Page 1 of 2 12 LastLast
Results 1 to 30 of 32

Thread: Ghost town alert: Vacant homes up 32% to 16,877

  1. #1
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default Ghost town alert: Vacant homes up 32% to 16,877

    from SBR

    Ghost town alert: Vacant homes up 32% to 16,877

    It will get worse in two years.

    According to Savills, with more homes completed over the past year, the market has seen a signii cant rise in vacant units islandwide. From the trough in Q1/2011, the number of vacant units has increased by 32% from 12,740 to 16,877 units in Q3/2012, pushing the vacancy rate up from 4.9% to 6.1% over the same period. As of Q3 this year, the number of vacant condos stands at 14,198 units and vacant houses at 2,679 units.

    The vacancy rate in the Central region was 7.9% in Q3/2012, above the five-year average of 7.5%. Similarly, the vacancy rates in the eastern and western regions of Singapore were 4.5% and 4.0% in Q3, higher than the 3.5% and 3.6% five-year averages respectively.

    The vacancy rate increases are in tandem with a surge in condo completions in these areas. Some major completions over the past year include Caspian (712 units) and Mi Casa (457 units) in the west; and Double Bay Residences (646 units), Waterfront Waves (405 units) and Optima (297 units) in the east. The completions in the Central region include Reflections (1,129 units), Floridian (336 units), The Trizon (289 units), Parvis (248 units), Viva (235units) and The Wharf (186 units).

    The number of vacant units is set to increase in the months ahead as an avalanche of new homes will be completed within the next two years. According to URA data, 91,869 new homes will be released to the market in the next i ve years, more than half of which have been sold. The growing supply of new homes poses a significant risk to investors who have bought private homes for rental investment, particularly if interest rates should rise.

    Although it has been reported that many new homes were bought for owner occupation, the emergence of shadow spaces when owners relocate into their new premises may prove to be an additional challenge for both the leasing and sales markets. If demand from population growth does not rise in tandem and interest rates start to rise, a signii cant rental correction cannot be discounted. The likelihood of an interest-rate spike is, however, small for the moment.


  2. #2
    Join Date
    Oct 2010
    Posts
    2,094

    Default

    read from another thread that the condo can be easily filled for the next 10-20 years
    I took the road less traveled by, and that has made all the difference. - Robert Frost quotes (American poet, 1874-1963)

  3. #3
    Join Date
    Feb 2011
    Posts
    8,926

    Default

    This seems to be consistent with rental going down or flat in October as well as forumers comment about empty units
    Ride at your own risk !!!

  4. #4
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by phantom_opera
    This seems to be consistent with rental going down or flat in October as well as forumers comment about empty units
    Owners rather leave it empty then lowet rent. Owner can afford to hold.

  5. #5
    ikan bilis's Avatar
    ikan bilis is offline i'm Buaya ! Girls BEWARE !!...
    Join Date
    Apr 2011
    Posts
    1,385

    Default

    aiya... mai kia...


    up by 30+%, not vacancy rate at 30+%... and,
    hdb whole flat rental so tight like what... condo rental sure got good support 1...

  6. #6
    Join Date
    Aug 2012
    Posts
    379

    Default

    Quote Originally Posted by leesg123
    Owners rather leave it empty then lowet rent. Owner can afford to hold.
    there will be owner who lower the rent to keep it occupies.

  7. #7
    Join Date
    May 2009
    Posts
    616

    Default

    Quote Originally Posted by leesg123
    Owners rather leave it empty then lowet rent. Owner can afford to hold.

    why leave it empty? As long as the rental still bring in some net income, most people will rent out rather than leave it empty.

  8. #8
    Join Date
    Jan 2009
    Posts
    336

    Default

    ghost town?
    this report says 2013 property might climb another 10%


    Private property prices set to keep rising in 2013: Report

    Published on Dec 12, 2012

    By Esther Teo, Property Reporter


    SHARPLY rising land costs, strong developer balance sheets and low interest rates should all combine to make 2013 another halcyon year for the property industry, an expert said.

    Overall private home prices are likely to keep climbing on the back of rising land costs, increasing by up to 10 per cent next year, Savills Singapore research head Alan Cheong said in a report released yesterday.

    Non-landed mass market homes are expected to see the steepest rise of 10 to 15 per cent, while the luxury market may also enjoy a 3 to 5 per cent price gain, surpassing its previous peak in 2007.

    This is because astute buyers will continue to seek good buys in the luxury segment, as prices here are still lower than in Hong Kong, Mr Cheong added.

