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Will Singapore house prices continue to rise?
Oct 17, 2022
Singapore
By   Internet
  • City News
  • Term Housing
  • Singapore House Prices
  • Supply and Demand Balance
Abstract: The delivery of term homes, coupled with the rapid increase in interest rates, has greatly eased the demand for existing homes and the overheated rental market, and the housing market is likely to return to a balanced supply and demand situation.

According to the second quarter data released by the Urban Redevelopment Authority, Singapore's overall private house price index stood at 180.4 points, up 0.7% from the previous quarter and already marking the 25th month of sustained house price growth in Singapore!

 

However, based on recent market conditions, this wave of rapid house price growth that started in mid-2020 may be coming to an end, if not already over.

 

There will be a lot of phase home deliveries towards the end of this year and next year, and together with the rapid increase in interest rates, which has greatly eased the demand for existing homes and the overheated rental market, the housing market is likely to return to a balanced supply and demand situation.

 

The prices of brand new existing homes and term homes are now inverted, with brand new existing homes being cheaper than term homes.

 

The crazy and irrational prices of term houses, especially in the suburbs, have greatly increased the probability of the term house market entering a price adjustment.

 

The cost performance of suburban houses is getting worse and worse, and the investment value is getting lower and lower.

 

Different developers actually have different predictions for the future housing market, but for now, more developers are cautious about the future housing market.

 

Two years ago was the golden era for developers, and the era of casually bidding for land to make big money is coming to an end.

 

At this stage, the main support for housing prices comes from unusually high rents and a shortage of supply.

 

As more major real estate projects are delivered later this year and next year, a large number of existing homes will gradually bring the rental market back to normal and the market situation where housing supply exceeds demand is likely to reverse.

 

Coupled with the uncertain economic trend and soaring interest rates, the Singapore housing market is likely to balance supply and demand and stabilize in the next 1-2 years.

 

So the inflection point for Singapore's housing market is coming or has already arrived.

 

Although housing prices are no longer rising rapidly, it is difficult for them to fall significantly.

 

It is okay to enter the market cautiously as long as you do not follow the trend blindly and buy affordable flats.

 

Although prices in the suburbs have been soaring, prices in the city are still relatively low.

 

Bold investors can consider getting a condo in the city, or a villa island-wide.

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