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Thread: Good times over for luxury home market

  1. #1
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    Default Good times over for luxury home market

    http://www.straitstimes.com/premium/...arket-20130822

    Good times over for luxury home market

    Published on Aug 22, 2013

    By Melissa Tan


    PROPERTY investor Sameer Aswani was buying and selling high- end homes about as fast as he could transact a few years ago, but that gravy train has well and truly hit the skids.

    A $5.5 million, 1,636 sq ft unit that he owns in upscale Marina Bay Residences would have been snapped up in a flash in the boom days, but not now.

    The lack of a serious buyer has forced the 37-year-old to put tenants in and try to find a silver lining amid yields of just 3 per cent.

    "In the good times, I was flipping units left and right. At one point in 2010, I did five to six in about four to five weeks," he said.

    Those good times ended when the cooling measures began.

    "Government measures have driven out speculators so there are more serious investors in the market who have holding power," he said. "It's tougher to buy now so people just sit on their units."

    The moribund market that Mr Aswani and other high-end home owners have been facing counters the conventional wisdom that Singapore's property market has gone from strength to strength.

    A Straits Times check of homes priced $5 million and above in the first seven months of this year showed that sale volumes are down to levels last seen in 2008.

    The median price of $2,489 per sq ft (psf) for this segment is also the lowest since 2009. In contrast, overall prices for all private homes are at a record high, after rising 1 per cent from the first to second quarter this year.

    Only 183 units worth $5 million and above were sold from January to July this year - close to the 187 moved in the first seven months of 2008, according to Urban Redevelopment Authority data.

    It marks a nosedive from the corresponding period in 2010, which saw 444 transactions, and in 2011, which saw 310.

    Those numbers all pale in comparison with the 814 high-end homes sold in January through July in the boom year of 2007 at a median $2,470.50 psf.

    R'ST Research director Ong Kah Seng said the luxury market never quite recovered from the hammering it took in 2009 from the global financial crisis.

    A mere 106 homes worth $5million and above were sold from January to July 2009, while the median sale price fell to $2,126.50 psf during those seven months, down from $2,705 psf in the corresponding period in 2008.

    The introduction of the additional buyers' stamp duty in December 2011 was also a hammer blow on the high-end segment, Mr Ong said, adding that demand for posh pads has also been affected by the weak global economy.

    "Expatriates seconded to Singapore are increasingly either mid- level or senior level with limited housing allowances," he noted.

    A Savills Singapore report yesterday said the average monthly rents of high-end units it tracks fell for an eighth straight quarter in April through June, dipping 0.2 per cent to $4.86 psf per month.

    "Rents for luxury homes may remain stagnant until year's end as most of the new supply is unsold units held by developers who cannot lease them," said Savills.

    Another factor is competition from other international cities.

    Out of nine luxury markets across Asia that Jones Lang LaSalle tracks, Singapore was the only one that posted a price drop from the preceding quarter, and where prices in the second quarter fell year on year.

    [email protected]

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    so poor thing........

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    Told u guys so one full month before, but look how some say I siaolang.

    TRIPLE WHAMMY -MORE TO COME !

    1) RENTAL WILL DROP

    2) WILL NOT DISCLOSE

    3) WILL NOT DISCLOSE

    BE HUMBLE ! THEN I WILL TELL AND SHARE AN ESCAPE ROUTE WITH YOU, OTHERWISE CONTINUE TO BE A HAOLIAN IGNORANT IDIOT!

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    Quote Originally Posted by blackjack21trader
    Told u guys so one full month before, but look how some say I siaolang.

    TRIPLE WHAMMY -MORE TO COME !

    1) RENTAL WILL DROP

    2) WILL NOT DISCLOSE

    3) WILL NOT DISCLOSE

    BE HUMBLE ! THEN I WILL TELL AND SHARE AN ESCAPE ROUTE WITH YOU, OTHERWISE CONTINUE TO BE A HAOLIAN IGNORANT IDIOT!
    FROM MY BRILLIANT EXPERIENCE, PROPERTY MARKETS ALWAYS MOVE IN A CERTAIN WAY....

    BUT I SHALL NOT SHARE !

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    Default Luxury homes market still bogged down

    http://www.businesstimes.com.sg/prem...-down-20130822

    Published August 22, 2013

    Luxury homes market still bogged down

    Cooling measures continue to affect investor sentiment in second quarter

    By Mindy Tan [email protected]


    THE luxury homes market continues to be under pressure on both the rental and price fronts, with capital values in Singapore likely to correct further in the second half of this year.

