Singapore market less preferred by Hong Kong property investors

35,564 uncompleted units still unsold.

According to IP Global’s latest Property Market Barometer, Singapore and Hanoi are listed as less attractive investment cities for Hong Kong property investors as waning demand, record high supply and falling prices continue to make investors vigilant.

Though the Singapore market currently seems stable, there are reasons to be concerned about the prospects for real estate investment in the city.

Based on statistics released by the URA, private residential property prices increased by 0.6% in the first quarter of 2013, reflecting a significant moderation in the 1.8% price growth recorded in the previous quarter – likely a reaction to the recently introduced market cooling measures.

More concerning is the issue of oversupply, with uncompleted units now numbering 88,623 (35,564 of which remain unsold). An additional 11,938 units are in the pipeline, making for a total of 100,561 units, the highest such figure recorded since data was first made available in 2002.

This record-high supply coupled with waning demand means Singapore is likely to see very little price appreciation in the foreseeable future, if any.