WAKE UP !! Home prices could dip 20% by end-2015 - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > General Discussions

General Discussions Say your hello's and discuss anything under the sun




WAKE UP !! Home prices could dip 20% by end-2015

Citibank Lazada Credit Card, Free $150 Lazada Vouchers* - Click to Apply Now
Reply
 
Thread Tools
  #1 (permalink)  
Old 05-10-2013, 06:09 PM
Junior Member
 
Join Date: Sep 2013
Posts: 2
blackice is on a distinguished road
Default WAKE UP !! Home prices could dip 20% by end-2015

Home prices could dip 20% by end-2015

Quote from straits times.....


Analysts point to oversupply, loan curbs and rising interest rates

Home prices could fall by as much as 20 per cent by the end of 2015 in the wake of oversupply, tougher loan rules and rising interest rates, say analysts.

One warning comes from a Barclays report which noted that risks from a number of directions are putting pressure on residential values and hitting demand at new launches. "We expect developer sales to fall by 30 per cent in 2013, as the latest sets of measures bite," it said.

In a separate report, CIMB said that a large supply of new homes set to hit the market could cause prices to correct by 10 to 15 per cent by 2015.

Affordability has become more of an issue since new loan curbs were introduced in June. These cap a borrower's total monthly debt payments at no more than 60 per cent of his gross monthly income.

Developers sold 11,174 new units in the eight months to Aug 31 - 27 per cent down on the same period a year ago, said Barclays in its report out last week.

Transactions could fall to a monthly average of 1,000 to 1,100 homes by the end of this year, bringing the total number of sales expected this year to 15,500 - 30 per cent below the 22,179 recorded a year ago.

The impending supply of new homes could also place downward pressure on home prices, added CIMB analyst Donald Chua.

Barclays estimates that this "total housing supply could average 40,000 units per annum, and peak at 47,000 in 2015... significantly above the historical average annual supply of 12,300".

Its analyst, Ms Tricia Song, said a supply glut would cause vacancy rates of private homes to rise from 5.6 per cent this year to 9.9 per cent in 2016.

"Historically, when vacancy hits 8 per cent, rents and prices tend to start declining," said Ms Song.

Barclays added that several rounds of cooling measures introduced by the Government have also caused demand in the resale market to slow down.

Since the additional buyer's stamp duty was introduced in December 2011, a measure that affected permanent residents and foreigners buying property, resales have slumped 54 per cent to around 2,000 units per quarter, it estimated.

This weakening in the secondary market means home prices could slide further if interest rates spike and many owners start trying to sell up at the same time, said Ms Song.

Property consultants largely agreed with the warnings contained in the two reports, adding to The Straits Times that prices could fall by as much as 20 per cent in the next two years in the event of an economic recession.

International Property Advisor chief executive Ku Swee Yong added that if property prices dropped by 5 to 8 per cent over two quarters, the Government could remove some buying restrictions or introduce market stimulus.

Third-quarter flash estimates of private home prices released on Tuesday showed a 0.4 per cent rise.




Home prices could dip 20% by end-2015

Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Check property prices Salary.sg Investments and Net Worth 3 22-11-2012 10:49 AM
Property Prices Have Crashed (see graph) Salary.sg Investments and Net Worth 142 22-11-2012 10:26 AM
Property Prices Out of Whack Salary.sg Investments and Net Worth 8 18-07-2009 11:37 PM
Property Prices Continue To Rise Salary.sg Investments and Net Worth 5 06-04-2008 02:20 AM
Private home prices up to pre-crisis levels Salary.sg Investments and Net Worth 0 03-07-2007 02:22 PM

» 30 Recent Threads
Anyone jobless for a long time... ( 1 2 3... Last Page)
2,891 Replies, 1,079,840 Views
MFA- Foreign Service... ( 1 2)
13 Replies, 564 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,178 Replies, 963,663 Views
Career as Teacher ( 1 2 3... Last Page)
2,649 Replies, 1,599,170 Views
Compare civil service salary ( 1 2 3... Last Page)
10,074 Replies, 5,566,363 Views
Roles in accenture singapore ( 1 2 3... Last Page)
374 Replies, 249,510 Views
What's the graduate officer... ( 1 2 3... Last Page)
50 Replies, 12,084 Views
Starting Pay for CS/Ministries... ( 1 2 3... Last Page)
95 Replies, 17,994 Views
Lawyer Salary ( 1 2 3... Last Page)
7,443 Replies, 2,581,215 Views
Whats your net worth ( 1 2 3... Last Page)
2,726 Replies, 795,333 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
147 Replies, 73,711 Views
DBS Management Associate Program... ( 1 2 3... Last Page)
1,637 Replies, 264,491 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,285 Replies, 904,303 Views
ST Electronics ( 1 2 3... Last Page)
660 Replies, 208,708 Views
anyone working at NCS ? ( 1 2 3... Last Page)
384 Replies, 285,465 Views
Feeling helpless, need advice...
7 Replies, 399 Views
Tax ( 1 2)
11 Replies, 3,391 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,286 Replies, 1,900,158 Views
Officer Role in Bank of Tokyo -... ( 1 2 3... Last Page)
185 Replies, 144,608 Views
[advice] Recruitment agency... ( 1 2)
13 Replies, 1,724 Views
Any Kaplan students here can land... ( 1 2)
13 Replies, 733 Views
Self-Employed in SG by Overseas...
2 Replies, 181 Views
Queries about Cpib application ( 1 2 3... Last Page)
1,082 Replies, 497,509 Views
Sign On After 30? ( 1 2 3... Last Page)
32 Replies, 2,603 Views
Job Search hacks ( 1 2 3)
23 Replies, 1,788 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
3,065 Replies, 1,283,600 Views
Citibank Singapore ( 1 2 3... Last Page)
107 Replies, 49,012 Views
FEE PE Exam ( Electrical )
2 Replies, 1,810 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 05:33 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2