Ken Low from Huttons Asia talked about upcoming launch prices and squashed any possibility of a property bubble forming at a recent Guru Talk event.
Singapore’s property market has seen a decline for nearly four years, but this was followed by a recent upturn in property prices and transactions. In fact, analysts from Morgan Stanley have predicted that property prices could rise by 5.0 to 6.0 percent per annum.
Meanwhile, the number of new launches may hit 50 this year, with the majority of projects located in the central, western and northeast regions. The northeast of Singapore, which includes Sengkang, Serangoon, Kovan, Hougang and Punggol tops the list for being the most affordable region and one to look at in the coming years. Located within the North Coast Innovation Corridor, the area will grow to become the largest regional centre, surrounded by various R&D and tech companies.
But questions remain, including what to expect in the second half of 2018 and how buyers and investors can address current challenges in the property market.
Also, what is the growth potential of regional centres in Singapore? These issues were discussed during PropertyGuru’s recent Guru Talk seminar held at the Parc Botannia showflat in Sengkang at the end of March.
Guru Talk is a series of knowledge empowerment seminars aimed at providing ‘Guru Views’ on the property market.
The latest seminar drew a good response, with over 50 people in attendance and looking to gain fresh insights from esteemed speakers Ken Low, director of project sales & marketing at Huttons Asia, and Winston Lee, PropertyGuru’s regional head of special projects.
The event kicked off with Low talking about launch prices of upcoming projects and squashing any possibility of a property bubble forming.
“If the launch price of a property is higher, there will also be a much higher chance of capital appreciation. As of now, launch prices of projects in the northeast area are in the range of $1,200 to $1,400 psf, $3,000 psf for central areas, $1,800 to $2,500 psf for the city fringe, and $900 psf for executive condominiums,” he said.
Low added that housing prices are still within the healthy range. Singapore also has one of the lowest interest rates at 1.6 to 1.7 percent and there is fluidity in the market due to ongoing en bloc sales.
“Aside from the Buyer’s Stamp Duty for property purchases above $1 million, we are also expecting an increasing population and a higher number of foreign investors,” he noted.
Attendees also benefitted from a talk on the potential of regional centres in Singapore from PropertyGuru’s Lee.
“There are four regional centres; Tampines Regional Centre, Jurong Lake District, Woodlands Regional Centre and the North Coast Innovation Corridor. Aside from Seletar Aerospace Park, the growth pipeline in the North Coast Innovation Corridor includes the new Singapore Institute of Technology, the future Thomson-East Coast Line and the creation of 10,000 jobs by end 2018,” he said.
Punggol and Sengkang currently top the list of areas for property ownership due to employment opportunities and its popularity among younger Singaporeans. This will in turn boost the market value of properties and promote better rental yield and demand, noted Lee.