First-half private home sales to top previous 6 months

[mr funny]

http://www.todayonline.com/Business/...vious-6-months

First-half private home sales to top previous 6 months

by Ryan Huang Wenwu

04:47 AM Jun 17, 2011


SINGAPORE - More private homes are likely to be sold in the first half of this year compared to the second half of last year, based on figures published by the Urban Redevelopment Authority (URA).

The URA data shows 6,810 private homes were sold in the first five months of this year. With June sales still pending, the six-month total is set to surpass the second half of last year, when 7,526 units were snapped up. But analysts say this is unlikely to prompt the Government to introduce more property cooling measures in the short term.

They say that without the latest measures imposed in January, the sales in the first six months of this year could have been much higher. "The latest round of cooling measures in January is one of the most severe ones in the history. It still needs time for it to work its way through the system but certainly it has reduced the level of speculation," said Mr Nicholas Mak, SLP International's executive director of Research and Consultancy.

"If the Government rolls out cooling measures every few months, it does give the impression all the previous cooling measures they have implemented are seen to be ineffective," he said.

However, analysts note that the last round of cooling measures may have had an unintended effect of driving up public housing prices.

The cooling measures rolled out in January included the lowering of the loan to value limit for buyers with more than one outstanding mortgage to 60 per cent from 70 per cent.

Another change was the increase in the holding period for the imposition of seller's stamp duty from the three years to four years.

The increased difficulty of getting a second home may have led to fewer HDB resale flats being put on the market as potential sellers delay plans to upgrade to private units. This appears to be reflected in the rising trend in cash-over-valuation (COV)being paid.

For the first quarter, the median COV was S$21,000. According to some industry forecasts, the median COV is currently hovering around S$25,000 and is expected to hit S$30,000 by year-end.

[ysyap]

In 1st quarter when COV fell to $21k, experts explain because of CM4, less demand so COV dropped. Now, when COV rose to $25k, experts explain because of CM4, less supply so COV climbing up. Everything also they say... just twist their theories to explain the market statistics.

[devilplate]

Its high time for kbw to impose stricter rules on pr ownerships for resale hdb liao

[ysyap]

PR should be subjected to longer MOP coz its really so easy for them to take some profit and leave the country!

[hyenergix]

Its high time for kbw to impose stricter rules on pr ownerships for resale hdb liao

This will lead to pte properties price increase as or will choose pte instead.

[ysyap]

This will lead to pte properties price increase as or will choose pte instead.

Many of these PRs are not loaded with cash so may not turn to buy private. Its more like turn to rent private should they be denied HDB resale.