Singapore home sales fell 48% in October after loan curbs: update

Latest update on Singapore property market sentiment...

Singapore home sales fell 48% in October after loan curbs: update

Singapore’s home sales fell 48% in October from a year ago, signaling that the government’s efforts to cool the property market are working.

Home sales slid to 1,009 units last month compared with 1,949 in October 2012, according to data from the Urban Redevelopment Authority released today. From the previous month, sales decreased 19%, the data showed.

Home sales have been declining in the past four months compared with figures last year after the government imposed new rules in June governing how financial institutions grant property loans to individuals. 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 down- payments since 2009 to curb speculation in Asia’s second-most expensive housing market.

“Developers have been a bit apprehensive about the sentiment so they seem to have marketed fewer projects,” said Nicholas Mak, an executive director at SLP International Property Consultants in Singapore. Home buying has “stabilized”, he said, citing the fact that 90% of the homes marketed were sold last month, based on today’s data.
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http://mypaper.sg/news/time-ease-propert...s-20131115

Time to ease property cooling measures?
KENNY CHEE AND VICTORIA BARKER

THE cooling measures are giving the property market the shivers.

Private-home resale transactions have dipped, dropping 57 per cent in the third quarter to 1,478 units, compared to a year ago.

Even resale prices are weak, falling 1.6 per cent in September from August for non-landed private homes.

Foreigners are staying on the sidelines. On Tuesday National Development Minister Khaw Boon Wan said the proportion of private homes bought by foreigners fell from 17 per cent in 2011 to 7 per cent in the third quarter of this year.

More corrections may follow. Some economists predicted that home prices could fall as much as 30 per cent in 2015 and 2016, due to higher interest rates and a jump in housing supply expected then, The Business Times reported on Wednesday.

Property experts say this shows that the property curbs have worked. The question is whether they have worked too well and is it time for the restrictions to be eased.

To ward off a potential property bubble, the Government has slapped stamp duties and introduced steps to ensure that homebuyers are borrowing within their means.

Mr Eugene Lim, ERA's key executive officer, said there is "a need to review or tweak some measures to ensure the resale market remains stable".

He said the measures should not hurt "marginalised groups" like upgraders who are not buying for investment but to fulfil their desire for a better lifestyle.

Mr Alan Cheong, head of research and consultancy at Savills Singapore, said that the measures in place could crimp investor demand and result in not enough homes to meet rental needs of singles and smaller families as the population grows. This could lead to rents going up.

"Purely from this aspect, some measures should be lifted or toned down," he said.

Mr Khaw also said he is "seeing more (light) at the end of the tunnel" when it comes to achieving a sustainable property market here but noted that "we're still in the tunnel".

For Mr Nicholas Mak, head of research and consultancy at SLP International, this means the Government might not be ready to lift the property curbs.

In fact, he and other experts believe lifting the measures now could backfire.

Mr Mak said that demand in some segments is still strong: "Judging by the buying frenzy we still see at some showflats, if the Government removes the measures now, we will be back to a lot of buying and borrowing again."

CIMB regional economist Song Seng Wun said the factors - such as low interest rates - contributing to a property bubble still remain. So, removing the restrictions would result in the same or higher level of property speculation as before.

But looking at the large supply of homes set to hit the market between 2015 and 2017, and the possibility of interest rates rising, DWG executive director Andy Choa said it would be "a no-brainer" for the Government to consider easing some curbs.

In the meantime, home sales are expected to still be slow next year, said Ms Lee Lay Keng, head of Singapore research at DTZ, as the cooling measures work through the market.

"Developers will have to price their projects more competitively to realise sales," she said.

myp@sph.com.sg

Most new projects in Nov. selling very well.

haven;t even kill the animal spirits of property investors, want to lift restrictions?

these guys talking from their vested positions.

I dont see any developers cut prices yet..

Many GLCs linked companies are in this business, so we should know the answer.

not really, the ones that been playing in this market is mid-size developers or contractors turns developers.

(16-11-2013, 10:30 AM)cfa Wrote: Most new projects in Nov. selling very well.

It's all about location. Properties at good location are selling well despite the pricing.

http://www.straitstimes.com/breaking-new...s-20131115

Buyers pick up 87% of Duo Residences in Bugis within three days

By Melissa Tan

The 660-unit Duo Residences in Bugis had sold 468 units out of the 540 units released as at 3pm on Friday, its developer M+S told The Straits Times.

This works out to a take-up rate of about 87 per cent within three days. More units are likely to be sold by the end of Friday, as queues at the showflat were still long when The Straits Times visited at 3pm.

The average selling price was about $2,000 per sq ft (psf) and the highest price psf achieved was $2,600 psf for a studio apartment, M+S said in a statement.

M+S chief operating officer Kemmy Tan told The Straits Times that demand was strong enough for the 49-storey project to "achieve a good pricing from the developer's point of view".

(16-11-2013, 11:02 AM)NTL Wrote:

(16-11-2013, 10:30 AM)cfa Wrote: Most new projects in Nov. selling very well.

It's all about location. Properties at good location are selling well despite the pricing.

http://www.straitstimes.com/breaking-new...s-20131115

Buyers pick up 87% of Duo Residences in Bugis within three days

By Melissa Tan

The 660-unit Duo Residences in Bugis had sold 468 units out of the 540 units released as at 3pm on Friday, its developer M+S told The Straits Times.

This works out to a take-up rate of about 87 per cent within three days. More units are likely to be sold by the end of Friday, as queues at the showflat were still long when The Straits Times visited at 3pm.

The average selling price was about $2,000 per sq ft (psf) and the highest price psf achieved was $2,600 psf for a studio apartment, M+S said in a statement.

M+S chief operating officer Kemmy Tan told The Straits Times that demand was strong enough for the 49-storey project to "achieve a good pricing from the developer's point of view".

Almost all city living folks behave in this way. i think if for retirees it may not be necessary.

Smaller developers are the ones still bidding land aggressively. They must be betting that gov w not let the property market tumble. Surely the developers will be pushing the curbs to be lifted to push out their unsold units.

(16-11-2013, 12:06 PM)countonme Wrote: Smaller developers are the ones still bidding land aggressively. They must be betting that gov w not let the property market tumble. Surely the developers will be pushing the curbs to be lifted to push out their unsold units.

Many of the smaller developers had not gone though any bust cycle and they only see prices going up. The ignorant ones do not fear.