Diverse Liquidity in Singapore’s Real Estate Market

Liquidity is a key attribute that investors look for in a healthy real estate market like Singapore. However, it greatly varies and should not be taken for granted. There are more condominium listings that are for sale compared to those of HDBs (1.4 to 1) and as many for rent (1 to 1). This, to a large extent, reflects the different structures of the HDB and condominium markets, with the former not available to more mobile non-nationals. As non-nationals are more likely to travel in and out of Singapore, they are also more likely to change their choices of property in Singapore. This ultimately means that exclusivity comes at the price of liquidity. 

That being said, all listings are not equal either. When a market is ‘hot’, the ratio of listing to transacted will dwindle. A higher ratio will indicate either unrealistic price expectations, that revealing a possible price turn or at least a price cap. Analysing the June listings for sale in the different regions reflects strikingly different markets. While there were typically 2-3 listings for a transaction occurring, in line with a normal transaction-listing process time duration, 2 markets in particular were outliers. North region condominiums appear particularly tight, while the Central region seemed illiquid or over marketed for both HDBs and condominiums. 

Source: 8prop.com 

What we think 

Liquidity is both a valuable attribute for investors, as well as an important sign of the market situation. Singapore regions offer different liquidity profiles that need to be carefully taken into consideration. 

Data provided by Real Estate Analytics Pte. Ltd. and 8prop.com 

Data insights contributed by Data Analysts from 8prop.com