Respite for prices of private apartments - AsiaOne

SINGAPORE - Prices of completed private apartments were unchanged in June and last month although this could represent a temporary lull before they drop further.

These properties are still about 3 per cent lower than a year ago and 9.8 per cent below their peak in July 2013, according to flash estimates for the NUS Singapore Residential Price Index (SRPI) out yesterday.

There were only marginal changes to the SRPI's indexes for central units, non-central units and small units, noted Mr Nicholas Mak, SLP International executive director. "Overall, the SRPI appears to be moving sideways in July... (But) for the whole of 2015, the overall SRPI is expected to drop by 3 per cent to 4 per cent year on year."

Similar month-on-month anomalies have been seen before, he added. Over the past 12 months, the SRPI registered a month-on-month increase three times, only to keep declining in the subsequent month.

"If the overall SRPI were to enjoy a sustainable increase, both its (indexes) for central and non-central units need to rise together." The SRPI for central units rose 0.2 per cent last month, after rising 0.6 per cent in June.

Prices for these units have fallen the furthest so far at 4.2 per cent from a year back and down an estimated 12.3 per cent from their peak in May 2013.

The recent price increase could be from an uptick in buying from bargain hunters, experts noted.

Prices of completed private apartments in the non-central region were down 0.2 per cent last month after falling 0.7 per cent in June. They are down 1.9 per cent year on year and have fallen an estimated 8.6 per cent from their peak in April 2013.

The segment has been affected by the weak leasing market for suburban properties, as would-be tenants take advantage of depressed rents to move to more central locations, said ERA Realty key executive officer Eugene Lim. Many condo completions are also in the suburbs.

For example, a two-bedroom older condo unit in Woodlands is being rented out at less than $2,000 a month - similar to rents for a three-room Housing Board flat in the suburbs, he said.

Prices of small units were up an estimated 0.3 per cent last month, after falling 0.9 per cent in June.

They are down 2.9 per cent year on year and have fallen about 9.5 per cent from an August 2013 peak.

"Shoebox apartment rents and prices will be on the general downward trend, as the number of such completed properties grows, especially in suburban areas," said R'ST Research director Ong Kah Seng.

wrennie@sph.com.sg

This article was first published on August 29, 2015.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Saturday, Aug 29, 2015

Rennie Whang

The Straits Times

Source: AsiaOne

NDR 2015: SIT to get a new centralised campus - Channel NewsAsia

The Singapore Institute of Technology's new centralised campus in Punggol will be integrated with a JTC-built creative industry cluster said Prime Minister Lee Hsien Loong.

SINGAPORE: The Singapore Institute of Technology (SIT) will get a new centralised campus located in Punggol, announced Prime Minister Lee Hsien Loong at the National Day Rally on Sunday (Aug 23).

Currently, SIT - Singapore's fifth autonomous university which provides applied-learning pathways for students - has a main campus at Dover Road, with branch campuses in all the polytechnics. "We will bring all the branch campuses together," said Mr Lee.

Across the road from the new campus, JTC will build a creative industry cluster which SIT will be integrated with. Students will be able to "easily go from classroom to workplace and apply what they learn", said Mr Lee. At the same time companies can cross the road to approach SIT with any problems that need solving.

SIT will also be integrated into Punggol Downtown and HDB's upcoming Northshore District - the first new public housing estate to test-bed smart technologies. The community will share SIT's facilities, such as its classrooms, workshops and multi-purpose hall.

"So we have Punggol 21 plus, and with SIT it will now be Punggol 21 A-Plus!" Mr Lee said.

SIT was established in 2009. It awards its own degrees as well as degrees in collaboration with overseas partners such as the Culinary Institute of America and DigiPen Institute of Technology. It is expanding its intakes, to 2,000 students this year and 3,500 by 2020.

- CNA/yv

• POSTED: 23 Aug 2015 20:53
 
• UPDATED: 24 Aug 2015 01:27
• Source: Channel NewsAsia

Proximity Housing Grant - HDB

Announced by PM during the National Day Rally 2015, the Proximity Housing Grant (PHG) further helps extended families to buy a resale flat to live together or close to their families for mutual care and support. Singles can also enjoy the PHG when they buy a resale flat with their parents.

