Thursday 15 May 2014

Weak property markets ahead

This week, The Edge predicts that home prices in Singapore will fall in the second half of this year, as developers begin to cut prices to move their unsold units.

Over the past 4 months, the take-up rate of fifty projects in Singapore, which have sold less than 50% in total, was less than 0.8% a month. Two projects have sold nothing since their launch.

The positive news is that the Singapore property market has depth and if the prices were to be reduced by 15% to 20%, the unsold inventories will move fairly quickly.

In Malaysia, home prices are definitely trending downwards as confirmed by the recently released Malaysian House Price Index. On a year to year basis, prices are up 8%. But on a quarter to quarter basis, there was no growth in the first quarter of this year.

In Selangor, prices fell 0.4%, with high rise residential units declining by 3.8%. Elsewhere, price increases were a small fraction of what it was previously.

Read The Edge this week for the complete analysis.


  1. Hi mr tong
    As I see that market house price around Asia is dropping, China are on the verge of properties price drops as people with perception that it will further drop, AUSTRALIA, NEWZEALAND, SINGAPORE too having this issue, So will all this external factor affects Malaysia housing price and how bad will malaysia be hit ?

  2. Dear Dato',

    I have always admired you for your business acumen and social conscience. Thank you for your contribution to society.

    If you are bearish on the residential property sector in Malaysia, why are you embarking on the joint venture with Daiman?

    Best wishes.

    P.s. Could you please advise Daiman to initiate an investor relations programme?

    1. I remain positive on the long term prospects for property in general although I am concerned for the immediate term. Timing property developments precisely is not possible given the lengthy processes pre and post sales.

      Ultimately, it's about delivering a value proposition based on ideas, concepts and costs. We think we will have a superior and differentiated product.