Singapore Property Downcycle

[seletar]

http://business.asiaone.com/news/isk....RELLdUmP.dpuf

Iskandar 'housing glut' may hit rents



The Business Times
Wednesday, Oct 01, 2014


A looming housing glut in Iskandar Malaysia may weigh down rental yields in the economic zone, with homes being left empty.

The warning this time came from Malaysia's national organisation of developers, the Real Estate & Housing Developers Association (Rehda).

F.D. Iskandar, president of Rehda, noted that some 30,000 homes could be completed by 2016 or early 2017 in Iskandar.

If these are mainly sold to buyers outside Malaysia and Singapore, "then you will see that these units will be empty and once they are put up for rent and there are so many units available, that will put pressure on rental yields", he said.

Malaysia's federal government is "actually looking seriously" at this issue, Mr Iskandar added. But land administration in Malaysia lies within the state government's authority.

In the past 12 to 18 months, the deluge of homes launched or in the pipeline by Chinese developers, including Country Gardens and Guangzhou R&F Properties, has stoked concerns over a looming housing glut in the Iskandar region, which encompasses an area of more than 2,000 sq km in Johor.

"Obviously, we have seen developers from China launching a few thousand units at one go," Mr Iskandar said, adding that Malaysian or Singaporean developers would typically have 400 to 600 units in one project.

Most of the buyers of these Chinese projects come from mainland China, he observed. "Upon completion, they will not use this as their main home, there will be some concerns about these residential units being empty."

Mr Iskandar noted that many Singaporean buyers prefer to buy from Singapore developers or reputable Malaysian developers.

There has also been much interest from Singaporean investors in industrial as well as commercial properties.

Meanwhile, other hot property spots in Malaysia such as Penang and Greater Kuala Lumpur are likely to be shielded from the supply glut in Iskandar as strong population growth in these areas is still supporting fundamental demand for housing, according to Mr Iskandar.

Kuala Lumpur's population is six million, and could grow to 10 million by 2020 through demographic growth, urbanisation and intra-state migration.

Mr Iskandar estimated that this would translate to some 170,000 homes being built each year, based on the assumption of four people per household. Investment yields from residential properties in Penang and Kuala Lumpur are likely to hold up in the region of 5 to 8 per cent, while commercial properties could reap higher yields, he projected.

The retail segment has also emerged as a strong component, with Kuala Lumpur being ranked by global news network CNN as the fourth-best city in the world for shopping, after New York, London and Tokyo.

With the upcoming high-speed rail between Singapore and Malaysia expected to cut travelling time from 51/2 hours to just 90 minutes, both Kuala Lumpur and Singapore will benefit from greater inter-city travel and cross-border investments, Mr Iskandar said.

[seletar]

http://sbr.com.sg/residential-proper....mSIZLmTx.dpuf
Published: 01 Oct 14

Looming HDB flat glut to further drag resale prices in 2014

Resale prices hit a 2-year low in Q3.

Resale prices of HDB flats continued to decline in the third quarter, as HDB’s flash estimates showed a 1.6% decline to 192.5 points.

This figure marks the fifth consecutive quarter of declines and also marks a 2-year low for HDB resale prices.

According to PropNex, a looming flood of new HDB homes is going to drag resale prices further this year, even as buyer sentiment continues to be subdued thanks to the government’s property cooling measures.

“Home buyers are now more restrained if their MSR is over 30 per cent or TDSR is near 60 per cent. In summary, home-buying sentiment is more subdued. Loan curbs and softer prices will ultimately mean that HDB upgraders have less to spend on their next property,” said PropNex CEO Mohamad Ismail.

PropNex expects HDB resale prices to soften 6 to 7 per cent for full-year 2014, with volumes hitting around 17,000 units — likely to be the lowest in the last decade.

[seletar]

http://www.stproperty.sg/articles-pr...rkets/a/182919

Sliding flat values in tale of two markets

The Straits Times - October 2, 2014


SINKING property prices seem to be the order of the day, so another quarter of tumbling prices came as no surprise.

