Rising sales and prices indicate an end to the four-year slump for Singapore’s housing market.
CapitaLand CEO Lim Ming Yan expects home prices in Singapore to increase by as much as 10 percent this year – a view which is in line with other forecasts, reported Bloomberg.
Analysts at Credit Suisse Group AG expect home prices to rise by up to 10 percent this year, while OCBC Investment Research and Morgan Stanley expect an increase of up to eight percent.
SEE ALSO: Pearlbank Apartments sold to CapitaLand for $728m
“Transaction volume has gone up and usually that’s a precursor to some price increase,” Lim said in an interview. “A five to 10 percent increase is possible this year barring any unforeseen major volatility in the capital markets.”
Rising home sales and prices reinforces signs of an end to a four-year housing slump. The market rebound saw developers aggressively bid for land.
While CapitaLand has kept a safe distance from the bidding war, it acquired the iconic Pearlbank Apartments for $728 million, with plans to redevelop it into an 800-unit residential complex.
“We continue to look for opportunities in Singapore but we feel the kind of bidding, the price, is too aggressive for us,” noted Lim. “We bid in a very disciplined manner.”
The property developer’s net income dropped 38 percent to $267.7 million during the last quarter of 2017 after completing fewer homes to sell in China.
Despite this, CapitaLand shares rose two percent to $3.54 in Singapore, the biggest increase since 5 October, after the company increased its full-year dividend by 20 percent.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org