Rents fall further

[x9200]

Article about rents continuing to fall:
http://www.businesstimes.com.sg/real-es ... -scenarios

and another good one, about renting v/s buying:

http://www.btinvest.com.sg/property/loc ... t-depends/

Having my TA to be renewed very soon (or to be looking for a new place) I wonder what are the trends and the market dynamics now?

[Barnsley]

I dont know what they were paying , but a couple of friends just got a $500 a month reduction on contract renewal

[Brah]

I overheard a discussion between some foreign real estate types who were talking about it currently being a buyers market, but this could change towards the end of the year. The end of year part could possibly not be the case for renters.

Not particularly useful, I too would like to know what the trends are for the same reason but a little down the road.

[x9200]

I have the impression that the rents fall is slowing down, but it's more like a gut feeling.

[JR8]

http://www.savills.com.sg/research/resi ... earch.aspx

Their quarterly research reports are professional-level research, and they're non-sub/free. A good way of keeping up to date on longer term trends, incl how it ties into government policy like ABSD, visa quotas, and so on. That is my go-to source when I'm negotiating a renewal of a tenancy agreement, as it means I go into any negotiation completely informed, and able to 'bat out the way' any self-interested bull$ from the agents involved.

I've also subscribed to their country-level e-mails which are in part news round-ups from the local press and cover all property sectors. Those might be each two weeks or monthly... I forget now. Only about a page long, takes a minute to skim. This gives an overview of new developments, malls that are dying a death, en-bloc deals, transport infrastructure and so on.

The two together give a feel that I have a reasonably informed overview on what is going on. The latter e-mail can also be useful; for example it's where I picked up that Pasar Bella ('farmers market') are opening a branch in Suntec, the pretty excruciating slow demise of Clarke Quay, and so on.

[Wd40]

IME there has been a one off downward adjustment in rents in the last 1-2 years. So it depends on whether you already got a discount during the last renewal. Some people renewed leases at the peak for 2 years. So these guys can expect a big discount. The best thing is to do some research on p guru site and call up agents for properties close to your house and the quote much lower prices and then see what their response is.

[the lynx]

Still going down. Been having intense discussions with friends who are renewing this year. Renter's market. The decline of expats is forcing landlords to face either empty units with mortgage piling up, or reduce rent and keep current tenants. So if you like your current place, try to seek reduction. Because chances are that you will always be able to find cheaper and batter places, or your landlord will be looking at empty unit or high-risk tenant.

[Barnsley]

Still going down. Been having intense discussions with friends who are renewing this year. Renter's market. The decline of expats is forcing landlords to face either empty units with mortgage piling up, or reduce rent and keep current tenants. So if you like your current place, try to seek reduction. Because chances are that you will always be able to find cheaper and batter places, or your landlord will be looking at empty unit or high-risk tenant.

A dose of reality after milikng folk during "the good times"

[Primrose Hill]

with the election coming, do you think that the govt may react favourably given that the TDSR and the ABSD is having a negative effect on the housing prices?

[Barnsley]

with the election coming, do you think that the govt may react favourably given that the TDSR and the ABSD is having a negative effect on the housing prices?

What do you mean by "favourably" ..... Try and inflate the bubble again?

I think thats more likely to see them get the chop....

[Primrose Hill]

with the election coming, do you think that the govt may react favourably given that the TDSR and the ABSD is having a negative effect on the housing prices?

What do you mean by "favourably" ..... Try and inflate the bubble again?

I think thats more likely to see them get the chop....

not the bubble but something has to give right. more TDSR and increase ABSB both are killers

[Wd40]

I think everyone is expecting a 10% correction and that is desirable. So the gahmen won't be too worried about it and I don't expect any changes in tdsr or absd. If prices fall 20% then we can see gahmen stepping in.



http://www.businesstimes.com.sg/real-es ... ars-report

[Brah]

Still going down. Been having intense discussions with friends who are renewing this year. Renter's market. The decline of expats is forcing landlords to face either empty units with mortgage piling up, or reduce rent and keep current tenants. So if you like your current place, try to seek reduction. Because chances are that you will always be able to find cheaper and batter places, or your landlord will be looking at empty unit or high-risk tenant.

A dose of reality after milikng folk during "the good times"

Around 2008-10 I remember hearing from RE agents how the price jumps were to make up for all the post-'97 (?) years of lost revenue from the depressed market.

[calugaruvaxile]

with the election coming, do you think that the govt may react favourably given that the TDSR and the ABSD is having a negative effect on the housing prices?

the rents won't go up either way. simply there is not enough demand. the businesses consider Sg already too expensive. push prices up now = kill the golden goose ...

asking prices go up? great but ... who's gonna pay for that? the interest rates are climbing (no more free money!) and with rents not moving up, the high prices are simply too much. oh, that's part of the reason why transactions are stalled even nowadays. yes, the official statement is that "people expect further drops", but truth is, sg incomes are already low compared to the costs of living (which are really high!!).

quite honestly, i have no idea how to get out of this squeezy situation softly; but on the other hand, maybe they deserve it for their aggressive milking during the "good days". i call this "indirect tax on doing business in sg":).

[calugaruvaxile]

Around 2008-10 I remember hearing from RE agents how the price jumps were to make up for all the post-'97 (?) years of lost revenue from the depressed market.

those days when every local family counted at least one REA ?
truth is, around 2005 there were clearly not enough flats to meet the demand (locals and foreigners). but instead of adopting a gradual approach, the island started a construction frenzy which is still going on today (when the opposite is true, i.e. there is an over-supply of housing, offices and industrial space). nowadays, all sg looks like central hk as it's seen from the peak.