As per Morgan Stanley, a leading global financial services firm, the property prices in Singapore would start to see a 5 to 6 percent rise per annum from 2018. Not only this will end the long downtrend in home prices in Singapore but will also lead the prices to double up by 2030, as maintained by Morgan Stanley. The property prices in Singapore have been in a declining state for quite some time now. However, as per Morgan Stanley the downtrend is expected to end by 2018 and with beginning of a reverse phase where the uptrend will be seen.
Going by the stats, Singapore property price saw another decline in the first quarter of the year. However, the fall was a meager 0.5% in private home prices which is considerably low as compared to the previous downtrends. A point that deserves citation here is that this is 14th straight quarter of declines faced by the Singapore private property price.
The fact that the property market in Singapore was much closer to reach the bottom level, it would improve the buyer sentiments; the signs for which have already started showing. The very recent example of newly launched Park Place Residences can be cited for demonstrating the fact that the private property prices will be on the rise in the coming years. The entire phase one of the Park Place Residence was sold out initially at 40% of the 429 unit, which was later raised to 50% in just one day. This clearly highlights the fact that property prices will start growing in the time to come.
As per the bank, the effects of upward trend will start showing in this year and will continue growing in the upcoming years. It is estimated that the supply levels will fall 40% each year in 2017-18, it could also prove to be another reason for the prices to surge up.
The property bears, in Singapore, had their concerns with the aging population and home owners but as per Morgan Stanley, the rising household formation will be driven by singles in the coming years. Furthermore, skilled foreign workers in Singapore will contribute to the upward trend as noted by the Morgan Stanley. As per estimations, each one of five households in Singapore would be occupied by a single person.
The long and short of the story is that economic conditions of Singapore are on the verge to see the rise. There are chances, due to the external demands and rise and income growth, that it will outperform other developed countries. It can also be asserted by the first-quarter gross domestic profit growth of 2.5%. Whether the upward trends take places in the expected numbers or not it is yet to be seen but the stats and figures are clearly indicating that property price in Singapore is surely going to see a rise in the coming years.
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