A spate of enbloc sales, coupled with a rebound in the property market at the start of the year, may indicate that Singapore developers will be more cautious in adding to landbanks and about their pricing strategies, analysts say.
Collective apartment sales in the first two months of 2018 totaled over $2.4 billion, almost twice the S$1.66 billion seen in the last peak of the enbloc market in 2007, Nomura analyst Min Chow Sai said. The sales appear to be cutting into the willingness of developers to pay premium prices after three of four deals transacted were sold at asking prices, he said.
There appears to be “fatigue” in the market, said DBS analysts Derek Tan and Rachel Tan. “This slowing momentum is positive, as it means lower upward pressure on final selling prices when projects are launched.” Residential prices are expected to rise through 2018 as buyer sentiment improves with an economic growth outlook in Singapore, they said.