Recent media reports have stated that despite the adjusted mortgage policy brought in by the government, November still saw a continuation of falling house prices in China and this spells good news for Botanique at Bartley.
A recent survey that was conducted by the National Bureau of Statistics which involved 70 major cities has shown that in 67 cities, the pricing of new homes that has been recorded month to month has shown a decline for last month.
A dip of 0.3% was seen in housing prices for Beijing, while Shanghai showed a 0.5% drop. This is less that the 1.3% and 0.7% dip that was recorded for October of 2014.
Botanique Bartley Housing Prices
Looking at figures for second home prices including Botanique at Bartley, 58 of the 70 cities used for the report have reported a drop in prices for November, which is down from October’s figure of 64. In six cities there as a gain in second house prices which included top cities such as Guangzhou, Shanghai, Shenzhen and Beijing.
Liu Jinawei, the senior statistician for NBS, has attributed this small decrease to the policies put in place by the government which included the easing of mortgage measures that was brought to the market in September, allowing 2nd time buyers to enjoy a 30% discount on their mortgage rates along with down payments that were lowered to 30% form 60% to 70%.
While this has been occurring, a recent announcement from the central bank to cut the standard rate by 25 basis points for one year deposits, to 2.75%, alongside the reduction of the one year benchmark rate of lending by 40 basis points to 5.6% has had a hand in moderating prices for Botanique at Bartley.
Botanique at Bartley Showflat Preview
According to a report made by Colliers International, 2014 saw a total of 9 shoebox units being put up for sale by mortgagees. The small units are usually priced below the $1 million mark and can be found in locations such as Haig Road, Woodlands and Geylang. This should spell good news for Botanique at Bartley as investors are looking for units in the city fringe area.
The report has suggested that this is a noticeable trend which is reflecting the broad effects of tightening credit regulations and cooling measures, given that the past four years have not recorded any shoebox units being listed by mortgagees.
Bartley Condo Botanique Bartley
Annie Chan, the Director of Auction and Sales for Colliers International, has stated that it isn’t just single individuals or those couples with no children that have been drawn to these shoebox flats. Investors also see the appeal due to their quite affordable prices.
It is believed however, that those investors who have been trying to service multiple loans may have found themselves faced with difficulties in this leasing market which has become increasingly competitive for Botanique at Bartley.
Botanique @ Bartley
Chan adds that, because of this, those investors for Botanique at Bartley who have not been able to secure tenants or who have been forced to accept much lower rents could have discovered that it was a bit of a stretch too far to try and service their mortgage. As a result this can end up in a default of their monthly mortgage repayments.
There is no written or official definition of what size apartment is considered to be a shoebox flat, however they usually have the characteristics of having a space of less than 50 square metres or 538 square feet. Because these units were seen as promising rental returns and high capital gains, strong interest has picked up for these units in recent years.
The Urban Redevelopment Authority had made an announcement in 2012 of new guidelines to place a cap on the number of shoebox units allowed, more so for those found in urban sectors.