    Indeed, Singapore was the only market out of nine featured in the Asia-Pacific to report a decline in capital values. According to the latest Jones Lang LaSalle (JLL) Residential Index, values of luxury homes dropped 0.6 per cent quarter-on-quarter for the third consecutive quarter, and 2.1 per cent year-on-year, as the rounds of cooling measures continued to affect investor sentiment.

    While prices may be near a trough - price dips have been slowing in the last few quarters - the introduction of the total debt servicing ratio (TDSR) in June has brought with it a degree of downside risk, said Chua Yang Liang, head of research for Singapore and South-east Asia at JLL.

    To that end, Dr Chua said he expects capital values for luxury homes to correct a further 3-5 per cent in H2.

    Overall, Q2 saw limited price growth in most markets, with average capital values rising 2 per cent quarter-on-quarter in Q2, similar to the 2.2 per cent increase seen in Q1. On a yearly basis, capital values were up 7.3 per cent in aggregate.

    Despite restrictive tightening measures affecting sales activity, Hong Kong registered a marginal quarterly increase of 0.3 per cent on Q1. Top-performer Jakarta was up 9 per cent, while average prices in Beijing rose 6.7 per cent due to several high-end projects coming to market during the quarter.

    Separately, the average monthly rent of high-end condominiums tracked by Savills continued to soften for the eighth consecutive quarter, dipping 0.2 per cent quarter-on-quarter to $4.86 per square foot (psf) per month.

    The subdued leasing performance in luxury homes could be due to more intense competition resulting from oversupply in the high-end market, combined with big-budget tenants placing more constraints on accommodation expenses, said Alan Cheong, head of research at Savills Singapore.

    That being said, rents may still see some support until year-end given that an increasing number of overseas nationals are arriving on short-term assignments, and thus paying slightly higher rents than those here on a longer-term basis.

    In addition, much of the completed stock in the core central region (CCR) is in the form of unsold units which are still in the hands of developers.

    In the CCR, 221 units at Marina Bay Suites and 210 units at Goodwood Residence were granted Temporary Occupation Permits by the end of Q2. But, given that developers are unable to lease them out unless they pay hefty additional buyer's stamp duties (ABSD) by performing an asset sale to an investment holding company, or clear them in the open market through aggressive discounting, this should give a short-term respite to the rental market for units in the CCR, said the consultancy.

    Mass-market developments, on the other hand, could see rents hold up as demand drifts from the high-end and mid-tier markets.

    Based on URA's quarterly data, the rental index of private residential units inched up marginally by 0.3 per cent, registering a drop from the 0.8 per cent growth recorded in the previous quarter. Island-wide median monthly rents were nearly flat with the median rent of non-landed private homes, excluding executive condominiums, inching up from $3.81 psf per month to $3.82 psf per month.

    On the other hand, the monthly median rent of landed houses slipped slightly from $2.65 psf to $2.64 psf.

    Leasing demand for the second quarter reached 13,522, up 15.4 per cent quarter-on-quarter, and 7 per cent year-on-year. For the first six months, leasing volume came up to 25,243, a 5.4 per cent increase compared to the same period last year.

    "The greater leasing demand hints at more overseas nationals arriving in Singapore, but rents are not keeping up due to an imbalance in housing types versus needs," said Savills' Mr Cheong.

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    Quote Originally Posted by blackjack21trader
    FROM MY BRILLIANT EXPERIENCE, PROPERTY MARKETS ALWAYS MOVE IN A CERTAIN WAY....

    BUT I SHALL NOT SHARE !

    Share lar...oh wise and handsome one

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    Quote Originally Posted by relax88
    Share lar...oh wise and handsome one
    A mistake has been made and that is called : GREED.

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    Quote Originally Posted by blackjack21trader
    A mistake has been made and that is called : GREED.
    With so many upcoming supply, a mistake for developers to build too fast in the CCR.

    In an attempt to profit, they have lowered the quantum but pushed up the psf too fast. PSF has peaked in CCR and you are not seeing that movement anymore.

    PSF does not matter to developers because when combined all the square feet within a development, they still earn a profit on congregation of the mass.

    However PSF matters to the next buyer in the resale markets for the owners and HIGH PSF does not move their units.

    GOOD LUCK.

