Connect with Us     

NEW LAUNCH PROPERTY - SINGAPORE PROPERTY PORTAL

Connect with Us               

Developer Sales Enquiry: 9789 8770

New Property Dream News Blog

Be Updated Daily with the New Happenings in the Property Market!
"Hit" the 'Subscribe to blog' on your right for Daily Property News Updates!

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.
  • Login
    Login Login form

Big fall in property prices unlikely: report

Posted by on in Uncategorized
  • Font size: Larger Smaller
  • Hits: 92463
  • Subscribe to this entry
  • Print
It would take an interest rate shock, poor GDP growth, or both, to bring down private property prices here noticeably over the next five years, a study said.

Analysts are anticipating that prices will fall as a record supply of land comes on stream and as the US Federal Reserve tightens monetary policy.

It is forecasted that prices will rise by about 8 per cent by the end of 2017, based on the central scenario from a modelling. The report also said that not all of the government's cooling measures have been effective in bringing down prices, even if they have dampened transactions temporarily.

If government land releases stay at the same "rapid pace" of around 16,000 units each year, prices will come down around one per cent by 2017, the report said, which indicates that an oversupply is unlikely.

However, if this scenario coincides with a meaningful GDP or interest rate shock, prices would obviously fall much more.

A GDP shock ?is defined as a scenario where output expands by a total of 5 per cent over the next five years, and assuming that loans and the Straits Times Index grow at the same pace.

Property prices will drop 16 per cent under this scenario.

Describing such a development as "unlikely" but "not impossible", Credit Suisse said the bank had predicted that GDP will shrink by more than 9 per cent in the scenario of a full-blown eurozone break-up.
But if nominal output can grow by 7 per cent each year, with the same assumptions, prices will surge 23 per cent by 2017.

As for interest rates, Credit Suisse expects prices to fall a cumulative 14 per cent between 2013 and 2017 if the Singapore Interbank Offered Rate rises to 7 per cent in that time.

It said rates have not reached that level since the 1998 Asian financial crisis, and there has to be a very strong growth or a sharp pick-up in inflation in the US economy to see such a high rate returning, due to the close links between the US and Singapore economies.

Credit from Business Times - 7 December 2012
Rate this blog entry:
0
 

 

To all Real Estate Investors and Future Property Owners,

Hello there, this is Sky Chiu, your Singapore Real Estate Advisor, welcome and thank you for reading through to my News Blog! If you would like to be updated with the Property Market Insights, Do Subscribe to my Blog or via RSS on the Top Right of this page!


With 9 years of experience in real estate business, equipped with in-depth property market and new projects knowledge and insights, i committed to give all my valued clients detailed and clearer analysis before they committed to their dream home - whether you are a first time property seller, an experienced property investor, a first time property buyer or a foreigner looking to move into Singapore.


My dedicated services cover my valued clients through the whole process - selling the property at the Highest Possible Price, finding the Right property, negotiating the for the Best Price, to making an Offer and closing the Best Deal. As your Personal Real Estate Consultant, i am here to help you in everything to make the best real estate decision in your life. Your Satisfaction is My First Priority!

 
Phone Support

 

YOUR DEDICATED PROPERTY ADVISOR

We have a group of very experienced property advisors with in-depth property market and new projects knowledge and insights to give our clients a detailed and clearer analysis before they committed to their dream home from us.

We identify our clients' needs, help them to restructure and maximise their property portfolios. We successfully advised and helped our clients on their loan restructuring and financial timeline management on their property investment.

Contact Us for An Non-Obligatory Discussion Today!

 

DIRECT DEVELOPER PRICE

Danish candy sesame snaps sugar plum candy canes sweet donut sugar plum

 

DIRECT DEVELOPER PRICE

Danish candy sesame snaps sugar plum candy canes sweet donut sugar plum

 

NO COMMISSION

Danish candy sesame snaps sugar plum candy canes sweet donut sugar plum