Property prices have finally come down and this probably marks some signs of slowing down – not too good for those who bought or invested the properties earlier on (although I’d think that it’s probably be less heartaching for genuine buyers), but probably good news for people who are shopping around. Rental rates will probably be following suit, which is just about time since I would need to move out before the end of this year.

But hey, you know what? Bank interest rates have went up – which some how seems to me like 2 forces acting in equilibrium! Darn! do the banks know how to make full use of opportunities or what? They are really not giving the buyers any breathing space, are they? I hope the banks are not quoting “increase oil prices” as a reason for them to jack up their interest rates. =)

Anyway, with the uncertainty in the economy and a recession looming (although many will either flatly deny it or think that we are already in one), it’s probably only those with ready cash that will be able to make use of this opportunity. It’s no wonder that the rich get richer and the poor… well, just remains just as poor, if not poorer – that’s assuming that people are buying these properties as investments.

 GOOD news for homebuyers: The prices of some new developments are finally starting to come down.

At least two new projects have been tagged with prices below what they were expected to fetch just months ago.

This may be because developers are faced with no sign of improvement in the cooling property market, consultants say.

They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.

One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.

Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) – below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.

This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.

‘After the land cost and building cost, the break-even price is actually almost $900 psf,’ said a property agent, who asked not to be named.

The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.

For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.

City Developments’ (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.

Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.

Shelford Suites’ launch had been delayed for months as CDL waited for sentiment to improve.

Article obtained from straitstimes.com on 12th June 2008



Reader's Comments

  1. The Singapore Daily » Blog Archive » Daily Sg: 12 June 2008 | June 12th, 2008 at 11:30 am

    […] Housing – Simply Jean: Property prices down, but too poor now to buy it […]

  2. The SS | June 12th, 2008 at 3:11 pm

    Rates in the U.S. have not even started going up! This is only the beginning. Banks all over the world are facing higher spreads themeselves to fund their operations as liquidity gets channelled into bail outs, rights and capital injections.
    This was foretold by some commentators on various blogs and it’s starting to play out now.
    And guess what? Even high flying bankers will be sent home, pressuring the rental market which has alredy adjusted somewhat downwards. Any single month without a tenant would reduce your yield by at least 8% of the total yield from the annual rental income. If an apartment is empty for 4 months, 1/3 of the expected yield is foregone. Landlords beware. This is another dilema on the income side of landlords who are borrowing for their investment apartment.

  3. The Singapore Daily » Blog Archive » Weekly Roundup: Week 24 | June 14th, 2008 at 11:12 am

    […] Housing – Enblocing Singapore: Every Building Tells a (Hi)story – Simply Jean: Property prices down, but too poor now to buy it […]

Leave a Comment

%d bloggers like this: