Housing price will drop 10-15% in the next 12 months

[DayDreaming]

Re: Housing price will drop 10-15% in the next 12 months

My pay kenna folded into half

this is bad.. pay fold into half cos u bought more cars & house? lolx..

 

[martmode8850]

Re: Housing price will drop 10-15% in the next 12 months

unless Spore undergoes massive retrenchments. if no one loses their job, they should be able to continue paying off the loan. unless they are using rent to cover the loan part...

 

[wt_know]

Re: Housing price will drop 10-15% in the next 12 months

+1 .... agent says unless public housing (hdb/dbss/ec) drop 20%
if EC is selling at smelly smelly $700K you think private condo will be sold at $700k too?
at least at 30% premium la ... you tan ku ku for cheap private property .... everything is benchmark la ... just like used car is price in benchmarking new car $90k coe

those units that drop 10-15% were price artificially high ... ie: was $1.5M and then repriced to $1.2M (still very steep profit margin)

unless Spore undergoes massive retrenchments. if no one loses their job, they should be able to continue paying off the loan. unless they are using rent to cover the loan part...

 

[ac323]

Re: Housing price will drop 10-15% in the next 12 months

The Housing and Development Board's (HDB) Resale Price Index (RPI) in the second quarter of this year is 194, an increase of 1.3 per cent over the previous quarter when it was 191.6.

According to data released by HDB, there were 7,000 resale transactions in the second quarter, an increase of 19 per cent compared to the first quarter when there were 5,900 cases.

Also released - data on Median Resale prices, Median Cash-Over-Valuation (COV), Median Subletting Rents and the number of subletting approvals.

The highest median resale price for a 3-room flat was S$440,000 in Central Town. For 4-room flat, it was S$638,000 in Queenstown. S$750,500 was the highest median resale price for a 5-room flat in Bukit Merah Town. As for an executive flat, it was S$680,000 in Serangoon Town.

The highest median Cash-Over-Valuation (COV) for a 3-room flat was S$35,000 in Central Town.

For 4-room flat, it was S$48,500 in Toa Payoh Town. The highest median COV for a 5-room flat was S$54,000 in Geylang, while it was S$55,000 for an executive flat in Hougang.

The highest median subletting rent for a 3-room flat was S$2,300 in Central Town and for a 4-room flat it was S$2,950 in Queenstown. As for a 5-room flat it was S$3,200 in Bukit Merah Town and for an executive flat it was S$2,800 in Hougang.

Subletting transactions rose by about 3 per cent from 6,700 cases in the first quarter to 6,900 cases in the second quarter.

The total number of HDB flats approved for subletting rose to 41,800 units in the second quarter 2012, compared to 41,200 units in the first quarter.

In July 2012, HDB will offer 4,200 new Build-To-Order flats in seven projects. These will be in Bukit Merah, Choa Chu Kang, Clementi, Geylang, and Punggol.

HDB said a project in Bedok originally planned for launch in July 2012 has been postponed to finalise the design for launch. This site will be launched later this year.

HDB added that it is on track to launch 25,000 flats this year.

 

[OptimusWKY]

Re: Housing price will drop 10-15% in the next 12 months

+1 .... agent says unless public housing (hdb/dbss/ec) drop 20%
if EC is selling at smelly smelly $700K you think private condo will be sold at $700k too?
at least at 30% premium la ... you tan ku ku for cheap private property .... everything is benchmark la ... just like used car is price in benchmarking new car $90k coe

those units that drop 10-15% were price artificially high ... ie: was $1.5M and then repriced to $1.2M (still very steep profit margin)

+1 .... Now banks allow 50 years loan some more leh. Buy lah. :woottt:

 

[C3P0]

Re: Housing price will drop 10-15% in the next 12 months

Property goes up but Robot's swee swee 19" rims price is going down. Prospective buyers MTL, PM me for details.

 

[C3P0]

Re: Housing price will drop 10-15% in the next 12 months

Sorry I have to OT because this UBS prediction thingy is just crap.

