The private residential market in Singapore appears to be stabilising in line with economic fundamentals, said Chia Ngiang Hong, president of the Real Estate Developers’ Association of Singapore (Redas).
“In the beginning of the year, most analysts expect new home sales for the year 2020 to remain resilient and roughly match 2019’s level. Prices of new homes are not expected to change much,” Mr Chia said at the Redas Spring Festival lunch on Friday at Orchard Hotel.
However, new home sales performance has been uneven across different projects and segments, and property developers’ concerns over the upcoming supply and build-up of unsold inventory remain, he added.
Redas is “reassured” that the Singapore government will act where and when needed to maintain a stable and sustainable property market, Mr Chia said.
Moreover, Singapore’s economic fundamentals remain sound, and the Republic continues to attract global capital, talent, businesses and investments. “The very strong growth in fixed asset investments and foreign direct investments in 2019 despite strong headwinds is testament to this. Our monetary and fiscal systems are well managed and sound,” Mr Chia noted.
He highlighted that in the Urban Redevelopment Authority’s Master Plan 2019, new decentralised growth centres outside the central business district (CBD) are being planned and developed. The central area is also being incentivised for rejuvenation and redevelopment through the CBD and Strategic Development Incentive Schemes.
“Opportunities abound for us to work with our government and city planners to further develop, transform and modernise Singapore,” Mr Chia said.
“Climate change, technological advancements, smart innovations and evolving needs and aspirations while disruptive will also present new opportunities for our real estate businesses.”
All the abovementioned factors will help to anchor and support the growth of Singapore’s economy and keep real estate businesses and the market resilient and stable, despite current challenges in the macro-environment, he added.