MAJORITY EXPECT PROPERTY PRICES TO FALL DUE TO ABSD

MAJORITY EXPECT PROPERTY PRICES TO FALL DUE TO ABSD

Feb 20, 2012

PropertyGuru, Asia’s leading property portal, today released its latest Affordability Sentiment Survey results on property market sentiment in Singapore. It revealed that the majority of home buyers and investors expect the additional buyer’s stamp duty (ABSD) introduced in early December 2011 to lower property prices.

A significant 52 percent of those polled believe that prices will decline over the next six months, primarily attributed to the impact of the ABSD. The survey polled more than 3,000 respondents, nearly double the previous survey’s 1,737.

Analysis of the results shows that the seven-point increase in the affordability sentiment index was almost fully driven by the growing belief of a price decline in the next six months.

Around 48 percent of respondents (up from the previous 38 percent) expect HDB prices to drop, while 57 percent (up from 46 percent) believe that private home prices will also fall. In addition, 60 percent of respondents (an increase from 52 percent) expect cash-over-valuations (COVs) to drop.

Meanwhile, rentals are expected to decline, attributed to the availability of housing supply coming onstream.

“We expect to see property prices continue to soften during 2012. Consumers are adopting a wait-and-see approach to property purchase and investments and they are not convinced that the Government is doing enough to ease rising property prices,” said Steve Melhuish, CEO of PropertyGuru Group.

Buying intentions also fell as buyers wait for prices to decline. The public housing sector witnessed the largest drop at four percent, whereas 22 percent expressed their intention to buy a flat in the previous survey.

Much like the previous survey, almost half or 49 percent of respondents were dissatisfied with Singapore’s real estate climate. Their main concerns were prices, accounting for 39 percent and negative government policies at 18 percent.

“The ABSD has obviously had some immediate impact on sentiment. More Singaporeans now feel property prices will soften this year. This is not yet translating into demand, however. There’s a fair bit of ‘wait and see’ out there!” said David Black, Managing Director at Black Box Research, a market research firm that served as a survey partner.

  

Info courtesy - PropertyGuru.com.sg

SILVER HOUSING BONUS TO BOOST HDB RESALE MARKET

SILVER HOUSING BONUS TO BOOST HDB RESALE MARKET

Feb 20, 2012

Public housing estates which house many elderly residents will likely see higher sales after the government introduced the S$20,000 bonus scheme for older Singaporeans who sell their flats to acquire smaller units.

As it aims to help elderly Singaporeans unlock the value of their HDB flats, the measure will likely “impact the resale activity in the public housing market favouring the older central districts such as Bukit Merah and Queenstown, given the higher proportion of senior households and recent property price trends,” said Chua Yang Liang, Head of Research for South-east Asia at Jones Lang LaSalle (JLL).

Up to five percent of existing HDB households are expected to benefit from the latest scheme, giving a small boost to the resale prices of three-room or smaller HDB units.

JLL added that the new scheme could increase resale activity in Toa Payoh, Queenstown and Bukit Merah, based on an analysis of the premium gap between 5-room and 3-room and 4-room and 3-room flats in each HDB town and the number of senior households in each town.

However, “the Budget is likely to have a limited impact on the property market, given recent market trends and the existing government policies in place,” it added.

The government plans to increase the number of housing units in the 400m vicinity near MRT stations to 400,000 within ten years. But JLL said this would require government land sales close to the area to rise over the next 10 years.

  

Info courtesy - PropertyGuru.com.sg

NEW CEA RULES COULD RESULT IN FEWER PROPERTY AGENTS

NEW CEA RULES COULD RESULT IN FEWER PROPERTY AGENTS

Feb 20, 2012

The number of real estate agents could decline significantly, as the Council for Estate Agencies (CEA) now requires those who are holding other jobs to secure their employer's consent first, before becoming agents.

Several industry watchers said the new rule could result in a drop in property agents by up to 15 percent when the time comes to renew their licences next year.

Purnima Shantilal, Director of Licensing and Investigations at CEA, said the new rule was imposed as part of a regular review to increase professionalism.

“The question was included to allow CEA to gather a more comprehensive profile of the industry. Existing salespersons will be required to make the same declaration during the renewal of their registration status,” she said.

Lim Yong Hock, Senior Vice-President at PropNex, said his staff only learned of the new rule after they applied for licences for new agents.

