Growth Spurt

Singapore’s Core Central Region is witnessing strong property sales despite concerns over the impact of COVID-19.

- Alexander Karolik Shlaen

While penning these lines, the pandemic is rapidly spreading around the world. But the launches of new residential projects in Singapore seem to be on another planet, not affected, with some reporting exceptional sales to mostly local buyers. There are difficulties with the foreign buyers, especially the Chinese, who in some cases were unable to attend the viewings or finalise their deals because of the travel ban.

But what is happening in the Singapore property that draws 2,000 visitors last weekend to the new higher-end project by Wing Tai Asia and makes them snatch 70 per cent or over 360 units with prices averaging SGD 2,450 (approx. USD 1,753) per square foot?

NEW PLAYING FIELD

A study by the IMF showed that Singapore’s private residential prices appear to have decoupled since 2013 from the global chase for yields. The demand by foreign investors for the local property was so strong that the Singapore regulators had to undertake extreme measures in recent years. This jubilant love for Singapore properties, said the study, which was released within the annual Financial Stability Review of the Monetary Authority of Singapore (MAS) end of last year, was behind the steep rise in prices. By targeting sources of risks including transactions of speculators, foreigners and corporates through stamp duties, the cooling measures undertaken by the local authorities since 2013 have limited excessive property price increases. In fact, it made the prime residential property undervalued. And it left the playground to mostly local buyers and investors.