Feb 08, 2012 | Comments 0
With analysts predicting a 10 per cent price fall in the real estate market, Singapore’s most prominent residential property developers are looking for any advice they can get.
According to the president of the Real Estate Developer’s Association of Singapore (REDAS), Wong Heang Fine, said this week “We are cautious. On the market going forward, it all depends on how the global economy goes in the next eleven months. So it’s really anybody’s guess.”
The heavy-heartedness appears to be directed on the home values stagnation. The Urban Redevelopment Authority (URA) latest figures depict how the price increase pertaining to private residential properties abated for the ninth sequential quarter at the end of 2011, which also showed how rental rates have become sluggish.
Despite expectations of positive January sales, REDAS has said that distortion factors from a handful of major project launches has contributed to the figures. Fine added that pertaining to the January numbers, they should be viewed “in perspective … (they will have been) generated by the new launches of two or three projects. The numbers themselves do not really reflect the entire state of the market. ”
Knight Frank director of consultancy and research, Png Poh Soon, commented that “against a good take-up and when sales volume start increasing, will there be a sixth round of cooling measures? I think the additional buyer’s stamp duty had some impact on buyer sentiment. Already there are some analysts and generally the market have been saying that there will knee-jerk effect on the residential sector.”
These perturbations were highlighted this week when the National University of Singapore released new data that depicted how the curbing of the housing market via new measures could be seen through the decline of home prices in December in retrospect to November.
A .8 per cent decline of prices of nonpublic non-landed residential properties occurred last month.
In response Singapore attempted by cooling the city-state’s housing market this past December by announcing to foreigners in that when they decide to purchase a private home, they will be responsible for paying an additional stamp duty on par with ten per cent of their estimated property value.