The delicate Singapore property market is now set to be damaged by lack of investor confidence owing to the huge exits being made from the Chinese stock market. The Chinese stock market falls being dubbed âBlack Mondayâ come at the worst time for Singapore property market.
Real estate sales in Singapore looked like they were actually turning a corner but further analyst reveals a delicate situation. The reality being that figures for property sales in Singapore were being skewed by one major project . CNBC report that over 70% of transactions came from new development at High Park Residences in Northern Singapore
A recent OPP Today interview with Excell Chua, Business Development Director at Asian website PropertyGuru reveals more about whatâs going on in Singapore.
"The Singapore property market is unlikely to have a quick recovery. The Monetary Authority of Singapore (MAS) mentioned just last month that itâs too premature to ease the policies. We are probably looking at a period of stagnation for the next two years. Factors dragging the property market include increasing private housing inventory (surpassing the demand), rising vacancy rate, lower GDP growth, slower population growth, slower labour productivity growth and increasing restrictions on foreign talent, among other things"
Meanwhile Alan Cheong, head of real estate research at Savills, describes the current state of the market as "multi-speed".
"The high end of the market is still jammed, but the smaller units in the mass market are moving," he said.
"Cooling measures have enacted a huge hurdle, where larger apartments and landed properties that came with a high price quantum cannot clear the national affordability level," he said. "All this has done is re-channel domestic demand to smaller sized units," he said.
Despite their mixed impact of the market, analysts don't expect the measures to be rolled back anytime soon.
Asian investors made a stampede for the exit on Monday, with China'sShanghai Composite index posting its biggest one-day percentage loss since 2007, as fears surrounding the health of China's economy multiplied.
Are you looking to buy property in Singapore ? Singapore
Are you looking to rent property in Singapore ? Singapore
Author
Richard Blake