2015 marks the 50th anniversary of Singaporean Independence and the year is shaping up to be a good one as according to the latest Credit Suisse report just released says that housing prices not likely to tank.
The government doesn’t want to cast a shadow on the looming election and most likely keep housing prices on an even keel, this will become even more important amidst Singapore’s rising and volatile interest rate arena the report concluded.
Kingsford Waterbay Serangoon
In the past affordability was managed by the government using housing price cooling measures like the Additional Buyer’s Stamp Duty (ABSN) and Total Debt Servicing Ratio (TDSR) to keep the prices from rising too quickly and to curb foreigners from entering the Singapore Real Estate Market. They also were instrumental in reining in speculative buying of Kingsford Waterbay properties.
The Singapore prospective homebuyers would still like to see the market drop a bit more. They are still hoping to see a further drop in the housing market prices for Kingsford Waterbay.
This is not likely to occur according to the article and it isn’t really in their interest to see prices fall with Singapore’s 90% home ownership rate and with 47% of most people’s assets tied up in the real estate.
Kingsford Development Pte Ltd
In fact, to quote the article, “”We believe the Government is a perhaps more unlikely to “”compromise”” the wealth of its population, ahead of an election as the sentiment of the confidence in the government is a key factor in any election, We also highlight that in Singapore, the largest landholder is the government and significant downturn would adversely affect the people’s perception of the current government.””
Property price index
Private properties pricing throughout Singapore are to remain level though within the prime market a 5 – 10% slide may be created by weak rental demand and vacancies in large developments, and unsold housing Kingsford Waterbay units.
The market indicates a sideways trend for the mass-market housing. Especially those with extra amenities such as close proximity to MRT stations could spike up 5 to 10% in 2015. Those without such benefits may face a downturn in demand and risk having units staying Kingsford Waterbay vacant.
This same report also indicated that many public housing projects that will complete this year could divert demand from mass-market homes causing a decline in prices in this portion of the housing industry.
Prices for private homes dropped 4% last year as compared to a 1.1% increase in 2013. This data was released Friday by the URA (Urban Redevelopment Authority)
This is the 1st year there was an overall price decline since 2008 in the private sector the report concluded with