Private home prices, rents post jumps, HDB flat prices dip
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GOOD news rolled up on two fronts for the owners of private property yesterday - average prices are well up and rents have soared.
The strong sales and surging prices of posh developments ignited the market in the July-September period and drove overall prices up 2.7 per cent.
This is the biggest quarterly rise since 2000 and is well up on the 1.8-per-cent jump in the second quarter. It also confirms the recent upward trend.
Rents of private homes staged an even more spectacular recovery: Up 5 per cent in the quarter, more than double the 2.1 per cent rise in the April-June period.
'The data showed that market fundamentals are looking positive. Mass market prices should start to climb across the board in 2007,' said Mr Ku Swee Yong, a director at property consultancy Savills Singapore.
But the upswing in the private sector did not extend to Housing Board flats. Prices for the quarter dipped 0.2 per cent in this stubbornly lacklustre segment.
The figures - released by the Urban Redevelopment Authority (URA) - show prices for private property are now almost 12 per cent higher than the rock-bottom days of early 2004, but still 31 per cent below the mid-1990s peak.
While the overall average has been trending up by slightly below 2 per cent in the first two quarters of the year, the luxury apartment segment has been generating astonishing gains and is fast closing in on 1990s levels.
Prices rocketed 21 per cent in the first nine months of this year, far exceeding the 7 per cent growth chalked up for the whole of last year, said Ms Tay Huey Ying, director of research and consultancy at Colliers International.
The average price of luxury apartments was $1,760 psf in the third quarter, just a shade off 1997Â’s peak of $1,778 psf, said Ms Tay.
Prices are forecast to climb by a further 5 per cent by the end of the year, and put on a further 10 to 15 per cent next year.
This will in turn drag up the overall price average. 'We expect the URA residential property price index to chalk up a further 2 to 3 per cent growth in the final quarter and 10 to 12 per cent in 2007,' said Ms Tay.
Private property rents, which had been on life-support for several years, are suddenly perking up and look in good health.
'Rentals have caught up with the previous peak in 2000 and will provide very good support for the continued price rise,' said Mr Ku.
Limited supply of prime, large rental homes - many of these are in properties earmarked for collective sales - could be partly behind the rental surge, said Mr Ku.
The 5 per cent rise in the September quarter should keep rental yields at about 3 per cent for freehold homes.
URA figures also point to a thriving office market, with vacancies falling from 12.3 per cent to 10.5 per cent, a level not seen since early 2001.
Supply is getting tighter, so rents will likely rise further over the next 12 months, said consultancy CB Richard Ellis.
But the HDB market has stayed trapped in the doldrums since anti-cashback measures kicked in from April last year.
But Mr Eugene Lim, ERA SingaporeÂ’s assistant vice-president, said: 'The third quarter decrease is very marginal... What is important is that we are continuing to see consistent and healthy resale volumes.'
[email protected] -
why did hdb prices dip?
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Only Private ppty in town area are making $, many FT buy mah, poor Singaporean cannot compete with that kind of price tag.
Report say "The Sail" is making $300k each unit, but there is only 90units only. -
the rich gets richer, and the poor gets poorer.
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Ya gahmen gets richer, people get poorer.Originally posted by dragg:the rich gets richer, and the poor gets poorer. -
spot on.Originally posted by dragg:the rich gets richer, and the poor gets poorer.
this is the phenomena that will clearly divide the `haves' and `have nots' amongst sgporeans in the near future, inadvertantly created no less by the ruling party. for me, it started wif their `oversight' of `stop at 2' campaign tt created a whole new issue we are grappling now, the one outcome of that is needed now to take in foreign talents to plug the so-called gaps and keep SG competitive.
