If Hong Kong or Singapore sneeze, the rest of Asia catches a cold. And so it is with property, Singapore and Hong Kong’s property market health is an important wind vane for the rest of Asia. Yes, there are many variables in each country but when the ‘big two’ are doing well it’s a safer bet to look with optimism at the rest of the region.
So when Singapore’s condo and apartment market show four months of consecutive upward growth in resales and prices its a very good thing. Property portal SRX Property reports that apartment and condominium prices have had a small but trending surge upward. This follows years of negative investor sentiment and confidence in the Lion City’s real estate market. The trend upward was only 0.5% between May and June but in central Singapore the values moved up to 0.9%.
In its year-on-year index, SRX reports that resale prices for June 2016 were up 1.1 percent compare to last year. But when it comes to resales, the numbers get really impressive with a rise of 27% year on year – 754 units compared to 592 units last year. But put into a more historical perspective the market reales in 2016 are still 60% down on the heyday of 2000. And, in a sign of reality kicking into the vendor’s prices, property prices are down 5.9% compared to the peak of January 2014.
But a trend is on, as small as it may be, and Singapore’s property slump appears to be over, a settling sign for the larger South East Asian investment portfolio.
Source: SRX Property