Discussion : Singapore Property

[Hary]

It will come down further. Too many projects are in the pipeline. For good locations, developers don't want to lose money. They spent a fortune to do en bloc. Their calculation is simple: Price = costs of en bloc + construction costs + earning. Unfortunately market doesnt accept 'cost plus' mechanism. It would be too expensive for buyers = low sales = less cash in = cash flow problem for small developers. Once they are hit with cash flow issue, no other choice but to sell the assets at lost for liquidity purpose.

Ideally as buyer, we could catch those desparate developers. But for projects that are still not yet started, beware that weak developers may go bankrupt. Strong developers may choose to hold on their pricing and expect market to recover once their projects are finished, let say in 2 years time from now. But this is also speculative and assume market will recover by then.

[ILuvDA]

With the recent economy downturn, how many of you are in the market to BUY / SELL your property???

Personally, I feel that the market is not at the lowest yet and can wait till the end of the year....

I've talked to over a dozen of agents... Many still in denial that the property prices would drop further.. definitely marketing talk imho as they hope to close the deal.. SOME really desprate and keep calling me to make an offer... Keep comparing our current economy with 2003 SARS period.. that it won't dip further....
BUT the situation now is not what happened in 2003 where its an Asia downturn.. this is a global downturn, more servere than 1996/7 Asia financial crisis. Hence we are definitely not at the lowest in my personal judgement..

Yes I am shopping around but am waiting for the rightful time to pull the trigger...

What are your views and thoughts???

There is a strong correlation between property prices and income level. It has been said that a rise in income will lead to a disproportionately higher rise in demand for property. The inverse in also true. Therefore, one can expect
prices to fall until income trends are corrected.

There is an investment rule of thumb to leave the last 10% to someone else.
So buy only when property prices are no longer falling but are rising.

[jazz_samz]

Singapore Property

With the recent economy downturn, how many of you are in the market to BUY / SELL your property???

Personally, I feel that the market is not at the lowest yet and can wait till the end of the year....

I've talked to over a dozen of agents... Many still in denial that the property prices would drop further.. definitely marketing talk imho as they hope to close the deal.. SOME really desprate and keep calling me to make an offer... Keep comparing our current economy with 2003 SARS period.. that it won't dip further....
BUT the situation now is not what happened in 2003 where its an Asia downturn.. this is a global downturn, more servere than 1996/7 Asia financial crisis. Hence we are definitely not at the lowest in my personal judgement..

Yes I am shopping around but am waiting for the rightful time to pull the trigger...

What are your views and thoughts???

[daveevan]

IMO: It will not be good for year 2009, unless garment do some drastic measures. I think the garment will let the market do its own adjustment. It may take many years to reach its last peak again.

[ahwoon]

I'm seeing it differently. The condo market may drop to the bottom within the next 2 quarters and rebounds.

I'm eyeing at the few projects near redhill MRT area.

Above just my POV.

[Vknighthawke]

Buying Opportunity! Waiting for FIRE SALE

[116520]

Of course lah, build so many, who will stay??

[seacoconut]

Saw this news on the wire... look like market will be bad for the next few quarters.

here's the full story:


By Chen Shiyin
Jan. 2 (Bloomberg) -- Singapore’s fourth-quarter private
home prices declined 5.7 percent, the steepest drop in a decade,
as the global financial crisis and an economic recession
deterred buyers.
The price index of private residential property fell to
163.4 points in the three months ended Dec. 31, from 173.30 in
the previous quarter, the Urban Redevelopment Authority said in
a statement on its Web site today. That’s the largest drop since
the three months ended Dec. 31, 1998, according to data tracked
by Bloomberg.
Home prices have retreated for two straight quarters,
ending a four-year rally. The island-state said today its
economy may shrink by as much as 2 percent this year, the first
contraction since 2001, amid the worsening global recession.
Prices for apartments in the so-called core central area
dropped 6.3 percent in the three months ended Dec. 31 and
slipped 5.5 percent elsewhere in central Singapore, according to
the Urban Redevelopment Authority. They fell 4.7 percent across
other parts of the island, today’s report showed.
Today’s data is based on transactions in the first 10 weeks
of the quarter, the government agency said. It will provide an
update in four weeks.
CapitaLand Ltd., Southeast Asia’s largest developer, rose
3.9 percent to S$3.23 at the 12:30 p.m. break in Singapore
trading. The shares dropped 50 percent last year, its largest
loss on record.
City Developments Ltd., Singapore’s second-largest real
estate company, added 3.5 percent to S$6.59. Keppel Land Ltd.,
the third-biggest, climbed 2.9 percent to S$1.75.
The government agency said on Dec. 19 about 10,450
unfinished homes were sold under a deferred mortgage plan that
allowed buyers to postpone taking out loans equivalent to as
much as 90 percent of the property values until they were
completed.
Some of those homes may be at risk of default or so-called
distressed sales if prices decline further, analysts at
brokerages including CLSA Ltd. have said.