Experts differ on where they see prices headed, with a few predicting firm home values within the light of low rates of interest for the following 2 yrs and also the strong holding energy of designers and homes. Location also is necessary, with choicer sites – especially individuals near to MRT stations or transport nodes – likely to endure better in case of conditioning demand.
People who expect prices to fall mostly notice happening in 2013 and 2014, as the building of many suburban projects reaches completion. Prices for your relaxation of the season will most likely hold firm, mentioned Mr Ernest Tan, CB Richard Ellis (CBRE) executive director of residential.
But experts admit that the market outlook has been clouded by the global market volatility, the European sovereign debt crisis and risks of another global recession, with the United States economic recovery stalling. How these events pan out in the next few months will have an impact on the take-up of new launches and where prices are headed, they predicted.
SLP International research head Nicholas Mak sees a more than 50 per cent chance of a correction in the next three years. Whether this will be a short blip or sharp drop, however, depends on how the macroeconomic situation plays out. RBS’ analysts, however, expect mass market homes to be in short supply till 2014 due to the population jump in the past five years and the lower-than-average home completions in the past decade.
As Singapore’s population continue to grow towards the 6 million mark, what does this mean for home prices and affordability?
The people rise within the last five years averaged 3.five percent yearly in contrast for the 1.9 % yearly growth from 1996 to 2005, they noted, driven with a increase in the quantity of non-Singaporeans. ‘Work permit holders who buy under $1,800 monthly taken care of for your greatest quantity of non-Singaporean people. This had elevated curiosity about mass residential houses as well as the segment would remain undersupplied until 2014,’ the report added.
Take Costa Del Sol, for example. Costa Del Sol is situated off the ECP, off Upper East Coast Road. It comprises of seven towers, each at 30 storey high. Each unit is built to cater to the panoramic views of the sea across the complex. Expect to see a undisturbed, panoramic view of the sea if you live above the 12th storey.
This has thrown up the question of when buyers should make their move, in the light of the various factors and uncertainties in the market. While home buyers often try to time the market, experts say that this is very difficult. Affordability should be the key consideration instead.
Purchasers also need to consider their motivations for sale – budget, emergency of need and accessibility to the things they like, for instance – and the kind of product they’re searching for.
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