The smart money will be in Singapore property as the Singapore
dollar appreciates and investing in Malaysia will see the investments value get
depreciated year in year our as the Ringgit have been on a depreciation mode because
government is cash strap and a weaker Ringgit brings in more Ringgits on the
sale of Oil and Gas produce.
SINGAPORE PROPERTY PRICES TO DOUBLE BY 2030: MORGAN STANLEY
The protracted downtrend in Singapore’s property market is poised to end next year, with home prices set to double by 2030, Morgan Stanley said in a Wednesday note.
“Property market bears expect slower population growth, an ageing population, and a structural growth slowdown to weigh on the long-term property market outlook,” the note said. “We disagree and believe home prices will double by 2030.”
That implies a 5 to 6 per cent increase per annum and would mark a reversal from a long downtrend in home prices.
In the first quarter, overall private home prices fell 0.5 per cent on-quarter, the 14th straight quarter of declines. This time around, however, the bulk of the decline was in relatively small landed property segment, while non-landed prices were steady.
The city-state’s housing prices surged more than 60 per cent from 2009
through 2013, propelled by rock-bottom global interest rates and quantitative
easing in developed economies, even as the government enacted a series of
cooling measures from 2011 to prevent a bubble from forming.
But in early March, the government scaled back some of the curbs, including lowering the seller’s stamp duty and shortening the minimum holding period to avoid it.
Morgan Stanley said that was a signal the property market was closer to the
bottom, which should improve buyer sentiment.
The bank expected sales volume would surge this year, with the increases in transaction volumes to spur prices higher next year.
Supply was also set to decline, the bank noted. From 2014-16, private residential supply added around 20,000 units a year, twice the historical average since 1990, it noted. But in 2017-18, supply levels were set to fall 40 per cent each year, it said.
The property market in Singapore can be closely watched for economic and investment implications.
Morgan Stanley noted that around 91 per cent of Singapore’s resident households own their homes, with residential property around 45 per cent of total household gross assets last year.
Additionally, Asian investors tend to have large allocations to property in their portfolios.
– Asiaone
“Property market bears expect slower population growth, an ageing population, and a structural growth slowdown to weigh on the long-term property market outlook,” the note said. “We disagree and believe home prices will double by 2030.”
That implies a 5 to 6 per cent increase per annum and would mark a reversal from a long downtrend in home prices.
In the first quarter, overall private home prices fell 0.5 per cent on-quarter, the 14th straight quarter of declines. This time around, however, the bulk of the decline was in relatively small landed property segment, while non-landed prices were steady.
But in early March, the government scaled back some of the curbs, including lowering the seller’s stamp duty and shortening the minimum holding period to avoid it.
The bank expected sales volume would surge this year, with the increases in transaction volumes to spur prices higher next year.
Supply was also set to decline, the bank noted. From 2014-16, private residential supply added around 20,000 units a year, twice the historical average since 1990, it noted. But in 2017-18, supply levels were set to fall 40 per cent each year, it said.
The property market in Singapore can be closely watched for economic and investment implications.
Morgan Stanley noted that around 91 per cent of Singapore’s resident households own their homes, with residential property around 45 per cent of total household gross assets last year.
Additionally, Asian investors tend to have large allocations to property in their portfolios.
– Asiaone
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