Property Prices

HDB resale prices down in 2016

HDB resale prices have dropped by 0.1% throughout 2016. The Resale Price Index (RPI) has produced flash estimates for the flat resale prices. More data will be available on January 26, when the details Q4 details are released.

So far, the estimate is that Q4 of 2016 saw a 0.1% price drop from Q3. Despite this, the planned 17,000 new flats for 2017 are still going ahead. The HDB says that February will see the first 4,100 Build-To-Order flats in Woodlands, Punggol, Clementi, and Tampines. Others will follow after this.

The drop in Q4 follows the HDB resale prices staying the same in both Q3 and Q2. Q1 saw a 0.1% drop from the 0.1% rise in 2015, evening out the drop to just 0.1% throughout the whole of 2016 based on 2015.

The Housing Board provides information each quarter about the resale prices to help property investors make their buying and selling decisions.

January 9, 2017 / by / in
Pte Residential Property Price

The latest figures for private residential property prices have been released. These are for the fourth quarter in 2016, and continue the pattern noticed in the previous quarters of the same year. In fact, property prices have been declining for longer, but the decline has softened in 2016 compared to 2015.

13th Consecutive Quarter Decline

Q4 2016 followed the pattern for the previous 12 quarters. It dropped by 0.6 points, which equates to a 0.4% drop in house prices. This is a smaller drop than Q3, which saw a 1.5% decrease. Overall, the property prices dropped by 3.0% in 2016, compared to 2015’s 3.7%.

Core Central Region Performing Stronger

As many experts expected, the Core Central Region (CCR) performed better than the rest of the region. In Q4 the prices remained the same as Q3, which saw a 1.9% decline from Q2. Outside the CCR, prices decreased by 2%, which followed the 1% decrease from the third quarter.

Outside of the central region, prices also slipped. The slip was not as dramatic, seeing a 0.3% decrease compared to Q3’s 1% fall.

House Prices Are Supported

While the prices of properties have slipped, it isn’t a major concern for CBRE’s head of research, Desmond Sim. He shared that the land costs are higher and help to support the falling property prices. Developers are also seeing good balance sheets, preventing a wide panic over falling prices.

There is some concern for 2017, though. Interest rates look to rise, which puts more pressure on property prices. There may be a more of a fall in market prices because of these rates. The concerns are premature at the moment.

There are still plans to produce 17,000 new flats in 2017, which will be available for sale. The first will start in February.

January 3, 2017 / by / in
Million Dollar Profits Made From Flipping Land Houses

November 25, 2016 saw a seller gain a $1.78m profit on a 999-leasehold terraced house. This came after buying the Huddington Ave home in April 2015. Once the 12% Seller’s Stamp Duty was taking out, the profit became $1.25m, which was a 48% profit based on the starting price. The house price was higher, but renovation and refurbishment costs have been taken out.

This isn’t the first time such a high profit has been noted. The largest profit percentage in that same week was from a Pandan Valley unit, which saw a 109% profit.  The actual profit in dollars was less than a million, but still shows the financial investment gains available.

Two Rivergate units saw high profits, with sellers gaining $917,000 and $557,600 from their units. The large profit worked out as a 79% increase from the June 2005 selling price, while the smaller profit was a 23% increase based on the Oct 2006 price.

There have been cases where sellers have seen a multimillion dollar loss. On November 25, a seller saw a$2,8m loss on his property at the Ritz-Carlton Residences. This followed a $700,000 loss from the previous owner of the same unit!

Another Ritz-Carlton Residences unit saw a loss in March 2016. The seller saw a $4.27m loss, after his 8% Seller’s Stamp Duty due to the 2.8-year holding period was taken off. However, the largest loss percentage of that week was in a Mt. Sinai Residences unit, which saw a 35% drop in price. That was after the previous seller made a 55% profit in April 2012.

December 12, 2016 / by / in