outlook

[outlook]

JL LaSalle says Singapore's prime property market to ease further

By Ng Baoying, Channel NewsAsia | Posted: 17 July 2008 1817 hrs


SINGAPORE: Rents in Singapore's prime residential sector are expected to ease further. Consultancy firm Jones Lang LaSalle has projected a 4.5 per cent contraction for the whole year. The sector has already weakened by two per cent year to date.

In its mid-year review on the Singapore property market, Jones Lang LaSalle also noted an easing in the resale prices of luxury projects in the prime districts.

However, it said that mass market homes saw healthy growth of some three per cent.

High rentals are forcing expatriates on lower housing budgets to move out of the prime market in Singapore and this is behind softening rents this year. This is expected to persist into 2009, when more housing units will likely enter the market.

An anticipated 15,000 units are expected to be completed by the end of 2009, compared to an average take up of 6,800 units per annum.

According to Jones Lang LaSalle, what may help prop up rentals is demand. It noted that companies in Singapore are still expanding, going by the take-up in office space.

Christopher Fossick, Managing Director, Singapore & Southeast Asia, Jones Lang LaSelle, said: "There is still an influx of people coming here to work and there is a strong expatriate demand in all business sectors."

Meanwhile, in the resale market, the average prices of units in the prime districts eased by some 4.9 per cent in the first half of this year.

However, this may change. Collective sales have been a key source of land for new projects in the prime areas and with these drying up, home prices may be pushed upwards.

Mr Fossick continued: "There's been almost no residential collective sales this year. Volume has gone down 97 per cent by our records in the first half versus the first half in 2007. In 12 to 24 months’ time, we're going to see that impacting the market. There's also far less supply from luxury collective sales sources."

Over in the mass market, prices have been holding up, climbing by some three per cent in the first half of 2008 due to demand from dislodged collective sale owners and those upgrading from government flats. - CNA/vm
     


 

[long downturn]

World economy in 'tough spot'
Davies in Washington
July 18, 2008

THE world economy is facing a longer, deeper slowdown than forecast three months ago, the International Monetary Fund has warned, and will also be plagued by rising inflation due to the cost of energy and food.

The IMF released its latest economic outlook yesterday, describing the world economy as being in "a tough spot". It has revised its April forecasts to reflect its view that the slowdown will be more prolonged.

"The slowdown in global growth, which started last summer, is expected to continue through the second half of 2008, with only a gradual recovery during 2009," the IMF said.

[Getting worse]

When the players with a vested interest in properties say things are getting worse (e.g. agencies like Jones Lang), then it means the shite is really moving towards the ceiling.

[The global]

slowdown will take it's toll. Real estate will also be affected. The 2007 bubble in the S'pore property sector will be pricked.

Take your time and you will "huat huat".

[Positive abstract]

"According to Jones Lang LaSalle, what may help prop up rentals is demand. It noted that companies in Singapore are still expanding, going by the take-up in office space.

Christopher Fossick, Managing Director, Singapore & Southeast Asia, Jones Lang LaSelle, said: "There is still an influx of people coming here to work and there is a strong expatriate demand in all business sectors.""

Add to that the newcomers for the IR related activities.

[Rentals are]

falling and will fall even more when new stock comes on stream. Prices of residential property will continue to slide within the next 1 to 3 years as new units and condos gets completed. There will be a massive over supply. Tone of head honchos in property sector are even guarded.

[Is it be true?]

falling and will fall even more when new stock comes on stream. Prices of residential property will continue to slide within the next 1 to 3 years as new units and condos gets completed. There will be a massive over supply. Tone of head honchos in property sector are even guarded.

Mass market rising by 3-4% and prime correcting by ~4% as reported by the TV news in 1H.

[Wa the]

same person is out to TCSS. Whatever? Prices are coming off. Be patient. Prices are sliding. Rentals too are falling.

