Singapore Homesale market Heated up with a jump
A rebound in sales of Singapore homes in March has sparked fears that authorities may further cool the market.
Data from the Urban Redevelopment Authority revealed on Thursday that the number of private apartments purchased last month doubled from 645 to 1,296 units.
A jump in the number of residential property index sales in the first quarter of 2012 adds to signs the Singaporean economy is regaining its strength from the pandemic-induced recession. Affordability is a concern among authorities. The real estate market should not fail to keep pace with economic fundamentals.
However, Sun also said that strong sales last month were due largely to the luxury segment since luxury buyers usually have higher disposable incomes.
Over the past three weeks, residential rates have risen each and every week, fueled by expectations for an accelerating rate of inflation as Singapore’s economy has roared back. However, the rapid jump in borrowing costs in recent months has already begun pulling back buying power.
Basics: What are the factors that affect house prices?
There is an inverse relationship between supply and demand in the housing market.
The demand must be less than supply to keep prices down. If supply is greater than demand, prices must rise.
Demand and supply need to be forecast correctly to estimate price trends.
Please note that this discussion applies only to residential properties in Singapore. Government-controlled public housing is slightly different than what is discussed here, but the trends are mostly the same.
The increase in home prices in Singapore last quarter was 2.9% — the largest growth since the second quarter of 2018, just before cooling measures were last in place. Some of the most expensive flats are rented out by public housing tenants, while some are sold for record prices. A new record high has been reached in the sale of privately used homes.
Some luxury houses like Parc Clematis Condo also have broken records and were built at record prices, as well as public housing apartments, so you must know Parc Clematis Price.
There has been a surge in private home sales over the past decade.
Although borrowing costs have started to rise, a wholesale exodus does not seem to be occurring from the market. Freddie Mac said that purchasing activity cooled over the last few weeks, but it is still at levels seen prior to the pandemic a year ago.
The property sale price index has generally been fairly steady, however, it has been declining for the past few years now.
Because of underlying demand and a supply in shrinking supply, home prices will likely rise at a brisk pace, even with some buyers restrained in their spending power. That’s the opinion of Matt Speakman, an economist at Zillow. The future will still bring higher home payments for buyers.
The passage of time was of great importance in Q2 during a period of “circuit breaker” and massive stimulus. Due to this, there has been a drastic decline in the volume of trades, keeping true price discovery at bay. A buyer would also adopt a wait-and-see attitude and seek better prices from the seller.
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