completely deserted. This underscores the fact that, by some indicators, the market is in worse shape than it was in the run-up to the 2008 global financial crisis which hit in October that year.

The number of units launched but unsold rose to 15.1 per cent on Aug 31, worse than the 11.8 per cent in August 2008.



Vacancy rates at completed private residential projects are also higher, at 7.1 per cent at the end of the second quarter versus 6.1 per cent in 2008 at the same time.

Property consultants expect vacancy rates to rise, given a deluge of completed projects in the pipeline and the limited number of expats looking to rent.

"Most expats are also no longer on expatriate packages... While on local packages, they are more budget conscious and may even combine with others to lease a unit. The demand dynamics for rentals have changed," said CBRE research head Desmond Sim.

Some new completed projects may even see occupancy rates of just 60 per cent, versus the usual more than 90 per cent, said SLP International research head Nicholas Mak.

The low point of the year has been last month's private home sales figures, released on Monday, with just 432 units moved.

Buyer sentiment is bleak.

In central Singapore, projects such as Ardmore 3, Devonshire 8, Ferra at Leonie Hill, One Balmoral and TwentyOne Angullia Park had each sold fewer than 10 units as at Aug 31 - despite being on the market for more than a year.

Even in the suburbs, projects such as E Maison in Braddell Road and Singa Hills in Bedok had sold fewer than a quarter of their units at the end of last month.

Still, monthly sales for the past six months are generally above the corresponding months in 2008, and better than the worst of the global financial crisis, when monthly sales were just 105 in January 2009.

But underlying demand back then may still have been better than now, said Century 21 chief executive Ku Swee Yong.

In 2008, demand came from people flush with cash from collective sales in 2007, who needed a new home; but that element is gone today.

The market recovered fast as more foreigners started taking up permanent residency here, looking to Singapore as a safe haven. But cooling measures hit foreign buyers, Mr Ku said.

The total value of sales today is also likely lower given the greater popularity of one-bedroom units, he added.

"Moving into a time of high vacancies and uncertain yields, investors are expecting and will wait for lower prices."

[seletar]

http://sbr.com.sg/economy/news/singa....JeJdlrBs.dpuf
Published: 17 Sep 14

Singapore’s total trade hit with 4.7% contraction in August



This follows a 2.5% decline in July.

Data released today by the International Enterprise Singapore revealed that the country’s total trade fell by 4.7% year-on-year in August. On a seasonally adjusted basis, the level of total trade reached $80.5 billion in August, lower than July’s record of S$80.6 billion.

On a year-on-year basis, total exports declined by 1.2% in August, following the 1.6% contraction in July. Total imports also decreased by 8.6% last month following the 3.5% decline in July.

[seletar]

http://theindependent.sg/blog/2014/0...rty-market-is/

3 indications that show just how bad the Singapore residential property market is

September 17th, 2014 | by The Independent


In Jan 2014, I wrote about why this year could be turbulent for property market stakeholders. In the recent weeks, there were some reports on how quiet the high-end property market in Singapore is. A casual observer may think that this is just limited to the high-end sector; in reality, the market malaise is probably more wide spread than what many people realise.

For those who are wondering just how bad the market is, here are 3 indicators to shed some light on the health of the Singapore residential property sector.


Indicator 1: The Property Price Index is on a downward trend

If you have been following the property market news, you would have read that the URA private property price index (PPPI) has been on a downward trend. But exactly how much has it dropped by and for how long?

Based on Figure 1, it can be seen that prices in the private property market, as a whole, have been dropping for 9 months (i.e. 3 quarters) and the total drop has been about 3%. While some may feel that a drop of 3% is not much, URA PPPI is only one indicator. To have a more complete picture, we should look at how much transaction volume has dropped by.

Figure 1: URA PPPI chart (2013Q1 to 2014Q2)

Duration __URA PPPI__ % Change
2013Q1 ___ 213.2 _____ -
2013Q2 ___ 215.4 _____ 1.0%
2013Q3 ___ 216.3 _____ 0.4%
2013Q4 ___ 214.3 _____ -0.9%
2014Q1 ___ 211.6 _____ -1.3%
2014Q2 ___ 209.4 _____ -1.0%

Source: URA, Ascendant Assets Pte Ltd


Indicator 2: Significant drop in transaction volume

To give readers a sense of the transaction volume, a chart comparing the monthly changes between 2013 and 2014 is shown in Figure 2. Graphically, it can be seen that in some months, transaction volume in 2014 is less than half what it was for the same month a year ago.

Figure 2: Transaction volume comparison


Collectively, there were a total of 19,531 private property transactions from Jan 2013 to Aug 2013. In comparison, there were only 8,532 for the same period in 2014, which works out to be a drop of more then 56%


Indication 3: Number of unsold units is increasing

Some readers may argue that low transaction volume may not be representative of a lacklustre market, as there may not be that many units on sale to begin with. However, when we look at the number of unsold units in the market, it is observed to be increasing.

Based on URA’s data, it can be seen that the number of private residential units (including EC) under construction that were launched and remain unsold is on an upward trend (see Figure 3). As at 2014Q2, there were more than 6,300 units still left unsold. With more new developments coming on line in the next few quarters, this figure looks set to increase.

Figure 3:Private Residential and Executive Condominium Units Under Construction with Pre-requisites for Sale and are Launched but Unsold


Conclusion

In conclusion, we are still in early days and the lacklustre market is expected to last for some time. Hence you may want to maintain a healthy dose of scepticism whenever you hear anyone who tries to present the property market in a promising light.

