SINGAPORE: Despite signs that sentiment has been weighed down by global credit woes, property consultants are still keeping to a bullish outlook for the Singapore property market. They are expecting to see further upside in prices of as much as 50 percent over the next 6 to 18 months.
This is despite the industry taking a slight breather and a general cautionary mood among investors due to the US sub-prime mortgage crisis.
Demand in the mid-tier and mass-market segment is seen as coming from those who need replacement units.
Nicholas Mak, director of Consultancy and Research, Knight Frank, said: "Some of the people whose project has gone en bloc successfully will be looking for replacement properties and as prices in the high-end market have skyrocketed, they will perhaps buy properties that are in the mid-tier or in the mass market."
Those investing in entry-level and mid-tier condominiums are mainly Singaporeans and permanent residents.
Prices for mid-tier condos have, so far this year, climbed some 15 percent - while those for entry-level properties have jumped by 12 percent.
A new development targeted at heartlanders has just been launched at Ang Mo Kio.
And consultants said they expect the units to be sold for S$1,100 to S$1,200 per square foot.
"Although it is in the HDB heartland, it's in a very good location – very close proximity to the Ang Mo Kio MRT station and the Ang Mo Kio hub which has a major retail mall," said Mr Mak.
Data out from the Urban Redevelopment Authority (URA) on Monday showed that almost 1,900 new residential units were launched last month.
The total number of new units for the whole of the third quarter is expected to be around 4,000. - CNA/so
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