Opportunistic buyers pounce on extremely cheap luxury homes in Singapore

Prices will continue dropping this year.

Clever and deep-pocketed buyers are trooping to Singapore’s prime residential districts in search of bargain homes, as prices hover at record lows after several rounds of cooling measures.

The latest Singapore Residential Price Index (SRPI) by the National University of Singapore showed that prices of completed condominiums in central regions dropped 0.6% in December, extending their 0.9% decline in November.

Commenting on the latest SRPI, ERA Realty said that properties in the Central Region was the main contributor to the price decline because buyers are taking advantage of low property prices.

“This might be because buyers are swooping in on pockets of opportunities in the high end property segment, where some owners are letting go of their properties at very attractive prices,” said ERA Realty.

ERA added that the sustained price decrease in the private property market will probably continue well into the new year, with multiple headwinds buffeting the property market.

Apart from the effect of cooling measures, negative economic data and the stock market downturn could possibly have affected buyer confidence to some extent, ERA Realty said.

“As a result, we expect that prices will continue their decrease well into 2016,” ERA Realty noted.