It looks like Singapore faces another two months of declining prices in residential property with the sentiments of the market remaining muted.
According to some new and recent research provided by the real estate firm Knight Frank, 2015’s first 3 months witnessed a total of 1,311 transactions of new units in the private residential sector. This makes this quarter the lowest in volume since Sol Acres EC 2008’s 4th quarter when a total of 706 new unites were sold.
Declining Property Prices Sol Acres EC
Looking at the overall picture, a fall in the price of private homes has occurred for six consecutive quarters (quarter on quarter), with a drop of 1% in 2015’s 1st quarter. The agency has stated that it is expected that there will be a further decline in prices between 3% and 4% during the entirety of 2015.
1,189 new units in the private residential sector were launched by developers in 2015’s 1st quarter. This represents a quarter on quarter decrease of 25.3%. New sales corresponded with this with a 4.7% quarter on quarter drop to 1,311 Sol Acres EC units for 2015’s 1st quarter.
The island wide drop per quarter, with regard to the launch of new units, has bee attributed mainly to the Core Central Region. The CCR witnessed a significant quarter on quarter drop of 98.2% to 17 units. The quarterly decrease in new sales island wide seems to be more noticeable in the Central Core region as well, with a drop of 82.9% to 80 units for the number of sold new units quarter on quarter for Sol Acres EC.
New Sol Acres EC in Choa Chu Kang
With expected hikes in rates and cooling measures put in place by the government, its no surprise that the housing market is feeling quite weighted down. According to Executive Director and Head Residential Services for Knight Frank’s Singapore branch, Tay Kah Poh has pointed out that a pattern has also appeared with most new unit launches, where we have seen a flurry of activity and sales that was then followed by a complete standstill until the next new units coming out on the market on Sol Acres EC.
If we go by the analysis done on a grouping of Knight Franks private residential properties, it seems the mass market and high end property prices are continuing to weaken in 2015’s 1st quarter. Meanwhile, there has been a slight rebound in prices recorded for the mid tier sector of the market. A decline of 1.1% quarter on quarter has been seen in average prices of property for the mass market sector during 2015’s 1st quarter to 1,003 per square foot. This has marked a decline for the 3rd consecutive quarter. This type of downward trend in prices come as a result of a large amount of unsold stock in the mass market sector along with a continued weakening in the Housing and Development Board resale market that has been having an affect on the demand from up-graders for housing that is private Sol Acres EC.
Cooling measures for Executive Condominiums
In comparison, high end home average prices saw a drop on a quarterly basis with 2015’s 1st quarter recording a 0.7% quarter on quarter dip to $2,091 per square foot. The agency has pointed out that, sue to fears of seeing further declines in Sol Acres EC prices and strict loaning curbs continuing to be implemented, home owners who own high end property have been urged to lower their expectations regarding selling prices if they wish to successfully sell their units.
In opposition to this is a mid tier market performance record showing a fair amount of resilience, having average pricing of $1,546 per square foot for 2015’s 1st quarter. This shows a slight 0.1% increase quarter on quarter. It also abates the previous quarters average price decline. Mid tier housing still remains an option that is well sought out due to the proximity to the centre of the city and location, and they are more than likely to be considered as a value purchase by any potential home buyer who are looking to move forward.
Sol Acres New EC MCL Land
In 2015’s 1st quarter we saw a moderate 3.5% of gross yields for properties in the mid tier market as a result of a drop in average rentals and a rise in the average of capital value. Mass market property gross yields crept up to around 3.7% in the 1st quarter of this year. This makes it the 2nd consecutive quarter to see a rise in Sol Acres EC vacancy rates.
Knight Franks adds that, in a more positive light, a rise of 3.1% in 2015’s 1st quarter was seen in the luxury segment of the market of gross yields for market investors dealing in high end properties. This represents a rebound of noticeable importance considering its 2 consecutive quarters of declining yields.
Sol Acres EC Choa Chu Kang
Sitting beside the sentiment of a muted market, it is expected that developers with introduce some attractive product positioning and moderate their prices for their newest launches, according to the agency’s most recent research reports.
Probable hikes in interest rates could have an impact on the perception of home buyers, along with global economic growth that can potentially be slower. This may all have an impact on the Singapore market while it raises a feeling of uncertainty in market demand and economic prospects.
In light of these opposing forces it is expected that rents and housing prices in the private residential sector will continue dropping for the remainder of 2015.
New EC in Choa Chu Kang EC
In an overall summary of the agency’s report, it looks like the private housing market is still feeling pulled down by the expected hike in rates and continued cooling measures by the government. The majority of new launches has fallen into a pattern of a strong flurry of buying at the start that is then followed by a complete standstill until one of the following occurs; a new launch nearby, a refreshed marketing campaign and new incentives being offered by Sol Acres EC developers.
Even in this challenging environment, one thing has been made clear, and that is the fact that some projects will do better than others. These successful projects tend to cover the sound basics of practice, which are an attractive location, a market area that offers an environment that is less competitive, quality development and pricing that is good value for money.