While supply remains elevated.
Home prices in Singapore are feared to stagnate on back of continued low population growth and high space supply, according to a report by JLL.
This chart shows that the number of new residents has dropped steeply since the government began reducing immigration in 2012. Home demand from expats and permanent residents has dried up as a result.
In contrast, the supply of new residential units remains elevated in 2014-2018.
However, the report also noted that the government could potentially allow for higher population growth in the next five years.
This is because the cut back in population growth was in response to public feedback that population growth since 2006 has outpaced infrastructure and residential development.
Since 2010, the government has invested heavily in infrastructure including mass rapid transit, residential development and healthcare facilities. The bulk of these projects would be completed by 2017.
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