Sustained Winter In Singapore

Forbes published an article in July last year listing the top 10 countries that China investors favours when investing overseas and three ASEAN countries managed to make the list. Malaysia made the list for the first time coming at 10, Thailand advanced two level to 6 while Singapore fell two position to 7.

The ranking is an indication of investor preferences and how they react to changing factors. Singapore’s fall in ranking can be attributed largely to the series of cooling measures put in place by the Singapore government.

The cooling measures have seen huge success and a report published last year by the Global Property Guide listed Singapore at number 10 amongst key Asia-Pacific countries in terms of properly price appreciation, a far cry from its leadership position in the past. Transaction volume also fell to a new 4-year low in 2013, decreasing by some 33% to 15,301 units.

The downward slide did not slowdown during 2014 and the lacklustre performance in Singapore continues to damper investors’ interest.

As of Q3 2014, the prices of private homes in Singapore saw a 3% slide and experts believe that the decline will continue this year, falling some 10% to 15%. Premium properties in prime areas such as Orchard Road might fall between 10% and 20% while luxury properties in Sentosa Cove can fall as much as 40%.

The government’s cooling measures are not the only contributing factors, the tightening of immigration and foreign worker policies have also contributed to a fall in demand for housing.

Despite the weakening market, the government has not pulled back supply and will be adding a further 180,000 houses in the next four years. The large supply lined up and cooling measures have led to fears of oversupply and a depressed rental market.

The government has currently given no hints of lifting its cooling measures and thus the market is expected to continue on its current trajectory,

On the other hand, demand for commercial properties remains robust and rental in the CDB area has climbed as much as 15%, making it the biggest gainer in Asia-Pacific.

For those interested in Iskandar Johor Bahru Property , please visit our website.