Singapore Property | Projections by Savills point to a rise of between 15 and 20 percent in prices of private homes. This is a 12 to 15% rise from its previous forecast as reported in the Singapore Business Review.
Estimates by the Singaporean property market consultancy firm rose after 22 units sold for not less than $10 Million. These sales which happened over the past few months with 102 units were taken up for not less than $3,000 psf in the first quarter according to the Urban Redevelopment Authority.
There was an island-wide increase in the price index of private homes. It rose by an impressive 3.9% in Q1’s quarter-to-quarter analysis. This becomes the highest growth noted in nearly eight years since the second quarter of 2010. It comes after the last two quarters of 2017 saw a price increase of 0.7% and 0.8 % respectively.
Savills noted a 2.9% quarterly price gain in Q1 for luxury condominiums. Due to a cumulative 5.7% growth in four quarters since Q2 of 2017, these properties reached an average price of $2,383 psf. This was realized in Q1. The average price noted in May for private homes units is lower than the latest peak of similar development projects five years ago by only 1.9%.
Baby boomers are seen as the biggest factor driving the growth in the prices of private homes. They have been noted to be helping their children who are intent on climbing the property ladder. This was noted by Alan Cheong who is senior director at Savills Singapore. He heads research and consultancy at the property consultancy firm.
Savills has found out that buyers of private homes in Singapore are increasingly funded wholly or in part by their parents’ money. Savills noted this from observation of people who are visiting show flats.