Source : The Business Times, January 25, 2008
Purchases fall 2.2% to an annual rate of 4.89m; 1st fall in prices in 40 years
(WASHINGTON) Sales of existing homes in the US fell more than forecast in December, capping the biggest yearly slump in more than a generation.
Purchases fell 2.2 per cent to an annual rate of 4.89 million, the National Association of Realtors said yesterday. For all of last year, sales of single-family homes declined 13 per cent, the most since 1982, and prices dropped for the first time in at least four decades.
Falling property values and tougher borrowing rules may lead to more foreclosures and depress housing for most of this year. The worsening real estate recession is at the core of the economic slowdown and will probably prompt the Federal Reserve to lower interest rates next week and in future meetings, economists said.
'We are not at the bottom in the housing market,' said Nigel Gault, director of US research at Global Insight Inc, a Lexington, Massachusetts, forecasting firm. 'The Fed is trying to battle against the fundamentals which say housing is not going to recover until we have a substantial decline in prices.'
Economists forecast that sales would fall to a 4.95 million annual rate from November's previously reported five million pace, according to the median estimate of 71 economists in a Bloomberg News survey. Projections ranged from 4.75 million to 5.15 million.
The median sales price fell 6 per cent to US$208,400 from December 2006 and was down 1.4 per cent for all of 2007 from the previous year.
The median price of a single-family home dropped 1.8 per cent in 2007, the first decline since records began four decades ago and probably the first since the Great Depression in the 1930s, the realtors group said.
'I do expect sales to remain soft through the first quarter and possibly the second quarter,' said Lawrence Yun, the real estate agents group's chief economist.
The number of homes for sale at the end of December fell 7.4 per cent to 3.91 million. At the current sales pace, that represented 9.6 months' supply, compared with 10.1 months in November. The realtors group has said that a five to six months' supply is needed to stabilise the market.
'With inventories at such high levels, it's quite clear that the housing market is going to be in a decline for a long period of time,' Zach Pandl, an economist at Lehman Brothers Holdings Inc in New York, said before the report.
Elevated inventories leave builders with little incentive to break ground on new projects and push down prices on new and existing homes.
The Commerce Department is scheduled to report new home sales next week. Purchases of new houses, which account about 15 per cent of the market, fell to a 12-year low in November.
Builders broke ground in December on the fewest houses since 1991, making last year's decline in homebuilding the worst in almost three decades, the department said on Jan 17.
New home sales are considered a leading indicator of the market because they are tabulated when a contract is signed. Sales of existing homes reflect contract closings, which typically come a month or two later.
Resales fell in all four regions let by a 4.6 per cent decline in the north-east.
Sales of single-family homes decreased 2 per cent to a 4.31 million pace, according to yesterday's report. Sales of condos and co-ops dropped 3.3 per cent to a 580,000 rate. -- Bloomberg
Saturday, January 26, 2008
Private Property Prices Grew More Slowly, Up 6.8% In Q4
Source : Channel NewsAsia, 25 January 2008
Private property prices grew more slowly at 6.8% in the last quarter of 2007, compared to the previous three months, according to the latest data from the Urban Redevelopment Authority (URA).
Analysts attributed this to the uncertainty in the financial markets and measures taken to curb speculation in the property sector.
Still, for the whole year, private property prices were up by 31% - now just 6% shy of the all-time peak in 1996.
As for HDB resale prices, they climbed 17.5% last year.
The supply of new private residential properties in the fourth quarter was down by 45% compared to the preceding three months.
The number of units sold dipped to just 1,397 - the lowest 4th quarter sales since 2003.
Property consultants said worries that the financial market upheaval might spill over to the real economy made buyers more cautious.
"There are still genuine buyers out there and they have the deep pockets... and they maintaining the prices. What is removed is the volume. The speculative demand has been narrowed because of the removal of deferred payment," said Dr Chua Yang Liang, head of Research & Consultancy, Jones Lang LaSalle.
The pace of rent hikes also slowed to 6.8% in the last quarter, with rentals in the fringe of prime districts and the suburban areas growing faster than those in the central area.
