“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.”
Was there an unforeseen change in fundamentals of the property market in Singapore?
A very brief overview review of the property market of 2019 and what to expect in 2020.
Singapore’s real estate investment was predicted, and as expected, to show signs of a slow start and decline in sales across the real estate so far. With a drop-in investment and sales, these factors are that can be expected as follows:
- 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.
- With the Covid virus looming across the country and affecting the overall economy however, it is expected that the measures will be eased, with low mortgage rates across the major banks, a steady sales within residential transactions can still be expected, with a potential decline during the month of Feb till May before the growth.
- 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 from 2021 onwards.