More notable is an emerging trend that private home prices appear more resilient now than those of HDB resale flats. Since the third quarter of 2013, prices of HDB resale flats have fallen more than those of private homes.

Cooling measures sent private home prices down by 3.8 per cent in the past year, flash estimates indicated yesterday. Housing Board flat values tumbled a steeper 6 per cent in the same period.

Over the year, experts predict that private homes prices will ease 5 to 6 per cent while HDB resale prices slide by 5 to 8 per cent.

This reverses the usual pattern.

Rises or falls in private home prices mostly outpace changes in the HDB market, especially during a global or economic crisis, said Ms Chia Siew Chuin, director of research and advisory at Colliers International.

She cited the 1997 Asian financial crisis when private property prices dived 44.9 per cent as HDB resale prices shed 20.4 per cent. "HDB flats are a basic housing provision... the public segment tends to be insulated from external shocks during those times."

A shortage of new flats had also forced buyers to look to resale flats, propping up prices, said Mr Ong Teck Hui, JLL national director of research and consultancy.

But the rug seems to have been pulled from under the feet of the HDB market, as demand shifted from resale flats to new flats.

The market is now flush with new HDB flats after the Government ramped up its building programme to meet first-time buyer demand. About 25,000 new flats were launched last year, with 22,000 more due this year.

A mortgage servicing ratio limiting monthly housing payments at 30 per cent of the buyer's gross monthly income hit many. And newly minted permanent residents can buy an HDB flat only after three years.

Private home buyers have been hurt by tough mortgage lending guidelines and higher stamp duties but one key difference is that high land prices paid by developers act as a limit on discounting.

"They're floating on thin margins," as Mr Alan Cheong, research head at Savills Singapore, noted.

Also, private property owners would have gained from the 60 per cent surge in private home prices during the most recent market upswing. They are unlikely to lower their selling expectations.

Still, the private home market could be hit by an external shock, much like the Asian financial crisis, or internal issues, like rising vacancies owing to an oversupply of new homes.

The market will soon abound with completed condo units - many of which have been bought for investments - in the face of a shrinking pool of foreign tenants.

"If loan servicing is affected by reduced rental income, there could be selling pressure resulting in price declines," said Mr Ong.

[Arcachon]

Logo_post_bPrint Back to story
Chinese Tap Singapore Wealthy in Record Bond Sales: Asean Credit
By Tanya Angerer - Oct 2, 2014
Singapore’s bond market is getting a boost from Chinese borrowers tapping the island’s millionaires for record amounts at rates almost 30 percent cheaper than home.

Private investors in Singapore took almost all of the S$380 million ($299 million) of local dollar-denominated notes sold by mainland Chinese companies excluding banks last month, according to people familiar with the matter. Offerings in the currency by all Chinese borrowers rose to S$1.7 billion this year, almost double such sales for the whole of 2013, according to data compiled by Bloomberg.

China’s issuers are increasingly targeting Singapore’s surging millionaire base to raise funds amid record borrowing costs at home. Debut issues from offshore companies rose to 10 in 2014 compared with none five years ago, supporting a market that makes up just 20 percent of bond sales in the Asean region compared with about 32 percent each for Thailand and Malaysia.

“The future growth of Singapore’s bond market is dependent on making itself relevant to offshore issuers and investors, over and above the domestic market,” Clifford Lee, Singapore-based head of fixed income at DBS Group Holdings Ltd., the island’s top bond arranger, said in an interview. “It’s natural for Chinese issuers to sell Singapore dollar bonds as they continue to grow, as there’s the appeal of further diversification in an open and transparent capital market.”

Slowing China

Yields on yuan-denominated bonds are averaging at a record high of 5.87 percent this year, according to a Bank of America Merrill Lynch index, as China faces its slowest growth since 1990, plummeting deposits and rising soured debt amid a property slump. The average coupon on Singapore-dollar bonds in the same period is 4.16 percent, Bloomberg-compiled data show.

