Property prices to jump 10% by end-2018: Report
Singapore property prices are set to jump 10 per cent by the end of next year, according to United States banking giant Morgan Stanley.
Its in-house experts expect private home prices to start rising next month, instead of early next year as it stated in a previous forecast.
The significant upswing in prices would reverse a four-year downcycle after a range of cooling measures were introduced to slow the market.
The bank explained that rising prices, along with developer sales volumes "sustaining a growth rate of more than 50 per cent year-on-year so far this year, suggest a much improved outlook for property developers".
It also cited other positive market behaviour such as a recent surge in collective sales. It said this has displaced some 1,500 home-owners across seven projects - estimated to get average proceeds of $1.8 million each.
"With leverage, this adds up to $13 billion of potential capital inflows that could find their way back into the property market, more than the entire value of developer sales in 2016," it said.
Maybank Kim Eng analyst Derrick Heng had said in a separate recent report that more than $3 billion in collective sales deals have been concluded so far this year, with another 30 properties at various stages of the en bloc process.- THE STRAITS TIMES
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