Singapore property market proves to be resilient

SG Property provides an overview of the property industry in the Asia-Pacific and Singapore, covering the residential, industrial, office and retail sectors. The Singapore property market in 2011 proved to be resilient due to several factors, such as high Singapore dollar liquidity, a low interest rate environment and no shortage of housing loans. According to the Urban Redevelopment Authority (URA), developers sold 18,787 units of new homes in 2011, up 8.3% y/y. In 2011, prices of residential properties increased 5.9% as compared to 17.6% in 2010.

The report presents the market trends and outlook for the industry which include the property regulations, government land sales (GLS) programme and office shadow space. URA statistics showed the rate of increase in Singapore property prices moderating in line with the government’s property cooling measures, such as sellers and buyers stamp duty.

The report also includes the major players in the property industry and their financial highlights and SWOT analysis. Most property developers saw an improvement in their revenue and net income in Q1/2012, despite the uncertain global economic climate.

Key findings

• The property price index for landed and non-landed private residential units rose from 199.1 points in Q1/2011 to 206 points in Q1/2012. The property rental index also increased y/y from 155.3 points to 159.6 points in Q1/2012.
• According to the URA, the total of number of private residential property transactions in 2011 declined 10.1% y/y to 35,394 deals with a value of SGD 53.3bn. Meanwhile, the vacancy rate of private residential units increased slightly from 5.9% in Q4/2011 to 6% in Q1/2012 with more supply in the pipeline.
• The Singapore office demand started moderating in H2/2011 given the grim economic outlook. URA data showed that the rental index for office space in central area increased by 8% in 2011, compared to 12.4% increase in 2010.

Source: CEIC

This is only a small extract of the insights in the Singapore Property Industry report; read more and purchase>>