Far East Horizon Ltd., a financial unit of China’s state-owned Sinochem Group, sold S$200 million of 4.25 percent five-year notes on Sept. 24, with private banks and individual investors buying 87 percent of the securities, according to a person familiar with the offering.

Zhengzhou-based China Coal Solution Singapore Pte. Ltd.’s debut sale of a S$180 million note the previous week was 91 percent bought by private banks, a separate person said.

“Part of the appeal is the strength of the Singapore dollar, which is why people invest their money here,” Adeline Tan, a Singapore-based analyst at UOB Asset Management Ltd., said in an interview. “That’s the main reason why Singapore is successful as a private banking hub and investment center.”

Millionaire Hub

Singapore’s dollar was at $1.2722 at 3 p.m. yesterday local time, stronger than its five-year average of $1.2823. The currency’s three-month implied volatility was at 4.56 percent at the end of September, the lowest among Southeast Asia’s biggest economies, data compiled by Bloomberg show.

The island has 151,000 millionaires, or 2.8 percent of its population, according to a survey by London-based Spear’s magazine and consultancy WealthInsight. It ranks eighth globally behind cities including Monaco, London and New York.

Asia’s second-smallest country after the Maldives will be home to almost 5,000 people with $30 million or more in assets excluding their principal residence by 2023, a 55 percent gain from 2013 and trailing only London globally, according to a March report from Knight Frank LLP.

Of the 10 offshore corporate borrowers that issued debut Singapore dollar notes this year, China Coal Solution and Ping An Insurance Group Co. of China Ltd. were from the world’s second-largest economy. First-time sellers from other nations included Australian child-care provider G8 Education Ltd. and Korea-based motorcycle seller Kolao Holdings.

Flexible, Friendly

“The market is flexible on size and on tenors at the shorter end of the curve,” said Danny Tan, a Singapore-based fund manager at Eastspring Investments Ltd., which controls about $115 billion. “Singapore is a friendly market for issuers and investors compared to other Asian countries.”

Ties between Singapore and China go beyond bond markets. The island’s Prime Minister Lee Hsien Loong mentioned a third possible venture between the governments on “mega” industrial park projects, the Business Times reported Sept. 19 citing Lee.

China became Singapore’s largest trading partner last year, with bilateral trade growing to $92 billion last year from just $4.2 billion in 1990, Lee said in a speech last month. More than 5,200 Chinese companies have a presence on the island, which was China’s largest foreign investor in 2013, he said.

“As of today, Singapore has the deepest and most efficient local currency bond market in Asia, offering most flexibility in sizes and tenors,” said DBS’s Lee. “If the markets stay open and the pricing works, we’ll definitely see more Chinese issuance.”

To contact the reporter on this story: Tanya Angerer in Singapore at [email protected]

To contact the editors responsible for this story: James Holloway at [email protected]; Katrina Nicholas at [email protected] Chris Bourke, Ken McCallum

®2014 BLOOMBERG L.P. ALL RIGHTS RESERVED.

[seletar]

http://sbr.com.sg/economy/news/money....R51L3YOM.dpuf
Published: 02 Oct 14

Money no enough: Nearly half of Singaporean households are subsisting from paycheck to paycheck


Savings rates are way too low across the island.

Here’s an uncomfortable truth about Singaporean households: a report by CLSA revealed that almost half of households across the islands are saving less than 10% of their monthly incomes, leaving them unable to cope with unexpected financial expenses.

The report revealed that 30% of Singaporean households save less than 10% of their incomes, while an alarming 14% have no savings at all.

Majority of elederly respondents are not saving money during their retirement, as most are focused on enjoying their money during this period. However, a high proportion of residents in their 30s and 40s are also unable to save.

