Prices of private residential properties staged a remarkable turnaround in the second quarter of 2019, rising 1.5 per cent quarter-on-quarter to hit a five-year high.
What may have caused this increase? Has there been a change in fundamentals in the property market?
“New cooling measures, Property prices eased and rising inventory of unsold private units”
Brief Overview review on the property market of 2019
Singapore’s real estate investment has been predicted, and as expected, the shown signs of a slow start and decline in sales across all property sectors so far. With a drop-in investment and sales, these are what can be expected:
- The increase of the Additional buyer stamp duty (ABSD) and lowering of Loan to Value (LTV) that is implemented by the government has resulted in the decline of sales transaction of properties locally
- There has been a relatively steady rate of sales in the collective sales (aka En-Bloc) market so far for this year.
- Huge supply to be expected from ECs and HDBs, with the expected number of new developments and redevelopments coming up.
- Supply of Government Land Sales (GLS) is relatively high as well, which may not be a good thing for developers looking to acquire lands for development since there’s going to be competition amongst them to fight for the remaining market share available.
- However, it is still expected that there will be demand for consideration on public land sales transaction.