[seletar]

http://www.businesstimes.com.sg/prem...uying-20140919
Business Times
Published September 19, 2014

Fed flags October end to bond buying

More hawkish tone prompts traders to switch out of Treasury bonds into dollars



FOR the Federal Reserve, this was the point of no return: an extraordinary half-decade of stimulus and rate cuts has almost certainly come to an end.

In her latest policy statement and press conference, Janet Yellen, the chairwoman of the central bank, said the Fed's monetary stimulus will end with the purchase of a final US$15 billion of bonds in October, adding that most Fed members now expect to hike rates some time in 2015.

While the Fed once again promised that rates would remain at extraordinarily low levels for a "considerable time", two of the ten voting board members - Dallas Fed president Richard Fisher and Philadelphia Fed president Charles Plosser - dissented on the rate decision largely because they didn't want to make that promise.

Even though the "tapering" of bond purchases was effectively a nine-month, slow-motion change in policy, the realisation that the Fed's mighty ship had now completed its volte-face caused fixed-income traders to buy dollars and sell Treasury bonds in the wake of the statement. Rising rates drag down the value of Treasury bonds but they increase the relative value of the US dollar, particularly when other nations - including those in the eurozone, Japan and China - are printing money to pump into their economies. The same day Ms Yellen described the end of the Fed's stimulus era, China reportedly started pumping billions of yuan into its commercial banks while October would be the first month of a bond buying programme by the European Central Bank.

In its statement, the Fed concluded that the US economy’s expansion has continued since its last meeting in July. In what was likely a nod to the surprisingly weak August jobs report, however, Ms Yellen reiterated concerns about “underutilization” of labour, one of the chairwoman’s main reservations about the outlook for growth.

One indication that the Fed is now more hawkish – or leaning toward rate hikes – was the change in the Fed board members’ own rate projections. The central bank now predicts the rate it charges commercial banks when it lends them money will move from zero currently to 3.75 percent by the end of 2017.

[seletar]

http://www.todayonline.com/business/...ply-hits-spore

Tidal wave of property supply hits S’pore

TODAY
Published: September 19, 2014


Investors should sell their residential investments in Singapore. The property market, which has been gradually declining, does not need any new action to tip it over. Just the sheer number of new homes being supplied both in Singapore and Iskandar will drive prices lower.

New private home sales in Singapore have plunged in the past three months to about 40 per cent of the monthly average of the past five years or so.

Since January 2010, the average number of homes sold by developers each month has exceeded 1,300 units. The total number of new homes sold in June, July and August were 531, 560 and 490, respectively, including executive condominiums (EC). Excluding the hybrid housing type, the respective numbers were 482, 509, and 432, respectively, Urban Redevelopment Authority (URA) and Century 21 (IPA) data showed.

Given seasonal factors, such as the Hungry Ghost Month and the quadrennial football World Cup, the three months of dismal private home sales will not be sufficient to render the residential sector a bear market. However, the downward trend can be confirmed by several other indicators.

The Housing and Development Board (HDB)’s resale price index, which has a direct impact on mass market private properties, has fallen 5.4 per cent over the past four quarters.

During the same period, the URA’s private residential price index slipped 3.4 per cent. The weakness is also reflected in the rental market, where median private non-landed rentals eased 1.1 per cent in the past four quarters to S$3.79 psf per month. Meanwhile, private residential occupancy rates fell to 92.9 per cent in the second quarter of this year from 93.9 per cent in the third quarter of last year. In absolute terms, the number of vacant units increased to 21,268 in the second quarter of this year from 17,459 in the third quarter of last year.

Taken together, it is evident that we experienced a slow decline over the past year. Will this gradual weakening lead to a soft landing? Or are we about to fall off the edge of a cliff? As a practising real estate agent, I find it tougher to hold up high rents for landlords. With the rising vacancy rates amid a stream of newly-completed properties, the competition for tenants is intense, especially with the Government tightening foreign employment.

Although some landlords have yet to tune themselves to this new reality, others have reacted quickly ahead of next year’s record high supply, which will further pressure rents.


Supply of HDB, EC UNITS and Private Residences

In the past 10 years, Singapore has added about 8,000 new private residential units per year. But next year, we can expect about 22,000 units to be completed and 24,000 the year after and at least 16,000 in 2017. The pressure on rents will be overwhelming. Lifting the property curbs will not help fill vacant apartments and improve rents.

The expected supply of new HDB flats and ECs is large as well. More than 25,000 units will be completed every year over the next three years. There are also many second-time new HDB buyers and those who are upgrading to ECs who are required by law to sell their current HDB flats when they collect the keys to their new flats or ECs. Unless a few of the cooling measures are lifted and the foreigner employment policies are relaxed, the HDB Resale Price Index and the URA Residential Price Index are set to decline at a faster pace with the onslaught of new, completed home completions, even after taking into account the need for infrastructure to keep pace with population growth.


Supply in Iskandar

We must also not forget the promise of lower-cost properties across the Causeway in Iskandar.

The numerous Iskandar residential projects launched in Singapore since 2010, in locations such as Puteri Harbour, Danga Bay, Tebrau, Medini, etc, are now being completed.

They are ready to compete for tenants from Singapore seeking to reduce their housing costs and who do not mind making the commute between the countries. I estimate that over the next four years, about 10,000 new homes will be added per year in Iskandar and some of these will find tenants from Singapore with their attractive rents.


In the past six months, there has been an increase in the number of mortgagee home sales, with several headline-grabbing ones involving luxury condominiums in Sentosa Cove and the prime District 9. During the luxury property boom from 2006 to 2008, about 60 per cent of top-end apartments were purchased by foreigners. Some have held on to their investments, but they are now feeling stifled as a result of the multiple rounds of cooling measures, weak property demand and the restricted ability to refinance under the current regime.

