Singapore Expats Forum
 

Will home sellers lower prices?

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
Post Reply
User avatar
abbby
Reporter
Reporter
Posts: 804
Joined: Thu, 21 Jul 2005 3:00 am
Location: Tiny Island

Will home sellers lower prices?

Post by abbby » Tue, 19 May 2020 1:17 am

I do find many home seller kind of greedy still, in the current market situation, home sellers are still asking for sky high prices for their properties averaging from $1,600 psf to $2,500 psf. Seems like reality has not hit them? ](*,)
The secret of life is honesty and fair dealing. If you can fake that, you've got it made. - Groucho Marx (1890-1977)

Singapore Property Search

 

User avatar
PNGMK
Governor
Governor
Posts: 7180
Joined: Thu, 21 Mar 2013 9:06 pm
Location: Sinkapore

Re: Will home sellers lower prices?

Post by PNGMK » Tue, 19 May 2020 8:04 am

Prices will go up actually once Singapore has become a safe haven because we have a competent government and people will be fleeing hot spots once they can travel.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

User avatar
Max Headroom
Reporter
Reporter
Posts: 749
Joined: Wed, 08 May 2013 11:31 am
Location: Singapore
Contact:

Re: Will home sellers lower prices?

Post by Max Headroom » Tue, 19 May 2020 9:20 am

Just because people want to stay in Singapore doesn't mean it's going to happen. In fact, it's pretty clear that inflows have been pinched to a mere trickle already.

What we need to understand is that the fat property years are well and truly behind us. Going from a couple of million people to 6 million invariably involved rising real estate prices. Huge demand, so-so supply mah.

However, going forward, population growth - if any at all - will remain minimal/negligible.

Meanwhile, the property ecosystem lags behind the curve, due to their typically pretty long operating horizon; the overhang, for instance, is still hugemongous.

In addition, they tend to do everything they can do keep pricing artificially sticky during downturns, usually with freebies and other incentives. While stocks last :)

I reckon whichever way you slice it, it's lean years lai liao leh.

mary_tan
Newbie
Newbie
Posts: 15
Joined: Tue, 05 May 2020 4:26 pm

Re: Will home sellers lower prices?

Post by mary_tan » Tue, 26 May 2020 1:29 pm

Homeowner wants sell at high price but buyer want to buy low!!!! Everywhere is the same!!!
Homeowner need to be educate that the supply exceeds demand!!!! Or they'll be holding the property to the grave yard!!! :P :P :P

User avatar
abbby
Reporter
Reporter
Posts: 804
Joined: Thu, 21 Jul 2005 3:00 am
Location: Tiny Island

Re: Will home sellers lower prices?

Post by abbby » Tue, 26 May 2020 1:36 pm

I do see people still holding up their prices really well and High...market still not affecting them I guess.
The secret of life is honesty and fair dealing. If you can fake that, you've got it made. - Groucho Marx (1890-1977)

User avatar
PNGMK
Governor
Governor
Posts: 7180
Joined: Thu, 21 Mar 2013 9:06 pm
Location: Sinkapore

Re: Will home sellers lower prices?

Post by PNGMK » Tue, 26 May 2020 3:02 pm

Interest rates are low, rental returns aren't great but they are better than bank deposit returns... why sell low? (Also I suspect construction of new properties will be hammered for a few years drying up supply as there will be a shortage of construction workers for some time).
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

User avatar
Wd40
Director
Director
Posts: 4000
Joined: Tue, 04 Dec 2012 10:53 am
Location: SIndiapore

Re: Will home sellers lower prices?

Post by Wd40 » Tue, 26 May 2020 10:26 pm

abbby wrote:
Tue, 26 May 2020 1:36 pm
I do see people still holding up their prices really well and High...market still not affecting them I guess.
It is too early to see any impact. 1st rents need to fall due to rising vacancies. Right now, most affected are workers from F&B, Tourism etc those at the lowest level who stay in dormitories etc.

