Boat captains of market active on GCB sector in Q1

Captains of industry on fields between retail, meal and developing to education and treatments were mixed up in Good Type Bungalow sector in the initially three months in this year.

The Wong relatives behind designer handbag and black-jack shoe maker Charles & Keith snapped up an oldtime freehold bungalow along Bracket Echo Park at the fringe of the Chatsworth Park GCB Area for S$22. 25 million or S$1, 322 per square foot based on the land area of 16, 826 sq ft in January. The seller is understood to be Fang Zhixiang, the deputy chief executive officer of mainboard-listed palm oil producer First Resources.

Along Fifth Avenue in the Bukit Timah area, David Teo, chairman of listed Super Group – the company behind the ubiquitous 3-in-1 Super Coffee sachets – is buying a house for S$24. 5 million or S$1, 626 psf on the land area of 15, 069. 46 sq ft.

The two-storey house, which is being sold with vacant possession, is next to the bungalow where Mr Teo and his family reside. The seller is understood to be cardiologist Michael Lim, for whom this is an investment property. Based on caveats data, the property was previously transacted for S$23. 5 million in 2011.

Also divesting an investment property is Mavis Tutorial Centre founder Anthony Ng, who is selling a bungalow in Swettenham Close for S$22. 48 million (or S$1, 355 psf on the land area of 16, 594 sq ft) to an oil trader. On site is a two-storey house with five bedrooms. The property was previously transacted pertaining to S$20 , 000, 000 in 2010, influenced by caveats info.

Back in the executive condo market, Northwave ec at woodlands view was launch and it uniqueness has attracted the crowd of its own

BT likewise reported a few weeks back that Zhang Yong, the founder of an popular hotpot chain supply by china manufacturer and who might be now a good Singapore person, bought a Gallop Road GCB near the Botanic Gardens pertaining to S$27 , 000, 000 or S$1, 700 psf; the property with site was rebuilt and completed in this.

GCBs are classified as the most famous type of stumbled housing on Singapore with the planning limits to preserve their whole exclusivity and low-rise identity.

The Elegant Redevelopment Capacity (URA) features designated 39 locations with mainland Singapore as GCB Areas. Ordinarily, GCBs include a minimum area area of one particular, 400 block metres (15, 069 sq ft); nevertheless , when GCB Areas had been gazetted on 1980, many people included a few smaller existing sites. These are definitely still viewed as GCBs because they would be chained by the different GCB preparation rules if perhaps they were for being redeveloped.

Solely Singapore folks are allowed to acquire landed homes in GCB Areas within a policy adjust that needed effect in the second half of 2012. Just before that Singapore permanent residents (PRs) could seek Singapore Land Authority’s approval to get such properties provided the land region did not surpass 15, 000 sq ft.

As for other landed homes in non-GCB Areas upon mainland Singapore, the government offers drastically decreased the number of approvals granted to PRs attempting to buy such homes since 2011. Foreigners who are not PRs are not eligible. But on Sentosa Cove, a foreigner – whether a PR or not – is eligible to seek authorization to buy a landed home. A non-citizen is allowed to own a single landed house in Singapore and that very for owner occupation solely.

A agent said that and also the can pick ” up ” posh penthouses or condominium units anytime in Singapore as long as they have the means. However , the licence to get a GCB is awarded only to Singaporeans.

Any Singapore citizen who are able to afford to possess a GCB would want to take opportunity to do so because of the status that comes with this. There are no more than 2, 500 GCBs plus they are mostly the preserve of tycoons.

Q1 deals may signal market for Good Class Bungalows looking up

The Good Class Bungalow (GCB) market may be headed for a pick-up in transaction volumes this year, should the results pertaining to the primary quarter are actually anything to use.

A mix of price reduction expectations by way of owners and pent-up regarding the limited-supply, prestigious found housing kind has really helped to reduce a price move.

The result is more deals had been sealed on Q1 compared with the previous three months and in the year-ago three months – in spite of the current inadequate economy plus the stockmarket movements at the start of your year, taken into consideration agents.

A good consultant said with the economical slowdown, GCB sellers have already been more practical in prices their properties, enticing buyers. ”

9 properties GCB Areas were transacted for any total S$209 million in Q1. Inside the fourth 1 / 4 of a year ago, there were also nine offers, but they were worth just S$161 million; in Q1 last year, there have been just 4 transactions that added up to S$95 million.