For those who are willing to take a long-term view, say, 15 years and beyond, landed homes and high-quality freehold properties in Districts 9 and 10 would remain safe bets as these sub-segments are limited in terms of current stock and future supply.

As for now and the immediate future, as I forecast in a commentary in this column last year (“The price war has begun”, Nov 8, 2013), sellers are lowering prices and this will continue to take its toll on investors.

I recommend that investors sell their residential investments before they are engulfed by the tidal wave of new supply.

[seletar]

http://www.stproperty.sg/articles-pr...-name/a/181515

A property launch in all but name

Times are hard, but cautious developers may be going overboard

The Straits Times - September 20, 2014
By: MELISSA TAN


YOU know times are hard in the property market when developers cannot even call a launch a launch.

Before sales of private homes slowed down so badly, developers would, with much fanfare, open a project for preview one weekend and launch it for sale the next.

These days, however, projects seem to spend a prolonged period moseying through an untold number of preliminary stages before they finally muster up the courage to take that big, scary step of making the sale official.

Their main goal throughout seems to be to keep the sale under the radar just in case it turns out to be a flop.

When they do finally launch it, they make only a smaller portion of the total number of units available for sale, so that they can proclaim high take-up rates.

Some may also proclaim that they have secured "commitments" from buyers to pick up units, which may or may not translate to actual sales.

Even if the project's showflat is already completed, many developers are happy to let dust collect.

Like spiders spinning a web, they now quietly complete their showflat first and then wait and wait. The hunt begins only once they believe enough interest from prospective buyers has been drummed up.

It starts off with a tentative and somewhat tense song and dance often known as the "VVIP preview", since clearly only one "V" no longer cuts it in these uncertain times.

This preview can stretch up to several weeks, and though it may make it sound rather exclusive, those not in the Tatler set do not have to fear being shut out.

As I have found over the months I spent visiting showflats as part of my job, "VVIP" pretty much applies to anyone who picked up an agent's call and looks capable of opening a bank account.

Having become extremely flexible in this regard, developers are balancing that out by being extra cautious in others.

This is completely understandable, given the moribund state of the property market - which is not within their control - and their need to keep the public perception of the project positive.

In their eagerness to do that, however, some developers could go somewhat overboard.

I can think of at least one new project where the developer insisted that marketing had not started yet, even though real estate agents had begun to distribute fliers for the condo and send out promotional e-mail.

At another project that had already begun sales, the developer took pains to steer clear of the taboo word. Rather than call it a "launch", it insisted on saying that units were "released" for sale to the public, which to me sounds no different.

Of course, private developers are free to call their project sales anything they want. The Urban Redevelopment Authority does not stipulate precise definitions for the word "launch" in its data dictionary available online.

But I cannot see how smokescreen tactics like that would truly help sales, which depend far more on the project's location, design and, of course, pricing.

After all, what's in a name? A launch by any other name would sell just as sweet - or poorly - as it would otherwise.

[seletar]

http://www.stproperty.sg/articles-pr...181487/page1/1

Rise in unsold housing units on city fringe

Developers forced to offer big discounts to spur sales

The Straits Times - September 22, 2014


There were about 300 units left unsold in total at the 360-unit Concourse Skyline (right) in Beach Road and the 1,040-unit The Interlace in Depot Road as at June 30. -- ST PHOTO: MARK CHEONG


THE property market's woes have spread from the luxury sector to more modestly priced homes on the city fringe as new loan curbs keep buyers in check.

Unsold units are piling up in areas such as Bukit Merah, Kallang and Marine Parade, with developers forced to dangle big discounts to move homes.

Homes in the area - dubbed the "rest of the central region" (RCR) in industry jargon - are right in the price range that leaves many buyers struggling to raise a mortgage, in the light of new rules that restrict lending.

"Developers of suburban condos have not needed to slash prices as most HDB upgraders find launch prices of about $1,000 per sq ft (psf) affordable. But developers of RCR non-landed homes have had to cut prices to fit the total debt servicing ratio (TDSR) limits of buyers," said R'ST Research director Ong Kah Seng.

Wealthy buyers of properties in the central city area generally do not require a loan and so are not affected by the TDSR, he added.

The city fringe area had 414 completed but unsold units islandwide as at June 30. This was 29 per cent of the national total and up from the 20 per cent or 250 such units at the end of last year.

The central city area accounted for 63 per cent of such units as at June 30, down from 70 per cent at the end of last year.

Colliers International research director Chia Siew Chuin believes the build-up in completed but unsold units on the city fringe could be due to the recent completion of large-scale projects.

"It is also more challenging to find buyers for projects in the (area) where homes are generally pricier than mass market condominium developments, especially in the light of the current weak market sentiment," said Ms Chia.

There were about 300 units left unsold in total at the 1,040-unit The Interlace in Depot Road and the 360-unit Concourse Skyline in Beach Road as at June 30. The Interlace obtained its temporary occupation permit (TOP) in the third quarter of last year, while Concourse Skyline received it in the first quarter of this year.

As at the end of last month, just six units had been sold at the 41-unit Riverside Melodies in St Michael's Road, which received its TOP in the second quarter.

Project launches on the city fringe have had a mixed reception as well. About a week ago, the 500-unit Highline Residences in Tiong Bahru sold about 80 per cent of the first 160 units released.

But the picture at older launches is less rosy. The 56-unit Cosmo Loft in Balestier, launched in May last year, had sold just five units as at Aug 31.

The 128-unit Fulcrum in Fort Road, which started selling units in April 2012, has moved just 17 units with its last sale in May last year. #1 Suites in Geylang, on the market for over a year, had sold just 38 of 112 units as at the end of last month.

