A property consultancy service company; Savills.co.uk have predicted that the prices of residential homes in Singapore may rise about fifteen to twenty percent for the rest of the year 2018; this is a slight increase from the previous forecast of twelve to fifteen percent.
This altered forecast came as a result of twenty-two units being sold at the rate of ten million dollars each over the last couple of months. This includes over a hundred and two units occupied for about three thousand dollars in quarter one.
Private Home Prices Increasing in Singapore
The demand for these residential homes seems to be increasing over the months and with an increase in demand comes scarcity in the availability of these homes which lead to makes these houses more expensive.
This was again noticed in the island private-home-price index which experienced an increase in value by 3.9% over the quarter-on-quarter in Q1.
This has been deemed the highest increase in growth in over 8 years since the period of Q2 2018. This is followed by lesser quarterly-gains of 0.7% and 0.8% in both the 3rd and 4th quarters of 2017.
Home Prices in Singapore Rebound
Home prices have seemed to recover and rebound in the last three-quarters, resulting in a more aggressive push for land-bids coming from various developers as the property-market dismissed cooling-measured which include putting on extra taxes-to-limits on debt loans. The government in the month of February increase the tax levied on home-purchases whose value exceeded a million Singaporean dollars (about Seven hundred and sixty-four thousand US dollars) this was done concurrently as the apartment-sales-market had touched peak levels.
This has particularly led to luxury-condos recording an increase in price-gains of 2.9% over the quarter in Q1. This is followed by a cumulative increase in growth of 5.7% over 4 years successively from Q2 2017, the properties have all reached an average price of two-thousand-three hundred and eighty-three dollars in the first 3 months of 2018, and that figure represents only 1.9% lower than the top figure five years ago.
Luxury Condo Prices Increase
A singular factor responsible for the increase in prices of homes in Singapore is that baby-boomers are assisting their babies to scale up the property ladder, according to Alan-Cheong, the Senior-Director of Research and Consultancy at Savills-Singapore.
According to Sim, with over ninety percent of residential properties sold in 2017 at under two million dollars, homebuyers can now go for smaller units to maintain their budgets until the value of homes rises again. There can be no denying that the Singaporean property market is entering into a new stage of increase in market prices of land and property.