GOOD NEWS- Singapore private home prices fall, developers hit

[The_Republic]

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSSIN38674420081024



Singapore private home prices fall, developers hit


Updates with analyst comment, share prices)
By Kevin Lim


SINGAPORE, Oct 24 (Reuters) - Singapore private home prices fell 2.4 percent in the third quarter, worse than an initial estimate of a 1.8 percent drop as the property market weakened sharply at the end of September.


Rents during the July-September period fell 0.9 percent after gaining 2.5 percent in the three months to June, the government's Urban Redevelopment Authority (URA) said on Friday. Homes in prime areas registered the biggest price decline of 2.7 percent.



"We know the property markets turned so the revised figures were not a huge surprise. It's more than likely the fourth quarter will see a sharper decline," said Song Seng Wun, Singapore-based economist at Malaysian investment bank CIMB.


The fall in Singapore home prices in the three months to September marked the first decline in four years and coincides with the economy's descent into recession during the quarter.


Demand for government-built HDB apartments remained firm during the third quarter as prices gained 4.2 percent, a separate index from the Housing Development Board showed. The increase was, however, slower than the second quarter's 4.5 percent gain.


Shares of Singapore-listed CapitaLand (CATL.SI: Quote (http://www.reuters.com/stocks/quote?symbol=CATL.SI), Profile (http://www.reuters.com/stocks/companyProfile?symbol=CATL.SI), Research (http://www.reuters.com/stocks/researchReports?symbol=CATL.SI), Stock Buzz (http://reuters.socialpicks.com/stock/r/CATL)), Southeast Asia's largest developer, fell further after the data's release, and were down 6.5 percent by 0630 GMT.


City Developments (CTDM.SI: Quote (http://www.reuters.com/stocks/quote?symbol=CTDM.SI), Profile (http://www.reuters.com/stocks/companyProfile?symbol=CTDM.SI), Research (http://www.reuters.com/stocks/researchReports?symbol=CTDM.SI), Stock Buzz (http://reuters.socialpicks.com/stock/r/CTDM)), the region's number two property firm, declined 6.9 percent. Real estate trusts were also hit with Suntec REIT SUNT.SI down 9.5 percent.

URA said its price index for residential property in the city-state stood at 173.3 at the end of September compared with 177.5 at end-June.


Singapore releases advance estimates on property prices shortly after the end of each quarter based primarily on transactions during the first 10 weeks of the period.



The government subsequently issues detailed data for the period that includes price changes by region as well as rental trends. (Editing by Neil Chatterjee)




http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSSIN38674420081024

[The_Republic]

http://forums.hardwarezone.com.sg/showthread.php?t=1570470&page=7

MINISTER Mentor Lee Kuan Yew called for a sense of proportion yesterday, pointing out that the annual wage bill for ministers and all office holders is $46 million - or just 0.022 per cent of Singapore's total economic output.


It was an 'absurdity', he said, for Singaporeans to quarrel over whether ministers collectively should be paid $10 million or $20 million more, when an economy worth $210 billion was at stake

'The cure to all this talk is really a good dose of incompetent government,' he said in his first comments on impending salary increases for ministers and top civil servants. 'You get that alternative and you'll never put Singapore together again.'

Singaporeans' asset values would also disappear, he warned, adding that 'your apartment will be worth a fraction of what it is, your jobs will be in peril, your security will be at risk and our women will become maids in other people's countries'.

He said the present system of benchmarking ministers' pay to top private sector salaries was 'completely above board' and allowed the Government to recruit 'some of the very best' to lead the country

When it was put to him that people hoped for leaders who were willing to make sacrifices and who were not there for the money, he replied that these were 'admirable sentiments'. But he added that 'we live in the real world'.

His bottom line: if the Government could not pay competitive salaries, Singapore would not be able to compete and 'we're not going to live well'.


http://forums.hardwarezone.com.sg/showthread.php?t=1570470&page=7

[tqx]

Woah TR why you post the same link in every thread lol.

Anyway I don't see why this is good news. This is very bad news. Property price drop = less asset value for SGers, people cannot rent our their place, loans default etc.

Also, if developers are hit those who suffer are those construction workers, foreman, engineers, which is bad

[cannotliao]

we going to see local version spore sub prime crisis?

[The_Republic]

Woah TR why you post the same link in every thread lol.

