With the latest (6th) round of cooling measure with effect from 6 October 2012 for the
property market, home buyers of private residential will continue to have this question
uppermost in their mind – Is this the right time to buy?
For views by experts, you can make reference to the following reports:
- Straits Times 13 October 2012 ‘Where are home prices headed?’ (Note: Can’t find available online link. Please complete contact form for image copy)
- Straits Times 17 October 2012 ‘Experts predict steady home prices due to low interst rates’
- Business Times 18 October 2012 ‘Developer sales surge to 3-year high’
- New Paper 19 October 2012 ‘Home buyers in a seller’s market’
- Straits Times 20 October 2012 ‘Punggol resale flats fetching good prices’
- Straits Times 24 October 2012 ‘Price boost for limited edition exec maisonettes’
- Today 26 October 2012 ‘To buy or not to buy?’
- Straits Times 26 October 2012 ‘More new EC units top $1m mark’
- Today 26 October 2012 ‘Cooling measures in danger of losing credibility’
Cooling measure effect on property prices
With each round of cooling measure, home buyers would think, and still are waiting for, that the property prices will correct.
Just look at above property price index from URA website, has the price corrected?
There was a slight dip after the introduction of the additional buyer stamp duty on 7 December 2011, but it rebounded back in the 2nd quarter 2012.
In fact, if you would have bought a unit at any stage other than the latest 2 rounds of cooling measure, you would have gained some paper capital appreciation by now.
Comments by market experts is that this latest measure is to mitigate the impact of the
QE3, a measure adopted by US to pump more money into the system.
Many felt QE3 will have a significant impact to Singapore, especially the property market.
The 1st two rounds of the QE (Quantitative easing) by US resulted in liquidity flowing into
Asia, and driving up the property market.
Effect on New Launches after cooling measure
After a few months break since the latest executive condominium (EC) launch, October sees
the launch of Waterbay and Heron Bay, ECs in Punggol and Hougang respectively.
Both have good take up rates, with Waterbay selling over 200 units, with the 2nd time home buyers quota filled, and Heron Bay sold 85% of its units and balance units are now opened to all buyers who are eligible on a walk in basis.
In the pipeline of EC launches are sites in Fernvale, Woodlands and Tampines, by end of 2012 or possibly beginning of 2013.
There’s also the good take up rate of several private residential projects as well.
eCO condominium has 515 of out its 603 units released sold within a month, since its launch
on September 22. This project is located near Tanah Merah MRT station.
Sky Green, a freehold development along Macpherson Road, and close to Tai Seng MRT station, saw 80% of its units total of 176 units sold during its soft launch.
Targetting to be launched soon is the land site at Jalan Lempeng in Clementi. It should be
another ‘hot’ project. More details coming up in my next blog.
To Buy or Not to Buy?
End of the day, as many of my buyers would attest, I can counter concerns and provide suggestions on the purchase, but the decision still very much lies with the home buyer.
One can never time the market so accurately that the time they purchase is the best time to buy or sell. What will happen next is very much an unknown factor that no one can predict.
Just remember affordability is always the key, and your holding power of the investment should anything unforseen happen.
To Buy or Not to Buy? – Contact Details
Please leave a message in Contact Form or call Poh Lin at 9 6700 937 for a no obligation discussion on your property investment.