The government has recently cautioned against an over-confidence in a real estate market rebound. Particularly in response to rising land bids and strengthening sales.
Sellers, developers, and investors remain optimistic about 2018
Developers, sellers, and investors, however, remain optimistic about the journey ahead, despite caution from the authorities. The government has recently expressed concern about the property market‘s sudden acceleration, cautioning market players about a possible fall in 2 to 3 years’ time.
Aggressive land bids and rising apartment sales have prompted this warning. Property prices rose quarterly this year, the first in 4 years. But investors, both local and foreign have waited long enough for the market shift to their favour and are ready to take the plunge, however deep.
In comparison with other major property markets in the region such as Hong Kong and Australia, Singapore’s property prices are still considered moderate. Prices in these other markets have risen continuously for many quarters.
In Singapore, property prices are deemed to have bottomed out in the past few years. A rebound only seems inevitable.
Government intervention possible in case of market instability
The Singapore authorities are however adamant about keeping housing prices at an affordable level. While the sector has been waiting for the government to loosen their reins on the property cooling measures implemented over the past 4 years, things may very well go the other direction.
Should instability seep into the real estate market, they may implement new moves such as more stringent terms for buyers and curbing bank lending to developers. It will also not be surprised if a limit on the number of units allowable per project is placed on new developments.