Mass Market And Mid-Tier Private Apartments Expected To Do Well This Year

Source : Channel NewsAsia, 21 Mar 2008

Prices of mass market and mid-tier condominiums are expected to remain strong this year.

But those of high-end residential properties could taper off by up to 10 per cent.

And if you’re looking to buy, the market is in your favour, according to Propnex’s CEO, Mohamed Ismail Abdul Gafoore, in a speech to alumni members at the National University of Singapore.

Despite the weaker market sentiments, industry players expect mass market condominiums to do relatively well this year and prices are set to climb but at a more sluggish pace.

And more supply will come into the market as 31,000 new private apartments are completed over the next five years.

Propnex said it’s now a buyers market and home hunters could get good deals.

Mr Mohammad Ismail said: “When we compare the prices of places like Parc Oasis or Woodsgrove condo, the prices today hold and in some instances are even higher per square foot.

“Look at today, the public housing pricing, and the DBSS pricing per square foot. They are already going at almost S$600 if one would want to buy at a mass market price that is less than S$800 with full facilities.”

According to agents, the landed housing space could see modest growth but prices should hold steady.

The outlook is less positive for luxury apartments, which only six months ago were transacted upwards of S$2000 per square foot.

Property agents expect the dust kicked up by the US sub-prime crisis and the rising oil prices to settle by 2009.

They are also confident that the future is still bright for the property market as Singapore has the right fundamentals in place.

Meanwhile, demand for public housing is expected to remain robust this year, providing to prices.

So some agents believe it’s a good time for HDB flat owners to trade up to a mass market private property.