Luxury property prices in Singapore are set to increase five to eight percent in the coming months, given the country’s solid economic fundamentals, low interest rates and strong cash holdings of Singaporeans, according to a strategist from Swiss bank UBS.
While prices of mid- range and lower-end properties could maintain its current levels for at least a year, prices of high-end homes could experience more upsides, said Mr. Kelvin Tay, chief investment strategist at UBS Wealth Management Singapore.
“Luxury properties such as those at Sentosa, Nassim Road and Ardmore Park, where condominiums go for above $3,000 psf, could see further upsides. From now till the end of the year, a five to eight percent price appreciation is not difficult,” said Mr. Tay.
“The lower luxury segment, at districts 9, 10 and 11, might see some positive flows because of the luxury end moving up but I think that will be muted.”, he added.
Mr. Tay said that the luxury-end is “not a sector that the Government is keen to control”, and the rest of the property market is expected to be flat.
Flash estimates released by the National University of Singapore showed that the country’s price index for non-landed private homes increased 2.5 percent in April compared to the previous month, reflecting a six-percent increase since the end of 2009.