Is the winter in the property market finally over?

Is the chilly private property market heating up? We examine the hotspots to keep an eye on as the private housing market thaws out

After the property market’s persistent slump in recent months, resale prices of private apartments look to be stabilizing, with prices in May echoing those in April. Private apartment resale prices tumbled by 1.2 per cent in the central region last month compared to April, but went up 0.8 per cent in city fringes, and 0.3 per cent in the suburbs.

Figures reveal that prices in May were down a bleak 2.8 per cent from the same month last year – but the indication that prices are flattening out is sparking hope among some analysts that the market could thaw in coming months, bringing about an uptick in property prices.

Here are the reasons for the optimism:

• Though property prices have remained sluggish, the market is still bustling. Resale volumes have been on the rise all year. Last month, about 543 private units changed hands – a 4.2 per cent increase from April and a 33.1 per cent leap from a year ago.

• Forecasts have been mixed with some experts predicting a market revival in coming months, while others caution that the market may continue to plod along for a while more still.

So, if you are feeling inspired to invest in the property market, here are three hotspots to look out for.

New kid on the block: Jurong

With burgeoning development in Jurong Lake District – poised to become the country’s second CBD – it’s time to keep an eye on Western Singapore.

Long dismissed as merely an “industrial” area, Jurong is now shedding its dowdy image.

Shopping centres and a hospital flank the rails of Jurong East MRT station, and hotels are set to rise around the area, while plans for a 90-ha Jurong Lake Gardens housing a new Science Centre were announced last year. Traffic in Jurong will also get a boost, once the Jurong Region Line and the Cross-Island Line are ready. The terminal for the Singapore-Kuala Lumpur High Speed Rail, which will send tourists and workers alike zipping between the two countries in 90 minutes, will be built on the current site of the Jurong Country Club, and is expected to send property prices and demand for homes soaring.

Already, all 738 units in the J Gateway condominium, which overlooks Jurong East MRT station, have been sold. And prices for private apartments in Lakeside have been on a steady climb: 2003 saw Lakeholmz units going for $440 psf; in 2010, prices reached $1,020 for The Lakefront Residences. In a recent interview with The Straits Times, Property firm R’ST Research director Ong Kah Seng said the area could see an up to 10 per cent rise in the price of private residences, with these effects likely to spill over to nearby Bukit Batok as well.

Coming to a station near you: Upper Bukit Timah

While up-and-comer Jurong boasts a mixed bag of new developments, District 21’s new charms are more specific: the upcoming Downtown Line 2 will run from Bukit Panjang to Rochor through the Bukit Timah corridor. When it opens in early 2016, it will give the area a welcome boost in accessibility.

Figures for last month pegged District 21 – which includes Bukit Timah – as a high-earner, with most of the buyers there purchasing units at prices above market value. With property prices in the district still low it may be the right time to act as per R’ST Research’s Mr Ong. Soon-to-be-completed infrastructures, like the upcoming MRT stations, have yet to be priced in by homeowners as market conditions are weak and a substantial number of newly finished projects have already cropped up islandwide, he explains.

Grand old dame: East Coast

District 15’s glory days are not over, even as new properties and hubs of activity continue to sprout up across the island. This upmarket lifestyle and residential district, which includes the Tanjong Rhu area, can continue to depend on the draw of the East Coast Park and a “seafront” lifestyle.

The eastern part of Singapore has a strong, entrenched positioning that seems to be able to withstand the test of time, including challenging property times like the recent slump in prices. Many properties there, like those in the Bayshore area have an illustrious past and seem set to stay sought-after, even with the passing of years.

The area is very popular as a lifestyle location for families as it offers a multitude of options for an active lifestyle. The seafront cycling and jogging track and access to well-connected National Parks is a big draw. This is not likely to change in the future.

So, whether you decide to go East or West, both are ripe for investments!

If you enjoyed this article, you might be interested in Has the Singapore property market turned the corner? and Launch of 99.co’s Commercial Portal – More reach for real estate agents.

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