What goes up typically eventually need to come down. I think we have more or less reached the Peak in Singapore property market, in terms of number of New private homes sold and the prices as well.
I look at the profile of buyers of the Red Hot New projects in suburbs, they are mainly first time home buyers, upgraders and First Time Investors. The very telling sign is the Absence of Seasoned and Experienced Property Investors...they have stopped buying property since Jan 2011...
Markets always go to extreme, so while you see people rushing in, it's a time to be Fearful. Remember what Warren Buffett says to be fearful when others are greedy...
When will the tide start to turn?
The problem with property market is this:when the tide starts to turn, you will have no chance to get out, becos when market falls, you will probably have to sell at 10% lower than Market Prices (which already fell) in order to find any Buyers...Those experienced in property investing would know the Truth of what I said, for the rest, it is something they will get to experience probably for the first time in their lives.
Private home sales soar to 5200 units in Q1 2012
Apr 2, 2012 - PropertyGuru.com.sg
By Romesh Navaratnarajah
Strong demand for new private residential projects has pushed home sales to 5,200 units in Q1 2012, second only to the record sales seen in Q3 2009 when a total of 5,578 units were snapped up.
According to CBRE Research, these figures are based on keen interest for the large supply of about 5,500 new homes sold during the quarter as well as low interest rates and high liquidity.
Li Hiaw Ho, Executive Director at CBRE Research, said, “This is the first time since the previous peak in Q3 2009 that the sales volume has exceeded 5,000 units in one quarter. It has been averaging 4,000 units each quarter for the past few years.”
He added that the increase in sales could be attributed to “the slew of projects featuring compact apartments that have flooded the market in recent years.”
“The smaller quantum of each unit makes compact apartments very affordable, providing a safe haven for investors who are keen to park their savings,” noted the consultancy.
Some of the projects that were fully sold during the quarter include Guillemard Edge (275 units at a median price of S$1,215 psf), Casa Cambio (198 units, S$1,390 psf), Millage (70 units, S$1,350 psf) and Tree Scape (30 units, S$1,400 psf).
As far as buyers’ interest was concerned, the location, pricing, proximity of MRT stations and product attributes were major factors, while rebates and discounts also helped boost sales.
As of end-February, the best-selling projects are Watertown (pictured) in Punggol Central which saw a take-up of 924 units at a median price of S$1,250 psf, The Hillier in Hillview Avenue (457 units, S$1,325 psf) as well as Parc Rosewood in Woodlands (577 units, S$980 psf).