Singapore’s housing market could be bracing itself for a year of tougher times. It has after all enjoyed a rather long period of highs. Though the initial signs are slight, a 0.7 per cent drop in December, it could be a warning for the year or next couple of years ahead.
As new properties now come with lower price tags, apartments in the resale market may find themselves having to lower their prices as well in order to attract buyers. The biggest decline came in the suburban segment, which may be a bit of a downer for the market since this is the sector which has been faring the best for many consecutive quarters. But the huge number of launches all over the island could have diluted the buying crowd. Investors who would previously have snapped up these properties in a jiffy may also have been hindered by the loan restrictions implemented last June.
Homes in the central districts could however take the hardest beating this year as many are left unsold. As most of the properties head towards completion in the next few years, the housing supply glut may become more apparent. Put into the mix resale properties and the bowl seems rather big, unless of course the population grows, which might cause other issues for the small nation and its limited resources and space.