SINGAPORE, Sept 14 (Reuters) – Singapore’s housing market, which has seen prices skyrocket amid frenzied buying, is heading for a correction, as analysts predict a building boom could flood the city-state with new homes by 2009.
Private home prices, which have surged to decade highs in the past 40 months, are holding for now, but analysts say the market is increasingly vulnerable to a sudden downturn in sentiment.
Global property investor LaSalle Investment Management, which has $6 billion of real estate assets in Asia, says Singapore residential property is “fully priced” and will consolidate before appreciating any further.
“By global standards, Singapore luxury apartments are very expensive. At some point, affordability and common sense have to come in,” said Jack Chandler, LaSalle Investment Asia-Pacific Chief Executive Officer.
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