Singapore is world’s fourth most expensive city for expats: survey
Singapore has emerged as the world’s fourth most expensive city for expatriates, according to Mercer’s annual cost of living survey...
Analysts believe the four-year slump that has plagued Singapore’s property market may have come to an end as private home prices rose for a second consecutive quarter in the period ended-31 December.
In fact, analysts at Credit Suisse expect home prices to grow by as much as 10 percent in 2018, while OCBC Investment Research and Morgan Stanley expect an eight percent hike, reported Bloomberg.
Data from the Urban Redevelopment Authority showed that prices increased one percent in 2017 compared with a 3.1 percent drop in 2016.
Developer valuations also continued to be attractive, said Credit Suisse.
The firm named UOL Group Ltd – one of two developers considered by OCBC with the best prospects – as its top pick due to its high exposure to the city-state as well as its residential market. City Developments Ltd, on the other hand, emerged as the favourite of Morgan Stanley and one of OCBC’s best picks.
Credit Suisse expects collective sales, which was valued at $8.3 billion in 2017, to continue to enhance the property market this year.
For 2018, home sales may increase 40 percent, said Morgan Stanley, noting that the housing recovery may extend through 2019.
And while potential government cooling measures may pose risk, such move could be premature since the market is only two quarters into a recovery, it added.
OCBC predicts new home sales to stand between 12,000 and 15,000 units in 2018, while rental prices may increase by five to 10 percent.
This article was edited by Keshia Faculin.