Home prices fall after 4yrs
http://www.straitstimes.com/Breaking...ry_285041.html
Oct 2, 2008
Home prices fall after 4yrs
HDB resale flat prices still rising but at a slower pace.
By Fiona Chan
PRIVATE home prices in Singapore fell between July and September - the first time in over four years and after almost a year of deadlock between buyers and sellers in which home sales all but dried up.
Official estimates released by the Urban Redevelopment Authority (URA) on Thursday showed that overall prices of private residential properties slided 1.8 per cent in the third quarter, led by homes in the central region, which fell by about 2 per cent.
Suburban home prices, however, held steady with a marginal 0.1 per cent rise.
HDB resale flat prices are also still going strong, but at a slower pace. They rose 4.2 per cent in the third quarter, on top of a 4.5 per cent increase in the second quarter.
So far this year, private home prices have risen 2 per cent, while HDB resale prices have increased 13 per cent.
For the first time since 2006, the URA did not highlight the number of upcoming homes in the flash estimates, after concerns that the large headline supply figures would further dampen already gloomy sentiment.
Instead, the agency said housing supply statistics will be released along with the full set of third-quarter property data at the end of October.
The URA said early estimates showed the price index for private residential properties dropped to 174.3 points from 177.5 in the previous three-month period.
This is the first decline in the index since the first quarter of 2004, amid concerns over the global financial turmoil that has caused home sales to slump.
Private home sales in Singapore plummeted 81 per cent in August from a year ago, to the lowest level since March as a combination of global financial turmoil and the traditionally 'unlucky' Hungry Ghost month spooked buyers.
Poor demand and a looming housing glut are threatening to plunge the property market into a prolonged downturn, which could deal a blow to Singapore's top developers such as CapitaLand, CityDev and Keppel Land.
The advance estimates are compiled from transaction prices lodged during the first 10 weeks of the quarter as well as data from new apartments that have been booked.
The URA will release the official price index in four weeks.
URA expects Q3 private home prices to fall 1.8%
http://www.channelnewsasia.com/stori...379779/1/.html
URA expects Q3 private home prices to fall 1.8%
By Wong Siew Ying, Channel NewsAsia | Posted: 02 October 2008 1401 hrs
SINGAPORE: Private home prices in Singapore fell by 1.8 per cent in the third quarter, according to flash estimates released on Thursday by the Urban Redevelopment Authority.
This is the first time the index of private residential properties has dipped in four years to 174.3 points in the third quarter, compared to second quarter's price index of 177.5 points, which was a 0.2 per cent increase over the previous quarter.
The cost of high-end properties in prime districts continues to taper, with prices falling by 2 per cent quarter-on-quarter, but those in the mass market segment grew marginally by 0.1 per cent.
Some industry watchers say the figure is better than expected, given deflated investor sentiments amid concerns of a brewing global economic storm.
They expect a gradual sell-down of properties if prices trend down further and the economy takes a turn for the worse.
Director of Savillis, Ku Swee Yong, said: "There has been an increased urgency to sell. The good thing that is preventing that from happening on a very widespread scale is interest rates are still pretty low. We are worried about the potential job losses, but that has yet to happen in a big way."
Analysts project prices of private residential properties will slide by 2 per cent over the next 6 months. But they add that this is unlikely to trigger substantial sales as buyers will bide their time until prices bottom out.
Director of Consultancy & Research at Knight Frank, Nicholas Mak, said: "Developers will try to resist cutting prices, they may give different sorts of soft discounts. For example, they may give furniture vouchers, they may give renovation vouchers or other methods in a way to try to encourage the growth."
With the financial crisis unfolding in the US, market players say some investors are considering parking their funds in the property market instead of investing in financial instruments.
One analyst said that the number of enquires on properties has gone up since the collapse of investment bank Lehman Brothers.
In contrast, prices of resale public housing flats rose 4.2 per cent in the third quarter.
This is slightly lower than the 4.5 per cent increase registered in the second quarter, but property watchers say demand in this segment will continue to be robust.
Real estate agency Propnex says the Resale Price Index (RPI) of 137.4 is now the highest mark reached by the RPI since the last quarter of 1996, which saw an RPI of 136.9.
Property agents believe demand for resale flats will continue to be robust despite the Housing and Development Board's plan to offer more new units in the coming months, and the overall price outlook for the year could see a growth of between 15 and 17 per cent.
- CNA/yt
