Property markets in the Asean group of countries have grown in leaps and bounds over the past few years. But amongst this group of South-east Asian countries, Singapore’s property sector proves to be the most promising.
International research body estimates 8% rise in home prices this year
The lively atmosphere in the collective and land sales markets last year has driven up demand while reducing the supply of units available for purchase. It has taken a number of resale units out of the market.
This means buyers’ attention will be directed to new launches. It might also boost speculative buying on private properties in the vicinity of these sites.
Morgan Stanley Research has estimated a growth of 8% in home prices this year and also in 2019. Credit Suisse‘s anaylsts are expecting home prices to rise as much as 10% this year, on the back of successful collective sales. In the rental front, OCBC has given an estimate of 5% to 10% rise on rental prices.
The Philippines stands out as an emerging market
Elsewhere in the region, the Philippines is steadily showing its mettle and coming forth as an emerging Asean market. Both in the residential and office segments, prices have space to grow. The previously exuberant property sector in Thailand and Indonesia may be slightly muted this year.
In Thailand, pre-sales is expected to moderate from 30% to 17%. While in Indonesia, a cyclical slowdown is expected, especially in lieu of the 2018 regional polls and 2019’s presidential election.