Property Views

[floppy]

lee_yl:

vinegar:

Concerns abt oversupply


http://www.businesstimes.com.sg/real-estate/en-bloc-sale-sites-could-add-about-9300-homes-to-supply-ura

As of now, there are still many many unsold units from the last property boom. With the ongoing enbloc fever, NEXT WAVE of supply is coming.

I think that’s not taking a holistic view of the situation. People looking for oversupply and prices to come tumbling down would be very disappointed.

https://www.ura.gov.sg/uol/media-room/news/2017/Jun/pr17-42 from URA in Jun 2017 offers some additional insights for the tea leaves reader. Put two and two together:
- supply from GLS isn’t going to improve (6k-ish residential units from the whole of 2017 from the confirmed list only)
- the number of unsold private housing units in the pipeline has declined

Hence, the urgency from developers to head into enbloc sales to boost their land bank. Unlike GLS, developers aren’t pressured to build on their land bank. Thus, hoping for a large quantum of units to be released into the market is wishful thinking as developers hold all the cards here. Releasing a large number of units and reducing the appeal of the property market, thereby lowering prices and profit margin, don’t sound like logical commercial decision.

Lastly, as long as the interest rate remains lower than 2%, there won’t be an influx from multiple homes owners to flood the supply side. Those who can’t hold, already let go. The remaining are people who can still tahan the low interest rate environment. Hence, prices are more likely to be stable or even see a slight appreciation.

[floppy]

TheAnswer:

starlight1968sg:

Everywhere I see flats and condos. So I don't think there is a strong demand. I wonder why build so many units

Most of us dunno what is government’s plan. Such is insider news.

G plans are in the white paper. It has been translated into the URA masterplan, the LTA transport plan etc. It doesn’t need insiders to understand them as long as anyone is keeping abreast of the news (but alas, these are political and government ‘stuff’, so no one reads about them or share them - unless there’s a cat video in there).

starlight1968sg: it’s not what you see but what you don’t see that’s important.
So many HDB? Check each releases, and even SBF. Or just ask Janet for her opinion.
So many condo? Check new releases like Forest Woods, Hundred Palms, Clement Canopy etc. The newest launch is Parc Botannia in Sengkang. Check the prices

[vinegar]

http://www.straitstimes.com/business/property/too-early-to-herald-recovery

[vinegar]

Think there r still mkt fr new launch but might not be fr resale. Hv few friends who work as agents, hv tried to sell or rent their units since last yr. According to them, there r fewer investors.

[Cloud Cloud]

I like what Floppy said cause I am still holding onto one which is going to TOP soon.


Parc Botannia is priced 20 percent higher than its neighbouring site, High Park. So far, no news on its sales status. Anyone seen the development?

[lee_yl]

floppy:

lee_yl:

[quote=\"vinegar\"]Concerns abt oversupply


http://www.businesstimes.com.sg/real-estate/en-bloc-sale-sites-could-add-about-9300-homes-to-supply-ura

As of now, there are still many many unsold units from the last property boom. With the ongoing enbloc fever, NEXT WAVE of supply is coming.

I think that’s not taking a holistic view of the situation. People looking for oversupply and prices to come tumbling down would be very disappointed.

https://www.ura.gov.sg/uol/media-room/news/2017/Jun/pr17-42 from URA in Jun 2017 offers some additional insights for the tea leaves reader. Put two and two together:
- supply from GLS isn’t going to improve (6k-ish residential units from the whole of 2017 from the confirmed list only)
- the number of unsold private housing units in the pipeline has declined

Hence, the urgency from developers to head into enbloc sales to boost their land bank. Unlike GLS, developers aren’t pressured to build on their land bank. Thus, hoping for a large quantum of units to be released into the market is wishful thinking as developers hold all the cards here. Releasing a large number of units and reducing the appeal of the property market, thereby lowering prices and profit margin, don’t sound like logical commercial decision.

Lastly, as long as the interest rate remains lower than 2%, there won’t be an influx from multiple homes owners to flood the supply side. Those who can’t hold, already let go. The remaining are people who can still tahan the low interest rate environment. Hence, prices are more likely to be stable or even see a slight appreciation.[/quote]Floppy, what’s your take on the rental market that continues to head south?

We have seen some, really pathetic. After deducting agent fees, condo maintenance fees etc, maybe left 0-1% return?

[floppy]

lee_yl:

Floppy, what’s your take on the rental market that continues to head south?

We have seen some, really pathetic. After deducting agent fees, condo maintenance fees etc, maybe left 0-1% return?

Rental will continue to head south. Rental market is highly dependent on finding tenants, which is mainly made up of FT in SG.

However, in VUCA market conditions, most company are converting expats to local terms, increasing usage of automation, localizing operations, outsourcing etc. Most of these actions will reduce the number of FT (and workforce in general) and subsequently, demand for short term leases.

[floppy]

Cloud Cloud:

I like what Floppy said cause I am still holding onto one which is going to TOP soon.


Parc Botannia is priced 20 percent higher than its neighbouring site, High Park. So far, no news on its sales status. Anyone seen the development?

Haven’t seen the actual site but I drive pass the showroom everyday Saw what was posted by friends and it looks like another cookie-cutter condo lor. Nonetheless, I think demand will be high despite the jaw dropping prices.

[vinegar]

Take a look at number of unsold units at Interlace, Reflection, Coral, The Trilinq n Leedon Residences. Despite some ads r duplicate, at least average >100 units on sale/rent… I wonder when they r going to sell or rent those units

[floppy]

vinegar:

Take a look at number of unsold units at Interlace, Reflection, Coral, The Trilinq n Leedon Residences. Despite some ads r duplicate, at least average >100 units on sale/rent.. I wonder when they r going to sell or rent those units

The names that you have mentioned, they are not for your everyday folks, including your everyday expats. They are targeting at a segment which won’t move as fast.

The people who own these units aren’t the desperate overstretching Joe. As long as the interest rate doesn’t rise beyond 2%, they can afford to wait for the right price. Despite the 100s of ads, you can hardly find a bargain there