Results 1 to 11 of 11

Thread: Developers likely to hold back on new project launches, say analysts

  1. #1
    Join Date
    Oct 2013
    Posts
    76

    Default Developers likely to hold back on new project launches, say analysts

    http://www.channelnewsasia.com/news/...ld/861798.html



    SINGAPORE: With home prices in the city centre softening, analysts say many developers are likely to hold back on launching new projects for the rest of the year.

    Real estate consultancy CBRE estimates that there are some 2,000 units of private homes yet to be launched for sale in the core central region -- the highest compared to the city fringe and the suburban areas.

    Upcoming project DUO Residences in Bugis will offer the largest number of homes in the city at 660 units.

    Channel NewsAsia understands that some prospective buyers, including high net worth individuals, have been invited to a "soft launch" on November 2.

    And the project will be officially launched for sale in mid-November.

    According to marketing materials, indicative prices for units at DUO range between S$1,800 and S$2,000 per square foot (psf) on average.

    Apart from DUO, analysts are not expecting many new launches in the city in the next couple of months.

    Other projects in the pipeline include Clermont Residence at Tanjong Pagar Centre and South Beach Residences.

    Unlike other condominiums where launches are made even before the foundation has been built, South Beach Residences is fast coming up.

    But its developers are not rushing to launch the 190-unit integrated development, saying they are waiting for the right market conditions.

    While prices of city homes have weakened in recent months, analysts do not expect developers to slash prices.

    New units in the core central region are still projected to cost between S$2,000 and S$3,000 psf.

    Meanwhile, the robust demand for mass market homes have pushed up their prices.

    In the third quarter, Savills Singapore says the average price of a home in the city is S$1,962 psf, compared to S$1,308 psf in the suburbs.

    Eric Tan, chief executive officer of GSK Global, said: "The gap will continue to close for another six to nine months before the suburb homes -- we will start to see the suburb home prices fall. The prices of suburb condo is getting higher and higher, and to me I'm very confident that those who bought suburban homes, they are not going to make money."

    Desmond Sim, associate director at CBRE, said: “If you look at it on a psf basis, the premiums have definitely narrowed but the biggest differentiator is the quantum. So city homes, a lot of them are of a good sized house. So in terms of their quantum, they are a bigger barrier for people to come into.”

    Analysts say the cooling measures and loans curbs introduced this year will continue to weigh on demand for expensive homes.
    A bag full of tricks !

  2. #2
    Join Date
    Jun 2011
    Posts
    238

    Default

    Developers should just stop buying GLS land & stop all launching!
    Wait till ABSD removed!


    Quote Originally Posted by chloechen View Post
    http://www.channelnewsasia.com/news/...ld/861798.html



    SINGAPORE: With home prices in the city centre softening, analysts say many developers are likely to hold back on launching new projects for the rest of the year.

    Real estate consultancy CBRE estimates that there are some 2,000 units of private homes yet to be launched for sale in the core central region -- the highest compared to the city fringe and the suburban areas.

    Upcoming project DUO Residences in Bugis will offer the largest number of homes in the city at 660 units.

    Channel NewsAsia understands that some prospective buyers, including high net worth individuals, have been invited to a "soft launch" on November 2.

    And the project will be officially launched for sale in mid-November.

    According to marketing materials, indicative prices for units at DUO range between S$1,800 and S$2,000 per square foot (psf) on average.

    Apart from DUO, analysts are not expecting many new launches in the city in the next couple of months.

    Other projects in the pipeline include Clermont Residence at Tanjong Pagar Centre and South Beach Residences.

    Unlike other condominiums where launches are made even before the foundation has been built, South Beach Residences is fast coming up.

    But its developers are not rushing to launch the 190-unit integrated development, saying they are waiting for the right market conditions.

    While prices of city homes have weakened in recent months, analysts do not expect developers to slash prices.

    New units in the core central region are still projected to cost between S$2,000 and S$3,000 psf.

    Meanwhile, the robust demand for mass market homes have pushed up their prices.

    In the third quarter, Savills Singapore says the average price of a home in the city is S$1,962 psf, compared to S$1,308 psf in the suburbs.

    Eric Tan, chief executive officer of GSK Global, said: "The gap will continue to close for another six to nine months before the suburb homes -- we will start to see the suburb home prices fall. The prices of suburb condo is getting higher and higher, and to me I'm very confident that those who bought suburban homes, they are not going to make money."

    Desmond Sim, associate director at CBRE, said: “If you look at it on a psf basis, the premiums have definitely narrowed but the biggest differentiator is the quantum. So city homes, a lot of them are of a good sized house. So in terms of their quantum, they are a bigger barrier for people to come into.”