Unsurprisingly, 73% of low-income households are saving less than 10% of their monthly income. However, an unexpected 37% of the top-income bracket is essentially spending everything they earn.

“In our view, as a result of the low savings rate, the high proportion of total wealth in non-liquid assets (eg property, CPF, insurance) and high optimism about future earnings potential, 47% of households do not have enough funds readily available to cope with unexpected financial expense,” stated CLSA.

[seletar]

http://sbr.com.sg/residential-proper....O4xBBOqF.dpuf
Published: 03 Oct 14

Chart of the Day: Private home prices on a nosedive for the 4th straight quarter



As high-end home prices fall for sixth consecutive quarter.

Private home prices in Singapore fell for the fourth straight quarter as the government steps since 2009-2013 to cool the real estate market, especially the TDSR, continued to take effect.

According to the Urban Redevelopment Authority’s flash estimates, the private residential property price index fell 1.3 points to 208.1 in 3Q14, down 0.6% q/q and -3.8% y/y. This is the fourth straight decline, albeit a slight slowdown, after 1% q/q decline in 2Q14, 1.3% q/q decline in 1Q14 and -0.9% q/q in 4Q13.

According to Barclays, in the Core Central Region (CCR), which usually represents high-end homes, prices fell 0.9% after declining 1.5% in the 2Q14. This is the sixth consecutive quarter of price declines in this segment, bringing the total decline of CCR prices to 5.8% since the peak in 1Q13.

The price decline of suburban homes – proxied by the Outside Central Region (OCR) – decelerated for the fourth consecutive quarter, by -0.2%, compared with the 0.9% decrease in the previous quarter. This brings cumulative price decline for OCR homes to just 2.1%. In the Rest of Central Region (RCR), mid-end home prices fell 0.1%, compared with the 0.4% decrease in the previous quarter, which brings cumulative decline for RCR homes to 4.3% from the peak. Prices of landed private residential properties fell another 1.7% for the fourth consecutive quarter, identical to the decline in 2Q14. This brings the cumulative decline for landed homes to 5.0% since the peak in 3Q13.

[seletar]

http://sbr.com.sg/financial-services....0k0AQU1G.dpuf
Published: 03 Oct 14

Over 7 out of 10 Singaporeans brace for cash-strapped retirement on back of insufficient CPF funds


Seniors are counting on dole-outs from younger family members.

Will you be ready to support senior family members when they’re sixty-four? An alarming number of Singaporeans think that they do not have enough funds to rely on, a survey by CLSA revealed.

According to CLSA, 78% of respondents are not topping up their CPF income in order to bolster retirement funds, and 71% think they will not have enough funds to retire on.

In spite of this, 69% do not have other retirement-savings vehicles to rely on and 44% would not be willing to sell their property if they fall short of their retirement income.

“Perhaps our respondents are hoping that younger family members will provide financial support in future, or that the government will loosen the eligibility criteria for the lease buyback scheme (either by the income limit or by the size of HDB property). Overall, although Singaporean households are more leveraged than they have been historically, and the disparity in income and wealth continues to grow, we feel comfortable that majority of the population can weather a material downturn,” noted CLSA.

[pmet]

http://sbr.com.sg/residential-proper....O4xBBOqF.dpuf
Published: 03 Oct 14

Chart of the Day: Private home prices on a nosedive for the 4th straight quarter



As high-end home prices fall for sixth consecutive quarter.

Private home prices in Singapore fell for the fourth straight quarter as the government steps since 2009-2013 to cool the real estate market, especially the TDSR, continued to take effect.

According to the Urban Redevelopment Authority’s flash estimates, the private residential property price index fell 1.3 points to 208.1 in 3Q14, down 0.6% q/q and -3.8% y/y. This is the fourth straight decline, albeit a slight slowdown, after 1% q/q decline in 2Q14, 1.3% q/q decline in 1Q14 and -0.9% q/q in 4Q13.

