It was reported that:
- Sales of new private housing dropped by almost 35% in January 2015 compared to a year ago.
- However, sales were up by 62% if compared to the previous month.
It’s definitely a buyers’ market out there. Happy are those with large amount of cash to make purchases and woe to those who are over-committed and over-leveraged.
Update 28 February 2015:
Mr. Augustine Tan, president of the Real Estate Developers' Association of Singapore (Redas) predicted that residential vacancy rates here could surge to record highs given the number of new properties set to hit the market. He said this in his speech during the Redas Spring Festival Lunch. He also said:
- Vacancy rate at end of last year was 8% (which was 54% more than 1998 when vacancy rate peaked);
- This will impact home rentals and properties prices downwards;
- More then 75,000 new private residential homes are expected to be completed from now until 2019.
My comments: Happy are those with lots of cash! I am glad I asked some of my clients not to buy properties for the past few years.
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