Eligibility Conditions

Criteria	Details
Citizenship	You are a Singapore Citizen. Your family nucleus must comprise at least another Singapore Permanent Resident or a Singapore Citizen. At least one of your parents or married child must be a Singapore Permanent Resident or a Singapore Citizen.
Age	You must be aged 21 years or above.
Family Nucleus	You are applying with your: spouse and children (if any), or fiancé/fiancée (must be able to produce your marriage certificate, latest by the date of completion of the flat purchase), or children under your legal custody, care and control (if widowed or divorced)
Household Status	You have not taken the PHG previously
Proximity	Family Your parents/ married child are: - living with you in the resale flat - owner-occupants of property in the same town or within 2km Single Your parents/ married child are: - living with you in the resale flat
Remaining Lease of Flat  (applicable to resale applications received on or after 1 July 2013)	30 years or more Visit the Centralised Map Services to find out flat lease details.

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Type of Grant and Grant Amount

Type of Grant	Amount
Family	$20,000
Singles buying resale flat with parents	$10,000

Back to top

Effective Date

Resale applications received from 24 August 2015 onwards

Back to top

Last Updated on 24 Aug 2015

Source: HDB

Visit: http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatProximityHousingGrant?OpenDocument

S$20,000 housing grant for those buying resale flats near or with families - Channel NewsAsia

Under the new Proximity Housing Grant, families looking to buy a resale flat to live near or with their parents or children will get an additional S$20,000 to offset costs, announced the MND and HDB on Monday. 

SINGAPORE: Families looking to buy a resale flat to live with or near their parents or children will get an additional S$20,000 to offset costs, under the new Proximity Housing Grant (PHG) aimed at getting extended families to live near each other for mutual support.

This is on top of the maximum S$30,000 CPF Housing Grant first-timer families get when they purchase a resale flat, and double the S$10,000 given when they purchase a unit near their parents or children's home.

The qualifying conditions are also more liberal, according to a press release issued by the Ministry of National Development (MND) and Housing and Development Board (HDB) on Monday (Aug 24).

Under the new changes, which kick in on Monday, all Singaporeans - including owners of private property and recipients of earlier housing subsidies - will also qualify for the grant, although current private property owners will have to dispose of their private property within six months after the purchase of an HDB flat. There will also be no household income ceiling to qualify for the PHG.

However, all Singaporeans can receive the PHG only once. Additionally, grant recipients and their parents or married child must live with or in close proximity to each other for at least five years.

The PHG was first announced by Prime Minister Lee Hsien Loong at the National Day Rally on Sunday.

"Now, people live in nuclear families. But many couples still want to stay with or near their parents, or parents often would want to stay with or near their married children. So that the grandparents can enjoy their grandkids, and the adult children can help look after the old folks as they age," Mr Lee said in his speech.

The MND and HDB said the new PHG is a result of a series of Housing Conversations on getting families to live closer together organised by the MND in 2014.

The Government is also rolling out more measures to help singles buy an HDB flat. Eligible singles will enjoy a higher PHG of S$10,000, up from the current S$5,000, if they buy a resale flat with their parents.

Additionally, under the Special Housing Grant (singles), the income ceiling for singles buying a 2-room BTO will be raised from S$3,250 to S$4,240, while the maximum grant amount will also be doubled from S$10,000 to S$20,000.

"I COULDN'T CARE LESS WHEN IS GE": KHAW

National Development Minister Khaw Boon Wan said after the briefing on Monday that the slew of housing-related announcements was not related to the coming General Election (GE). 

Mr Khaw said he had "very good reasons" to push for home ownership, as it is an important part of the governance of Singapore.

Mr Khaw told reporters that since he took over the ministry more than four years ago, "we have been making adjustments, practically every year". But as the adjustments this time round are "very substantial", he discussed with HDB and decided to delay the upcoming BTO to September so more buyers could benefit. 

"Has (the announcements) got to do with GE? I could not care less when is GE," the minister said. "But problems need to be resolved and when I am ready, I will come out with the scheme. We announce it, we discuss it with Singaporeans first and once I am confident that those are practical schemes, I will launch it as soon as we can do so."

"I'd rather delay the BTO so that the new benefits could apply to the new BTO buyers. So that's how I approach the problems," he added.

Mr Khaw also said that he hopes that the changes will encourage more people to get married and form families.

