Property Market Transparency Will Improve in Singapore

Property stocks have helped boost Singapore’s STI share index to record high levels this week, and indeed the entire property sector in Singapore has been lifted on the back of news just released by the Urban Redevelopment Authority that it is about to begin publishing comprehensive and unadulterated property market data to aid and abet local and international buyers and investors - meaning that from the 26th of January property market transparency will improve in Singapore.

The news has come at a critical point when arguments between interested parties in the entire real estate market have been escalating.  Those who have yet to enter the market have been accusing developers and agents of talking the market up and those with established real estate interests in Singapore have been accusing late entrants of attempting to talk the market down. 

The need for greater transparency in the real estate market in Singapore can be demonstrated quite clearly with comments, data and opinion received by Amberlamb relating to property in Singapore within the last fortnight.

The Chief Executive of CapitaLand which has its headquarters in Singapore and which is one of the largest listed property companies in Asia stated categorically that the property market in Singapore will continue a period of recovery in 2007 and that the high end could expand by as much as 10% boosted by inward flows of expatriate professional workers and an expansion in the amount of overseas funds active in the market.

The opinions of Liew Mun Leong of CapitaLand weren’t seen in such a positive light by Nicholas Mak a director at Knight Frank – in commenting on the Urban Redevelopment Authority’s plans to release more comprehensive property market data he is quoted as saying that this is a positive move that should ‘allay anxiety that growth in the high end market is causing runaway inflation.’

Looking at high end activity, apartments at Marina Bay and Sentosa which many perceived as grossly overpriced coming in at 2,700 Singapore dollars a square foot have been ripped from the market by active buyers determined to secure their property interests in Singapore. 

Singapore’s National Development Minister was quick to refute media claims that the Urban Redevelopment Authority’s plans to release data comes at a time when the government is attempting to slow speculation activity…and if Savills marketing and business development director Ku Swee Yong has his finger on the pulse then we can believe that there would be no need to slow speculator activity anyway, Mr Ku stated in an interview that ‘speculative activity is only confined to about 500 units.’

Clearly nothing is clear – which is exactly why the Urban Redevelopment Authority is going to begin releasing more property market data including listing the number of approved housing projects, the number of flipped units known as sub-sales to give an indication of speculator activity levels, together with three comprehensive price indices broken down by geographic region and covering 1) the core areas of Districts 9, 10 and 11, as well as Sentosa and swathes of the Downtown Central Business District, 2) The Central Region and 3) Outside the Central Region.

We’re looking forward to analyzing the data and determining whether or not the mass property market is now improving on the back of sound economic development in Singapore, whether the levels of demand from overseas buyers and expatriates is having a significant effect on prices and whether 2007 is a good time to be getting a foothold in Singapore’s residential real estate market. 

Special Reports: Property News for Singapore

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