“Typically, agents do not need to declare to the property agency if they have other work commitments. It's fine, as long as they are able to do the job,” he noted.

Imposed in early January, the new rule requires applicants to declare if they are holding another job while being a property agent. If so, they need to submit a letter of approval from their employer along with their employment details.

Lim said the new requirement will likely lead to some potential agents backing out.

“Overall, the net effect on the industry could be a reduction of between 10 and 15 percent by next year, as there is a substantial number of people doing this to supplement their income without their employer's knowledge,” he added.

Info courtesy - PropertyGuru.com.sg

SINGAPORE THE WORLD'S 9TH MOST EXPENSIVE CITY

SINGAPORE THE WORLD'S 9TH MOST EXPENSIVE CITY

Feb 20, 2012

Singapore has been ranked the ninth most expensive city in the world, surpassing New York, London, Frankfurt and Hong Kong which are normally associated with high-end living, according to latest Economist Intelligence Unit survey.

While Singapore has dropped three notches from last year’s ranking, the new survey shows that the country is still an expensive city. It has joined the elite list of the top 10 most expensive Asian cities, together with Tokyo, Osaka and Kobe.

Meanwhile, Zurich emerged as the world's most expensive city for the first time, beating Tokyo, which fell to second spot.

Several surveys released recently point to Singapore’s rising cost of living, particularly among expats. In December 2011, the country was ranked Asia’s sixth most expensive city, beating Hong Kong for the first time.

“This is the price to pay to become an international financial centre – high prices and a wide income gap within a single city,” said Kit Wei Zheng, an economist from Citigroup. “Wages, land, property and rentals are under cost pressures due to excess demand, symptoms of a fast-growing economy.”

Info courtesy - PropertyGuru.com.sg

COVS FOR FLATS DROP A MASSIVE 20-30%

COVS FOR FLATS DROP A MASSIVE 20-30%

Feb 16, 2012

Cash premiums for most types of HDB flats are falling across the country, declining between 20 and 30 percent, according to latest figures compiled by The Straits Times.

Based on last month’s transactions, the report said that median cash-over-valuations (COVs) for all flat types dropped between S$4,700 and S$8,000, with premiums for five-room and executive flats falling by as much as S$10,000 and S$17,000 respectively.

Many property agencies noted that the sudden drop in COVs across the market was mainly due to the record number of flats launched by the government and the upcoming policy changes, which are expected to limit the supply and demand of resale flats.

   

Info courtesy - PropertyGuru.com.sg

PRIVATE HOME SALES SEE REBOUND IN JANUARY

PRIVATE HOME SALES SEE REBOUND IN JANUARY

Feb 15, 2012

Private home sales in Singapore saw a strong rebound in January 2012, as developers launched several projects across a number of popular districts.

According to latest figures by the Urban Redevelopment Authority (URA), January’s home sales soared to 2,077 units, an increase of more than three times month-on-month and 34 percent year-on-year.

“This hike in sales is due to the launch of 2,665 units in the month compared to the 937 launched in December. Developers launched these projects in the more popular suburban regions,” said Tejaswi Chunduri, real estate analyst for PropertyGuru.

Excluding executive condominiums (ECs), the total number of units sold in January reached 1,872.

Chunduri added that more than 90 percent of the units launched “were in the Outside Central Region (OCR), with the highest median price at S$1,644.”

“Watertown is the most popular development with 78 percent of units sold out of 992 units launched in the month at a median price of S$1,169.”

Info courtesy- PropertyGuru.com.sg

S'PORE AVERAGE HOUSEHOLD INCOME UP 11%

S'PORE AVERAGE HOUSEHOLD INCOME UP 11%

Feb 15, 2012

The average Singaporean household income increased 11 percent to SS$7,040 in 2011, from S$6,340 in 2010, according to latest figures released by the Singapore Department of Statistics.

“Household income from work increased for all income groups, in tandem with strong employment creation in 2011,” it said.

After adjusting the consumer price inflation, average household income from work surged 5.6 percent.

For employed households, which refer to a family with at least one working person, the average income from work per household member also rose to S$1,990 in 2011 from S$1,850 in 2010.

On a total household income basis, the average monthly household income from work grew 22 percent between 2001 and 2011.

Info courtesy- PropertyGuru.com.sg