Sunday, January 8, 2012

Singapore Property News Jan 1 - 8 2012

Here are some news about Singapore property in the first week of year 2012.

Thousands of luxury units launched in 2011 are still unsold
It seems like only the OCR (Outside Central Region) or so-called "mass market" private properties are doing quite well in Singapore while luxury segment is already undersold as of November 2011, even before the Additional Buyer's Stamp Duty (ABSD) introduced to restrict foreigners. With ABSD, 2012 will probably be even difficult for the luxury segment where nearly 50 percent of the demand is, or was, from foreigners.
Source : Singapore Luxury Property Oversupply

Far East Organization has sold 67% of released units at The Hillier in 3 days of launch
The Hillier, a SOHO (Small Office/Home Office) development in Hillview Avenue was launched on the first day of 2012 and by Jan 3rd, 225 of 333 units were sold. Most of the buyers are Singaporeans and Singapore PRs. The project has 528 SOHO units and is 5 minutes walk to upcoming Hillview MRT Station.
Source : Far East starts year with strong demand for The Hillier

Singapore home prices continues to rise
Although the pace of rise is slowing, the prices are still rising. Singapore property market has become a case study for low interest rates fueled asset bubble where the power of low interest rates and resulting artificial home affordability is stronger than any other cooling factors combined; low growth, slower foreign intake and government cooling measures.
Source : Singapore's private home prices continue to moderate

Unintended Consequences of cooling measures in rental market?

Some experts believe that the rental market in Singapore may improve this year, because home buyers are likely to put off purchasing amid the recent cooling measures. If this happens, this will be the second "unintended consequence" of cooling measures. As you may recall, a cooling measure in August 2010 "mandated that resale flat buyers who are private property owners had to dispose of their private homes within six months of purchasing their HDB resale unit. In addition, the Minimum Occupation Period (MOP) of non-subsidised flats was increased from three to five years. This probably made HDB upgraders reluctant to sell their HDB flats because it may be more difficult for them to buy a HDB flat in the future, adding to already severe supply crunch in resale HDB market. Source : Resale HDB flat prices to soften

But this time, any number of foreigners renting instead of buying will probably be offset by huge number of private properties coming to the market while virtually nobody is hiring and some are firing.
Source : Home rental markets future bright

HDB resale flat prices rised 1.7% in Q4 2011
Housing Development Board, HDB, has just released the "Flash Estimate of 4th Quarter 2011 Resale Price Index" and is 190.4 now, an increase of 1.7% over 3rd Quarter 2011. Although the increase is lower than the 3.8% seen in the previous quarter, it is still a significant rise.
Source : HDB resale flat prices rised 1.7% in Q4 2011

Buyers return units for fear of price decline
Some units at major projects released in November and early December 2011 are being returned to their developers, possibly indicating a reflex reaction to the implementation of the additional buyer's stamp duty (ABSD), according to market watchers.
Source : Buyers return units for fear of price decline

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