Home News Featured News Private property prices to rise between 5-7% says research firm

Private property prices to rise between 5-7% says research firm

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Property consulting firm Cushman & Wakefield believes private property prices will rise between 5% and 7% this year.

A spokesperson for the firm told the Wall Street Journal the higher stamp duty announced this week could have the effect of increasing demand for lower-priced properties located in the suburbs.

This despite the fact that Singapore’s residential property market is still too hot for the city-state’s government, said the Journal.

The Journal said the recent uptick in sales drew both local and overseas developers to acquire land for development.

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The so-called collective sales, where builders buy apartment blocks for redevelopment, have increased in volume in recent months.

A total of eight sites worth a total of S$3.1 billion have been sold so far this year, according to Cushman & Wakefield.

That follows collective sales of private property totalling of S$8.2 billion in 2017, the highest level in a decade.

The Journal said there are signals the frenetic pace of activity in the market over the past year may be worrying the authorities.

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This brought about the cooling measures announced in the Budget 2018 with the rise of the duty for high-value property transactions.

The bulk of residential properties in Singapore that cost over a million dollars are private apartments or houses, owned largely by higher- locals or foreigners.

The budget announcement caused a slump of several real-estate stocks.

Local builders, whose shares had climbed earlier this year, were among the country’s worst-performing stocks as trading closed.Follow us on Social Media

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