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

[Temperament]

I don't think the market will free fall, but will gradually soften.

The cooling measures basically just reduce the number of possible buyers by setting higher barriers. Once you have that, demand drops and when supply increases.... prices starts to fall. However, I think there is still a core pool of folks with cash and are eligible. These will help to cushion the market. Things like the recent Alex and Duo launches are misleading.

will the buyers be there when the prices are not going up?

I do not know the future. But I don't see how our population, despite of the 'noise' of protecting Singapore, will ever start to shrink, especially the ratio of PR/residents.

Qualifier, my views may be affected by my recent experience. Just signed the OTP on my first resale HDB. I am buying below COV on a unit next to the MRT and high floor. But I supposed the unique circumstances meant the owner was keen to cash out asap. But in the course of house hunting, I observed two groups. One group have holding power as they are prepared to set high prices and are not keen to sell unless an offer comes close to their number. Another group are the upgraders. Knowing that there is uncertainty in the market and HDB requirements to dispose of their unit, they are more amenable and reasonable.

No matter what is the market conditions, every one will buy or sell for his own reasons. Whatever the reasons maybe. So if a seller can find a buyer, they are matching each other requirements. That's really the case most of the times.

[NTL]

I don't think the market will free fall, but will gradually soften.

The cooling measures basically just reduce the number of possible buyers by setting higher barriers. Once you have that, demand drops and when supply increases.... prices starts to fall. However, I think there is still a core pool of folks with cash and are eligible. These will help to cushion the market. Things like the recent Alex and Duo launches are misleading.

will the buyers be there when the prices are not going up?

I do not know the future. But I don't see how our population, despite of the 'noise' of protecting Singapore, will ever start to shrink, especially the ratio of PR/residents.

Qualifier, my views may be affected by my recent experience. Just signed the OTP on my first resale HDB. I am buying below COV on a unit next to the MRT and high floor. But I supposed the unique circumstances meant the owner was keen to cash out asap. But in the course of house hunting, I observed two groups. One group have holding power as they are prepared to set high prices and are not keen to sell unless an offer comes close to their number. Another group are the upgraders. Knowing that there is uncertainty in the market and HDB requirements to dispose of their unit, they are more amenable and reasonable.

For the upgraders (HDB to HDB, or HDB to EC), they have no choice. They will have to let go 6months after getting their new keys. It will be a buyer market for this group of sellers. When more and more HDB and ECs are ready, this group will get big enough to influence the market.

[countonme]

I don't think the market will free fall, but will gradually soften.

The cooling measures basically just reduce the number of possible buyers by setting higher barriers. Once you have that, demand drops and when supply increases.... prices starts to fall. However, I think there is still a core pool of folks with cash and are eligible. These will help to cushion the market. Things like the recent Alex and Duo launches are misleading.

will the buyers be there when the prices are not going up?

I do not know the future. But I don't see how our population, despite of the 'noise' of protecting Singapore, will ever start to shrink, especially the ratio of PR/residents.

Qualifier, my views may be affected by my recent experience. Just signed the OTP on my first resale HDB. I am buying below COV on a unit next to the MRT and high floor. But I supposed the unique circumstances meant the owner was keen to cash out asap. But in the course of house hunting, I observed two groups. One group have holding power as they are prepared to set high prices and are not keen to sell unless an offer comes close to their number. Another group are the upgraders. Knowing that there is uncertainty in the market and HDB requirements to dispose of their unit, they are more amenable and reasonable.

For the upgraders (HDB to HDB, or HDB to EC), they have no choice. They will have to let go 6months after getting their new keys. It will be a buyer market for this group of sellers. When more and more HDB and ECs are ready, this group will get big enough to influence the market.

I remember this rule is only implemented lately. In the past there is no such restriction for those with hdb and bought a private unit. Maybe in 2 yrs' time this rule will be withdraw if the market price of resale hdbs drop a lot. Then people can dont sell their hdbs and keep it for rental income. 6~10% yield (dependin your buying price) is very good investment until old age.

[pianist]

what about downgraders? also will be caught by the 6 months timebar rite?

[NTL]

I don't think the market will free fall, but will gradually soften.

The cooling measures basically just reduce the number of possible buyers by setting higher barriers. Once you have that, demand drops and when supply increases.... prices starts to fall. However, I think there is still a core pool of folks with cash and are eligible. These will help to cushion the market. Things like the recent Alex and Duo launches are misleading.

will the buyers be there when the prices are not going up?

I do not know the future. But I don't see how our population, despite of the 'noise' of protecting Singapore, will ever start to shrink, especially the ratio of PR/residents.

Qualifier, my views may be affected by my recent experience. Just signed the OTP on my first resale HDB. I am buying below COV on a unit next to the MRT and high floor. But I supposed the unique circumstances meant the owner was keen to cash out asap. But in the course of house hunting, I observed two groups. One group have holding power as they are prepared to set high prices and are not keen to sell unless an offer comes close to their number. Another group are the upgraders. Knowing that there is uncertainty in the market and HDB requirements to dispose of their unit, they are more amenable and reasonable.

For the upgraders (HDB to HDB, or HDB to EC), they have no choice. They will have to let go 6months after getting their new keys. It will be a buyer market for this group of sellers. When more and more HDB and ECs are ready, this group will get big enough to influence the market.

I remember this rule is only implemented lately. In the past there is no such restriction for those with hdb and bought a private unit. Maybe in 2 yrs' time this rule will be withdraw if the market price of resale hdbs drop a lot. Then people can dont sell their hdbs and keep it for rental income. 6~10% yield (dependin your buying price) is very good investment until old age.

This restriction was there many years ago for HDB upgraders to other HDB and EC. HDB owners buying private do not have such restriction.

[NTL]

what about downgraders? also will be caught by the 6 months timebar rite?

You are referring to existing HDB owners who buying a smaller HDB? Yes, they also have the restriction.

[Temperament]

HDB to HDB, you can sell first then look for another in the Resale HDB market. This group is taking the risk of selling first so of course the price is stiff. i was in this group when i try to sell my flat.
But after 3 months, i had to revalue my flat again. i remember the revaluation was going down for most flats at the time.

On the other hand if you buy a Resale HDB first, and you can't sell your present HDB after 6 months, you can ask for grace to extend your time to sell. Check with HDB first.

[Jon-san]

On the other hand if you buy a Resale HDB first, and you can't sell your present HDB after 6 months, you can ask for grace to extend your time to sell. Check with HDB first.

I asked this question to a HDB officer sometime back when she was processing my sales application. Her reply was delivered with a wry grin and it went "There is no such thing as unable to sell, it's all just about pricing."

On a side note, I am planning on selling my current place sometime in 2015 to downgrade to a HDB, so I'm hoping demand and pricing doesn't soften too much. If things work out, I'm hoping to be home-loan free before I hit 40years of age.

[opmi]

Yes. The hdb officer is right. Drop 10% sure can sell. In current market.

[Temperament]

Selling is actually much more difficult then buying. Of course for anything in the market there is always an average selling and buying price. If you just price at or below the market's average price, i am sure you can buy/sell anything. That's what we suppose to find out especially when we want to sell.