of cos, when FT start taking the `operational jobs' here, from sweeper's job to waiting for tables to sales to entry level executive level, these group of sgporeans are nudge out of the salary equation becos these FTs will work for less (what the heck, the pay is still multiple times of that in their ctries of origin). if u dun want to compete, u will be branded as inflexible, unwilling to consider jobs here in SG where there are many `vacancies' as the gahmen put it. some are forced to take them but for lesser pay....so, is it any wonder that the buying power of the heartlanders also drop when it comes to buying flats? coupled with hdb's boo boo of over capacity where new flats are now going for less, you get the picture of these people's continued struggle.
on the other side of the spectrum, for the mid-mgmt and above jobs, the FTs are driving the salary up. sgporeans who are lucky to `cross that bridge' already will too ride the wave, and hence enjoy better renumerations and better quality of lifestyle....
hence the rich gets richer, driving property price of pte housing up while heartlanders who continues to grapples with their survival and continues to be in the doldrums....the uncertainty caused many to stay put and their hdb resale prices, which many overpaid for it in the last 10 years or so; are stuck in the rut.
this is not hard to deduce. whether the men in whites accept this reality or not is another issue altogether...my take is this issue will `explode' in their face if not managed well and now... -
Govt also human beings wah.....you think the govt could resist from greed and $$$$$? NO!!! or otherwise, they wouldn't have drawn that kind of ridiculous salaries....not only that...when come to donations.. I never heard anyone of them donated....or maybe once a super multi-million dollars ex-........p ....m...don't know what fark..lah...donated 5K loh...
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Why HDB falts dip?Originally posted by dragg:GOOD news rolled up on two fronts for the owners of private property yesterday - average prices are well up and rents have soared.
The strong sales and surging prices of posh developments ignited the market in the July-September period and drove overall prices up 2.7 per cent.
This is the biggest quarterly rise since 2000 and is well up on the 1.8-per-cent jump in the second quarter. It also confirms the recent upward trend.
Rents of private homes staged an even more spectacular recovery: Up 5 per cent in the quarter, more than double the 2.1 per cent rise in the April-June period.
'The data showed that market fundamentals are looking positive. Mass market prices should start to climb across the board in 2007,' said Mr Ku Swee Yong, a director at property consultancy Savills Singapore.
But the upswing in the private sector did not extend to Housing Board flats. Prices for the quarter dipped 0.2 per cent in this stubbornly lacklustre segment.
The figures - released by the Urban Redevelopment Authority (URA) - show prices for private property are now almost 12 per cent higher than the rock-bottom days of early 2004, but still 31 per cent below the mid-1990s peak.
While the overall average has been trending up by slightly below 2 per cent in the first two quarters of the year, the luxury apartment segment has been generating astonishing gains and is fast closing in on 1990s levels.
Prices rocketed 21 per cent in the first nine months of this year, far exceeding the 7 per cent growth chalked up for the whole of last year, said Ms Tay Huey Ying, director of research and consultancy at Colliers International.
The average price of luxury apartments was $1,760 psf in the third quarter, just a shade off 1997Â’s peak of $1,778 psf, said Ms Tay.
Prices are forecast to climb by a further 5 per cent by the end of the year, and put on a further 10 to 15 per cent next year.
This will in turn drag up the overall price average. 'We expect the URA residential property price index to chalk up a further 2 to 3 per cent growth in the final quarter and 10 to 12 per cent in 2007,' said Ms Tay.
Private property rents, which had been on life-support for several years, are suddenly perking up and look in good health.
'Rentals have caught up with the previous peak in 2000 and will provide very good support for the continued price rise,' said Mr Ku.
Limited supply of prime, large rental homes - many of these are in properties earmarked for collective sales - could be partly behind the rental surge, said Mr Ku.
The 5 per cent rise in the September quarter should keep rental yields at about 3 per cent for freehold homes.
URA figures also point to a thriving office market, with vacancies falling from 12.3 per cent to 10.5 per cent, a level not seen since early 2001.
Supply is getting tighter, so rents will likely rise further over the next 12 months, said consultancy CB Richard Ellis.
But the HDB market has stayed trapped in the doldrums since anti-cashback measures kicked in from April last year.
