SINGAPORE: The Real Estate Developers' Association of Singapore (REDAS) has raised concerns over a potential oversupply of private homes in the near term, especially with the uncertain global outlook.
It is urging the government to review its land sales programme to ensure that new supply is introduced only when the market is confident of absorbing it.
With the possibility of demand for private homes dropping due to an economic downturn, developers are pointing to the need to rein in supply.
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1152072/1/.html
10 comments:
True, but can their call be considered impartial? Aren't they expected to benefit from tighter supply?
Mr Tan, when they was under-supply and high demand, people faulted the govt because of rising prices. So the govt imposed some cooling measures, increased land sales and the supply of flats.
Now the situation seems to be turning around.
What do you think the govt should do - stay put with the current measures or rescind them.
The over supply is beginning to bite.
Estate agents say they have each hundreds of properties on file for renting, and the take up rate is slower by the months. Worst still, they could not close deals on second hand properties, buyers are only picking up brand new properties.
Redas has reasons to be uneasy.
I don't think the developers need to worry too much.
They can always count on the PAP govt which is very pro business.
I have the gut feeling that the rich, the connected and the elite comprises 35% of voters, more than the 25 to 30% of hard core opposition supporters. And even enough to give a win for Presidential candidates who depend on their votes.
So with a President and PAP govt closely linked, the pro-business policy will be as per normal or may even strengthen further.
The Pareto rule applies
80% of wealth is in hands of the 20%
Therefore 20% controls everything
If you notice the election results, it reflects this rule.
Do what you like, this ratio will not change.
Property is cyclical.
THis is just another sign that property prices may have peaked.
Whether property prices will drop and by how much depends on the global economy and the severity of the impending economy downturn.
It is time to be discerning about purchasing a property.
A property crash though does nobody any good. So a consolidation is expected considering the ample liquidity and low interest rates till 2013.
URA has enough venue to control supply even it may not be as immediate when market demand drops. Developers do not need to tell the government when to stop selling land as it is one major income for Spore.
The unsold units before the downturn will be enough to drag the market down, not the land supply if the crisis is longer than the developers can hold on, then we will see smaller developers go bankrupt after fire sale.
//I have the gut feeling that the rich, the connected and the elite comprises 35% of voters, more than the 25 to 30% of hard core opposition supporters. And even enough to give a win for Presidential candidates who depend on their votes.//
The rich, the connected and the elite comprises much less than 35% of voters. There are many poor people still voted for PAP. Don't ask me why. Ask the MSM,CCs, RCs.
I doubt the property price will drop much as there is abundant liquidity on the sideline waiting to go to work.
At this interest rate level. Any price drop will be perceived as an opportunity to buy.
This is like the repeat of post internet bubble when interest rate was artificially lowered to create demand which led to property bubble.
Developers are a calculative lot. They are afraid of the oversupply.
Now REDAS is asking the Govt for an indepth review of the property cooling measures.
Read :-
http://sg.news.yahoo.com/redas-calls-indepth-review-property-cooling-measures-160000774.html
But if you look at the prices of the recent EC launches at Arc at Tampines ... the price isn't cheap. It starts at above S$741~875for 2rm, $693~810 psf for 3rm.
Those who are not careful enough of the mechanics of their marketing techniques, they would be "tricked" into committing when price is still high.
Wait for a real correction of the property market, which looks quite certain if the world economy is going to be dragged down further...watch the US and Europe.
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