    The property market has enjoyed a banner year, with a record-breaking 19,792 new homes sold in the first 10 months of the year, surpassing the previous high of 16,292 for the whole of 2010.

    Executive condominiums (ECs) have also enjoyed a spectacular run, with more than 4,000 units expected to be sold by the end of the year - another record.

    Only 3,935 EC units were sold in 2010 and last year combined.

    "Due to a significant run-up in private condo prices, ECs will remain an attractive long-term investment asset, with demand probably surpassing that of 2012," the report noted.

    But tiny shoebox homes of 500 sq ft or less seem to have fallen out of favour with home buyers.

    The proportion of shoebox homes sold, out of all new condo sales, has fallen from a three-year peak of 21 per cent in the third quarter of last year to a low of just 7 per cent in the fourth quarter of this year.

    This is also well down from the three-year average of 14 per cent, Savills' noted.

    "The downtrend could be due to fewer shoebox units being built. There has also been an increase in demand for larger-sized units in tandem with the growth in wealth here," the report said.

    But the overall property market remains resilient and now has "too strong a momentum to stop", Mr Cheong added.

    Quantitative easing in the United States should see liquidity flowing into Asian economies like Singapore in search of a safe haven and currency appreciation.

    Coupled with rock-bottom interest rates that are likely to remain low next year, some fresh external demand could be anticipated, he said.

    However, this may be offset by local buying fatigue from the many new launches over the past years and increasing home completions.

    Barring further property measures, total primary sales may hover between 16,000 and 18,000 units next year, less than this year's likely record of 23,000 to 24,000 units, the report noted.

    [email protected]

  9. #9
    Join Date
    Feb 2011
    Posts
    8,926

    Default

    need another 1-2m of falling rental to confirm the trend .... falling rental may not automatically translate the lower resale prices
    Ride at your own risk !!!

  10. #10
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by wt_know
    ghost town?
    this report says 2013 property might climb another 10%
    go to emerald hill ... there are 2 condos there ... almost empty ...for 1 over years ...

    probably only a few units occupied ..

    i am not sure if they were sold and couldnt find tenants ... or not sold at all ...

    1 of them is 111 Emerald hill

  11. #11
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    Quote Originally Posted by proud owner
    go to emerald hill ... there are 2 condos there ... almost empty ...for 1 over years ...

    probably only a few units occupied ..

    i am not sure if they were sold and couldnt find tenants ... or not sold at all ...

    1 of them is 111 Emerald hill
    3 bedders n above? I feel tt they r at highest risk.

  12. #12
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by hyenergix
    3 bedders n above? I feel tt they r at highest risk.

    when i was back in spore early this yr ... Napier 8 ... ghost condo ?

    hardly occupied ...

    they can consider renting to Gleneagles .... who has shortage of beds

  13. #13
    Join Date
    Apr 2009
    Posts
    1,612

    Default

    Quote Originally Posted by proud owner
    go to emerald hill ... there are 2 condos there ... almost empty ...for 1 over years ...

    probably only a few units occupied ..

    i am not sure if they were sold and couldnt find tenants ... or not sold at all ...

    1 of them is 111 Emerald hill
    Taking a tour at Reflections and looking at the empty unit is quite scary ...

  14. #14
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by bakasa2002
    Taking a tour at Reflections and looking at the empty unit is quite scary ...

    i was told quite a few tenants from Carribean managed to secure a rental at Reflections at the same price ... with MUCH better view ..


    any truth ?

  15. #15
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    Quote Originally Posted by proud owner
    when i was back in spore early this yr ... Napier 8 ... ghost condo ?

    hardly occupied ...

    they can consider renting to Gleneagles .... who has shortage of beds
    Mostly 3-4 bedders for this condo. 1-2 bedders should be safer for the next few years.

  16. #16
    Join Date
    Dec 2011
    Posts
    1,763

    Default

    Quote Originally Posted by bakasa2002
    Taking a tour at Reflections and looking at the empty unit is quite scary ...
    Its hardly surprising, people now are investing in property for the reason of wealth preservation and not based on yield. They are happy just to have a portfolio of properties. They may sell to another buyer that may also leave it empty. Its the new currency for the wealthy now.

  17. #17
    Join Date
    Mar 2012
    Posts
    7,827

    Default

    Quote Originally Posted by proud owner
    go to emerald hill ... there are 2 condos there ... almost empty ...for 1 over years ...

    probably only a few units occupied ..

    i am not sure if they were sold and couldnt find tenants ... or not sold at all ...

