Home»News»Singapore property rebound just starting as prices seen jumping _Today 10.01.2018
Singapore property rebound just starting as prices seen jumping _Today 10.01.2018
Singapore property rebound just starting as prices seen jumping
SINGAPORE ― Credit Suisse Group AG and Morgan Stanley are calling the end of Singapore’s property downturn, after a second consecutive quarterly increase in private residential prices.
Home prices may rise as much as 10 per cent this year, according to analysts at Credit Suisse, while Morgan Stanley and OCBC Investment Research expect as much as an 8 per cent increase, according to reports from the brokerage firms.
Private residential prices rose for a second straight quarter in the period which ended on Dec 31, reinforcing signs that the city-state’s property market is emerging from a four-year slump.
For 2017, prices rose 1 percent compared with a 3.1 per cent decline in 2016, data from the Urban Redevelopment Authority showed.
Developer valuations remain attractive, according to Credit Suisse, whose top stock pick is UOL Group due to its high exposure to Singapore and its residential market.
UOL is also one of two developers cited by OCBC as having the best prospects. City Developments is Morgan Stanley’s favorite, and also one of OCBC’s best picks.
Here’s what the analysts said about their outlook for Singapore property:
Collective sales or "en-bloc" deals, valued at S$8.3 billion last year should continue to enhance the property market in 2018: Credit Suisse
Homes sales may increase 40 per cent in 2018: Morgan Stanley
Housing recovery will extend through 2019; potential government cooling measures pose risk but such moves may be premature as market is just two quarters into a recovery: Morgan Stanley
Surge in home completions from 2021 could begin to dampen sentiment but prices could double by 2030: Morgan Stanley
New home sales estimated at 12,000 to 15,000 units in 2018; rental prices to climb between five per cent and 10 per cent this year: OCBC