Morgan Stanley (NYSE:MS) Says Property Prices in Singapore Will Double By 2030

singapore property prices

The property market in Singapore has been down for a while now. But that is going to change soon, feels Morgan Stanley (NYSE:MS). This is in stark contrast to what many analysts and property market observers are saying currently.

In a note, Morgan Stanley says that it is going to be, in fact, a steep climb from here on. According to them, property prices in Singapore are expected to double by 2030, because of the high demand for single-person homes that will drive up the sales substantially, thus pushing up the prices. According to estimates, one in five Singapore will be occupied by only one person by 2030.

Property Prices To Go Up 5-6% Every Year

If it goes up by that much, then it would mean that the realty prices should climb by about 5% to 6% every year, which is an impressive turnaround as the downtrend has lasted for several years.

The note said, “Property market bears expect slower population growth, an aging population, and a structural growth slowdown to weigh on the long-term property market outlook. We disagree and believe home prices will double by 2030”.

Singapore’s housing market typically goes through up and down swings. For instance, between 2009 and 2013, housing prices had surged by more than 60 percent, thanks to low interest rates, and quantitative easing in developed economies. To prevent a bubble, the government imposed many cooling measures, which brought the price down in this city-state. As a result, the prices fell for 14 straight quarters.

Property Prices in Singapore Have Bottomed Out

However, last month, the government scaled back many of these curbs, which should improve the sentiment of the buyers. The minimum holding period was shortened. Stamp duty for the seller was lowered. Morgan Stanley (NYSE:MS) notes that the pace of decline has already slowed down. The prices have probably bottomed out, and are thus, expected to rise steeply soon.

There are signs that buyer sentiment is picking up. Park Place Residences, a recent launch, for instance, were able to sell phase one entirely in just a day.

Many Asian investors also pour money into Singapore properties. This is going to increase once the market picks up. So there are clear signs that this is the right time to invest in the Singapore realty market. Prices are low and expected to climb steeply. Good news for property buyers and investors!