Owners who bought GCBs several years ago possess found this profitable to market at this prices rather than later, consideringg the uncertainties in the economic outlook.

It is estimated that GCB prices posted in Q1 the 2010 season were virtually 15 percent lower than we were looking at in the the busier in 2013. Prices are actually gradually stabilizing. However , one or two GCBs distributed below current market valuation out of late in 2009 to Q1 this year could possibly have an impact for overall GCB pricing. You will find likely gonna be a even more marginal drop of 2 to five per cent previous to prices secure by the last quarter about this year.

Quite a marginal value decline is certainly predicted for the remainder of this year, resulting from a build-up in pent-up demand together with the strong retaining power among the most owners.

A property watcher said that when ever owners lessen their value expectations, clients who have acknowledged as being a property many people fancy will initialize biting, on the fear the fact that someone else may perhaps beat it to it and they’re going to miss the sevyloyr fish hunter 360 to buy most of their dream dwelling. It could then simply take them others months to hunt for one other bungalow many people like.

When ever buyers leap into the marketplace in this style, owners will start to hold prices.

Another GCB veteran contended that prices have stabilised and in some cases, began going up a month ago, when the stock exchange began to recover.

Last month, he brokered the sale of a bungalow along Swettenham Close off Holland Road at S$1, 354 psf upon land region – greater than the S$1, 258 psf fetched last November for any bungalow down Peel Street, just 75 m aside.

The Peel off Road bungalow was constructed about 4 years ago, as the Swettenham Close house is about 25 years aged.

Agents say the mood amongst buyers offers improved recently, with a pick-up in viewings.

For the whole of the year, some are predicting a 5 per cent price development. ”

30 to thirty-five GCBs are required to be offered this year – similar to the 33 transactions a year ago.

The 2015 sales tally amounted to almost S$715 million and was a marked improvement from 2014, when twenty-eight deals adding up to S$626 million were sealed.

Real estate agents told The company Times that those on the market to buy a GCB consist of upgraders. Some are moving coming from a smaller sized landed home or even a condo, to a GCB.

Several HNWI (high-net-worth-individual) Singaporeans are also looking at switching coming from overseas house markets returning to Singapore.

They believe that pursuing the price modification, prospects intended for high-end households will be greater in Singapore in the next two years’ time vis-a-vis united kingdom, the US, Projects and Okazaki , japan and Hk, where that they previously focused entirely on.

Some of these clients include all who have become Singapore citizens within the previous couple of years. What they are engaging in now is hoping to reduce in order to the ABSD (additional consumer’s stamp duty) for instance, by just selling most of their existing real estate here or simply transferring the crooks to family members.

As to the information of owners, there has as of late been many people looking to divest their GCB because it has grown too big for the snow they get, as their kids may be being employed abroad.

Prior to now year, we have witnessed more estates/trustees wanting to divest GCBs thanks to higher real estate taxes and weaker rental prices. Among those that bought a GCB in Q1 this year was David Teo, chairman of listed Fabulous Group. He can paying S$24. 5 million dollars or S$1, 626 psf for a freehold property combined Fifth Acc�s off Bukit Timah Way.

Outlets and shophouses overtake home units in auctions

Outlets and shophouses overtook residential properties in total product sales value in auctions inside the first 1 / 4 of this yr, a report introduced on Friday shows.

Some S$5. five million really worth of outlets and shophouses were sold in auctions in Q1, more than double the residential sector’s S$2. five million.

This kind of marked the very first time since the second quarter of 2014 that the home sector had not been the top choose in the public sale market although it continue to dominates the amount of listings.

The shift in buyers’ choice from residential properties to outlets and shophouses or commercial properties could be due to the propensity to avoid the additional buyers’ seal of approval duty, that only pertains to the home sector.

Upon Wednesday, nevertheless there were virtually no takers just for the three HDB shophouses — located in Everton Park, Silat Avenue and Lorong you Toa Payoh – post by owners for sale in auction, rapidly palatable cracking open price of S$1. 80 million just for Everton Car park and S$2 million just for the several other two HDB shophouses.

Every one of these are tenanted to meals and drink outlets and provide a produce of around 4 per cent. They will be planned for the next public sale if privately owned negotiations are unsuccessful.

