Based on the data in the first quarter, it was reported that the number of luxury condominium units snagged up increased by a whopping 158 per cent, the highest in almost a decade. This translates to 111 units that were taken up in the first quarter alone.
Among the luxury condominium units transacted, foreigners took up 159 non-landed luxury properties in Singapore’s Core Central Region (CCR), which that alone is an increase in 71 units based on a year-on-year comparison.
Economic stability, strong infrastructure and good education system all had a part to play as to why investors choose Singapore to be their choice of investment. In addition, geopolitical tensions across the globe has also caused a greater number of foreigners to buy Singapore properties since it is considered a “safe-haven asset”.
With the slew of property measures released last month, there was an anticipation that for the time being, the demand might not see an increase as investors recalibrate and rethink their investment plans.
However, property prices are also rapidly increasing in foreign markets. Upon comparison, foreigners may not see the recent increase in ABSD rates as drastic enough for them to want to pull out. With the recent launch of Blossoms by the Park condominium 2 days after the newly announced property measures, four units were sold to US buyers and another four units were transacted and sold to Chinese buyers. Genuine home buying and upgrading sentiments will still be there, so it is unlikely that the prices will drop anytime soon.
As many has also observed, while easing investment demand could reduce the upward trend on prices, developers could also reduce that by regulating the supply in the pipeline. We might see a possibility of developers and sellers withholding their properties for the time being to observe the market movements. By doing so, this reduces the number of available units in the market, keeping the prices high.
In fact, we just saw City Developments postpone the launch of Newport Residences in an effort to “monitor market conditions closely” before releasing it in the market. Newport Residences is a freehold luxury condominium in District 2, right within the Central Business District. Residing in the former Fuji Xerox Tower at 80 Anson Road, Newport Residences will have 246 units up for grabs.
For the foreseeable future, Singapore will continue to remain competitive in terms of its property market and relevant investments. If you are looking to have a detailed analysis what properties you should look into, do not hesitate to reach out to know more.