2017 proved to be a happy one for owners of older private properties which have gone en bloc. The sheer volume of collective sales, which were mostly successful, last year was a boost for the real estate sector. How will the market perform this year?
Freesia Woods
Window for collective sale deals still open
Property analysts do not see the window for collective sales closing anytime soon. More than a quarter of increasing home prices and sales volume has provided the sector with a well-needed injection of developers’ and buyers’ confidence.
Developers’ aggressiveness in snapping up land indicates a rosier outlook for the local property market for at least the next 2 to 3 years.
Related: How will rising Development Charges impact Singaporeans?
Singapore’s economy has fared well last year, growing at 3% to 3.5%. That has also reflected in the property sector.
A general positive outlook about business growth and job prospects has also transferred onto the commercial property segment. More are investing not only in residential properties but also the office, industrial and retail spaces.
Continued recovery of high-end homes?
High-end private homes are making a steady recovery. Property experts are hoping to see a strengthening market this year. Properties in the central region have fallen the hardest over the past 4 years but have made the strongest rebound last quarter.
International and regional investors are finding Singapore’s market to be still affordable compared to the skyrocketing prices in other popular cities such as Hong Kong, Sydney, and Melbourne. While volatility is always present, the outlook remains promising.
