Singapore's residential real estate sector is still, to quote NBA Jam, on fire, even if the Singaporean government are attempting to cool the market in an effort to keep prices under control, according to Savills' Residential Sales Briefing for October.
According to the briefing, July featured just 1,946 new homes sales, a rise of 42 percent month-on-month, which places the total sales figure for the first eight months of 2012 at 15,300 new properties, close to the full-year total of 2011.
August, meanwhile, had just 1,421 homes or condos sold. This coming fall has been described as "moderate" since there hasn't been a significant number of new launches and sales are traditionally slowing during the Chinese hungry ghost festival.
Ever since the latest round of easing occured, with the Federal Reserve reportedly putting in US$40 billion into their economy per month until more sustainable job growth take place, Savills predicts a return of foreign investors for Singapore. This is especially true in high-end segment of the market.
"The bulkheads of Singapore's housing market are still firm at a time when global economies are being serially depth-charged by crisis after crisis, and we may in act benefit from QE3," Alan Cheong wrote in the Savills Research.
The briefing also revealed that low and middle ends of the market have always been driven by domestic demands, and that this isn't about t change. The developers are aware of this, and have continued to mint small affordable units and easy financing at low rates to ensure growth.
According to data from the URA, the median price of resale condos rose 4 percent q-o-q from S$1,020 per sq ft in Q2 2012 to S$1,061 per sq ft in Q3 2012. The median price for new condos, on the other hand, saw an 11 percent q-o-q fall from S$1,149 per sq ft in Q2 2012 to S$1,025 per sq ft in Q3 2012.