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Thread: Resale prices fall as buyers favour new homes

  1. #1
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    Default Resale prices fall as buyers favour new homes

    http://www.straitstimes.com/archive/...homes-20131129

    Resale prices fall as buyers favour new homes

    Resale market hit by price cuts at recent launches, rental concern in suburbs

    Published on Nov 29, 2013

    By Melissa Tan


    PRICES of private resale homes weakened last month as buyers opted for new homes after developers began to cut prices at recent launches.

    The strongest slide in resale prices was in the central region.

    Overall resale prices for non-landed private homes fell 1.2 per cent in October from September, according to Singapore Residential Price Index flash figures released yesterday.

    This followed a revised 0.9 per cent slide from August to September.

    The overall decline reflects buyers' higher sensitivity to prices nowadays, said Knight Frank research head Alice Tan.

    In the central region, resale prices for non-landed private homes dropped 1.4 per cent month- on-month, excluding shoebox units. That came after a revised 1.5 per cent fall from August to September.

    Consultants said buyers likely held off on resale purchases last month because new launches seemed more attractively priced, particularly on the city fringe.

    CapitaLand, for instance, launched its Sky Vue project in Bishan in September at a significantly cheaper price than the adjacent Sky Habitat.

    "Buyers are thus anticipating further attractive prices for projects that will be launched in the months ahead," said R'ST Research director Ong Kah Seng.

    Buyers expect resale properties to be about 20 per cent cheaper than new launches in the same locale, he added.

    In the suburbs, prices slid 1 per cent last month from the preceding month, steeper than the revised 0.4 per cent dip in September month-on-month. The figures exclude shoebox units.

    Mr Ong said the weak rental market was deterring investors from buying resale private homes in the suburbs since there was more uncertainty over whether those can be rented out.

    The shoebox segment, however, fared slightly better. Resale prices dipped 0.2 per cent in October from the preceding month, after tumbling 2.8 per cent in September.

    Consultants said the resale market could remain weak in the coming months because developers are likely to continue reducing prices at new launches to move units.

    OrangeTee research head Christine Li added that the central region was likely to do worse than the suburbs, owing to muted investment demand.

    More newly completed homes are coming onto the market and these will compete with older properties for buyers, she noted.

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  2. #2
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    Default Pace of home price fall picks up in October

    http://www.businesstimes.com.sg/arch...tober-20131129

    Published November 29, 2013

    Pace of home price fall picks up in October


    SINGAPORE'S home prices fell at a faster pace in October, dropping 1.2 per cent from the previous month as evidence builds that the government's efforts to cool the property market are working.

    The Singapore Residential Price Index fell to 159.1 points last month after declining a revised 0.9 per cent in September, according to the National University of Singapore's Institute of Real Estate Studies, which compiles it. The measure tracking prices in the central region decreased 1.4 per cent in October.

    Record home prices amid low interest rates raised concerns of a housing bubble and prompted the city-state to introduce new taxes and higher minimum downpayments since 2009 to curb speculation in Asia's second-most expensive housing market. Home sales have been falling in the past four months after the government imposed new rules in June governing how financial institutions grant property loans to individuals.

    "The latest statistics are a reflection of the current measures starting to bite the residential market," said Alice Tan, head of consultancy and research at Knight Frank LLP in Singapore. "Price quantum is still the key consideration for many prospective homebuyers."

    Singapore and Hong Kong, ranked by Savills as the world's most expensive housing market, have introduced measures to cool property prices. Singapore has linked borrowers' maximum debt levels to their incomes and raised stamp duties and capital gains taxes, while Hong Kong has increased minimum downpayments six times in less than three years and in February doubled stamp-duty taxes for all properties over HK$2 million (S$323,000).

    Singapore's home sales fell 19 per cent in October to 1,009 units from a month earlier, according to data from the Urban Redevelopment Authority (URA) released on Nov 15. From the previous year, sales dropped 48 per cent, the data showed.

    Home prices in the island-state rose at the slowest pace in six quarters in the three months ended Sept 30, according to figures released by the authority on Oct 25.

    Singapore's private residential property price index rose 0.4 per cent to a record 216.2 points in the three months ended Sept 30, after climbing one per cent in the second quarter, URA data last month showed. - Bloomberg

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    That is a steep drop. That means 2 months ago, a 3M property would have lost 70 to 80k in value by now.

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    Quote Originally Posted by thomastansb View Post
    That is a steep drop. That means 2 months ago, a 3M property would have lost 70 to 80k in value by now.

    80k out of 3M is considered steep drop?

    That maybe the case in 2008. But today, in the age of bitcoins and blumont, it is a piece of cake.

    Liquidity works both ways, it can push prices up, and can also cause a huge drop.

    All assets are casino in today's markets.
    狮子王 (formerly blackjack21trader): READ MY LIPS: NO MORE CRASH FOR 60 YEARS.

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    Quote Originally Posted by sgbuyer View Post
    80k out of 3M is considered steep drop?

    That maybe the case in 2008. But today, in the age of bitcoins and blumont, it is a piece of cake.

    Liquidity works both ways, it can push prices up, and can also cause a huge drop.

    All assets are casino in today's markets.
    avg decline is 1.3 % per month, x 12 months means if the pace continue, 15% drop in one year... During lehman crisis,prices only dropped 25% so yes its a Lot!

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    Quote Originally Posted by CCR View Post
    avg decline is 1.3 % per month, x 12 months means if the pace continue, 15% drop in one year... During lehman crisis,prices only dropped 25% so yes its a Lot!

    GS asked for repayment of loan in 90 minutes. We'll never know if a foreign bank start to ask repayment of mortgage loan by cash within 24 hrs otherwise bank auction to the highest bidder the following morning at 8am - buyer has to pay by cash by 5pm the same day.

    In today's Singapore where there's no regulation by MAS, anything is possible.
    狮子王 (formerly blackjack21trader): READ MY LIPS: NO MORE CRASH FOR 60 YEARS.

  7. #7
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    banks are evil.

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