Property prices in Singapore recover after disastrous start to 2009, report shows

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Singapore property prices have increased in the last three months

Residential property prices in Singapore increased 7.4% in last three months of 2009 as the property market made a quick recovery from a nightmarish start to the year, the latest published figures show.

This followed the previous quarter’s increase of 15.8%, a turnaround from a fall of 18% in the first half of 2009, leaving the annual price increase at 1.8%, said the Redevelopment Authority.

Prices of non-landed properties rose by 7.2% in the last quarter and 15.9% in the third quarter of 2009, the figures also show. Apartment prices were up 9.7% more, while prices of condominiums increased by 6.1%.

Looking ahead to 2010 luxury property is predicted to perform well in coming months. According to a report from real estate consultants Savills the sector could see price increases of up to 15% while the mass-market and middle end properties could see values increase by 5%.

‘I think luxury property prices are still some 20 to 25% off the peak. In terms of the high net worth individuals, I think a lot of confidence is coming back to the market. There is a lot of liquidity around that’s pushing them back into real estate,’ said Michael Ng, managing director of Savills Singapore.

However, the majority of people who buy property in Singapore are unhappy about some aspect of the service they get from estate agents, according to a new survey.

Some 80% of all property transactions in Singapore are done through real estate agents and most of these end up with customers encountering some sort of bad service, the report from Ngee Ann Polytechnic has found.

Bad or wrong advice were the most common complaints followed by a failure to get fair prices, they survey found. Overall 77% of respondents from diverse age groups, professional and educational backgrounds, were unhappy, said Nicholas Mak, real estate lecturer.

The survey also showed that 73% felt that more training is needed included a full accreditation system. The government is currently working on a new regulatory framework for estate agents.

‘Some of them also felt that their real estate agents neglected their opinions or suggestions,’ he added.

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