According to the Morgan Stanley bank in the US, the private property pricing in Singapore will be higher, up to 10% higher. They state that these prices are going to increase each month, although this is not exactly related to the housing board flats. There was a cooldown for the market, but the outcome is pretty much better at this point thanks to the numerous improvements. There’s still a need for some very important changes in the sector, but it’s safe to say that this year was great when it comes to the transaction volume.
The real estate prices are reaching a high point right now and the developer sales volumes are sustaining a growth rate which is around 50% per year. It’s an unprecedented thing to have, so that will obviously translate into higher property prices.
Then there’s the fact that more and more collective deals are on the horizon. These are actually a great thing to have and they only go to show that there is a focus on getting a better income from deals like this. Of course, this does tend to translate into some better pricing and on its own this can be quite refreshing and interesting.
The collective sales surge is by far the best booster in this situation. But it will work to the market advantage, because it brings all those benefits for the market. The property inventory is getting smaller, so the prices will become higher and higher. The reason is simple, the rising demand and low supply are leading to situations like this, which are not the best thing you want to opt for.
In fact, there are 30 collective sales in progress at this time, so the results can indeed be more than interesting and outstanding at this particular time. How this will end up affecting the market it’s rather hard to say. But what we do know is that there will be a stock price re-rating, and that will bring in front some rather unique and distinct solutions that you will appreciate and enjoy quite a lot in the long run. One thing is certain, harnessing all these benefits will prove to be a crucial aspect in the near future and it may work in a very distinct and unique manner in the end.
Find out more about this analysis from the Straits Times article below,
Upcoming new launch condos in Singapore