Date: 1st Dec 2011, Thursday
Singapore Resale Private Homes Up
Resale private home has gone up nearly 10% since the begining of 2011. And the preceding year in 2010, prices surged up 18%.
It is normal for the property markets go through cycles.
Since 2009, Singapore property has been enjoying a boom. But according to some analyst, the good times are coming to an end. Some predicting residential rents and prices may go down by up to 30% over the next three years. The rational behind this sentiment are slower population growth due to stricter immigration policies and the large supply of completed homes coming onstream. There are 40,000 unsold private housing units in the pipeline and he government will inject sites that can potentially yield a total of 14,000 units.
Here is a counter argument: As of end 2010, there was a housing deficit of about 80,000. This strong pent-up demand can easily absorb the 77,000 uncompleted homes in the pipeline until 2015. And this is not taking into account the housing requirements of new immigrants, who may need about 20,000 to 30,000 homes from now until 2015. In 2011, about 100,000 foreigners were added to the population and they will most likely support home price growth in a favourable environment. Factors like these will contribute to a positive impact on the residential property market in the coming years. Therefore a sharp property price correction is highly unlikely.
Updated On: 15.08.22