TSI
Falling property prices in Singapore expected to dive next year by up to 20%
Singapore's private residential property prices experienced steady declines in September, according the latest quarterly data from the Urban Redevelopment Authority. Both private and public home prices continued to slip in the third quarter of the year. Private home prices fell 0.6% and are now down 3.8% on an annual basis. This is the fourth straight decline, albeit a slight deceleration, after a fall 1.0% in the second quarter. But private home prices are still 56% above the last trough in 2009. Public housing continued to fall for the fifth straight quarter by 1.6% compared with 1.4% in the second quarter of the year and have now fallen 6.8% from the peak of the market. In August sales fell 15% month on month and 43% year on year. It is the lowest monthly figure since December 2013. But the outlook is pessimistic, according to a report from Barclays which says that prices are expected to plunge by 20% in 2015, with vacancy rates expected to hit a record high 10% in 2016. According to Barclay's, the drop is in view of market expectations of rising interest rates, and will coincide with peak supply as unsold inventory rises across both high and low end property sectors. ‘We expect both volumes and prices to slide given the ongoing government curbs, looming oversupply, and rising interest/mortgage rates in the second half of 2015. We maintain our negative stance on the Singapore residential sector,’ the report says. ‘We see an oversupply of private housing properties and we expect prices to fall 20% by 2015, in view of market expectations for interest rates to rise, coinciding with peak supply and our assumption that the vacancy rate could reach a record 10% by 2016,’ it adds. ‘We believe the government will only start unwinding measures when prices fall a cumulative steeper 10 to 15%, perhaps in the middle of 2015,’ it concludes. Continue reading
Non home owners in the UK despair at lack of affordable housing to buy
British house hunters feel increasingly disenfranchised by the lack of affordable housing, new research has found. The latest official figures show that population growth in the UK has exceeded 400,000 and with only 134,460 new properties completed over the same one year period there aren’t enough new homes being built to meet that demand, let alone tackle the backlog of years of underdevelopment. Against this backdrop, research from Gocompare.com Mortgages has revealed the effect that the gap between housing supply and buyer demand is having on people’s attitudes to home ownership. It has found that the lack of affordable housing in the UK has resulted in people taking a dim-view of their prospects of getting onto the property ladder. Of those looking to buy a home some 26% feel that the UK is becoming a two tier society of property haves and have nots and 23% expect only be able to buy a home if they buy with someone else. Though 18% say that the government is responsible for the shortage of affordable homes, 14% think that buy to let landlords are to blame, and 17% don’t think that they will ever own their own home. Some 12% said that it angers them that they can’t afford to buy a house in the neighbourhood where they grew up and 10% think that the only way they’ll end up owning a property is if they’re left one in a will. It also appears that people could be forced to move around the country to put down roots. Over a quarter, 29%, of would be home buyers said that they’d have to stretch themselves financially or borrow money from friends or family to find properties in the areas where they want to live. As such 20% say that they have had to expand their search to towns and cities outside of their preferred area, while 14% have come to the realisation that if they want to live in their chosen region they’ll have to rent. And 6% are so fed up that they have completely given up looking for a home to buy. Those surveyed said they would consider moving, on average, up to 26 miles away from their preferred location to find an affordable home and 21% would expand their search to between 26 and 50 miles, while 5% would look for housing more than 101 miles away. ‘It’s easy to see why people feel so frustrated with the UK’s housing market. Not only are there not enough houses being built, but people face having to move away from their friends, families and home towns if they want to buy a home of their own,’ said Matt Sanders, spokesperson for Gocompare.com Mortgages. ‘It’s clear that the government needs to do more to help address the lack of affordable housing if people are to take part in that most British of pursuits, owning a home. Everyone has a right to buy, but not everyone has the ability to do so. Schemes like… Continue reading
Sales up over 50% year on year in prime Alpine resorts
The prime ski property market in the Alps is continuing on its upward path with sales volumes up 52% year on year, according to the latest index from Savills. More alpine sales are taking place at lower price points as the resilience of the ultra-prime markets starts to ripple down the market ladder, according to the report. ‘A year ago we predicted prolonged periods of sunshine and blue skies for the Alpine property market. This may have been a somewhat easy prediction, given a recovering world economy, increased confidence and job security and in the case of UK buyers, a steady strengthening of sterling,’ said Jeremy Rollason, managing director, Alpine Homes. ‘The Alpine property market however continues its upwards trajectory in terms of increasing sales volumes, up 52% year on year, although this does not necessarily mean rising prices,’ he explained. ‘While buyers are more prolific for the above reasons, prices in the Alps have not generally kept pace with house price increases back in the UK, particularly in London,’ he added. The index report points out that Switzerland’s position outside the European Union cements is appeal as a safe haven for wealth and as such resorts carry a price premium. In the case of Verbier, values can reach €22,400 per square meter or 80% more than the average. It’s therefore no surprise that five Swiss resorts, Gstaad, St Moritz, Zermatt, Verbier and Crans Montana, appear in the Savills Top 10 Ultra-Prime Resorts Index. The family friendly resort of Saas Fee stands out as offering a long season with good quality snow but with comparatively lower priced property at averages of between €4,000 and €8,000 per square meter. ‘Verbier and The Four Valleys remains ever popular and is the destination of choice for many international buyers. Supply restrictions with the new Lex Weber law limiting the number of second homes to no more than 20% of the total will begin to bite in the next one to two years, once existing supply is absorbed. Upwards price pressure in the leading Swiss resorts is inevitable, although there are still deals in the resale market for those that shop around,’ he added. Austria’s comparative affordability, dual seasonality, diverse culture and attractive rental returns make it the country of choice for those chasing bang for their buck. Indeed, rental returns of ski property in Austria are roughly double those of either France or Switzerland, at circa 5% to 7% gross. Kitzbuhel is the only Austrian resort included in the Savills Top 10 Ultra Prime Resorts Index where prices range from €8,000 per square meter to €15,000 per square meter. For buyers seeking value, Bad Gastein and Zell am See offer lower priced property and average ski conditions, although the latter boasts a particularly strong summer season. The resort of Ischgl, the Ibiza of the Alps, is highlighted as one to watch. Prices here are under €4,000 per square meter. Stability is… Continue reading