I bet he can't even predict next month's housing index.

 

[ac323]

Re: Housing price will drop 10-15% in the next 12 months

Property goes up but Robot's swee swee 19" rims price is going down. Prospective buyers MTL, PM me for details.

Please do not hi-jack this thread..........

















cheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeers

 

[jawzsg]

Re: Housing price will drop 10-15% in the next 12 months

I was a bit confused till I realise it was mentioning UBS and not USB..

 

[Doodles]

Re: Housing price will drop 10-15% in the next 12 months

Guys got a question.. If you have a property generating yield of 3% pa and recieve an offer to sell at profit of 20%, period of holding the property is bout 2 yrs.

Would you sell? Thks

 

[jeronlee]

Re: Housing price will drop 10-15% in the next 12 months

Guys got a question.. If you have a property generating yield of 3% pa and recieve an offer to sell at profit of 20%, period of holding the property is bout 2 yrs.

Would you sell? Thks

Few key considerations:
1) Is the 3% sustainable? i.e. do you foresee the rental to decline or increase upon expiry of existing lease. 3% is nothing fantastic so if it's not sustainable, take profit.

2) Any upside for capital appreciation for the property e.g. MRT, malls, international schs, commercial activities etc. If nothing to look forward, take profit.

3) Do you have an alternative to park your funds after cashing out e.g. REITs, bonds etc. If the alternative is able to generate at least 3% or ideally >5% to hedge against inflation? If not, take profit.

 

[Niva]

Re: Housing price will drop 10-15% in the next 12 months

as of now...it seems like compressed yields of sub 2-3% are here to stay for the foreseeable future...with interest rates likely to remain low till 2014, taking cue from Fed, its a case of excess liquidity seeking a haven from low govt bond yields. But prices appeared to have peaked and any capital appreciation will be limited at best. Rents are already showing signs of weakness and will probably stay flat. To me, unless you see a big correction in prices 10-15%, yields are not going be attractive. That said, 10-15% correction, u will probably find keen buyers and hence support the slide.

Interestingly, developers have offering guaranteed 4-5% yields in their new products. (not sure how those schemes work or if a scam in anyway). Reflections have transactions 1600-1700psf region recently. Great deals. Keen buyers. Now hovering 1800psf and above for unsold units. Dont have the full list to compare but it appears to have come down the prices? thought the project was averaging 2000psf onwards.

 

[wt_know]

Re: Housing price will drop 10-15% in the next 12 months

good time to buy now?
i'm a long term investor ... but if price move 10-15% in 6 months time ... i may cut loss

 

[kenntona]

Re: Housing price will drop 10-15% in the next 12 months

good time to buy now?
i'm a long term investor ... but if price move 10-15% in 3-6 months time ... i may cut loss

Wahahahahahahahaha, you sound like the typical local stock investors....

"Eh I hold long term one, but if down 5% in a week I will cut loss...."

 

[wt_know]

Re: Housing price will drop 10-15% in the next 12 months

i'm like the 99% buyers who buy 99LH condo claiming for own stay forever ever
then 1 year later price drop ... cry papa cry mama ... lolz

similarly, saw the interview in cna asking one resident ... do you think it's good for resident here to build 'integrated services for old folk, childcare, recreation, etc' ...
of course good la ... then property around here price will shoot up

Wahahahahahahahaha, you sound like the typical local stock investors....

"Eh I hold long term one, but if down 5% in a week I will cut loss...."

 

[jeronlee]

Re: Housing price will drop 10-15% in the next 12 months

good time to buy now?
i'm a long term investor ... but if price move 10-15% in 6 months time ... i may cut loss

bro, no more cut loss strategy for local residential property lah. if price drop by 10-15% in 6 months coupled with seller's stamp duty of 16% + initial 3% stamp duty + min 1% seller commission, you're realising a loss of up to 35% or $350K per $1M in 6 months. that's excluding bank pre-payment penalty and legal clawback. cannot anyhow exit else confirm pants (or even balls) will drop!