Just after a sharp decline in December 2011, Singapore property sales are up sharply in the first month of 2012 with 2,077 units are sold including the executive condominiums. There were just 670 units were sold in December. The increase is despite the new property cooling measures introduced by Singapore Government in December 2011 and the numbers may result in one more round of property cooling measures if they stay elevated like this.
Singapore property market has been bubbled up to its historical high levels over endless money printing in major economies like USA, Europe and China. Artificially low interest rates mean artificial affordability in Singapore property market where monthly rents minus monthly mortgage payments generate strong positive cash flow. Although the large rebound next month was attributed to several large mass market developments since these so-called mass market units have ultra high price tags, it seems like the zero interest rate party is still going on.
We are in an era in which private residential flats priced around 1 million Dollar, 11 times the average yearly household income of Singapore, are referred as mass market and the never ending demand for them are referred as "healthy" by the experts. The best selling projects of January 2011 were mixed-use developments named The Hillier and Watertown which are popular among investors hoping to rent the finished units out.
One highlight of the month was that that the high end segment, in which an apartment flat in Singapore is priced more than Beverly Hills palaces, only 17 homes were sold. City fringe did a little bit better with 97 units. These 2 segments were dominated by foreigners who are probably put of by the additional buyer's stamp duty of 10 percent introduced in December 2011.
Singapore property market has been bubbled up to its historical high levels over endless money printing in major economies like USA, Europe and China. Artificially low interest rates mean artificial affordability in Singapore property market where monthly rents minus monthly mortgage payments generate strong positive cash flow. Although the large rebound next month was attributed to several large mass market developments since these so-called mass market units have ultra high price tags, it seems like the zero interest rate party is still going on.
We are in an era in which private residential flats priced around 1 million Dollar, 11 times the average yearly household income of Singapore, are referred as mass market and the never ending demand for them are referred as "healthy" by the experts. The best selling projects of January 2011 were mixed-use developments named The Hillier and Watertown which are popular among investors hoping to rent the finished units out.
One highlight of the month was that that the high end segment, in which an apartment flat in Singapore is priced more than Beverly Hills palaces, only 17 homes were sold. City fringe did a little bit better with 97 units. These 2 segments were dominated by foreigners who are probably put of by the additional buyer's stamp duty of 10 percent introduced in December 2011.
No comments:
Post a Comment