Results 1 to 8 of 8

Thread: More developers see higher prices for new home launches

  1. #1
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default More developers see higher prices for new home launches

    http://www.businesstimes.com.sg/sub/...48740,00.html?

    Published January 13, 2011

    More developers see higher prices for new home launches

    Property market's Future Sentiment Index rose to 5.7 in Q4 from 4.8 in Q3

    By EMILYN YAP


    (SINGAPORE) Developers' outlook for the property sector turned rosier in the fourth quarter last year, with a larger proportion of them predicting higher prices for new residential launches.

    Preliminary findings from the Real Estate Sentiment Index (RESI) point to improved sentiment from the third quarter, when the industry was still coming to terms with the impact of property market cooling measures introduced on Aug 30.

    Steven Choo, CEO of the Real Estate Developers' Association of Singapore (Redas), gave a preview of RESI results for Q4 at a seminar yesterday. Redas and the National University of Singapore's Department of Real Estate jointly developed RESI.

    Based on survey responses so far, the Current Sentiment Index stood at 5.6 in Q4, up from 4.8 in Q3. For this category, respondents rate overall Singapore real estate market conditions now compared with six months ago.

    The Future Sentiment Index - where respondents rate overall property market conditions over the next six months - rose to 5.7 in Q4 from 4.8 in Q3.

    'We've actually seen a rebound,' Mr Choo said. 'We think it is an accurate reflection of our members' take on the market.'

    While the index readings rose in Q4, they did not surpass the levels seen in Q1 and Q2.

    Developers were also asked for their take on the primary residential market, and a majority of the respondents thought more launches and moderate price increases were possible.

    In Q4, 60 per cent of respondents believed that unit prices would be moderately higher. In Q3, just 12 per cent thought so.

    Some 76 per cent of respondents in Q4 also expected moderately or substantially more units to be launched, compared with 44 per cent in Q3.

    A developer, who declined to be named, suggested that good take-up for several big launches in Q4 buoyed sentiment. Spottiswoode Residences, Waterview and Robinson Suites were some which reported strong sales.

    Some industry watchers also reckoned that the sector's confidence grew as the impact of the tightening measures became clearer.

    A Hong Leong spokesman told BT: 'While we took a cautious outlook immediately following the August 2010 cooling measures, buyer demand continued to remain strong for the group's various projects.' Low interest rates and liquidity in the market contributed to the demand, he said.

    Credo Real Estate managing director Karamjit Singh also said: 'Like with any announcement, it takes at least a month or two for the dust to settle.'

    Even so, improved optimism does not mean that the measures had no effect - there is still 'a sense of caution in the air', he stressed.

    In the ongoing Q4 RESI survey, 69 per cent of respondents identified demand-side measures from the government as a potential risk to market sentiment.

    Although this proportion is less than Q3's 83 per cent, it is still big enough to make state intervention the second most feared risk.

    A possible slowdown in the global economy was the industry's top worry - 70 per cent of respondents said in Q4 that this was a potential risk. This is markedly higher than the 56 per cent a quarter ago.

  2. #2
    Join Date
    Oct 2009
    Posts
    1,857

    Default

    Because of this article new cooling measures were launched...

  3. #3
    Join Date
    May 2009
    Posts
    3,677

    Default

    i look at the other side of the coin. over the last 2 years, it's a clear fact that developers paid for land parcels at record breaking sky-high prices.

    did the government squirm and say "no way, jose. let's put in some brakes on this kind of behaviour"? no. it happily pocketed the money and sold even more land, and made even more profit.

    i remember in an interview, mbt argued that if govt keep bidding prices low, there's no guarantee that developers will pass the savings to buyers. probably true, but so it is conversely that if the land bid prices are high, developers have no choice but pass on the cost to buyers.

    personally, i think this round of punitive measures is a whole lot of BS. if the idea of speculators driving the prices at record breaking rate, then it's pure BS that this round of measures is slated to target at the speculators, that is purported to make up of 10-15% of property purchasers. the government wants the cake in its hands and eat it.

  4. #4
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    That's why resale prices of HDB also go north. Look at Duxton @ pinnacle, the prices at different stages of sales vary quite a bit because authority said they follow existing market price. Property prices in singapore will trend higher in future.
    Quote Originally Posted by eng81157
    i look at the other side of the coin. over the last 2 years, it's a clear fact that developers paid for land parcels at record breaking sky-high prices.

    did the government squirm and say "no way, jose. let's put in some brakes on this kind of behaviour"? no. it happily pocketed the money and sold even more land, and made even more profit.

    i remember in an interview, mbt argued that if govt keep bidding prices low, there's no guarantee that developers will pass the savings to buyers. probably true, but so it is conversely that if the land bid prices are high, developers have no choice but pass on the cost to buyers.

    personally, i think this round of punitive measures is a whole lot of BS. if the idea of speculators driving the prices at record breaking rate, then it's pure BS that this round of measures is slated to target at the speculators, that is purported to make up of 10-15% of property purchasers. the government wants the cake in its hands and eat it.

  5. #5
    Join Date
    Nov 2010
    Posts
    1,128

    Default

    Quote Originally Posted by DC33_2008
    That's why resale prices of HDB also go north. Look at Duxton @ pinnacle, the prices at different stages of sales vary quite a bit because authority said they follow existing market price. Property prices in singapore will trend higher in future.

    It is also couples cannot wait for 3-5 years for BTOs to complete.

    Besides Mah Bow Tan cut the supply of new HDB flats drastically.

    Which couple can plan 3-5 years ahead of time when even government cannot plan that far. (Floods, Immigration demand for housing, transport, education).

    Most couples, PRs are pushed to buy resale HDB flats which caused excessive demand and too many people chasing too few houses.

    Marriage usually are plan 1-2 years ahead of time maximum.

    Prices over last 5 years have increased by 60% to 100%.

    Which salary besides Ministers increased by so much ??


    When developers see HDB flats price increased, they cannot sell below HDB flats right ??

    Government is the biggest culprit for this housing inflation.

  6. #6
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    if PR cannot buy resale HDB flats at all...resale prices cfm drop...

    PR shdnt allowed to buy our subsidised flat in the first plc rite? they cant afford condo....make them rent HDB mah....hehe

  7. #7
    Join Date
    Nov 2010
    Posts
    1,128

    Default

    Quote Originally Posted by devilplate
    if PR cannot buy resale HDB flats at all...resale prices cfm drop...

    PR shdnt allowed to buy our subsidised flat in the first plc rite? they cant afford condo....make them rent HDB mah....hehe

    You must have heard the latest hoo-ha PR siblings can buy HDB together but Singaporean singles/siblings cannot.

  8. #8
    Join Date
    Jan 2011
    Posts
    65

    Thumbs up

    Quote Originally Posted by mantrix
    Because of this article new cooling measures were launched...
    hahahahahahahaha!

Similar Threads

  1. Give developers leeway to adjust prices and pay fat commissions at new home launches
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 11-01-22, 09:39
  2. Half of developers likely to cut prices of Singapore new launches
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 11-05-20, 14:47
  3. Higher home prices to stay, say some
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 12-07-10, 00:15
  4. Developers put home launches on fast track
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 10
    -: 26-02-10, 20:10
  5. Home developers may put launches on hold
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 10-11-08, 10:37

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •