Time to consider possibilities in the West

  • Economy in Singapore is heading for its worst recession since independence, with GDP forecast to decline by 7% to 4% in 2020.
  • Considering the economic uncertainties, the demand in the property market will go down and this will have direct effect on property prices irrespective of the relief measures taken by the government of Singapore. However, price correction will provide a chance as long-term fundamentals remain unchanged.
  • The prices of non-landed private homes in the west region of Singapore have been growing since Q3 2018 on the back of multiple project launches. The prices went up by 14.9% from Q2 2019 to Q1 2020 for the west region of Singapore while the rate of private homes grew only by 2.8% in sub-urban areas during the same period.
  • Over the last ten years, the prices of West Region have exceeded the overall suburban prices, which rose at 7.1 percent year-on-year, compared to the suburban market of 4.4 percent.
  • The median price for private homes in the west have reached to S$1,234 per square foot (psf) while the median price for private homes in the suburban area is S$980.50 psf.
  • Optimism about the Jurong Lake District can be a factor behind the growth in price in the west region.
  • Rents in the western region also started to increase from 2019 after a slight decrease in final days of 2018. As of now, the median rent for private homes in the west region is S$2.77 psf per month in Q1 2020.
  • Also, the rental transaction volume has went up due to the new product launches. The growth in rent and transaction volume points out to a health rental market in the region.
  • Employment will boost in the longer term in the west region of Singapore owing to the development of Projects like Woodland’ regional centre, Pungol lake district, Jurong lake district, etc.
  • The potential developments have started gaining traction and some government institutions have already moved or are planning to move to these locations.
  • It is estimated that around 300,000 new jobs will be created as the Tuas mega port becomes fully functional along with Jurong Lake District and Jurong Innovation District.
  • The west region of Singapore is expected to become a crucial economic hub considering the amount of on-going development and infrastructure improvements.

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