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Saw this news on the wire... look like market will be bad for the next few quarters.
here's the full story:
By Chen Shiyin
Jan. 2 (Bloomberg) -- Singapore’s fourth-quarter private
home prices declined 5.7 percent, the steepest drop in a decade,
as the global financial crisis and an economic recession
deterred buyers.
The price index of private residential property fell to
163.4 points in the three months ended Dec. 31, from 173.30 in
the previous quarter, the Urban Redevelopment Authority said in
a statement on its Web site today. That’s the largest drop since
the three months ended Dec. 31, 1998, according to data tracked
by Bloomberg.
Home prices have retreated for two straight quarters,
ending a four-year rally. The island-state said today its
economy may shrink by as much as 2 percent this year, the first
contraction since 2001, amid the worsening global recession.
Prices for apartments in the so-called core central area
dropped 6.3 percent in the three months ended Dec. 31 and
slipped 5.5 percent elsewhere in central Singapore, according to
the Urban Redevelopment Authority. They fell 4.7 percent across
other parts of the island, today’s report showed.
Today’s data is based on transactions in the first 10 weeks
of the quarter, the government agency said. It will provide an
update in four weeks.
CapitaLand Ltd., Southeast Asia’s largest developer, rose
3.9 percent to S$3.23 at the 12:30 p.m. break in Singapore
trading. The shares dropped 50 percent last year, its largest
loss on record.
City Developments Ltd., Singapore’s second-largest real
estate company, added 3.5 percent to S$6.59. Keppel Land Ltd.,
the third-biggest, climbed 2.9 percent to S$1.75.
The government agency said on Dec. 19 about 10,450
unfinished homes were sold under a deferred mortgage plan that
allowed buyers to postpone taking out loans equivalent to as
much as 90 percent of the property values until they were
completed.
Some of those homes may be at risk of default or so-called
distressed sales if prices decline further, analysts at
brokerages including CLSA Ltd. have said.
here's the full story:
By Chen Shiyin
Jan. 2 (Bloomberg) -- Singapore’s fourth-quarter private
home prices declined 5.7 percent, the steepest drop in a decade,
as the global financial crisis and an economic recession
deterred buyers.
The price index of private residential property fell to
163.4 points in the three months ended Dec. 31, from 173.30 in
the previous quarter, the Urban Redevelopment Authority said in
a statement on its Web site today. That’s the largest drop since
the three months ended Dec. 31, 1998, according to data tracked
by Bloomberg.
Home prices have retreated for two straight quarters,
ending a four-year rally. The island-state said today its
economy may shrink by as much as 2 percent this year, the first
contraction since 2001, amid the worsening global recession.
Prices for apartments in the so-called core central area
dropped 6.3 percent in the three months ended Dec. 31 and
slipped 5.5 percent elsewhere in central Singapore, according to
the Urban Redevelopment Authority. They fell 4.7 percent across
other parts of the island, today’s report showed.
Today’s data is based on transactions in the first 10 weeks
of the quarter, the government agency said. It will provide an
update in four weeks.
CapitaLand Ltd., Southeast Asia’s largest developer, rose
3.9 percent to S$3.23 at the 12:30 p.m. break in Singapore
trading. The shares dropped 50 percent last year, its largest
loss on record.
City Developments Ltd., Singapore’s second-largest real
estate company, added 3.5 percent to S$6.59. Keppel Land Ltd.,
the third-biggest, climbed 2.9 percent to S$1.75.
The government agency said on Dec. 19 about 10,450
unfinished homes were sold under a deferred mortgage plan that
allowed buyers to postpone taking out loans equivalent to as
much as 90 percent of the property values until they were
completed.
Some of those homes may be at risk of default or so-called
distressed sales if prices decline further, analysts at
brokerages including CLSA Ltd. have said.
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