In October, Singapore property sales dipped by 50 percent year on year. Does that mean the Singapore real estate market is in a tizzy? Are we in the midst of a property buyer’s market? Are prices edging lower? And what does all this mean for buyers who are contemplating getting Singapore property for sale?
Over the past few months, Singapore government and local residential property developers have been implementing several measures to cool the overheated Singapore property market. The country’s central bank chief has repeatedly stated that there are no major risks to the outlook, and that the cooling measures would bring about a moderate slowing in Singapore’s property prices. Are these statements true? Can we expect a soft landing back to normal property prices in the next few years? Or, is it another red flag for buyers who are looking for the best Singapore properties at the best prices?
While Singapore property prices have tumbled over the past few months, the slowdown hasn’t affected them too badly. On a year-to-year basis, Singapore’s residential properties saw no increase in market value. The drop in prices came as a shock to a country that boasts of its one-time affluence. What happens next for Singapore’s property market? Is it time to take a breather or prepare for a sharp correction?
The truth is, there’s no real certainty. There are many factors that can affect prices across the globe, and Singapore isn’t immune to this global slowdown. However, amidst the gloom and doom that prevail in the world’s most populous nation, Singapore still enjoys one of the fastest growth rates in the world. And despite reports of a property bubble forming in the country, Singapore still has the world’s most efficient real estate market. Whether buyers are looking for a second home, an investment property, or simply a place to live in the meantime, Singapore offers something for everyone.
This year, saw the lowest number of new listings on the Singapore property market ever. While this is good news for buyers who are looking for prime investment properties, it also points to the need for more builders to build more flats and houses. If developers continue to struggle with demand, the glutting of units will continue, and prices will probably fall even lower. This can mean trouble for buyers who are waiting for the bottom to fall out of the market. It could be a major turning point for the Singapore economy, which is already showing signs of recovery after the past recession.
There are some other indicators that show a bright future for Singapore property prices, such as the burgeoning number of government-built, or ‘e-services’, buildings. The rapid growth of e-services in areas like Papam & Singapore, Clarke Quay and the North Coast is likely to bring more private residential units to the forefront in the next few years. Government-built developments are also set to experience sharp increases in popularity, with the likes of Bukit Timah and the soon-to-open Singapore Management College being planned near Leedon Green in future. While these projects will attract more workers and shoppers to the area, they will also create more space for those who are looking to move in, as well. Overall, the outlook is positive for Singles’ communities in Singapore as the economy recovers, although analysts have warned that the coming of more e-services onto the scene may put some pressure on private residential units.