Category Archives: Property Market / Real Estate

New lending rules will lead to cautious developer bidding

Posted on 26 Jul 2013 | Comments Off on New lending rules will lead to cautious developer bidding

The Monetary Authority of Singapore’s (MAS) latest move to encourage prudence in the home loans market will likely affect not just borrowers but also developers, according to Savills.

Even before the central bank introduced its new rules, the US Federal Reserve hinted at narrowing its quantitative easing by the end of 2013. This has “caused anxiety over the end of an era of easy debt financing at low interest rates”, the consultancy said.

With these in place, market sentiment is looking less vibrant. Consequently, the residential market will likely moderate over the next few months and developers will be more cautious in submitting bids for new sites in the latter half of this year.

“Moving forward, private residential prices are likely to rise marginally until the end of the year, with the mass-market segment taking the lead,” said Savills.

Source – PropertyGuru – 25 Jul 2013

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Posted in Developers, Loan / Mortgage / Finance, Property Market / Real Estate

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Rents on luxury property to slip 5%

Posted on 26 Jul 2013 | Comments Off on Rents on luxury property to slip 5%

Average monthly gross rents of luxury and super-luxury homes are expected to drop by up to five percent this year, according to Colliers International.

This could be due to heightened competition for tenants in completed and upcoming projects, which could put some downward pressure on rents.

Meanwhile, developers who acquired land at high prices are not expected to significantly slash pricing due to low profit margins.

“In light of the revised forecast tally which remains healthy, the above factors are expected to still provide support for prices of newly launched homes,” said Colliers International.

“Taking into account the possible effects on the secondary market as well, overall private residential home prices are expected to flat line with marginal downsides if any, apparent nearer the end of the year.”

Source – PropertyGuru – 25 Jul 2013

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Posted in Luxury Property, Property Market / Real Estate, Rental / Lease

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