Private home recovery ‘set to continue this year’

The recovery in prices and transactions of private homes is expected to continue this year due to pent-up demand, improved sentiments and new launches by developers, consultants say.

Rents, too, will likely find their footing in the second half of the year, thanks to a steep fall in completions of new homes.

But favourable supply conditions may not stay interminably, with the Government flagging a potential supply of 19,900 units from land sale sites that have yet to be granted planning approvals. These could be made available for sale later this year or next year, and be completed from 2021 onwards.

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Private home prices recovered in 2017, occupancies improved, says URA

SINGAPORE – Private home prices rose 0.8 per cent in the fourth quarter from a quarter ago, bringing the full year increase to 1.1 per cent following a 3.1 per cent decline in 2016.

This came even as private home rents fell again in the fourth quarter, though the full-year rental decline eased on the back of improved occupancies.

These figures were released by the Urban Revelopment Authority (URA) in its fourth-quarter real estate statistics report on Friday (Jan 26). Continue reading

Singapore home prices have bottomed, Hong Kong ‘crazy,’ BNP says

SINGAPORE (BLOOMBERG) – Singapore home prices have reached a bottom and will rebound, while Hong Kong’s “crazy” housing market will continue to defy gravity, according to BNP Paribas.

“Very significant” income growth will drive the first leg of a recovery in home prices in Singapore, where property ownership as a proportion of household assets is near a record low, BNP’s Asia-Pacific head of research for financial institutions and property Wee Liat Lee said in an interview while visiting the city-state. That will boost prices by 10 per cent to 15 per cent over the next 12 to 15 months, in turn luring foreign buyers, especially from China, Lee said.

Singapore property prices have declined for 15 quarters – the longest slide since data was first published in 1975 – as the government rolled out a series of curbs. Home values have dropped 12 per cent from their 2013 peak, while Hong Kong prices reached record highs earlier this year. Continue reading

Development charges rise amid collective sale fever

The development charge (DC) rates for landed and non-landed homes have been raised amid collective sale fever and rising property sales.
The increase was highest for non-landed homes. DC rates for this segment was hiked by 13.8 per cent on average, with one sector – the Tampines Road, Hougang, Punggol and Sengkang area – receiving a 29 per cent rise.

The charges are levied by the Government for enhancing the use of some sites or building bigger projects on them. They are revised on a half-yearly basis by the Ministry of National Development (MND), in consultation with the chief valuer. Continue reading

Signs of new vigour in the property market

Comments from CapitaLand’s chief executive officer Lim Ming Yan last week that there are signs the private residential market could be bottoming out made market watchers sit up for its positive tone from Singapore’s largest property player.

The comments jive with a range of data pointing to an uptick in the market. The latest second-quarter numbers from the Urban Redevelopment Authority (URA) show that prices fell 0.1 per cent, less than the 0.4 per cent in the second quarter. But is the market bottoming out to remain flat, or could Singapore even be embarking on a fresh property cycle?

While no other major developer has been as outspoken recently as Mr Lim, their bids have done the talking for them in two ways. Continue reading

Property-bound Singapore capital now prefers home turf

THE capital flight to greener pastures abroad from Singapore has slowed to a trickle, amid a turnaround in the property market at home.

Data compiled by Real Capital Analytics and Knight Frank Research shows that the number of outbound investment deals dwindled to 34 in the first half of 2017. The figure was 144 for last year, and 503 in 2015.

The transaction value of deals done in the first half of the year also slid – to S$6.7 billion, from S$14.6 billion last year and S$37.7 billion in 2015. Continue reading

Singapore’s property prices to double by 2030: Morgan Stanley

The protracted downtrend in Singapore’s property market is poised to end next year, with home prices set to double by 2030, Morgan Stanley said in a Wednesday note.

“Property market bears expect slower population growth, an ageing population, and a structural growth slowdown to weigh on the long-term property market outlook,” the note said. “We disagree and believe home prices will double by 2030.”

That implies a 5 to 6 percent increase per annum and would mark a reversal from a long downtrend in home prices. Continue reading