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    Quote Originally Posted by blackjack21trader
    With so many upcoming supply, a mistake for developers to build too fast in the CCR.

    In an attempt to profit, they have lowered the quantum but pushed up the psf too fast. PSF has peaked in CCR and you are not seeing that movement anymore.

    PSF does not matter to developers because when combined all the square feet within a development, they still earn a profit on congregation of the mass.

    However PSF matters to the next buyer in the resale markets for the owners and HIGH PSF does not move their units.

    GOOD LUCK.

    Developers should have concentrated in the OCR first, but they did the reverse because of GREED.

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    Quote Originally Posted by blackjack21trader
    Developers should have concentrated in the OCR first, but they did the reverse because of GREED.
    This resulted in so much construction in the CCR, which is really bad. They should have followed CDL to build in OCR, RCR, Marina Bay and finally the CCR.

    But no, all were greedy except CDL. The only thoughtful developer and considerate one in the whole of Singapore.

    GOOD LUCK.

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    Quote Originally Posted by blackjack21trader
    This resulted in so much construction in the CCR, which is really bad. They should have followed CDL to build in OCR, RCR, Marina Bay and finally the CCR.

    But no, all were greedy except CDL. The only thoughtful developer and considerate one in the whole of Singapore.

    GOOD LUCK.
    CDL is the only one with thoughts for the real future of Singapore. Despite low interest rates, they still pay good interest rates for the old people with saving accounts or fixed deposit in their Hong Leong Finance branch. I know they give a good rate for my 100 year old grandmother.

    Also, if you compare the layout of their developments with the other greedy ones, most are very well thought out and considerate.

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    You want to see a good developer, just look at the club house and facillities CDL build for their buyers. Compare the CDL condo facillities with the others.

    LOOK AT THE CRAPS THOSE OTHER GREEDY DEVELOPERS BUILT ! WAHLANEH HOW TO RENT OUT LIKE THAT HUH ?????

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    Quote Originally Posted by blackjack21trader
    You want to see a good developer, just look at the club house ot facillities CDL build for their buyers. Compare the CDL clubhouse with the others.

    LOOK AT THE CRAPS THOSE OTHER GREEDY DEVELOPERS BUILT ! WAHLANEH HOW TO RENT OUT LIKE THAT HUH ?????
    At the bare minimum, CDL knows that a human being is 1.6m tall average and need a good size swimming pool.

    But look at those greedy developers who built drains for the human beings to swim ARH !

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    Personally I pity the OCR buyers more. Really good luck to them over the next few years...

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    Quote Originally Posted by mosaic
    Personally I pity the OCR buyers more. Really good luck to them over the next few years...
    not if u bought those with world class facillities.

    my recommended developers:

    1) CDL
    2) Ho Bee
    3) Wing Tai

    stick to these and u will have less worry.

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    I can personally vouch for Ho Bee. But CDL, no way. Lousy like shit. Can bang wall and die.




    Quote Originally Posted by blackjack21trader
    not if u bought those with world class facillities.

    my recommended developers:

    1) CDL
    2) Ho Bee
    3) Wing Tai

    stick to these and u will have less worry.

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    Quote Originally Posted by blackjack21trader
    not if u bought those with world class facillities.

    my recommended developers:

    1) CDL
    2) Ho Bee
    3) Wing Tai

    stick to these and u will have less worry.
    Sifu Agreed

    supporter of CDL and Wing Tai property

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    Look out for D2. When Altez and Skysuites TOP, the fun will begin. Altez was sold at super high prices. Even interest is at 1%, the owners will have difficulties breaking even. Imagine interest rate rise to 2%....





    Quote Originally Posted by blackjack21trader
    With so many upcoming supply, a mistake for developers to build too fast in the CCR.

    In an attempt to profit, they have lowered the quantum but pushed up the psf too fast. PSF has peaked in CCR and you are not seeing that movement anymore.

    PSF does not matter to developers because when combined all the square feet within a development, they still earn a profit on congregation of the mass.

    However PSF matters to the next buyer in the resale markets for the owners and HIGH PSF does not move their units.

    GOOD LUCK.

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    All these now happening in OCR, building 400+ sqft studio eg in J Gateway!


    Quote Originally Posted by blackjack21trader
    At the bare minimum, CDL knows that a human being is 1.6m tall average and need a good size swimming pool.

    But look at those greedy developers who built drains for the human beings to swim ARH !

