Despite persistent coronavirus restrictions disrupting the market, home prices in Singapore saw a rise in price in the third quarter.
As per Bloomberg news, private property numbers grew by 1.1% from the previous quarter. As per data released by Urban Redevelopment Authority on Friday, it was higher than the estimated growth of 0.9% vs. the second-quarter growth of 0.8%.
Though the prices had slowed down compared to the first quarter when it showed a growth of 3.3%, they still reflect the real estate market’s resilience because start-stop measures were taken regularly by the Singapore Governed to counter Covid-19 infections. Like many other countries, Singapore witnessed a strong demand for homes during the crisis, with the ultra-rich fuelling the property market with aggressive buying.
According to Christine Sun, the senior Vice president of Orange Tee & Tie, a research and analytics company in Singapore, “the real estate market will end on a positive note by the year-end. Market Sentiments are likely to get better as the global economy is expected to do well next year”.
Sluggish sales
Singapore is learning to live with the Coronavirus. It is cautious when reopening the country as new cases surge and the daily infection count crosses the 3000 marks. The government imposed fresh curbs this month, but the infections showed no signs of abating, leading to fresh extensions on restrictions till November end.
Property sales declined for two months consecutively as prices escalated. Property developers shied away from launching new residential projects as virus restrictions kept buyers away.
Private homes prices may end up growing 6% to 8% for the entire year as per Nicolas Make, Head of Research and consultancy of APAC Realty Ltd, Singapore. This is much higher than the 2.2% growth last year.
Demand for private homes
According to Mak, demand for private apartments is high as buyers upgrade from public flats. The rising demand for public flats, which has fetched around S$1 million ($742,000) for some units, has encouraged people to cash on this momentum and raise funds to buy private units.
New launches are expected in 2022 as wealthy buyers are eyeing Singapore’s luxury properties.