"The key point is get married, then you form a family unit, and it's HDB's job to make sure you will have your first BTO flat," said Mr Khaw. "Don't worry. So please get married, and when I deliver my promise, please deliver yours."  

- CNA/av/ek

• By Eileen Poh, Channel NewsAsia
• POSTED: 24 Aug 2015 13:16
 
• UPDATED: 24 Aug 2015 22:29
• Source: Channel NewsAsia

Housing market much cooler: Khaw - AsiaOne

The hot housing market that was such an issue in the 2011 election is much cooler now, said National Development Minister Khaw Boon Wan, expressing relief that the measures put in place have paid off.

"What I shared at my first meeting with my MND (Ministry of National Development) colleagues was, let us try hard to achieve a soft landing of the housing market within four years," he said yesterday at an event to introduce the People's Action Party's election line-up for Sembawang GRC.

"Two years ago when prices began to peak and then began to come down, believe me, I was one of the most relieved."

Mr Khaw had taken over the difficult portfolio after the previous election. In the last few years, the Government rolled out a slew of measures to cool the property market, including the additional levy and loan curbs such as the Additional Buyer's Stamp Duty and the Total Debt Servicing Ratio Framework.

It also ramped up the supply of new HDB flats in recent years.

However, Mr Khaw said that the Government would continue to monitor the situation and external environment closely as a soft landing "may suddenly become a hard landing".

There may also be a different housing election issue brewing.

Mr Khaw was asked yesterday if the defects in new flats might crop up as an issue in the coming general election.

Gripes over poor finishes and fittings at some Design, Build and Sell Scheme (DBSS) flats, such as Trivelis in Clementi and Centrale 8 in Tampines, which were built by private-sector developers, have made headlines this year.

Replying in Mandarin, Mr Khaw said that the issue of defects was a perennial one.

Recent complaints may give the impression that the quality of homes has deteriorated but, Mr Khaw said, this is not the case.

Citing scores under the Construction Quality Assessment System, Mr Khaw said the Housing Board's average score had been improving. It scored close to 90 last year, outperforming even some private homes built by developers.

And he stressed that the Government would continue to assist home owners, even if the flats were built by private developers.

"What is important is that builders and contractors are responsible, and fix areas that are unsatisfactory... You don't have to worry - as long as your demand is reasonable, we will help you."

This article was first published on Aug 15, 2015.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Sunday, Aug 16, 2015

Wong Siew Ying

The Straits Times

Source: AsiaOne

Lien's grandson pays $21m for Good Class Bungalow - AsiaOne

A grandson of the late banker and philanthropist, Mr Lien Ying Chow, has bought a Good Class Bungalow (GCB) in Chee Hoon Avenue after taking part in a tender.

Mr Michael Lien and his wife paid $21.39 million or about $1,197 per sq ft (psf) for the 17,868 sq ft freehold plot, according to caveats lodged.

Mr Lien is executive chairman of Wah Hin & Co, founder of Leap Philanthropy and a board director of Temasek Holdings.

The freehold bungalow, in a cul-de-sac off Adam Road, was put up for sale by CBRE at an indicative value of $25 million.

The detached house, built in the 1960s and renovated in 2005, is partly two-storey and partly one.

The property's built-up area is about 3,300 sq ft, excluding the car porch and rear terrace, with two bedrooms and a study room. It was believed to be a trustee's sale.

In another deal late last month, a Queen Astrid Park GCB was sold for $32 million or about $1,169 psf - on a 27,373 sq ft freehold plot.

The buyer was Liu and Lee Investment, a company led by the low-key property investor Liu Shek Yuen.

The Hong Kong-born Dr Liu is said to have global investing experience and had, in 2001, led the purchase of a 201,782 sq ft freehold Jervois Road GCB site from HSBC.

Singapore Christie's Homes managing director Samuel Eyo said buyers, especially end users, have been returning to the GCB market. Some are newly minted Singapore citizens, he said. "Deals have been done recently and I expect more to come."

This article was first published on Aug 15, 2015.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Saturday, Aug 15, 2015

Rennie Whang

The Straits Times

Source: AsiaOne

Bumper crop of shoebox units to come in 2017 - AsiaOne

High Park Residences in Sengkang has enjoyed roaring sales in recent weeks, but investors in its smaller units may have trouble leasing them out.

