One of the Bank's CEO and developer got together to analise the current property market and do some calculation and short term forecast. This is what they have got :
- 40,000 units coming into the market in year 2009
- for the whole month of December only 300+ units sold for entire Singapore
- Banks are not landing , only ppl with over 30% cash deposits and over 200k annual wages now have the chance to get a mortgage providing the property below valuation.
- Rental plummeting and expats downgrading or running away from Singapore
- towards the mid 09' default's rate to reach almost 50% for those who bought on DPS
- prime areas are 30 to 70% down for the last 6 month
their summarised and got extreme competition among those 40,000 units owners and very limited numbers of tenants will lead to massive freefall of property prices after March-April bottoming in June-August
Government has to intervent the market or it will be the whole nation going into bankrupcy.
Average prices to be expected in May - June by Condos according to their calculations:
Ardmore 2 - $1300 psf
St. Regis - $1,200 psf
Cosmopolitan - $900 psf
Rivergate - $800 psf
MBR - $1,000 psf
Oceanfront and The Coasts $700 psf ( this one one of the worth hit , with no tenants willing to stay that far away and crazy high maintenance of excess of $1000 per month, hours of morning traffic jams and no shops and facilities apart from overpriced One 15 no fools want to buy these units and their on DPS , most owners have less then a year to settle and ma ny of them have 0 liquidity in the bank where banks valuation on those going down everyday so there will be very limited financing)
It could be a good time to short sell to buy again at much lower price towards the end of the year in around August to recoup some losses.
This is about time for the Government to entervene but there is no sign of them doing that on the horizon..