Results 1 to 14 of 14

Thread: Private property prices remain affordable for first-time buyers: REDAS

  1. #1
    Join Date
    Jul 2009
    Posts
    1,549

    Default Private property prices remain affordable for first-time buyers: REDAS

    Private property prices remain affordable for first-time buyers: REDAS
    By Julie Quek | Posted: 22 September 2010 2220 hrs


    SINGAPORE : Private property prices in Singapore have remained at affordable levels to first-time home buyers despite the recent run-up in the housing market here.

    The government's recent announcement of cooling measures also had little impact on affordability.

    The Real Estate Developers' Association of Singapore (REDAS) said this may help boost prospects in the local property market.

    These days, first-time buyers for private properties use about 36 per cent of their monthly take-home pay to service their housing loans every month.

    REDAS said this is a healthy rate, as it is lower than the norm of 40 per cent.

    Analysts agree, saying that a below 40 per cent affordability ratio means that housing prices are still affordable.

    Back in 1997, during the peak of property boom, the affordability ratio went up to as high as 50 per cent.

    This means that almost half of a home owner's salary would go into financing the mortgage, making it difficult for Singaporeans to buy a property.

    "The level that we have right now of 30 to 40 per cent is pretty much in line with market. So today's market, there's no sense of panic. Properties are still fairly affordable," said Donald Han, MD of Cushman & Wakefield.

    Analysts believe the improved affordability may continue to prop up sentiment in the property market and boost sales in the longer term.

    They also believe the local property sector to perform strongly this year, with a total sale of 14,000 homes by December.

    "I think 14,000 is definitely within the market reach, because there's still a lot of liquidity in the market," said Colin Tan, head of Research & Consultancy at Chesterton Suntec International.

    Analysts also expect property prices to continue to increase in the long term. - CNA /ls

    By Julie Quek | Posted: 22 September 2010 2220 hrs



    SINGAPORE : Private property prices in Singapore have remained at affordable levels to first-time home buyers despite the recent run-up in the housing market here.

    The government's recent announcement of cooling measures also had little impact on affordability.

    The Real Estate Developers' Association of Singapore (REDAS) said this may help boost prospects in the local property market.

    These days, first-time buyers for private properties use about 36 per cent of their monthly take-home pay to service their housing loans every month.

    REDAS said this is a healthy rate, as it is lower than the norm of 40 per cent.

    Analysts agree, saying that a below 40 per cent affordability ratio means that housing prices are still affordable.

    Back in 1997, during the peak of property boom, the affordability ratio went up to as high as 50 per cent.

    This means that almost half of a home owner's salary would go into financing the mortgage, making it difficult for Singaporeans to buy a property.

    "The level that we have right now of 30 to 40 per cent is pretty much in line with market. So today's market, there's no sense of panic. Properties are still fairly affordable," said Donald Han, MD of Cushman & Wakefield.

    Analysts believe the improved affordability may continue to prop up sentiment in the property market and boost sales in the longer term.

    They also believe the local property sector to perform strongly this year, with a total sale of 14,000 homes by December.

    "I think 14,000 is definitely within the market reach, because there's still a lot of liquidity in the market," said Colin Tan, head of Research & Consultancy at Chesterton Suntec International.

    Analysts also expect property prices to continue to increase in the long term. - CNA /ls
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

  2. #2
    Join Date
    Nov 2008
    Posts
    8

    Default

    What utter crap....if interest rates go up...that 36% is no longer true....
    In 1997 the effective housing loan interest rate ran as high as 6.25% for some. Do your numbers...how many home owners now will be paying more than 50% of their income. just more agents trying to boost sentiments....I repeat what utter crap!!...better trust the govt. They implement measures to protect us.


  3. #3
    Join Date
    Apr 2009
    Posts
    923

    Default

    Quote Originally Posted by MGM Grand
    What utter crap....if interest rates go up...that 36% is no longer true....
    In 1997 the effective housing loan interest rate ran as high as 6.25% for some. Do your numbers...how many home owners now will be paying more than 50% of their income. just more agents trying to boost sentiments....I repeat what utter crap!!...better trust the govt. They implement measures to protect us.

    Agents are motivated by Money and Money alone. If the other side pays him/her more than you do, you may be betrayed.

  4. #4
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    Last time the policemen wear kaki shorts, do we expect them to do so now?
    Every time things are different. Based on current climate, it is unlikely that we will see rates above 3% by end of 2011 (it may stagnant at 1.5-2% until then?) Will we ever see rate of 6.25% again within 10 years after such massive money printing??

    Quote Originally Posted by MGM Grand
    What utter crap....if interest rates go up...that 36% is no longer true....
    In 1997 the effective housing loan interest rate ran as high as 6.25% for some. Do your numbers...how many home owners now will be paying more than 50% of their income. just more agents trying to boost sentiments....I repeat what utter crap!!...better trust the govt. They implement measures to protect us.


  5. #5
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    last time HDB 5k nia

  6. #6
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    Quote Originally Posted by teddybear
    Last time the policemen wear kaki shorts, do we expect them to do so now?
    Every time things are different. Based on current climate, it is unlikely that we will see rates above 3% by end of 2011 (it may stagnant at 1.5-2% until then?) Will we ever see rate of 6.25% again within 10 years after such massive money printing??
    Inflation will force the governments elsewhere e.g. Malaysia, New Zealand and Australia to raise the interest rate.

    Singapore inflation in Aug is already 3.1% compared to last year Aug mainly due to low interest rate and higher property prices
    http://www.theedgesingapore.com/the-...8-months-.html

    My bet is next year we see a gradual rise in interest rate in Singapore 2H 2011. With so many people borrowing a lot of money to play properties, it will be interesting.

