Good Prospects for Singapore Property Despite Global Economic Slowdown
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[br] Singapore, 17 July 2008. The Singapore property market was the fastest growing the world last year, narrowly pipping Hong Kong to the crown with a blistering rise in property prices of over 29%.
Price rises and transaction volumes have stalled this year, however, leading some players to speculate whether the market is in store for a correction. The Urban Redevelopment Authority of Singapore (URA) has estimated that private home prices rose 0.4% in Q2 2008, down from 3.7% in Q1.
Transactions dropped to their lowest level in almost a year in May, when 476 units were launched and 453 sold. The number rallied strongly in June however, with 1,069 units launched and 801 sold. Activity traditionally increases in June before the start of the seventh lunar month, or the ‘Hungry Ghost’ month, a time when superstitious buyers stay out of the market.
“Whether there is a correction in short term house prices is less of an issue” said EconomyWatch.com Chief Analyst Hosni Afleck. “The fundamentals of the Singapore economy and housing market remain strong, despite obvious investor concerns around the global economic slowdown.” [br]
“The Integrated Resorts (IRs) that Singapore will launch in 2009 and 2011 are expected to employ 75,000 people. With limits on the supply of both local workers and new housing stock, there will be an influx of further migrant workers and ‘foreign talent’. This will lead to a continuation of property price growth over the medium term.”
Chen Xiulian, EconomyWatch.com