    1 of them is 111 Emerald hill
    there is one development there which is not selling very well. they tried to seek URA to allow them to rent out vacant units but rejected.

  18. #18
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by wind30
    why leave it empty? As long as the rental still bring in some net income, most people will rent out rather than leave it empty.
    Need to think long term. Rent out cheap, tenant usually problematic type, end up the unit will be rotten when tenancy ends, need to plough into renovation to restore. So not worth to lower rent just to rent out. so sometimes more worth Not to rent out.

  19. #19
    Join Date
    Jun 2009
    Posts
    2,309

    Default

    This trend will continue for a while.
    People may not be aware that with the subdued interest rates for sooooo loooong, people are willing to accept lower yield on their investments.

    Put it this way, even if e units are left empty and property prices up 10% as announced today for 2013, it is better to hold empty units and pay 1% interest to gain 10% cap gains, then to leave money in the bank for 0.x% interest.

    DKSG

  20. #20
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    Let's see what Bernarke says tonight.
    Quote Originally Posted by DKSG
    This trend will continue for a while.
    People may not be aware that with the subdued interest rates for sooooo loooong, people are willing to accept lower yield on their investments.

    Put it this way, even if e units are left empty and property prices up 10% as announced today for 2013, it is better to hold empty units and pay 1% interest to gain 10% cap gains, then to leave money in the bank for 0.x% interest.

    DKSG

  21. #21
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    China has many empty units for several years. Going forward houses become a store of value.

  22. #22
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by hyenergix
    China has many empty units for several years. Going forward houses become a store of value.
    Truly a hard asset. Vs share (just numbers)

  23. #23
    Join Date
    Jan 2009
    Posts
    336

    Default

    just checked propertyguru
    subsales $5.5M to $6.5M
    rental $12k to $13k per month
    i guess only top atas FT can afford the rent ...


    Quote Originally Posted by proud owner
    go to emerald hill ... there are 2 condos there ... almost empty ...for 1 over years ...

    probably only a few units occupied ..

    i am not sure if they were sold and couldnt find tenants ... or not sold at all ...

    1 of them is 111 Emerald hill

  24. #24
    Join Date
    Jan 2009
    Posts
    336

    Default

    hold property with no tenant and not staying - what is the property tax rate?

    Quote Originally Posted by DKSG
    This trend will continue for a while.
    People may not be aware that with the subdued interest rates for sooooo loooong, people are willing to accept lower yield on their investments.

    Put it this way, even if e units are left empty and property prices up 10% as announced today for 2013, it is better to hold empty units and pay 1% interest to gain 10% cap gains, then to leave money in the bank for 0.x% interest.

    DKSG

  25. #25
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    Quote Originally Posted by wt_know
    just checked propertyguru

    subsales $5.5M to $6.5M
    rental $12k to $13k per month
    i guess only top atas FT can afford the rent ...
    Some fundamental changes in hiring. Large new units in CCR in trouble.

  26. #26
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by wt_know
    hold property with no tenant and not staying - what is the property tax rate?
    Can claim back:
    http://www.iras.gov.sg/irasHome/page04.aspx?id=2380

  27. #27
    Join Date
    Jun 2009
    Posts
    2,309

    Default

    Quote Originally Posted by leesg123
    Thanks for helping me reply.

    DKSG

  28. #28
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    Better than holding Gold...

    Quote Originally Posted by wt_know
    hold property with no tenant and not staying - what is the property tax rate?

  29. #29
    Join Date
    Apr 2010
    Posts
    1,102

    Default

    Quote Originally Posted by wt_know
    hold property with no tenant and not staying - what is the property tax rate?
    If it's vacant,property tax should be same as owner occupier's rate..

  30. #30
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    Quote Originally Posted by fiat500
    If it's vacant,property tax should be same as owner occupier's rate..
    Loophole for large private developers hoarding their unsold units?

Similar Threads

  1. Vacant houses
    By princess_morbucks in forum Landed Property
    Replies: 13
    -: 10-11-13, 12:03
  2. My next door unit has been Vacant for months
    By Piglet in forum Singapore Private Condominium Property Discussion and News
    Replies: 69
    -: 25-10-11, 14:50
  3. 'Ghost towns' vs fewer homes
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 24-03-11, 22:25
  4. Jessica Cheam: Ghost towns vs fewer homes
    By ecimbew in forum Singapore Private Condominium Property Discussion and News
    Replies: 27
    -: 23-03-11, 14:45
  5. Watch this vacant office space
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 27-04-09, 09:51

Posting Permissions

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