It sent shivers down the spine of prospective buyers and upgraders and they adopt a wait and see attitude, hoping for the market to re-correct.
Some market analysts predicted that the prices of private property might fall by 5% to 10% this year 2012.
Total sales of new properties (including Executive Condo) drop to 670 units for the month of December 2011. At the same time, across the state, some developer came up with counter-measures to gain the confidence of buyers with discounts, furniture voucher, stamp duty rebates, etc with higher listed selling price instead.
This seems effective as the total sales volume climbed to 2,077 units in Jan 2012 even though for the past few years, traditionally it is lower during the Chinese New Year period.
And for the past 2 months in February 2012, the sale volume went up higher to 3,142 units and then 3,032 units for the month of March 2012.
Being a responsible government elected by the citizens and tracking such statistics, it will most likely prompt the related ministries to come up with another round of cooling measures so as to prevent a bubble from building and protecting the interest of its citizens.
Property prices had been increasing since the 1960s and only during the Asian Financial Crisis in 1997 did the price index dipped to below 100 points.
For the next 10 years, the price index went up as high as 170 points before the Lehman Brother's collapse in 2008 brought some correction to adjust the price index to 130 points. Even so, this is still higher than the Asian Financial Crisis back in 1997.
Today, the price index is standing at around 200 points and who can project that the prices will drop below 2009 prices taking into consideration that most developers are listed companies and have to perform in the interest of their shareholders. Unless the government is willing to release new vacant land with lower than market rate selling price, this is a chicken and egg problem.
Even if the developers takes the other option of acquiring land from existing owners through en-bloc procedures, most owner will only be prepared to let go of their asset if they offered at least 20% to 30% above their market worth.
From past historical data, Singapore home prices are moving upwards mainly due to inflation, population increase, reduction of overall vacant land in the country, etc.
Before we can guess what other form of cooling measures is coming our way, and the prices escalating beyond our means it would be advisable to start now if you are planning to get a unit, may it be a private condo, an executive condo, a landed property or even an HDB flat.
Condominium living can really be a great experience and personal satisfaction nowadays. It is also an opportunity for you to help your childrens in getting their dream home if condition allows. You just have to know how to choose which one will give you the best experience.
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