ANALYSTS FORECAST
PROPERTY REBOUND IN MID-2016
Dec 15, 2015
Amidst the mostly bearish views on Singapore’s housing
market, some experts believe that transaction levels could start to recover in
the second half of 2016, reported The Business Times.
Next year could be a tale of two halves for the property
sector. A tepid first-half followed by a rebound in transaction levels over the
next six months, especially in the luxury housing market, said Knight Frank’s
Head of Research & Consultancy, Alice Tan.
She thinks that interest from both local and foreign buyers
may rise due to the likelihood of some economic stimulus from the government,
coupled with the unfavourable situation in some mature overseas property
markets like Australia and London.
A number of buyers could also return to the market,
particularly in 2H 2016, when they feel that the hefty price corrections they
were anticipating are unlikely to happen, noted Alan Cheong, Research Head at
Savills.
As for transaction levels, he forecasts that primary sales
of private non-landed homes, excluding executive condominiums, could hover
around 7,500 units next year.
Such optimistic views are also shared by OrangeTee’s Senior
Manager for Research and Consultancy, Wong Xian Yang, who believes home prices
in the Core Central Region (CCR) and Rest of Central Region (RCR) could start
to stabilise in late 2016 or 2017, as long as the economy remains positive.
“Demand may start gravitating towards the central regions
(CCR and RCR) as prices become more attractive and affordable,” he said.
However, property experts believe that the looming supply
glut could worsen vacancy rates.
“With the impending new completion of around 22,300 private
home units next year, (the) vacancy rate may creep up to 10 percent or higher
especially for non-landed homes,” noted Tan.
Cheong thinks “it may take about 18 months till mid-2017 for
the rental market and vacancy levels to improve.” In particular, the vacancy
level for non-landed homes could surpass 10 percent next year.
Meanwhile, SLP International’s Executive Director Nicholas
Mak reckons that non-landed home prices could dip by 2.5 to five percent in
2016. In the worst-case scenario, prices may fall by more than five percent
next year.
Info courtesy - Propertyguru
