4th Quarter 2014 private residential property price index

[Ringo33]

Balance score card

For the whole of 2014, prices in CCR, RCR and OCR have fallen by 4.1 per cent, 5.2 per cent and 2.2 per cent respectively

PRIVATE home prices fell one per cent in the fourth quarter of 2014 over the previous quarter, higher than the 0.7 per cent decline in Q3 2014, based on the Urban Redevelopment Authority's (URA) flash estimates released on Friday.

This marks the fifth consecutive quarter-on-quarter drop in URA's widely watched private home price index.

For the whole of last year, the index eased 4 per cent - contrasting with a 1.1 per cent rise in 2013.

URA said prices of non-landed private homes fell in all three geographical segments in Q4. In Core Central Region (CCR), prices fell 0.9 per cent in Q4 2014, higher than the 0.8 per cent drop in the previous quarter. CCR covers the Downtown Core planning area, Sentosa and the traditional districts 9, 10 and 11.

In the city-fringe, or Rest of Central Region (RCR), prices eased 1.2 per cent, higher than the 0.4 per cent decline in the previous quarter.

In suburban locations, or the Outside Central Region (OCR), prices declined 0.9 per cent, higher than the 0.3 per cent fall in the previous quarter.

For the whole of 2014, prices in CCR, RCR and OCR have fallen by 4.1 per cent, 5.2 per cent and 2.2 per cent respectively

Prices of landed properties shed 1.1 per cent in Q4, a smaller drop compared with the 1.8 per cent decline in the previous quarter.

For the whole of 2014, prices of landed properties fell by 5.2 per cent.

The Urban Redevelopment Authority (URA) released the flash estimate of the price index for private residential property for 4th Quarter 2014 today.

Overall, the private residential property index fell 2.1 points from 207.9 points in 3rd Quarter 2014 to 205.8 points in 4th Quarter 2014. This represents a decline of 1.0%, which is higher than the 0.7% decline in the previous quarter. This is the fifth continuous quarter of price decrease (see Annex A). For the whole of 2014, prices have fallen by 4.0%.

Prices of non-landed private residential properties declined in all market segments. In Core Central Region (CCR), prices fell 0.9%, higher than the 0.8% decline in the previous quarter. Prices in Rest of Central Region (RCR) fell 1.2%, higher than the 0.4% decline in the previous quarter. In Outside Central Region (OCR), prices fell 0.9%, higher than the 0.3% decline in the previous quarter (see Annex B). For the whole of 2014, prices in CCR, RCR and OCR have fallen by 4.1%, 5.2% and 2.2% respectively. Prices of landed properties fell 1.1% compared to the 1.8% decline in the previous quarter. For the whole of 2014, prices of landed properties fell by 5.2%.

The flash estimates are compiled based on transaction prices given in caveats lodged and survey data on new units sold by developers during the first ten weeks of the quarter. The statistics will be updated 4 weeks later when URA releases the full real estate statistics for 4th Quarter 2014, which captures more data on the caveats lodged and the take-up of new projects. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.

[DC33_2008]

Wow. Good to watch OCR with the higher rate of decline in Q4 compare to Q3. Investors will start to revisit CCR again by middle of 2015.

[Ringo33]

Wow. Good to watch OCR with the higher rate of decline in Q4 compare to Q3. Investors will start to revisit CCR again by middle of 2015.

When interest rate rise, large quantum properties will get hit hardest.
Landed and CCR property outside orchard road better beware because interest rate has started creeping up and I expect tol see the effect in Q12015

[DC33_2008]

Owners with fully paid up properties and/or good rental yield of beyond 5% will not be a problem even with rise in interest rate. They would have earn enough over the year to pay the higher interest. Those who have been having conservative lending practice should not worry. Those new developments TOP in OCR and over leverage in the next two years should be most worried.

When interest rate rise, large quantum properties will get hit hardest.
Landed and CCR property outside orchard road better beware because interest rate has started creeping up and I expect tol see the effect in Q12015

[Ringo33]

Owners with fully paid up properties and/or good rental yield of beyond 5% will not be a problem even with rise in interest rate. They would have earn enough over the year to pay the higher interest. Those who have been having conservative lending practice should not worry. Those new developments TOP in OCR and over leverage in the next two years should be most worried.

The "fully paid up crash also no problem segment" are really pointless to talk actually and it doesnt mean these segment of the market is smart either because they are not leveraging in the first place.

If you are landlord with landed property for rental, then you will be in worst shit because rising interest rate, property tax and lack of tenant will easily drive you down to negative yield.

[DC33_2008]

Savvy investors these days will not buy landed for rental. Why not stay in large landed and rent out their condos but not MM type in the next two years especially those OCR ones.

The "fully paid up crash also no problem segment" are really pointless to talk actually and it doesnt mean these segment of the market is smart either because they are not leveraging in the first place.

If you are landlord with landed property for rental, then you will be in worst shit because rising interest rate, property tax and lack of tenant will easily drive you down to negative yield.

[Ringo33]

Savvy investors these days will not buy landed for rental. Why not stay in large landed and rent out their condos but not MM type in the next two years especially those OCR ones.

Many investors who were convinced by all that nice stories about no new supply. deep pocket, rich immigrants are now being caught with their pants down and thats why so many GCB, Bungalow, Semi-D properties are put on the market for rent that is generating negative yield.

Savvy? Of course not. So please dont always assumed all landed property investors are savvy. If they are savvy, they would have exited 2 years ago.

[DC33_2008]

Bro. Pls do not put words in my mouth. When did I ever say landed property owners are savvy investors. Pls read again in my earlier post. I quote: Savvy investors will not buy landed for rental.

Many investors who were convinced by all that nice stories about no new supply. deep pocket, rich immigrants are now being caught with their pants down and thats why so many GCB, Bungalow, Semi-D properties are put on the market for rent that is generating negative yield.

Savvy? Of course not. So please dont always assumed all landed property investors are savvy. If they are savvy, they would have exited 2 years ago.

[Ringo33]

Bro. Pls do not put words in my mouth. When did I ever say landed property owners are savvy investors. Pls read again in my earlier post. I quote: Savvy investors will not buy landed for rental.

I am glad you are aware not all landed property owners or investors are savvy nor do they all have holding power or deep pocket etc.

[DC33_2008]

Bro, put words in my mouth again. I did not say they do not have deep pockets and holding power. Pls say less will be good for you.

I am glad you are aware not all landed property owners or investors are savvy nor do they all have holding power or deep pocket etc.

[Ringo33]

Bro, put words in my mouth again. I did not say they do not have deep pockets and holding power. Pls say less will be good for you.

We all know you are well known for blowing hot air about your investment properties in this forum and this include the landed property which you are free loading with your other siblings.

[DC33_2008]

There you go again. Silent is golden.

We all know you are well known for blowing hot air about your investment properties in this forum and this include the landed property which you are free loading with your other siblings.

[Ringo33]

There you go again. Silent is golden.

You are right, dont brag too much on social media. If you want to show off, do it in the real world.