In the second quarter of 2011, Singapore’s private residential property price index rose 2% q-o-q, after quarterly price increases of 2.2% in Q1 2011, 2.7% in Q4 2010, 2.9% in Q3 2010 and 5.3% in Q2 2010, according to the Urban Redevelopment Authority (URA).
• Non-landed property prices rose by 1.4% q-o-q in Q2 2011, compared to a 1.7% rise the previous quarter.
• Landed property prices rose by 3.6% q-o-q in Q2 2011, after a 3.9% q-o-q rise in Q1 2011.
To restrain the property bubble the government has taken a dual-pronged strategy - increasing land supply, and imposing market curbs. In January 2011, the government executed its 4th round of measures:
• Loan-to-value (LTV) ratios on second mortgages were lowered to 60% of the appraised value of the property
• The Seller’s Stamp Duty was raised, and more taxes on residential property transactions were introduced
In 2010, Singapore’s economy expanded by 14.5%, after experiencing a 0.8% contraction in 2009 due to the global crisis. In 2011, Singapore’s economy is expected to grow by 5.2%, according to the IMF. Due to a slump in manufacturing, manufacturing fell 5.5% in Q2 2011 from a year earlier, after seeing a 16.4% y-o-y growth in the previous quarter.
Property prices in Singapore are still rising by double-digit figures annually, but the price rises have now slowed for seven consecutive quarters. Property prices rose by 10.2% in the year to end-Q2 2011 – a significant from the rise of 38.2% during the year to Q2 2010.
The average price of high-end non-landed private properties was SG$2,269 (US$1,891) per sq. foot. in the first quarter of 2011, according to Savills Singapore, a real estate firm. On the other hand, the average price of super luxury residential homes was SG$3,417 (US$2,848) per sq. foot. over the same period.
Property sales volumes are slowing:
• In June 2011, the total number of residential units sold dropped 25% to 1,182 units.
• In the first half of 2011, there was a 7% fall in residential units sold, compared to the same period last year.
The supply of private homes in the pipeline increased to 71,111 units in Q2 2011, from 61,831 units in the same quarter last year.
The slowdown in house price rises is widely projected to continue:
• Savills Singapore expects property prices to remain stable in the coming months, rising by 1% to 3% in Q2 2011. In addition, overall monthly residential sales will likely stabilize at between 1,200 units to 1,500 units.
• Ong Teck Hui of Credo Real Estate expects the URA’s residential price index to rise by 5% to 7% in 2011.
• Png Poh Soon of Knight Frank has trimmed its forecast to 8% to 10% house price growth in 2011, slower than the earlier projection of 10% to 12%.
The overall figures conceal different price movements per property type.
For landed properties:
• Prices of detached houses surged by 3.3% q-o-q in Q2 2011 (vs. 4.1% in Q1 2011)
• Prices of semi-detached housed rose by 3.9% q-o-q in Q2 2011 (vs. 2.8% in Q1 2011)
• Prices of terrace housed rose by 3.8% q-o-q in Q2 2011 (vs. 3.9% in Q1 2011)
For non-landed properties:
• Prices of apartments rose by 1.8% q-o-q in Q2 2011 (vs. 0.8% in Q1 2011)
• Prices of condominiums rose by 1.2% q-o-q in Q2 2011 (vs. 2.1% in Q1 2011)
• Non-landed property prices rose by 1.4% q-o-q in Q2 2011, compared to a 1.7% rise the previous quarter.
• Landed property prices rose by 3.6% q-o-q in Q2 2011, after a 3.9% q-o-q rise in Q1 2011.
To restrain the property bubble the government has taken a dual-pronged strategy - increasing land supply, and imposing market curbs. In January 2011, the government executed its 4th round of measures:
• Loan-to-value (LTV) ratios on second mortgages were lowered to 60% of the appraised value of the property
• The Seller’s Stamp Duty was raised, and more taxes on residential property transactions were introduced
In 2010, Singapore’s economy expanded by 14.5%, after experiencing a 0.8% contraction in 2009 due to the global crisis. In 2011, Singapore’s economy is expected to grow by 5.2%, according to the IMF. Due to a slump in manufacturing, manufacturing fell 5.5% in Q2 2011 from a year earlier, after seeing a 16.4% y-o-y growth in the previous quarter.
