The introduction of the latest round of cooling measures in July this year has dampened market sentiment which may affect the property market in the coming months.
The prices of private properties increased by only 0.5 percent in the last quarter, a sharp fall from the 3.4 percent increase from the previous quarter.
File pic by Show En Kang
Resale transactions have also slowed, accounting for 46.3 per cent of all sale transactions in the third quarter, compared with 65.4 per cent in the previous quarter.
According to the Real Estate Sentiment Index (Resi), a joint effort between the Real Estate Developers’ Association and the National University of Singapore’s Department of Real Estate, the Resi index fell sharply from 6.6 to 4 following July’s property cooling measures.
The survey also showed that some of the factors most likely to affect the market in the months ahead include:
Rising inflation and interest rates
The decline in the global economic markets
Slowdown in local economic growth
Restrictions in financing
The next 6 to 12 months will be crucial to Singapore’s property market as we will get a clearer picture of the global and local economy.
A trade war between China and the United States, an increase in interest rate or an economic crisis in one of the major trading blocs may limit demand for Singapore properties causing prices to head south.
We advise buyers who are in no rush to make a purchase to hold on for now and observe the market closely. The prices of Singapore properties are likely to increase in the long run, but in the near future, the market may remain stagnant and prices may dip for certain properties and locations.