Private home prices in Singapore rose for the first time since the third quarter of 2013, which suggested that the residential market might be heading for a rebound, according to data from the Urban Redevelopment Authority (URA).
The URA data showed that home prices rose 0.5 per cent between July and September. The increase broke a four-year streak of price depreciation that proved to be beneficial for property buyers.
Although several property-cooling measures since 2009 still exist, Morgan Stanley analysts expect home prices to increase 2 per cent this year and 10 per cent by the end of 2018. Another reason for the anticipated price rebound involves aggressive bids for land from real estate developers, as well as an increase in home sales.
In the first eight months of 2017, developers have sold around 8,388 private homes. The government’s loosened curbs in March, which involved a lower stamp duty, partly caused the increase in sales. For renters, it may also be a good time to scout for condominiums in Paya Lebar, as the Singapore Real Exchange (SRX) reported a 2 per cent decline in private condominium rents in September.
Sentiment in the property market has been relatively better in 2017. Aside from the government’s reduced Seller’s Stamp Duty in March, certain regulations on loan thresholds have been ease as well. Market expectations now point to a resurgence with higher sales volumes and prices for new launches in the remaining months this year.
Still, the government remains firm that it will not withdraw other property curbs that are in place, as prices for apartments in prime and suburban areas have increased in recent months.
It remains to be seen whether the recent increase in Singapore home prices will continue in the future. You should consult a real estate agent if you intend to buy a property, especially for investment purposes.