News roundup: Greater Bangkok’s residential prices to rise in the second half, plus more stories

For PropertyGuru’s news roundup, we focus on housing and owning a house. Market analysts say Singapore homeowners will still be paying higher mortgage rates for a while. Hong Kong’s housing chief defends the total cost of managing 30,000 temporary public housing. And Thailand’s residential prices to go up in the second half of the year.

Residential prices in Greater Bangkok to rise in the second half

The price index for new residential supply in Greater Bangkok should continue to rise in the second half as older inventory is absorbed following property stimulus measures starting this month, according to a research firm.

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said in Bangkok Post that the government’s new stimulus measures for residential properties priced THB7 million or lower should increase housing demand.

“The impact will be evident in the second half as the measures will help drain the inventory of old costs,” he said. “After the unsold units are absorbed, developers will launch new supply priced for higher costs, leading to increases in the price index in the second half.”

Singapore homeowners likely to pay higher mortgage rates for a while more: market watchers

Homeowners in Singapore will likely have to pay higher mortgage rates for a little longer, according to some market watchers.

Currently, the mortgage rates can be as high as above 4 percent. An expected percentage point dip in interest rates is now likely to only take place at the end of next year, instead of this year. This comes as the United States Federal Reserve is cutting interest rates more slowly than expected as inflation remains high.

Observers said more homeowners are switching to a fixed mortgage rate amid such a high-interest rate environment.

As per CNA, some analysts said homeowners will have to bite the bullet for longer, with mortgage rates taking longer than expected to come down. Interest rates could fall half a percentage point by the end of this year, instead of a full percentage point, said one analyst.

Hong Kong housing chief defends HKD4.4 billion operating costs of temporary housing scheme

Hong Kong’s housing minister has defended an estimated HKD4.39 billion price tag for managing 30,000 temporary flats which are planned for the city, saying this would cover maintenance, cleaning, and other amenities.

The units will be part of the Light Public Housing (LPH) scheme, which aims to boost the city’s short-term housing supply by providing prefabricated flats that will be retired after five years of use. The bureau’s estimate amounts to operational costs of around HKD1,000 per month for each temporary unit.

The scheme, announced in Chief Executive John Lee’s maiden policy address and reported by HKFP, caters to those waiting for public rental housing and offers flats at a relatively lower cost. Eligible tenants will be able to occupy the units for a fixed term of two years.

The Property Report editors wrote this article. For more information, email: [email protected].