Sunday, March 5, 2017

There are signs that the market is bottoming out in 2016 with higher sales. Where is the demand coming from?

There are signs that the market is bottoming out in 2016 with higher sales.
Where is the demand coming from?

External risks remain despite surge in sales
Residential property sales surged by 15.5% to 16,378 units in 2016 from 14,183 units in 2015
(Figure 1). Singaporean buyers accounted for 74.2% of the residential property purchases,
reaching the levels in 2012 and 2013. Additionally, demand for private residential properties are likely to be supported by upgraders, with sales volume for HDB resale flats increasing by 7.8% to 20,813 units.



According to URA’s residential property and HDB price indices (Figure 2), home prices have largely
stabilized. Prices for HDB flats stayed largely the same in 2016, while prices for private homes eased
by 3.1%, marginally less than the 3.7% decline in 2015.




Edmund Tie & Company Research

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