A higher proportion of home sales are now coming from serious home seekers while foreign buyers and market speculators have taken a backseat. That, however, does not necessarily mean selling prices are low.
Recent findings have revealed that most buyers are home upgraders. With a nose for quality buys in good locations. In fact, this growing pool of buyers has driven prices of some suburban homes up to the level of properties in the city fringes, for example in the outskirts of Orchard road.
It is not uncommon for home upgraders to purchase properties near their existing homes or in the suburbs. But the prices have narrowed significantly of late. The effect is partly due to the dip in investors interest in city fringe properties. Prices here have been flatlining while interest in upgraders’ zones has picked up. Previously, prices of city fringe properties would have been approximately 8 per cent higher than that in upgraders’ zones. But the gap is now closing as prices have been rising in the latter.
Dual speed for property market moving ahead
Property analysts are expecting the property market to power ahead for the rest of the year, albeit in dual speeds. A rather strange circumstance prevails, where the market shows sign of stabilization while some segments enjoy a quicker rebound. The fervency in the en bloc and land sales sectors may also be a precursor to higher home prices when these new developments launch. Properties with good value for money will no doubt continue to secure keen buyers.