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    Posted January 17, 2014 by
    ChasMunroe
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    Dubai

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    PWC's Year of The Horse 2014 Asia Real Estate Report Confirms Property Guru Predictions.

     

    A recently released report by PWC's Real Estate division certainly didn't shed any new light on the plight of Singapore's real estate market, as Property Gurus had predicted the same at the beginning of 2013.

     

    Channel News Asia's Business Singapore Corporate Briefcase news programme had interviewed Chris Comer, CEO of Castlewood Group, in which Mr. Comer predicted the dip in Singapore's real estate market. Property Guru, one of the larger property portals in Asia reported similar sentiment, including Comer's comments around the same time. Some months later, Barclays made an announcement that they saw this dip being as severe as a 20% drop in value, and now, with the PcW report, those early warnings from the real property gurus have been confirmed as correct.
    PcW's report interviewed some 250 real estate professionals and arrived at a number of conclusions, however they did not change the forecast on Singapore's real estate outlook.

     

    The report did highlight the "hot" market predictions for 2014, listing its Top 5 as Japan's Tokyo, China's Shanghai, Indonesia's Jakarta, Philippines' Manila and Australia's Sydney.

     

    Singapore's main issues seem to stem from an over-delivery of real estate product, with a lesser demand of buyers, and a declining rental demand, especially in residential condominiums.

     

    Daiwa analyst David Lum and Castlewood Group's Chris Comer concur that it is a renters' market for the next couple of years, and that should be followed by a buyers' market once the dust settles.

     

    Barclays analysts have said that they expect residential prices in Singapore could have a correction correction of as much as 20 percent by 2015.

     

    They predict that the inevitable higher interest rates combined with a large over-supply during 2014 and 2015 will cause prices to drop 5 percent in 2014 and fall a further 5-15 percent the following year.

     

    Despite the less than bullish talk, there are still those out there who see a bullish market ahead, believing that the sheer affluence of Singapore as a nation should ride the bucking bronco of the Red Dot's real estate market.
    Chris Reilly, who is the director of Asia Property, Henderson Global Investors has a bullish outlook on Singapore property because of its strong GDP growth.

     

    At this time of year, the streets and stores of Singapore are packed with shoppers, and as we approach the Chinese New Year, Year of the Horse, there is still great hope for prosperity.

     

    Maybe the property focus might shift to the nearby island of Phuket. Although Thailand's only news coverage today is the political unrest, the most popular destinations within this Kingdom are still incredibly popular and unaffected by the goings on in Bangkok. The news coverage suggests the city is grinding to a halt amongst protests and demonstrations whereas fellow correspondents advise that the entire protest and marches etc., are all contained within a few streets, which the bulk of Thai people simply avoid and get on with their normal business.

     

    Phuket is even further away from any signs of uprising, evidenced by extremely busy hotels, packed with tourists, especially within the millionaire areas of Bangtao and Laguna, areas where the five star hotels are overflowing with wealthy well-heeled tourists, seemingly oblivious to the shenanigans across in the mainland.

     

    Phuket recently received the accolade of being China's most popular international vacation island destination, which is a fair feather for the cap considering the size of the Chinese tourist market.

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