Year-on-year, this really is a decrease in sales volumes. Developers offered 1,724 units in exactly the exact same time last year (a 31.7 percent decrease from 2018). Including ECs, they offered 1,776 units annually (a 12.4 percent decrease in the a year ago ).
Our read of this marketplace:
The rise in volume of sales does not surprise us. We pointed out that a remarkably high number of apartments are hitting their Minimum Occupancy span (MOP) this past year. This usually means a large number of upgraders for 2019, that will help drive to condominium sales.
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Nearly all buyers this season are owner-occupiers. But, we are not certain how long that can last to be the situation.
Investors may Opt to flee Singapore property, at the face of increasing doubt
Yesterday evening, the 10-year Treasury note temporarily broke under the two-year pace. This is an indicator of a coming downturn, which set a rout on Wall Street. Investors that see Singapore land as a safe haven asset can turn their eyes again, ABSD or even.
This is compounded with the possibility of further rate of interest reductions by the US Federal Reserve. Both are inclined to proceed in tandem, therefore a lower rate of interest in the united states also translates into more economical bank loans from Singapore.
We did see land prices skyrocket shortly after the Global Financial Crisis in 2008, as investors dropped conventional stocks and stocks, and turned toward property using its economical loans. A repeat performance is not impossible, particularly since Singapore remains relatively cheap against regional markets such as Hong Kong.
Increase the fact buyers will likely be cautious about purchasing in Hong Kong, at least this season, as a result of political protests.
Another favorite contender in drawing property investment, the united kingdom, has the benefit of a poorer British pound. However, Brexit woes are long-term and deep, and attentive investors might not wish to bear the effects of a no-deal Brexit.
Therefore, we would argue there is a strong probability that Singapore property — as among those safest-at-present strength classes — will start to draw investors.
Irrespective of who is buying however, we do anticipate continued pickup in quantity of revenue for the next half of 2019, at a rate that broadly comparable to previous year.