Many shoebox units are coming onstream, peaking around 2017, according to data from R'ST Research. Most will be in District 19 - Hougang, Punggol and Sengkang - with at least 700 of them set for completion over this period, based on caveats lodged.

Leasing demand is untested but supply is rising and fewer foreigners here may be able to afford them.

"Increasingly, many (overseas nationals) can't even afford renting a single shoebox unit, but would instead rent a room in an apartment... Rents will be under further pressure," said Savills Singapore research head Alan Cheong.

In District 19, projects with shoebox units completed last year and in the first half of this year include A Treasure Trove in Punggol Walk and Bartley Residences in Lorong How Sun. 

Others due this year and next year include The Promenade@Pelikat in Hougang, Parc Centros in Punggol Central and River Isles in Edgedale Plains. Later projects include Jewel@Buangkok and La Fiesta in Sengkang Square.

Other shoebox hot spots are District 14, with Eunos, Geylang, Kembangan and Paya Lebar, with at least 527 units; and District 12, including Balestier, Moulmein, Novena and Toa Payoh, with at least 383 units on the way.

In the suburbs, District 17, which takes in Changi, Loyang and Pasir Ris, will have at least 224 units, while District 22, covering Boon Lay, Jurong and Tuas, will have at least 151 units, said R'ST Research.

Overall, shoebox units account for an estimated 18 per cent of new sales for projects completing in the second half of this year and next year, according to SRX Property.

Prices of some newly-completed shoebox units in the Guillemard to Changi Road area in District 14 and 15 were about $1,350 per sq ft in 2013, rising to over $1,400 psf for new completions late last year and this year, said Savills' Mr Cheong.

But rents for a 41 sq m shoebox unit have fallen from $2,600 a month in 2013 to about $2,000 to $2,200 now, taking the gross yield from about 5.2 per cent at end-2013 to about 4.1 per cent now.

Most owners have holding power, preferring to keep a unit rather than sell at a low price, so yields have further room to fall to the mid-3 per cent level for shoebox units in more accessible areas like District 14, with rents below $2,500 a month. "Once we venture into the new developments in the outlying HDB estates, the market is untested. There, yields may tend closer to 3 per cent or even dip below that," Mr Cheong said.

Overall, prices of completed small units have fallen about 10 per cent from their last peak in August 2013, according to flash estimates for the NUS Singapore Residential Price Index. 

They slipped an estimated 1.1 per cent in June from May. But R'ST Research director Ong Kah Seng said while prices will keep falling owing to rising supply, the shoebox apartment remains relevant. "These tend to be occupied by younger tenants or owners, who will bring energy to the development and area - especially important for newer residential areas like Bartley, or those undergoing rejuvenation like Hillview and Lakeside."

Still, for those on a low budget, suburban shoebox units are not a persuasive proposition, said Century 21 chief executive Ku Swee Yong. One with about $2,000 a month can opt for much larger three-room flats in city fringe areas like Ang Mo Kio, Geylang or Toa Payoh, according to HDB's second-quarter housing data.

Mr Cheong noted that many people possess the liquidity or equity to stomach the total debt-servicing ratio, and even the 50 per cent loan-to-value ratio for a second housing loan. "Even if rents collapse, households feel that real estate is something tangible and are more interested in deploying their capital, rather than looking at fundamentals... (Yields) will be challenged in some areas."

This article was first published on August 13, 2015.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Thursday, Aug 13, 2015

Rennie Whang

The Straits Times

Source: AsiaOne

A Wrong Turn in the HDB Property Market - SRX

The HDB resale market took a turn for the worse in July by dropping 0.5%.  According to SRX Property, the SRX Property Index declined from 135.7 to 134.9.  This came after three straight months at 135.7.

 

Some market observers were hoping on hope that the latest plateau of 135.7 was a turning point in which prices would start to inch up.  Not the case as July proved.  Now all one can hope for in August is a return to 135.7, settling for the fact that stagnation is better than decline.  

Observations:

1. HDB resale prices dropped 0.5% in July. HDB resale prices slipped in July 2015 compared to June 2015.  Resale prices of HDB 3 Room Flats remained flat while prices of HDB 4, 5 Room and Executive Flats went down by 0.7%, 1.2% and 0.9% respectively.

According to the SRX Property Price Index for HDB Resale:

• Year-on-year, prices have dropped 4.3% from July 2014;
• Prices have declined 11.4% since the peak in April 2013;
• Price change in June 2015 has been revised from a 0.1% increase to no change.

