Morgan Stanley Predicts Slowdown But Not Collapse for Singapore Property Market
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Morgan Stanley predicts a downturn in Singapore's residential property market after years of price growth, forecasting a 3% price decline in 2023.
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However, foreign buyers account for a small portion of demand, while local buyer demand remains resilient. Household balance sheets are healthy too.
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Supply is still relatively constrained and public housing prices provide a "floor" for private market prices.
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The market was bound to slow after years of growth, but there are no signs of a steep price decline.
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The government has many policy tools to prevent a sustained drop in prices if needed, given all its existing cooling measures.