Anyway I don't see why this is good news. This is very bad news. Property price drop = less asset value for SGers, people cannot rent our their place, loans default etc.

Also, if developers are hit those who suffer are those construction workers, foreman, engineers, which is bad

Dont worry, we already handed 'protection money' to government. We already approve their pay increment so those things that MM Lee say above will not happen.


Singaporeans' asset values would also disappear, he warned, adding that 'your apartment will be worth a fraction of what it is, your jobs will be in peril, your security will be at risk and our women will become maids in other people's countries'.

I have not seen Singapore maids yet.:s13:

[nakorius]

Well... our HDB flats have been artificially inflated beyond their real values as well.

High Valuations = Higher Loans required = Higher Stamp Duties (Gahment profits here).

And you must take out a loan from the banks.

The higher the loan = the higher the risk of more people defaulting.

And if this keeps up, we will soon be the ones in a crisis.

But of course HDB will deny such a possibility and everything is in-line with the market blah blah.

Somebody better wake them up.

[fox1]

Woah TR why you post the same link in every thread lol.

Anyway I don't see why this is good news. This is very bad news. Property price drop = less asset value for SGers, people cannot rent our their place, loans default etc.

Also, if developers are hit those who suffer are those construction workers, foreman, engineers, which is bad

Haven't you noticed?
The Republic Obviously Likes Lee
That's why he often quotes him.

Oh yes, HDB prices are really inflated. I wouldn't want to buy one, given a choice.
So buyers go for private properties thinking it's more bang for the buck, I think.
Since they are going to get tied down with property loans for a few score years, why not get tied down in luxury and style?

[lycans]

juz migrate to australia, for the price of a HDB u can get a freehold house with a nice car...

[fox1]

juz migrate to australia, for the price of a HDB u can get a freehold house with a nice car...

Migration is beyond the means of the average Joe.
For the younger ones with qualifications, working overseas may be a possibility.

[The_Davis]

Haven't you noticed?
The Republic Obviously Likes Lee
That's why he often quotes him.

Oh yes, HDB prices are really inflated. I wouldn't want to buy one, given a choice.
So buyers go for private properties thinking it's more bang for the buck, I think.
Since they are going to get tied down with property loans for a few score years, why not get tied down in luxury and style?
likes him in what way ? :s34:

[mizarahi]

Newbie question here.

What if a family lost their jobs and cpf bo lui. Will the banks auction the HDB flat?

[The_Republic]

Time to buy Private Homes :s13:

I thought some political guru once said if we pay him what he wants, our assets and property value will no longer be a fraction of what we paid for.

Is this Mis - Selling too ?? :s13:
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http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_294700.html



Home (http://www.straitstimes.com/) > Breaking News (http://www.straitstimes.com/Breaking%2BNews/Breaking%2BNews.html) > Singapore (http://www.straitstimes.com/Breaking%2BNews/Singapore/Singapore.html) > Story

Oct 25, 2008
Private home prices fall
By Joyce Teo, Property Correspondent

http://www.straitstimes.com/STI/STIMEDIA/common/c.gif http://www.straitstimes.com/STI/STIMEDIA/common/c.gif






PRIVATE home prices in Singapore fell faster than expected in the third quarter as the global financial turmoil weighed heavily on already weakened market sentiment.



The price slide is expected to continue into next year, property consultants said.
But the HDB resale flat market continued to buck the trend, with prices rising 4.2 per cent in the third quarter following a 4.5 per cent rise in the second quarter.
They have now surpassed the peak seen in the fourth quarter of 1996.


But analysts expect this growth trend to slow as buyers turn cautious.
Urban Redevelopment Authority (URA) data yesterday put the private home price dip at 2.4 per cent for the period ended Sept30, the first contraction after 17 straight quarters of growth.


This compares with an initial estimate of a 1.8 per cent drop released by URA earlier this month. In the previous quarter, private home prices rose 0.2 per cent.
The outlook is grim.


Since the end of the third quarter, global markets have tumbled further and Singapore officially entered a technical recession. Buyers expecting a full-blown recession are set to become even more cautious, analysts say.


Colliers International's director for research and advisory, Ms Tay Huey Ying, said the lower-than-expected third-quarter private home price figure indicates that sales recorded in the last two weeks of the quarter were done at lower prices.


