Wednesday, January 17, 2018
The property market in Singapore is finally on the road to recovery after three years of low prices. Thus, the long-awaited turnaround has seen estate agent numbers grow.
Private residential prices rose by 0.7% in the last quarter of 2017, with a 1% rise overall for the year compared to 2016’s 3.1% decline.
As per the analysts’ price growth predictions for this year, the prices vary from 3% to an impressive 15%. Many experts are expecting resales to drive the total number of transactions higher in 2018 than 2017. At the same time new home sales are expected to maintain 2017’s level.
However, with the government’s grand cooling measures, it is not very likely for the Singapore market to rise too soon.
As per Jones Lang LaSalle’s national director of research and consultancy, Ong Teck Hui, the measures act as a retardant to the momentum of the presently seen recovery that is much unlike previous recoveries. Thus, it is not that likely for people to see prices spiking as in previous recoveries, such as the 38.2% surge in prices between mid-2009 and mid-2010.
Singapore’s property market tends to operate in cycles, just like in many other countries. Most of the experts predict that this upturn is now different. But, the length of the up cycle is likely to depend on how quickly prices rise.
In case a price increase of about 5% is noted, the upcycle will have some legs past 2020. However, if prices spike up 17% a year, the upcycle will probably taper off by 2019, as per Savills’ Singapore senior director, Alan Cheong.
Many estate agents surely believe that the upcycle is here to stay however, with 174 more being registered at the beginning of 2018 compared to this time last year.
According to the Council of Estate Agents (CEA) director of policy and licensing Chia I-Ling,this increase could be attributed to a “positive outlook on the real estate market”.
News Source: BuyAssociation