The previous couple of yeas have been good years for the Singapore property market, until the latest “cooling” measures taken by the Singapore government. This article serves as an update to these already within the Singapore Property Market or need to enter the market.
Some analysts noted that while the market has remained resilient despite government’s cooling measures, it seems to be close to the tipping point. A current report by UBS predicts that dwelling costs in Singapore may fall between 10 to fifteen per cent in the subsequent 12 months.
There could also be a couple more valid reasons for kent ridge hill residences price the gloomier prospects:
1) The uncertainty in Singapore’s financial development due to the global situation
2) The slowing inhabitants development as the government moves to tighten immigration laws.
These factors may cause international buyers to remain away, dampening the resale market activity.
The other school of thought is that of property brokers who may have a stronger feel of the market than research analysts. Sales for the first half of 2012 alone shifted 11,928 units. Mass market houses dominated sales within the quarter with 3,737 units or 69.2 per cent of new house sales recorded in the Outside Central Region (OCR). The top promoting mass-market projects have been Ripple Bay, Flo Residence and Palm Isles shifting 568, 324 and 306 items respectively.
The reason could be as follows: Implementation of the Additional Buyer’s Stamp Duties (ABSD) in December 2011 had caused foreigners to stay away from prime areas. Since its implementation, a pointy reduction in international demand for private residential properties was observed. This in turn, made properties within the suburban mass market segment more appealing to HDB (Housing Development Board) upgraders who purchase with a longer term perspective.
Looking ahead, the document provide in the pipeline could additional help to alleviate any pent-up demand in the Outside Central Region, thereby preventing spikes in property prices. Within the mid to long term, strengthening global economies would also boost investor sentiment, leading to a gradual recovery of Core Central Region and Remainder of Central Area prices.
Ultimately, the well being of the Singapore property market hinges on the purchasing power of Singapore citizens. As long as correct measures are taken by the related authorities to stop shortsighted investments from leading the market, coupled with an absence of declining long-term global outlook, the Singapore property market is certainly a great way to go for growing monetary wealth.