Demand for Singapore’s residential properties picking up

Khalil Adis
Property Report

Demand for residential properties in Singapore is picking up but strong supply means apartment prices are poised to decline 6.8 percent between June and the end of 2009 before recovering 4 percent in 2010, a Reuters poll covering Singapore, Hong Kong and Tokyo shows.

Hong Kong looks the healthiest as apartment prices have rebounded 15 percent this year from a slump.

However, analysts, warn the rally is driven mostly by liquidity and is losing steam as the economy could shrink up 6.5 percent this year based on the government´s forecast.

The poll showed Hong Kong home prices will be flat for the rest of this year but rise 10 to 15 percent in 2010.

Meanwhile, Tokyo residential prices are forecast to drop 10 percent between now and the end of the year and fall 6.3 percent in 2010.

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