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
Posted in Luxury Property, Property Market / Real Estate, Rental / Lease
Tagged Luxury Homes, Luxury Property, Luxury real estate, Property Rental, Real estate, Real estate pricing, Rental Market, Singapore Property, super-luxury homes
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