Despite prices in the high-end property segment in Singapore falling in 2016, market watchers and experts have cautioned upgraders that prices could decline further.
According to figures from the Urban Redevelopment Authority (URA), values in precincts such as the Central Business District (CBD) to the luxury residential zone of Tanglin and Orchard Road – have declined by 1.2% over year 2016, which is still performing better than the rest of the regions in Singapore.
It was added that property prices in the city fringe and suburban regions have fell by 2.8% and 3.4% respectively in 2016.
The high-end property market has in fact recorded the largest surge in transactions – up by 48.7% from 2015, beating the rest of the regions by a fair bit (27.2% increase in the city fringe region and 3.7% in the suburban areas).
Investors are likely to be lured by Wee Cho Yaw’s 2 major acquisitions in January 2017, which could suggest that the high-end residential property segment has probably reached its bottom.
Earlier in the month, Kheng Leong (a private real estate arm owned by Mr Wee) purchased 45 units at The Nassim for a staggering S$411.6 million from property developers CapitaLand.
Adding on to that feat, property group UOL (chaired by Mr Wee) acquired a freehold residential site at 45 Amber Road for S$156 million.
Market watchers have mentioned that the deal at The Nassim has set a new record low within the precinct and it is a good time for property buyers or developers with deep pockets to go in for en-bloc or mortgagee deals as prices have soften significantly.
As prices are still expected to decline further (at a slower pace), experts have also noted that property sellers (who are looking to buy new homes) may be reluctant to lower the selling prices of their properties.