Overall, housing rents were up by 41.2% for the full year.
Said Nicholas Mak, director of Consultancy & Research at Knight Frank: "The prime districts actually had the slowest rate of rental increase in the fourth quarter, partly because rentals has already gone up quite high and the base is relatively higher than the rest of the island.
"Going forward, we're going to see the rest of the market catching up,... for example in the suburban areas. This is partly supported by the rising rentals in the HDB rental market as well."
As for office rentals, they soared 56.1% in 2007, going up by 8% in both the 3rd and 4th quarters.
"There is still some healthy demand for office space, as long as the economy is growing at a healthy rate, but there are also some tenants who are showing some resistance to further rates increase," said Mak.
"There are also some office space users who might want to revise what they need, in light of what might be happening in their head office, that is if those head offices are affected by the sub-prime crisis," he added.
The price of industrial properties climbed 22.7% while shops cost 13.2% more on average. - CNA /ls
Private property prices grew more slowly at 6.8% in the last quarter of 2007, compared to the previous three months, according to the latest data from the Urban Redevelopment Authority (URA).
Analysts attributed this to the uncertainty in the financial markets and measures taken to curb speculation in the property sector. Still, for the whole year, private property prices were up by 31% - now just 6% shy of the all-time peak in 1996.
As for HDB resale prices, they climbed 17.5% last year.
The supply of new private residential properties in the fourth quarter was down by 45% compared to the preceding three months.
The number of units sold dipped to just 1,397 - the lowest 4th quarter sales since 2003.
Property consultants said worries that the financial market upheaval might spill over to the real economy made buyers more cautious.
"There are still genuine buyers out there and they have the deep pockets... and they maintaining the prices. What is removed is the volume. The speculative demand has been narrowed because of the removal of deferred payment," said Dr Chua Yang Liang, head of Research & Consultancy, Jones Lang LaSalle.
The pace of rent hikes also slowed to 6.8% in the last quarter, with rentals in the fringe of prime districts and the suburban areas growing faster than those in the central area.
Overall, housing rents were up by 41.2% for the full year.
Said Nicholas Mak, director of Consultancy & Research at Knight Frank: "The prime districts actually had the slowest rate of rental increase in the fourth quarter, partly because rentals has already gone up quite high and the base is relatively higher than the rest of the island.
"Going forward, we're going to see the rest of the market catching up,... for example in the suburban areas. This is partly supported by the rising rentals in the HDB rental market as well."
As for office rentals, they soared 56.1% in 2007, going up by 8% in both the 3rd and 4th quarters.
"There is still some healthy demand for office space, as long as the economy is growing at a healthy rate, but there are also some tenants who are showing some resistance to further rates increase," said Mak.
"There are also some office space users who might want to revise what they need, in light of what might be happening in their head office, that is if those head offices are affected by the sub-prime crisis," he added.
The price of industrial properties climbed 22.7% while shops cost 13.2% more on average. - CNA /ls
Residents Welcome Proposed Thomson MRT Line
Source : Channel NewsAsia, 25 January 2008
Residents in Kim Seng, Thomson, Sin Ming and Kebun Baru have reason to celebrate - especially with the unveiling of plans for the new Thomson MRT line, which will be ready in 2018.
While most are happy about the new development, there are some concerns about costs and the long wait for the new line.
One resident said, "I think it'll be good for the citizens around here. You can get to places around much more easily."
Another noted, "From a business perspective, it's a positive development."
The MRT is definitely a cheaper alternative to taxis.
However, some are concerned about the cost.
One resident commented, "I can say (taking the MRT) is a bit expensive."
Gerard Ee, Chairman, Public Transport Council, said, "All these costs for building additional trains and stations - in Singapore, the basic infrastructure is paid for by the government. So as commuters, they'll say 'Wow, all this is exciting, and it's not going to impact my pocket'."
However, one impact is the decade-long wait for the new line.
A resident said, "2018 is a long time. I don't know whether I'll live to that stage."
