Singapore housing market recovers, prices could surge 20% this year

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Singapore’s housing market is showing signs of recovery from a four-year slump even as officials watch cautiously after previous bouts of overheating. Property prices climbed 3.9 per cent in the first quarter, the biggest gain in almost eight years.

“There is a healthy momentum in demand on the back of good supply,” Desmond Sim, head of research for Singapore and Southeast Asia at CBRE Group, told Bloomberg News.

 “However, prices starting to inch up and more supply coming to the market will put a dampener on demand going forward,” he said.

Meanwhile, property consultancy Savills reckons that private home prices in Singapore may rise 15 to 20 per cent for the whole of 2018 – up from its previous forecast of between 12 and 15 per cent, reported Singapore Business Review.

SAvills raised its estimates after 22 units were sold for a minimum of S$10 million each over the past few months, with 102 units taken-up for at least S$3,000 per square feet in the first quarter, according to data from the Urban Redevelopment Authority.

In particular, luxury condos tracked by Savills posted quarterly price gains of 2.9 per cent in the first quarter. Following a cumulative growth of 5.7 per cent over four straight quarters since the second quarter of 2017, the average price of these properties reached $2,383 per square feet in the first three months of the year, and that amount is only 1.9 per cent lower than the recent peak five years ago.

One factor driving the healthy growth in private home prices is that baby boomers are helping their children climb the property ladder, said Alan Cheong, senior director of research and consultancy at Savills Singapore. 

“Visits to show flats leave a discerning observer with the impression that an increasing number of buyers at new launches are funded in part by their parents’ money,” he noted.

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Reading Time: 1 minute

Singapore’s housing market is showing signs of recovery from a four-year slump even as officials watch cautiously after previous bouts of overheating. Property prices climbed 3.9 per cent in the first quarter, the biggest gain in almost eight years.

Reading Time: 1 minute

Singapore’s housing market is showing signs of recovery from a four-year slump even as officials watch cautiously after previous bouts of overheating. Property prices climbed 3.9 per cent in the first quarter, the biggest gain in almost eight years.

“There is a healthy momentum in demand on the back of good supply,” Desmond Sim, head of research for Singapore and Southeast Asia at CBRE Group, told Bloomberg News.

 “However, prices starting to inch up and more supply coming to the market will put a dampener on demand going forward,” he said.

Meanwhile, property consultancy Savills reckons that private home prices in Singapore may rise 15 to 20 per cent for the whole of 2018 – up from its previous forecast of between 12 and 15 per cent, reported Singapore Business Review.

SAvills raised its estimates after 22 units were sold for a minimum of S$10 million each over the past few months, with 102 units taken-up for at least S$3,000 per square feet in the first quarter, according to data from the Urban Redevelopment Authority.

In particular, luxury condos tracked by Savills posted quarterly price gains of 2.9 per cent in the first quarter. Following a cumulative growth of 5.7 per cent over four straight quarters since the second quarter of 2017, the average price of these properties reached $2,383 per square feet in the first three months of the year, and that amount is only 1.9 per cent lower than the recent peak five years ago.

One factor driving the healthy growth in private home prices is that baby boomers are helping their children climb the property ladder, said Alan Cheong, senior director of research and consultancy at Savills Singapore. 

“Visits to show flats leave a discerning observer with the impression that an increasing number of buyers at new launches are funded in part by their parents’ money,” he noted.

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