Prices intended for HDB shophouses have been quite stable during the past two years, without any significant spike or drop.

Vendors are usually reluctant to drop their asking prices as they are still able to get good and stable produce for these houses, a advisor said. They can rent out the shop with living quarters together to 1 tenant or perhaps they may subdivide the store on the 1st storey to two units that makes the leasing very affordable and rent out the living quarters separately. Generally a total leasing of at least S$5, 000 for the properties is easily achievable.

Outlets and shophouses also bucked the downtrend in the number of properties organized for public sale, with a 145. 5 per cent increase in goods to twenty-seven units inside the first 1 / 4 from the previous quarter. Much more shops and shophouses could be up for public sale given the continued weakened retail belief.

In contrast, the entire number of houses put up intended for auction dipped 19. four per cent coming from a quarter earlier or 25. 6 percent from recently to 141 units on Q1 2016. This was once since Q4 2014 that number of real estate put up just for auction lost control under the 150-unit mark.

Although the success amount is restoring. The number of real estate successfully distributed under the claw doubled right from four on fourth three months of 2015 to seven in the first of all quarter of 2016. The translated a good overall achievements rate of 5. six per cent, a gain from the track record low of two. 3 percent seen in one more quarter of 2015 nonetheless a downfall from the great success amount of almost eight per cent noticed a year ago.

The success amount for auctioned shops and shophouses proceeded to go up to 16. 8 percent from a reduction in transactions just for the good point class on Q4 2015, while the fact that for personal sector was 2 . five per cent — the lowest as Q4 2013.

With sell having attained acceptance and recognition as a workable way to advertise properties, the whole number of houses put up intended for auction inside the first half of 2016 can be expected to combination the 300-unit mark.

Regardless of the improvement with success level from 1 / 4 ago, the first quarter’s auction revenue of S$9. 6 mil still displayed a 10. 2 per cent quarter-on-quarter lower and your 73. two per cent year-on-year slump. This really is attributed to the purchase price gap among buyers and sellers, specifically for larger and higher-priced products.

Meanwhile, mortgagee sales of some 62 properties constructed 42. 6th per cent in the auction industry in the first of all quarter — a record the amount and the second straight district that mortgagee-sale listings own hit the 60-unit make.

There was and a higher the amount of more cost-effective properties , the burkha into the discounts. Properties down the page S$2. quite a few million your ones within S$2. 5 million dollars to S$5 million built 60 percent and 31st. 9 percent respectively on the first district, up right from 54. 7 per cent and 28. half a dozen per cent over the previous quarter of 2015. Worth mentioning, the number of buildings below the S$1 million-mark as well increased right from 36 packages in Q4 2015 to 37 packages in Q1 2016. The represented 30. 2 percent of the sale market, the top since Q2 2013.

Makeshift patching will never fix flaws of S’pore’s housing market

The first a part of this article (“Singapore property could be heading for long lasting drop with value”, BT, April 20) touched regarding three belonging to the six “defects” in our real estate market as opposed to lead to some long-term turn down in real estate values. The first some points happen to be: the issue of demand appearing exhausted considering the last half dozen years of considerable supply; the excess Buyer Seal of approval Duty; and also the Total Financial debt Service Percentage framework. In this second part, we consider the next three “defects”.

Among the methods for capping prices from the residential industry involved making sure a adequately large canal of supply is open to investors and buyers. The explanation is that raising the sales and profits of new HDB flats and personal residences definitely will lead to a tad bit more competition involving sellers and maintain a lucha on amount growth. The exuberant stride of sales and profits since Singapore pulled out belonging to the global financial crisis just last year has led to a huge boom with construction. Concerning 2011 and 2015, the whole stock of Singapore’s household units, world wide web of demolitions, increased by about 150, 000; and over another four years, between 2016 and 2019, another one hundred fifty five, 000 household units are going to be completed.

Even though the Building along with Construction Right has announced better performance and higher rates in establishing quality all over HDB rentals, executive real estate and private house projects, sense intruders more and more high-quality cases making defects, various of which have concluded in lawsuits. Circumstances of building disorders in brand-new developments said in the mass media include million-dollar homes for example the Sea Perspective, RiverParc Property, The Cruise trip @ Riva Bay as well as the Coast with Sentosa Cove.