According to Barclays, in the Core Central Region (CCR), which usually represents high-end homes, prices fell 0.9% after declining 1.5% in the 2Q14. This is the sixth consecutive quarter of price declines in this segment, bringing the total decline of CCR prices to 5.8% since the peak in 1Q13.

The price decline of suburban homes – proxied by the Outside Central Region (OCR) – decelerated for the fourth consecutive quarter, by -0.2%, compared with the 0.9% decrease in the previous quarter. This brings cumulative price decline for OCR homes to just 2.1%. In the Rest of Central Region (RCR), mid-end home prices fell 0.1%, compared with the 0.4% decrease in the previous quarter, which brings cumulative decline for RCR homes to 4.3% from the peak. Prices of landed private residential properties fell another 1.7% for the fourth consecutive quarter, identical to the decline in 2Q14. This brings the cumulative decline for landed homes to 5.0% since the peak in 3Q13.

Not yet

Wait for 2015 for interest rates to rise. From 0.25% to:

0.5% will cause another 5% drop
0.75% will cause another 2% drop
1% will cause another 3% drop

See... total drop only 10% if interest rises to 1% next year. But that's on top of the govt's measure which is already biting. So assuming 8% from the CMs, plus another 10% will be 18% drop next year

If interest rates increases another 1% in 2016 we will only see an exponential plunge. Perhaps another 30% drop in 2016.

Wah! Property really bearish now...

Also, just to add that govt is unlikely to lift any of the CM till the first interest rate increase, lest that they shoot themselves in their own foot. If they lift CM now, more ppl will chiong to buy and when interest rate start to increase they GG during election liao.

[Arcachon]

AEC 2015

[teddybear]

It will be interesting to see what happen to next election results if interest rate rises and they didn't relax the cooling measures.....................

Not yet

Wait for 2015 for interest rates to rise. From 0.25% to:

0.5% will cause another 5% drop
0.75% will cause another 2% drop
1% will cause another 3% drop

See... total drop only 10% if interest rises to 1% next year. But that's on top of the govt's measure which is already biting. So assuming 8% from the CMs, plus another 10% will be 18% drop next year

If interest rates increases another 1% in 2016 we will only see an exponential plunge. Perhaps another 30% drop in 2016.

Wah! Property really bearish now...

Also, just to add that govt is unlikely to lift any of the CM till the first interest rate increase, lest that they shoot themselves in their own foot. If they lift CM now, more ppl will chiong to buy and when interest rate start to increase they GG during election liao.

[Kelonguni]

I think there will be some very serious disappointments for those expecting Govt to bend over and backwards just due to private property prices.

1. The majority of votes are still in the hands of HDB dwellers, and a huge chunk are the pioneers.

2. Private property owners have such a huge stake in the stability of SG that very few will actually vote against the incumbent. It doesn't matter where prices are headed, their votes are generally secure.

My two cents only.

[teddybear]

HDB resale flats prices are dropping faster than private properties!
Is this a concern?
If not, they should not adjust any properties' policies before next GE................................
Let's wait and see.........................

I think there will be some very serious disappointments for those expecting Govt to bend over and backwards just due to private property prices.

1. The majority of votes are still in the hands of HDB dwellers, and a huge chunk are the pioneers.

2. Private property owners have such a huge stake in the stability of SG that very few will actually vote against the incumbent. It doesn't matter where prices are headed, their votes are generally secure.

My two cents only.

[Arcachon]

HDB resale flats prices are dropping faster than private properties!
Is this a concern?
If not, they should not adjust any properties' policies before next GE................................
Let's wait and see.........................

