East Condominiums Prices Fall The Most In This Financial Crisis
It is said that the condominiums in the East have dropped the most in this current financial crisis. This applies to both the sales and the rental price. The highest price is around 2007 to 2008 where the subprime crisis just started to unfold. With the increase of expatriates in Singapore during 2006 to 2007, the prices of houses in the east increase the most due to expatriates love the sea, and the coast. This pushes up the demand of the homes in the east.
Now when the companies try to cut cost by reducing the budget for expatriates or sending them back home, the demand for the homes in the east suddenly decrease tremendously. With the increase of developments of condominiums in Singapore, the supply of homes has also increase the downward pressure of the prices in Singapore. Now the rental prices of homes in the East have also been hit badly as well. You can see the price of the condominiums drop tremendously over the last few months.
A typical 4+1 private apartment on February 2009 had been transacted at $4,000, and now during March, the same 4+1 private apartment in the same block can go down as much as $3000, which represents the fear of the owners not having found the tenants.
Even with the price as low as $3000, some apartments are not taken up. Has the rental prices bottomed? It seems like it is approaching the price of a HDB unit.
Updated: 11 March 2009