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    Quote Originally Posted by thomastansb
    Look out for D2. When Altez and Skysuites TOP, the fun will begin. Altez was sold at super high prices. Even interest is at 1%, the owners will have difficulties breaking even. Imagine interest rate rise to 2%....
    I agree, this is the same fear I have and the very same reason why I am calling for SSD and ABSD to be removed.

    if wait until interest rate increases, I really dun dare to imagine.

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    Quote Originally Posted by teddybear
    All these now happening in OCR, building 400+ sqft studio eg in J Gateway!
    Yes, good brother you understood what I said. That is why I said a mistake has been made. If you develop from OCR to CCR, the probability of this happening will be lesser. But now is from CCR and OCR is the last stop

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    Quote Originally Posted by Simi
    Sifu Agreed

    supporter of CDL and Wing Tai property
    Thanks for agreeing, good brother Simi

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    The interest rate in USA is not controlled by FED. The reason why interest rate is low in the USA is due to the QE actions taken by FED.

    This resulted in a weak USD but a stronger foreign currency exchange and hence capital outflow from USA into other parts of the World.

    However, when FED stops this action, expect the reverse of capital to happen. Early signs can be seen in India, Malaysia and Indonesia.

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    The reported tapering in the US monetary stimulus is unlikely to significantly impact property prices in Singapore, analysts have said.

    “It usually comes down because of distressed selling. But economic growth is stronger than expected. People are keeping their jobs...Even if it comes down, there won't be a crash,” noted Tata Goeyardi, Property Analyst at Religare Capital Markets.

    The US Federal Reserve’s monetary stimulus has created cheap liquidity and helped boost Asian real estate, but as it comes to an end, many markets in Asia will likely feel the pains as well, media reports said.

    In Singapore, the effects of such a move in the market is now underway and could last three to six months, said Tim Gibson, Head of Asian Property Equities at Henderson Global.

    “Anything that is yield-like has been sold off” as a knee-jerk reaction to the unwinding of the asset purchase programme, but “we are in a cyclical macro recovery…It should be positive for real estate in terms of top line rental growth”, he added.

    Meanwhile, David Neubronner, National Director for Residential Property at Jones Lang LaSalle Property in Singapore, said: “There's still strong demand for homes, especially in the suburbs and there's still liquidity in the market.”

    But several concerns may arise going forward. “In the short term, it (housing market) should hold up, but medium to long term, there will be pressure because of the new supply coming up,” said Neubronner.


    Propertyguru

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    .. it always amuses me seeing some ang mo "analyst" talking about Singapore properties...

    an ang mo is very less likely to understand asian pty markets. let alone being an authority in it.

    nobody plays with pty like asians do. these ang mos mostly will never get it.

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    Quote Originally Posted by blackjack21trader
    The interest rate in USA is not controlled by FED. The reason why interest rate is low in the USA is due to the QE actions taken by FED.

    This resulted in a weak USD but a stronger foreign currency exchange and hence capital outflow from USA into other parts of the World.

    However, when FED stops this action, expect the reverse of capital to happen. Early signs can be seen in India, Malaysia and Indonesia.
    y do u tink tat the early signs r not yet felt in sg?

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    Quote Originally Posted by blackjack21trader
    At the bare minimum, CDL knows that a human being is 1.6m tall average and need a good size swimming pool.

    But look at those greedy developers who built drains for the human beings to swim ARH !
    1.6m? Oh, come on. Singaporeans are short, but not that short, unless you count the children as well.

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    Quote Originally Posted by stalingrad
    1.6m? Oh, come on. Singaporeans are short, but not that short, unless you count the children as well.
    Children don't swim isit?

    BE HUMBLE !

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    Quote Originally Posted by mermaid
    y do u tink tat the early signs r not yet felt in sg?
    YOU ARE VERY ITCHY MOUTH ISIT? LEAVE THAT REASON TO ME LATER !

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    Quote Originally Posted by amk
    .. it always amuses me seeing some ang mo "analyst" talking about Singapore properties...

    an ang mo is very less likely to understand asian pty markets. let alone being an authority in it.

    nobody plays with pty like asians do. these ang mos mostly will never get it.
    YOU ARE WRONG LIAO ! IN SWISS, THERE ARE ONLY LANDLORDS AND TENANTS, NO IN-BETWEENS.

    Many angmos not interested in property is because they cannot afford it.

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