Singapore’s property prices are expected to turn the corner next year, ending a protracted downtrend since late 2013, and to double by 2030, Morgan Stanley says in a note.
This is based on its forecast that home prices will rise by 5 per cent each year on a per square foot (psf) basis from 2018 to 2030.
The bullish outlook came after the latest property curbs prompted the analysts to revisit last year’s forecast that home prices would double by the end of next decade.
“Contrary to common perception, we believe housing supply/demand dynamics remain favourable, and we anticipate a wave of capital inflows into the housing market,” Wilson Ng and his colleagues said. “Housing supply is still below historical averages and set to fall.”
Faster economic growth, the Republic’s attraction as a global hub and demand from buyers flush with cash from en-bloc redevelopments will underpin the housing market, they said.
The bullish outlook came after the latest property curbs prompted the analysts to revisit last year’s forecast that home prices would double by the end of next decade.
