The resilience of Singapore's housing market, as evidenced by the recent surge in home sales despite cooling measures, points towards a promising future for property prices. The government's efforts to curtail the market have had limited impact, indicating a strong underlying demand that continues to drive growth.
While other global financial hubs grapple with slumping sales due to rising borrowing costs and inflation, Singapore stands out as a beacon of stability. The government's measures, including increased stamp duties for foreign and second homebuyers, aimed to maintain affordability but have not deterred local buyers, who have been the driving force behind the market's buoyancy.
Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie, attributes the growth in transactions to domestic buyers, highlighting their resilience in the face of new taxes. However, a potential drop in new home sales is expected in June due to a lack of project launches.
Notably, certain developments launched in May have seen robust sales, suggesting a positive sentiment in the market. For instance, The Reserve Residences and The Continuum have achieved impressive sales figures, further supporting the notion of a thriving housing market.
Bloomberg Intelligence predicts that Singapore's home prices could rise by up to 5% in 2023, building upon a 3.2% gain in the first quarter. This projection aligns with the supply-demand dynamics in the market, which continue to favor price appreciation.
Even with the higher stamp duty in place, some foreign buyers remain undeterred, as evidenced by their involvement in recent property transactions. Blossoms by the Park and The Continuum have attracted buyers from various countries, indicating continued interest from overseas investors.
As the transition period for the higher stamp duty unfolds in June, its full effect will become clearer. Additionally, the equal treatment of Americans as locals in Singapore's property market may contribute to them becoming major foreign buyers.
Singapore's resilient housing market demonstrates the ongoing attractiveness of the city-state's real estate sector amidst challenging global conditions. With this in mind, investors and homebuyers should carefully evaluate their options and adapt their strategies to capitalize on the market's potential.
(Source: Bloomberg)
Comments
The robust sales of certain developments are proof that Singa…pore's housing market is partying like there's no tomorrow!
Domestic buyers in Sing,,apore are like superheroes, showing resilience in the face of new taxes!
While other financial hubs are struggling, Siapore is strutting its stuff like a confident peacock
It may just hard for normal people to buy a house
Hope the housing price can do down!!