2017 has been a really exciting in the property market. We experienced many major changes and events in the property market.
Here's a quick recap of the major events in the Property Market for 2017: 1. 24 successful en bloc deals, totalling S$9.64 Billion 2. Aggressive land bids by developers 3. Recovery of Private Property market with 0.4% and 0.7% increase in prices for Q3 and Q4 2017 respectively. 4. Increased transaction volume for private properties 5. Changes to Seller's Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR)
But what does 2018 have in stored for us? Let us see what analysts have to say about the property market:
On average, most analysts are predicting a 8~10% price growth in 2018, although the more bullish forecasts can reach 15%.
And how about beyond 2018?
Source: Colliers Research
The direction of the market is clear and aligned with almost all of the analysts. And based on our research and analysis of the property market trends and signals, we are in agreement as well.....But why is that so?
There are clear signs of recovery in Singapore’s property market. It can be narrowed down to a few signals:
1. Two consecutive quarters of positive price increase, reversing a 15-quarter decline - Very strong market indicator of a recovery.
2. Aggressively high bids for En bloc and Government Land Sales (GLS) - Developers who bought land or en bloc at high prices, will need to sell even higher prices to maintain their profit margin.
3. Under-supply from 2018 and beyond - Our current and pipeline supply are below Singapore's 10-year average of 13,139 units.
4. Strong demand from both local and foreign buyers - Buyers are back into the market, and the numbers and data prove it. In 2017, there was an increase of 52% in transaction volume compared to 2016.
The signals above have given the greatest sign of a recovery in the market, and point towards a bullish run ahead. As an investor or homebuyer, now is the best time to enter the market. Come Apr/May 2018, the new launches from the aggressive land sales and en blocs will commence, and this will set a new higher benchmark pricing for property in Singapore.
However, DO NOT go in blindly, make sure you have done all your proper financial calculations, research and background analysis before making your purchase. As a quick guide, we have created a simple guidebook for you. Clickhere to download.
Are you still having doubts? or feeling on-the-fence about this? We have prepared a market report to address common concerns from homebuyers and investors; Eg. Will there be an oversupply, The rental market is weak, too much additional stamp duties...etc
Contact us today and find out for yourself, the Facts and Data about the current and future direction of the market.
"The key to the growth of the future - is knowledge"
Warmest Regards, Teoduoproperty
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