Cooling measures have met their match as the property market here heats up. Healthy sales from recent new property launches such as eCo in Bedok South and Sky Green off Upper Paya Lebar Road are indicating a rebound in property sales following a slight dip after announcements of the most recent property cooling curbs which were more to safeguard the banking system from excessive lending rather than deter investors or buyers from snapping up properties.
As long as investors still have sufficient funds to afford the cash upfront payments for properties, and have holding power to support their purchases, the buying may continue well into the next year or two. Instead of a complete stop, they could simply be turning their attention to smaller, more affordable units. Will shoebox apartments benefit from this change of direction?
Areas which showed the most positive sales were homes in the city-fringe and suburban areas. They held a average rise of 4.5 per cent and 4.2 per cent in October. Industry players cite rising construction and land costs as one of the reasons for this continued price hike. Corresponding rise in prices of resale HDB flats may have also provided a boost in the suburban homes market. The narrowing price gaps between city-centre and suburban homes might be the next trend to watch, as that could very well be the sign of the next property bubble. Whether it will burst and when is a path to be lightly treaded.