Compared to the final amount of houses developments with Singapore – most of that happen to be properly and well built – the number of jobs with setting up defects may appear negligible. Nonetheless what may well negatively impression future home values is a recent landmark ruling by the High Court. Owners of The Sea View who sued for numerous alleged defects were told by the High Court that the developer, the architect and the main contractor are largely not liable for negligence claims because most of the work has been delegated to other companies, or independent building contractors.

One insinuation for all Singapore property shareholders might be: shareholders would need to be experts in the whole surplus of building contractors engaged by developer, the architect or perhaps the main builder for any improve the property. Really should investors find any defects in the property and their claims against the developer, the architect and the main contractor not result in any compensation, the investors would have to direct their claims further down the chain, directly at the specific company the fact that had performed the work contributing to the anomalies.

Such a lording it over incentivises coders and most important contractors to outsource really their do the job. Coupled with the increasing frequency of shoddy workmanship and building defects, the finished quality of real estate might drop, as would its value.

The fifth some form of relates to the increasingly elaborate set of protocols around Singapore property investment funds. In addition to the a variety of layers of buyer and seller brand, imprint duties, building taxes are actually tiered and strata space laws are actually perplexing also to practiced real estate industry experts. An investor investing in 2, 000 sq legs of strata area would have as little as you, 200 sq ft of usable floorboards area: a good drop up to 40 percent.


The top difference between area we paid for and also the area we are able to use is situated mainly inside the void. Yes, the airspace between us and the roof – in the event the ceiling is usually above specific height limitations in a home or a non-residential space, called “internal void” – is known as “sellable strata area”. Extending our creativity further, on strata found houses, individuals pay for many levels of “external void” strata area somewhere between themselves as well as sky.

Strata void areas proliferated within the last few decade and now have now lengthened into the company and economic segments. Traders pay for the void which often is of little curiosity to renters, especially in commercial properties in which the size of the production ground area is a key determinant of leasing discussions.

Because the Singapore economy advances with technical changes, the guidelines around many categories of economic uses are usually getting complicated and in a large number of circumstances, necessitate more perfect definitions. On the whole, hazy guidelines coupled with difficult duties and taxes is likely to make Singapore houses less and less attracting serious, long investors.

The next point is normally on Singapore housing scheme. It made us brilliantly well in the country’s nation-building years. Hoping, it is very likely to be a millstone around this necks within a future market which has short boom-bust periods and which can be more perky.

Singapore’s get for great home ownership plans during it’s formative years and the first of all five many decades of nation-building has been a extraordinary success. However , this “achievement” did not arrive without it’s sacrifices.

Singapore’s home ownership fee, at just across 90 percent, is very great compared to the levels in produced nations including 36 % for Swiss, 45 % for Australia, 64 % for britain, 64 % for north america ., 61 % for Asia and 67 per cent to get Australia. Infamously, these are countries which continually generate a tad bit more innovative, world-leading products than Singapore.

Simply because Singapore considers to transform her workforce that they are more excellent, entrepreneurial and nimble-footed, it to get used to its casing policy to needs to a future intercontinental economy the fact that rewards asset-light, agile and adaptive online marketers. Handcuffing some of our young people with 30-year-long mortgages after they get married for 28 years will not instill any up-and-coming spirit. The fact is it does and the second, making all of our society of well-educated individuals averse to risk, and happy to just simply conform to the status quo.

A good housing policy that encourages high home ownership may put a drag on future economic growth – and eventually reduce the value of Singapore’s real estate.

The six “defects” in Singapore’s property market are just like the chips in a leaks roof. We could keeping patching the six cracks as they slowly split wider. And we could fix new chips as they turn up, perhaps by means of game-changing movements like quick home-sharing. Although even if the roof top does not gear and give means, continual tackling of chips will bring straight down home principles.

A series of cooling down measures slowly but surely introduced within the last few six years has led to a good patchwork umbrella covering the residence market that is certainly now uncomfortably scratchy and somewhat suffocating. Calls unwind the cooling down measures begun to ring away two years ago. In recent months, developers, property agents and industry associations have repeated their calls, with some predicting that measures may be lifted or amended by the end of 2016.

With recent Government Acreage Sales even now seeing solid responses for eight to 10 rates for bids per acreage tender, and with creators and building agents creating commendable revenue for 2015, I do certainly not think that a / c measures shall be relaxed till such profits turn unfavorable.

