Singapore property news reports that prices of high-end apartments and condominiums in the swanky neighborhoods in Singapore took a major tumble in 2014, making many wonder whether foreign real estate enthusiasts are exiting the market place for good. In 2014, the exclusive Sentosa Cove and Orchard Road apartments sold at substantially lower prices than the previous year. These are the areas popular with foreign investor. Some prices had dropped double-digit percentages. The prices on these exclusive properties fell much more than prices in other areas.
Residential Real Estate Values Fall
Singapore real estate values dipped overall in 2014, by about four percent, causing some banks to require homeowners with real estate loans to add additional money to their purchases. Some, rather than adding money, sold their real estate, adding to the downward pressure on prices. Most economists do not see a continuing decline In real estate prices, unless there is a global economic downturn. They expect prices to rebound, as investors take advantage of the current low prices.
Over the past decade, Singapore has become a haven for private wealth because of its stable economy and nice lifestyle. At the peak of foreign buying in 2011, total real estate transactions in the region consisted of 20 percent foreigners. That level has declined since then, but still makes up 10 percent of transactions.
Mainland Chinese top foreign buyers of private property in Singapore
Real Estate Prices are down but not Dangerous
For 2015, Singapore property news found that the real estate market saw another 2.9 percent increase in the number of units being sold. Higher interest rates and concern over potentially lower resale values may prove tough for markets during the second half of 2015. Headwinds are likely to continue as supply increases and buyers remain cautious. Prices are not expected to crash, however. Next year is Singapore’s 50th independence year and the government will try to keep the markets from tipping too far in either direction. Foreign investors are likely just waiting for a settling down, to begin their next buying spree.