Singapore Property Developers Bullish Despite International Subprime
Singapore property developers are playing down the impacts of the US subprime crisis, as the continuing property boom surges large developments for the residential property market.
Obelisk International believes that unlike some credit markets, which have been affected by the US sub prime mortgage instability, Singapore will continue to see hardly any impact. Government data backed up the investment news by publishing figures showing that residential property prices have risen by around 21% since mid-2006. The volume in demand has also picked up, with developers reporting over 9,000 units under construction compared to only 4,000 last year.
City Developments general manager Chia Ngiang Hong commented ‘We do not expect any significant adverse impact on the property market here in view of the strong economic fundamentals,' Chia said. Chia said demand in the low-to-mid tier residential market is still improving, with City Developments' projects in this area continues to sell well. Demand for high-end residential properties is also continuing to improve but the price appreciation in this segment may slow after rising rapidly in the last 12 months, he said.
However, analysts believe that the shortage of housing in Singapore will continue despite the new projects being launched by developers given the government's population target. Citigroup’s Wendy Koh says 'The supply shortage situation is unlikely to change. Unless we see significant exodus of expatriates, short-term demand supply equilibrium will not change. The supply shortage is being aggravated by the demolition of older condominiums that are earmarked for redevelopment and with developers focusing on niche high-end residential projects that provide better profit margins. We expect rental rates to continue to rise, thereby supporting higher (housing) prices,' Koh said.
For more information on property investment and to find out about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670 or email info@obeliskinternational.com or visit our website http://www.obeliskinternational.com/
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Obelisk International believes that unlike some credit markets, which have been affected by the US sub prime mortgage instability, Singapore will continue to see hardly any impact. Government data backed up the investment news by publishing figures showing that residential property prices have risen by around 21% since mid-2006. The volume in demand has also picked up, with developers reporting over 9,000 units under construction compared to only 4,000 last year.
City Developments general manager Chia Ngiang Hong commented ‘We do not expect any significant adverse impact on the property market here in view of the strong economic fundamentals,' Chia said. Chia said demand in the low-to-mid tier residential market is still improving, with City Developments' projects in this area continues to sell well. Demand for high-end residential properties is also continuing to improve but the price appreciation in this segment may slow after rising rapidly in the last 12 months, he said.
However, analysts believe that the shortage of housing in Singapore will continue despite the new projects being launched by developers given the government's population target. Citigroup’s Wendy Koh says 'The supply shortage situation is unlikely to change. Unless we see significant exodus of expatriates, short-term demand supply equilibrium will not change. The supply shortage is being aggravated by the demolition of older condominiums that are earmarked for redevelopment and with developers focusing on niche high-end residential projects that provide better profit margins. We expect rental rates to continue to rise, thereby supporting higher (housing) prices,' Koh said.
For more information on property investment and to find out about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670 or email info@obeliskinternational.com or visit our website http://www.obeliskinternational.com/
If you wish to see the original article please click here
posted by Chris at 3:45 pm
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