Foreign interest is returning to Singapore property residential market
Foreign demand is expected to return to the Singapore residential property market this year, Bank of Singapore (BOS) believes. This is backed by the prospects of a price recovery and better leasing environment, as well as the fact that home prices have fallen to a sweet spot after four years of decline to render the market more affordable compared to other global cities.
BOS head of strategy Eli Lee said in a report last Friday that the recent bullishness in the housing market has so far been largely driven by domestic buyers. But he expects foreign buyers seeking relative value to return and kick the upturn into higher gear, particularly in the prime residential segment.
Re: Foreign interest is returning to Singapore property residential market
After three years of falling prices, 2018 is looking like the year that the Singapore property market's long-awaited turnaround finally gains traction. Analysts reckon that a trough has been reached though they are careful to tamp down excessive optimism.
While market watchers generally agree that prices will move up, their forecasts for the increases vary from as low as 3 per cent to a giddy 15 per cent. Most also agree that resales will drive transaction numbers higher this year than last year.
Sales of new homes, however, are expected to stay at 2017 levels as developers pace out their launches in anticipation of prices going up.