The past couple of years have been great years for the Singapore property market, until the current cooling steps taken by the Singapore government. This report serves as an update to those in the Singapore Property Market or wants to enter the marketplace. Some analysts noted that while the market has remained resilient despite Government’s cooling measures, it appears to be close to the tipping point. A recent report by UBS forecasts that home prices in Singapore might fall between 10 to 15 percent in the next 12 months.
There may be a few more legitimate reasons for the gloomier prospects:
- The uncertainty in Singapore’s economic growth because of the global situation
- The slowing population growth as the government moves to tighten immigration laws.
These factors could cause foreign buyers to stay away, dampening the resale market activity. Another school of thought is that of real estate brokers who may have a stronger feel of the Pasir Ris 8 Condo marketplace than research analysts. Earnings for the first half of 2012 alone altered 11,928 units. Mass market houses dominated sales in the quarter with 3,737 units or 69.2 percent of new home sales listed in the Outside Central Area OCR. The best selling mass-market projects were Ripple Bay, Flo Residence and Palm Isles shifting 568, 324 and 306 units respectively.
The reason might be as follows: Implementation of the Additional Buyer’s Stamp Duties ABSD in December 2011 had induced foreigners to steer clear of prime areas. Since its implementation, a sharp decrease in foreign demand for private residential properties was detected. This in turn, made possessions in the suburban mass market section more attractive to HDB Housing Development Board upgrades that purchase with a longer term perspective.
Looking forward, the listing supply in the pipeline could further help to alleviate any pent-up demand from the External Central Region, thereby preventing spikes in property rates. In the mid to long term, strengthening international markets would also boost investor sentiment, resulting in a slow recovery of Core Central Region and Rest of Central Region prices.
Finally, the health of the Singapore property market hinges on the Buying power of Singapore citizens. Provided that proper measures are taken by the relevant authorities to stop short-sighted investments from leading the current market, coupled with a lack of declining long-term international outlook, the Singapore property market is certainly a fantastic way to go for developing financial riches.