We’ve already mentioned the crazy prices being paid for condos in Hong Kong. It sounds like there’s a pretty wild housing bubble in Singapore, too.
Asia Times: Surging demand for residential units has in recent months seen potential buyers queue for hours before new house openings and anecdotally many have left blank checks with their property agents to fill out to secure their spots in new projects.
Bearish sentiment, unsold inventories and the potential for buyer default risk had caused industry analysts earlier this year to predict that high-end property prices could decline by between 15-20% in 2009. For mid-market properties, the consensus forecast was a 5-10% decline. Singaporean buyers have defied those downcast expectations, with market sentiment turning positive in the second quarter judging by the surprisingly high number of deals closed.
Private sector developers in July launched an all-time high of 2,878 new flats and an astounding 2,767 of those units were sold out within a month. That sales figure smashed by 52% the record of 1,825 units sold set the previous month. Over 43% of the transactions that took place in July fell under the middle- to high-end tier, with prices anywhere between S$1,000 (US$715) and S$1,999 per square foot depending on location. Read the whole thing >