Changes in the First Quarter of 2013
The Government has announced a number of changes affecting housing policy since the beginning of the year.
1) Population White Paper that lays the master plan for infrastructural planning for up to 6.9 million population by the year 2030
2) Property Cooling Measure controlling the specific nationality in the buyer segment with additional buyer stamp duty. There were also control on the loan quantum eligibility and loan approval assessment method through mortgage servicing ratio.
3) New Schemes aimed to help singles 35 years old and above with income $5000 or less to purchase 2-room BTO HDB flats.
The Government has demonstrated great determination in moderating the property price index. These measures pushed out in the first quarter of the year have seen the property industry being shook by the sweeping change. On the ground, buyers have adopted a wait and see approach in the month of February. 708 new private homes were sold in February 2013, a 65 percent drop compared to the 2,013 units sold in the previous month, according to data from the Urban Redevelopment Authority (URA). Including executive condominiums (ECs), the sales volume was almost 60 percent down month-on-month at 917 homes.
Jittery developers held back new project launches to gauge the effects of the measures. Only 262 units were launched last month compared to 1,799 in January, a whopping 85 percent drop and the lowest number in two years.
The best-selling private residential projects in the month were d’Leedon in prime District 10 which sold 166 units at a median price of S$1,540 psf, followed by Q Bay Residences at Tampines which saw 74 units taken up at a median price of S$1,041psf.
Among ECs, The Topiary along Fernvale Lane saw the strongest interest, recording sales of 84 units at a median price of S$730 psf.
In total, 209 EC units were sold in February compared to the previous 256.
Will there be a burst in the property bubble in the 2nd Quarter?
For the month of March, LoanGuru noticed developers have started releasing their uncompleted projects for sale. One particular project launched by developer CDL has closed around 80 percent or more than 350 of the 450 units released at its sales preview. The project was sold at an average price of S$990 per square feet. Mass market projects situated near MRT lines and launched below $1000 per square feet will continue to attract buyers. In view of the projects to be launched in March, LoanGuru sees that buyer sentiment is finally swinging back to the market. We should be able to see more sales closed in the coming 2-3 months.
What does it mean to me?
With the property sales expected to pick up in the mass market segment, will the property price index pick up to new high again? In an increasingly expensive property market, are you priced out of your purchase as a buyer? LoanGuru noticed exciting new opportunities in the area of commercial and overseas property. Find out from LoanGuru how you can structure your mortgage loan to leverage on the current market situation.
If you have an outstanding mortgage loan currently and you intend to buy a second property, you will need to take note of the additional buyer stamp duty. Your eligible loan quantum ranges from 30% – 50% depending on the loan tenor chosen and your age at end of loan tenor.
Consult LoanGuru and be informed on all aspects of buying before you make a property purchase. Contact us at 6602 8200 to get the lowest rates for residential, overseas and commercial loan, Guaranteed. Read the full article at blog.loanguru.com.sg or search for “LoanGuru” on Facebook and “Like” us to receive timely updates.