Another added, "We don't like to see the situation (similar to) what's happening in Buangkok. It's open, it's closed...creating unhappiness among the residents."
On the whole, residents have welcomed the new line. But is this enough to make the public transport system their other car, as suggested by Transport Minister Raymond Lim.
One resident commented, "I will not consider buying a car, as I would have more money to spend on other stuff."
Another added, "I'm so used to driving. It is convenient for us anyway."
Nevertheless, convenience is definitely on the cards - and that is something that will surely help change the way Singaporeans travel. - CNA/ms
Residents in Kim Seng, Thomson, Sin Ming and Kebun Baru have reason to celebrate - especially with the unveiling of plans for the new Thomson MRT line, which will be ready in 2018.
While most are happy about the new development, there are some concerns about costs and the long wait for the new line. One resident said, "I think it'll be good for the citizens around here. You can get to places around much more easily."
Another noted, "From a business perspective, it's a positive development."
The MRT is definitely a cheaper alternative to taxis.
However, some are concerned about the cost.
One resident commented, "I can say (taking the MRT) is a bit expensive."
Gerard Ee, Chairman, Public Transport Council, said, "All these costs for building additional trains and stations - in Singapore, the basic infrastructure is paid for by the government. So as commuters, they'll say 'Wow, all this is exciting, and it's not going to impact my pocket'."
However, one impact is the decade-long wait for the new line.
A resident said, "2018 is a long time. I don't know whether I'll live to that stage."
Another added, "We don't like to see the situation (similar to) what's happening in Buangkok. It's open, it's closed...creating unhappiness among the residents."
On the whole, residents have welcomed the new line. But is this enough to make the public transport system their other car, as suggested by Transport Minister Raymond Lim.
One resident commented, "I will not consider buying a car, as I would have more money to spend on other stuff."
Another added, "I'm so used to driving. It is convenient for us anyway."
Nevertheless, convenience is definitely on the cards - and that is something that will surely help change the way Singaporeans travel. - CNA/ms
Above-Ground MRT Stations To Have Platform Screen Doors By 2012
Source : Channel NewsAsia, 26 January 2008
Platform screen doors will be installed at all above-ground MRT stations by 2012, more sheltered linkways and barrier-free access features will also be available to make it more convenient for commuters to get to the train stations, Transport Minister Raymond Lim announced Friday.
Platform screen doors will be installed at all above-ground stations by 2012
Commuter Mohamad Fairoz and his family are all for the proposed enhancements to the train stations, especially the platform screen doors for above-ground stations, which will help cut disruption and prevent mishaps.
Related Video Link - http://tinyurl.com/394ut3
"It's for safety. Sometimes people (are) rushing to go back, so when they rush, they may slip," he said.
The number of track intrusions has risen from an average of 16 cases a year to about 30 in the past two years.
Platform screen doors will be installed at Yishun, Jurong East and Pasir Ris stations in 2009, before rolling out to the rest.
President and CEO of SMRT Saw Phaik Hwa said, "In the old days, this kind of installation (was) extremely expensive to build and to maintain, but over the years… we noticed that the price has plummeted because it's more widely available."
By 2010, the Land Transport Authority (LTA) will complete its S$60 million programme to improve access to train stations, and 86 per cent of overhead bridges will be covered.
Commuter Leonard Chua welcomed the news. "When it rains, I do not have to be stuck at the bus stop or dash to the MRT station."
The elderly and less mobile will also be helped. Transport Minister Raymond Lim said the entire bus fleet will be wheelchair-accessible by 2020.
Seventy per cent of train stations will also have at least two barrier-free access routes by the end of 2011.
A total of S$70 million will be spent to build another 17 lifts at 16 MRT stations.
More bicycle parking facilities will also be made available at bus interchanges and train stations from 2009. Starting March this year, the LTA will run a six-month trial to allow cyclists to bring their foldable bicycles onboard buses and trains.
Apart from improving train service, the authorities also want to up the service standards for taxis.
A common call booking telephone service will be set up by July this year to ensure taxis are available via phone booking during peak hours.
