Private Property prices......still up or down? Part II

[Showster]

i heard only 58 units were sold for Florence Residences in another forum...

Confirmed very hard to clear for another year or two.

 

The new measures raised the down payment for new buyers to 25%, They probably need another year or two to raise this amount. Or work in progress to sell HDB...

 

Current market is more for the cash rich foreigners and enbloc recipients to play. Investors would consider resales and boost those numbers in the meantime. Rental transactions and prices will continue to grow.

 

We just continue to watch show for awhile.

[Wt_know]

die die must buy now

GST raise another 2% of $1.5M property is another $30K tax for nothing

[Showster]

die die must buy now

GST raise another 2% of $1.5M property is another $30K tax for nothing

ABSD = GST already. First property owners don’t need to pay this tax.

 

GST does not apply to the whole property price.

[sginvestor]

Confirmed very hard to clear for another year or two.

 

The new measures raised the down payment for new buyers to 25%, They probably need another year or two to raise this amount. Or work in progress to sell HDB...

 

Current market is more for the cash rich foreigners and enbloc recipients to play. Investors would consider resales and boost those numbers in the meantime. Rental transactions and prices will continue to grow.

 

We just continue to watch show for awhile.

i don't understand...

 

how come Fourth Avenue Residences managed to clear 70 units... but only 58 units for Florence Residences?

[Showster]

i don't understand...

 

how come Fourth Avenue Residences managed to clear 70 units... but only 58 units for Florence Residences?

Investor profile...

 

Where do enbloc sellers and foreign buyers prefer to buy?

 

First time buyers and upgraders will not aim Fourth Avenue, more likely outskirts.

Edited March 2, 2019 by Showster

[awhtc]

The market will likely need 2-3 years to digest the 2018 cooling measures and the property demand can only recover if the GDP is above 3% for 2 consecutive years.

 

Developers who bought land at high prices (e.g. via enbloc) in 2017 and 2018 are going to face a hard time in 2019 and 2020 at least.

[therock]

Someone is betting on en bloc sellers paying premium prices for new homes. And for anxious new buyers who can’t wait to jump onto bandwagon of high prices condos ..

[Showster]

The market will likely need 2-3 years to digest the 2018 cooling measures and the property demand can only recover if the GDP is above 3% for 2 consecutive years.

 

Developers who bought land at high prices (e.g. via enbloc) in 2017 and 2018 are going to face a hard time in 2019 and 2020 at least.

2-3 years a bit too far fetched. Many are already getting ready to sell and react to the CMs to raise capital and avoid ABSD.

 

I believe a few months to half a year delay in launching units may bring back the demand. But listed companies have their constraints.

 

In the meantime, just short with confidence, but DYODD.

Edited March 2, 2019 by Showster

[awhtc]

At the back of higher interest rates and compliance costs, I think some small developers may go bankrupt if they can't sell sufficient units to pay their contractors.

[Showster]

At the back of higher interest rates and compliance costs, I think some small developers may go bankrupt if they can't sell sufficient units to pay their contractors.

Small Developers hardly won any site in the last few years.

[awhtc]

Small Developers hardly won any site in the last few years.

 

Probably "boutique" developers is a better phrase.

 

https://www.straitstimes.com/business/property/four-sites-on-auction-as-firm-winds-up

[Nemesis_lane]

Based on the latest credit suisse report,trend is that developers are putting up fake sales( listing units sold to create good sales impression then later listing as returnees units) returned units are around 50% of sales. What this indicates is that developers are desperate. Hong Kong, China and Australian markets have felt the impact. It is taking effect in Singapore. I forsee a drop in the Singapore property market by 2022 as the impact will take time to hit given our governments good financial mechanism in place in the property market.

[Showster]

https://www.99.co/blog/singapore/how-badly-will-rising-interest-rates-hurt-singapore-property-buyers/?

 

Some bros are unimpressed about the quality of 99.co but I feel every view should be respected.

 

This view is quite interesting. It has a few contrasts with my views, namely as follows:

 

1. Investors will have an easier time than owner-occupiers.

 

2. Rental (rise) will help cope with interest rise.

 

3. Interest won't at the broad level broach 3%, not in 2019 and not 2020, unless we have a huge income rise at the broad level too.

 

 

DYODD.

 

May the best predictor prevail. We can review in a year's time.

