{"id":117080,"date":"2020-06-12T11:14:32","date_gmt":"2020-06-12T04:14:32","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/drop-in-private-home-prices-to-continue-analysts\/"},"modified":"2020-06-12T12:08:14","modified_gmt":"2020-06-12T05:08:14","slug":"drop-in-private-home-prices-to-continue-analysts","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drop-in-private-home-prices-to-continue-analysts\/","title":{"rendered":"Drop in private home prices to continue, analysts"},"content":{"rendered":"


\nWith developers still not allowed to open sales galleries in the city-state\u2019s first phase of reopening post-circuit breaker period, most analysts expect prices to continue to drop.
\nSingapore saw sales for new private homes drop 12% during the first quarter of 2020, while new private home prices declined 1%, reported Channel News Asia (CNA).
\nAnd with developers still not allowed to open sales galleries in the city-state\u2019s first phase of reopening post-circuit breaker period, most analysts expect prices to continue to drop.
\nRelated story:\u00a0Someone Bought A $2.2M House Without Even Viewing It, Can You Do It Too?
\nOrangeTee & Tie Head of Research and Consultancy Christine Sun sees private home prices declining by 3% to 5%, although she expects some segments of the market to perform better than others.
\n\u201cWe are not expecting it to be uniform across the whole industry because it really depends very much on the market segment,\u201d Sun was quoted by CNA as saying.
\nMass market projects, for instance, have been shifting up to 70% of their units, she said.
\n\u201cBut if you look at other segments, for instance like the resale market, there could be more price pressure, possibly because many of the individual sellers\u2019 holding power may not be as strong as the developers. Or they may face ongoing competition from the supply of new homes.\u201d
\nBut unlike the 2007-2008 global financial crisis \u2013 which was characterised by \u201cpanic\u201d, causing property prices in Singapore to fall 25% in three quarters \u2013 the present situation is different since the Covid-19 pandemic affected the whole world, said the CNA report citing PropNex Realty CEO Ismail Gafoor.
\nAs such, developers are not slashing prices, while people \u201care accepting that this is something that needs patience to ride over\u201d, said Ismail.
\nAnother difference between the 2008 financial crisis and the present situation is that interest rates are lower now, which means that it is now cheaper to obtain a housing loan.
\nThe lower interest rate environment has spurred not only the locals but also foreigners to continue shopping for Singapore properties, said analysts.
\nIn fact, ERA closed several deals with Chinese property buyers, whom they gave virtual tours, even during the circuit breaker.
\n\u201cBecause the yuan is depreciating, [Chinese buyers] are actually looking to invest overseas to preserve their wealth \u2026 And Singapore naturally being a safe haven and being very well managed and a safe place, attracts these type of buyers,\u201d CNA quoted ERA Real Estate Key Executive Officer Eugene Lim.
\nDevelopers have lesser room to cut prices, resale HDBs to remain stable
\nEven during past crises, developers still had \u201chealthy\u201d profit margins of 20 to 30%, according to Vijay\u00a0Natarajan, Assistant Vice-President of Real Estate at RHB Securities. But he said that their profit margins will be lower this time around due to the acquisition of expensive land from the recent en bloc frenzy and increasing construction costs in the future.
\n\u201cThis time around, the margins have fallen. There has been quite a bit of competition to acquire land. Because of the recent en bloc cycle, developers are sitting on expensive land banks. Going forward, construction costs are going to rise. This is going to put pressure on the developer margins which are already low at around 5 to 15%, so considering these factors, developers have much less room to cut property prices going forward,\u201d he said.
\nMeanwhile, experts believe that the HDB resale market will continue to remain stable based on historical data.\u00a0
\n\u201cIn the past years, we have seen that even through crisis periods, HDB prices tend to remain relatively stable and if it does come down, it is at a measured pace. Similarly, if it does go up over time, it is also at a measured pace \u2026 It\u2019s not affected by the ups and downs of market sentiment, largely because such flats are bought and sold for owner occupation,\u201d said Lim.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Drop in private home prices to continue, analysts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With developers still not allowed to open sales galleries in the city-state\u2019s first phase of...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-117080","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-uso","jetpack-related-posts":[{"id":116465,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-private-home-sales-drop-58-in-april\/","url_meta":{"origin":117080,"position":0},"title":"New private home sales drop 58% in April","date":"May 18, 2020","format":false,"excerpt":"\r Developers sold 277 new private homes in April, down 58% from the 660 units shifted in March. Photo: Kopar at Newton by CEL.\u00a0 With the implementation of circuit breaker measures from 7 April leading to the discontinuation of house viewings and closure of showflats, developers sold 277 new private\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":117914,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/up-to-20-new-residential-projects-to-be-launched-in-2h-huttons\/","url_meta":{"origin":117080,"position":1},"title":"Up to 20 new residential projects to be launched in 2H, Huttons","date":"July 22, 2020","format":false,"excerpt":"\r Despite slow sales during the circuit breaker period, there\u2019s been resilence in the market and Huttons Asia expects sales to hover between 8,000 and 8,500 units in 2020, with more project launches on the cards.\u00a0\u00a0 During the circuit breaker, developer sales plunged to one of its lowest levels in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":117284,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-firms-expect-to-see-more-transactions-now-that-physical-viewings-are-allowed\/","url_meta":{"origin":117080,"position":2},"title":"Property firms expect to see more transactions now that physical viewings are allowed","date":"June 23, 2020","format":false,"excerpt":"\r Many potential buyers still prefer physical viewings to get a feel of the space, environment and ambience before making a purchase decision. With the circuit breaker period forcing home buyers into virtual viewings, property firms expect to see more request for physical viewings of showrooms and resale residential units\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":117166,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-private-homes-sales-spiked-75-5-in-may\/","url_meta":{"origin":117080,"position":3},"title":"New private homes sales spiked 75.5% in May","date":"June 16, 2020","format":false,"excerpt":"\r Including ECs, 509 units were sold in May, up 73.7% month-on-month but down 46.5% year-on-year. Photo: Treasure at Tampines. Despite the closure of showflats due to the government\u2019s circuit breaker measures, sales for new private homes rose 75.5% to 486 units \u2013 excluding executive condominiums (ECs) \u2013 in May\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":117816,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapores-q2-gdp-wont-be-as-grim-with-the-inclusion-of-junes-reopening-economists\/","url_meta":{"origin":117080,"position":4},"title":"Singapore\u2019s Q2 GDP won't be as grim with the inclusion of June's reopening: economists","date":"July 15, 2020","format":false,"excerpt":"\r \u201cGiven that Phase 1 began in early June and Phase 2 started sooner than we thought on 19 June, this allowed businesses to reopen and it means that the June indicators, such as retail sales, will not be as bad as April and May\u201d,\u00a0said Jeff Ng, Senior Treasury Strategist\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":115830,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-prices-down-1-in-q1-2020\/","url_meta":{"origin":117080,"position":5},"title":"Private home prices down 1% in Q1 2020","date":"April 24, 2020","format":false,"excerpt":"\r Property sales were generally muted as well with lockdowns imposed around the world and stricter safe distancing measures. 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