Staying the course
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THIS year has certainly been one for the history books.
Despite intensifying headwinds and rising interest rates, fresh launches in the Outside Central Region (OCR) achieved record levels this year, crossing the S$2,000 per square foot (psf) mark, thanks to tight supply and a limited pipeline of launches. The public housing market notched some new highs as well, with an increasing number of Housing Board (HDB) resale flats transacting for above S$1 million.
But the latest round of property curbs, which came just nine months after the last slew of measures, will likely temper some of that fervour in the private and public housing markets, prompting buyers to make more prudent decisions when it comes to home purchases. Against the backdrop of a potential global recession and higher mortgage rates, this may not altogether be a bad thing. After all, a more sustainable property market is healthier in the long run.
In this edition of The Business Times’ Property Supplement, we explore the changing profile of Good Class Bungalow (GCB) buyers. While once typically scooped up by doctors and lawyers, the rise of the digital economy has resulted in an expansion of that buyer pool to include tech magnates as well as newly-minted – and affluent – Singaporeans. Keen interest from these buyers has contributed to an unyielding rise in GCB land prices, causing sales volumes to ease this year, although they are still at healthy levels.
And after two long years, Singapore is seeking to put the pandemic firmly in the rear view. The reopening of borders and pent-up demand has led to a steady stream of tourists heading to the Republic’s shores. For investors on the hunt, do Singapore hotel assets still offer good value for money, or has the recovery already been priced in?
Hospitality aside, the strata retail market is also showing signs of a possible rebound, as investors bet that the retail sector’s worst days are behind it.
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Meanwhile, rentals of private homes have spiked in 2021 and 2022, as demand outstrips supply, making it a landlord’s market. Can tenants finally expect some relief in 2023?
The pandemic has also changed the way we live and work. How can landlords attract – and more importantly – retain tenants at a point where hybrid working is all the rage?
Finally, read about the prospects of fractional real-estate investing. Is it worth a second look? What are the potential pitfalls, and what should investors know before diving in?
Singapore’s property market may feel the impact of external shocks from time to time, but ultimately, the fundamentals remain sound, which bodes well for its long-term prospects. As the adage goes, time in the market beats timing the market.
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