Property prices in Singapore are still rising by double-digit figures annually, but the price rises have now slowed for seven consecutive quarters. Property prices rose by 10.2% in the year to end-Q2 2011 – a significant from the rise of 38.2% during the year to Q2 2010.
The average price of high-end non-landed private properties was SG$2,269 (US$1,891) per sq. foot. in the first quarter of 2011, according to Savills Singapore, a real estate firm. On the other hand, the average price of super luxury residential homes was SG$3,417 (US$2,848) per sq. foot. over the same period.
Property sales volumes are slowing:
• In June 2011, the total number of residential units sold dropped 25% to 1,182 units.
• In the first half of 2011, there was a 7% fall in residential units sold, compared to the same period last year.
The supply of private homes in the pipeline increased to 71,111 units in Q2 2011, from 61,831 units in the same quarter last year.
The slowdown in house price rises is widely projected to continue:
• Savills Singapore expects property prices to remain stable in the coming months, rising by 1% to 3% in Q2 2011. In addition, overall monthly residential sales will likely stabilize at between 1,200 units to 1,500 units.
• Ong Teck Hui of Credo Real Estate expects the URA’s residential price index to rise by 5% to 7% in 2011.
• Png Poh Soon of Knight Frank has trimmed its forecast to 8% to 10% house price growth in 2011, slower than the earlier projection of 10% to 12%.
The overall figures conceal different price movements per property type.
For landed properties:
• Prices of detached houses surged by 3.3% q-o-q in Q2 2011 (vs. 4.1% in Q1 2011)
• Prices of semi-detached housed rose by 3.9% q-o-q in Q2 2011 (vs. 2.8% in Q1 2011)
• Prices of terrace housed rose by 3.8% q-o-q in Q2 2011 (vs. 3.9% in Q1 2011)
For non-landed properties:
• Prices of apartments rose by 1.8% q-o-q in Q2 2011 (vs. 0.8% in Q1 2011)
• Prices of condominiums rose by 1.2% q-o-q in Q2 2011 (vs. 2.1% in Q1 2011)
Analysis of Singapore Residential Property Market »
RENTAL YIELDS
Last Updated: May 02, 2011
Yields in Singapore dropped this year to strikingly low levels, due to soaring residential prices. Yields at 2.2% to 3.3% are fairly worrying. As is usual, yields are higher for smaller sized apartments. We remind readers that these are gross rental yields, i.e., they are calculated on the basis of the offered rent, and are before vacancies, costs, repairs, refurbishments or any other expenses.
Read Rental Yields »
TAXES AND COSTS
Last Updated: Sep 23, 2011
Rental Income: Net rental income earned by nonresidents is taxed at 20%. Property tax, insurance, maintenance and repairs are all deductible from gross rental income.
Property Tax: Property tax is levied at a flat rate of 10% for all properties. Foreigners pay a 10% surcharge.
Capital Gains: There is no capital gains tax.
Inheritance: There is no estate duty as of 15 February 2008.
Residents: Residents are taxed on their income at progressive rates, ranging from 3.50% to 20%.
Property Tax: Property tax is levied at a flat rate of 10% for all properties. Foreigners pay a 10% surcharge.
Capital Gains: There is no capital gains tax.
Inheritance: There is no estate duty as of 15 February 2008.
Residents: Residents are taxed on their income at progressive rates, ranging from 3.50% to 20%.
Read Taxes and Costs »
BUYING GUIDE
Last Updated: Nov 16, 2006
The total roundtrip costs are about 3.15% to 6.45%. Stamp duty is around 1% to 3%, and estate agent’s fee at 3% (2% paid by the seller and 1% paid by the buyer). Because Singapore uses a common database of all property listings, there is no sense in hiring more than one agent. To register the property, there are three procedures, typically done in nine days.
Read Buying Guide »
LANDLORD AND TENANT
Last Updated: Jun 23, 2006
With the passage of the Control of Rent (Abolition) Act in 2001, the law in Singapore became clearly pro-landlord.Rents: The parties can freely determine the rent and the rate of rent increase. Tenants usually pay a security deposit of one month’s rent for every year of lease.