Any Data, sample, resale transaction to show "HDB resale flats prices are dropping faster than private properties"

http://services2.hdb.gov.sg/webapp/B...PReslTrans.jsp

https://www.ura.gov.sg/realEstateIIW.../search.action

SOUTHBANK NORTH BRIDGE ROAD Apartment 07 RCR 99 yrs lease commencing from 2006 1 980,000 592 Strata 11 to 15 1,655 May-14
SOUTHBANK NORTH BRIDGE ROAD Apartment 07 RCR 99 yrs lease commencing from 2006 1 1,060,000 614 Strata 26 to 30 1,728 Apr-12

123 Paya Lebar Way 13 to 15 118.00 Improved 1980 $560,000.00 Aug 2014
123 Paya Lebar Way 01 to 03 118.00 Improved 1980 $535,000.00 Apr 2014

3 Pine Cl 07 to 09 110.00 Improved 2000 $840,000.00 Aug 2014
1 Pine Cl 07 to 09 110.00 Improved 2000 $875,000.00 Jul 2014
11 Pine Cl 10 to 12 110.00 Improved 2000 $820,000.00 Jul 2014
3 Pine Cl 10 to 12 110.00 Improved 2000 $850,000.00 Feb 2014
1 Pine Cl 16 to 18 110.00 Improved 2000 $840,000.00 Jan 2014

[Arcachon]

Facts

[Kelonguni]

HDB resale flats prices are dropping faster than private properties!
Is this a concern?
If not, they should not adjust any properties' policies before next GE................................
Let's wait and see.........................

Presumed dropping prices (of HDB) affect mainly the few groups most strongly.

1. People intending to sell and live in other countries - very small group, might not vote anyway.

2. Pioneer generation - most cannot sell the flat anyway (no place to stay) so might opt for renting rooms, lease buyback. Majority and huge group likely neutral to price changes.

3. Baby boomer generation - other than those similar in context to Group 2, most already possibly cashed out more than once and might be cash-loaded but generally planning for retirement and unlikely to buy sell so actively.

3. Upgrading Gen X and Gen Y group - the private TDSR prices most of them out. This is the possible group to work on for any tweaks in regulations. Moderately sized group. Check Punggol / Sengkang / Hougang for a large presence of them.

Pros and cons to any tweaks. My two cents.

[DC33_2008]

Please see my response to your earlier post. Just my observation.

Presumed dropping prices (of HDB) affect mainly the few groups most strongly.

1. People intending to sell and live in other countries - very small group, might not vote anyway.

2. Pioneer generation - most cannot sell the flat anyway (no place to stay) so might opt for renting rooms, lease buyback. Majority and huge group likely neutral to price changes. [With faster devalue of hdb resale flat, pioneers will get less with the lease buy back scheme. Can you imagine for those who own flats and want to it 5 years later? You probably know the answer.]

3. Baby boomer generation - other than those similar in context to Group 2, most already possibly cashed out more than once and might be cash-loaded but generally planning for retirement and unlikely to buy sell so actively. [May not be true. This is the most active group who will be playing in the market not just for themselves but growing and preserving their wealth for next their children and grandchildren...]

4. Upgrading Gen X and Gen Y group - the private TDSR prices most of them out. This is the possible group to work on for any tweaks in regulations. Moderately sized group. Check Punggol / Sengkang / Hougang for a large presence of them. [This is the most frustrated group who cannot upgrade unless they have great FM support. How to upgrade when their flats are devaluing? Competition in career advancement from within and outside Singapore. Cannot afford to retire early and got to work beyond 65. Have higher expenses in all areas: children education, food, car, etc. No pioneer assistance scheme for them. This is the most vulnerable group in election.]

Pros and cons to any tweaks. My two cents.

[Kelonguni]

Please see my response to your earlier post. Just my observation.

True too. Group 4 is the group Govt will target on when GE2015 or 2016 draws near. EC is the only route for most, which might explain why Minister Khaw couldn't scrap it.

Point to note: 2006 to 2011 was a period of huge price growth. What was the impact on GE2011?

[DC33_2008]

That was due to undersupply when Mah heading mnd and increase in population. LHL proof WP wrong in last night lecture on stopping the FOREIGN TAP that will dampen our GDP. It will continue to be opened moderately for certain group of people especially with the current situation in hk. More MNCs will setup hq in Spore fto ensure business continuity and stable currency. .