 

 

Read this story too for a more balanced view.

https://www.99.co/blog/singapore/why-were-seeing-a-spike-in-returned-units-from-2018/

 

 

 

Based on the latest credit suisse report,trend is that developers are putting up fake sales( listing units sold to create good sales impression then later listing as returnees units) returned units are around 50% of sales. What this indicates is that developers are desperate. Hong Kong, China and Australian markets have felt the impact. It is taking effect in Singapore. I forsee a drop in the Singapore property market by 2022 as the impact will take time to hit given our governments good financial mechanism in place in the property market.

 

Edited March 2, 2019 by Showster

[awhtc]

Higher interest rates benefit the banks, their shareholders and savers.  On the other hand, it hurts most buyers and investors who take bank loans.  Latest interest rates are around 2.5% now, so with two more expected Fed rate increase this year, it could hit 3% by early next year.

 

Hence, my gut feel is property prices will fall in 2019 and 2020.  The ramp up in 2017 and 2018 is not sustainable at the back of weaker global economy and rental.

 

There are already some star buy units at some developments recently, and I think the trend will continue.  So those who want to buy do not need to rush this year. 2020 could be a better year to buy since there are so (or rather, too) many launches.  If not, just save up more or buy the bank shares to earn higher non-taxable profit.

 

 

DBS Group Holdings Ltd’s 2018 Earnings: Record Year With Continued Growth Expected in 2019

 

"In the fourth quarter, net interest income rose 11% to S$2.3 billion, due to both loan volume growth and higher net interest margin."

 

https://www.fool.sg/2019/02/18/dbs-group-holdings-ltds-2018-earnings-record-year-with-continued-growth-expected-in-2019/

 

 

Edited March 2, 2019 by awhtc

[Showster]

Higher interest rates benefit the banks, their shareholders and savers. On the other hand, it hurts most buyers and investors who take bank loans. Latest interest rates are around 2.5% now, so with two more expected Fed rate increase this year, it could hit 3% by early next year.

 

Hence, my gut feel is property prices will fall in 2019 and 2020. The ramp up in 2017 and 2018 is not sustainable at the back of weaker global economy and rental.

 

There are already some star buy units at some developments recently, and I think the trend will continue. So those who want to buy do not need to rush this year. 2020 could be a better year to buy since there are so (or rather, too) many launches. If not, just save up more or buy the bank shares to earn higher non-taxable profit.

 

 

DBS Group Holdings Ltdâs 2018 Earnings: Record Year With Continued Growth Expected in 2019

 

"In the fourth quarter, net interest income rose 11% to S$2.3 billion, due to both loan volume growth and higher net interest margin."

 

https://www.fool.sg/2019/02/18/dbs-group-holdings-ltds-2018-earnings-record-year-with-continued-growth-expected-in-2019/

Transactions will thin for new sales but resales will gain some momentum as there is still a lot more catch up to do.

 

Hard to see any significant dips.

[golden_eagle]

Confirmed very hard to clear for another year or two.

 

The new measures raised the down payment for new buyers to 25%, They probably need another year or two to raise this amount. Or work in progress to sell HDB...

 

Current market is more for the cash rich foreigners and enbloc recipients to play. Investors would consider resales and boost those numbers in the meantime. Rental transactions and prices will continue to grow.

 

We just continue to watch show for awhile.

 

The location is so nice. It's on a hill, away from road noise, and north-east wind comes every winter. 

And it's facing private enclave on the west. 

 

I am thinking whether it's allowed to hack a door to allow BR2 direct access to the Bath 2? 

Based on the floor plan, what are the type of walls which can be hacked? 

Is it technically possible to move the wall between Living and Balcony north to convert half of the big balcony to living area? 

 

 

Edited March 3, 2019 by golden_eagle

[Wind30]

Was trying to find affinity showflat and this must be the hardest showflat to find. Why make a website when u don’t put the map of the showflat. Called and they say near st Gabriel primary, drove past but seen nothing there.

 

Sure cannot sell

[Khng8]

The location is so nice. It's on a hill, away from road noise, and north-east wind comes every winter.

And it's facing private enclave on the west.

 

I am thinking whether it's allowed to hack a door to allow BR2 direct access to the Bath 2?

Based on the floor plan, what are the type of walls which can be hacked?

Is it technically possible to move the wall between Living and Balcony north to convert half of the big balcony to living area?

 

 

Not possible to shift the balcony door to enlarge the living room.

Potentially you can hack the wall at BR2 to open to common toilet.

The only way light is coming to the unit is from the living room direction so the toilets and kitchen will be very dark even during the day. Be prepared to have lights switched on during the day.