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Kevin Tan
06-10-15, 11:39
http://www.theedgeproperty.com.sg/content/why-property-cooling-measures-should-be-reduced

Why property cooling measures should be reduced

By Paul Ho / URA, Singapore Department of Statistics | October 5, 2015 2:34 PM MYT
Although Singapore runs a surplus almost every election cycle, this surplus excludes land sales. Thus, the city-state runs a much larger “surplus” than reported in the budget. While the International Monetary Fund treats land sales as revenues, Singapore’s Ministry of Finance treats land sales as capital receipts. What this means is that land sales are added to the country’s past reserves as capital gains/losses.

According to URA, from January 2011 to September 2015, commercial, hotel, white, industrial, residential (excluding landed housing) and other sites amounted to some $24 billion in land sales. This figure excluded land sales from HDB for executive condominium (ECs), built-toorder and Design, Build and Sell Scheme sites.

As Singapore maintains a balanced budget, it is puzzling why there is still a need to release so many land parcels, considering that the sales proceeds are not even considered revenues to balance a budget, but are parked away into reserves.

According to URA, there are 64,437 private non-landed units to be completed between 2H2015 and 2019, based on 2Q2015 forecasts. An estimated 11,105 non-landed, 513 landed and 1,573 EC units will be completed in 2H2015.

On the other hand, demand over the past one decade for private non-landed homes averaged only 8,000 units annually, based on the change in occupied stock for non-landed homes. On a separate note, there were around 40,000 unsold units in the pipeline (private and ECs) as at end-2Q2015. If the current trend of 8,000 new sales annually were to continue, we would have five years of supply overhang in the pipeline, even assuming that all land sales are stopped now until 2019. The oversupply would affect 2016 the most where there are 20,381 non-landed units expected to be completed.

From 2005 to 2014, Singapore’s population grew 1.3 million and housing stock rose 171,870 units, indicating that there are 7.58 people per household (see table). This is more than double the average Singaporean’s household size of 3.5 to 3.6, which could be partly because workers either stay in dormitories or rent rooms or domestic helpers stay with their employers.





If we are working on 64,000 units becoming ready in 2H2015 through 2019, that works out to an average of new 15,000 units a year, whereas our current demand trend is 8,000 units. This indicates a possible build-up of unsold units numbering 25,000 to 30,000 in four years’ time, which will add to the already elevated private residential unsold rate.

http://www.theedgeproperty.com.sg/content/why-property-cooling-measures-should-be-reduced

Arcachon
06-10-15, 18:35
News, I cho0se what I want you to know.

https://mndsingapore.files.wordpress.com/2015/02/pipeline-supply-2015_v1b.jpg

Arcachon
06-10-15, 18:43
http://www.teoalida.com/singapore/HDB-Resale-Price-Index.png

http://www.teoalida.com/singapore/hdbprices/

Arcachon
06-10-15, 19:02
https://scontent-mad1-1.xx.fbcdn.net/hphotos-xta1/v/t1.0-9/12112228_10206060965296094_8612427424855778033_n.jpg?oh=e69e72a6e1ef849a31657166ed6051f8&oe=56CE8503

Arcachon
06-10-15, 19:05
https://fbcdn-sphotos-g-a.akamaihd.net/hphotos-ak-xal1/v/t1.0-9/12096010_10206060971896259_6544082593223646673_n.jpg?oh=2f6270831542e192a05a0d37420a0150&oe=56CE3F4C&__gda__=1451754685_01b9a5dc6e6eefd97d2621221a9fca5c

Arcachon
06-10-15, 19:18
https://scontent-mad1-1.xx.fbcdn.net/hphotos-xap1/v/t1.0-9/12107893_10206061005857108_7213548999911171654_n.jpg?oh=f087c38e30f02abd1c12d3061a620752&oe=569B0457

Arcachon
06-10-15, 19:37
https://scontent-mad1-1.xx.fbcdn.net/hphotos-xap1/t31.0-8/12109847_10206061050778231_2925039214184464893_o.jpg

Arcachon
06-10-15, 20:34
http://sbr.com.sg/sites/default/files/news/GraphTHURS.PNG


Chart of the Day: See the massive spike in Singapore’s home vacancy rate

Large oversupply looms over private developers.

Analysts fear that the government’s efforts to scale down residential supply may not be enough to avert a looming oversupply in 2015 to 2017.

A report by Barclays Research noted that the vacancy rate could hit 9.9% by 2016 assuming an annual demand of 15,500 units

According to Barclays Research, “We believe this is testament to the looming oversupply in 2015-2017 as the government reiterated the reduced future supply will be ‘added to the existing large pipeline supply of more than 90,000 private residential units (including ECs)’.”

Here’s more from Barclays:

Private housing (including ECs) on the Confirmed List for 2H14 is down 15% h/h and 34%
y/y to 3,915 units. The bulk of the supply is now made up by the Reserve List, which has
also been scaled down and which is unlikely to be triggered for sale should market
conditions continue to deteriorate.

We maintain our negative stance on the Singapore residential sector as we see an oversupply of private housing properties and expect prices to fall 20% by 2015E in view of an expected interest rate rise, coinciding with peak supply, and think the vacancy rate could reach a record 10% by 2016E.

- See more at: http://sbr.com.sg/residential-property/news/chart-day-see-massive-spike-in-singapore%E2%80%99s-home-vacancy-rate#sthash.EMnawsJp.dpuf

Kelonguni
06-10-15, 21:18
Yes, by right we are in the middle of the storm.

Storm in a teacup?


http://sbr.com.sg/sites/default/files/news/GraphTHURS.PNG


Chart of the Day: See the massive spike in Singapore’s home vacancy rate

Large oversupply looms over private developers.

Analysts fear that the government’s efforts to scale down residential supply may not be enough to avert a looming oversupply in 2015 to 2017.

A report by Barclays Research noted that the vacancy rate could hit 9.9% by 2016 assuming an annual demand of 15,500 units

According to Barclays Research, “We believe this is testament to the looming oversupply in 2015-2017 as the government reiterated the reduced future supply will be ‘added to the existing large pipeline supply of more than 90,000 private residential units (including ECs)’.”

Here’s more from Barclays:

Private housing (including ECs) on the Confirmed List for 2H14 is down 15% h/h and 34%
y/y to 3,915 units. The bulk of the supply is now made up by the Reserve List, which has
also been scaled down and which is unlikely to be triggered for sale should market
conditions continue to deteriorate.

We maintain our negative stance on the Singapore residential sector as we see an oversupply of private housing properties and expect prices to fall 20% by 2015E in view of an expected interest rate rise, coinciding with peak supply, and think the vacancy rate could reach a record 10% by 2016E.

- See more at: http://sbr.com.sg/residential-property/news/chart-day-see-massive-spike-in-singapore%E2%80%99s-home-vacancy-rate#sthash.EMnawsJp.dpuf

Arcachon
06-10-15, 22:51
Not enough Data.

Others variable was not included.

If property investment is so easy, then no one is working just buy property and rent out.