With the real estate sector ending on a high note last year, will 2013 be the year things begin to stagnate?
2012 seems to be the watershed year for Singapore’s property market, with residential properties doing extremely well and commercial and industrial properties not far behind. Despite cooling measures rolled out twice in the year, sales and growth remained strong.
Industry analysts are however expecting prices to reach a plateau this year. They are expecting property developers to be less active in the bidding for Government Land Sales (GLS) sites, whose number has also dropped as compared to 2011. There are still sites which may draw strong interest, such as Alexandra View, Prince Charles Crescent and Mount Sophia.
And as new properties which entered the market last year compete for buyers, affordability may remain strong. Vacancy rates for rental properties may stay low, and the possibility of new property cooling measures being implemented this year may also contribute to a less vibrant market.
The prime districts are expected to do less well, as supply overshadows the weak rental demand due to companies cutting back on housing allowances and lowered employment rates. Mass market private homes are however given the thumbs up, resilient sales buoyed by affordable prices and favoured by investors and upgraders.