But Mr Eugene Lim, ERA SingaporeÂ’s assistant vice-president, said: 'The third quarter decrease is very marginal... What is important is that we are continuing to see consistent and healthy resale volumes.'
[email protected]
Basically, our HDB falts were all over priced leow...simple logic.
Cost to built average per unit 70K - 100K including infrastructures, water, power supply,sewerage, plumbling & sanitary.
Re-sale is obivously over priced!!!
As a pure citizen, born here, serve NS here and contribute to society...yet there's no free space for me to stand here.............
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Why HDB price dip?
Because those who can afford it will buy a private rather than a 99-years leasehold; especially when the difference is not much. -
everybody is rich to buy private...
Originally posted by dragg:why did hdb prices dip? -
so our govt arent bullshi TTing when they say the economy is good.
it is good for those up there but not for those who 'owns' hdb flats. -
HDB flats price dip due to the fact that gahmen has introduced a lot of penalties in buying/selling resale and yet prices of new flats continue to climb. Look at the way they bend the rules when they launched the privately built one in Tampines. In short, they don't care if you can't sell after you buy. If you can't afford your home, then dowgrade to a one room flat which I think they are thinking of that right now. We are going backwards instead of upgrading.
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But if HDB price don't dip then those really poor ones can't even afford HDB flats no? Private housing for rich people, so if private housing price increases, they are still trading within rich circle and its just one rich man earning money from another rich man no?Originally posted by dragg:why did hdb prices dip?
Alternatively, if HDB flat's price increases and private housing's price falls, will the poor be happy and the rich be sad? No really what, cause the poors have to spend more to buy HDB and the rich can afford to buy a few more private housing. -
Good what? What are you complaining about? Cheaper HDB flats for Singaporeans...
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Yay.
The rich get richer; and the poor become not-so-poor. -
I dont think so.
Cannot conclude that since price of private homes are rising and HDB homes are flat, then rich is richer and poor is poorer.
Let us consider a few things.
First, HDB is designed to be anti-speculation. Meanwhile private homes and private apartments are destination of hot money as well as investments.
As you know in mid 90s the prices were higher than now in 2006. Can you conclude that the rich are 30% poorer now than in mid 90s, like the article says about the house price?
It is merely a function of differential products.
It's not so good to measure wealth gap.
The private homes are more prone for investments/ speculation, as well as for expatriate residence.
During 1997/1998 crisis, many economies in the region are affected and Singapore private homes prices were affected too.
SARS also have effect.
Now if there is some rise in the price, we must be careful not to draw too much conclusion. It is a bounce from a steep fall from the go-go years in mid 90s, difficult 1997/ 1998, difficult early 2000s and also SARS.
HDB on the other hand, I bet the prices were more calm compared to private homes. HDB is mass marketed, and more importantly it's controlled by a government.
Private homes are more high end niche, more elastic, plus speculative. If it shows more + or - swing numbers, we cannot say the wealth gap is widening or narrowing. -
Buy pte. when economy is no good cos price increase faster than HDB.
Furthermore 99-yr. HDB flats will depreciate, once over 20 yrs. cannot take bank loan.
Ya, we seem to be downgrading- the new flats are getting smaller & smaller -
Flats have to become smaller and smaller as time goes by.Originally posted by gerrykoh:Buy pte. when economy is no good cos price increase faster than HDB.
Furthermore 99-yr. HDB flats will depreciate, once over 20 yrs. cannot take bank loan.
Ya, we seem to be downgrading- the new flats are getting smaller & smaller
Otherwise how to accomodate the increase in population to 6 or 8 million in the next few years?
If everything goes to plan, we will have the title of country with the densest population per square km in the world.
Or have we already achieved that?
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Paiseh so many people say buy private but according to my understanding there are many types of land leases even for private. 99, 999(?) and freehold.
By the way, when some pple here advocate buying private cos the diff is small, are they referring to private 99? Cos if that is the case, it will also depreciate with age quickly.