Yesteryear couple of yeas have been good years for that Singapore property market, before the recent "cooling" measures taken by the Singapore government. This article can serve as an update to people already within the Singapore Property Market or are looking to go into the market.
Some analysts noted that while the market has remained resilient despite government's cooling measures, it seems to be close to the tipping point. A recent report by UBS predicts that home prices in Singapore might fall between 10 to 15 percent within the next Twelve months.
There might be a couple more valid causes of the gloomier prospects:
1) The uncertainty in Singapore's economic growth due to the global situation 2) The slowing population growth because the government moves to tighten immigration laws.
These factors could cause foreign buyers to stay away, dampening the resale market activity.
Another school of thought is that of property agents who may have a greater feel of the market than research analysts. Sales for the first 1 / 2 of 2012 alone shifted 11,928 units. Store bought homes dominated sales in the quarter with 3,737 units or 69.2 per cent of new home sales recorded in the Outside Central Region (OCR). The very best selling mass-market projects were Ripple Bay, Flo Residence and Palm Isles shifting 568, 324 and 306 units respectively.
The reason could be as follows: Implementation of the Additional Buyer's Stamp Duties (ABSD) in December 2011 had caused foreigners to stay away from prime areas. Since its implementation, a clear, crisp decrease in foreign demand for private homes was observed. This in turn, made properties within the suburban mass market segment more appealing to HDB (Housing Development Board) upgraders who buy having a long term perspective.
Looking ahead, the record supply within the pipeline could further assistance to alleviate any pent-up demand within the Outside Central Region, thereby preventing spikes in property prices. In the mid to long-term, strengthening global economies would also boost investor sentiment, resulting in a gradual recovery of Core Central Region and Rest of Central Region prices.
Ultimately, the healthiness of the Singapore property market relies upon the purchasing power of Singapore citizens. As long as proper measures are taken through the relevant authorities to prevent shortsighted investments from leading the marketplace, along with a scarcity of declining long-term global outlook, the Singapore property marketplace is definitely a great way to go for growing financial wealth.