"The pool of buyers who can afford RCR properties has definitely shrunk. Unit sizing and price quantum are even more critical areas to consider today to achieve sustainable sales," said Knight Frank Singapore research head Alice Tan.

[teddybear]

Don't any how say lah, OCR private property prices still holding up VERY WELL and is UP >140% vs 2009 lows................................................................................

http://theindependent.sg/blog/2014/0...rty-market-is/

3 indications that show just how bad the Singapore residential property market is

September 17th, 2014 | by The Independent


In Jan 2014, I wrote about why this year could be turbulent for property market stakeholders. In the recent weeks, there were some reports on how quiet the high-end property market in Singapore is. A casual observer may think that this is just limited to the high-end sector; in reality, the market malaise is probably more wide spread than what many people realise.

For those who are wondering just how bad the market is, here are 3 indicators to shed some light on the health of the Singapore residential property sector.


Indicator 1: The Property Price Index is on a downward trend

If you have been following the property market news, you would have read that the URA private property price index (PPPI) has been on a downward trend. But exactly how much has it dropped by and for how long?

Based on Figure 1, it can be seen that prices in the private property market, as a whole, have been dropping for 9 months (i.e. 3 quarters) and the total drop has been about 3%. While some may feel that a drop of 3% is not much, URA PPPI is only one indicator. To have a more complete picture, we should look at how much transaction volume has dropped by.

Figure 1: URA PPPI chart (2013Q1 to 2014Q2)

Duration __URA PPPI__ % Change
2013Q1 ___ 213.2 _____ -
2013Q2 ___ 215.4 _____ 1.0%
2013Q3 ___ 216.3 _____ 0.4%
2013Q4 ___ 214.3 _____ -0.9%
2014Q1 ___ 211.6 _____ -1.3%
2014Q2 ___ 209.4 _____ -1.0%

Source: URA, Ascendant Assets Pte Ltd


Indicator 2: Significant drop in transaction volume

To give readers a sense of the transaction volume, a chart comparing the monthly changes between 2013 and 2014 is shown in Figure 2. Graphically, it can be seen that in some months, transaction volume in 2014 is less than half what it was for the same month a year ago.

Figure 2: Transaction volume comparison


Collectively, there were a total of 19,531 private property transactions from Jan 2013 to Aug 2013. In comparison, there were only 8,532 for the same period in 2014, which works out to be a drop of more then 56%


Indication 3: Number of unsold units is increasing

Some readers may argue that low transaction volume may not be representative of a lacklustre market, as there may not be that many units on sale to begin with. However, when we look at the number of unsold units in the market, it is observed to be increasing.

Based on URA’s data, it can be seen that the number of private residential units (including EC) under construction that were launched and remain unsold is on an upward trend (see Figure 3). As at 2014Q2, there were more than 6,300 units still left unsold. With more new developments coming on line in the next few quarters, this figure looks set to increase.

Figure 3:Private Residential and Executive Condominium Units Under Construction with Pre-requisites for Sale and are Launched but Unsold


Conclusion

In conclusion, we are still in early days and the lacklustre market is expected to last for some time. Hence you may want to maintain a healthy dose of scepticism whenever you hear anyone who tries to present the property market in a promising light.

[Kelonguni]

Fed chief Bernanke having trouble refinancing his own home loan
Published on Oct 3, 2014 8:38 AM 0 0 0 0PRINT EMAIL
NEW YORK (Reuters) - Former U.S. Federal Reserve Chairman Ben Bernanke is having a "hard time" refinancing his home loan due to the tight credit conditions in the mortgage market.

"I recently tried to refinance my mortgage and I was unsuccessful in doing so," Bernanke said, speaking at a conference in Chicago, according to Bloomberg report on Thursday.

The Mortgage Bankers Association's said on Wednesday its seasonally adjusted index of refinancing applications fell 0.3 per cent, while the gauge of loan requests for home purchases, a leading indicator of home sales, were unchanged.

Bernanke also said the market for first-time home buyers was"not what it should be," Bloomberg reported. "The housing area is one area where regulation has not yet got it right," Bernanke said, according to the report.

[teddybear]

Wah, didn't know Fed Chief also so highly leveraged to take advantage of the low interest rate situation to make a bundle!!!!!!!!

Fed chief Bernanke having trouble refinancing his own home loan
Published on Oct 3, 2014 8:38 AM 0 0 0 0PRINT EMAIL
NEW YORK (Reuters) - Former U.S. Federal Reserve Chairman Ben Bernanke is having a "hard time" refinancing his home loan due to the tight credit conditions in the mortgage market.

"I recently tried to refinance my mortgage and I was unsuccessful in doing so," Bernanke said, speaking at a conference in Chicago, according to Bloomberg report on Thursday.

The Mortgage Bankers Association's said on Wednesday its seasonally adjusted index of refinancing applications fell 0.3 per cent, while the gauge of loan requests for home purchases, a leading indicator of home sales, were unchanged.

Bernanke also said the market for first-time home buyers was"not what it should be," Bloomberg reported. "The housing area is one area where regulation has not yet got it right," Bernanke said, according to the report.

[jwong71]

mr seletar:

I thought you were vested..??

[Allthepies]

It must be a good sign when you see all the negative news coming out. This can usually mean only 1 thing : ) Those unvested good luck : )

[seletar]

If there is a 50% cap on the use of CPF funds to finance housing, residential property prices could drop substantially ...


http://www.todayonline.com/singapore...monies-housing

Cap use of CPF monies for housing


Linking CPF monies to housing makes Singaporeans’ retirement funds vulnerable to the cyclical patterns of the property market. Photo: Bloomberg

TODAY
Published: 4:03 AM, September 24, 2014


At a recent seminar, Associate Professor Lum Sau Kim from the National University of Singapore (NUS) noted that the use of Central Provident Fund (CPF) monies for housing payment had constrained retirement adequacy.

