Property market resilient despite economic uncertainty

By
/ EdgeProp Singapore
|
July 18, 2019 4:30 PM SGT
The crowd at the EdgeProp 360 talk on July 10 (Credit: Albert Chua/ The Edge Singapore)
While investors typically retreat to the sidelines in the face of macroeconomic uncertainty, property buyers in Hong Kong and Singapore have bucked this trend. During the weekend of June 22 and 23, while thousands of protesters besieged Hong Kong’s legislative building, units on sale were swooped up by eager property buyers. According to South China Morning Post, Sun Hung Kai Properties sold 116 of the 130 flats offered in the second sales phase of the Mount Regency complex in Tuen Mun; while in Yuen Long, out of the 128 flats on offer at New World Development’s Atrium House, 111 units were sold.
In Singapore, the same weekend saw the launch of Sustained Land’s freehold Sky Everton with nearly 40% or 102 units sold. To date, URA data shows that 134 out of a total of 262 units have been sold.
“So it tells you something: it’s very hard to bring down this residential animal. It is going up, and it wants to go up,” says Alan Cheong, executive director, research & consultancy, of Savills Singapore. Cheong was speaking at the EdgeProp 360 event, titled “Separating fact from fiction: The search for the best yield”, held at Capital Tower on July 10. His view is that while property resale prices will be “flattish” this year, prices of new sales are on an uptick.
According to Savills Research and historical data from URA, of the 26 interventions implemented by the Singapore government since 1981, only seven have been pro-market. However, the price index for all private residential property (including EC) has been on an uptrend, despite the many cooling measures over the years.
Cheong: It’s very hard to bring down this residential animal (Credit: Albert Chua/ The Edge Singapore)
Cheong notes that because of rising household savings, property prices today are more affordable than they were even in 2013. A year since the last round of cooling measures,...