With the cooling measures firmly rooted, and an economy outlook less than rosy, many are expecting the Singapore property market for 2017 to be nothing but lukewarm, at best. The presence of Additional Buyer Stamp Duty (ABSD) ranging from 7 to 15%, and a looming technical recession, the Singapore condo market for 2017 seems unlikely to see much sunshine.
Well, maybe not. The Oct 2016 Singapore condo sales recorded extremely impressive showing, turning in year-on-year increase in sales volume by a whopping 87%! Such robust performance was fuelled strongly by The Alps Residences, a new launch in Tampines. Yet another new condo launch, Forest Woods along Upper Serangoon, was another strong contributor too!
And as a whole, the Year-To-Date sales transaction of 2016 is very likely to outperform that of 2015’s.
So what really is the outlook for private condos in Singapore for 2017?
One thing is for sure – judging from the later 2016 sales figures, buyers are slowly but surely coming back to the market. Also, there has been increase in buyers thronging other new launch show flats, checking out attractive packages offered by developers. For sure many are still adopting a wait-and-see approach, but certainly some would have landed on good deals and proceeded with their purchases.
It is almost impossible to time the market perfectly. Those who have committed believed that their purchase was done at a good time, and not necessarily the best time. The point is, who can be that sure of the best time?
So now we have 2 groups of buyers: those who are ready any time versus those who are still waiting for the best time. For the latter group, the risk is on their side. Why? The market is picking up. New launch units are quietly being taken. Buyers compare notes. Urgency creeps in. More units fly off the shelves. In short, the spiral effect starts to take effect inconspicuously. Developers of Singapore new launches start to remove discounts and perks; worse still increase price. A recovery is on its way. And perhaps a V-shape recovery sets in. As the adage goes “What goes down must come up.” So what happens to those who waited? They miss the best time. They miss the preferred units. Prices may now seem too high for their liking. In short, they miss their chances!
In conclusion, it is just too difficult to spot the right time. In the Singapore condo market, if a new launch comes attractive enough; if you have done your sums correctly and confidently; if the new condo has the ingredients in your favour; then go for it!