“If so much of CPF funds are dedicated to housing, then we have poorly diversified household portfolios ... the nest egg that we have will be vulnerable to housing sector shocks and greater risks,” she said.

This raised an important question on whether the use of CPF savings for housing has been too liberal and whether it is time to impose limits to enhance Singaporeans’ retirement adequacy.

There are pros and cons to linking CPF to housing. The benefit is clear, for without the provision to use CPF to fund property loans, far fewer Singaporeans would be able to buy a home. Currently, home ownership rate stands at about 90 per cent, among the highest in the world.

However, on the flipside, linking CPF monies to housing makes Singaporeans’ retirement funds vulnerable to the cyclical patterns of the property market. For instance, when the property market contracts and valuations plunge, CPF members who are retiring and intending to unlock some or all of their housing assets to fund their retirement could be heavily hit.

Even if property prices surge, they may not be able to afford another home after selling the current one — unless they move in with family or friends. So while they might be sitting on an S$800,000 property, they may well have much less in the bank for their daily needs.

The Government is clearly keen to address Singaporeans’ concerns on retirement adequacy. The recent revision to the Lease Buyback Scheme — where Housing and Development Board (HDB) flat owners sell back part of the remaining lease to the Government — is a case in point.

But I believe the crux of the problem is the way Singaporeans use their CPF monies to buy property.

Many Singaporeans are currently pledging most, if not all, of their Ordinary Account contributions to housing, an illiquid asset. This might not be the most prudent approach to retirement planning. Even if there is a lack of viable investment vehicles in Singapore for retirement planning, a retirement portfolio needs to be well-diversified and not one that places most, if not all, eggs into one basket. There should also be a cash savings component in the portfolio that caters for a rainy day such as a medical emergency.


HOW A CAP WORKS

In a 2012 paper, NUS economic professors Chia Ngee Choon and Albert Tsui suggested that while it may be an uphill task to delink housing financing from CPF completely, more measures can be implemented to ensure that younger Singaporeans buy only homes they can afford. This is a viewpoint that has garnered support among retirement-planning professionals in the private sector.

The professors’ housing consumption sensitivity analysis indicated that there is a strong trade-off between housing consumption and retirement adequacy. For example, a median male earner (monthly salary of S$2,500) who enters the workforce today and goes on to buy a four-room HDB flat will have a net Income Replacement Ratio (IRR) of 70 per cent. But if he buys a five-room flat instead, his net IRR dips to 58 per cent, a staggering 12-percentage-point differential.

IRR is defined as the percentage of working income an individual needs to maintain the same standard of living in retirement he had enjoyed while still active in the workforce. The lower the IRR, the worse off the retiree will be in his golden years.

To expand upon the professors’ prudent approach, a cap could be imposed on the amount of Ordinary Account funds that is made available for housing purchases. For example, a 50-per-cent cap on the use of CPF funds to finance housing will ensure more savings will be set aside for retirement.

Let’s use the same median male earner with a monthly salary of S$2,500 to illustrate this. Let’s say he wants to buy a new four-room HDB flat and needs to take a 30-year-old loan of S$300,000 at an interest rate of 1.5 per cent. If the 50 per cent cap is applied, his household will have to come up with an additional S$6,155 per annum in cash payments for the flat. This transfers into almost S$513 per month, or about 25 per cent of his take-home pay of S$2,000. This percentage would not be considered onerous and would drop as his income grows along with career progression. The upside for him is that he would get S$15,000 more in retirement income every year when he retires at 62.

The policy rationale allowing Singaporeans to draw heavily on their CPF funds to pay for housing in the past is understandable as the priority was to make Singaporeans homeowners and to give them a stake in the nation’s future. But with greater life expectancy and an ageing population, the need to help Singaporeans enjoy retirement adequacy suggests it is perhaps time to rethink this policy.

If young Singaporeans, confident of their future earning power, want to buy a bigger first home, they should by all means seize that opportunity. But the caveat is that they should plan their finances carefully and not depend primarily on their CPF accounts.

A cap on the use of CPF for housing could provide the balance necessary to fund property ownership, but not at the expense of retirement funds.

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https://sg.news.yahoo.com/spore-amon...5--sector.html

Singapore among least affordable cities for young graduates

Property Guru – 24 Sep 2014


Singapore is one of the least affordable cities in the world for young professionals, according to Knight Franks Cost of Living Index.

The city-state was ranked 16th on the list of 20 global cities monitored by Knight Frank, and published in its inaugural Global Cities 2015 report.

The report stated that young graduates based in Singapore have one of the lowest levels of disposable income, with around 10 percent of their net salaries left at the end of every month.

Frankfurt was rated as most affordable on the list, with young professionals in the German city having 60 percent of their income remaining after expenses.

In 20th place, Hong Kong emerged as the least affordable city, with a 4.61 percent income deficit recorded for a Hong Kong graduate. All Asian cities fell below the top 10 among the global cities tracked.

Knight Franks research looked at young graduates in the districts surrounding the city limits, using variables including graduate starting salary, cost of rented accommodation and utility bills, as well as the cost of a pint of beer, a coffee and groceries.

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More and more supply on the way ...


http://www.channelnewsasia.com/news/...s/1378144.html

Channel News Asia
POSTED: 24 Sep 2014 10:59

September 2014 BTO Exercise Launched


A total of 4,630 new flats, spread across six projects in the non-mature towns of Bukit Batok, Hougang and Jurong West, and the mature town of Kallang Whampoa, were launched in the September 2014 BTO exercise.



