Table of Contents
Singapore: It was every buyers hope that property prices will decline and also every sellers hope that price will hold or even bottomed out and head up. There a price drop again in 3rd Quarter of 2016 that may be apparent that property prices have not bottomed out yet.
This might test investor holding power again, though it is also good news for home buyers who are looking for good buys on the market.
Signals that prompt Property Prices dropping in 2017
Low Interest End might be coming to an end
American Federal Reserve might soon be raising Interest rate that has been keeping at a low level for a while as Fed reduce the interest rate to simulate economic recovery. This will affect SOR and SIBOR rates, in turn affect property loans.
With the improving US economy and US market hitting record high, Federal Reserve is likley to increase the interest rate soon.
Continued Weak Rental Market
Investors often wants a postive cash flow from their property with self-financing and also possibly of some allowance out from their monthly rental. However, with the dropped in rental market, investors are seen having to cough out to top up their mortgage loans. Tenants are moving around looking for good deals rental on the market too with some owners who are still looking for decent rental can see their property empty for few months.
With the current weak financial sector and slump in oil prices, many expatriates are also not coming to Singapore that will probably test the rental market going forward in 2017.
Cooling Measures
Cooling Measures such as the Additional Buyer Stamp Duty (ABSD) which the buyers has to pay additional 15% of the property purchase price as tax are still sitting on the fence althought there are some foreigners who are taking opportunity of the attractive good buy on the market and paying the taxes.
Property Investors looking to invest in Asia might explore other places like Malaysia, Thailand or even Vietnam as Singapore lose the appeal to these Investors from the hefty taxes.
Cooling measures are also unlikely to be lifted anytime soon as mentioned previously by the Government. Thus with most Investors out from the market, the existing transactions are targeted more to owners who are looking for own stay as the price has much inflated.
Weak Economic Outlook
MTI or Ministry for Trade and Industry had dropped the growth forecast down from 1 to 1.5% with all main sectors of the economy decline. The Oil slump has caused much job retrenchment together with the financial industry. Investors are thus likely to be more cautious in their property purchase.
What’s in for you?
What’s in for you with these prices decline? Well, as a buyer looking for own stay, there are probably no better time than now to search for your dream home for own stay due to the prices declining with owners and developers more willing to reduce their prices to a fair market value. First time buyer who are not affected by all the cooling measure should also make use of this opportunity to grab their deal from the attractive bargains.
For Sellers, its definitely not a good time to sell, unless you have to. Buyers are spoilt for choices on the market with many units and development on the market to choose from, and unlikely to bite unless there’s a good deal on the market.
For Investors, it will be good to keep a lookout for good bargain on the market especially for prices in Orchard has dropped significantly.
For more of these articles and good buys on the market, do visit https://www.propertyreview.sg for more information.
