Demand for homes in core central region may pick up

[princess_morbucks]

http://www.channelnewsasia.com/news/...medium=twitter

SINGAPORE: Some market watchers said demand for homes in the core central region could pick up as early as the second half of this year, as prices continue to moderate.
Property consultancy Savills added that some unsold units in the city were even transacted at below valuation.
According to recent marketing materials, Hijauan on Cavenagh is offering units at prices from as low as S$1,701 per square foot.
Located near Orchard Road, a 915 square foot two-bedroom unit is available for just under S$1.9 million.
Property agents said the 41-unit Hijauan project is about 75 percent sold.
It is not the only project selling below valuation.
Alan Cheong, research head at Savills Singapore, said: "We've heard of anecdotal evidence where pricing has been below valuations. In the Newton area for example, prices six months ago was S$1,800 per square foot.

"Today, you can get it for S$1,700 to S$1,600 per square foot for a 1,700 to 1,800 square-foot apartment.

"For core central region, it is probably going to be quite the norm -- (as) we expect more aggressive marketing strategies by developers."
In particular, analysts said the larger units will be a tough sell as cooling measures and loan curbs have affected the buyer's ability to afford them.
Savills said the pricing sweet spot for city homes now is probably between S$1.5 million and S$1.7 million.
Home prices in the core central region fell 1.9 percent in 2013 and some analysts expect to see another 5 percent drop this year. They said that could potentially trigger a return of buying interest for core central region homes.
Chris Koh, director of Chris International, said: "By middle of this year, we would have looked at four quarters of correction. Once the prices adjust by 5 to 10 percent, it would look significant.

"And the moment it looks significant, my gut feel is the buyers and investors who have been waiting on the sidelines will then pour back into the market again."
Market watchers said demand for city homes could also grow if prices of units in the city fringe, or rest of central region, continue to recover.
Home prices in the city fringe rose 0.4 percent in the fourth quarter of last year, compared to the 2.1 percent decline for city homes.


- CNA/xq

[Singleton]

http://www.channelnewsasia.com/news/...medium=twitter

SINGAPORE: Some market watchers said demand for homes in the core central region could pick up as early as the second half of this year, as prices continue to moderate.
Property consultancy Savills added that some unsold units in the city were even transacted at below valuation.
According to recent marketing materials, Hijauan on Cavenagh is offering units at prices from as low as S$1,701 per square foot.
Located near Orchard Road, a 915 square foot two-bedroom unit is available for just under S$1.9 million.
Property agents said the 41-unit Hijauan project is about 75 percent sold.
It is not the only project selling below valuation.
Alan Cheong, research head at Savills Singapore, said: "We've heard of anecdotal evidence where pricing has been below valuations. In the Newton area for example, prices six months ago was S$1,800 per square foot.

"Today, you can get it for S$1,700 to S$1,600 per square foot for a 1,700 to 1,800 square-foot apartment.

"For core central region, it is probably going to be quite the norm -- (as) we expect more aggressive marketing strategies by developers."
In particular, analysts said the larger units will be a tough sell as cooling measures and loan curbs have affected the buyer's ability to afford them.
Savills said the pricing sweet spot for city homes now is probably between S$1.5 million and S$1.7 million.
Home prices in the core central region fell 1.9 percent in 2013 and some analysts expect to see another 5 percent drop this year. They said that could potentially trigger a return of buying interest for core central region homes.
Chris Koh, director of Chris International, said: "By middle of this year, we would have looked at four quarters of correction. Once the prices adjust by 5 to 10 percent, it would look significant.

"And the moment it looks significant, my gut feel is the buyers and investors who have been waiting on the sidelines will then pour back into the market again."

Market watchers said demand for city homes could also grow if prices of units in the city fringe, or rest of central region, continue to recover.
Home prices in the city fringe rose 0.4 percent in the fourth quarter of last year, compared to the 2.1 percent decline for city homes.


- CNA/xq

Maybe they could have listed the list of projects in Orchard and Newton that are currently selling below valuation instead of saying that is not the only project selling below val. Most of the studios and 2roomers are still asking near record prices in good locations in CCR.

[newbie11]

As u said, good locations. Why need to sell cheap?

[taggy]

i remember R33 like to mention "wrong side of ccr"

actually wrong side of CCR is referring to where?

[indomie]

i remember R33 like to mention "wrong side of ccr"

actually wrong side of CCR is referring to where?

Where the rental yield is lackluster. People who buy in these part of CCR will suffer. I think the analyst is getting it wrong again.

[phantom_opera]

CM tapering coming soon

[DC33_2008]

Location may be good but those units facing the CTE are a nightmare with noise and air pollution. Maybe they are referring to the selling price of such units.

Maybe they could have listed the list of projects in Orchard and Newton that are currently selling below valuation instead of saying that is not the only project selling below val. Most of the studios and 2roomers are still asking near record prices in good locations in CCR.

[Singleton]

CM tapering coming soon

don't think so soon, if not prices will shoot up again.

If 5-10% correction, that will be considered healthy, status quo.

Its like COE.

limited roads, limited land, more people, most want a car and private condo/house.

[EBD]

i remember R33 like to mention "wrong side of ccr"

actually wrong side of CCR is referring to where?

It is his rather pathetic attempt to wind up poster CCR. It seems to fail as I've not seen CCR rise once to his bait.

[Ringo33]

i remember R33 like to mention "wrong side of ccr"

actually wrong side of CCR is referring to where?

You are smart to remember what I said. If you want to buy CCR condo, dont just buy CCR, because not all CCR area are primed. Must buy Central Area of CCR because this segment of CCR is where the big fish hang out and where the sky is the limit.

[Ringo33]

It is his rather pathetic attempt to wind up poster CCR. It seems to fail as I've not seen CCR rise once to his bait.

Another one of your all fart no shit posting perhaps?

[teddybear]

taggy,

Any place in CCR is better than OCR in the long-run! You just mark my words for it since I have been investing in property for donkey years and seen too many cycles!

Would you rather believe in somebody who cannot even afford a family-size unit in OCR and need to buy MM in OCR?

You are smart to remember what I said. If you want to buy CCR condo, dont just buy CCR, because not all CCR area are primed. Must buy Central Area of CCR because this segment of CCR is where the big fish hang out and where the sky is the limit.

i remember R33 like to mention "wrong side of ccr"

actually wrong side of CCR is referring to where?

[Ringo33]

Always remember, CCR was created based on geographical distant from central CBD area, not because they are prime. If you look at URA masterplan, URA specifically create a separate masterplan for Central Area instead of group it as part of CCR masterplan.

Have you guys not noticed that residential site within central area are not restricted by average unit size and that central area has got one of the highest plot ratio and building height in the entire Singapore?

Teddybear, how long of a run are you talking here?