The Singapore property market ran up strongly in 2010, setting record prices and sales despite a couple of rounds of dampening measures by the Singapore government.
Singapore property prices in both the public and private sectors raced past the previous high of 1996 in the second quarter of 2010. In fact, according to official data, residential property prices rose 17.6 per cent for the whole of 2010. Total home sales also set a new all-time record of over 16,000 units sold for 2010.
So What's the Outlook Like for Singapore Property in 2011?
The outlook for 2011 looks set to be bumpy. On the one hand, the factors that propelled the growth of the property market in 2010 are still very much in force. On the other hand, the Singapore government has just introduced another round of cooling measures that will come into effect on 14 January, targeted at curbing property speculation and attempting to encourage financial prudence among those looking at second or subsequent properties.
The first set of factors includes a rise in purchases by foreigners, due to stringent curbs and tightening measures in the region, especially in China, that have channeled funds here. The fastest rising group of foreign buyers are mainland Chinese.
Secondly, the low interest rate environment that set the stage for cheap home loans, and helped fuel the surge in demand, looks likely to continue. In fact, with the negative returns on cash on the one hand, and fast rising inflation, real estate still seems one of the most attractive asset classes to hold. In addition, Singapore property held steady, both locally and regionally, during the recent global financial crisis.
The recent round of property cooling measures however, is likely to dampen demand to a certain extent. How great an impact these measures will have remains to be seen. While the Singapore property market managed to absorb the two previous rounds of measures with scarcely a breather, the latest changes might just pull the brakes more effectively.
SINGAPORE PROPERTY MARKET
So what is available if you are considering investing in Singapore property this year?
CBD (Central Business District)
In the central region, projects within the Tanjong Pagar and other rejuvenation precincts that are part of the Government's masterplan to transform these areas into vibrant places to work and play in, should do well. Recent developments launched in this area have received encouraging response, such as Robinson Suites that sold out within a month, and Spottiswoode Residences. Spottiswoode 18, across the road from Spottiswoode Residences, is scheduled to launch soon.
Prime Districts 9, 10 and 11
High-end projects in the prime districts continue to do well, particularly among foreign buyers such as Indonesians and Malaysians. One new luxury project that will release units for sale in January 2011 is CapitaLand's iconic D'Leedon Condo at Leedon Road, off Farrer Road. It sits next to the landed homes & Good Class Bungalows of King's Road and Cornwall Gardens, and is a short walk from the upcoming Farrer Road MRT station.
This is the only segment with prices still below the 2007 high. Property experts predict that this is the sector with the greatest potential for gain. They expect rises of 5% to 10% by end 2011, supported by the economic rebound in the region, and helped by property curbs in China and Hong Kong that are channeling funds and investments here.
Suburban & Mass Market Projects
On the mass market front, new projects due to launch in January include Waterfront Isle (the last in the string of condos at Bedok Reservoir developed by the Far East & Frasers Centrepoint JV), H2O Residences beside a river turned reservoir in District 19, and Canberra Residences, a lovely low-rise condominium project near the Sembawang MRT station, that will help fill a void of new residential developments in the north.
Singapore property prices in both the public and private sectors raced past the previous high of 1996 in the second quarter of 2010. In fact, according to official data, residential property prices rose 17.6 per cent for the whole of 2010. Total home sales also set a new all-time record of over 16,000 units sold for 2010.
So What's the Outlook Like for Singapore Property in 2011?
The outlook for 2011 looks set to be bumpy. On the one hand, the factors that propelled the growth of the property market in 2010 are still very much in force. On the other hand, the Singapore government has just introduced another round of cooling measures that will come into effect on 14 January, targeted at curbing property speculation and attempting to encourage financial prudence among those looking at second or subsequent properties.
The first set of factors includes a rise in purchases by foreigners, due to stringent curbs and tightening measures in the region, especially in China, that have channeled funds here. The fastest rising group of foreign buyers are mainland Chinese.
Secondly, the low interest rate environment that set the stage for cheap home loans, and helped fuel the surge in demand, looks likely to continue. In fact, with the negative returns on cash on the one hand, and fast rising inflation, real estate still seems one of the most attractive asset classes to hold. In addition, Singapore property held steady, both locally and regionally, during the recent global financial crisis.
The recent round of property cooling measures however, is likely to dampen demand to a certain extent. How great an impact these measures will have remains to be seen. While the Singapore property market managed to absorb the two previous rounds of measures with scarcely a breather, the latest changes might just pull the brakes more effectively.
SINGAPORE PROPERTY MARKET
So what is available if you are considering investing in Singapore property this year?
CBD (Central Business District)
In the central region, projects within the Tanjong Pagar and other rejuvenation precincts that are part of the Government's masterplan to transform these areas into vibrant places to work and play in, should do well. Recent developments launched in this area have received encouraging response, such as Robinson Suites that sold out within a month, and Spottiswoode Residences. Spottiswoode 18, across the road from Spottiswoode Residences, is scheduled to launch soon.
Prime Districts 9, 10 and 11
High-end projects in the prime districts continue to do well, particularly among foreign buyers such as Indonesians and Malaysians. One new luxury project that will release units for sale in January 2011 is CapitaLand's iconic D'Leedon Condo at Leedon Road, off Farrer Road. It sits next to the landed homes & Good Class Bungalows of King's Road and Cornwall Gardens, and is a short walk from the upcoming Farrer Road MRT station.
This is the only segment with prices still below the 2007 high. Property experts predict that this is the sector with the greatest potential for gain. They expect rises of 5% to 10% by end 2011, supported by the economic rebound in the region, and helped by property curbs in China and Hong Kong that are channeling funds and investments here.
Suburban & Mass Market Projects
On the mass market front, new projects due to launch in January include Waterfront Isle (the last in the string of condos at Bedok Reservoir developed by the Far East & Frasers Centrepoint JV), H2O Residences beside a river turned reservoir in District 19, and Canberra Residences, a lovely low-rise condominium project near the Sembawang MRT station, that will help fill a void of new residential developments in the north.
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