The affordability for national market condos in Singapore had improved compared to 2007. It is mostly due to the low rate of interest. Domestic condominium project away from the central area are leading the industry recovery. Demand for condominium beyond the central area had increased to 40 percents of total private residential trade in Singapore. The developers took the opportunity to launch domestic condo at aggressive pricing in first quarter of 2009. Over half of the buyers were HDB upgrade.
The Amount of private condo that is to be completed from 2009 to 2013 is estimated to be in the variety of 11,000. Compared to 1996 – 2000, there are approximately 40,000 finished which include both public and private housing; the amount of unit finished for the last five years had dropped to 13000 units annually since the government cut down on the amount of public housing.
The residence population grew with an estimated annual rate of 1.4 percent from the past ten decades. According to Pasir Ris 8 Condo statistic, the yearly demand will be approximately 16000. There is also substantial demand for government public home for three and four space model. The program for Pongola and sinking this year created an oversubscription situation. With the high demand in public housing, it creates an overspill effect for private condo. Majority was upgrade of public housing.
With such increased in demand, the pricing also start to increase gradually in the beginning of 2009. By way of instance, an average cost of a 3 bedroom cost, it had climbed to a moderate price of 600psf that is like the summit in 2007. Additionally, the lower interest rates had also enhanced the attractiveness of the national condo.
However, the recent jumps in 2nd quarter of this year had greatly indicated the growth in the pricing. The present domestic market new finished project is at a normal pricing of 950psf. Job that just completed and close to the train station brought many serious buyers who prepared to pay for a premium. By way of example, the resale price of Casa Me rah upon completion saw the pricing to rise to 850psf.
However with the typical cost going toward 900 puffs, few residents may manage the monthly instalment. With this, the downward pressure begins to form. The caveats lodged in August revealed a lesser share of public housing upgrade. With Singapore expansion and business infrastructure, the country is attracting many oversee investors. These investors believe there are additional upsides in the long term. The market in Singapore had played better than expected in 2009 mainly as a result of stimulation spending from the government.