Read more Developers moved 1,178 new private homes, barring official apartment suites (ECs) in July

With economists predicting a recession in 2020, you would be amazed to understand that Singapore’s house landscape is heating up.

Personal, non-landed home prices rose 1.5 percent in Q2 2019, when compared with a 0.7 percent decrease in Q1. Ahead of that, the prices had declined for two successive quarters.

This really is a spike in only 821 units in June, a 43.5 percent growth, and also the maximum number of trades so far this season. Adding ECs, sales volumes grew up 89.3 percent, with a top contributor being the launching of Piermont Grand at Punggol.

(That is about a third lower than the quantity in July last year; but that is also because July 2018 watched a surge of panicked buying the evening before fresh cooling steps happened ).

We realize the programmer (SingHaiYi) was convinced enough to invest around $5 million on the showroom.

The pricing can be convinced; in 2017, consensus was a source overhang — by the en-bloc congestion — could push prices. However, the pricing in Parc Clematis — and the EC Piermont Grand (relatively expensive for your Punggol region ) suggests there is stronger demand than anticipated.

Condos which are in these older estates invariably attract more need.

Australian buyers moved back to the Marketplace

7.1 percent of non-landed private possessions were offered to foreigners in July, based on URA. This is about 82 units, which can be roughly twice the one-piece average (39 units).

Foreigners are also purchasing more costly houses. Based on OrangeTee, 27 percent of non-landed new homes purchased by thieves — between January to June — were valued at over $3 million. This is the maximum percentage near the previous summit, in 2007 (30.5 percent ).

How come this is occurring despite the trade war and global economic downturn?

It can be happening just because of it. Take a few points of contrast:

To begin with, the summit of foreigners purchasing Singapore property happened in 2007, only 1 year prior to the Global Financial Crisis. Afterward, land prices frees up around 60 percent, between 2008 into the previous summit in 2013. Demand really picked up, as investors shifted out of traditional bonds and stocks and to property.

Secondly, during the past property rush, very low interest rates made land assets appealing. Bank loan rates dropped from the historic average of approximately 3.7 percent, to well under two percent. This resulted from interest rate reductions by the US Federal Reserve.

And , bank home loans are cheaper than HDB loans for a couple of years.

Third, think about the information out of China, which will be a bellwether for the worldwide market. In 2008, China’s GDP growth slowed to only nine percent — in the point, its slowest pace of expansion in seven decades. As of July this year nonetheless, China’s GDP growth is down to 6.2 percent, it is slowest in 27 decades.

The worries of a worldwide economic downturn will send investors to some flight for security. This frequently means altering their focus from volatile assets — for example stocks — to secure harbor assets such as gold (that are climbing on downturn fears by the way), the yen– and — you guessed it — property in politically stable ponds such as Singapore.

Option property markets will also be looking less appealing

The UK is fighting with the increasing likelihood of a no-deal Brexit, which will be very likely to impair its own economic development. In terms of Hong Kong, you might be living under a stone and hear about its own political upheaval the last couple of months; also it bears notice that Hong Kong is Singapore’s closest rival as a financial hub, and property hot spot.

In conclusion, both favorite alternative markets for land — both the UK and Hong Kong — are appearing rather pallid at this time, in comparison to secure ole’ Singapore’s property.

Singapore land, being mostly Regarded as a safe haven asset, is Very Likely to determine demand as the economic situation .
Do not get us wrong, we are not saying that the economic recession is somehow great for all of us. On a wider scale, the harm done to our export driven market is very likely to reevaluate limited gains in some specific sectors.

However there’s some precedent for this being sort to the property industry, thus we could have something to anticipate. Up until fresh cooling measures kick again, likely.