The Singapore real estate market shows no signs of cooling off
Hefty price tags have not dented the market, with buyers flocking to pre-construction sales offering blank cheques to reserve condominium units which they expect to rise sharply in value after the projects are finished.
All 202 units at a private condominium in the central business district – costing 1.2 million-2.0 million Singapore dollars (US$870,000-US$1.4 million ) – were snapped up in just one day at a preview in March, agents said.
About 25 percent of the 56 multi-million-dollar units offered at an invitation-only event at an exclusive waterfront development, The Residences at W Singapore Sentosa Cove, were bought in just one weekend preview.
Waterfront homes boasting unobstructed sea views, marketed as the ultimate experience in lifestyle living, have been prime among the recent launches.
“The market is driven by confidence fuelled by the recovering economy and employment market, and supported by low interest rates,” Tay Huey Ying, director for research and advisory at property consultancy Colliers International, told reporters.
“Market optimism is also riding high on the anticipated potential for Singapore to rise in prominence in the investment radar of foreigners, particularly the high net-worth individuals and high-rollers, as a result of the opening of the two integrated (casino) resorts in 2010.”
Singapore in February opened its first casino resort complex, which includes Southeast Asia’s first Universal Studios theme park. A second casino built by Las Vegas Sands will open next month.
The city-state, a regional financial center, is also promoting itself as a hub where the world’s growing ranks of multi-millionaires can park their money safely.
Warning of a possible bubble that could derail the economic rebound, the government in February imposed new regulations to stem property prices, and warned it was prepared to take further measures if necessary.
But the move, designed to discourage investors who buy and sell for a quick profit, appears to have had limited impact.
Private home prices rose 5.1 percent in the first quarter from the previous three months, government figures showed.
Although this was slower than the 7.4 percent rise in the previous quarter, property analysts said prices are expected to continue going up for the rest of the year. – read more at Taiwan News…