Property prices unlikely to fall sharply
Singapore’s property market presents plenty of buying opportunities for institutional investors now that it has cooled somewhat.
Buyers waiting for a major price correction will be disappointed.
The Government’s measures to boost Singapore’s population could prop up demand for property and support prices.
So far, no recent transactions by institutional investors have reflected a repricing in the market.
Sellers here have become more realistic and lowered their expectations.
More investors are coming back to look at properties that may have previously been overpriced but are now open to negotiation.
Currently, there are many more people interested in selling Singapore properties than in buying them.
Now, growth funds and some opportunistic investors are pulling out of the plateauing Singapore market, at a time when owners - including banks, foreign firms and opportunistic funds - are becoming more willing to sell.
Interest in Singapore properties remains high, however, especially in the logistics and industrial market.
Commercial assets in Singapore are also in demand to some extent, but the residential sector is likely to turn in a weak performance in the investment market this year.
While repricing is not an apparent risk in Singapore’s property market, the Asia-Pacific region is facing an average repricing of 25 to 100 basis points, or 0.25 per cent to 1 per cent.