    Analysts say the cooling measures and loans curbs introduced this year will continue to weigh on demand for expensive homes.

  3. #3
    Join Date
    Jun 2010
    Posts
    1,140

    Default

    Developers calibrating the mkt in the face of all the CMs.....

    Nothing to shop in the primary new launch mkt then everyone will look at resale......

  4. #4
    Join Date
    Jan 2013
    Posts
    517

    Default

    Quote Originally Posted by felicia_sg View Post
    Developers should just stop buying GLS land & stop all launching!
    Wait till ABSD removed!

    If a developer doesn't bid, another developer will get the land at a cheaper price and be able to sell the project more cheaply.

    Sky Habit sold for $1700 psf last year. This month, Sky Vue, which is closer to Bishan MRT was sold for $1400 psf, nearly 20% cheaper than Sky Habitat.

    If the govt launches another GLS in Bishan, the next Bishan MRT project will be even cheaper, maybe $1200-1300 psf.
    Last edited by sgbuyer; 26-10-13 at 09:59.
    狮子王 (formerly blackjack21trader): READ MY LIPS: NO MORE CRASH FOR 60 YEARS.

  5. #5
    Join Date
    Jul 2013
    Posts
    543

    Default

    Quote Originally Posted by felicia_sg View Post
    Developers should just stop buying GLS land & stop all launching!
    Wait till ABSD removed!
    I feel that things happening now are as bad as said, as long as the greed of game developers played did not go out of control.
    Last edited by walkthetiger; 26-10-13 at 10:23.

  6. #6
    Join Date
    Oct 2013
    Posts
    695

    Default

    Think buyers should exercise prudence as well. Developers are waiting for the sheep to fatten before the slaughter.

  7. #7
    Join Date
    Mar 2009
    Posts
    6,134

    Default

    Quote Originally Posted by walkthetiger View Post
    I feel that things happening now are as bad as said, as long as the greed of game developers played did not go out of control.
    Well buyers can dont buy. No 1 is buying at gun point. developers can bid all they want. buys can walk away if the price is not right. the fact people buy means there are people who see value in it. If not all will go buy BTO liao.
    “Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
    ― Martin Luther King, Jr.

    OUT WITH THE SHIT TRASH

    https://www.facebook.com/shutdowntrs

  8. #8
    Join Date
    Sep 2009
    Posts
    111

    Default

    Quote Originally Posted by minority View Post
    Well buyers can dont buy. No 1 is buying at gun point. developers can bid all they want. buys can walk away if the price is not right. the fact people buy means there are people who see value in it. If not all will go buy BTO liao.
    People are borowing big money to lined the pockets of developers, who reward all buyers by supporting and holding prices UP!

  9. #9
    Join Date
    Mar 2009
    Posts
    6,134

    Default

    Quote Originally Posted by gemstone View Post
    People are borowing big money to lined the pockets of developers, who reward all buyers by supporting and holding prices UP!
    then dont buy loh.. there are free will. So these are folks that will suffer. so whos to blame.
    “Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
    ― Martin Luther King, Jr.

    OUT WITH THE SHIT TRASH

    https://www.facebook.com/shutdowntrs

  10. #10
    Join Date
    Mar 2013
    Posts
    1,835

    Default

    Its a battle between developers n home buyers, see who give in 1st.
    those which lands has aldy been bidded, limited downside potential.

  11. #11
    Join Date
    Jan 2013
    Posts
    500

    Default

    Quote Originally Posted by minority View Post
    Well buyers can dont buy. No 1 is buying at gun point. developers can bid all they want. buys can walk away if the price is not right. the fact people buy means there are people who see value in it. If not all will go buy BTO liao.
    Yes Yes. People also see the value in property in 1987 and went crazy to queue a few days before the property launches to get a unit. I believe people also see the value in property in 1997. I believe people in USA also see the value in property before 2008..

    The real problem is the common people don't see the real value but see the value that people want them to see. History have been repeating itself again and again. History books are there to warn people of the risk in front of them. But the problem is people never learn from history.

Similar Threads

  1. New private home sales hold steady in January in spite of cooling measures: analysts
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 11-02-22, 10:22
  2. Is en bloc fever back? Analysts are split
    By reporter2 in forum En Bloc Discussion and News
    Replies: 0
    -: 09-06-17, 17:56
  3. Capitaland expects latest cooling measures to hold back buyers for 6 months
    By land118 in forum Singapore Private Condominium Property Discussion and News
    Replies: 16
    -: 15-02-12, 14:20
  4. Developers hold back on luxury projects in Q4
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 21-12-10, 16:09
  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
  •