Softer fall in landed home prices

Posted on 16 May 2014 | Comments Off on Softer fall in landed home prices

Due to tight supply of landed homes, this segment could see a smaller price drop compared to overall private housing market, according to media reports quoting property experts.

Landed home prices could dip two to six percent this year, while the private property market is expected to fall by five to eight percent.

Notably, these homes only account for 3.2 percent of the 76,300 private homes that are anticipated to be ready between 2014 and 2017, said SLP International’s Research Head Nicholas Mak.

“This indicates that the prices of landed homes could increase rapidly again when property prices recover in the future,” he noted.

GPS Alliance Chief Executive Jeffrey Hong added, “Genuine landed home buyers could come back in the second half of this year as prices bottom out.”

The prevailing scenario also offers buyers a chance to benefit from bargains in suburbs such as Loyang, Jurong, Bukit Batok and Sembawang, Hong added.

Due to their lower prices, terraced homes could see more transactions versus bungalows or semi-detached houses, added the experts.

Based on Urban Redevelopment Authority (URA) data released in April, landed homes saw a smaller dip of 0.7 percent compared to the 1.3 percent drop for overall private home prices in Q1 2014.

Source : Property Guru – 16 May 2014

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Private home prices down 1.3%, most in 5 years

Posted on 25 Apr 2014 | Comments Off on Private home prices down 1.3%, most in 5 years

Private home prices fell by 1.3 percent in the first three months of 2014, following a 0.9 percent drop in the previous quarter, revealed latest data from the URA.

This is the second consecutive quarter of decline and also the biggest drop since Q2 2009.

Prices tumbled in all segments of the market. Mass market home prices in the Outside Central Region (OCR) decreased for the second straight quarter by dipping 0.1 percent; Rest of Central Region (RCR) prices fell 3.3 percent – reversing a 0.4 percent gain in Q4 2013. Finally, high-end properties in the Core Central Region (CCR) fell for the fourth consecutive quarter as it dropped 1.1 percent.

According to PropNex Realty, the price decline is in line with slower transaction activity in both the primary and secondary markets as the existing cooling measures continue to bite, particularly the Total Debt Servicing Ratio (TDSR) framework.

“By now we are convinced that the private residential market has turned the corner and is entering into a consolidation phase with reduced transactional activity and prices under pressure,” said Mohamed Ismail, CEO of PropNex.

He added that declining HDB resale prices may have deterred some sellers who were looking to sell their flats and upgrade to a private property.

“The smaller gain achieved from the sale of their HDB flat will limit their budget for their new private property and may cause many to put their plans on hold because the potential profit is insufficient to allow them to upgrade.”

Moving forward, Ismail expects overall price weakness to persist if the current policies stay in place, and prices could decline by about four to five percent this year.

“It may be timely to adjust some of the cooling measures – especially the ABSD (additional buyer’s stamp duty), in order to ensure a sustainable growth of private property prices in the long term,” said Ismail.

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Posted in Cooling Measures, Property Market / Real Estate

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