True too. Group 4 is the group Govt will target on when GE2015 or 2016 draws near. EC is the only route for most, which might explain why Minister Khaw couldn't scrap it.

Point to note: 2006 to 2011 was a period of huge price growth. What was the impact on GE2011?

[teddybear]

FACTs?
I obtained these information from the News as follow regarding "HDB resale flats prices are dropping faster than private properties":


Published: Saturday September 27, 2014 MYT 12:00:00 AM

Widening price gap for Singapore home upgraders


IT is becoming harder than ever for housing board upgraders to make the leap to private property, despite softening prices.

The price gap between an HDB flat and a private condo has widened, hampering those who rely on resale proceeds to fund their new home - not least in the light of tougher home loan curbs.

A 2011 Goldman Sachs study found that the price gap in the first quarter of that year was S$490 per sq ft, a record then. That means a 1,000 sq ft condominium unit would have cost S$490,000 more than a resale HDB flat with the same floor area.

A five-room HDB flat is slightly larger than 1,000 sq ft.

New figures from the Singapore Real Estate Exchange suggest the gap has only widened since.

Their calculations put the gap in median resale prices at S$383 per sq ft in the first quarter of 2011 but that had shot up to to S$524 per sq ft by the second quarter of this year.

The gap is even wider for new private units, having risen from S$556 per sq ft to S$753 per sq ft.

These calculations were based on prices of HDB five-room flats and condominiums outside the central region, to reflect the typical upgrade.

“It does mean that private housing for HDB upgraders is becoming more unaffordable,” said SLP International Property Consultants research head Nicholas Mak.

But the growing gap is unsurprising, given the different trends in private and public property, said experts.

The Urban Redevelopment Authority’s resale price index shows that values of non-landed private property outside the central region have risen by 17.3% overall since the first quarter of 2011.

The HDB’s resale price index rose only about 12% over the same period.

Several rounds of government cooling measures have begun to bite, and both markets are now on a decline. But public housing prices have been falling faster - contributing to the widening gap.

HDB prices started falling after the second quarter of last year, and have dropped 5.3% since then. The private property index started falling from the third quarter, and has lost 3% since.

R’ST Research director Ong Kah Seng does not see this as cause for alarm: “I think it is not a major concern now because in the years of 2010 to the first half of 2013, there were ample HDB upgraders ... many HDB upgraders have already fulfilled their dreams of upgrading.”

Executive condominiums, which are bought as public housing but become fully private after 10 years, could also bridge the gap, as they are cheaper than private units, said Chris International director Chris Koh.

Jedric Goh, 34, is willing to be even more flexible as he tests market interest for his five-room flat in Serangoon.

In this market, going private would be “quite tough”, so he is not limiting his options that way.

“I’m looking at location instead of the type of property,” said Mr Goh, who works in the finance industry.

Any Data, sample, resale transaction to show "HDB resale flats prices are dropping faster than private properties"

http://services2.hdb.gov.sg/webapp/B...PReslTrans.jsp

https://www.ura.gov.sg/realEstateIIW.../search.action

SOUTHBANK NORTH BRIDGE ROAD Apartment 07 RCR 99 yrs lease commencing from 2006 1 980,000 592 Strata 11 to 15 1,655 May-14
SOUTHBANK NORTH BRIDGE ROAD Apartment 07 RCR 99 yrs lease commencing from 2006 1 1,060,000 614 Strata 26 to 30 1,728 Apr-12

123 Paya Lebar Way 13 to 15 118.00 Improved 1980 $560,000.00 Aug 2014
123 Paya Lebar Way 01 to 03 118.00 Improved 1980 $535,000.00 Apr 2014

3 Pine Cl 07 to 09 110.00 Improved 2000 $840,000.00 Aug 2014
1 Pine Cl 07 to 09 110.00 Improved 2000 $875,000.00 Jul 2014
11 Pine Cl 10 to 12 110.00 Improved 2000 $820,000.00 Jul 2014
3 Pine Cl 10 to 12 110.00 Improved 2000 $850,000.00 Feb 2014
1 Pine Cl 16 to 18 110.00 Improved 2000 $840,000.00 Jan 2014

HDB resale flats prices are dropping faster than private properties!
Is this a concern?
If not, they should not adjust any properties' policies before next GE................................
Let's wait and see.........................

