Singapore home prices to increase by up to 7% this year | Realestate Asia
,Singapore
17 views

Singapore home prices to increase by up to 7% this year

Analysts revised up pricing outlook as the probability of cooling measures wanes.

Singapore has moved to Phase 2 (heightened alert) from 16 May to 13 Jun, due to a resurgence in community COVID-19 cases, resulting in stringent safe management measures. According to RHB, under the revised guidelines, show flat capacity will be reduced drastically and buyers are limited to groups of two with similar restrictions on resale flat viewings. 

The move has helped cool down some of the frenzy in the residential market, with resale volume falling 11.4% MoM in May based on the latest Singapore Real Estate Exchange (SRX) data.

Similarly, RHB says developers are also seen postponing their new launches, with May and June new sales volume expected to take a hit. The tightened measures however have lowered the near-term risk of additional stringent cooling measures in our view as the Government is likely to adopt a cautious approach amidst current uncertain market conditions. 

“We revise up our pricing outlook for 2021 to 5-7% (from 0-3%) and maintain our full-year new sale volume estimate of 9,000-10,500 units. Key reasons underpinning our revised outlook are reduced probability of cooling measures and resilient job market with falling unemployment levels.”

 

Get Realestate Asia in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

There were no new project launches in June.
The Osaka Umeda Twin Towers South will lead the supply throughout 2022.
Newcastle, Wollongong, and Gosbord are attracting hefty investments.
Investment sales surged to 86.3% in the second quarter despite tightened restrictions.
One company will invest US$10b in Japan, 70% of which will be invested in office buildings.
Institutional investors accounted for 71% of all commercial transaction volumes in the quarter.
This was boosted by two Blackstone portfolio sales - Milestone ($3.8b) and Kingdom II ($825m). 
Rents in Tokyo dropped 6.5% while Osaka and Nagoya recorded only 2.2% and 0.6% declines, respectively.
Occupancy rate in the Raffles Place / Marina Bay precinct reached 94.3% in Q2.
One of the demand drivers were tenants seeking small spaces of less than 1,000sqm.
Hong Kong’s strong export rebound and rise in food consumption would increase this asset’s value.
Island-wide rents declined 9.3% to S$26.20 per square foot per month in Q2.
This is a huge improvement from the 28% drop recorded in 2020.
It is also important to consider who pays for the technology infrastructure, the occupier or the developer? 
The APAC Prime Office Rental Index declined by just 0.8% despite Delta variant outbreaks.