Foreign investors are taking advantage of a recent housing boom in Singapore, investing in more than 60% of the New Futura luxury residential property new builds, selling 48 units out of a possible 64 to overseas buyers.
Surprising growth in the property market
Analysts are surprised by the recent sales momentum that the New Futura project has gained so early in 2018 and feel that it may be too early to actually be taking any profit in view of predicted data-points.
The unit sales of Singapore property has recently risen by 14% to 3,200 units with transaction values being much higher in 2018 by a massive 46% making it a prime time for developers to start investing in landbanking, with many plots of land being bought up in readiness for future development projects and although the property market in Singapore has plenty of room to grow, further en bloc sales have been reported in 2018 of up to $5bn, with far more planned to go ahead, according to Derek Tan a DBS Equity Research analyst.
Future plans for more project launches
But analysts at DBS Equity Research feels that this recent expansion could be pushed further, pushing transaction values to go beyond upwards of 10% year on year, making investing in land a smart move by development companies.
As foreign interest continues to grow around the Singapore luxury property market, developers are planning a further 30,000 units, set to launch over the next two years, with 20 projects boasting a further 2,583 units within the next few weeks. This has predicted a rise in developer stock as pre-sales figures are already proving to be positive and given speculation of a further 15 projects, increasing the units by 9,000 in the foreseeable future. Possibly to satisfy the recent surge in foreign investors looking for Singapore property. Indeed, many analysts have already expressed the view that investors can rely on foreign demand for the units to remain high.
Developers are already planning for future major project launches beyond the next two years as the market is believed to continue to be strong with plenty of overseas investors looking to grab profits in the luxury Singapore property market.
Secondary sales also seem to be attractive to foreigner buyers
But developers are not the only ones seeing the potential in the market. The rate of home vacancies has risen significantly in Singapore by over 8% as developers and homeowners are hoping to cash in on the latest sale boom by selling their property. This is particularly evident in the main Core Central Region in Q4 where vacancy rates have risen even higher to 11%. Thus proving that it is not just new builds that are attracting the attention of foreign buyers with many property unit sales being secondary sales also.
Therefore hope is high that the returning property market in Singapore will help the average home buyers to turn a tidy profit on their properties by either selling to developers or relying on the current overseas trends.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Wealth investments paying off for Singapores big three banks, 10 reasons to invest in Singapore commercial property and all topics related to Singapore Business and Finance.If you are interested about Company Business Setup in Singapore visit our website for more info.
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