The January 2014 fire in Marina Bay Suites that finished in two casualties had another unsettling impact: it exposed the state of this current market, with less than 10 percent of the condos occupied by owners, regardless of the fact that 90 percent of these had already been sold by the developer. 3-bedroom units in precisely the identical development are quoted to price S 3 million, while 4-bedroom condos price around S 6 million. Among 3 penthouses there was sold for a staggering S 19.3 million. The absence of job of these units at Marina Bay Suites indicates that owners of luxury condos face problems in renting out their condos in the costs they prefer.
After this observation, concerns grew regarding a Possible chill in the Remaining residential property market, also, but they were immediately disparaged by a Savills report, demonstrating a listing 15,083 rental transactions were signed during the 3rd Quarter of 2013, the most recent for which information was available from the 1st Quarter of 2014. The URA Urban Redevelopment Authority released information showing leases holding up. For the next quarter in 2013, the indicator for personal residential properties rose by 0.2%.
But, beginning with the next quarter of 2014 the danger of this Chance of an oversupply is a cause for concern, as 17,459 units left empty in the 3rd Quarter of 2013 and another 26,000 units anticipated to be completed in 2014 will crowd the real estate industry along with Pasir Ris 8. A component of those units is expected to be inhabited by Housing and Development Board level upgrades.
Another concern is the Lot of shoebox units scheduled to be released on the rental sector. SREX Singapore Real Estate Exchange quotes report lots of 6,550 private apartments and condos resold in 2013, in contrast to the 12,278 resold in 2012. Because of the capping of home loan applicants’ total monthly debt payments to 60 percent of the overall income, November and December 2013 enrolled less than 400 resale units transacted monthly.
However, most property investors are aware of the situation from the 2014 Residential property market, with the vast majority of them believing they are ready to stand the upcoming oversupply, provided that they have the ability to repay their monthly obligations and mortgage interest rates stay low. The staggering decrease in new home sales to 259 units in January 2014 From 1,410 units sold in December 2012 and 1,271 sold in November 2012 could be one explanation for Singaporeans’ reluctance to purchase. We are a Singapore Mortgage and Compare Home Loan consultancy company offering free expert advice on compare home loan mortgage financing bundles utilizing the most innovative loan analysis system.