At Bukit Batok, 1,793 two- to five-room units are on offer. Jurong West has about 907 two- to four-room flats available. Two projects at Buangkok will have almost 1,192 units comprising two- to five-room and Three-Generation flats.

According to real estate agency HSR, the 738-unit project at Kallang Whampoa will be the most popular as it is the only project located in a mature estate.

"It is also near to a lot of amenities and the MRT station. It will definitely create a lot of interest which I also believe is why the price, as indicated on HDB's website, is higher than the rest," said HSR's head of Singapore projects, Mr Alan Tan.

"Jurong West will be the other one which will also attract high interest ... due to the redevelopment of the area," he added.

Eligible first-timer singles have the option of applying for a two-room flat in Buangkok Square, West Terra @ Bukit Batok, Yung Ho Spring I or Yung Ho Spring II. For large families, Three-Generation flats are available at Buangkok Edgeview, Buangkok Square, St George’s Towers, West Terra @ Bukit Batok, Yung Ho Spring I or Yung Ho Spring II, HDB added.

Half of the studio apartments at St George’s Towers in Kallang Whampoa will be set aside for seniors living in the same town or within 2 kilometres of their current flat or property, or those applying for a studio apartment to live near or with their parents or married child.

Applications start on Wednesday and will close on Sep 30.

Another 4,290 flats in Sembawang, Sengkang, Tampines and Yishun will be launched in the next BTO exercise in November. Another 3,000 flats will be offered in a concurrent Sale of Balance Flats exercise, HDB added.

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http://www.cnbc.com/id/102027065

China property hard sell intensifies in bid to lift sagging sector

Reuters
23 Sep 2014 | 7:29 PM ET


Chinese banks, property developers and regional governments are intensifying efforts to drag the housing market from its worst slump in two years by allowing people to buy more than one home, slashing prices and launching unorthodox promotions.

The property sector, which accounts for about 15 percent of China's economy and directly affects some 40 industries from furniture to steel, is of increasing concern to companies and policy makers as it drags on growth.

The most powerful support measure may be yet to come.

Chinese media said on Tuesday that one of China's top four state banks planned to discount mortgage rates by 30 percent and relax lending rules for those buying a second home.

Whether the flurry of measures can stoke growth in a sector that is crucial to the world's second largest economy remains to be seen.

Even in central Beijing, one of the few cities left in China where home purchase restrictions are still in place due to record-high prices, the sector is feeling the pinch.

Lu Yanzeng, a property agent, said he had not sold a single home in two months. Business this year "is very so-so, it's not as good as last year," he said. "Sales of second-hand homes are slow, but new home sales are brisk."

China's property market, where prices surged to all-time highs for five consecutive years, is experiencing its sharpest slowdown in around two years.

Average new home prices fell for a fourth consecutive month in August by 1.1 percent, meaning the market is now close to wiping out gains seen over the last year. Compared to a year ago, sales as measured by floor space were down 12.4 percent.

While the slowdown in a heated market has benefited millions of Chinese, for whom soaring house prices have made home ownership a distant dream, slackening activity has also raised concerns about the health of China's economy.

It is straining already softening domestic demand and pushing overall fixed-asset investment to lows not seen in nearly 14 years on a cumulative basis between January to August.

Falling home prices are also fueling credit risks.

State news agency Xinhua said on Sunday that 32 small property developers in the city of Handan in north China have defaulted on loans that were borrowed illegally from an underground market.

That prompted the local government to arrest several executives to stem local investor panic.

No bank or official has so far confirmed media reports that mortgage rates would be lowered, partly out of fear of being criticized for reflating China's property bubble.

But those in the market were hopeful such a move was imminent, especially since regional governments have already tried to prop up the market by abolishing housing investment limits in 40 of 46 cities.

"The unwinding of property controls by local governments should lift sales, but the effect so far isn't obvious," said a senior executive at a mid-sized listed developer in Beijing, who declined to be named.

"Relaxing the rules on home loans would be more effective and practical."


Losing weight, free chickens

In the meantime, developers are resorting to off-beat marketing ploys to boost business.

China's largest residential developer China Vanke has partnered Taobao, China's version of eBay, to give shoppers who have spent at least 1 yuan on Taobao in the past year a discount of 50,000 yuan ($8,148) when they buy a home featured in a promotion.

And discounts go up to 2 million yuan for those who have bought 2 million yuan worth of goods on Taobao, owned by Alibaba Group Holding.

The promotion, which includes a free taxi ride for those who visit the showroom, has drawn an "especially good response", Taobao said in a statement this month when Vanke expanded the promotion to cover more housing projects.

The month-long initiative now covers apartments and villas in 40 Vanke projects spread across 14 cities, including the eastern city of Hangzhou, one of the areas worst hit by an oversupply of homes and falling property prices.

With China Poly Real Estate, one of China's largest developers, buyers can get discounts proportionate to the amount of weight they lose in a few weeks, the Beijing Evening News newspaper said last week.

"Many property developers face big pressure to meet their sales targets this year," said Zhang Xu, an analyst at property consultant HomeLink, in Beijing. "Some of them are exploring new ways to boost sales."

Developers started cutting prices in February, but modest reductions failed to turn the market around as buyers held out for bigger discounts.

And as inventories of unsold homes climbed during the traditional peak season for property launches in September and October, analysts said developers, especially those strapped for cash, could offer deeper discounts in the coming months.

As of the end of August, half of the 24 listed developers monitored by HomeLink were more than 50 percent short of meeting their 2014 sales targets, data from HomeLink showed.

For an unnamed developer in Guangxi, a region in southwest China, giving live chickens away for free has proved an effective way of drawing attention to a property launch.

"They're yours if you can catch them", Chinese media reports quoted the promotional material as saying.

