This is a common question that investors from abroad and locally have been asking since the end of 2020, when the residential real estate market has grown for 8 straight months before the year started.
To answer this question, we look at what has happened in the more recent months. Home buyers have re-entered the property market after the Chinese New Year period in February, with anticipation of an economic recovery for 2021. This has driven new private home sales in March 2021 to 1,296 units, the highest number of residential properties transacted for the month of March since 2017. This is more than double of what was sold in February. Year on year, property developers secured 96% more sales for the new launches in March, with slightly less than half of the sales accounting for high-end condominium unit in the prime districts. This serves as very good news for developers who are planning to launch their new projects in the coming months, especially for UOL group and The Watergardens @ Canberra. The Sembawang region has not seen much new private residential developments since the completition of the Canberra MRT station, and this new condominium is going to be a big hit for buyers seeking a new home in the area. The only other new housing option is Provence Executive Condominium, but it has its restrictions on who can buy.
A local expert commented that property buyers who are flush with cash are seeking better returns from stable assets like properties, since bank interest rates are low. Leaving the money in the bank is no longer viable for their plans of retirement. He felt that, barring any new cooling measures by the authorities, demand for resale residential properties in Singapore will remain healthy for the rest of the year, due to the large pool of Singaporeans looking for a new home. There is an expectation that many Housing Development Board (HDB) upgraders will be buying LIV @ MB when it launches in the later part of the year, due to the lack of new private homes in the Katong / East Coast Park area. Many HDB owners have disposed of their flats in the earlier months of 2021, and are looking to move into ready and affordable apartments. As such, demand for resale residences is likely to continue to go up in the coming days with the limited supply of mass-market condominiums in the suburbs. In fact land for development is so scarce, developers have turned to collective sales of old buildings to acquire land for development, like the recent en-bloc sale of Maxwell House at record prices. Because of this, prices of condominiums increased by 1.5% in April compared to March.
With the momentum going strong for the Singapore property market, and research from many experts locally predicting growth in the sector, investors sitting on the side-lines need to consider whether it still makes sense to wait, as prices climb and availability of units drop. Should investors need help, they can look for professionals who are building their property agent career for current advice on how to best time the market and get the best returns on their investment.