According to the SRX Property Price Sub-Indices for HDB Resale:

• In July 2015, HDB resale prices decreased by 0.1% in mature estates and 0.9% in non-mature estates;
• Year-on-year, prices in mature estates have declined 2.6% from July 2014;
• Year-on-year, prices in non-mature estates have declined 5.5% from July 2014;

2. Resale volume decreased. According to HDB resale data compiled by SRX Property, 1,552 HDB resale flats were sold in July 2015, a 9.2% decrease from 1,709 transacted units in June 2015.

• Year-on-year, resale volume increased by 15.6% compared with 1,342 units resold in July 2014;
• Resale volume is down 57.5% compared to its peak of 3,649 units in May 2010.

3. Overall median Transaction Over X-Value (T-O-X) is negative in July. According to SRX Property, HDB resale market sentiment is NEGATIVE 1000 in July 2015. The median T-O-X for HDB measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.

• Overall Median T-O-X was NEGATIVE $1000 in July 2015, down from POSITIVE $1,000 in JUNE 2015;
• Median T-O-X for HDB 3 Room, 4 Room and Executive flats in July 2015 saw NEGATIVE $1,000, NEGATIVE $1000, and NEGATIVE $10,500 respectively. 5 Room flats posted a POSTIVE $1900 median T-O-X.

4. Bukit Merah posted the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in July 2015, Bukit Merah reported the highest median TOX of $6,000 followed by $4,000 in Ang Mo Kio.

This means that majority of the buyers in these towns has purchased units above the computer-generated market value.

5. Among relatively active towns, Pasir Ris posted the most Negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in July 2015, the lowest median T-O-X were in Pasir Ris and Bukit Panjang at NEGATIVE $11,000 and NEGATIVE $6,700 respectively. 

This means that majority of the buyers in these towns has purchased units below the computer-generated market value.

Source: SRX (6 Aug 2015)

HDB resale prices drop for the first time in 4 months - AsiaOne

SINGAPORE - HDB resale prices dropped 0.5 per cent in July, as it last month compared to June 2015, reported SRX Property in its HDB resale flash report .

Resale prices of HDB 3 Room Flats remained flat while prices of HDB 4, 5 Room and Executive Flats went down by 0.7 per cent, 1.2 per cent and 0.9 per cent respectively.

According to the SRX Property Price Index for HDB Resale. prices have dropped 4.3 per cent from July 2014, year-on-year, and prices have declined 11.4 per cent since the peak in April 2013. Price change in June 2015 has been revised from a 0.1 per cent increase to no change.

In July 2015, HDB resale prices decreased by 0.1 per cent in mature estates and 0.9 per cent in non-mature estates. Year-on-year, prices in mature estates have declined 2.6 per cent from July 2014, while prices in non-mature estates have declined 5.5 per cent from July 2014, according to the SRX Property Price Sub-Indices for HDB Resale.

Resale volume has decreased. 1,552 HDB resale flats were sold in July 2015, a 9.2 per cent decrease from 1,709 transacted units in June 2015.

Overall Median T-O-X was NEGATIVE $1000 in July 2015, down from POSITIVE $1,000 in JUNE 2015. Median T-O-X for HDB 3-Room, 4-Room and Executive flats in July 2015 saw NEGATIVE $1,000, NEGATIVE $1000, and NEGATIVE $10,500 respectively. 5-Room flats posted a POSTIVE $1900 median T-O-X.

Bukit Merah posted the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in July 2015, Bukit Merah reported the highest median TOX of $6,000 followed by $4,000 in Ang Mo Kio. This means that majority of the buyers in these towns has purchased units above the computer-generated market value.

Among relatively active towns, Pasir Ris posted the most Negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in July 2015, the lowest median T-O-X were in Pasir Ris and Bukit Panjang at NEGATIVE $11,000 and NEGATIVE $6,700 respectively.

This means that majority of the buyers in these towns has purchased units below the computer generated market value.

- See more at: http://news.asiaone.com/news/business/hdb-resale-prices-drop-first-time-4-months#sthash.WcxLICN0.dpuf

Source: AsiaOne (6 Aug 2015)

HDB resale market: On the path to recovery - Propertyguru

Prices continue to fall but less sharply than in 2014, latest data shows.

