All signs point to buyers getting their ways and are also playing a waiting game, believing that sellers will blink first. According to some properties agents, it used to take about two or four weeks to sell an apartment. Now some apartments on the market for more than three months still not taken up.
Presently the private property prices have indeed fallen, some by as much as 25 per cent over the past year. ST Life did a check on 10 condominiums across the island to compare the difference between their highest and last transacted prices. Apartments compared are similiar in size, floor level and direction. The article appeared on Saturday, 17 January 2009.
1) Yishun Emerald, Canberra Drive : Dec 2007 - S$555k down to Oct 2008 at S$406k @ $543 psf and $397 psf resp. for apartment size of 1,023 sq ft - percentage drop : 26%
2) Cairnhill Crest, Cairnhill Circle : July 2007 - S$3,985k down to Oct 2008 at S$2,920k @ $2,300 psf and $1,685 psf resp. for apartment size of 1,733 sq ft - percentage drop : 26%
3) The Bayshore, Bayshore Road : July 2007 - S$819k down to Oct 2008 at S$695k @ 810 psf and $687 psf resp. for apartment size of 1,012 sq ft - percentage drop : 15%
4) Grandeur 8, Ang Mo Kio Central 3 : Aug 2008 - S$899k down to Nov 2008 at S$747k @ $733 psf and $609 psf resp. for apartment size of 1,227 sq ft - percentage drop : 16%
5) Avila Gardens, Flora Road, Loyang : Aug 2007 - S$812k down to May 2008 at S$681k @ $614 psf and $515 psf resp. for apartment size of 1,324 sq ft - percentage drop : 16%
6) The Sea View, Amber Road : Nov 2007 - S$2,368k down to Nov 2008 at S$2,249k @ $1,438 psf and $1,366 psf resp. for apartment size of 1,647 sq ft - percentage drop : 5%
7) Newton Suites, Newton Road : Feb 2008 - S$2,4143k down to Dec 2008 at S$1,809k @ $1,950 psf and $1,462 psf resp. for apartment size of 1,238 sq ft - percentage drop : 25%
8) The Centris, Jurong West Central 3 : Jan 2007 - S$635k down to Dec 2008 at S$564k @ $596 psf and $530 psf resp. for apartment size of 1,066 sq ft - percentage drop : 11%
9) The Raintree, Bukit Drive : May 2008 - S$909k down to Oct 2008 at S$839k @ $716 psf and $661 psf resp. for apartment size of 1,279 sq ft - percentage drop : 7%
10) Tanglin Regency, Tanglin Road : Aug 2007 - S$980k down to Nov 2008 at S$930k @ $884 psf and $839 psf resp. for apartment size of 1,109 sq ft - percentage drop : 5%
Analyts are predicting further uncertainty in the economy and home prices may fall another 10 to 20 per cent. On the other hand, it's tougher to secure bank loans now. Banks are more cautious these days. During good times, loan would be approved within 24hours. Currently, it can take as long as two weeks. The loan quantum is also down from 90 per cent to most usually offer 80 per cent. Loan quantum refers to the size of a loan in relation to a property's market valuation. There has been cases where the bank's valuation of an apartment is lower that what a seller is asking for.
Accordingly to industry insiders say loan are generally smaller or harder to secure for the following people :
1) Those on commission-based income or are self-employed, compared to employees on fixed salary.
2) Applicants who are single, compared to married couples with dual income.
3) Those who have just started work.
As the saying goes, CASH IS KING. In times of economic stress & you are in a better cashflow position it is more prudent to consider a smaller loan to ensure that you do not over-extend yourselves and in my opinion, banks are more willing to approve such loans.
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