2016 has proven to be a fairly good year for the property market. Despite slight price fluctuations, prices and sales volume have been stabilising for a few quarters now, giving analysts hope that it’s on a timely road to recovery.
Though the government has yet to indicate an easing of property cooling measures, the market as managed to right itself within the past year or so. Signs of the luxury property market picking up point towards the property market possibly bottoming out soon, which would also mean the market’s on the road to recovery. In Q2, the fall in private residential price index was a mere 0.4 per cent, the smallest thus far. The market has also been correcting itself for 11 consecutive quarters now.
Since the 2013 peak, property prices have fallen 9.4 per cent. With the interest rates currently low and looking like it will remain so for a longer period of time as opposed to extreme fluctuations, borrowing is kept at a healthy level sans the danger of over-borrowing or a property bubble looming. Investors may be refocus their attention on other sectors, keeping the property sector speculation-free.
Global situations such as Brexit or global terrorism may indirectly affect the investment environment and sentiment in the country and region, but Singapore’s real estate market is considered one of the safest and investors are increasingly looking at longer-term capital appreciation.