Why now might be a good time to buy residential property in Singapore

good time to buy

Why now might be a good time to buy residential property in Singapore.

According to Bloomberg, home values dropped for a ninth quarter in Q4 2015, Singapore’s longest losing streak in 17 years.

The city-state’s property sector also reported its first year-on-year decline since 2008, with the 3.7 percent drop in prices in 2015.

Private home resale prices have also been sliding. Channel News Asia reported that the overall price drop in this segment was about 2.3 percent, per data from SRX Property, which commented that the declines “reflect the current languid market sentiment and the sustained impact of the cooling measures.”

More: Is Singapore property ready to roar again?

Due to the downward trajectory of home prices, however, more properties have become available for buyers who might have hesitated to purchase real estate before.

“People who were previously priced out of the market can afford to buy now,” Alan Cheong, senior director of research & consultancy at Savills Singapore, told the Strait Times.

In an exclusive interview today with Bloomberg TV, Steve Melhuish, CEO and co-founder of leading regional property portal PropertyGuru, said that while transaction volumes have dropped by about 70 percent, Singapore would remain attractive to investors, especially in the long-term.

And although the Singaporean market is expected to bottom out this year, experts still believe that the government would not give up on the cooling measures just yet.

“The government has maintained that it is not yet time to ease the cooling measures and our sense is that it is more likely to be later rather than earlier in 2016,” Ong Teck Hui, national director of research & consultancy at JLL in Singapore.

Singapore-based Asia-Pacific research director at Knight Frank, Nicholas Holt, agreed. “All the noises from the government are that cooling measures are here to stay. I’m sure that behind closed doors they are talking about possible tweaking of some of the cooling measures.”

For now, homebuyers who are on a budget are not complaining about the price reductions.

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This may just be good time to buy residential property in Singapore.