Singaporeans and foreigners still demand Singapore property despite the government’s levying of higher Additional Buyer’s Stamp Duty (ABSD) rates and the reduction of the loan-to-value ratio for residential properties earlier in July. As a result, some property prices show no signs of going down at the moment.
With the cooling measures’ impact on property sales, the World Property Journal said that buyers assume a “wait-and-see attitude.” However, new property continues to attract buyers because of the high demand, especially along Jurong Lake District. The demand is due to the expectation of the Jurong Lake District’s growth. Some people even call it the second CBD. Properties near and inside the area usually attract singles, young couples, families, and investors.
For instance, Twin Vew near Jurong Lake District sold the most units. Out of 520 units, 444 units were sold in the second quarter alone since its launch last May.
On top of that, the World Property Journal also said that foreign purchases of residential Singapore property still remain strong. One factor affecting this is Singapore’s economic stability. Another probable factor cited for the Singapore property market’s growth is the restrictive foreign property ownership policies from other countries such as New Zealand and Australia. However, the World Property Journal also noted that foreign sales are expected to decline “in the short term” because of the high ABSD rates.
This demand from both foreign and local inevitably results to Singapore property price appreciation. According to Edmund Tie & Company, property prices continued to increase in this year’s second quarter. The Urban Redevelopment Authority also said that the private residential price index increased by 3.4% q-o-q.
In addition, the World Property Journal reported that in the second quarter, both Singapore Permanent Residents (SPR) and Non-Permanent Residents (NPR) have bought a total of 1,354 units. This equals a total of 7.7% increase quarter-on-quarter (q-o-q) in non-landed homes. In total, the purchase of landed homes increased to 18% quarter-on-quarter (q-o-q). The landed property in Singapore also increased in sales, with an 8.4 per cent q-o-q, said the World Property Journal.
The World Property Journal said that SPRs preferred properties along commercial areas and transportation hubs. According to Edmund Tie & Company’s research, the top-selling properties around these areas are Twin Vew, The Tapestry, and the Verandah Residences. On the other hand, NPRs prefer properties near the city centre or those with a nice view. Such properties include Marina One Residences located in the central business district along with Seaside Residences and Amber Skye situated near the East Coast Park.
This is an indicator that property investments along these areas might have a high return.
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