The reported tapering in the US monetary stimulus is unlikely to significantly impact property prices in Singapore, analysts have said.
“It usually comes down because of distressed selling. But economic growth is stronger than expected. People are keeping their jobs…Even if it comes down, there won’t be a crash,” noted Tata Goeyardi, Property Analyst at Religare Capital Markets.
The US Federal Reserve’s monetary stimulus has created cheap liquidity and helped boost Asian real estate, but as it comes to an end, many markets in Asia will likely feel the pains as well, media reports said.
In Singapore, the effects of such a move in the market is now underway and could last three to six months, said Tim Gibson, Head of Asian Property Equities at Henderson Global.
“Anything that is yield-like has been sold off” as a knee-jerk reaction to the unwinding of the asset purchase programme, but “we are in a cyclical macro recovery…It should be positive for real estate in terms of top line rental growth”, he added.
Meanwhile, David Neubronner, National Director for Residential Property at Jones Lang LaSalle Property in Singapore, said: “There’s still strong demand for homes, especially in the suburbs and there’s still liquidity in the market.”
But several concerns may arise going forward. “In the short term, it (housing market) should hold up, but medium to long term, there will be pressure because of the new supply coming up,” said Neubronner.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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