Results 1 to 2 of 2

Thread: Private housing prices 'may pass 1996 levels'

  1. #1
    Newbie
    Join Date
    Feb 2007
    Posts
    366

    Default Private housing prices 'may pass 1996 levels'

    July 6, 2007

    Private housing prices 'may pass 1996 levels'

    THE booming property market will drive prices for private housing above the 1996 peak by the middle of next year, according to an HSBC economist.
    Senior Asian economist, Robert Prior-Wandesforde, said on Friday, 'The real estate market has probably further to run. We may be in some of the earliest stages of a bubble, but there is more for prices to go.'

    'The private residential market is nowhere near that of mid-1996, so there is still room (for prices) to appreciate further even if we're in the early stages of a bubble.'

    Mr Prior-Wandesforde believes that property prices will go higher partly because the ratio of home prices to income is only half that of 1996.

    Wage growth is also running at multi-year highs and interest rates are low.

    He also cited the speculative activity that is boosting prices.

    And while prices in strict number terms may pass 1996 levels soon, once factors including wage levels are accounted for, the real catch-up will be some way off.

    Read the full report in Saturday's edition of The Straits Times.

  2. #2
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Re: Private housing prices 'may pass 1996 levels'

    July 7, 2007

    Prices for private housing 'may pass 1996 levels'


    THE booming property market will drive prices for private housing above the 1996 peak by the middle of next year, according to an HSBC economist.

    The bank's senior Asian economist, Mr Robert Prior-Wandesforde, said yesterday: 'The real estate market has probably further to run. We may be in some of the earliest stages of a bubble, but there is more for prices to go.

    'The private residential market is nowhere near that of mid-1996, so there is still room (for prices) to appreciate further even if we're in the early stages of a bubble.'

    Industry data that takes into account the prices of private residential properties suggests that levels in real terms are still about 25 per cent below 1996 levels.

    Mr Prior-Wandesforde believes that property prices will go higher partly because the ratio of home prices to income is only half that of 1996, wage growth is running at multi-year highs and interest rates are low.

    He also cited the speculative activity that is boosting prices.

    And while prices in strict number terms may pass 1996 levels soon, once factors including wage levels are accounted for, the real catch-up will be some way off.

    'If I'm right, it will take 12 years to get back to the 1996 level. If you take into account wage and income levels, prices would still be considerably cheaper than during that period,' said Mr Prior-Wandesforde, referring to private housing.

    He also believes that growth in the construction sector will clearly 'outperform' gross domestic product growth in the next three to five years.

    'The retrenchment in the construction sector has come to an end,' he said.

    GABRIEL CHEN

Similar Threads

  1. Singapore private housing prices down 3% in 2016
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 05-01-17, 16:14
  2. Private condo resales drop to 'crisis' levels
    By princess_morbucks in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 08-10-14, 15:08
  3. Private, public housing prices up 2.2%, 1.6%
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 30-04-11, 18:19
  4. When will private housing prices correct?
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 21-09-10, 00:43
  5. Home prices surpass 1996 levels
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 102
    -: 12-04-08, 00:44

Posting Permissions

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