Property prices to slide for another two years: UBS

[reporter2]

http://sbr.com.sg/residential-property/in-focus/property-prices-slide-another-two-years-ubs

Property prices to slide for another two years: UBS

RESIDENTIAL PROPERTY | Staff Reporter, Singapore
Published: 8 hours ago


Asset values are under threat.

Singapore's real estate market will continue to deteriorate for at least the next couple of years, with occupancy and rents under pressure from slow economic growth, weak demand and high space supply.

According to UBS analyst Wen-Ching Lee, asset values in the city will face obstacles arising from rising financing costs. Capitalization rates are also set to rise for the coming years.

"Property prices across the residential and commercial sectors are likely to decline for at least the coming two years as capitalization rates rise at a time when rents are under pressure from sluggish demand and rising supply. Investors may selectively take profit on their property investment at a time when yields are still historically very low, or significantly lengthen their investment horizon," Lee noted.

In the residential property space, Lee noted that developers have no escape from the continued decline in asset prices even if they delay the launch of their projects.

"Despite developers delaying projects, new units accounting for around 9% of existing stock are expected to be marketed between 2016 and 2018, adding further pressure to vacancies and rents. Higher mortgage rates are discouraging new buyers," she said.

“Singapore's real estate faces a challenging environment with already diminishing office rents and demand, rapidly declining rental reversion for all other sectors, while at the same time supply is increasing and higher interest rates push capitalization rates higher. We see suburban malls as the most resilient sector, while offices and hospitality are more cyclical,” Lee added.

[teddybear]

Now is 2016, another 2 years mean 2018.
Then 2019 another recession may be last for another 2-3 years.....
That means more likely property price will be down at least another 4 years or even longer at least until 2021 or even later????????? :banghead:

Oh gosh, all thanks to the property cooling measures!!!!!!!!! :playful:


http://sbr.com.sg/residential-property/in-focus/property-prices-slide-another-two-years-ubs

Property prices to slide for another two years: UBS

RESIDENTIAL PROPERTY | Staff Reporter, Singapore
Published: 8 hours ago


Asset values are under threat.

Singapore's real estate market will continue to deteriorate for at least the next couple of years, with occupancy and rents under pressure from slow economic growth, weak demand and high space supply.

According to UBS analyst Wen-Ching Lee, asset values in the city will face obstacles arising from rising financing costs. Capitalization rates are also set to rise for the coming years.

"Property prices across the residential and commercial sectors are likely to decline for at least the coming two years as capitalization rates rise at a time when rents are under pressure from sluggish demand and rising supply. Investors may selectively take profit on their property investment at a time when yields are still historically very low, or significantly lengthen their investment horizon," Lee noted.

In the residential property space, Lee noted that developers have no escape from the continued decline in asset prices even if they delay the launch of their projects.

"Despite developers delaying projects, new units accounting for around 9% of existing stock are expected to be marketed between 2016 and 2018, adding further pressure to vacancies and rents. Higher mortgage rates are discouraging new buyers," she said.

“Singapore's real estate faces a challenging environment with already diminishing office rents and demand, rapidly declining rental reversion for all other sectors, while at the same time supply is increasing and higher interest rates push capitalization rates higher. We see suburban malls as the most resilient sector, while offices and hospitality are more cyclical,” Lee added.

[realestateagent]

http://sghillviewpeak.com
Property Price may or may not slide? However, there will be a minimum profit margin that developer need to make. Nobody will want to lose money. Currently, projects going to TOP are still selling fast. For example, Kingsford Hillview Peak sold more than 70 units since Jan 2016. With this pace, hillview peak should be able to fully sold by the TOP date.

[realestateagent]

http://kingsfordwaterbaycondo.sg
Not all property prices will drop. Some projects are still holding on well. For example, Kingsford Waterbay just have a price adjustment on Feb 2016. Units are still selling fast. Will more than 50 units sold since Jan 2016, i would say that this project is selling pretty well. Their one bedroom is asking at a low quantum of below $600k.

[bargain hunter]

http://kingsfordwaterbaycondo.sg
Not all property prices will drop. Some projects are still holding on well. For example, Kingsford Waterbay just have a price adjustment on Feb 2016. Units are still selling fast. Will more than 50 units sold since Jan 2016, i would say that this project is selling pretty well. Their one bedroom is asking at a low quantum of below $600k.

how much discount compared to previous buyers were given?

[realestateagent]

Hi Bargain hunter,
you can drop an email to
http://kingsfordwaterbaycondo.sg/contact/

The developer sale team will get back to you shortly. Thank you

[bargain hunter]

Hi Bargain hunter,
you can drop an email to
http://kingsfordwaterbaycondo.sg/contact/

The developer sale team will get back to you shortly. Thank you

no thanks. kingsford should be punished for pushing land prices so high by bidding up land prices in these 2 areas.

[august]

no thanks. kingsford should be punished for pushing land prices so high by bidding up land prices in these 2 areas.

China developer...

[proud owner]

selling fast number by giving discount or price adjustment ....

sure make those who bought earlier KPKB .....

before they move in already unhappy ....

giving discount is already a sign of not doing well .......am i right ?

[bargain hunter]

selling fast number by giving discount or price adjustment ....

sure make those who bought earlier KPKB .....

before they move in already unhappy ....

giving discount is already a sign of not doing well .......am i right ?

kingsford hillview around 46% sold as of end feb.

kingsford waterbay, after discount, total sold 3xx out of 11xx. 8xx more units to go. around 30% sold as of end feb.

[thomastansb]

In Q1 2009, they said prices will continue to rot. lol. We know what happened after that.

Not that I think prices will go up or down, it is just that I no longer trust all these crap reports. One day, they will get it right isn't it? It is a 50/50 chance.

[august]

All it takes is for these china developers to start dumping and then we'll see.

[bargain hunter]

All it takes is for these china developers to start dumping and then we'll see.

owner rich wor.

http://news.asiaone.com/news/plush/kingsford-owner-33m-bungalow-buyer

need to dump meh?