OrangeTee believes that Singapore will unlikely see a housing bubble even as property prices have increased amidst higher land cost and robust demand, reported Singapore Business Review.
This comes as the overall transaction volume for the first two months of 2018 is still significantly lower compared to the previously recorded peak.
“Whilst the overall prices have escalated in recent months, the number of transactions remained low as compared to the high volume seen in 2007 and 2010-2013. 2,357 caveats were lodged in the first two months of 2018, lower than the last 10-year average of 2,542,” noted OCBC.
Moreover, the government’s various pre-emptive measures such as the Total Debt Servicing Ratio and Seller’s Stamp Duty remains in place to cool the market.
Luxury home prices rose 22 percent year-on-year in the first two months of 2018, with the sale of Le Nouvel Ardmore for $4,098 psf bringing the average price for a luxury home to 2,049 psf.
Property prices for mid-tier homes also increased albeit at a more moderate pace of 4.7 percent year-on-year to $1,488 psf, with new sales, subsales and resales reaching record highs at $1,703 psf, $1,715 psf and $1,287 psf, respectively.
However, mass-market home prices slid by 2.4 percent year-on-year to S$1,117 psf.
This article was edited by Keshia Faculin.