Investment volumes to remain strong for Singapore, while home prices are forecast to rise.
The prospects for the Singapore property market are bright, with investment volumes to remain strong and home prices forecast to rise, revealed a 2018 Asia Pacific Property Outlook report released by Colliers International on Wednesday (10 January).
On the back of strong economic growth seen in 2017, property investment sales in the city-state are likely to remain robust this year.
There was a slew of transactions in 2017 which amounted to an estimated $40.2 billion, up 54 percent from the previous year. The majority (54 percent) were residential deals due to the strong demand for sites via public tender and the collective sale market. According to Colliers, this was the highest annual investment sale value since the 2007 property boom.
“This positive momentum should carry into 2018, with a strong start anticipated in the residential sector,” said Tricia Song, Singapore research head at Colliers International. “As at January 10, there are 11 residential collective sale tenders closing in the next five weeks, including City Towers in District 10, and four GLS (Government Land Sales) tenders due on January 30.”
The property consultancy also expects private home prices to recover further due to demand from displaced sellers of collective sale projects and the large capital gains.
“Average home prices may rise by 17 percent over 2018-2021, supported by higher GDP growth, falling physical completions and ongoing collective sale deals,” noted Colliers.
credit to propertyguru