Singapore Property market is reeling from the ramifications of 2016, a year to be remembered for being unpredictable particularly in the global political arena. Despite this, the housing market had a rebound in the fourth quarter 2016 with between 2,400 to 2,600 units being sold. This resulted in the quarter being considered the strongest for the year in contrast to its usual slow pace as observed by Ong Tech Hui, national director of research JLL.
The year also saw some developers introducing novel schemes to move unsold inventory. OUE Twin Peaks deferred payment scheme and stay-then-pay by CapitaLand for The Interlace and D’Leedon were the most notable. Other copycat schemes also came up with differing results. The schemes motivated the buyers to re-enter the Core Central Region.
Oxley Holdings rolled out the Phnom Penh and Batam projects in a bid to enlarge its global footing while it slated Kuala Lumpur and Dublin for 2017.
Mainland Chinese developers, Hao Yuan Investment and MCC Land had the highest number of launched residential projects in the mass-market and mid-tier segments. Qingjian Realty bought Shun Fu Ville, its first en bloc purchase at $638m. The figure was surpassed by D’Leedon (Farrer Court) that sold in 2007 at 1.34b and Leedon Residence (Leedon Heights) that sold for $835m in the same year.
A number of mixed-use developments achieved major milestones in 2016. Tanjong Pagar Centre by GuocoLand was completed and opened featuring new-to-market food & beverage concepts. OUE made an announcement that OUE Downtown will have The Work Project as the anchor tenant at the Downtown Gallery lifestyle mall. Also OUE Downtown has the first Oakwood Premier serviced residences in Singapore.
Hillion Mall by Sim Lian is set to be completed in the first quarter 2017 with 90% being leased. The mall is the first integrated development by Sim Lian that included Hillion Residences.
Singapore property market may be affected by the tough economic environment and the looming rate hikes of US Federal Reserve, which may, in turn, affect Singapore lending rates. This has resulted to Desmond Sim, Head of research, CBRE to project lower sales next year in comparison to 2016.