reporter2
03-06-22, 10:47
Is this a good time to invest in a prime property in the Core Central Region?
June 2, 2022
In the post-pandemic world, while there is economic growth, rising inflation amid rising interest rates is a concern, given the heightened risk of a global recession. On the bright side, recessions present good investment opportunities, says Francis Tan, investment strategist at UOB Private Banking, at EdgeProp Singapore’s Mid-Year Property Market Outlook on May 21.
Singapore’s interest rates may be rising in tandem with the hikes in the US Federal Reserve rates, but at a slower pace, Tan notes. However, Singapore’s inflation rate is at its highest in a decade. “In a high inflation climate, investors are increasingly looking for ways to invest in assets to hedge against inflation,” he observes.
In Singapore, households are sitting on $1.16 trillion worth of residential assets in their overall balance sheet — way ahead of deposits and other investment classes (see chart, “Singapore household balance sheet (assets)”).
https://i.imgur.com/OmO63Qf.jpg
Despite the global market uncertainties, rising interest rates and property cooling measures in December, the Singapore private housing market has been resilient, says Ismail Gafoor, CEO of PropNex. Over the past eight quarters, from 1Q2020 to 1Q2022, the URA private residential property price index (PPI) has increased 14.1%.
In 1Q2022, while the overall private residential price index was up 0.7% q-o-q, the landed property price index was up 4.2%. In the non-landed segment, suburban condos in the Outside Central Region (OCR) still showed a 2.2% increase q-o-q, while the city-fringe or Rest of Central Region (RCR) and prime condos (Core Central Region or CCR) were down 2.7% and 0.1% respectively.
New private non-landed property sales in the CCR peaked at 2,466 units in 2021 — the highest in more than eight years, according to PropNex. In the first four months of 2022, about 551 units units in the CCR were sold, adds Gafoor. Singaporeans and permanent residents (PRs) are the biggest group of buyers in the CCR, accounting for 89.9% of buyers in 2021, and 88.5% in the first four months of 2022. A decade ago in 2011, Singaporeans and PRs accounted for 61.1% of buyers in the CCR.
The recent round of property cooling measures on Dec 16, especially the 30% additional buyer’s stamp duty (ABSD) for foreigners, could have tempered demand, reckons Gafoor.
Read more at: https://www.edgeprop.sg/property-news/good-time-invest-prime-property-core-central-region
June 2, 2022
In the post-pandemic world, while there is economic growth, rising inflation amid rising interest rates is a concern, given the heightened risk of a global recession. On the bright side, recessions present good investment opportunities, says Francis Tan, investment strategist at UOB Private Banking, at EdgeProp Singapore’s Mid-Year Property Market Outlook on May 21.
Singapore’s interest rates may be rising in tandem with the hikes in the US Federal Reserve rates, but at a slower pace, Tan notes. However, Singapore’s inflation rate is at its highest in a decade. “In a high inflation climate, investors are increasingly looking for ways to invest in assets to hedge against inflation,” he observes.
In Singapore, households are sitting on $1.16 trillion worth of residential assets in their overall balance sheet — way ahead of deposits and other investment classes (see chart, “Singapore household balance sheet (assets)”).
https://i.imgur.com/OmO63Qf.jpg
Despite the global market uncertainties, rising interest rates and property cooling measures in December, the Singapore private housing market has been resilient, says Ismail Gafoor, CEO of PropNex. Over the past eight quarters, from 1Q2020 to 1Q2022, the URA private residential property price index (PPI) has increased 14.1%.
In 1Q2022, while the overall private residential price index was up 0.7% q-o-q, the landed property price index was up 4.2%. In the non-landed segment, suburban condos in the Outside Central Region (OCR) still showed a 2.2% increase q-o-q, while the city-fringe or Rest of Central Region (RCR) and prime condos (Core Central Region or CCR) were down 2.7% and 0.1% respectively.
New private non-landed property sales in the CCR peaked at 2,466 units in 2021 — the highest in more than eight years, according to PropNex. In the first four months of 2022, about 551 units units in the CCR were sold, adds Gafoor. Singaporeans and permanent residents (PRs) are the biggest group of buyers in the CCR, accounting for 89.9% of buyers in 2021, and 88.5% in the first four months of 2022. A decade ago in 2011, Singaporeans and PRs accounted for 61.1% of buyers in the CCR.
The recent round of property cooling measures on Dec 16, especially the 30% additional buyer’s stamp duty (ABSD) for foreigners, could have tempered demand, reckons Gafoor.
Read more at: https://www.edgeprop.sg/property-news/good-time-invest-prime-property-core-central-region