A Rebound in Luxury Singapore Condos?
Though there are many challenges in real estate market of Singapore, there are some positive signs as well. According to DBS Group Research, there are some indications of rebound noted in the luxury residential and office sectors which can be a good sign for the property market.
The prices of the luxury apartments in the prime area of Singapore is estimated to be bottoming out for year 2017, and hence foreign interest and transaction volume in properties of core central region is expected to increase. The luxury home market is expected to be better over the next 12 months.
It was observed that the overall, private home prices have fallen by about 11 percent since 2013. The reason behind this can be the low demand of private homes as investors and homebuyers are affected by the cooling measures that kicked in in the recent years. Beside from this, there is a continuous increase in the prices of houses in Hong Kong, London, and New York.
According to DBS Group Research report, there is a big gap between Singapore and other residential investment destinations such as Hong Kong, London, and New York because the prices are going down in Singapore while in other residential destinations the prices are going up over the past few years.
Because of the high challenges in real estate market, it is expected that the developers will jump towards collective sales or more joint ventures among developers will be expected to acquire more lands, stocking up on their inventories. With more upcoming collective sales and government land sales tender, it is believed that both site values and property prices will remain stable for a period of time.
On the other hand, OCBC Bank is concerned towards the Singapore Property market. According to a report, OCBC bank said that they cannot predict a break in the general real estate market this year because the market sentiments and demand-supply fundamentals did not seem to show any positive changes. As the bank observed that from 2011 to 2013, 18,000 to 29,000 houses were sold while in 2016, only 11,993 private homes were sold in the first nine, which is the much lesser amount.
In addition to this, the net profit is going to be zero as the rental rates have fallen another 1.2 percent in the third quarter of 2016 and borrowing rates are on the rise with higher interest rate.
More information is available on the link below,
http://www.straitstimes.com/business/property/green-shoots-of-recovery-in-luxury-homes-and-offices
Looking for new condo? Below are the New Launch Condos that are under Construction in Singapore.
• The Clement Canopy
•Grandeur Park Residences
• Seaside Residences
• Shunfu Condo | Marymount Condo
• Yio Chu Kang Executive Condo
