Singapore Eases Property Curbs After Housing Prices Decline

[chew]

http://www.tnp.sg/news/singapore/weak-de...ing-market

It's interesting to note we have property investors shelling out mortgage repayments from their pay pockets. The employment figures (for both local and S and Epass holders as  pointed out by Vingaard) will be the key determinant if Singapore hits a property downcycle or otherwise

From 2009 to 2013, she bought four apartments and two retail shop spaces.

The Total Debt Servicing Ratio (TDSR) is a framework established by the Monetary Authority of Singapore (MAS) in 2013 

She probably got all the 6 before TDSR put in place.  Wonder how many others are in the same boat.

Rental highly likely covers the interest component, she has to top up the principal repayments, and probably a fair chance she can sell the portfolio over her purchase price if she wanted but choosing not to anticipating a price rebound and thinking she will never be able to replicate her leveraged portfolio under today's regulations

[corydorus]

http://www.tnp.sg/news/singapore/weak-de...ing-market

It's interesting to note we have property investors shelling out mortgage repayments from their pay pockets. The employment figures (for both local and S and Epass holders as  pointed out by Vingaard) will be the key determinant if Singapore hits a property downcycle or otherwise

From 2009 to 2013, she bought four apartments and two retail shop spaces.

The Total Debt Servicing Ratio (TDSR) is a framework established by the Monetary Authority of Singapore (MAS) in 2013 

She probably got all the 6 before TDSR put in place.  Wonder how many others are in the same boat.

I do not understand why people think she is in trouble. She is just "Stressed" for not earning enough to pay off her interests. If she has done that, she get the property for free. If she has to top up 30%. She is getting the property at 70% discount ! And she is using bank loan money who is from savers who put into bank accounts as fixed deposits or cash..

Unless the value of the apartment falls below her buy price significantly, she is likely to have made significant profit on top of the years of rental income if she is to sell her investment properties today to pay off her loan.



Cory

[kichialo]

She just need to sell one or two of her property and she would be very comfortable.

[Big Toe]

It is a very vague story with no hard figures.
But there are many who invested in Residential / Commercial properties who are either unable to rent them out or
have rents far lower than depreciation+maintenance+interest cost+tax. Do note that the total cost of holding a commercial property(excluding principal repayment) can add up to a couple of thousand dollars each month even for a 'cheap' unit.
Residential properties are slightly 'safer' as tenants are more easily found(with some adjustment on rent) compared to commercial properties.

It is a huge strain for an individual who used too much leverage.
Industrial and retail property generally is a complete disaster now.
For newly set up small to medium sized enterprises, I can safely say 80-90% will be unprofitable for a very long time to come.
Even many established/innovative/prudent/ forward looking firms are struggling.
We are at a strange point in time where we dont have an overall strong economy BUT with a low unemployment rate and the large local companies/multinationals doing very well.

Right now a person would be very much happier if he/she is jobless and not owning any properties/running any businesses.
It is just a very difficult point in time. Too much money looking for too few worthwhile investments.
A lot these investment dollars end up in sub par investments/businesses engaging in price war and race to the bottom. This in turn will hurt other strong businesses due to an unhealthy level of competition.
My best advice is to stay the hell out and do nothing now.

[CY09]

http://www.channelnewsasia.com/news/sing...to-9498232

HDB has announced the launching of 17,000 flats for sale launch in 2018. With the 1H GLS already estimated to produce 8,000 units, it means the housing supply for 2021-2022 is likely to exceed the natural population demand (approx 27,000). Unless the government intends to import more foreigners, it means we are going to see the worsening of housing supply glut in 2021/2022.

According to URA, there is already about 5,298 housing units which will be ready in 2021 and 2,000+ units in 2022 and beyond.

I have reasonable belief that our private housing vacancy rate will exceed 10% come 2020 UNLESS our population grows 1-1.5% annually now

[BlueKelah]

http://www.channelnewsasia.com/news/sing...to-9498232

HDB has announced the launching of 17,000 flats for sale launch in 2018. With the 1H GLS already estimated to produce 8,000 units, it means the housing supply for 2021-2022 is likely to exceed the natural population demand (approx 27,000). Unless the government intends to import more foreigners, it means we are going to see the worsening of housing supply glut in 2021/2022.

According to URA, there is already about 5,298 housing units which will be ready in 2021 and 2,000+ units in 2022 and beyond.

I have reasonable belief that our private housing vacancy rate will exceed 10% come 2020 UNLESS our population grows 1-1.5% annually now

Problem is cannot let more ah tiong and FT in too boost population as local complaining. On the other hand local not making enough babies as everything is too expensive nowadays and couples working hard for $$ also no time to make and take care of babies.

Developed nation problems we have.

[jjlim84]

boost in population definitely needed, by means of new citizens converting or make importing looser
They have been pre-empting for 10million for a while, and all the new infrastructures: new MRT lines, HSR, Jurong CBD, Megaports, Terminal 5 etc are down the pipeline to cater for this. Future of housing prices in Singapore? Doesn't look gloomy to me

[corydorus]

Population growth in citizen and residence have been quite consistent about 25k to 30k annually. The fluctuations are non-residence foreigners. So HDB release is not a BIG surprise.