Prices of private homes in Singapore have soared high

As estimated, the prices of private condos / apartments have reached their highest mark since the last five years, in the second quarter of 2019. Statistics have shown that the rise in demand for private residential areas in the nucleas and its outer circle of the city has led to the overall hike in its prices. The rate of rise is by 1.3% that has led to 150.5 points which is the highest elevation since the year 2014, that encountered an index point of 151.3. The upsurge has taken place in the last three months of the year after witnessing a fall in the 1st quarter by 0.7%.

Such escalation in demand came as a huge surprise to the analysts owing to the fact of the trade tension between USA and China. The only factor that has led to the creation of this unexpected scenario is that Singapore is considered as a considerably safe site, given the fact that investors and buyers have overlooked the temporary turbulences in the trade market and have taken into consideration the overall return in the long run.

On comparing the hike regionally, it has been observed that that on one hand, the private properties that are non-landed and situated in the center and its surroundings of the city have faced a rise of 1.5% in the last quarter while it fell by 3% in the previous quarter. On the other hand, its surrounding region faced a rise of 3% after a reduction of 0.7% in the first three months of the year and the homes in the rest of the city attended a rise of 0.5% in the latest quarter succeeding the upsurge of 0.2% in the preceding quarter.

Another reason that have been pointed out leading to this unforseen stipulation is the increased sales of the new properties and the upcoming projects being sold with their caliber of impeccable location. The homes encompassing the central arena are being sold at a rate of 2000 dollars per square feet and 367 of the newly constructed properties have already been sold.

The details that have been collected and recorded are based on sales till mid-June 2019 and will be next noted from July 26 to analyze the statistics for the rest of the year. Mr. Desmond Sim who is the head of the research group of Singapore and South-East Asia sees this sudden hike only as temporary and predicts that through the rest of the year the demand and prices for these private homes will witness a stability keeping aside the estimated downward pressure in the long run. The reason for this has been affiliated to the ambiguous global economic market and growing inventory.

The rise for the rest of the year is being predicted differently by distinct groups; some are forecasting it to be within the 1% to 3% window, and some believe that the growth of price will be encouraged further. Coming to the Housing Development Board Resale flats, the prices have fallen by 0.2% than the first quarters of the year.