Strong And Stable

As far as ultra-high and high net worth property players are concerned, Singapore’s risk-averse real estate sector is far from boring

- Chloe O'Connor

PENT-UP DEMAND FROM INCOME GROWTH AND UPGRADING NEEDS WILL CONTINUE TO SUPPORT THE MARKET MOVING FORWARD. HOME PURCHASERS LOOKING FOR A SAFE HAVEN WITH APPRECIATION PROSPECTS WILL STILL FIND SINGAPORE ATTRACTIVE

It’s a tired trope throughout Asia to say Singapore lacks soul. Clean, walkable streets. Efficient traffic. Effective public transport. Well organised family fun. Innovative bars and restaurants. Shiny modern towers and lush planned parklands. Ugh. Who wants that?

Well, if we’re talking about players in the luxury property market, lots of people.

“Singapore is known as a safe haven in Southeast Asia, with a stable currency and transparent housing regulations,” says Christine Li, senior director and head of research for Cushman & Wakefield Singapore. “Risk involving property development is virtually non-existent for retail investors,” adds Li. After 15 consecutive quarters of price declines—which, experts say, signalled not softer innate demand, rather a wait-and-see attitude with regards to government policies—prices began rising mid-2017 and jumped 9.1 percent by the halfway point this 2018.

Experts are predicting a 10 percent expected value growth in properties this year, even amid recently implemented cooling measures as recently as July 5. Concerns about “euphoria” in the market had the government announcing it would raise the Additional Buyer’s Stamp Duty (ABSD) rates and tighten loanto-value (LTV) limits on residential purchases. The day before the measures kicked in, potential buyers flooded private home showrooms across the city-state hoping to lock in a sale at a better deal. The feeding frenzy resulted in sales jumping 55 percent yearon-year in July, with 1,724 units sold in July versus 654 in June. Developers brought forth new launches, offering 2,239 in July— the highest since March 2013.