This would come as volumes approach five-year peaks.

Some analysts are believing that the time has come for the property market to undergo an inflection.

According to DBS Group Research analysts led by Derek Tan, recent market indicators point

toward a property market inflection this year and a rise in property prices from 2018 onwards.

To recall, property sales in the first six months of the year have increased 46% YoY.

The analysts believe that if the sales momentum continues, volume will reach a five-year peak.

"In our analysis,

we found that 94% of home buyers in 1H17 are Singaporean households.

A wildcard to a further acceleration in price is

when the wave of buying from foreigners return,

especially for homes in the Core Central region," they noted.

With this, they forecast property prices to rise by 6-10% in two years.

Meanwhile, the rise in property prices will be supported

by the market absorption rate which is at multi -year lows.

Unsold inventories are at 16-year lows at 29,000 units, they cited.

"When compared against current transaction levels,

we found that market absorption rate

(ratio of unsold units and new sales) stands at 2.1x and it is

the tightest in the suburb (Outside Central region),"

DBS Group Research analysts noted.

They added, "Even if we were to include the more than

3,000 unlaunched new units from

the recent government land sales (GLS) and en blocs,

we believe the market can absorb them easily."
 

Singapore Property Market Is 'Bottoming Out,' 

Says Biggest Developer's CEO

Klaus Wille and Paul Panckhurst

2017년 8월 3일 오전 11:52 GMT+8 2017년 8월 3일 오후 1:03 GMT+8

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Singapore’s biggest developer, CapitaLand Ltd., detects signs that the city’s residential property market is “bottoming out” after a run of price declines, Chief Executive Officer Lim Ming Yan said.

Many investors are seeing Singapore as relatively more attractive than Hong Kong, London or Australian cities, Lim, who’s also president of the firm, said in a Bloomberg TV interview with Haslinda Amin on Thursday. Extra liquidity was a factor in higher transaction volumes and slower price declines in recent months, he said.

“For a rebound to take place on a more sustainable basis, there has to be overall improvements in the fundamentals,” Lim said.

The government’s efforts to cool a red-hot market have triggered a record 15-quarter decline in home prices, in contrast with cities such as Hong Kong, where property keeps soaring to records. In March, Singapore eased some restrictions, but cautioned that those adjustments didn’t signal any bigger unwinding of curbs.

Singapore’s restrictions are “a very stringent policy,” so further tightening isn’t likely, Lim said. “At the same time, given the current market conditions, it’s unlikely that we will see a relaxation, certainly not within this year.”

Home sales jumped 72 percent during the first half from a year earlier as developers sold 6,567 units, according to the Urban Redevelopment Authority.

Lim was commenting after CapitaLand said net income almost doubled to S$579 million ($426 million) in the three months ended June 30 from a year earlier. Revenue declined 12 percent to S$992 million. Assets in China made up 43 percent of the S$44 billion CapitaLand portfolio as of June and Lim said in the interview that he’d be comfortable if that rose to 50 percent. CapitaLand shares have gained 23 percent this year.

— With assistance by Sebastian Tong, and Anand Menon