Can property agents in Singapore get more financicaly strong by the end of 2018 This year is almost over and as per the Morgan Stanley report, home price in Singapore is supposed to rise up to 10 %. The prediction of this report has quietly raised the eyebrows of many market analyst as it will equal the price peak in 2013. There was a fall to 11% since the price peak in 2013 and as per the Morgan Stanley report, the property agent in Singapore is going to reach the peak again by the end of this year. Standing at the end of this year, we tried to figure out the possibility of this rise with the current property market status. We looked into various new launch properties that are supposed to get announced by the mid of 2018 and also the current sales of condos and HDB flats to understand the going trend. As per the current market status, here the following hypothesis: 1. It is proved that the Singapore property market has recovered The sale of Condos in Singapore has risen for the second time in this quarter. As per the statistics made from the data collected from URA (Urban Redevelopment Authority), private and non- residential home price rose to 0.7% in the last quarter of 2017. These gains were feasible after four straight years of losing. On the other hand, the property price has risen by 1% across the country which includes condos, HDB flats, and sale of new launch properties. Since the last quarter, property price had a decline to 3.1 %, and developers are taking this change in the property price as a clear sign of the revival of the market. According to the last sales report collected from the various Singapore property agent database, it has also shown a fair rise in the sales volume of various property to match the peak price of 2013. 2. En-bloc fever is having a great impact to push the price up The sale of En-bloc has tow effect simultaneously, one it rise the land price for developers. The higher cost price does not imply just lesser profit for the developers so they can contribute to the price rise of the new launch projects and the cost are pushed to the buyers. The second effect of En-bloc sales is that it has displaced many property agents in Singapore who have sold their properties in en-bloc and are now in search for new properties having a chunk of money in their pocket. The en-bloc sales in 2017 have resulted in 1500 people to move out and most of them are looking for new properties now. Having gained $1.4 million to $2 million, they can now look for more luxurious condos 3. Diminishing of the oversupply of properties Unlike 2011, when the market was filled with an oversupply of properties, pushing the developers to lower the price, 2018 the number of unsold properties has fallen to somewhere 16000 units compare to the 40000 unsold units in 2011. 4. Effect of Buyer’s Stamp Duty As expected by some property market analyst the change in the Buyer’s stamp duty from February has caused little effect on the investment on property agents. The recent change in the BSD will have its effect on the luxury condos and apartments.
The rise of the property price has even more strongly the growth of property agents in Singapore. Till the end of last month, the market has shown a steady rise and is likely to show upward trend for the rest of the year making the assumption by Morgan Stanley to reach the 10 % mark quite possible. Even though there still some issues like poor rental market and high rates of interest for home loans that might cause some hindrance in the growth of the property market but the overall scenario is giving brighter hopes to the Property agents in Singapore.