HOUSE PRICES IN SINGAPORE
The house prices in Singapore is falling but the demand for the house is also increasing rapidly and more strongly. With this increasing demand for the houses, the home builder is now satisfied and their sentiments are also improving. The index of private residential property fells down by 2.77 percent. According to the estimates of Urban Redevelopment Authority (URA), this index is falling from 13 consecutive quarters. When adjustments are made for inflation rate than during this period house prices in Singapore fells by 3.45 percent. During the first quarter of 2017, with the inflation-adjusted rate of -0.56 percent then the house prices in Singapore falls down by 0.36 percent.
Here we talk about the house prices in Singapore’s different regions:
- In a region which is called as Core Central Region (CCR), the prices of private residential properties (non-landed) are decreased by 1.9 percent with the inflation-adjusted rate of -2.6 percent.
- In the rest of central region, the house prices in Singapore is fell down by 2.5 percent with the inflation-adjusted rate of -3.2 percent.
- In the outside central region, house prices in Singapore fall down by 2 percent with the inflation-adjusted rate of -2.6 percent.
The deliberate government policies are the main cause of the continuous decrease in house prices in Singapore. The property market of Singapore surged before and after the economic crisis. The overheated property market is faced by Singapore. The government of Singapore is taking steps for balancing the house prices in Singapore. “In October 2012 it limited the mortgage term to 35 years and lowered loan-to-value (LTV) ratios to 60% for loans longer than 30 years (or loans stretching beyond age 65). This was only the first of 10 rounds of property-market cooling measures. Seller’s stamp duty (SSD) was then introduced on owner-occupied housing sold within a year of purchase. A little later, the stamp duty was revised upwards, with sakes of owner-occupied houses taxed sold within a year of acquisition taxed at 16% of sale price. Then the holding period was increased from one year to four years. In subsequent rounds, LTV ratios were lowered and minimum cash down payment increased.”
But these measures do not work and the property prices kept surging.
Mr. OngTeckhui of Jones Lang LaSalle said that “The policy relaxation is likely to be seen as the beginning of the unwinding of cooling measures and this is expected to lead more buyers back to the market. Buyers would perceive the market as bottoming and be hopeful of a price recovery.”
The improvement is shown in the market sentiments. “New private residential units sold more than doubled in Q1 2017 from a year earlier, to 2,962 units, according to the Urban Redevelopment Authority. Though, other factors, such as low-interest rates and relatively more affordable property prices, have also contributed to the recent sharp increase in sales.”
The housing market of Singapore is expected to become stabilizes in the coming months. Some local property experts said that many investors lured back into the market.
“With improvements in transaction volumes and prices of different market segments showing a mix of mild increases or decreases generally, the private home sales market appears headed towards a bottoming in the next few quarters, provided sentiments remain positive and barring major external shocks,” said Ong TeckHui.
Here I am going to discuss the prices of some major residential developments.
- The house price in Singapore of The Clement Canopy ranges from 859 dollars per square feet to 1086 dollars per square feet.
- The price of Grandeur Park Residencies ranges from 970 dollars per square feet to 1152 dollars per square feet.
- The price of iNz residencies (EC) ranges from 499 dollars per square feet to 610 dollars per square feet.
- The prices of the Park Place Residencies at PLQ ranges from 1143 dollars per square feet to 1581 dollars per square feet.
The demand for residence is increasing in Singapore. In 2017 5202 units are established in Singapore. Among this value, 343 units are completed and 2619 units are still incomplete private residential properties. The reason behind the fall down of the house prices in Singapore is decrease in the interest rate on the loans provided for housing. The rise of house prices in Singapore is very slow.