The authorities will also promote the use of cleaner and more energy-efficient vehicles, as well as reviewing its Green Vehicle Rebate scheme.
By 2014, all taxis in Singapore will comply with the Euro IV emission standards, and 40 per cent of public buses will have achieved similar emission target by 2010, with the aim of full compliance by 2020. - CNA/ac
Platform screen doors will be installed at all above-ground MRT stations by 2012, more sheltered linkways and barrier-free access features will also be available to make it more convenient for commuters to get to the train stations, Transport Minister Raymond Lim announced Friday.
Platform screen doors will be installed at all above-ground stations by 2012Commuter Mohamad Fairoz and his family are all for the proposed enhancements to the train stations, especially the platform screen doors for above-ground stations, which will help cut disruption and prevent mishaps.
Related Video Link - http://tinyurl.com/394ut3
"It's for safety. Sometimes people (are) rushing to go back, so when they rush, they may slip," he said.
The number of track intrusions has risen from an average of 16 cases a year to about 30 in the past two years.
Platform screen doors will be installed at Yishun, Jurong East and Pasir Ris stations in 2009, before rolling out to the rest.
President and CEO of SMRT Saw Phaik Hwa said, "In the old days, this kind of installation (was) extremely expensive to build and to maintain, but over the years… we noticed that the price has plummeted because it's more widely available."
By 2010, the Land Transport Authority (LTA) will complete its S$60 million programme to improve access to train stations, and 86 per cent of overhead bridges will be covered.
Commuter Leonard Chua welcomed the news. "When it rains, I do not have to be stuck at the bus stop or dash to the MRT station."
The elderly and less mobile will also be helped. Transport Minister Raymond Lim said the entire bus fleet will be wheelchair-accessible by 2020.
Seventy per cent of train stations will also have at least two barrier-free access routes by the end of 2011.
A total of S$70 million will be spent to build another 17 lifts at 16 MRT stations.
More bicycle parking facilities will also be made available at bus interchanges and train stations from 2009. Starting March this year, the LTA will run a six-month trial to allow cyclists to bring their foldable bicycles onboard buses and trains.
Apart from improving train service, the authorities also want to up the service standards for taxis.
A common call booking telephone service will be set up by July this year to ensure taxis are available via phone booking during peak hours.
The authorities will also promote the use of cleaner and more energy-efficient vehicles, as well as reviewing its Green Vehicle Rebate scheme.
By 2014, all taxis in Singapore will comply with the Euro IV emission standards, and 40 per cent of public buses will have achieved similar emission target by 2010, with the aim of full compliance by 2020. - CNA/ac
S'pore Q4 Private Home Prices Grow At Slower Pace
Source : The Business Times, January 25, 2008
Singapore's private home prices rose a slower 6.8 per cent in October-December from the previous quarter, reflecting concerns about the global outlook and the effect of measures to cool the market, data showed on Friday.
Prices are at their highest in more than 10 years and near the peak of mid-1996 just before the Asian financial crisis, but sentiment has cooled as the republic's economy unexpectedly shrank in the fourth quarter from the previous three months.
The Urban Redevelopment Authority's (URA) price index for private residential property, a gauge of profitability for property firms and an indicator of inflation, rose 8.3 per cent in the third quarter.
Private home prices rose 31.2 per cent in the whole of 2007, the authority said in a statement.
'This is actually a more sustainable rate of growth as we don't want the market to head to another bubble and force the government to tighten even more,' said Nicholas Mak, head of research at property consultancy Knight Frank.
Mr Mak estimates that the index will rise another 15 per cent in 2008, bringing the URA price index past the historical record high of 181.4 reached in the second quarter of 2006.
The slower growth in home sales comes on the heels of recent measures taken by the authorities to curb speculation in the real estate market.
The Singapore government in October stopped letting developers sell uncompleted property on a deferred payment scheme.
Other measures included raising development charges to make it more expensive for companies such as CapitaLand and City Developments to buy out existing condominiums for redevelopment into larger apartment blocks with more units.
