OnDemand WTP Pricing Research

Developers lose pricing power after en bloc fever | Singapore Business Review

Prices are expected to grow 0-2% for homes on expensive land bought during the en bloc cycle.

With muted price growth expectations for residential properties in 2019, no near-term catalysts for developers with large local market exposure are expected, according to a report by RHB Research.

Urban Redevelopment Authority’s (URA) Q1 2019 flash estimates showed that overall property prices declined 0.6% QoQ following a 0.1% QoQ dip in Q4 2018. The high-end segment saw the maximum decline of -2.9% QoQ, with RHB attributing its susceptibility to cooling measures to a high proportion of purchasers being mainly investors and foreign buyers.

With more than 50 projects in the launch pipeline, adding an estimated 19,139 units, buyers will have plenty of choices. However, this will limit developers’ pricing power.

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Developers lose pricing power after en bloc fever | Singapore Business Review.

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