Despite the home prices slipped for the consecutive quarter of the year, the residential market still show signs of stabilising.
In the closure of year 2016, there an estimated 3 per cent fall in private home prices and the decline in HDB resale prices were smaller at 0.15 percent than last year 2015, which is 3.7 per cent and 1.6 per cent respectively. There is a slight dip of 0.4 per cent in private home prices during the final quarter was also milder than the 1.5 per cent fall in the first quarter.
Overall, there is a property market is improving.
In spite of the directing property value decreases, specialists are not expecting a snappy turnaround given an abating economy, rising loan costs and instability in the occupations. Some real estate agent concluded there is a rising price trend for landed homes in the Q4 2016, as a measurable blip that does not flag the begin of a property price recuperation.
Landed homes evaded the general descending pattern with a 0.9 percent for quarter-on-quarter cost increment in the final quarter, in the wake of posting a 2.7 percent drop in the former quarter. For the entire of 2016, costs of landed properties fell by 4.4 percent, as per Urban Redevelopment Authority’s (URA) flash estimates.
Home owner hoping to offer their units in the optional market will have lower holding power in the midst of rising home loan costs, while developer maintaining good balance sheets records and contracting unsold property stock are still ready to keep up prices in their projects.
However, there are various projects will confront the risk of having their additional buyer’s stamp duty (ABSD) remission being clawed back from this year onwards. Under the ABSD conditions, developers are required to complete building and sell a project on a residential site within five years or pay ABSD on land cost with interest.
The market effect to be negligible. It is no surprise that developer may choose to pay one off payment, which could be counterbalanced with better pricing of the units when the market recuperates – than to cut costs that will put a top on valuations for the general market.
Projects that may face ABSD remission paw-back this year incorporate; The Trilinq by IOI Properties; Mon Jervois, Pollen & Bleu and Alex Residences by Singapore Land; The Glades by Keppel Land and China Vanke; Kingsford Hillview Peak by Kingsford Development; as well as The Crest by a Wing Tai-led consortium. Among them, The Crest and The Trilinq have the most number of leftover units, with 323 units and 278 units still unsold as of end-November.
The Business Times , 4th January 2017
Source: http://www.businesstimes.com.sg/real-estate/singapore-private-housing-prices-down-3-in-2016
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