Pictures online showed smiling retirees grabbing chickens by their claws, with 1,000 live poultry snapped up in 15 minutes.

The reports did not say how many homes were sold.

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http://sbr.com.sg/residential-proper....vifR669P.dpuf
Published 25 Sep 2014

Panic selling alert: Number of Singaporeans keen to dispose their houses surged 15% in H2


More jittery homeowners are looking to sell their homes in the second half of 2014, but more buyers are holding back thanks to affordability and financing concerns.

According to the iProperty Asia Property Market Sentiment Report H2 2014, the number of Singaproeans who want to sell their homes jumped to 16% in H2, compared to just 1% in the same period last year.

Meanwhile, the number of residents looking to buy property fell to 10%, from 22% in the second half of 2013.

The number of respondents who expect new and resale private condominium prices to decline jumped from 34% to 53%.

“The H2 2014 report shows that both property sellers and buyers are nervous a year after the start of the Total Debt Servicing Ratio (TDSR). In the H2 2013 APMSR report, just after the TDSR was announced, 59 per cent of owners were confident their property would retain its value; now only 38 per cent think so, a decline of 21 per cent. Another 25 per cent are unsure if the value will be retained,” said Sean Tan, iProperty.com Singapore General Manager.

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http://www.stproperty.sg/articles-pr...g-hit/a/182424

Downtown home prices take a big hit

More sold at loss, bigger drop in prices than in old prime districts

The Straits Times - September 29, 2014


For 11 out of 34 units sold in District 1, rentals would have been unable to cover the assumed mortgages, said SLP International's Mr Mak. -- ST PHOTO: DESMOND WEE


AS THE luxury residential segment flounders, properties in the Downtown area have taken an especially big hit.

More loss-making transactions have occurred in this area so far this year, compared with last year. Fewer profit-making transactions have taken place.

Resale prices in the area have also fallen faster than those in the traditional prime districts, reflecting its status as a less established high-end residential area.

According to data compiled by ST Property, there were seven loss-making transactions in the Downtown area in the first eight months of this year.

They ranged from a $60,000 loss from the resale of a 1,130 sq ft unit at Marina Bay Residences last month to a $343,200 loss from the subsale of a 506 sq ft unit at Robinson Suites in April.

In comparison, there were just two such transactions in the same period last year - a $30,740 loss from the resale of a 667 sq ft unit at The Sail in January and a $82,400 loss from the resale of a 1,184 sq ft unit, also at The Sail in the same month.

The number of profitable transactions slid from 37 in the first eight months of last year to 27 in the same period this year.

The average annualised profit margin from profitable transactions fell as well, from 9.4 per cent a year in the first eight months of last year to 4.83 per cent a year in the same period this year, said SLP International executive director Nicholas Mak.

He added that there was a higher risk of suffering a loss on an investment in a one-bedroom unit this year as five out of seven loss- making deals over the two time periods involved investments in one-bedders (60 sq m, or about 646 sq ft, or smaller).

Mr Mak noted that in the first eight months of this year, for 11 out of 34 units sold in District 1, rentals would have been unable to cover the assumed mortgages, assuming median market rents. This compares with five out of 39 sales over the same period last year.

Owners putting up high-end residential units for resale may also be feeling the strain of competing with developers with ample unsold stock, said R'ST Research director Ong Kah Seng.

Developers may be offering attractive discounts, or even renting out units instead of selling them. "This impacts owners who are investors, so their best choice would be to sell the unit away at a loss," he said.

Resale prices in the Downtown area have fallen by about 8 per cent over the past year, whereas resale prices in Districts 9 to 11 fell about 5 per cent over the same period, Mr Ong noted.

Prices are steadier in Districts 9 to 11 as they are more established as exclusive areas, said Mr Ong. "Owners (in these areas) are more willing to hold on to the properties even as prices decline 'on paper' - they take pride in their property's established location."

He noted that units in traditional prime districts are also usually larger, a reflection of the fact that their owners are typically wealthier. All 330 units in Ardmore Park, for example, are 2,885 sq ft.

In comparison, condominiums in the Central Business District usually comprise a mix of small, average and large units.

"When the overall high-end residential segment plunges, those newer high-end residential localities without an entrenched positioning might see prices falling faster," said Mr Ong.

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http://sbr.com.sg/shipping-marine/in....DczfK6Bm.dpuf
Published 29 Sep 2014

Dark days dawn for offshore and marine firms as rig-building activities grind to a halt


Sliding oil prices are to blame.

Singapore’s once-busy shipbuilders have been left high and dry by sliding oil prices. Investors are already lamenting a dearth of new orders, as a heavy newbuilding backlog is expected to flood the market over the next two years.

According to CIMB, the dearth of new orders will be especially pronounced for SGX-listed companies like Ezra and Vard, which are geared towards deepwater activities. Sembcorp Marine, Keppel Marine and Nam Cheong would also be affected since they are leveraged to the capital investment cycle.

“We believe that deepwater and ultra-deepwater activities would be the most affected, since they are most sensitive to oil prices. Brent, the global oil benchmark, has dropped some 15% since June, slipping below US$100/bd to a two-year low of c.US$97," noted CIMB.

We are currently witnessing an environment of softer demand growth in both Europe and China, combined with ongoing surge in US production. According to Douglas Westwood, investment levels and oil majors' strategies could be radically altered if the Brent drops below US$85/bbl. That is, we are going to see pressure on the supply chain to cut costs, delays in projects sanctioning and major modifications in projects,” the report added.

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http://sbr.com.sg/economy/news/chart....ze7Sdjkh.dpuf
Published 30 Sep 2014

Chart of the Day: Take a look at how Singapore’s loan growth is nearing the peak of the 1997 Asian financial crisis



Deposit growth languishes near to zero.

