Property cooling measures implemented by the government has taken a toll on the property market in recent years. However, after years of going down, Bloomberg reports that property market in Singapore is showing improvements.
“Actually, luxury home sales have gone up even long before the government eased the cooling measures in March,” said Cheng Hsing Yao, managing director of Guocoland group. According to Cheng, when the government eased the cooling measures in March, it increased buyers confidence in buying property.
“Buyers perception was not changed just by the tweaking of property cooling measures,” he said, “of course the tweaking improved sales, however, our projects were already picking up by the end of 2016.”
will be launching its Martin Modern project soon. The 450-unit project is located on the site that Guocoland acquired in 2016, for the whopping amount of S$595 million. Since July 22, 2009, Martin Modern is the highest paid auction for the government leasehold project that will be mainly used for residential property. Cheng believes that most of the units in Martin Modern will be purchased by the local Singaporeans and permanent residents in Singapore.
According to Cheng, there is a demand for this project, and one the sidelines numerous people are waiting. “Since prices have bottomed out, we can already see a slight improvement in the market,” he said, “between the high-end homes and mass market, the price gap is narrowing; therefore, the luxury properties have become attractive.”
The luxury homes are the houses located in the prime districts that cost S$1,500 per sq ft and above for the minimum floor area of 2,000 sq ft. That is according to Cushman & Wakefield. The property broker also stated that the value of luxury homes went down by 15-20 percent after peaking in 2013.
Since most of the cooling measures were implemented in March, home prices in Singapore reached a record fall in Q2 2017, consecutively for the 15th quarter. The report from Urban Redevelopment Authority depicted that properties in the prime location areas went down by 0.9 percent.
When the stamp duty imposed on sellers was deducted in March, it sent optimism in the market. People began to believe that the property market is going to rebound, the developers began bidding at land auctions aggressively, and home sales also went high. According to the central bank, these adjustments do not signal winding down of the control.
Interestingly, in many countries, local versions of property cooling measures have been introduced. “In comparison to Hong Kong and other Chinese cities, Singapore is an attractive market when it comes to pricing,” said Cheng.
A brilliant choice of a residential property is to own is at Gramercy Park. A rare freehold condominium over at Grange road which recently pick up pace in transaction. Despite its high quantum with the cheapest unit now going for $3.5xm for a 2+1 unit, 3 bedrooms about $5million and 4 bedrooms going for $7+million, there’s still quite a couple of units sold almost every week which further prove pick up pace in high end property.
Gramercy Park is also just a walking distance from shopping malls, entertainment places, schools and MRT stations.
Another rare development coming up in District 9 is Martin Modern over at Martin Road which set to launch 3rd quarter of 2017. This is a government land sales which is pretty rare over at District 9 given the limited landed currently available.