SINGAPORE: Singapore’s property market had faced a challenging year in 2016 due to a number of government cooling measures such as the Additional Buyers’ Stamp Duty (ABSD), Sellers’ Stamp Duty (SSD) and Total Debt Service Ratio (TDSR).
According to statement, these measures had resulted in a further decline of 0.5% in the private property index (PPI) from 137.9 points in the third quarter to 137.2 points in the fourth quarter. This is less than the 3.7% decline recorded in 2015. Transactions also increased by 9.4% with 8,136 units sold in 2016 compared to the 7,440 unit recorded in 2015.
The prices for non-landed private properties located in prime areas (CCR) was the only one showing an uptrend. They increased by 0.1% in the fourth quarter signalling a renewed interest in high-end properties. Meanwhile, those in the Rest of Central Region (RCR) and Outside Central Region (OCR) decreased by 2.0% and 0.6% respectively.
Additionally, URA’s data also showed that developers launched 2,944 uncompleted units (excluding executive condominiums) in the fourth quarter of 2016 more than the 1,609 units in the previous quarter. There were also more units sold in the fourth quarter at 2,316 units compared to the 1,981 units sold in the previous quarter.
For the whole of 2016, developers launched 7,877 units. This was around 800 units more than the 7,056 units launched in 2015. Developers also sold 7,972 units in 2016. This was much higher than the 7,440 units sold in 2015.
“Collectively, these data showed that the private property market is making a signifiant recovery,” said TG Development managing director Ong Boon Chuan.
Freehold properties did well versus leasehold
Additionally, caveats captured on URA’s Realis system showed that of the 699 resale units sold for the entire 2016, 694 of the units sold were freehold properties. This represents some 99.3% of the market share.
“URA’s finding is not surprising as freehold developments are extremely scarce and very much sought after in Singapore. Astute investors will be pleased to know that our development The Peak @ Cairnhill II is a freehold property sitting on a prime piece of land on Orchard Road,” said Ong.
More foreigners buying private properties
2016 also saw a significant rise of foreign investors as a number of them saw it as a good time to pick up prime properties.
Figures from Jones Lang Lasalle (JLL) during the first nine months of 2016 showed there was an 11.7% increase in foreign investors (not including permanent residents) compared to the same period last year. In all, they accounted for some 782 transactions as of November 2016.
Additionally, data from the URA showed that Chinese investors made up the major buyers followed by Indonesians, Malaysians and Americans.
JLL’s data also showed that Malaysians and Indonesians preferred buying properties in prime areas with 40 percent and 68% of their property purchases respectively located in the prime districts.
“The Peak @ Cairnhill II has been designed with such discerning foreign buyers in mind. This presents the perfect opportunity for them to invest in prime properties. For example, it features spacious master bedrooms, a private lift for every unit. Meanwhile, the overall architecture and interior design have been well thought of with well-lit and well ventilated living spaces,” said Ong.
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