Housing prices are not projected to rise indefinitely Desmond L

Housing prices are not projected to rise indefinitely: Desmond L

Singapore – According to National Development Minister Desmond Lee, there are indications of a slowdown in both the public and private housing markets like Grand Dunman; therefore rising home prices in Singapore are not predicted to continue indefinitely.

In an interview with The Straits Times and the Chinese daily Lianhe Zaobao on December 28, Mr. Lee noted that he expected mortgage rates to stay high, which would affect buyers and homeowners.

“We anticipate that interest rates will stay high for an extended period of time, and the current rates range from 3.7% to 4.4%, so that will have an effect,” he stated.

The COVID-19 epidemic increased demand for housing, as seen by an 80% increase in first-time Housing Board Build-To-Order (BTO) flat applicants between 2020 and 2022 as compared to 2017 and 2019.

Longer wait times for BTO apartments were caused by the pandemic’s effects on labor, supplies, and building, which pushed some buyers to the resale market and raised prices, according to Mr. Lee.

Demand was bolstered by the demographic shift towards smaller households, however, some applicants applied for a flat earlier than planned due to the delays and uncertainty associated with BTO flats.

In 2023, the Government Land Sales program verified 15 sites, resulting in the release of 9,250 units of private housing. This marked another increase in the land supply for housing. According to Mr. Lee, this is the highest in ten years.

In the first half of 2024, an additional 5,450 units spread across 10 locations are scheduled for release. Since the first half of 2021, this will be the ninth consecutive half-yearly increase in supply.

2023 saw the completion of over 42,000 public and private dwellings, consisting of about 20,400 private units and 21,400 HDB apartments near the Grand Dunman Showflat. He said that since 2017, this was the largest yearly supply of finished homes in both markets.

In both markets, there were indications of deceleration even as real estate prices kept rising. According to official flash estimates, private property prices increased 6.7% in 2023 compared to 8.6% in 2022, while HDB resale prices increased 4.8% in 2023, less than the 10.4% increase in 2022.

Mr. Lee was questioned about whether the government would boost subsidies for apartments in desirable locations if the cost of resale increased. In addition to the current BTO subsidies, apartments under the prime location public housing (PLH) model receive additional funding.

The additional subsidies for two PLH projects were increased in the BTO launch in December 2023 in response to growing resale market pricing. For these apartments, the subsidy clawback was increased to 8% from 6% for previous PLH projects.

In response, Mr. Lee stated that various steps are being taken to control supply and demand in order to stabilize the real estate market.

Mr. Lee responded that the government’s philosophy is to “consume the resources we need to benefit our generation but always keep thinking about future generations, knowing that this will not benefit us directly” in response to a question about how the authorities are garnering support from Singaporeans for the significant undertaking despite it being far in the future.

In light of the possibility that some or many of us won’t live to see its protection or advantages, he remarked, certain decisions must be made.

Suggested Article: Climate Alpha, located in Singapore, studies how climate change may affect the value of real estate

Climate Alpha, located in Singapore, studies how climate change may affect the value of real estate

Climate Alpha, located in Singapore, studies how climate change may affect the value of real estate

Climate Alpha was founded by a globalization and geography specialist and is an artificial intelligence platform that aids property owners and investors in assessing the effects of climate change on their holdings. Today, the Singaporean business revealed on Treasure Tampines it had secured $5 million in initial investment of Treasure at Tampines Price List, with the help of Jungle Ventures’ innovative First Cheque@Jungle program for seasoned entrepreneurs.

American house builder Lennar Corporation is one of Climate Alpha’s clients who has again announced a Treasure at Tampines E Brochure. Other clients include Oaktree Capital and BentallGreenOak, both of which are large investment firms.

To better inform property owners on how climate change may affect their investment, the platform makes use of Geographic Information System (GIS) data and economic modeling. It also leverages public and private data sources and proprietary machine learning algorithms to provide estimates of climate change’s financial effect.

Parag Khanna published “Move: Where People are Going for a Better Future,” a book on how climate change, geopolitics, and tech are affecting where people live, before launching Climate Alpha.

While writing the book, Khanna and his brother helped their parents choose climate-resilient retirement homes. Parag urged FutureMap research director Kailash Prasad to link climate characteristics to property value estimates. Climate Oases, a FutureMap practice area, became Climate Alpha. The Singaporean government gave Climate Alpha a data science grant during the outbreak. It also collaborated with Lennar and Capitaland.

Real estate has gone up and to the right for decades, but that’s changing owing to climate change, increasing insurance, demographic outflows, high-interest rates, changed investment patterns, etc., Khanna added. “We model these complex interactions to give more confidence in where—and where not—to invest.”

Climate Alpha provides physical climate risk statistics, estimates, and assessments for every region using industry-standard climate models, and demographic, and economic data. It may also incorporate electricity grid dependability and economic momentum, which can reduce risk in the US and Canada (with more added). Climate Alpha helps investors make judgments by comparing its predicted economic and asset growth to past patterns.

Suggested Article: Singaporean oil trader OK Lim’s fancy bungalow sold for less than the asking price

Singaporean oil trader OK Lim's fancy bungalow sold for less than the asking price

Singaporean oil trader OK Lim’s fancy bungalow sold for less than the asking price

A high-end home like Riverfront Residence in Singapore, owned by the head of the now-defunct oil company Hin Leong Trading Pte. did not sell at auction for the price that was expected on Riverfront Residences Price. This is another sign that demand for expensive homes like Riverfront Residences Showflat is decreasing.

People thought the “good class bungalow” was the best home in the city. It sold for just under S$26.5 million ($19.8 million), which is 12% less than the S$30 million target price.

Property sales and renting records show that deals on high-end homes in Singapore have slowed down in recent months. This could be the worst year for sales of high-end bungalows in ten years. In the third quarter, prices of landed houses fell 3.6%.

The houses that Lim Oon Kuin owns are among the things that his family has that are frozen by a court order. Lim is currently in court on charges of cheating and forgery because his oil company owes banks about $3.5 billion.

In September, the private two-story house was put up for auction to the public. The tender says that the sale can only happen if Singapore’s high court or Hin Leong’s liquidators agree to it.

According to a statement from Mary Sai, the executive head of Knight Frank, they looked for very wealthy clients to help them sell the house that sits on about 15,000 square feet of land. Most Singaporeans can’t get GCBs because they are too expensive for most people and are valued in part because they are so rare.

This is Lim’s second GCB that has been sold in Bukit Timah, which is the biggest and best neighborhood in the city-state. The buyers in neither sale were made public. Visit the Portico site daily.

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