Credit Suisse sees the Singapore property market recovering in 2021, with price increases of approximately 4% to 6%, just slightly below GDP forecast of 6%.
In 2020, the investment bank saw broad-based asset appreciation given the relative market stability and good control of COVID.
Underlying demand and improving sentiment is expected to support a 27% increase in 2021 volumes to somewhere similar to the last 10 year average.
Property prices have continued to increase through the COVID-19 pandemic, unlike during the global financial crisis of 2008.
Price in other asset classes such as car COE prices and country club memberships have also shown an upward trend through the pandemic.
Expect volumes to go up 27% in 2021. This is a good sign for the market considering that price increases typically follow an increase in sales volume.
An expected 7,326 units of new condominiums is to be launched in 2021, above 2020’s level of 4,898 units.
For buyers that are in the market to look for a new unit, this may be a good chance as there’ll be more variety and developers are likely to price the units more competitively to sell them faster then others.
Most of the new units will be launched in the core central region (3,191 units), followed by outer central region (2,955 units) and rest of central region (2,745 units).
Most of the units in the core central region are proportionately expected to be freehold in nature.
Those in the OCR and RCR regions are expected to be leasehold.