The price fall was led by luxury homes, as such properties in choice areas like Orchard Road and Sentosa Cove posted a 2.7 per cent fall after slipping just 0.1 per cent in the previous quarter.



Prices of city-fringe homes dropped 2.4 per cent, compared with a 0.7 per cent rise in the the April-toJune period.


Suburban homes, which showed the strongest growth of 0.9 per cent in the second quarter, fell 1.5 per cent in the third. Landed home prices, which inched up 0.6 per cent in the second quarter, fell 1.9 per cent.


In a reversal from relentless rent increases of recent years, rentals of private homes fell by 0.9 per cent compared with a 2.5 per cent rise in the second quarter. Like home prices, the fall in rents was the first after 17 straight quarters of growth.


Mass-market homes saw a bigger fall of 2.7 per cent in rents, compared with 0.7 per cent for coveted high-end homes and 0.5 per cent for city-fringe homes.
The growing market caution was also reflected in resale and sub-sale deals.


A total of 1,974 resale deals and 462 sub-sales were done in the third quarter, down from 2,291 resale deals and 518 sub-sales in the previous period.


Given the worsening global financial climate, private homes prices are expected to continue slipping. 'The momentum of home sales will likely slow down due to either the increasing difficulty in obtaining loans or buyers' anticipation of further price cuts,' said CBRE Research's executive director Li Hiaw Ho.


In the HDB market, resale transactions rose 4 per cent to 8,110 sales, amid continued buying from permanent residents and Singaporeans upgrading from a smaller flat or downgrading from a private home.



While the sector is still strong, property experts are expecting slower price growth ahead as current resale prices have hit a new peak.



With slower economic growth and possible job losses, buyers are likely to turn more cautious and exercise more prudence by offering less for the flats so as not to overstretch, said ERA Asia-Pacific's associate director Eugene Lim.


On a brighter note, URA revised down its supply figures, dispelling the prospect of a private home oversupply.



Its data also showed that office rents have slipped by 0.8 per cent, compared with 6.3 per cent growth in the second quarter.



Shop rents also dipped 0.6 per cent islandwide in the third quarter, reversing a growth of 5.2 per cent in the second.

Industrial rents rose, but at a slower pace.


joyceteo@sph.com.sg (joyceteo@sph.com.sg)


http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_294700.html

[fbap9467]

Newbie question here.

What if a family lost their jobs and cpf bo lui. Will the banks auction the HDB flat?

Look at your loan document. Until you fully pay up, the first charge goes to the bank, the second goes to CPF Board. You sway sway default, then the bank will sell your house and take the money, the balance goes to CPF, any balance after deducting what u have withdraw from CPF during the payment then return to you. If you have pay a lot using cash (deposit and monthly payment) then u may get some cash back.

[cannotliao]

Newbie question here.

What if a family lost their jobs and cpf bo lui. Will the banks auction the HDB flat?

http://siewkumhong.blogspot.com/2007/05/question-for-written-answer-10-april.html

total 895 HDB flats were repossessed by banks in the 4 years from 2003 to 2006.

worst case scenarios, bank have no mercy and will ask defaulter to move out.
under the great leadership, HDB had pushed the dirty job for the bank to do.

[nakorius]

Well I think I saw on the ST forums about home loans rising to 6.6 billion(?) and there was a warning about rising debt, why wouldn't there be any?

HDB 99 year leasehold flats ARE overpriced and inflated way beyond it's worth.

In the past, NEW HDB flats were really sold cheap and it never did affect the resale market as claimed by HDB. They come out in the article using Sengkang and Punggol as cheap examples, but for crying out loud, even at THOSE prices, it is priced incredulously for such locations. And if the flats there can be priced at that amount with obvious profits for HDB, why can't other new flats be priced equally the same? If 200+K gives them a ton of profit, what would a 400k flat bring them? 600k flat?

We always call for transparency and yet HDB is not transparent at all.

They have refused all calls for more transparency.

If you have nothing to hide, why are you afraid of people knowing? Are they afraid that people would find out that they have earned billions if not trillions from selling HDB flats?

And will the people in HDB be held responsible if a sub-prime crisis occurs? Will they be charged in Court at all?

I don't think there will be any inquiry held into them at all. They will not face hearings like the Lehmann Brother CEO or even Alan Greenspan.

HDB and SP need moral leadership.

They seem to have forgotten that they are here for the people.

[The_Republic]

Your assets are well protected.