Do you own a property in Singapore or perhaps thinking of acquiring one? You might be happy to know that the property market in Singapore is currently enjoying an upward surge.
The current state of Singapore’s property market
According to a current issue on propertyguru.com, home sellers in Singapore have already started increasing their asking prices. The sellers are following signs of the recent property market recovery in the country.
PropertyGuru launched a property index on 23rd November 2017, showing a comparison between 2017 Q2 and Q3. The company got the data from more than 200,000 listings, and after a comprehensive analysis, the data depicts an average of 3.2 price increment in Q3 of 2017. The evaluation shows a significant inflection turning property news around after a massive decline in 2015 Q3 all through 2017 Q2.
Areas that have shown a notable asking price increase
- The city center increased by 4%.
- Northern suburbs showed a growth of 2.5%
- Western suburbs in increased by 2.2%.
If you’re a seller, perhaps this is an excellent time for you to start “future pricing,” in readiness for even further market recovery in 2018. The Singapore property news also notes that property listings have dropped by 4.5 % waiting to take future advantage of higher prices in 2018.
The good news is not only for sellers. It’s a positive turn for developers, property owners, and real estate agents. Future property owners should also take advantage of the situation now after enduring a lackluster market in the last four years. If you plan on acquiring property, now is the time so that you can “cash in” in the future.
Should retail investors jump back into the market now?
The short answer is yes. The current increase in property market value is just a tip of the iceberg, and it will continue going up in the next few years. Buy now, lock in your price and sell high in the future.
In the property development world, “What goes up must come down.” Before the current rebound, the real estate market in Singapore had been performing poorly for the last decade and a half.
You’ll be happy to know that although there has been a 12% decline in the last 15 years, the decrease was not due to a market crisis. The poor performance was due to an initiative by the Singapore Government as a “cooling measure.” The measure was a mix of two methods namely;
- Total Debt Servicing Ratio.
- Additional Buyer Stamp Duty.
The government introduced the measures because;
- There was a likelihood of speculation driving the property market upwards which could negatively affect the economy.
- The government wanted to ensure that there was a smooth recovery.
Singapore has experienced numerous property market crisis’ in the past, and the government learned the hard way. This time around, Singapore has been successful at averting a disaster, and according to speculation from real estate agents, the market will explode once again when the government removes the “cooling measures.”
The En Bloc Fever is something that every investor, seller, and developer needs to watch out for in 2018. The last few months have seen En Bloc purchasing numerous properties at hefty prices. The question on everyone’s mind is whether the fever will stay on.
Industry players speculate that the fever might go on for some time, which is good property news in Singapore. Developers, however, need to keep an eye on marker fundamentals so as not to get swept off.