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Thread: Are there prospects for the prime residential market?

  1. #1
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    Default Are there prospects for the prime residential market?

    http://www.theedgeproperty.com.sg/co...dential-market

    Are there prospects for the prime residential market?


    By Ong Teck Hui / JLL, The Edge Property | October 19, 2015 12:00 PM MYT
    Districts 9, 10 and 11 in Singapore are considered home to the most prime residential properties on the island. Over the past few years, high-end properties have been hit hard by a series of government cooling measures. The capital value of luxury prime residential property has dropped some 20% since its peak in2011, while developer sales in prime districts fell 68%, from 1,302 units in 2011 to 422 in 2014 (see Chart 1).



    Chart 1



    Source: URA, JLL



    Foreigners accounted for a significant portion of private housing buyers in prime districts, but the introduction of the additional buyer’s stamp duty (ABSD) in December 2011 and its upward revision in January 2013 has slowed demand from them. In 2011, 31% of transactions of non-landed homes in prime districts were by foreigners, but they accounted for only 16% of the non-landed sales volume in 2014, having been deterred by the 15% ABSD imposed.

    Over the last three years, these measures, as well as the total debt servicing ratio (TDSR), have also reduced purchases by Singaporeans and permanent residents in the prime districts, with volume falling 50% to 55%. Both local and foreign investors have been significantly affected by the cooling measures, resulting in a considerable fall in prices and transaction volume in the prime districts.



    Unsold stock significant, but expected to ease gradually

    The slow demand and low transaction volume arising from the cooling measures have led to an oversupply of residential units in the prime districts. Slow developer sales have meant that many new projects are completed with unsold stock. This has led to the number of completed but unsold units almost doubling from 715 units in 2Q2012 to 1,420units in 2Q2015 (see Chart 2). However, the moderation in new launches has kept the 1,221 launched but unsold units in 2Q2015 quite similar to the 1,194 units in 2Q2012.

    http://www.theedgeproperty.com.sg/co...dential-market

  2. #2
    courtneyconley Guest

    Default Re: Are there prospects for the prime residential market?

    As far as I know, according to the Wealth Report, prime home prices in Singapore have climbed moderately when compared to other cities. Singapore placed 58th out of the 100 global markets tracked by Knight Frank's Prime International Residential Index (PIRI 100), with prime property prices rising 3.9% last year.

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