With the record number of land deals sealed this year, next year will be an exciting one for the real estate market. Will there be many more new launches? How will the housing and population landscape of Singapore change?
Property market looks set to break out of slump in 2018
Residential, commercial and industrial. Land sites were sold off in large numbers this year. The appetites of foreign developers are growing. Home prices began to rise after 15 consecutive quarters of decline. Office rents rose for the first time in 2 and a half years. These signs and more are pointing to an exciting time ahead.
And the deals may not stop here. Analysts are expecting more than $3.3 billion of land deals to be closed by the end of this year. That would mean a annual total of $14 billion, the highest since 2011.
Residential and Grade A office sales to top list
Amongst the land deals out there, those zoned for residential and grade A office spaces were and are the most popular. Housing affordability is now at a level acceptable to most of the population and come 2018, a surge in demand is plausible. The overall brighter economic outlook as boosted developers, investors and buyers confidence. Home prices are expected to rise 10% next year while office rents are expected to rise 7% to 9% as unsold stock diminishes.
There has been talk about the possibility of Singapore’s property market emulating Hong Kong’s, where home values surge to record highs. But the difference may come from the government policies. They have resisted loosening the property curbs which were implemented since 2013. In March this year, the authorities did relax some restrictions which has unleashed pent-up demand. Should they release the reins completely, will the market run out of control? Or is it about time the reins are loosened?