Mixed fortunes for prime and mass-market housing in Singapore

Prime and mass-market private housing segments in Singapore are moving in different directions. The prime segment is suffering from lack of demand as foreign investors look at other markets, the mass-market segment is still enjoying healthy demand and price increases.

The additional buyers stamp duty is affecting foreign investment in the prime segment. Prime property accounted for 1 to 2 per cent of total developer sales, while foreign investors made up only 4 to 6 per cent of the caveats lodged during the first two months of the year.

The mass-market segment expects to have 4,000 units completed this year and 7,000 units in 2013. An estimated 75 per cent of land sales in the Government Land Sales programme in the second half of 2011 and first half of 2012 are in the mass-market segment according to Today.

Any decoupling of the two segments is expected to be short lived. Demand and prices are currently strong in the mass-market private residential segment, but any further weaknesses in the prime segment could spread to the mass market.



Filed Under: NewsNews by CountrySingapore

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