reporter2
19-06-16, 23:30
http://sbr.com.sg/residential-property/in-focus/here%E2%80%99s-why-brexit-bad-news-singapore-property
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
17 Jun 16
Here’s why Brexit is bad news for Singapore property
It’s going to hurt market sentiment.
It’s a good time to be picky with Singapore property stocks, as they are expected to remain rangebound in the short term. Analysts feel that policy reversal is unlikely in the near term, and that Brexit may weigh on sentiment.
According to a report by CIMB, penalties could also continue to slam selling prices. Estimates also show residential prices correcting by 5-8% this year.
“The near term build-up in unsold inventory facing Qualifying Certificate and Additional Buyers Stamp Duty penalties by developers are likely to intensify in 2017. Hence, we think selected projects may see a heavier drag on selling prices as developers start to clear inventory,” CIMB notes.
Meanwhile, private home prices have corrected an average 9.1% from the 2013 peak, with city fringe prices tumbling 9.8% and suburb prices correcting 8% over the same period.
“This is due to financing restrictions and higher transaction costs that were put in place, which heightened supply and increased vacancies. With above-average new inventory coming onto the market over the next 2 years, we expect prices to continue to correct,” CIMB asserts.
As at March 2016, there were 20,516 and 12,760 new homes slated for completion between the 2Q16 to 2017.
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
17 Jun 16
Here’s why Brexit is bad news for Singapore property
It’s going to hurt market sentiment.
It’s a good time to be picky with Singapore property stocks, as they are expected to remain rangebound in the short term. Analysts feel that policy reversal is unlikely in the near term, and that Brexit may weigh on sentiment.
According to a report by CIMB, penalties could also continue to slam selling prices. Estimates also show residential prices correcting by 5-8% this year.
“The near term build-up in unsold inventory facing Qualifying Certificate and Additional Buyers Stamp Duty penalties by developers are likely to intensify in 2017. Hence, we think selected projects may see a heavier drag on selling prices as developers start to clear inventory,” CIMB notes.
Meanwhile, private home prices have corrected an average 9.1% from the 2013 peak, with city fringe prices tumbling 9.8% and suburb prices correcting 8% over the same period.
“This is due to financing restrictions and higher transaction costs that were put in place, which heightened supply and increased vacancies. With above-average new inventory coming onto the market over the next 2 years, we expect prices to continue to correct,” CIMB asserts.
As at March 2016, there were 20,516 and 12,760 new homes slated for completion between the 2Q16 to 2017.