  7. #7
    Join Date
    Apr 2009
    Posts
    923

    Default


    Print Article

    >> Back to the articleSep 24, 2010SINGAPORE ECONOMY
    Inflation at 18-month high

    But it is no threat and MAS won't respond by altering exchange rates, say analystsBy Robin Chan

    INFLATION continues to creep up and is now at an 18-month high, driven by costlier transport, housing and food.

    The consumer price index (CPI), which measures the price of a basket of goods, rose 3.3 per cent in August compared to the same month last year and 0.5per cent compared to July.
    But economists do not regard the inflation level as a threat to the economy or high enough to prompt the Monetary Authority of Singapore (MAS) to tinker with its exchange rate strategy.

    Transport was the main culprit last month, rising 9 per cent year-on-year as tighter COE quotas drove up car prices - although this eased from July's 10.7 per cent rise.
    Housing, which makes up a quarter of the CPI basket, was up 3.1 per cent in August from a year ago.

    Food, which has been in the picture with recent weather-related shocks, was up 1.7 per cent.
    Copyright © 2007 Singapore Press Holdings. All rights reserved.
    Privacy Statement & Condition of Access

  8. #8
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    Please get the fact right! - Property price is never and has never been a component of inflation index! Even those reporters also never get the fact right! The Housing costs are not property prices but rentals! (Yes, rentals are up!).

    Quote Originally Posted by hyenergix
    Inflation will force the governments elsewhere e.g. Malaysia, New Zealand and Australia to raise the interest rate.

    Singapore inflation in Aug is already 3.1% compared to last year Aug mainly due to low interest rate and higher property prices
    http://www.theedgesingapore.com/the-...8-months-.html

    My bet is next year we see a gradual rise in interest rate in Singapore 2H 2011. With so many people borrowing a lot of money to play properties, it will be interesting.

  9. #9
    Join Date
    Aug 2009
    Posts
    221

    Default

    This is clearly another feeble effort to "prop" up the private property market.

  10. #10
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by teddybear
    Please get the fact right! - Property price is never and has never been a component of inflation index! Even those reporters also never get the fact right! The Housing costs are not property prices but rentals! (Yes, rentals are up!).
    seriously are you 100 pct certain ?

    a 1 bedroom apt in mahattan 700 sqft , 10 mins walk to subway ..is abt 3k usd = 4k SGD ...
    a 1 bedroom 500sqft in killiney ..walking dist to MRT ..whats the rental ?


    cars are definitely cheape in US

    when i came to NY ..we did a cost of living study
    and spore, due to transport + housing ... has pushed cost of living in spore to exceed NY

    looking at rental between the 2 cities .. about par ..

    so why did the report says spore is costlier ? due to transport n housing ?

    cos looking at property prices of a cosmo and a cosmo to be .. spore is expensive

    can u cfm that it is rental and NOT price ?

  11. #11
    Join Date
    Apr 2009
    Posts
    5,841

    Default

    i think developers must know people in the press who can help them paint rosey pic of property market here...

    Quote Originally Posted by pengful
    This is clearly another feeble effort to "prop" up the private property market.

  12. #12
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    99% confirmed.

    Quote Originally Posted by proud owner
    seriously are you 100 pct certain ?

    a 1 bedroom apt in mahattan 700 sqft , 10 mins walk to subway ..is abt 3k usd = 4k SGD ...
    a 1 bedroom 500sqft in killiney ..walking dist to MRT ..whats the rental ?


    cars are definitely cheape in US

    when i came to NY ..we did a cost of living study
    and spore, due to transport + housing ... has pushed cost of living in spore to exceed NY

    looking at rental between the 2 cities .. about par ..

    so why did the report says spore is costlier ? due to transport n housing ?

    cos looking at property prices of a cosmo and a cosmo to be .. spore is expensive

    can u cfm that it is rental and NOT price ?

  13. #13
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    Costs of living wise if exclude property and car, NY more expensive right? If consider public transport, food, maintenance of house, etc, NY more expensive right? How can NY be cheaper than SG (if we didn't take income, property, car) into consideration? How much you need to spend eating at a cafe/small eatery in NY vs eating at hawker centres and coffee shops in SG?

    Quote Originally Posted by proud owner
    seriously are you 100 pct certain ?

    a 1 bedroom apt in mahattan 700 sqft , 10 mins walk to subway ..is abt 3k usd = 4k SGD ...
    a 1 bedroom 500sqft in killiney ..walking dist to MRT ..whats the rental ?


    cars are definitely cheape in US

    when i came to NY ..we did a cost of living study
    and spore, due to transport + housing ... has pushed cost of living in spore to exceed NY

    looking at rental between the 2 cities .. about par ..

    so why did the report says spore is costlier ? due to transport n housing ?

    cos looking at property prices of a cosmo and a cosmo to be .. spore is expensive

    can u cfm that it is rental and NOT price ?

  14. #14
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    its time for ang mors to share one lobster lah!!!

Similar Threads

  1. Private Property is still affordable
    By Arcachon in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 23-03-21, 23:13
  2. Redas calls for ABSD deferment for first-time HDB upgraders to private property
    By New Reporter in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 01-10-20, 18:09
  3. Private home prices remain flat in Dec
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 01-02-17, 18:39
  4. First-time buyers prop up non-central prices
    By minority in forum Singapore Private Condominium Property Discussion and News
    Replies: 37
    -: 03-04-13, 15:21
  5. HDB flats will remain affordable
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 11-11-06, 05:54

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •