In spite of several cooling measures, prices of homes in Singapore will continue increasing as per several reports. Latest studies from Morgan Stanley have indicated that home prices may go up by close to 10% by the end of 2019 in Singapore and may even double by the year 2030. This will naturally happen with swifter growth in incomes which will naturally surpass the impact of higher rates of interest and other property curbs.
Home prices have gone up in 4 out of 5 earlier cycles of interest rate increases as per Morgan Stanley. The economic growth of Singapore is on the fast track and the city is being recognized as one of the biggest global commercial hubs. Demand will always be there in the market from affluent buyers. The latest round of property curbs have already given rise to several revisions of earlier forecasts that home prices would double in Singapore by the end of 2030.
However, Morgan Stanley’s report puts the record straight and indicates that Singapore is on track towards achieving this forecast. Supply and demand dynamics in the Singapore real estate market are on the favourable side as per Morgan Stanley and hence there are massive inflows of capital expected for the housing market in the near future. The supply of housing is still lower than the historical average and will only fall as per reports.
The Government could even relax some of these curbs on property in case prices come down a little. 8 policy curbs were unveiled by the Government with home prices increasing by close to 60% in the years between 2009 and 2013. Seller stamp duties were removed partly last year before curbs again started from this year. Singapore will continue drawing more investments in property due to its status as a major financial and global hub as per Morgan Stanley. Top infrastructural projects like the new terminal at the city’s Changi Airport and the efforts of the Government to attract foreign investments will play a vital role in this regard as per experts.
Singapore market continues to witness price growth
