Home prices may slide when interest rates rise

Jun 23, 2011 - PropertyGuru.com.sg

   
Prices of residential properties in Singapore may decline by up to six percent when interest rates start rising, said a senior executive from Cheung Kong (Holdings) in a report by Reuters.

However, the red-hot housing market in Singapore, as well as in China and Hong Kong, are unlikely to see a collapse.

Home prices in these three countries have climbed this year, due to low interest rates and strong economic growth. But this has resulted in growing concern over a property bubble and forced the governments to implement cooling measures to curb prices.

“In Singapore, because the government has always been paying attention to the housing market, I would say the fluctuations would be much smaller, in the single-digit range," said Justin Chiu, Executive Director at Cheung Kong. “Even if it were to come down, it will probably be five, six percent maximum.”

Chiu saw slowing activity in the overall housing market, with fewer transactions taking place in Singapore.

Sales of new private homes in the country dropped 13 percent in May from the previous month, said the Urban Redevelopment Authority (URA), signalling greater caution among buyers, amid efforts by the government to curb the housing market.

Although property market bubbles in Singapore, China and Hong Kong have raised concerns of a collapse, Chiu does not see this happening, as non-speculative demand for houses has remained firm, buoyed by robust economic growth.

However, the residential market in Hong Kong is more speculative than Singapore’s, as it has more international buyers. Hence, Chiu said it could expect bigger fluctuations than Singapore.

“Hong Kong, Singapore (and) China won't see a collapse but there'll be some minor fluctuations, adjustments, correction as a result of government actions and buyer sentiment, but this won't lead to a major collapse.”

Hong Kong, which is home to the most expensive residential and office properties in the world, has experienced home price increases of 12.5 percent this year. Like its Asian neighbours, it has imposed policies to cool down speculative demand, such as lowering loan-to-value ratios and slapping stamp duties on short-term transactions.

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长江实业执行董事赵国雄：新加坡房市不会崩盘

 

（2011-06-23）

● 《早报》于泽涵 报道

　　新加坡的房地产市场不会出现崩盘，但升息可能会造成房地产价格出现单位数的调整。

　　长江实业执行董事赵国雄昨天谈到本地私宅市场时，发表了上述看法。虽然他没有预测房市出现调整的具体时间表，不过他指出，现在的经济表现很好，加息将是导致房市调整的一个因素。

　　经济的蓬勃和低利率的借贷环境，让本区域的房地产价格持续走高，各经济体也不断出手为房地产降温。

　　赵国雄表示，相信没有一个经济体希望看到房地产市场崩盘，而是希望能够让市场保持在稳定状态。政府推出的政策，市场情绪将为房地带来一定的波动和调整，但不至于让市场垮掉。

房价可能出现

5％至6％调整

　　“新加坡政府一直密切注意房地产市场的走向，相信波动幅度会比较小，可能会出现单位数的调整幅度，估计会在5％，最高达到6％。”

　　他也表示，整体上房地产市场有所放缓，本地的交易量也出现下滑。

　　上个星期公布的5月份私宅销售数据显示，私宅市场温度有所下降。由发展商直接出售的新私宅单位比4月份少接近13％。

    赵国雄指出，与新加坡相比，香港的房市中有更多的国际买家，因此炒气更重，调整幅度也会比新加坡来得大。

　　他昨天出席长江实业位于汤申路上段的 Thomson Grand的开幕仪式。这个位于新加坡岛屿俱乐部附近的99年地契私宅项目，包括九座高层建筑中的339个公寓单位和22个分层地契共管排屋 （strata terrace units）。公寓单位包括两房、三房、四房式，还有花园单位和顶层豪宅。

　　长江实业争取在7月推出公寓第一期项目约50个单位，平均价格将在尺价1400元以上，但之后推出的单位价格尺价可能被调高。

　　长江实业的营业经理何家欣指出，Thomson Grand可以看到网球场、贝雅士蓄水池下段、碧山公园等自然景观，该项目在设计上也下足功夫，尽量让所有的单位都能一览自然美景，并拥有足够的私人空间。

　　她也提到，不少目前居住在该地段附近的居民对该项目的反应不错，其他地区的买家和投资者也表达出兴趣。

　　至于22间分层地契共管排屋，价格还没有最后确定，但表达出购买兴趣的买家已经供不应求。

　　何家欣表示，很多附近的与有地私宅已经很旧了，住户希望能提升到宽敞的新屋，因此他们对Thomson Grand分层地契共管排屋都很感兴趣。

　　此外，长江实业最近在香港特区政府地皮拍卖中颇有斩获，据赵国雄透露，今年上半年长江实业在香港销售了2100个单位。

　　那么，长江实业在新加坡的发展计划又是怎样的呢？

　　赵国雄表示，住宅房地产方面，长江实业将专注于小众高档买家，不打算参与本地大众化私宅的竞争。在商用房地产方面，作为一个外国的发展商，长江实业更愿意参与大规模的项目发展。

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