Experts believe that Singapore property stocks are set to gain the most this year, their best rally in five years. According to Bloomberg, there is a positive sentiment toward the property market in Singapore, which comes after the country eased housing curbs in March.
The move led to an increase in home sales, the highest recorded in almost four years of continued slump. Desmond Loh at JPMorgan Asset Management added that vacancy rates are projected to fall in the next few years, which would benefit developers who just bought new lands to build new properties. An improvement in the export demand also contributed to the optimism for the home sales in Singapore, as it boosts investor confidence.
The report said 60 percent of the top 10 performing stocks on the Straits Times Index this year are developers and property trusts, including City Developments Ltd. and UOL Group Ltd. City Developments jumped 2.5 percent at the close on Monday while UOL Group surged 2 percent. Moreover, about 42 real estate stocks in the country have seen a 17 percent surge so far this year.
“We’re in a recovery phase at this point. There are a number of macro-prudential measures that are still weighing on the real estate market but we are definitely up from the bottom we saw early last year,” said Sean Gardiner, an equity strategist at Morgan Stanley in Singapore.
Meanwhile, the recovery in Singapore’s property market is not yet consistent. House prices and rental rates are still falling and developers are buying lands at high prices, per CNBC. Winston Lee of PropertyGuru explained that the indicator of a bounce in a property cycle actually begins with the volume and not with the price.
In the first quarter of 2017, developers sold 28 percent more units from the previous quarter’s 2,316 units sold. A volume bounce back boosts confidence among developers that the Singapore’s market might have bottomed out, Lee added.
When new travel fees fly under the radar
In the travel industry, new fees and restrictions tend to have one thing in common: they are introduced without fanfare...
What would happen if Venezuela and the Middle East couldn’t access oil?
The United States continues to pump out record amounts of oil.
Trump’s chances in the 2020 election
How will the US economy fare in the upcoming 2020 presidential elections?
What to expect from the IRS’ revised cryptocurrency guidance?
Another year, another batch of investors left in the dark.
The silver lining in pursuing foreclosed homes
Foreclosure is one real estate issue turning the buying and selling process messy.
- Business4 weeks ago
Why big data and machine learning is the future for commercial real estate
- Sponsored4 weeks ago
What the second half of 2019 holds for Bitcoin in Africa
- Crypto4 weeks ago
Using blockchain in high fashion
- Sponsored3 weeks ago
4 misconceptions retailers still have about sales analytics