SINGAPORE (Oct 5): Still-buoyant sentiment in the mass market could allow Singapore’s property developers to raise prices, but might trigger further policy tightening on top of the property cooling measures in place, says Maybank Kim Eng.
“Even though construction and financing costs have retreated in recent months, we believe their declines are not sufficient to offset costlier land unless selling prices are raised,” says Maybank analyst Derrick Heng in a Tuesday report.
Heng says land prices have escalated this year following intense competition in recent land bids. He notes that executive condominium plots have sold this year for between 16% and 25% higher than average prices in 2015.
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