Singapore Private Residential
Property Report:
Current situation and outlook for foreign investors and expatriates
Residential Sales Market Singapore
Following its decelerating momentum from end 2007, the private residential property market began 2008 with continued cautious sentiments from both developers and buyers. Launch activity stayed tepid in 1Q 2008. Based on figures from the Urban Redevelopment Authority (URA) as at March 2008, the total number of units launched so far this year stood at 1,395 units. These figures for total new launches in 1Q 2008 reflect an 18.9% quarter-on-quarter (qoq) drop in the number of units launched in the market.
Provoked by the global credit crunch, resale activity in the private residential market witnessed a general slowdown in the second half of 2007. Latest figures indicate that the total number of secondary sales islandwide dropped by 35% from 3,521 units in 4Q 2007 to 2,304 units in 1Q 2008.
An air of disquieting calm in the overall private residential market persisted in the initial months of 2008, largely due to the aftermath of 2007’s spectacular performance, impeded by ominous global economic woes. Preliminary figures show that 2008 began with only one unit being transacted at above S$4,000 per square foot (psf) in the private residential market so far. This was a unit at The Ritz-Carlton Residences, which was sold for S$4,140 psf in February 2008. Latest statistics indicate that in 1Q 2008, the overall prices for private residential property on the whole climbed by 3.7% qoq and 29.8% yoy.
Foreign Buyers of Singapore Landed & Non-Landed Residential Properties in 2008
Source: Urban Redevelopment Authority & Knight Frank Research
See also : Buyers' Guide and Investors' Guide
For further detailed information visit the website below.
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Outlook Residential Sales 2008
With the financial sobriety of the US and global economic markets in question, the private residential property market remains insipid, but awaiting anything that may thwart its dynamics. However, it is not all gloom as statistics indicate that despite abatement in increasing growth, the market did not do a complete turnaround and cripple the private residential property sector.
The thin transaction volume of private residential properties is expected to continue for the next few months. Looking ahead, as long as current market uncertainties persist, local home price growth is anticipated to moderate. For the entire 2008, overall home prices are envisaged to increase by between 5% and 12% yoy. However, if the Singapore economy were to contract this year, private home price growth could range from minus 1% to a positive 5% growth for the whole of 2008.
Source: Knight Frank Research
For further detailed information visit the website below.
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Residential Leasing Market Singapore
The previous quarter (3Q 2007) displayed an increase of 11.4% qoq in terms of island wide rentals transcending the formerly unparalleled growth of 10.4% qoq in 2Q 2007. The rental market is expected to slow down owing to 4Q 2007 being an off-peak season for the market. For the months of October and November, the rental market that is customarily active has subdued this time around.
One of the reasons for this relates to foreign tenants. Due to the fact that most foreign schools are full and there are long waiting lists for children of these foreign families who are relocated here, the housing demand for new family tenants is projected to decrease. On top of this, tenants as well as corporate HR have readjusted the housing allowance this year, which constricts tenants according to their budget allowance.
In essence, rentals in popular districts such as 9,10 and 11 have slowed down a bit with rentals easing about 1.5% to 2% qoq. The prime east coast area too experienced a slowdown in rentals, dropping by about 3.7% qoq. The more affordable areas in the far north have seen some appreciation of 27.9% qoq and 89.7% yoy, hints of the market just catching up. In general despite take up rate decelerating, the market still remains healthy although rentals are not expected to appreciate much more in the next quarter.
Source: Knight Frank Research
See also Housing Market Singapore - Rental Guide
For further detailed information visit the website below.
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Outlook Residential Leasing 2008
The rental market in 2008 is expected to remain active with a decrease in the number of international transferees inbound for Singapore. Rentals in district 9, 10, 11, 15 & 16 and the areas surrounding the International Schools are expected to stabilize. The supply of apartments and houses is expected to remain low until new stock comes back in to the market in 2009/2010.
The rents in the high end private property market is expected to take a step back with some correction as the demand in this sector diminishes.
Rentals are expected to enjoy larger growth than prices in 2008, expanding within the range of 10% to 17% yoy because demand is anticipated to remain healthy, while supply is still fairly moderate.
For further detailed information visit the website below.
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