Singapore Property Market
Singapore Property Market
Yesteryear couple of yeas have been good years for that Singapore property market, before recent "cooling" measures taken from the Singapore government. This article serves as an update to people already in the Singapore Property Market or wish to enter the market. Gramercy Park
Some analysts noted that while the market has remained resilient despite government's cooling measures, it appears to be near the tipping point. A current report by UBS predicts that home prices in Singapore might fall between 10 or 15 per cent in the next 12 months.
There may be a couple more valid reasons behind the gloomier prospects:
1) The uncertainty in Singapore's economic growth due to the global situation
2) The slowing population growth because the government moves to tighten immigration laws.
These 4 elements could cause foreign buyers to stay away, dampening the resale market activity.
One other school of thought is that of property agents and also require a stronger feel of the market than research analysts. Sales for the first half of 2012 alone shifted 11,928 units. Mass market homes dominated sales within the quarter with 3,737 units or 69.2 percent of new home sales recorded inside the Outside Central Region (OCR). The most notable selling mass-market projects were Ripple Bay, Flo Residence and Palm Isles shifting 568, 324 and 306 units respectively.
The reason could be as follows: Implementation with the Additional Buyer's Stamp Duties (ABSD) in December 2011 had caused foreigners to stay away from prime areas. Since its implementation, a sharp reduction in foreign interest in 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 buy using a longer term perspective. Gramercy Park
Looking ahead, the record supply within the pipeline could further assistance to alleviate any pent-up demand in the Outside Central Region, thereby preventing spikes in property prices. In the mid to long term, strengthening global economies would also boost investor sentiment, ultimately causing a gradual recovery of Core Central Region and Rest of Central Region prices.
Ultimately, the health of the Singapore property market hinges on the purchasing power of Singapore citizens. As long as proper measures are taken by the relevant authorities to avoid shortsighted investments from leading the marketplace, coupled with an absence of declining long-term global outlook, the Singapore property marketplace is definitely a good way to select growing financial wealth.