Sub-sales are now a thing of the past.
Eight rounds of cooling measures have done a good job of curbing speculative property buying in Singapore, according to this chart from Credit Suisse.
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Sub-sales are now a thing of the past.
Eight rounds of cooling measures have done a good job of curbing speculative property buying in Singapore, according to this chart from Credit Suisse.
The government has imposed a series of macro-prudential measures since 2009 to cool the housing market, taking aim at foreign demand and speculation, as property prices have risen close to 60% after the global financial crisis as confidence returned to the market. These measures, which include the implementation of higher transaction costs (e.g. Additional Buyers’ Stamp Duty) and the introduction of the Total Debt Servicing Ratio (TDSR) framework, have helped to rein in investment demand for residential properties from both foreign and local buyers. Coupled with a slowing rental market and mounting supplies of residential properties, the Singapore property market remains muted. Here’s the million-dollar question – will we be seeing a quick recovery anytime soon?
SINGAPORE - Private property prices in Singapore could fall a further 10 per cent from current levels over the next two years, French bank BNP Paribas said in a research report on Monday.
Although prices have fallen 5.5 per cent from their mid-2013 peak, BNP Paribas said that a "closer look at valuation metrics and underlying drivers" shows the market has further to correct before a bottom can be called.
Trend seen gaining momentum due to rising supply of homes, weaker rental market
[SINGAPORE] The number of properties up for auction by mortgagees (or lenders) as well as their share of the number of properties going under the hammer has hit a quarterly high in Q2.
Auctioneers say this reflects the difficulty that financially stretched borrowers face in securing buyers for their properties since the implementation of the total debt servicing ratio (TDSR) framework a year ago. Because of this, financial institutions have had to repossess more properties and put them up for auction.
SINGAPORE: The Government on Tuesday (June 10) announced the launch of nine confirmed list and 14 reserve list sites under the second half of the Government Land Sales (GLS) Programme.
These 23 sites can collectively yield up to 10,200 private residential units - including 1,500 Executive Condominium (EC) units - and 352,000 square metres (sq m) of gross floor area of commercial space, the Ministry of National Development (MND) said in a release.
The U.S. Federal Reserve's massive bond-buying program to stimulate the U.S. economy has long sparked fears that it was inflating property prices. But now the Fed has started to wind down its purchases, concerns are rising that "tapering" could generate new risks for global property markets.
The Fed's $85 billion of bond purchases every month had pumped extra liquidity into the world's financial system. All these extra funds encouraged investors to pile into riskier assets – such as property.
This in turn contributed to dramatic house price rises across a number of emerging markets. In 2013, Indonesian house prices rose by 13.5 percent, Turkey's increased by 12.5 percent and Brazil's were 11.9 percent higher, according to global property consultancy Knight Frank's Global House Price Index.
Suffice to say, the numerous property cooling regulations imposed by MND, URA, MAS, IRAS have done much to curb the speculative fever and more.
Background of Singapore's housing woes.
When applied to real estate, the principle of supply and demand refers to the ability of people to pay for housing coupled with the relative scarcity of real estate. For any type of good or service to have value in any marketplace, it must possess four characteristics: demand, utility, transferability and scarcity. Demand is a need or desire coupled with the purchasing power to fill it, whereas utility is the ability of a good or service to fill that need. Scarcity means there must be a short supply relative to demand. Air, for example, has utility and is in demand, but it is not scarce. Finally, a good or service must be transferable to have value to anyone other than the person possessing it.