I think there will be second order effects soon, when those of us working from home, are going to lose our jobs. There is no reason many of us are getting paid in Singapore dollars, while we could all sit in village in India and do the same job at 1/4th the salary as many of us from that village in India, housed here. So I see another bout of redundancies and offshoring next year. As houses remain vacant and owners dont get the rents to pay their loan installments, prices could fall.

User avatar
Max Headroom
Reporter
Reporter
Posts: 749
Joined: Wed, 08 May 2013 11:31 am
Location: Singapore
Contact:

Re: Will home sellers lower prices?

Post by Max Headroom » Wed, 27 May 2020 9:34 am

Good point, Wd40.

User avatar
abbby
Reporter
Reporter
Posts: 804
Joined: Thu, 21 Jul 2005 3:00 am
Location: Tiny Island

Re: Will home sellers lower prices?

Post by abbby » Wed, 27 May 2020 10:35 am

Good analysis, wd40. Have to agree with you on your points.
The secret of life is honesty and fair dealing. If you can fake that, you've got it made. - Groucho Marx (1890-1977)

User avatar
PNGMK
Governor
Governor
Posts: 7180
Joined: Thu, 21 Mar 2013 9:06 pm
Location: Sinkapore

Re: Will home sellers lower prices?

Post by PNGMK » Wed, 27 May 2020 11:37 am

I've been on this board for ~15 years. It's always clear who wants housing prices to fall and who doesn't. I remember reading a post here years ago where someone said "Look, stop buying into the belief that prices will fall because you have way too many renters here and the view is clearly biased and you've actually done harm to people by telling them to hold back on buying" or something to that effect.

If there is a dip it will be like previous recessions and that is triggered by landlords bailing out and too much stock on the market. It won't last long at all and it will be over before you can move I suspect. The very low liquidity in this market (really low) means it take very little change in volume for prices to "appear" to be going down or up dramatically but the harsh reality is that the stock rarely turns over that much. In Australia people buy and sell homes approx every 7 years. Here it's closer to two to three decades I'd bet.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Zhou Anqi
Member
Member
Posts: 27
Joined: Thu, 21 May 2020 2:13 pm

Re: Will home sellers lower prices?

Post by Zhou Anqi » Wed, 10 Jun 2020 10:29 am

really depends on the homeowner needs!!! If they can hold of course they don't want to sell low!

TropicalExpat
Member
Member
Posts: 43
Joined: Thu, 28 May 2020 5:02 pm

Re: Will home sellers lower prices?

Post by TropicalExpat » Sun, 12 Jul 2020 2:29 pm

Interest rates are so low at the moment so all I hear from those I know who are property owners is that they are soaking themselves in low interest rates.
Also i saw news [https://www.straitstimes.com/business/p ... o-covid-19] that the government will reduce the housing supply, like they did during the GFC which then led to one of the biggest bull runs in SG property.

User avatar
PNGMK
Governor
Governor
Posts: 7180
Joined: Thu, 21 Mar 2013 9:06 pm
Location: Sinkapore

Re: Will home sellers lower prices?

Post by PNGMK » Sun, 12 Jul 2020 9:21 pm

Gahmen has already pulled some site sales. Flippers are going mad trying to flip quick. The resale market is getting saturated by divorce sales apparently. Rentals vacancies are climbing and for all we know we could be in negative interest territory soon. Market is so insanely hard to read but I have been thinking about:

1. Overseas owners returning to Singapore as a safe haven (either PR or other types). That will pull some rentals off the market.
2. Overseas investors buying PR to get into a safe haven (Indonesians etc). They will buy remotely just to land.
3. Record low interest rates driving RE speculation up.
4. Pending shortage of new launches driving launches.
5. Some locals upgrading in case of renew CB or lockdown to a better home.
6. Mortgagee sales (forced) at low end of market.
7. Expats leaving so the expat rental market (which is really the urban fringe - not the TaiTai market) will suffer. That will eventually drive forced sales but some LL may just wait it out or the upgraders may pick these up.

In short I am not sure we are going to see a RE crash just yet.....
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Property Talk, Housing & Rental”

Who is online

Users browsing this forum: No registered users and 5 guests