We could see prices bottoming by year-end or early next year if sales volumes continue to strengthen
The strong bids for the Toh Tuck Road site on April 11 and high developers’ sales numbers unveiled by URA on April 17 are more signs that the Singapore residential market may be turning the corner, says JLL.
According to JLL, signs of recovery began last year with the luxury residential sector when prices bottomed out in 3Q2016. Based on its basket of luxury properties, JLL says prices of luxury properties fell 18.3% in 3Q2016 from their peak in 2013.
Suburban condo rents are increasingly under pressure in the current market, though for new completions on the city fringe, rents appear to be holding up.
With more choices, tenants are typically relocating to central locations, often preferring newer condos within their affordability range.
"Suburban projects, and projects which do not have large-scale facilities, may lose out in the chase for tenants. Older developments are also losing out tenants to newer developments," said ERA Realty's key executive officer, Eugene Lim.