Dispute Resolution: Most landlord and tenant disputes are resolved through mediation or Alternative Dispute Resolution, usually through groups such as the Consumer Association of Singapore (CASE) and Singapore Mediation Center (SMC).
Read Landlord and Tenant »
ECONOMIC GROWTH
Last Updated: Aug 05, 2011
Export-dependent economy
With a population of about 5.2 million in 2010, Singapore has one of the world’s highest living standards, with GDP per capita of more than US$43,000 in 2010, world-class infrastructure, a highly competitive electronics export industry.
Singapore is remarkable in many ways. But it is heavily dependent on international trade, making it vulnerable to shocks in the global economy. This fact was highlighted by the contraction in 1998 due to the Asian Crisis, the global economic slowdown in 2001 and the recent global financial crisis.
The global financial crisis seriously hit Singapore’s export-dependent economy. By Q3 2008, the economy was officially in recession. Economic growth for 2008 was just 1.5%, significantly down from 8.8% GDP growth in 2007, 8.7% in 2006, 7.4% in 2005 and 9.2% in 2004. In 2009, the Singaporean economy contracted by 0.8%. As the global economy improved, Singapore’s economy picked up. The economy grew strongly in 2010, with a real GDP growth rate of 14.5%, according to the IMF.
Due to a slump in the manufacturing sector, Singapore’s economy grew by just 0.5% in Q2 2011 from the same period last year. Manufacturing fell 5.5% in Q2 2011 from a year earlier, after seeing a 16.4% y-o-y growth in the previous quarter.
In 2011, Singapore’s economy is expected to expand by 5.2%, according to the IMF.
The Singaporean dollar is one of the best performing Asian currencies. By end-July 2011, the SGD hit a record high against the US dollar, with the official exchange rate reaching USD1 = SGD1.1992. While the strong local currency helps ease inflation (in fact, Singapore’s Central Bank manages the currency with inflation targeting in mind), some economists fear that it could dampen the country’s export competitiveness.
The country’s inflation rate was 2.8% in 2010, up from 0.6% in 2009, and 6.6% in 2008. In June 2011, inflation hit a five-month high of 5.2% from 4.5% in the previous month. In 2011, consumer prices are projected to rise by 4%-5%, up from the earlier forecast of 3%-4%, according to the Monetary Authority of Singapore.
Singapore is remarkable in many ways. But it is heavily dependent on international trade, making it vulnerable to shocks in the global economy. This fact was highlighted by the contraction in 1998 due to the Asian Crisis, the global economic slowdown in 2001 and the recent global financial crisis.
The global financial crisis seriously hit Singapore’s export-dependent economy. By Q3 2008, the economy was officially in recession. Economic growth for 2008 was just 1.5%, significantly down from 8.8% GDP growth in 2007, 8.7% in 2006, 7.4% in 2005 and 9.2% in 2004. In 2009, the Singaporean economy contracted by 0.8%. As the global economy improved, Singapore’s economy picked up. The economy grew strongly in 2010, with a real GDP growth rate of 14.5%, according to the IMF.
Due to a slump in the manufacturing sector, Singapore’s economy grew by just 0.5% in Q2 2011 from the same period last year. Manufacturing fell 5.5% in Q2 2011 from a year earlier, after seeing a 16.4% y-o-y growth in the previous quarter.
In 2011, Singapore’s economy is expected to expand by 5.2%, according to the IMF.
The Singaporean dollar is one of the best performing Asian currencies. By end-July 2011, the SGD hit a record high against the US dollar, with the official exchange rate reaching USD1 = SGD1.1992. While the strong local currency helps ease inflation (in fact, Singapore’s Central Bank manages the currency with inflation targeting in mind), some economists fear that it could dampen the country’s export competitiveness.
The country’s inflation rate was 2.8% in 2010, up from 0.6% in 2009, and 6.6% in 2008. In June 2011, inflation hit a five-month high of 5.2% from 4.5% in the previous month. In 2011, consumer prices are projected to rise by 4%-5%, up from the earlier forecast of 3%-4%, according to the Monetary Authority of Singapore.
Ref:globalpropertyguide
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