With private home prices hitting an all-time high, analysts are telling investors that they must sell their properties now instead of waiting for prices to increase further.
“At this point in time, URA’s price index shows that prices are at an all-time high, so it is an opportunity for investors to cash out at today’s level rather than to wait for future price appreciation,” said Chia Siew Chuin, Director of Research and Advisory at Colliers International.
In the last few years, home prices have been climbing following the influx of newly completed projects launched prior to the introduction of the seventh and most comprehensive round of cooling measures.
“Based on latest statistics, there are about 60 newly completed projects in the first quarter of this year,” said Nicholas Mak, Executive Director of SLP International Property Consultants. “Some of these projects that are completed this year were launched for sale three years ago before some of the more severe cooling measures were implemented.”
“The owners who bought some of these strata-titled units three years ago can still sell them and they are not subjected to sellers’ stamp duty,” he added.
Newly completed projects appeal to buyers wanting to move into a new home or rent out the unit easily, analysts noted. However, selling a property now could take longer as buyers become more cautious as some are affected by the cooling measures, such as the additional buyer’s stamp duty (ABSD), while others opt to purchase directly from developers who provide attractive discounts.
Source – PropertyGuru – 3 2013
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