Singapore home prices may rise by more than 10% next year: consultants

Some developers and consultants have high hopes for Singapore’s residential market next year.They are saying that both the mass market and the high-end segment could see rises of between 10 and 20 percent.Home prices for the first three quarters have already beaten most market expectations, rising 5.7 percent versus consensus of 5 percent.

Encouraged by the strong showing, some consultants and developers see another good year in 2007 for the residential market.

They are especially bullish on the high-end segment.

Lui Chong Chee, CEO, CapitaLand Residential, said: “We see that there is possibly growth in prices, again in the teens. Why this is happening is because Singapore is still attracting much financial services, like wealth management, like investment banks – they are still moving into Singapore. There is tremendous opportunity for employment and we believe there are opportunities for the property market to grow.”

But analysts are also expecting to see growth in the middle- and mass market segments.

They say the commencement of mega projects will drive employment and raise the confidence level among the heartlanders.

Michael Ng, Managing Director, Savills, said: “All these projects will have huge contracts, sub- contractors, suppliers, demand for workers, the IRs will have huge demand for employment. So all this will certainly flow down to the lower level. So really we see for this sector, which is really untouched since the crisis, it could go up by 10 to 15 percent in the next 12 to 18 months.”

Flash estimates released by the Urban Redevelopment Authority this week showed that private home prices rose by 2.5 percent in the third quarter, the fastest pace in more than 6 years.

Source: Channel NewsAsia, 06 October 2006

Join The Discussion

Compare listings