Singapore has a lot going for it. Nearly fifty percent of it is covered by greenery and through land reclamation it’s growing. Singapore is a vibrant competitive economy, a global centre for finance and commerce and one wired for technology and innovation. Singapore also has one of the highest GDPs in the world, and has consistent high rankings 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. Singapore is also an attractive option for investors from Asia who want huge tracts of property added to their portfolio.
Here are some trends being seen:
- From 2009 to 2013, there was a whopping 60% surge in prices of houses. In 2011, it slowed down and now it is no more only a seller’s market.
- It is expected that in 2018, the downtrend being seen in the world of property will end, with an increase of 5 or 6 % per year.
- Prices can even rise two-fold in fifteen years’ time.
- Market- cooling measures implemented by the government has ensured that the property boom seen till a few years does not go bust. It was put in place after the worldwide economic crisis from a few years ago. The market was blazing hot and the property price index (residential) actually shot up to an unbelievable 38.2%. What followed were 10 rounds of measures, including a limited mortgage term, enhanced cash down payment, introduction of seller’s stamp duty and lowered LTV ratios.
- From 2013 to this year, thanks to a proactive government, the decline in property prices has only been 11%.
- Now, the government is lifting curbs on debt servicing ratio and stamp duty, among others.
- This year, there was a 2.77% drop in private residential property index. This isn’t new, it being the 13th continuous drop year on year. All told, the price has actually fallen by 3.45 %.
- There is a continuing fall in the price of houses, but that is being offset by a rise in demand for houses.
- The rise in sales is partly attributed to better, more affordable prices of property and decent interest rates.
- Demand is on the rise across property. Completed property sales went up by close to six times and uncompleted property sales were up by 93%. Resale sales have also gone up 62%.
- Transaction numbers are getting better, market segments have slow increases and seem braced for impact. This has helped in the sales of private homes too.
- Interest rates are crucial in the real estate market trend being so positive. While the lending rate has remained steady for over 15 years, interest rates have fallen over the last two decades, adjusted as they are keeping inflation in mind. An adjustable mortgage has massive impact on the household income of those paying off a mortgage.
- Rents aren’t seeing an appreciation, except in the popular parts of the country.
- The large presence of foreigners is also helping the real estate market, with foreign investment in the property market a massive 4.1 billion US dollars.
Properties are predicted to double in value by 2030 according to Morgan Stanley and start the rise from next year so if you plan to invest, start the research process now. Compare locations and types of property available. Talk to real estate agents, most whom will be Chinese. 76 percent 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.
- Technology8 months ago
The Future Is Now: 9 of 2019’s Most Spectacular Home Automation Upgrades
- Management4 months ago
Top 7 Reasons Why You Should Hire a Property Manager
- Legal1 year ago
How to Deal with Tree-Related Neighbour Disputes in Australia
- Investment7 months ago
Toughest Rentals Rules, Landlords on Notice
- Investment11 months ago
Investors Compare Residential To Commercial Property
- Buy6 months ago
Who Is The Real Estate Agent Working For?
- Management4 months ago
Healthy Homes For All!
- Investment5 months ago
Should You Start Investing in Rental Real Estate?
- Sell1 year ago
The Ultimate Guide to Selling Your House Fast
- Buy2 years ago
3 Great Settings For Your New Home