[Arcachon]

News, I decide what I want you to know.

http://www.thestar.com.my/Business/B...ome-upgraders/

http://www.straitstimes.com/news/sin...aders-20140924

DREAM A LITTLE LONGER

It does mean that private housing for HDB upgraders is becoming more unaffordable.

- SLP International Property Consultants research head Nicholas Mak, on buyers having to fork out more

DREAM FULFILLED

Many HDB upgraders have already fulfilled their dreams of upgrading.

- R'ST Research director Ong Kah Seng, who does not see the growing price gap between HDB and condo units as cause for alarm

- See more at: http://www.straitstimes.com/news/sin....OqGhLmV4.dpuf

http://www.thepropertyeffect.com/wid...eptember-2014/

It is becoming harder than ever for Housing Board upgraders to make the leap to private property, despite softening prices.

https://www.google.fr/search?q=Widen...sm=93&ie=UTF-8

[Arcachon]

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.”

http://propertysoul.com/

[Arcachon]

[Arcachon]

That was due to undersupply when Mah heading mnd and increase in population. LHL proof WP wrong in last night lecture on stopping the FOREIGN TAP that will dampen our GDP. It will continue to be opened moderately for certain group of people especially with the current situation in hk. More MNCs will setup hq in Spore fto ensure business continuity and stable currency. .

[puffer_fish]

It pretty normal, what goes up must come down and vice versa.

The ruling party has stated clearly what their plans are, so just to ride on their coattails

[Ringo33]

Government is likely to let the property market continue its downward trend for the next 3 to 4 quarter as election is drawing near, and I am expect 2015 will be the election year.
In PM speech yesterday, its important that government is acknowledging severity of foreign workers controls and I expect going forward things is likely to get better.
Having said that, I think it will be premature for government to lift any cooling measures yet, which I think is logically.

[DC33_2008]

The question is not just what goes up must come down but the important question is the trend rising or falling in the mid to long term that investors are looking at.

It pretty normal, what goes up must come down and vice versa.

The ruling party has stated clearly what their plans are, so just to ride on their coattails

[teddybear]

Not just that, given that property Cooling Measures have no effect on OCR private properties, whether they introduce further measure targeted to cool OCR properties or not will tell us whether they really want property prices to go down or not.......................

Government is likely to let the property market continue its downward trend for the next 3 to 4 quarter as election is drawing near, and I am expect 2015 will be the election year.
In PM speech yesterday, its important that government is acknowledging severity of foreign workers controls and I expect going forward things is likely to get better.
Having said that, I think it will be premature for government to lift any cooling measures yet, which I think is logically.

[Ringo33]

Not just that, given that property Cooling Measures have no effect on OCR private properties, whether they introduce further measure targeted to cool OCR properties or not will tell us whether they really want property prices to go down or not.......................

OCR property prices is supported by government decentralizing effort which is expected. So there is no reason why government would want to introduce cooling measures to intentionally crash just because someone living in the wrong side of CCR is sour about it.

[teddybear]

So you saying it is govt policy to support JGateway at $1700+ psf?

OCR property prices is supported by government decentralizing effort which is expected. So there is no reason why government would want to introduce cooling measures to intentionally crash just because someone living in the wrong side of CCR is sour about it.

[Ringo33]

So you saying it is govt policy to support JGateway at $1700+ psf?

JLD is just one of the many exciting projects that government is doing to decentralize commercial activities.
I am sure you must have noticed there are now fewer international school kids in central region.