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HDB resale prices to drop this year: Experts
by Wong Siew Ying 04:46 AM
Feb 09, 2012
SINGAPORE -
Prices for resale public housing apartments in Singapore are expected to decline by 3 to 5 per cent this year, ending their rapid increase in recent years, according to property experts at an industry forum yesterday.
"Public housing resale prices have gone up by over 80 per cent in the last five years," PropNex CEO Mohamed Ismail said at the forum. "People going in to pick up (units) at high prices expect such appreciation in the near future or next five years - it is definitely not likely."
Several factors are expected to contribute to this, including increased supply, government cooling measures and tighter immigration regulations.
About 25,000 new flats will be offered under the government's Build-To-Order (BTO) scheme this year. More sites are expected to go on sale to develop executive condominiums.
ECG Property's managing director Shawn Tan said: "We should be seeing a more sit-back-and-wait attitude from citizens. They will be expecting more flats to be built and they have more options to go for the BTOs and walk-in selections directly from HDB."
Other industry players at the forum said demand is also likely to soften with tighter immigration rules, which will reduce the pool of home buyers.
The drop in resale flat prices could be even more severe - by up to 10 per cent - if the economic environment takes a turn for the worse and the euro zone crisis triggers a global recession.
HSR Property Group CEO Patrick Liew said: "Unless the economic situation changes, unless we see a lot more foreign direct investment coming in ... I think the HDB market will remain flat for the next one to three years."
Market players at the forum noted that the decline will put pressure on cash premiums, or what is more commonly known as cash over valuation (COV).
Mr Eugene Lim, key executive officer at ERA, said: "The COV is already stabilised between S$30,000 and S$40,000. If there is any shift in government policy and with the continued increase in public housing prices, we are likely to see the COV amount go down further."
Mr Lim noted that during the last downturn, the COV fell to zero with some homeowners selling their flats below valuation.
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HDB resale prices could drop 3 to 5%: Agency bosses
By Jessica Cheam
Resale Housing Board home prices, which have soared in the bull run for the past five years, may finally drop some three to five per cent this year.
This correction could even hit 10 per cent, if the euro zone crisis worsens and Singapore's economy is affected, said property agency bosses on Wednesday.
Head honchos of the major local agencies such as PropNex, Dennis Wee Group, ERA Realty, HSR Property Group, C&H Properties and DTZ point to dampened demand in the resale market and a record supply of new HDB flats as key factors.
C&H Properties' key executive officer Albert Lu noted that the number of new permanent residents and citizens in 2011 has dropped compared to previous years, amid a stable supply of new build-to-order (BTO) flats which have been priced 'very attractively'.
HDB resale prices to drop this year: Experts
by Wong Siew Ying 04:46 AM
Feb 09, 2012
SINGAPORE -
Prices for resale public housing apartments in Singapore are expected to decline by 3 to 5 per cent this year, ending their rapid increase in recent years, according to property experts at an industry forum yesterday.
"Public housing resale prices have gone up by over 80 per cent in the last five years," PropNex CEO Mohamed Ismail said at the forum. "People going in to pick up (units) at high prices expect such appreciation in the near future or next five years - it is definitely not likely."
Several factors are expected to contribute to this, including increased supply, government cooling measures and tighter immigration regulations.
About 25,000 new flats will be offered under the government's Build-To-Order (BTO) scheme this year. More sites are expected to go on sale to develop executive condominiums.
ECG Property's managing director Shawn Tan said: "We should be seeing a more sit-back-and-wait attitude from citizens. They will be expecting more flats to be built and they have more options to go for the BTOs and walk-in selections directly from HDB."
Other industry players at the forum said demand is also likely to soften with tighter immigration rules, which will reduce the pool of home buyers.
The drop in resale flat prices could be even more severe - by up to 10 per cent - if the economic environment takes a turn for the worse and the euro zone crisis triggers a global recession.
HSR Property Group CEO Patrick Liew said: "Unless the economic situation changes, unless we see a lot more foreign direct investment coming in ... I think the HDB market will remain flat for the next one to three years."
Market players at the forum noted that the decline will put pressure on cash premiums, or what is more commonly known as cash over valuation (COV).
Mr Eugene Lim, key executive officer at ERA, said: "The COV is already stabilised between S$30,000 and S$40,000. If there is any shift in government policy and with the continued increase in public housing prices, we are likely to see the COV amount go down further."
Mr Lim noted that during the last downturn, the COV fell to zero with some homeowners selling their flats below valuation.
!
HDB resale prices could drop 3 to 5%: Agency bosses
By Jessica Cheam
Resale Housing Board home prices, which have soared in the bull run for the past five years, may finally drop some three to five per cent this year.
This correction could even hit 10 per cent, if the euro zone crisis worsens and Singapore's economy is affected, said property agency bosses on Wednesday.
Head honchos of the major local agencies such as PropNex, Dennis Wee Group, ERA Realty, HSR Property Group, C&H Properties and DTZ point to dampened demand in the resale market and a record supply of new HDB flats as key factors.
C&H Properties' key executive officer Albert Lu noted that the number of new permanent residents and citizens in 2011 has dropped compared to previous years, amid a stable supply of new build-to-order (BTO) flats which have been priced 'very attractively'.
