Property 2018 (March issue)



Entering a brave new world

After four years of decline, the residential property market has switched direction and is now back on an ascent - even with almost the entire slew of cooling measures still in place.

Plans are afoot to transform the Jurong Lake District (JLD) into a second CBD in Singapore, but the window to ride this transformational wave through strata commercial spaces may be fast closing.

YEAR 2017 was a watershed for the private residential market, with prices starting to recover in H2 2017.

THE housing market recovery is, by now, firmly entrenched. After almost four years of tepid growth brought on by a series of cooling measures and a sluggish economy, housing unit sales and land prices have rebounded strongly since mid-2017 .

IN the current market upturn, prices and sales of private residential properties have risen across all market segments in Singapore.

THE landed home segment has staged a positive recovery after being in the doldrums for the past four years.

BASED on increasing private property prices and the tender bid for the Sumang Walk executive condominium (EC) site of S$583 per sq ft per plot ratio (psf), we predict that EC prices will cross S$1,000 psf in the year 2019.

IN 2017, the market was astonished by the upswing in residential en bloc and private land sales when deals worth S$9.1 billion were sealed, second only to the record S$12.3 billion fetched in 2007.

HOUSING and Development Board (HDB) flats form the bedrock of housing for Singaporeans, with an estimated 82 per cent of residents living in more than a million HDB flats island-wide.

LOOKING at the relentless wave of innovation in the past decade, it is not surprising that this trend will sweep over real estate, an age-old industry ripe for disruption.

THE private residential market enjoyed the limelight in 2017 with sales increasing and prices bottoming out. The revival of the en bloc market also fuelled the optimism as developers shored up land banks in anticipation of price increases amid a shrinking unsold inventory.

THE office market ended 2017 on a high note: Island-wide office net absorption as tracked by CBRE Research was 783,621 sq ft in Q4 2017, contributing significantly to a full-year net absorption figure of 2.1 million sq ft.

THE modern work places have come a long way, shifting from sterile fluorescent tube-lit and cubicle-filled offices to swanky spaces resembling a chic apartment or hotel lobby.

SINGAPORE'S retail scene has been under the spotlight as structural shifts in consumer demand, competition and mode of retailing evolve faster than before.

THE Singapore industrial real estate market has been in the doldrums in recent years. However, there are signs that the industrial property market is finally reaching the bottom of the price and rental cycle.

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