The number of uncompleted private homes sold by developers fell to 1,397 during the fourth quarter, much lower than the 3,367 units in the July-to-September period.
Still buoyant
Private apartments in Singapore's prime central regions, however, continued to lead price gains, although homes in the rest of the island were also more costly.
Private home rents rose 6.8 per cent in the period, easing from the third quarter's 11.4 per cent, bringing the overall increase for the year to 41.2 per cent.
A separate index showed resale prices of government-built apartments, housing some 85 per cent of Singaporeans, rose 5.7 per cent in the fourth quarter, slower than the 6.6 per cent in the previous quarter.
This brought the full-year increase for resale government-built flat prices to 17.5 per cent.
Higher housing costs have pushed up inflation with the annual consumer price index in December rising 4.4 per cent, the biggest jump in 25 years, the government reported on Wednesday.
Office rents rose 10.9 per cent in the fourth quarter, against the 14.8 per cent increase recorded in the previous three months.
For the full year, office rentals in Singapore jumped 56.1 per cent, reflecting a lack of new space as more multi-nationals set up offices in the republic.
The authorities have tried to temper price rises by releasing more land and assuring the market about supply.
'Supply is in the pipeline to meet demand over the next few years,' the URA said in a statement.
The authority said that 56,149 private homes and 1.21 million square metres of office space are expected to be completed between 2008 and 2011. -- REUTERS
Singapore's private home prices rose a slower 6.8 per cent in October-December from the previous quarter, reflecting concerns about the global outlook and the effect of measures to cool the market, data showed on Friday.
Prices are at their highest in more than 10 years and near the peak of mid-1996 just before the Asian financial crisis, but sentiment has cooled as the republic's economy unexpectedly shrank in the fourth quarter from the previous three months.
The Urban Redevelopment Authority's (URA) price index for private residential property, a gauge of profitability for property firms and an indicator of inflation, rose 8.3 per cent in the third quarter.
Private home prices rose 31.2 per cent in the whole of 2007, the authority said in a statement.
'This is actually a more sustainable rate of growth as we don't want the market to head to another bubble and force the government to tighten even more,' said Nicholas Mak, head of research at property consultancy Knight Frank.
Mr Mak estimates that the index will rise another 15 per cent in 2008, bringing the URA price index past the historical record high of 181.4 reached in the second quarter of 2006.
The slower growth in home sales comes on the heels of recent measures taken by the authorities to curb speculation in the real estate market.
The Singapore government in October stopped letting developers sell uncompleted property on a deferred payment scheme.
Other measures included raising development charges to make it more expensive for companies such as CapitaLand and City Developments to buy out existing condominiums for redevelopment into larger apartment blocks with more units.
The number of uncompleted private homes sold by developers fell to 1,397 during the fourth quarter, much lower than the 3,367 units in the July-to-September period.
Still buoyant
Private apartments in Singapore's prime central regions, however, continued to lead price gains, although homes in the rest of the island were also more costly.
Private home rents rose 6.8 per cent in the period, easing from the third quarter's 11.4 per cent, bringing the overall increase for the year to 41.2 per cent.
A separate index showed resale prices of government-built apartments, housing some 85 per cent of Singaporeans, rose 5.7 per cent in the fourth quarter, slower than the 6.6 per cent in the previous quarter.
This brought the full-year increase for resale government-built flat prices to 17.5 per cent.
Higher housing costs have pushed up inflation with the annual consumer price index in December rising 4.4 per cent, the biggest jump in 25 years, the government reported on Wednesday.
Office rents rose 10.9 per cent in the fourth quarter, against the 14.8 per cent increase recorded in the previous three months.
For the full year, office rentals in Singapore jumped 56.1 per cent, reflecting a lack of new space as more multi-nationals set up offices in the republic.
The authorities have tried to temper price rises by releasing more land and assuring the market about supply.
'Supply is in the pipeline to meet demand over the next few years,' the URA said in a statement.
The authority said that 56,149 private homes and 1.21 million square metres of office space are expected to be completed between 2008 and 2011. -- REUTERS
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