Record bids for land sites in Singapore are expected to drive future prices of private homes.
Private home prices in Singapore are anticipated to rise further in the future on the back of record sums offered by developers for government land and en bloc sites, according to Knight Frank Singapore’s research head Alice Tan.
The previous decline in prices between late-2013 and Q2 2017 have also created pent-up demand that is currently pushing up property values. In addition, luxury houses here are now attracting investors due their affordability compared to those in other major markets across the globe.
“Buyers are seeing greater value in Singapore relative to other prime markets,” Tan told the Financial Times.
In fact, Savills noted that prime homes in the city-state cost US$1,763 psf on average. In comparison, that in central London and Hong Kong sell for US$2,520 psf and US$3,200 respectively.
Previously, prices of private residential properties in Singapore surged 62 percent from Q2 2009 and reached its peak in late-2013. Thereafter, prices declined for 15 straight quarters at an aggregate rate of 11.6 percent after the government introduced a series of cooling measures to control the hot market. Prices then started to pick up in Q3 2017, with values edging up by 1.1 percent for the whole of last year.