Singapore - Housing 01 (May 08 - Oct 08)

[LenaHuat]

Sometime ago (in the old forum), I wrote that HDB flat ownership will be a very good investment especially when one is eligible to rent it out. 2day, I'm astounded by HDB's press release. I added the numbers at the HDB website, it's some capital appreciation of 18-20.5% over a moving year If one includes the rental, the return must be some 25-26.5% per annum

Woooow....congrats to forumers who own one

[winston]

From DBS:-

We continue to believe that the downside to property prices for the whole of 2008 would be limited to single digits though the price downtrend should continue into 2009, with high-end properties bearing the brunt of any price declines while the mass-market segment should be relatively resilient.

City Dev (BUY, TP S$11.25) continues to be our top pick as a proxy to the Singapore residential market, with Allgreen (BUY, TP S$1.12) and Ho Bee (BUY, TP S$1.17) also looking attractive among the mid/small caps.

[blid2def]

Sometime ago (in the old forum), I wrote that HDB flat ownership will be a very good investment especially when one is eligible to rent it out. 2day, I'm astounded by HDB's press release. I added the numbers at the HDB website, it's some capital appreciation of 18-20.5% over a moving year If one includes the rental, the return must be some 25-26.5% per annum

Woooow....congrats to forumers who own one

I wish I could own two...

[winston]

Singapore property stocks sink as four-year boom ends

Singapore property stocks sank on Friday after data showed the city-state's four-year private property boom was over.

At midday, shares in Southeast Asia's largest developer CapitaLand were down 3.30 percent, City Developments was off 3.70 percent and Keppel Land was down 4.36 percent against a broader market decline of 2.24 percent.

Preliminary government data released on Thursday showed that private residential property prices fell 1.8 percent in the third quarter -- the first drop since the first quarter of 2004.

Singapore's market had been described by real estate giant Jones Lang LaSalle as the world's hottest in 2007, when property prices surged 31 percent overall.

But as prices edged closer to peaks reached in 1996, the growth slowed earlier this year and prices were up just 0.2 percent in the second quarter, said the Urban Redevelopment Authority, which oversees land use planning.

"Our forecast is for a property down-cycle lasting at least 1.5 years from now till end 2009," the US bank Goldman Sachs said.

Government approval for two casino complexes in 2005 was one of the major factors behind the revival of Singapore's property market, which had been stuck in a rut stemming from the 1997 Asian financial crisis.

Efforts to woo wealthy foreigners to take up residence in Singapore, along with an all-out bid to attract skilled foreign migrants, also drove the property market revival.

The rebound left many expatriates struggling to cope with soaring rents which in some cases doubled.

- Dow Jones Newswires

[iam802]

I am starting to see property price sliding down now.

Just a couple of months back, we were talking about 1,500 - 1,800 psf for some new launches.

Now, prices starting from $1,300 to $1,700 has started to surface.

[winston]

From DBS:-

Property developers could find themselves in a situation of slowing sales, increasing difficulty in obtaining credit or rolling over debt from their lenders, and increased cost and revenue uncertainty given that construction companies and property
purchasers alike will be impacted by the rising cost and potentially decreasing availability of credit.

We are particularly watchful for developers that are highly-geared coupled with below-average interest coverage, given that in this current environment, these liquid and solvency ratios will stand out.

Key downgrades include Capitaland (BUY to HOLD, TPS$2.91), City Dev (BUY to HOLD, TP S$6.97), Ho Bee (BUY to
HOLD, TP S$0.48), SC Global (HOLD to FULLY VALUED, TP S$0.38), UIC (HOLD to FULLY VALUED, TP S$1.37) and UOL
(HOLD to FULLY VALUED, TP S$1.95)

[LenaHuat]

Been busy sewing up a tenancy agreement..........rentals are dropping like rocks.

[kennynah]

i've locked my rental charges with my tenant until next Mar09.... but if sentiments are very poor, i guess, i will have to re-adjust expectations on how much i can charge in the next contract....

[LenaHuat]

Hi K
Ya, gonna lower our expectations. Heard many expats are not renewing tenancy agreements.

[-dol-]

Anyone think it is a good idea to sell this year before they go significantly lower next year?

Some developers are launching before the year is up. They probably think prices are headed firmly in one direction next year...