Why Singapore will continue to see demand resiliency in the property sector

Low-interest rates and a stable economy are here to stay.

Singapore’s property demand remains "very resilient," supported by factors including low interest rates and a stable economy, National Development Minister Lawrence Wong said.

“Our economy is still growing, so I think demand is still healthy and our assessment is these factors will remain for some time,” Wong, who’s also the second finance minister, said in a Bloomberg Television interview with Haslinda Amin.

He added, “If you look at the property measures, the cooling measures, they have helped to achieve a soft landing in the property market. And you look at the market today, in fact, demand remains very resilient. Property volume in terms of transactions has increased. Not decreased. Increased in the last year - both in the primary and in the secondary market in terms of resale. And I think that is due to a few reasons. Interest rate remains low even though the trend is going up. It remains at a historically low level. And our economy is still stable, it is still growing. So I think demand is still healthy, and these factors, our assessment, these factors will remain for some time. So we have not made any move in the Budget.”

Singapore home prices fell 3 percent in 2016, with prices declining for the 13th straight quarter in the last three months of the year for the longest streak since data was first published in 1975. Still, Singapore house sales last year topped 2015’s tally as a third straight year of price declines stoked pent-up demand from home buyers.

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