On Monday 28 November 2011, 21:37 SGT
Singapore's property sector may soon face difficult times, as Standard Chartered Bank's latest report has stated a bearish outlook for the market.
According to the bank's analysts, prices and rents of residential properties in Singapore will drop by 30 percent over the next three years.
This will be quite a setback, given that prices rose 18 percent in 2010, as Singapore recovered strongly from the global financial crisis. Prices soared a further six percent in the first three quarters of this year.
In addition, the bank expects some problems ahead, such as the unprecedented supply of completed homes coming on-stream and slower population growth due to stricter immigration policies.
"We expect lower population growth and high completions to induce a 20-30 percent decline in home prices in 2012-2014," said the StanChart analysts. "When residential prices went into a four-year downcycle from 2001, residential developers traded at 0.6-0.8 times price-to-book ratio."
The gloomy outlook came after property developers reported subdued results for the third quarter this year, attributed to lower contributions from their development units.
For the latest property news, trends, resources and expert opinions, visit our property news section. Home buyers, sellers or property renters looking for a Singapore property may like to visit
http://www.propertyguru.com.sg today.
Looking at the above article , do you guys think it is better to push back our JB purchase ?
If SG property is down 30% , does it make better investment than JB leh ?
Was thinking of adding a JB house ,but if SG properties down next year by 20 - 30 % , I think we should get better pricing in JB too ?