The January 2014 fire at Marina Bay Suites that ended in two casualties had an additional unsettling effect: it exposed the state of your market place, with significantly less than 10 % with the condominiums occupied by owners, regardless of the truth that 90 % of them had already been sold by the developer. 3-bedroom units in the the development similar improvement are quoted to cost S$ 3 million, though 4-bedroom condos cost as much as S$ six million. One of three penthouses there was sold for any staggering S$ 19.three million. The lack of occupation on the units at Marina Bay Suites suggests that owners of luxury condos face troubles in renting out their condos at the rates they favor.
Right after this observation, issues grew concerning a possible chill in the rest of the residential house market, at the same time, but they had been rapidly disparaged by a Savills report, showing that a record 15,083 rental transactions have been signed throughout the 3rd Quarter of 2013, the most recent for which information was accessible inside the 1st Quarter of 2014. The URA (Urban Redevelopment Authority) released data displaying rentals holding up. For the third quarter in 2013, the index for private residential properties rose by 0.2 %.
On the other hand, beginning together with the second quarter of 2014 the threat of your possibility of an oversupply is really a cause for concern, as 17,459 units left vacant in the 3rd Quarter of 2013 and an additional 26,000 units expected to become completed in 2014 will crowd the house industry. A a part of these units are expected to be occupied by Housing and Development Board flat upgraders.
A different concern would be the big number of shoebox units scheduled to be released around the rental marketplace. SREX (Singapore Actual Estate Exchange) estimates report numerous six,550 private apartments and condominiums resold in 2013, compared to the 12,278 resold in 2012. As a result of the capping of housing loan applicants' total monthly debt repayments to 60 % of their total earnings, November and December 2013 registered less than 400 resale units transacted each month.
On the other hand, most home investors are conscious from the situation inside the 2014 residential house market, with the majority of them believing they are able to stand the upcoming oversupply, so long as they are capable to pay off their monthly installments and mortgage rates of interest stay low.