High-end Projects Hardest Hit

A DTZ report showed tt prices of some high-end projects launched in 2006 & 2007 have started to dip in 3Q07 and are now 4 - 26% lower than their highs.

Based on a low caveat of abt 10 transactions/project, Oceanfront @Sentosa Cove dived 26.4%, whereas Scotts Sq fell by 3.6% only.

Knight Frank's in-house data indicated abt 12% fall in prices for luxury properties in prime districts since early 2008. The drop is more than the expected 10%.

Official data for the core central region in 3Q08 showed a dip of only 2.7% bcos it takes into account all properties.

Banks used to give up to 80% loan to investors in 2006 & 2007. But now, this amount has reduced to 60 - 70%. With more projects going TOP soon, investors may want to sell their properties fast and drive the prices even lower. But most agents have yet to see fire sales.


Source: DTZ

* AsiaOne - High-end *