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Jun 24, 2010
Prime property prices to rise
<!-- by line -->By Jonathan Kwok
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Flash estimates from the National University of Singapore released in late May showed that its price index for non-landed private homes rose 2.5 per cent in April over the previous month. -- ST PHOTO: NG SOR LUAN
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Prices of luxury property are set to rise 5 to 8 per cent in the coming months, given Singapore's solid economic fundamentals, strong cash holdings by Singaporeans and low interest rates, said a strategist at Swiss bank UBS on Wednesday.
Mr Kelvin Tay, chief investment strategist at UBS Wealth Management Singapore, said that while prices of mid-range and lower-end real estate could hold at current levels for at least the next 12 months, prices of high-end homes could yet see more upsides.
'Luxury properties such as those at Sentosa, Nassim Road and Ardmore Park, where condominiums go for above $3,000 per sq ft (psf), could see further upsides. From now till the end of the year, a 5 to 8 per cent price appreciation is not difficult,' he said.
Mr Tay added: 'The lower luxury segment, at districts 9, 10 and 11, might see some positive flows because of the luxury end moving up but I think that will be muted.'
The luxury-end is 'not a sector that the Government is keen to control', said Mr Tay, adding that the rest of the market is likely to be flat.
Flash estimates from the National University of Singapore released in late May showed that its price index for non-landed private homes rose 2.5 per cent in April over the previous month, reflecting an increase of about 6 per cent since the end of last year.
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Prime property prices to rise
<!-- by line -->By Jonathan Kwok
<!-- end by line -->
<!-- end left side bar -->
<!-- story content : start -->
Prices of luxury property are set to rise 5 to 8 per cent in the coming months, given Singapore's solid economic fundamentals, strong cash holdings by Singaporeans and low interest rates, said a strategist at Swiss bank UBS on Wednesday.
Mr Kelvin Tay, chief investment strategist at UBS Wealth Management Singapore, said that while prices of mid-range and lower-end real estate could hold at current levels for at least the next 12 months, prices of high-end homes could yet see more upsides.
'Luxury properties such as those at Sentosa, Nassim Road and Ardmore Park, where condominiums go for above $3,000 per sq ft (psf), could see further upsides. From now till the end of the year, a 5 to 8 per cent price appreciation is not difficult,' he said.
Mr Tay added: 'The lower luxury segment, at districts 9, 10 and 11, might see some positive flows because of the luxury end moving up but I think that will be muted.'
The luxury-end is 'not a sector that the Government is keen to control', said Mr Tay, adding that the rest of the market is likely to be flat.
Flash estimates from the National University of Singapore released in late May showed that its price index for non-landed private homes rose 2.5 per cent in April over the previous month, reflecting an increase of about 6 per cent since the end of last year.
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