CNA : Property prices in S'pore to continue to move upwards in 2010

Property prices in S'pore to continue to move upwards in 2010
By Rachel Kelly, Channel NewsAsia | Posted: 14 January 2010 2108 hrs

SINGAPORE: The luxury housing sector is expected to lead the way for the Singapore property market this year, according to real estate broker Savills.

Savills is forecasting that prices in the luxury segment will rise 15 per cent in the year ahead.

However, prices in the mass market and mid-end properties could see values move up by about five per cent.

Last year, despite the deep economic recession, private property transactions nearly surpassed the highs of 2007.

Going into 2010, Savills believes the rising trend will continue but at a more moderate pace.

Savills said the underlying demand would come from the completion of the two integrated resorts as well as attractive office rentals which are expected to bring in more overseas investments.

Michael Ng, managing director, Savills Singapore, said: "We do see strong demand because of the population growth. Again a lot more foreign workers are expected to come in over the next 12 months, so I don't think there will be a correction downward in that sense. But certainly not the same kind of growth as seen last year, more moderated, but healthier."

“I think the prices in terms of luxury is still some 20 to 25 per cent off the peak. In terms of the high net worth individuals, I think a lot of confidence is coming back to the market. There is a lot of liquidity around that's pushing them back into real estate." - CNA/vm