Singapore Property | Based on CNBC report, there is an increased pace in the recovery of the residential market in Singapore after a prolonged downtrend.
Managing Director Asia Pacific Research, Cushman & Wakefield, Sigrid Zialcita said in the recent CNBCs “The Rundown” that the prices are expected to reach the inflection point very soon.
The reversal of the downward trend is due to the relaxation by the government of some the cooling measures which has assisted in improving the market sentiment.” We have witnessed a rise in foot traffic and it is enticing many buyers,” noted Sigrid.
Other real estate experts share the same sentiments that lowering the minimum holding period and reducing the seller’s stamp duty may help in stimulating market activity.
A good example was given by the CEO of PropertyGuru Hari Krishnan who revealed that the listings of property on its website had a 2.4% gain in March in comparison to the 2.0% gain in quarter one 2017 year-on-year.
“The rise in the listings could signify a boost in seller sentiment,” said Krishnan.
A recent note by Citigroup analysts also drew attention to the sudden uplift in sentiment after the government relaxed some of the cooling measures. However, they are of the opinion that there may be an exaggeration of the “exuberance.”
The analysts explained that it would make more sense for the buyers-to-be to wait for larger discounts from those developers rushing against time to sell their residential units before the deadline or to wait for considerable ease in policy. However, Singapore homebuyers tend to rush back into the market at the slightest sign of easing in case they miss the chance.
While it may not be possible to establish the actual effect caused by easing of policy, analysts have noted that one indicator of improved market sentiment is the strong interest received by Park Place Residences. The 429-unit development sold 50% of the units in a day.