Expect the Property Market Prices to Increase from 6-10%
People looking for buying property in Singapore, one of the leading economies and also one of the fastest developing countries in the world. The strong economy position also makes it a good attractive place to invest in property. It has one of the best shipping ports along with a large oil refinery and it also has a lot of tourist attractions which has made people all over the world to buy properties as a vacation home or for rental income.
The property market largely relies on the foreign investors as it makes a very good investment for them. With the property values soaring the last few years, investing in properties is a safe bet for everyone. With a stable economy, stable government, safe environment and soaring prices have made investors flock to Singapore to buy properties in huge numbers.
But the first half of 2017 has given mixed signals in terms of the price rise, surging sales and rental etc. The sales in property has surged up to 46% year on year and people who are watching the property market in Singapore keenly believe that it is headed for an inflection in the second half of 2017. With the sales picking up in huge numbers, one can expect a hike in property prices too.
2017 also has seen a reverse trend, where according to Derek Tan from the DBS Group research has claimed that the first half of 2017 has seen almost 90-95% of home buyers were local Singaporeans and when the foreign investors flock the market later, the prices may certainly go to the higher side. It is expected to rise from 6-10% in the next two years.
The price increase will also be maintained by the market absorption rate, as it is certainly at a low as of now. The unsold inventories itself amount to 29000 units and current market absorption rate is positioned at 2.1x, which is fine in the suburbs.
The only way to inspire more foreign investors and local Singaporeans to invest in second homes for rental incomes is reducing the ABSD rates. The current ABSD rates stand as a major blocker in terms of affecting people from investing properties. The current ABSD rates need to be lowered by up to 3% to encourage people in investing in Singapore and then take a stand after 2 years based on the market’s reaction to the decrease.
The government also has also come up with various measures to cool down the property prices by increasing the stamp duties in the purchased properties, debt repayment should be less than 60% of a person’s monthly income along with increasing the stamp duties for people who hold the properties for a short term. It has increased the stamp duties up to 16% for people who are willing to sell their property within a year of purchasing it.
Many has already know that EC is getting limited, supply is low. Hence buyers ought to act now or got to wait for the next available GLS. Parc Life EC is already more than 60% sold. As the TOP date is nearer, official is expecting a sold out soon. For latest Parc Life EC Prices and information, please refer to our official home page. Parc Life EC is open for booking, first come first serve basis. If you have not visited the show flat, you can contact us to book an appointment now.