-April 21,2008. HOME section of The Straits Times.

from http://singaporeluxuryhomes.biz/ :
"In 2007, average property prices have gone up 31%. For prime luxury properties, we are outperforming the market with more than 50% gain. Looking forward in 2008, we expect prime luxury property prices to rise 10%-20% year on year. Singapore was recently ranked one of the Asian cities with the most expensive properties. Rents are continuing to rise rapidly and thus providing better yields for investors."



rising property prices

WHY

"commodity price rises have brought wealth"
"rising affluence have also generted another market for 2nd homes and holiday homes"

based on YED, increase in income >> increase in the demand for normal goods >> more people buying houses, wanting to own their own properties, and 'upgrading' (ie moving into larger houses) some of them even owns more than one house now.

"prices grew strongly in the emerging economies, esp China and central and eastern Europe"

emerging economies >> developing at fast pace >> economic booms >> increased incomes >> more comfortable lifestyles and demand for luxury goods



from http://singaporepropertyfrontiers.com/2008/03/27/luxury-home-prices-to-fall-32-by-2010-nomura/ :

Source : Business Times - 27 Mar 2008

"As a result, mass residential prices will remain flat in 2008, climbing just 0.5 per cent, Nomura believes. And as new supply is completed in the prime districts, it expects prices to fall 10.3 per cent in 2009 and 10.1 per cent in 2010 - a total fall of some 19.4 per cent from the 2008 peak."

"Residential rents are likely to remain firm in the short term, given the low vacancy rate, Nomura reckons. But rising new supply is likely to cap rental gains from the second half of this year"

"Average rents are expected to peak in 2008...But with supply on the rise, rents will ease."