Is Singapore's property market headed for a faster-than-expected recovery?

The price uptick in the CCR is promising.

Has Singapore’s property market finally hit bottom? Analysts say that the unexpected increase of prime home prices in the first quarter might indicate that the property market may be recovering sooner than expected.

“This rate of increase can be considered to be moderate, but it may signal the beginnings of a market recovery,” says Darius Cheung, Co-founder and Chief Executive Officer, of online startup and property portal 99.co.

An analysis by 99.co shows that since 2004, homes in the Core Central Region (CCR) tend to be the first to recover from a downturn ahead of peripheral areas.

“Market behavior and corresponding rise or fall in prices in the CCR region is indicative of how property in Singapore is expected to perform. CCR is rebounding and we expect the rest of Singapore’s outer regions to step in and follow suit as prices start climbing steadily,” Cheung said.

However, CBRE analysts Desmond Sim and Han Huan Mei noted in a report that it might be too early to say that the market is finally on its way to full recovery.

“While it is too early to claim that prime home prices have bottomed out, CBRE Research is of the view that the market's acceptance that the government would not lift measures in the short term probably nudged buyers who are in two minds to decide on a purchase," they said.