Hello everyone, my update is back after a long year end holiday.
For a start, let’s take a quick look at what has been happening in the property market recently.
With the improved buyer sentiment over the recent months, unsold home inventory in Singapore fell to a seven-year low at 16,031 units during the third quarter of 2017. Total transaction volume, on the other hand, rose 54 percent year-on-year in the first ten months of 2017. The rental market, however, remains weak.
En-block fever has returned and will continue in year 2018. As at Dec 20, a total of 33 en bloc deals had been concluded, with a total sales value of $8.63 billion. Another 60 to 70 projects are believed to be at various stages of attempting a collective sale. Assuming that 40 are successful, with each owner receiving an average payout of $2 million, that would translate into another $16 billion in en bloc deals. This would bring total en bloc transactions to about $23 billion, which will surpass the $22 billion in the last en bloc boom of 2005 to 2007.
With $23 billion in wealth being redistributed, a lot of millionaires are being created across Singapore. These hot monies, in return, will be injected back into property market, which will further push up property price in the near term. It’s widely estimated price should go up by another 5-8% this year.
If you have been actively looking for properties in the last 6 months, you will notice clear signs of diminishing listings in the market (owners are withdrawing and hoping to sell at higher price later), shortening of days-on-market (units being sold faster) and 10-15% increase of asking price in general.
What can you buy in 2018?
1. Upcoming New launches
There are a couple of new projects coming up in the next few months:
New Futura/ The Enclave@ Holland / 8 Hullet (Emerald Hill) /120 Grange Road/Twin View (west coast Vale)/The Tapestry (Tampines Ave 10)/ Rivercove Residences (Sengkang EC)
2. Resale will become more popular this year
Amid the upturn in the primary residential market, prices of resale has become more appealing to potential buyers. Especially for those owner-occupiers, they will find older properties look more attractive as they tend to be larger in size.
Some examples of value-for-money properties in Central Singapore that transacted at an average psf of below $1,000 include, but not limited to, Atrium Residences, Papillon and Pandan Valley, etc..
3. For people who have tight budget
What can you get for a million dollars these days?
Suburbs – 3 bedder (>10 years old condo)
City Fringe – 2 bedder (>10 years old condo)
Central – 1 bedder
You need to pay 10-20% premium for brand new condos in the same area.