hdb

Relief of Cooling Measures Hopes Rejuvenated

Will the property cooling measures be facilitated in 2017?

Following the US Federal Reserve indicated a more rapid pace of interest rate increases in 2017 hopes of finding the authorities tweak the property are rekindled, reported The Business Times.Anticipating economic headwinds that are more powerful, some industry players think that when the economy is in a desperate state, it is better to facilitate the measures than attempt to restore the marketplace.

Nevertheless, it might not be too late to unwind the policies specified the cycle of Fed rate increases has just began, and central banks have taken a wait-and-see strategy.In addition, the private residential marketplace will not appear to need any propping up while seeing a recovery in sales impetus as it read more reasonable cost declines from the preceding year.

Resale quantities rose by 27 percent during the very first three quarters than in the exact same period this past year, as a result of narrowing of the price expectancy difference between sellers and buyers. The development in trades is, actually, setting the stage for a sustainable restoration within the home sector.

The Aftermath Results of Past Cooling Measures

As revealed in the lively sales recorded in some project starts this year, especially those offering many smaller units with palatable quantums the restraints brought forth by the TDSR hasn’t dented investment hunger for residential properties.

A study of project starts with at least 100 home units suggests the average take up rate (based on all units) was 41 percent in the very first month of launching, an advancement from 25 percent for project starts in 2015.Also, the supply pipeline of home units to be finished has steadily fell from the summit in Q1 2013. With the more new condo like Inz Residence EC coming in 2017, the needs for some amendments to MSR is also good for individuals who keen in purchasing an EC.

Nevertheless, some indications of tensions have emerged. The MAS disclosed the share of mortgage loans more than 30 days in arrears increased to almost one percent in September, while non-performing home loans increased to 0.4 percent. Even with the uncertain economic environment, perspectives on the property stay mixed.

OCBC Bank analyst Eli Lee, for example, considers that there is considerable extent to unwind the measures.

Since 1985, he noted the authorities had loosened its position in three cases (1997, 2001 and 2008) after property costs dropped by 8.3 percent to 16.4 percent. In Q3 2016, private home costs were 10.8 percent below their peak in Q3 2013.

To support the prime residential section, others consider the Added Buyer’s Stamp Duty (ABSD) on home acquisitions by foreigners could be tweaked without changing the mass market. This line of discussion is, nevertheless, misguided.

hdb

HDB November sales exercise – launches 10,118 flats

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New HDB flats accounted for over half of the units found for sale.

The Housing and Development Board (HDB) started 10,118 flats for sale on Tuesday (22 November) in its biggest sales activity in 2016.

Build-To-Order (BTO) flats accounted for over half of the units started for sale, with 5,110 units spread across nine projects. Of these, three projects are positioned in the non-mature estate of Punggol, while the other six are within the mature estates of Bedok, Bidadari and Kallang Whampoa.

Meanwhile, the remaining 5,008 equilibrium flats are spread across 11 non-mature and 14 mature estates.

Prices begin from $75,000, excluding grants, for a 2-room Flexi unit in a non-mature town to $525,000 for an executive flat in a mature town.

The Housing Board noted that the launching brings the overall BTO and balance flats supply this year to 17,891 and 10,178 units, respectively. This works out to an entire flat supply of 28,069 units.

Lim Yong Hock, Essential Executive Officer at PropNex Realty, anticipates flats in mature estates to receive a higher subscription rate of between four to eight times, while those non-mature estates will see a subscription rate of one to three times. Also, year 2017 will see more good private condo launching by prestigious developers like the one near Tanah Merah MRT, Grandeur Park Residences

“HDB BTO entire subscription rates for this year have dropped from 4.7 in February to 3.7 in May and 2.3 in August,” he noted.

“We forecast that this last BTO launching for the year will see an average rate of three to five times due to more matured estates released this time round. ”

The newest activity will close on 28.

The next BTO launch will likely be held in February 2017, with about 4,100 flats offered in Clementi, Tampines, Punggol and Woodlands.

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Until 2017, Fat Hope of Getting Any Relief of Cooling Measures!

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The cooling measures are here to curb the property prices as the past few years, the property prices have been on the increasing side. This definitely dampen the property buying and investing mood in Singapore. Let’s read how the the experts have to say about the ease of cooling measures.

Singapore house prices have been dropping over the past 11 straight quarters, its longest losing streak.

Research Head at JLL Southeast Asia, Dr Chua Yang Liang, said the possible retrieval range will probably be driven mainly by a pick-up in the prime residential marketplace, and in line with GDP increase.

“(Singapore’s home costs) are close to a trough with economic conditions steady and physical marketplace states balancing …

Meanwhile, increase in demand within the mass market section will continue to be slow, with sluggish cost adjustments contemplating supply overhang and the policy measures. Chua also anticipates the residential rental market to stay soft.

The government has been unwilling to revoke the property cooling measures, despite continued calls from property developers and realtors for the measures to be facilitated.

Singapore saw private home costs soar by more than 60 percent following the 2009 International Financial Catastrophe to peak in Q3 2013.

However, property specialists will not anticipate the property cooling measures to be facilitated soon.

I believe the first will be 2017 because we’ven’t quite achieved the double digit cost correction that they need,” said Head, Selena Ling, Treasury Research and Strategy, OCBC.

DId you know Straits Mansions is the next upcoming landed that is going to launch soon?

URA flash estimates released this month show the private residential property price index fell by 0.4 percent in Q2, a little improvement from the 0.7 percent decline shown in the first quarter.

To conclude, personally we feel that the cooling measures only affect the private sectors especially the resale market. New launch projects are still seeing healthy take up rate, like the Gem Residences which took a 51% sold out during the first day of launch!