Home prices to jump by 17% in 2018 to 2021
Blame falling physical completions and ongoing en bloc sales deals.
Colliers International said average home prices in Singapore may rise by 17% over 2018-2021.
According to its property outlook, the projected price increases are caused by higher GDP growth, falling physical completions, and ongoing collective sales deals.
Data from the Urban Redevelopment Authority (URA) also showed the first uptick in private home prices after 15 consecutive quarters of decline.
"We believe that the current wave of collective sales in Singapore will continue rising through 2018 and into 2019 and that prime luxury residential sites will gain favour soon," the firm said.
The current wave may well accelerate price recovery in the near term due to immediate incremental demand from displaced sellers and the large capital gains, Colliers added.