Thursday, March 06, 2014

HDB COV hits zero for first time in 9 years

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[For the first time in nearly a decade, the median cash-over-valuation (COV) for resale public flats hit zero-ground last month as resale and rental volumes weakened, flash estimates show.
Data from the Singapore Real Estate Exchange (SRX) showed that overall HDB COV fell from $3,000 in January to zero in February.
Overall HDB cash-over-valuation (COV) dropped from $3,000 in January 2014 to zero in Feb 2014 - the first time COV hit zero since 2006 when SRX began collecting COV records.
Twelve out of 26 HDB towns saw zero or negative median COV, according to SRX. This marks an increase from eight HDB towns in January that saw zero or negative COV]

Sunday, March 02, 2014

Development charge rates up from today

Link here

[The Ministry of National Development, in consultation with the Chief Valuer, revises DC rates based on current market values twice a year - on March 1 and Sept 1. The rates are stated according to use groups across 118 geographical sectors in Singapore.]

Friday, February 07, 2014

Time to tweak property cooling measures: Kwek Leng Beng

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Mr. Quek Leng Beng, CEO of CDL has also weigh-in and hope that the  government will loosen the cooling measures in the coming budget announcement. But has the price really came down to an affordable range? hope the government will make a wise decision.

["As the property market starts to cool, I would like to humbly suggest that this may be the right time to tweak the control measures in the light of concern over the global economy even in the year of the horse. It does take time for the medicine to work. Both the private and public sectors want a soft landing," he added.]

Resale flat COV hits low reached in 2009 crisis

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Resale flat's median COV or cash over valuation used to be around 35k during good time. Now its only about 3k. while rents stay stable at 2.3k.

[Median cash-over-valuation (COV) premiums for Housing and Development Board resale units dived from $5,000 in December to $3,000 last month - similar to the previous low in June 2009 during the Global Financial Crisis - as eight out of the 28 HDB towns saw zero or negative median COV.]

Property sector hopes for the pain to end

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Wishing upon a star, that the government will loosen the housing cooling measures.

[For property players, there is one Budget wish above all else: that some of the cooling measures introduced previously - including the total debt servicing ratio (TDSR) and additional buyers' stamp duty (ABSD) - might be tweaked or even rolled back.]

Redas-NUS index throws up mixed signals

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[In the latest Real Estate Sentiment Index (RESI) survey, the Composite Sentiment Index that captures the overall market sentiment of property developers increased to 4.0 in the fourth quarter of 2013, up from 3.9 in the third quarter.
The Future Sentiment Index also edged up to 4.0 from 3.9 over the same period.
In this index, developed by the Real Estate Developers' Association of Singapore (Redas) and the National University of Singapore, a score under five is a flag for deteriorating market conditions.]

Friday, January 24, 2014

Resale prices of public housing fall first time in 2013 since 2005

Link here: Resale prices of public housing fall first time in 2013 since 2005

The year 2005/06 marked the year where singapore economy made a turn for the better. With the introduction of two integrated resorts a year later, which brought in billions dollar of investment and together with China extraordinary economy booms, singapore has recovered quickly from the '98 asia financial crisis and the 2002 SARS epidemic to scale greater high once more.

[THE Housing & Development Board (HDB) announced on Friday that the resale price index (RPI) fell to 201.7 in the fourth quarter of 2013, down 1.5 per cent from 204.8 in the third quarter. For the full year 2013, the RPI registered a decline of 0.6 per cent, in what is the first annual decline since 2005. Resale transactions decreased by 12 per cent from 4,529 cases in Q3 2013 to 4,001 cases in Q4 2013. The number of resale transactions for the full year of 2013 stood at 18,100 - a decrease of 28 per cent over 2012.]

1 in 5 Singapore borrowers nearly overstretched: MAS

Link Here
So is this low interest rate inflated housing bubbles?
[As long as there is no sudden spike in interest rates - and the hike is expected to be very gentle -- most people should be able to continue servicing their loans]

Why Singapore is not Iceland . . .

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[The bottom line...
Singapore's financial sector and economy are not at risk of an "Iceland- style meltdown", as Jesse Colombo claims. Still, the market mechanisms on which his analysis is based are standard features of global capital markets, and fragilities and excesses do exist in our financial system. Consumers and investors can keep our money and its purchasing power safe by understanding and acting on a few simple principles: low interest rates (and high and rising property prices) do not last forever; excessive leverage (indebtedness for speculative purposes), like gambling, puts one at risk of losing everything; the government cannot protect and rescue us from all our behavioural excesses (that is, market risks exist in Singapore investments just as they do in other places - to expect otherwise is to court "moral hazard"); and the most secure way to make more money is to increase productivity from which sustainable higher incomes and real wealth flow. As a mature, developed economy that is now one of the world's richest as well as most open, we can no longer rely on future rapid GDP growth for recovery from a potential financial crisis.]

Saturday, January 18, 2014

The Hillford sells out in 5 hours

Link Here

Looks like the residential price is holding up pretty well. Bubble it might be but not bursting anytime soon.

[All 281 units bought on first day.
World Class Land announced that all 281 residential units up for sale at retirement resort The Hillford have sold out on the first day of sales. 1,000 potential buyers turned up at the showflat at Jalan Jurong Kechii.
There was a good showing by buyers aged 50 and above, said World Class Land.
"The response to Singapore's first retirement resort has been spectacular, with many buyers responding very positively to The Hillford's wide range of elderly-friendly features, services and facilities specially introduced to serve their needs," said Koh Wee Seng, CEO, World Class Land.
Koh said that based on observations a "substantial portion" of buyers were over 50 years of age.
The 281 residential units were sold at an average of S$1,100 psf.]

Monday, January 13, 2014

Resale, rental prices of non-landed private homes down in Dec

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We still do not see any significant drop in house price.

[Resale prices of non-landed private homes declined 0.2 per cent in December last year, marking the fourth straight monthly drop in SRX’s overall property resale index released on Monday.
The Core Central region (CCR) saw the largest decline at 2.3 per cent, followed by Outside Central region's (OCR) decline of 1 per cent. The Rest of Central region (RCR) bucked the overall trend by registering a price increase of 2.9 per cent.
Rents also slipped another 1.3 per cent in December, reflecting a sustained weakening of rents for the fifth consecutive month.
“This is the weakest rental prices observed since December 2011,” said SRX.]

Sunday, January 12, 2014

Call to relax some rules as property market wanes

Link Here

Feeling the heat? or the cold from the cooling measures.

[Singapore, government should relax some of its property-cooling measures as demand for real estate wanes.
This was the view of Getty Goh, director at Ascendant Assets, who felt this was necessary given "the lacklustre property market" and the likelihood that interest rates will rise this year and the next.
Speaking at the 12th Singapore Chinese Chamber of Commerce and Industry-Business Times (SCCCI-BT) Business Outlook Forum yesterday, Mr Goh said the government should consider repealing the Seller Stamp Duty (SSD) for residential properties introduced in January 2011, because sellers who are keen to dispose their properties may find themselves tied down by it.]