FURTHER MEASURES REQUIRED TO CONTROL SINGAPORE HOME PRICES

Jo-Ann Huang of Channel News Asia reports that despite the cooling measures introduced by the government in August, many home buyers feel that Singapore properties are still expensive.

This is according to the latest survey by property listings site PropertyGuru.com.sg.

Steve Melhuish, Chief Executive Officer, PropertyGuru.com.sg, said: “One of the things that came out in terms of the most recent research findings is that people still think that HDB is expensive. 67 per cent of people we surveyed are of the view that HDB is still expensive.

However (in) the last survey we did, which is in May and June, the number was 75 per cent. Interestingly, for the next 12 months for the forward looking view, 59 per cent feel that HDB prices will stabilise or not change, or decrease versus 23 per cent in the previous survey.”

Forty one per cent of the survey’s respondents feel that more steps are needed to control property prices while 42 per cent of respondents will consider investing in cheaper office or retail units due to high home prices.

Ong Kah Seng, Senior Manager of Research, Asia Pacific, Cushman & Wakefield, said: “Definitely the yields for commercial properties have been traditionally higher than residential properties.

For residential properties, most yields are going at 3 per cent. For industrial properties, it will be about 6 per cent or more. And retail properties will be about 5 per cent.”

Earlier this week, the Ministry of National Development said that the full effects of the cooling measures would be realised in the next one to two months.

The cash over valuations for HDB resale units slipped to $22,000 last month.

According to data from the Urban Redevelopment Authority, property price growth has slowed to 2.9 per cent in the third quarter compared to 5.3 per cent previously.

Going forward, analysts say home prices will grow by 10 per cent next year, led by the luxury segment but HDB prices will grow at a marginal 5 per cent due to the cooling measures.

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