URA’s research showed average capital values of luxury and super luxury apartments increased by 5.3% in Q2 2010. Rentals of private residential properties increased by 4.7% in Q1 2010, compared with the 0.6% increase in the previous quarter.

2.

At the end of Q2 2010 there was a total supply of 61,831 uncompleted units of private housing from projects in the pipeline. Approximately 53% of these are yet to be sold.

In the leasing market, activity is expected to pick up in 2010 with rents potentially registering a growth of 5% to 10% during the year.

4.

Foreigners are permitted to buy into the Singapore residential property market without restriction, except for property with land, whereby approval is required from the Singapore Land Authority (SLA). There are few foreign exchange restrictions, and non-residents can now borrow up to 80% of the property finance locally. In 3Q 2008 Knight Frank report, the proportion of foreign buyers islandwide continued to decline representing 21.6% fo all transactions. The Mercer 2008 Quality of Living Survey attests to the desireability of Singapore as a place for expatriates to live, which has a positive impact on the Singapore property market.

The residential property price index recorded an increase of 5.6% quarter-on-quarter in 2Q 2010 – slightly higher than the previous quarter’s 5.3% increase. Despite the moderation, the rate at which prices escalated in 2009 has brought price levels to just 8.8% below their peak in 2Q 1996 and 6.8% below the more recent peak in 2Q 2008.

One of the strengths of the Singapore residential property market has been the high-end properties located in the prime areas. However a report by global Realtors, Cushman & Wakefield is predicting a fall in prices of apartments and condos in Singapore city’s CCR (Core Central Region). The report states that it is unlikely to see another peak period within the next four years. The forecasted fall will depend on the growth of the economy of Singapore but expected drops are estimated at 8% and 17% respectively.

As one of the most attractive cities to live in Asia, Singapore real estate investment is popular among global investors. Mercer Human Resource Consulting rates Singapore as the world's 28th most livable city in its 2010 Quality of Living Survey. It is the highest ranking Asian city in the survey. To support real estate investment, Healy Consultants offers relocation services including tours of local services, Singapore schools, supermarkets, transport etc. Under the same survey, Singapore want ranked number one as the city was the best infrastructure in the world.

Some considerations investors should take note of in relation to the Singapore residential property market include:

i) Investors expecting capital appreciation in the Singapore property market should note that 90% of Singaporeans already own homes and therefore are in no hurry if prices are not attractive;

ii) Even at the peak rental levels earlier in 2008, Singapore rental yields average only 4 to 5%, with long-term rental yields expected to face further downward pressure due to increased housing supply.

For further information on the Singapore residential property market, call our Singapore office at (+65) 67350120 or contact us at email@healyconsultants.com