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30-01-14, 11:35
http://www.straitstimes.com/archive/saturday/premium/top-the-news/story/housing-market-slowing-down-all-fronts-20140125
Housing market slowing down on all fronts
Published on Jan 25, 2014
By Cheryl Ong
EVIDENCE is mounting quickly that Singapore's housing market is slowing down on all fronts.
Prices of both private and public housing recorded sharper than expected fourth quarter declines, data released yesterday showed, with Housing Board (HDB) resale flat prices marking their first annual decline since 2005.
Cooling measures and stricter home loan rules are biting deeper, property analysts said.
Prices of HDB flats fell more than for private homes in the fourth quarter. On the private home front, the fall was the first quarterly drop in about two years, while rents slid for the first time since 2009.
Experts do not expect a turnaround this year, given a looming flood of new homes, an uncertain global economy and the continued impact of property measures.
"The market will be expected to come off a bit, because everyone is waiting for prices to fall," said property consultancy Knight Frank's research head Alice Tan.
Loan curbs and softer flat prices will mean HDB upgraders have less to spend, said Colliers director of research and advisory Chia Siew Chuin.
Ms Chanel Pang, 28, a sales account manager, is looking at upcoming launches. "Genuine homebuyers have the opportunity to go into the market now, since investors have less ability to buy."
Private home prices fell 0.9 per cent in the fourth quarter, a tad worse than the 0.8 per cent earlier tipped by the Urban Redevelopment Authority (URA).
HDB resale flat prices slid for a second quarter, dropping a steeper 1.5 per cent than the estimated 1.3 per cent fall.
For last year, private home prices rose just 1.1 per cent, the least since a dip in 2008, on heftier stamp duties and loan curbs.
HDB resale flat prices fell for the first time in eight years, sliding 0.6 per cent last year after a 6.6 per cent jump in 2012.
"Demand for HDB flats has been reduced by an engineering of policies for a sustainable public housing market, while the supply of new flats has been increased," said Mr Mohamed Ismail, chief executive of property firm PropNex.
He predicted that HDB resale prices could fall 5 per cent to 8 per cent this year, which may lure buyers back to the market. He also expects private home prices to ease 2 per cent.
Private home rents slid 0.5 per cent last quarter, reversing a 0.2 per cent gain in the third quarter.
Up to 18,003 completed private homes stayed empty as leasing supply exceeded demand. Ms Chia said as more units are completed, "rents could come under downward pressure".
Including executive condominiums, 19,907 units are expected to be built this year, URA said.
[email protected]
Housing market slowing down on all fronts
Published on Jan 25, 2014
By Cheryl Ong
EVIDENCE is mounting quickly that Singapore's housing market is slowing down on all fronts.
Prices of both private and public housing recorded sharper than expected fourth quarter declines, data released yesterday showed, with Housing Board (HDB) resale flat prices marking their first annual decline since 2005.
Cooling measures and stricter home loan rules are biting deeper, property analysts said.
Prices of HDB flats fell more than for private homes in the fourth quarter. On the private home front, the fall was the first quarterly drop in about two years, while rents slid for the first time since 2009.
Experts do not expect a turnaround this year, given a looming flood of new homes, an uncertain global economy and the continued impact of property measures.
"The market will be expected to come off a bit, because everyone is waiting for prices to fall," said property consultancy Knight Frank's research head Alice Tan.
Loan curbs and softer flat prices will mean HDB upgraders have less to spend, said Colliers director of research and advisory Chia Siew Chuin.
Ms Chanel Pang, 28, a sales account manager, is looking at upcoming launches. "Genuine homebuyers have the opportunity to go into the market now, since investors have less ability to buy."
Private home prices fell 0.9 per cent in the fourth quarter, a tad worse than the 0.8 per cent earlier tipped by the Urban Redevelopment Authority (URA).
HDB resale flat prices slid for a second quarter, dropping a steeper 1.5 per cent than the estimated 1.3 per cent fall.
For last year, private home prices rose just 1.1 per cent, the least since a dip in 2008, on heftier stamp duties and loan curbs.
HDB resale flat prices fell for the first time in eight years, sliding 0.6 per cent last year after a 6.6 per cent jump in 2012.
"Demand for HDB flats has been reduced by an engineering of policies for a sustainable public housing market, while the supply of new flats has been increased," said Mr Mohamed Ismail, chief executive of property firm PropNex.
He predicted that HDB resale prices could fall 5 per cent to 8 per cent this year, which may lure buyers back to the market. He also expects private home prices to ease 2 per cent.
Private home rents slid 0.5 per cent last quarter, reversing a 0.2 per cent gain in the third quarter.
Up to 18,003 completed private homes stayed empty as leasing supply exceeded demand. Ms Chia said as more units are completed, "rents could come under downward pressure".
Including executive condominiums, 19,907 units are expected to be built this year, URA said.
[email protected]