Resale prices, rents rise for private and public housing

[Musicwhiz]

What does the line in BOLD mean? That the $1m mark will be breached very very soon??!

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Sep 08, 2012
Resale prices, rents rise for private and public housing
Analysts expect buoyant Q3, but differ on how sharply prices might move

By Esther Teo property reporter

RESALE home prices and rents have climbed across the board after a lull in July, according to data out yesterday.

The public and private segments both posted strong showings, and indicate that the third quarter might be a more buoyant one for the property market.

Private resale prices were up 4.5 per cent last month over July, said the Singapore Real Estate Exchange, which collates sales by major property agencies, accounting for about 85 per cent of resale transactions.

This puts the average resale prices in July and last month at $1,134 per sq ft (psf), 1.2 per cent more than $1,121 psf in the second quarter.

Condominium rents increased by 2.4 per cent in the same period.

The same positive sentiment was seen in public housing, with overall median Housing Board (HDB) prices increasing by 1.8 per cent to a record $448,000.

The sale of an executive maisonette in Queenstown for a record $1 million, with a cash-over-valuation of $195,000, is in the works.

Median monthly HDB rents gained 4.3 per cent to $2,400, after holding steady at $2,300 in the last four quarters.

Experts say that interest in the resale market has returned as potential buyers scout for alternatives in the light of sky-high prices at developer launches. Some of these new launches have also lifted the prices of resale homes in surrounding estates.

But they hold varying views on how sharply prices might move this quarter.

Savills Singapore research head Alan Cheong said the property market is "still pretty buoyant", with last month seeing more activity than July despite the start of the Hungry Ghost Festival.

He expects prices to gain about 1.5 per cent in the three months to Sept 30 as expensive new launches pull up values of resale homes nearby. They might rise a further 2 per cent to 3 per cent in the fourth quarter, he said.

"Buying interest is strong, and with new launches like eCO (in Bedok South Avenue 3) priced at about $1,250 psf getting good interest, this will lift all boats, and prices in the resale sector will follow," Mr Cheong said.
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[header]

Yes, I am not surprised.
I think the risk of govt stepping into the property market again is higher now

[Musicwhiz]

Recent transactions reported over the last two days:-

1) Executive Masionette in Bishan sold for $980,000, of which $200,000 was the COV. Valuation without COV = $780,000
2) Executive Masionette in Queenstown sold for $1,000,000, of which $195,000 was the COV. Valuation without COV = $805,000

Considering that transaction (2) came hot on the heels of transaction(1), I think one can conclude that the base prices of resale HDB are moving UP! In this case, from $780,000 to $805,000......

Of course, it's not a like for like comparison due to the different locations, but both are "prime" locations so it's as good as it gets.

[Temperament]

Whatever it is, it simply means our world's capitalist system just need to "QE" again and again until .......

[Muck]

I don't really feel the majority of the big western economies are capitalist anymore. With all the bailouts, seems more socialist to me. If they were capitalist they should would have let the greedy ones to go under, instead of using taxpayer money to bail them out.

[chialc]

clever! although the news always reported that COV is going down....but actually, it's the base prices that's raising up....once, it has raise far enough...guess what...the COV will likely to go <fill in the blank>

One marks for those who answer correctly.

Considering that transaction (2) came hot on the heels of transaction(1), I think one can conclude that the base prices of resale HDB are moving UP! In this case, from $780,000 to $805,000......

[CityFarmer]

clever! although the news always reported that COV is going down....but actually, it's the base prices that's raising up....once, it has raise far enough...guess what...the COV will likely to go <fill in the blank>

One marks for those who answer correctly.

The only meaning of the COV is for the amount of loan to borrow, the lower the COV, the higher the loan amount.

The transaction price is still base on market demand/supply, either in the name of selling price + COV, or selling price alone.

[Musicwhiz]

For the sake of national interest, I will put this article down in full. *Note: Article for info only.

The Straits Times
www.straitstimes.com
Published on Sep 09, 2012
Khaw eases fears over $1m flat price

News of a Housing Board flat being sold for a record $1 million may be swirling, but National Development Minister Khaw Boon Wan urged Singaporeans not to be "traumatised".

There will always be "units with fantastic views that fetch fantastic prices", he said of the sale of the executive maisonette in Queenstown, which is still in the works. The price includes a cash over valuation (COV) of $195,000.

"More important is the larger picture," Mr Khaw said at a dialogue with Sembawang grassroots leaders.

"Are prices affordable generally for most units? I think we have largely achieved that in the last few months with the pricing of the new Build-to-Order flats."

At the same time, he noted that the record resale price was indicative of the fact that "in public housing, we can get very good living conditions".

For example, when the Pinnacle@Duxton flats come onto the resale market in a few years, "there will be many millionaires there", he noted.

It illustrated a dilemma facing policymakers, he added.

To avoid having such high resale prices, the Government could just choose not to build HDB flats in the city.

"But that's wrong," Mr Khaw said. "Are you saying that town is only for the rich? Do HDB-holders not have a right to be in town too?"

But he dismissed the need for additional measures to cool the housing market, despite public and private prices picking up pace again after a lull in the first half of the year.

Data from the Singapore Real Estate Exchange last Friday showed that private resale prices rose 4.5 per cent last month over July, while overall median HDB flat prices rose 1.8 per cent over the two months.

"These month-to-month fluctuations, I won't waste time worrying about it," Mr Khaw told reporters later. "It's the overall picture (that matters), and the overall picture is that the situation now is totally different from a year ago."

Rachel Chang

[pianist]

it was wrong of the govt to peg hdb flat (esp the new one) to market price.

now he said himself - "To avoid having such high resale prices, the Government could just choose not to build HDB flats in the city.

"But that's wrong," Mr Khaw said. "Are you saying that town is only for the rich? Do HDB-holders not have a right to be in town too?""...