Singapore – Singapore’s property market is showing signs of overheating once again, with new launches flooding the market and driving prices higher. In November alone, six new residential projects were launched, with 'Chuan Park' and 'Emerald of Katong' garnering significant attention. Some projects even saw hundreds of visitors at their open houses, indicating strong demand.
This surge in new launches is believed to be a strategy by developers to offload inventory before the Chinese New Year period, when the market typically slows down. However, this has resulted in increased competition among buyers and driven up prices.
A particularly notable trend is the virtual disappearance of 3-bedroom units priced below S$2.1 million. The most affordable 3-bedroom units are now found in the basic configurations of 'Emerald of Katong,' and even these are expected to sell out quickly.
This situation could lead to interesting demographic shifts. High-income earners may be pushed to the outskirts, while HDB buyers might be drawn to the city center. The combination of high property prices, a weak rental market, and the increased Additional Buyer's Stamp Duty (ABSD) for foreigners could prompt some high-income earners to opt for condos in suburban areas. Conversely, some upgraders may find older apartments in the city center to be a more practical choice than suburban condos priced above S$2.1 million. Additionally, the 'Prime Housing' scheme could enable some fortunate BTO buyers to move into the city center.
These shifts could have a positive impact on the city's balanced development. The city center has a high demand for labor in sectors like cleaning and services. If workers in these industries can afford to live in the city center, it could have a positive impact on businesses.
However, it's important to note that those who need to live in the city center the most may not be the ones who can afford to do so. This is a common issue faced by many cities around the world.
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