Real Estate Market Trends In Singapore

Singapore has a lot going for it. Nearly fifty percent of it is covered by greenery, and through land reclamation it’s growing.

Not many countries can claim a competitive economy, be recognized as a global hub for finance and commerce, or attract investment in technology and innovation.

Today, Singapore also has one of the world’s highest GDPs and consistently ranks well across crucial parameters like safety, healthcare, and education.

Everything seems to be looking up in Singapore, including the real estate market. About 91% of residents own homes, and Singapore is also an attractive option for Asian investors who want vast tracts of property added to their portfolios.

Here are some trends that have occurred in Singapore.

From 2009 to 2013, house prices surged by a whopping 60%. However, it slowed down in 2011, and now it is no longer only a seller’s market.

Prices can even rise two-fold in fifteen years.

The government’s market-cooling measures have ensured that the property boom does not go bust. The property price index (residential) shot up to an unbelievable 38.2%. What followed were rounds of measures, including a limited mortgage term, enhanced cash down payment, the introduction of seller’s stamp duty, and lowered LTV ratios.

Thanks to a proactive government, property prices have only declined 11% from 2013 to date. Now, the government is lifting curbs on debt servicing ratio and stamp duty, among other things.

Demand is on the rise across the property market. Completed property sales increased by close to six times, and uncompleted property sales were up by 93%. Resale sales have also gone up as much as 62%.

Interest rates are crucial to the real estate market’s positive trend. While the lending rate has remained steady for over 15 years, interest rates have fallen over the last two decades, adjusted to account for inflation. An adjustable mortgage extensively impacts the household income of those paying off a mortgage.

The significant presence of foreigners is also helping the real estate market, with foreign investment in the property market a massive 4.1 billion US dollars.

According to Morgan Stanley, properties are predicted to double in value by 2030 and start the rise from next year, so if you plan to invest, begin the research process now. Compare locations and types of property available.

Talk to real estate agents, most of whom will be Chinese. Seventy-six per cent of inhabitants in Singapore are Chinese, so engaging a Chinese tutor and learning the basics of the language will assist you in building a good relationship and getting the information you need before you purchase a property like an Irwell Bank Condo at Irwell Hill Residences.