Foreign demand for S’pore homes falls to lowest since global financial crisis

Posted on 16 May 2013 | Comments Off on Foreign demand for S’pore homes falls to lowest since global financial crisis

The drop in private home sales in Q1 2013 was a result of the tough property cooling measures introduced in January, according to Jones Lang LaSalle.

Resale transactions of condominiums in prime districts 9, 10 and 11 declined 61 percent to 144 units during the period. Notably, foreign buyers registered the lowest level of demand since the global financial crisis. While Singaporeans had previously come to the market’s rescue, they now seem to be stepping away due to downside risks, noted the consultancy.

Supply also fell 29 percent last quarter, based on data from the Building and Construction Authority (BCA).

The latest measures have caused growth in capital values to decline greatly in the luxury prime market and only slightly in the typical prime market. Budget 2013 also mentioned higher taxes on luxury property “that will come into effect in 2014 and 2015, and this might have been priced into the first quarter’s weak capital value growth”.

Moving forward, Jones Lang LaSalle predicts that Singapore’s central bank may introduce stricter rules on the amount of capital banks must hold against residential mortgages. This would in turn “tighten the availability of credit and limit home price growth”.

Local and foreign home buying in the prime market is also expected to decline further following the seventh round of cooling measures and new property tax measures. Consequently, capital values of prime properties would fall by three to five percent in the next 12 months.

Source – PropGuru – 16 May 2013

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HDB priority scheme a hit with married couples

Posted on 16 May 2013 | Comments Off on HDB priority scheme a hit with married couples

HDB’s recent initiative to help married couples with children below 16 years own a home is reportedly doing well.

More than 12,000 first-timer households under the Parenthood Priority Scheme (PPS) took up 32 percent of the 3,898 Build-to-Order (BTO) flats offered in the non-mature estates of Punggol, Sengkang and Bukit Batok during the recent launch in March.

PPS applicants had also applied for 30 percent of flats offered in non-mature estates back in January.

Meanwhile, the housing board plans to launch 4,850 BTO flats in Hougang, Choa Chu Kang, Sembawang, Jurong West and Woodlands, as well as 3,000 balance units later this month.

Moving forward, analysts expect the response from PPS applicants to be even higher as the scheme has been extended to cover married couples expecting a child, in addition to the launch of balance flats which are considered more attractive since they are ready or nearing completion.

According to HDB, 30 percent of BTO flats and 50 percent of balance units are reserved for PPS applicants.

Source – PropGuru – 16 May 2013

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