Singapore’s property prices may have largely defied doomsday predictions for a crash, but investors appear reluctant to step back into the market anytime soon.
While 29 percent cited rental income as a reason to buy, analysts are concerned about whether tenants and rents may be drying up
“It has become increasingly difficult to rent out units as the increased completions and slower influx of foreigners is resulting in rising vacancies,” analysts at UOB-KayHian said in a note Monday, citing an 8.5 percent vacancy rate for condo and apartment units. Based on government data, the vacancy rate was around 7.8 percent at the end of 2014, the highest since the end of 2005.
Meanwhile, Sean Tan, a general manager for Singapore at iproperty.com said in a statement with the result of the real estate website’s market sentiment survey that Singaporeans continue to see property as a key investment.
Source – Cnbc