Since 2010, the air conditioning measures possess added to a list of “defects” in this property current market that may culminate in a good deal deterioration of property valuations over the upcoming few decades. People examine the following six conditions will even more widen the cracks.

First of all, the full-time condominium (EC) segment provides for a clear example of this of the scope of an abundance in the personal market. The word “sandwiched class” households signifies a small marketplace segment, sandwiched between the households who are eligible to buy fresh HDB houses and the wealthier families that may afford privately owned properties. Since ECs were relaunched accessible in November 2010, and up until February 2016, developers possess managed to satisfy the needs of just over 13, 700 sandwiched households.

In that period, the family unit monthly profits cap just for EC clients was raised right from S$10, 000 to S$12, 000 in 2011 and probably still in 2012 to enlarge the buyer combine. Amid conditioning demand, family members income hallway was additionally revised way up to S$14, 000 4 weeks in August 2015. Notwithstanding the fact that families with S$14, 000 monthly home income stay at the 77th percentile of households positioned by cash flow levels, these kinds of families that can well have the funds for ECs will be further funded by good subsidies of taxpayers. But, sales of ECs always been lethargic.

The quantity of EC products launched yet left unsold climbed swiftly in 2015, allowing all of us to conclude that (1) we certainly have already worn out most of the with regard to ECs and (2) boosting the cash flow ceiling would not lead to significant additional demand. Add the simple fact that since at 12 , 31, 2015, there were you, 540 finalized EC packages that lasted vacant (yes, vacant even though a Minimum Vocation Period rule), it means the fact that even the family of “EC investors” has been depleted.


Furthermore, you can, Singapore has got relatively handful of economic cover and duty that make an effort to discriminate with foreigners and PRs (permanent residents). The Buyer Imprint Duty (ABSD) is an omission.

In addition to deterring foreign people and PRs from securing Singapore’s housing market, this unique policy seems to have turned Singapore’s desire to be some wealth-planning main on her head. Prosperous families diagnosed with invested intensely in Singapore and who have are now taking into consideration estate and succession arranging find all their options limited when it comes to all their residential possessions.

Before ABSD was presented, these young families could transfer their homes into a living trust or maybe a foundation by paying the normal stamp duty of just under 3 per cent. With the ABSD of 15 per cent, transferring your accumulated residential assets to a trust will cost a prohibitive 18 per cent in duties. So ABSD does not just cool the residential market, it also cooled the wealth planning industry, slowing down the business pertaining to trust operators, bankers and lawyers.

In addition, the most effective measure the fact that curbed increased residential ventures – named the Total Personal debt Servicing Relation (TDSR) — has lower the value of real estate investment assets to almost absolutely nothing.

Introduced on mid-2013, TDSR defines the absolute maximum loan pertaining to residential properties based on the ability of the borrower to repay the monthly mortgage, stress-tested at 3. 5 per cent per annum interest rates for residential properties and 4. 5 per cent for commercial properties.

The TDSR framework regards a borrower’s income and type of income (commissions, fixed salary, dividends, ad hoc fees, etc) as the leading source of loan repayment plus the loan size and college loan tenure are actually determined depending on the borrower’s grow older and credit history.

The around the globe accepted perform of asset-backed lending pertaining to real estate to be able to apply on Singapore once TDSR was implemented. Since the income with the borrower is the most important determinant with the size of the home or property loan, the importance of the property themselves is second. This naturally means that a good retiree old 65 not having income and living in a completely paid individual apartment which can be worth S$500, 000, as well as S$5 , 000, 000, or S$50 million even, will not be competent to take a buck of loan against the house to maintain his daily cashflow requirements.

Where is the inherent value of this piece of real estate called home if in the eyes from the banks and the authorities, value only is available in the income of the debtor?

The issue of demand becoming exhausted along with the last 6-8 years of large supply, the ABSD plus the TDSR perspective wraps ” up ” part amongst this two-part article. Next part, people will examine how the complete quality of recent initiatives, the hazy laws which include those about strata ground area and also the high possessing rate may result in a long lasting decline in property beliefs.

Singapore property may well be heading for permanent drop for value

Several steps of cooling activities progressively announced in the last some years contributed to a composizione quilt within the property promote that is at this time uncomfortably scratchy and to some extent suffocating. Requests to relax the cooling activities began to arena out two year period ago. Lately, developers, premises agents and industry communities have regular their requests, with some predictive prophetic that activities may be increased or corrected by the end of 2016.

