Property Market Sentiments

[shoeboxlife]

Treehouse is for those who appreciate greenery surrounding them. The namesake quite obvious liao ba.

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The Glades only seen about 80 units sold over the weekend I think. Hearsay.

[NTL]

Not much green left. On one side is Foresque, on another side is Eco Sanctuary.

[Tiggerbee]

Any one went to Skywoods yet? Heard its launched... Hock Lian Seng's first one I think

It's a JV between Hock Lian Seng, TA corp (subsidiary of Tiong Aik) and King Wan.

We are currently in the late bull phase of the property cycle so we should start to see condos with less ideal location (not near to MRT) taking the hit. The CEO of TA corp stated that it's not that there are no buyers but they can't secure a loan from the bank (about one third he of the potential buyers he said). It's as good as saying that demand has dropped by one third due to the cooling measure.

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I heard that Wingtai had closed the Tembusu showflat on weekends to avoid giving the impression that there is low demand on weekdays. It's a buyers market now.

If buyers are patient and in no need to buy properties, SGX listed developers will slash prices even further as they need to sell their condos in 2 years time upon TOP to avoid being penalized by the government. Plus they need to pay interest to the banks. That's why private companies like Far East can hold on to their properties for years as they are not subjected to this ruling.

[shoeboxlife]

Small in size but they could grow in demand

The rental market for shoebox units seemed bleak a few months ago for Mr Aaron Wan, but those dark clouds seem to have lifted in recent weeks.

Source: The Straits Times –7 September 2013

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About 80 units sold at Glades, 35 at Skywoods

Two 99-year private residential projects where sales bookings began yesterday saw somewhat different outcomes.

Source: Business Times –7 September 2013

[egghead]

If buyers are patient and in no need to buy properties, SGX listed developers will slash prices even further as they need to sell their condos in 2 years time upon TOP to avoid being penalized by the government. Plus they need to pay interest to the banks. That's why private companies like Far East can hold on to their properties for years as they are not subjected to this ruling.

Do you mean privately owned developers don't need to follow the same Government regulations? Don't need to pay interests?

[Tiggerbee]

If buyers are patient and in no need to buy properties, SGX listed developers will slash prices even further as they need to sell their condos in 2 years time upon TOP to avoid being penalized by the government. Plus they need to pay interest to the banks. That's why private companies like Far East can hold on to their properties for years as they are not subjected to this ruling.

Do you mean privately owned developers don't need to follow the same Government regulations? Don't need to pay interests?

I'm not sure about the details, but by privatizing the company, the developers can avoid the penalty. Hign end developers are at the highest risk due to backlog of unsold high end properties.
http://www.ocbcresearch.com/pdf_reports/...19-OIR.pdf

[specuvestor]

The key is as long as you have one foreign shareholder you are subject to the penalty, it's not privatisation per se.

[Behappyalways]

http://www.rodyk.com/usermedia/documents...Notes1.pdf

there is a case in heeton......

From The Edge

A luxury condo that it developed jointly with Koh Brothers at Leonie Hill is the 53-unit The Lumos, which was completed in August 2011. ........ Under the Qualifying Certificate(QC) rules, the developers have to complete the construction of a residential project within five years, and sell all the units within two years of the project obtaining TOP(which meant Aug 2013). The penalty is a charge of 8%, 16% and 24% based on the proportion of unsold units for the first, second and third year of extension respectively. Koh Brothers and Heeton have applied to SLA for approval to lease out the remaining units. "In the meantime, we're still doing soft marketing as there are interested buyers." says Low

not vested

http://valuebuddies.com/thread-2342-page-10.html

If buyers are patient and in no need to buy properties, SGX listed developers will slash prices even further as they need to sell their condos in 2 years time upon TOP to avoid being penalized by the government. Plus they need to pay interest to the banks. That's why private companies like Far East can hold on to their properties for years as they are not subjected to this ruling.

Do you mean privately owned developers don't need to follow the same Government regulations? Don't need to pay interests?

[candy188]

[Image: j0hgOFVW1GdgK.png]

Sentiment over real estate dips further
SENTIMENT in the real estate market continued to weaken in the second quarter
The Business Times - July 11, 2013
By: Mindy Tan


SENTIMENT in the real estate market continued to weaken in the second quarter.

The composite sentiment index, indicating overall market sentiment, stood at 4.5 for the quarter, down from 4.8 in Q1. A score under five means deteriorating market conditions and one above five, improving conditions.

The Real Estate Sentiment Index (RESI), compiled from a poll done among members of the Real Estate Developers' Association of Singapore (Redas), measures current and future sentiments about real estate development and market conditions here.

The current sentiment index was 4.7 for Q2, down from 4.8 in the first; the future sentiment index fell to 4.4 from 4.8

[Image: jbc6y50uTM9TgG.png]

Real Estate Sentiment Index (RESI)
http://www.redas.com/doc/RESI_Report_2Q13_(Final).pdf[

[shoeboxlife]

51% of Singapore property buyers are on the prowl for investment

Not on the look out for houses to live in.

According to iProperty.com, new launches remain by far the first choice, topping existing properties 68% to 22%.

Cross referencing this data with URA resale volume data shows market sentiment and market performance closely correlated.

Here's more from the report:

During much of 2012, roughly 40% of transactions were resale properties, which most recently fell to less than 30%.

And most buyers are looking not for a place to live, but for a long-term investment: 51%, up from the previous survey’s 30%; for rental income – 46%; and 40% to own a home.

59% of respondents are confident their property will retain its value, with 21% responding ‘no’. 51% are confident HDB flat prices will continue to rise for the next three years, despite 20,000 new Build-To-Order (BTO) flats every year since 2011.

28% say HDB prices will drop. Some respondents see declines in the private sector: 13% new private condos; 17% resale private condos; 23% non-landed luxury; and 12% landed luxury.

- See more at: http://m.sbr.com.sg/residential-property...dzOiL.dpuf