The gap between loan and deposit growth figures will remain wide. Both figures will be announced today and loan growth should remain around 10% level while deposit growth is likely to languish near to zero. This is more or less unchanged from 10.8% and -0.01% respectively in July.

According to DBS, with the gap between loan and deposit growth expected to remain wide, total loan value will continue to stay above deposit value (see Chart). This implies that the loan to deposit ratio will continue to stay above parity and could possibly approach the historical peak of 1.17 recorded during the Asian financial crisis in the coming months.

DBS adds that the Monetary Authority of Singapore introduced the Total Debt Servicing Ratio (TDSR) in June last year in a bid to contain the rapid increase in household leverage. And this coincides with the loan to deposit ratio hitting parity in the same month. So, as long as the loan to deposit ratio remains elevated and global interest rates remain low, it is unlikely that the authority will unwind on the property market cooling measures introduced in recent years.

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http://sbr.com.sg/building-engineeri....PoqH6lRM.dpuf
Published 30 Sep 2014

Singapore bank lending inched up 1.2% in August on back of higher construction loans


Total loans and advances reached $604.6b last month.

Singapore’s total bank lending inched up 1.2% month-on-month in August, as the total amount of loans and advances climbed to $604.6b compared to $597.4b in July.

Data released today by the Monetary Authority of Singapore showed that loans to businesses rose in almost all categories except for loans to business services and financial institutions, among others.

Building and constructions loans climbed to $99.4b in August compared to $96.9b in July, while manufacturing loans remained flat at over $32b.

Housing and bridging loans to consumers also rose to $173.5b, up from $172.6b in July.

On a year-on-year basis, August lending is up 11.8% from $540.8b in August 2013.

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http://sbr.com.sg/residential-proper....fZc1ABKU.dpuf
Published 30 Sep 2014

Stingy expats hardest hit by Singapore's property cooling measures


Indonesian purchases plunged to a record low in Q2.

Foreigners are more vulnerable to the country's stringent property cooling measures compared to Singaporeans, a study by DTZ Research revealed.

The report revealed that the number of non-Singaporean private home purchases plunged in the first half of the year, as expats are adversely affected by the hike in ABSD rates.

In the second quarter, the the share of private home purchases by foreigners fell to 8%, the lowest since Q213 when additional ABSD and TDSR measures were rolled out.

The top four groups of non-Singaporean buyers are made up of Mainland Chinese, Malaysians, Indonesians, and Indians.

Between H2 2013 and H1 2014, the proportion of private home purchases below $1.0m by the top four groups of non-Singaporean buyers rose by a stronger 12.0 percentage-points, compared to the 8.0 percentage-point increase for Singaporean buyers.

In addition, the proportion of private home purchases above $2.0m by the top four groups of non-Singaporean buyers decreased 8.0 percentage-points to 13% in H1 2014.

“In H1, 46% of their private home purchases were below $1.0m while this proportion was much lower at 38% for Singaporean buyers. Although the trend towards units at a lower quantum was evident across most nationalities between H2 2013 and H1 2014, it was strongest for Malaysian and Indonesian buyers.

Indian buyers, on the other hand, resisted the overall trend as the proportion of their purchases below $1.0m was similar across the two periods,” noted the report.

This suggests that the impact of the ABSD and TDSR framework is stronger for the non-Singaporean buyer groups, clipping their purchasing power, as a larger proportion of their purchases have shifted towards units with a smaller price quantum.

The report showed that Indonesian buyers are the most price-sensitive of the lot. The share of Indonesian purchases fell to a historical low in the first half, as the bulk of purchases by Indonesians have been by those with foreign residential status.

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http://sbr.com.sg/residential-proper....YSr94Tar.dpuf
Published 01 Oct 2014

HDB resale prices down 1.6% in Q3


Around 4,290 flats will be available in November.

Resale prices of HDB flats slipped 1.6% quarter-on-quarter in Q3, according to flash estimates released today by the Housing and Development Board.

RESALE prices of public housing fell 1.6 per cent in the third quarter, compared to Q2, according to flash estimates released by the Housing and Development Board (HDB) on Wednesday.

HDB’s Resale Price Index fell to 192.5 in Q3, down from 195.6 in Q2. The HDB will release more detailed data for the full third quarter on Oct 24.

Housing officials also noted that about 4,290 build-to-order flats will be offered in November. These flats are located in Sembawang, Sengkang, Tampines and Yishun. About 3,000 flats will be also offered in a concurrent Sale of Balance Flats exercise.

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http://www.stproperty.sg/articles-pr...arter/a/182744

Prices of private homes slip for 4th straight quarter

The Business Times - October 1, 2014


PRICES of private residential properties slipped for the fourth straight quarter, flash estimates from the Urban Redevelopment Authority (URA) showed.

The overall Private Residential Property Price index, covering both landed and non-landed homes, fell 0.6 per cent in the third quarter, after slipping one per cent in the preceding quarter.

Prices of landed properties fell 1.7 per cent, after falling by the same magnitude in the previous quarter.

Prices of non-landed condos also fell across all segments. The Core Central Region saw prices slipping 0.9 per cent, after a 1.5 per cent decline in the second quarter, while the Rest of Central Region saw prices dipping 0.1 per cent, compared to the 0.4 per cent decline in the previous quarter.

Prices in the Outside Central Region dipped 0.2 per cent, compared to a 0.9 per cent fall in the previous quarter.

The URA said that the flash estimates are compiled based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, supplemented by survey data on new units sold by developers in the quarter.

The data will be updated four weeks later when the URA releases the full real estate statistics for the third quarter, which captures more data on the caveats lodged and the take-up of new projects.