First in History, Properties Singapore slumped to the lowest point

KOMPAS.com – Urban Land Institute with input from PricewaterhouseCoopers (PwC) LLP released a survey of relevant markets the most attractive properties in Asia next year.

This survey is launched every year to see the projected development of investment property in a number of cities .

in the survey, Singapore’s position declined sharply in the ranking of 21 compared to the previous projection in 11th place.

“this is the problem of overcapacity of office space, the drop in retail sales, and housing prices the slump in five years, “wrote the survey.

A combination of a slowing economy, excess supply, a decline in demand and the fall in housing prices for 12 consecutive quarters have created
” storm “is perfect for Singapore.

Today, Singapore is the only market in Asia Pacific which suffered from a decrease in the property cycle.

Rent office in downtown Singapore slumped 3.5 percent in the second quarter 2016. Restrictions five consecutive quarter contributed to the decline in rental rates.

the occupancy rate is also affected by shrinking demand for downsizing of the financial sector, especially those in foreign banks.

Additionally, with 3 million square feet of new office space is currently this, the rental market is likely to remain under pressure in the near term.

Meanwhile, the value of capital also decreased. In the midst of this darkness, a lot of fund manager looking for entry points and positive indicators.

One of them, the sale of the landmark Asia Square Tower 1 June 2016 has affected the price benchmark.

Comments from various sources indicate, there are many who would defend the action of wait and see in the Singapore market.

“(Fall) is too early. I think you could probably wait a year or more before it reaches the point where you may buy a property with a convenient,” said a speaker from the survey.

When compared historically to the survey, Singapore has never been ranked in the bottom 20. in 2007-2013, the Singapore’s position even always ranked in the top 5.

Top position Singapore namely at number one, occurred on projected 2011-2012.

in 2014, Singapore began to descend to the rank of 7. the decline in this position took place in 2015 to 9th and 11th 2016.

properti.kompas.com

Sign up here with your email address to receive updates from this blog in your inbox.