The most fashionable question today is “When will the Singapore condo market reach its trough?”
Home buyers and property investors are constantly looking for the best time to confirm their purchases. In the recent months, we are seeing more buyers visiting new condo launch showflats to check out the markets, and perhaps land themselves some real bargains. Of course many are waiting for further dip in price. Many insist that further southward movement is to be expected in 2017.
It is anticipated that the Singapore condo sales market will experience some adjustments in 2017. Perhaps a mid-single digit dip. Double digit drop is most improbable.
Realistically, prices for new condo launches have been rather soft in the past one year or more. It is similar for the secondary market.
The private property outlook for 2017 is indeed interesting. Market watchers are expecting bargain hunters coming into the market at relatively lower prices. Also, many savvy buyers do realize that developers in Singapore are financially strong and will not succumb to downward price pressure. Off the record, countless unrealistic offers by buyers in new launches had been rejected. Developers are a tough lot; not without their tenacity and deep pockets to throw back those lowball offers!
If we take a further look at the supply side of completed new condo Singapore launches, 2016 has reached its apex with close to 23,000 homes. Come 2017, the figure will be reduced by close to 50%, at slightly above 13,000 new condo units.
In short, do not expect out-of-this-world bargains in 2017. They won’t happen. 2017 will be the year that private residential prices reach their bottom, stabilize and resume their steady increase thereafter. So for those who have been waiting, an understanding of the above situation tells you that it may not be wise to hold on for too long. If you have come across a new condo with a reasonable (touch your heart!) price tag, go for it! It is after all a long term investment, and healthy steady future capital appreciation should be your guiding beacon to put in your commitment!
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