HDB resale prices, the government implemented  cooling measures to cool down prices. The HDB Resale Price Index (RPI) began its decline in Q2 2013 (refer to Chart 1), and continued to reflect reduced transaction volumes and prices each quarter since.

In the most recent numbers provided by HDB, the effect of the cooling measures continues to be felt. This year, prices continued to fall one percent quarter-onquarter (Q-o-Q) in Q1 2015, followed by a more gentle 0.4 percent dip in Q2 2015. However, this decline is less sharp than 2014’s, when prices fell nearly three percent over the same period. This suggests that prices are stabilizing, and some market watchers are predicting an eventual plateauing of HDB prices.

Ong Kah Seng, Director of R’ST Research, recalls that the initial months following the implementation of cooling measures — such as limiting loans by capping the Mortgage Servicing Ratio at 30 percent — buyers were unable to buy property beyond their lowered financial limits. This led to buyers either biding their time for better offers to come along, or lowering their expectations and going for smaller, cheaper units. The fall in transaction volumes led prices to correct downwards to their current point.

Sizes of flats matter

While prices did dip across the board, we saw different degrees of decline amongst the different flat types. In general, smaller flats saw larger price percentage declines compared to larger units over the same period of time. Prices of four-room flats fell 5.3 percent year-on-year, while larger five-room flats saw a smaller decline of 4.3 percent over the same period (see Chart 2). This is likely due to HDB upgraders (of which four-room flat owners are a larger proportion) selling their units, increasing market supply and further suppressing prices.

Owners of five-room or executive flats, in comparison, have less incentive to upgrade as they would be giving up their more spacious units at depressed market prices and still be looking at hefty premiums for condo units at equivalent sizes.

Transactions set to stage a comeback in a buyers’ market

With the slowdown in resale prices stabilizing, analysts are predicting that momentum will pick up in the latter half of 2015. Already, in H1 2015, 7.2 percent more resale units were sold compared to the same period last year, with levels expected to remain buoyant moving forward. This suggests that buyers have noticed prices coming down sufficiently to fit into their budgets, and have begun to return to the market.

This is an extremely price-sensitive segment however. Slight differences between the asking price of the owner selling the flat, and the valuation price, which is determined by an independent third party, could determine whether the transaction goes through or not.

Buyers are also savvy enough to realize that a lot of condominiums would be completing construction and owners would need to offload their current HDB flats before they can move into their new units. They would therefore hold out and negotiate for even lower prices, as they are in a stronger bargaining position.

Ong mentions that this is a common occurrence. “We have arrived at a point where buyers feel that prices have become more affordable and acceptable, so they are more willing to make a purchase. Looking at existing conditions, improved demand comes mainly from opportunistic buyers who will take advantage of the situation and not accede to high asking prices by sellers. In some cases, eradication of cash-over-valuation (COV) also helps to enhance liquidity, and they end up with more spare cash for renovations, especially so for older flats which require a major overhaul.”

Eugene Lim, Key Executive Officer of ERA Realty Network, agrees. “As far as HDB prices are concerned, prices have stopped increasing, spurring buyers’ confidence in the resale market. In fact, for the months of April and May, we noticed that the number of transacted units are one of the highest in recent times.” If these conditions were to sustain, Lim predicts that the market will see between 18,000 and 20,000 units being transacted in 2015, an improvement from the 17,000 flats in 2014 that exchanged hands.

A further price correction is inevitable

While there is general optimism that the volume of transactions will pick up, prices are not expected to rise. HDB resale prices are expected to remain flat for the remainder of 2015, with the chance of a one to three percent continued decline, bringing the total drop in resale flat prices to between three and five percent for 2015.

Mohamed Ismail, CEO of PropNex Realty, suggests that property prices will continue to moderate. “Looking at public housing for the second half of the year, we can anticipate prices will drop by 2.0
to 2.5 percent. Although we are seeing more buying activity in recent months, an immediate rebound is not likely to happen, even moving ahead into 2016.” The reason for this, Ismail suggests, is due to demand and supply. “With the volume of BTO flats that will be completed in 2015 and 2016, there will be a substantial number of second-timers who will have to sell their current flats within six months, adding to the current supply of resale flats already available.”

by Adam Rahman

Source: PropertyGuru (31 Jul 2015)