Despite numerous indicators that the Singapore property market is recovering, experts are demanding more proof before they officially announce an improvement.
The latest indicator that the market is picking up was the recent sale of an executive condominium building (Hundred Palms Residences EC) in Hougang which was snapped up within just seven hours of being put on the market. This is the first time in three years that the Singapore property market has witnessed such a speedy transaction.
Regardless, property specialists are still searching for more clues that the Singapore property market is finally on the up.
“Typically, in a boom market, prices, rentals and sales volume will all increase. We have not seen that yet,” commented head of research and consultancy at ZACD Group, Nicholas Mak. “I won’t say the whole property market has turned around. One swallow doesn’t make a summer,” he added in regards to the swift Hundred Palms Residences sales.
Increased market optimism – powered by low interest rates, a modification in some market cooling measures and a healthy stock market – has helped to spur new home sales in Singapore.
However, regardless of the increase in sales, property experts have announced that it’s too early to declare a full recovery as it is not broad-based.
“The good performances of recent launches indicate that there is pent-up demand,” said Wong Xian Yang , head of research and consultancy at OrangeTee.
“[But] prices have stubbornly continued to decline. So it might be too soon to say that the market has finally turned a corner.”
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