[Very Patient]

I will wait, even if it takes 10 years for prices to bottom if the market falls. If  prices rise, I will wait 5 years for it to peak and then another 10 years for it to fall back to maybe the current level. In the meantime, my children has grown up and left home to start their own family and I have paid for the house of my landlord which I rent all these years. A home must be look at in absolute $ terms.

[Buy low]

sell high. Be patient. 2007 was peak for prices. Data speaks. Don't be a fool and rush in, when prices are falling. Prices are not going up anytime soon. With inflation, interest rates will rise in coming years. The acceleration rate in 2007 tells you that it was a bubble, which is now deflating.

Buy low sell high. Dont buy high and hope to sell higher (for investors). Save money buy lower, as prices will come off (for those who need roof over heads.)

[where did you...]

sell high. Be patient. 2007 was peak for prices. Data speaks. Don't be a fool and rush in, when prices are falling. Prices are not going up anytime soon. With inflation, interest rates will rise in coming years. The acceleration rate in 2007 tells you that it was a bubble, which is now deflating.

Buy low sell high. Dont buy high and hope to sell higher (for investors). Save money buy lower, as prices will come off (for those who need roof over heads.)

...go to school, Disneyland with Mickey Mouse and chums.  Buy low, sell high.  Thank you so much, wish we had all thought of that before.

[That low]

sell high. Be patient. 2007 was peak for prices. Data speaks. Don't be a fool and rush in, when prices are falling. Prices are not going up anytime soon. With inflation, interest rates will rise in coming years. The acceleration rate in 2007 tells you that it was a bubble, which is now deflating.

Buy low sell high. Dont buy high and hope to sell higher (for investors). Save money buy lower, as prices will come off (for those who need roof over heads.)

...go to school, Disneyland with Mickey Mouse and chums.  Buy low, sell high.  Thank you so much, wish we had all thought of that before.

was somebody's high. I will wait for at least 10 years whether prices will go up or down.

[Your LL]

sell high. Be patient. 2007 was peak for prices. Data speaks. Don't be a fool and rush in, when prices are falling. Prices are not going up anytime soon. With inflation, interest rates will rise in coming years. The acceleration rate in 2007 tells you that it was a bubble, which is now deflating.

Buy low sell high. Dont buy high and hope to sell higher (for investors). Save money buy lower, as prices will come off (for those who need roof over heads.)

...go to school, Disneyland with Mickey Mouse and chums.  Buy low, sell high.  Thank you so much, wish we had all thought of that before.

was somebody's high. I will wait for at least 10 years whether prices will go up or down.

Keep on waiting for a long long time. I need you to buy my property for me since you don't want to buy one for yourself the next 10 to 15 years.

[On Dope]

Stop hallucinating on a sunday afternoon. With rental yields dropping to 3% and trending downwards, you have fun paying the difference in mortgage and rentals. And when the interest rates trend upwards later this year, I'll come by and drop a few coins in your begging bowl.

Keep on waiting for a long long time. I need you to buy my property for me since you don't want to buy one for yourself the next 10 to 15 years.

[Not really]

Stop hallucinating on a sunday afternoon. With rental yields dropping to 3% and trending downwards, you have fun paying the difference in mortgage and rentals. And when the interest rates trend upwards later this year, I'll come by and drop a few coins in your begging bowl.

Keep on waiting for a long long time. I need you to buy my property for me since you don't want to buy one for yourself the next 10 to 15 years.

Better than giving 3% to 5% to your LL to pay his mortgage (he is likely to have bought his property when prices were much lower and is getting positive cash flow from the rent you are paying, this could be your position in the future? But your thoughts are not venturing there..) and not getting the house after 15 years and you OWN your own HOME. BTW, your car is depreciating by 10% value (at least) a year (if you own one). After all prices could go up (say, if you are willing to buy in the mass market).

Sure it a very difficult decision in these times but 801 households made a buy call in June based on their needs and perceptions.