Black Monday Blow To Singapore Property Market Recovery

  • 9 years ago
  • Uncategorized

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
“Black Monday” 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 what’s 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 it’s 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

“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.

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