With recent United states government Land Revenues still observing strong typical reactions at six to diez bids every land irritated, and with developers and property specialists recording extensive profits meant for 2015, Me not are convinced cooling activities will be enjoyable until this type of profits simply turn negative.

Seeing that 2010, the cooling procedures have included with a list of “defects” in our property or home market that will culminate in a significant destruction of property or home values in the next a long time. We browse through here some issues that definitely will further enlarge the breaches.

Firstly, the executive terme conseill� (EC) cellule provides a sharp illustration within the extent of oversupply while in the residential promote. The term “sandwiched class” young families implies a market cellule, sandwiched from the families exactly who are eligible to invest in new HDB flats and also wealthier tourists that can manage to pay for private buildings. Since ECs were relaunched for sale in Nov. 2010, and assend till April 2016, makers have been able to satisfy the preferences of approximately 14, 1, 000 sandwiched young families.

During that time, the household every month income top for EC buyers grew up from S$10, 000 to S$12, 000 in 2011 to widen the owner pool. In the midst of softening require, the household money ceiling was further changed upwards to S$14, 000 a month that kicks off in august 2015. Despite that tourists with S$14, 000 every month household money stand along at the 77th percentile of young families ranked just by income amounts, these tourists who can perfectly afford ECs are additionally funded just by generous tax assistance of people. Yet, gross sales of ECs continued to be fatigued.

The number of EC units unveiled but eventually left unsold climbed rapidly on 2015, allowing for us finally that (1) we have currently exhausted the vast majority of demand for ECs and (2) raising the income upper limit did not bring on significant more demand. Bring the fact the fact that as for Dec thirty-one, 2015, there are 1, 540 completed EC units the fact that remained nonincome producing (yes, nonincome producing despite least Occupation Time rule), this would mean that your category of “EC investors” is exhausted.


Secondly, Singapore has somewhat few economical policies and taxes the fact that positively discriminate against and also the and PRs (permanent residents). The Additional Client Stamp Job (ABSD) can be an exception.

In addition to deterring foreigners and PRs from investing in Singapore’s residential market, this policy has turned Singapore’s desire to be a wealth-planning hub on its head. Wealthy families who have invested heavily in Singapore and who are now considering estate and succession planning find their options limited when it comes to their residential assets.

Ahead of ABSD was introduced, all these families may transfer all their properties to a living trust or a basic foundation by paying of the normal press duty of just under three or more per cent. Together with the ABSD of 15 %, transferring your company’s accumulated domestic assets with a trust will set you back a beyond reach 18 % in jobs. So ABSD does not just simply cool the residential sector, it also chilled the success planning market, slowing down this company for trust managers, lenders and legal representatives.

Thirdly, one of the most successful evaluate that restrained excessive domestic investments — termed the sum Debt Offering Ratio (TDSR) – features discounted the value of real estate assets to almost zero.

Introduced in mid-2013, TDSR defines the maximum loan for residential properties based on the ability of the borrower to repay the monthly mortgage, stress-tested at 3. 5 per cent per annum interest rates for residential properties and 4. 5 per cent for commercial properties.

The TDSR framework regards a borrower’s income and type of income (commissions, fixed salary, dividends, ad hoc fees, etc) as the main source of mortgage repayment and the loan size and loan tenure are determined based on the borrower’s age and credit worthiness.

The globally accepted practice of asset-backed lending for real estate did not apply in Singapore once TDSR was implemented. Since the income of the client is the main determinant of the scale the property mortgage loan, the value of the home or property itself can be secondary. The following inherently shows that a retired person of age 70 without profits and dealing with a fully paid out private flat that is value S$500, 000, or S$5 million, as well as S$50 , 000, 000 for that matter, is definitely not able to create a dollar of loan with the property to sustain his daily cash flow needs.

Everywhere is the purely natural value in this piece of real estate identified as home if perhaps in the view of the finance institutions and the professionals, value solely exists during the income with the borrower?

The challenge of require being weary with the previous six regarding massive source, the ABSD and the TDSR framework gloves up component one of this two-part article. In the next part, we will discuss the way the finished quality of recent projects, the hazy regulations such as those around strata floor region and the high home ownership price may lead to a long-term drop in house values.