BankBazaar Singapore – January 2, 2018
SINGAPORE: Singapore’s real estate market could be on its way to recovery after a long period of slump, as a recent data showed that big property deals jumped to the highest level in a decade. According to a media report, property transactions of S$10 million and above were valued at around S$35.64 billion in 2017, the highest level recorded since 2007 when such deals were valued at S$41.1 billion. In 2016, such deals amounted to approximately S$22.7 billion.
The report came weeks after the Urban Redevelopment Authority (URA) data showed property prices in Singapore were bottoming out amid renewed demand and improved job market conditions. According to URA’s preliminary data, Singapore’s Residential Price Index, which tracks the prices of private residential properties in Singapore, rose 0.7% QoQ in the three months ended September 2017. The index rose for the first time in about four years and signalled revival of demand.
Another report from RHB Research had also recently suggested that Singapore home prices could go up by as much as 7% in 2018 on back of fresh optimism among property buyers and stable employment conditions.
According to a research report from one of the leading real estate firms, the recovery in Singapore’s real estate market in 2017 was mostly driven by strong growth in en bloc sales. These sales, the report added, jumped to over S$8 billion in 2017 from just S$1 billion in 2016. However, analysts also warned that the en bloc sales fever might cool down in 2018 as the price gap between property owners and property developers widens.
The revival in Singapore’s property market in 2017 was also aided by the government’s move to ease some restrictions on residential property buying. In March 2017, the Singapore government announced a reduction in seller’s stamp duty and also reduced the holding period to three years from four years previously.