City View

Get the Facts About Singapore Property Market

Wary investors, listen up: It is time to get the facts about Singapore’s property market. Gems are hidden among dust, dirt and rubble. Moreover, the same can said of the real estate market of this city.

In a dark economic picture, beauty remains in the eye of the beholder. This adage holds true in Singapore as it seems a treasure hunt promises the only hope of uncovering genuine investment opportunities in this city.

Previous years brought governmental property cooling measures to an overheated real estate market in the second most expensive housing market in Asia. The Additional Buyers Stamp Duty (ABSD) remains intact. Moreover, the Singaporean government continues in its reluctance to lift it for fear of a rebound.

The prediction and threat of a financial downturn loom over investors as well. Taking courage in the face of a bleak storm may be the very way to turn this thing around. Let’s consider what this all means for the Singapore property market in 2016.


Housing Prices Drop

Though Singaporean property price drops slow their pace in 2016, they continue to inch downward. This year, the estimated price decline shifts from its current two percent status to 5 per cent. Concern arises that this pace continues too far, too fast. Caps placed on residential debt-repayment seek to curb the effects.


Supply Exceeds Demand

It is a basic economic principle: When supply exceeds demand, the buyer has the advantage. Investors are looking to call the financial shots; your time is now.

High-quality assets appear in this buyer-driven market at discounted prices. Also, interest rates remain low. The theory of supply and demand opens opportunities for buyers through a knowledgeable real estate salesperson.


First-Time Buyers Reap Bargains

Home values dropping by nine percent since 2013, leave homeowners at a loss. However, this unfortunate circumstance bodes well for first-time buyers. The gems await discovery. Lower prices get new investors into a home quicker than ever before.

Without a home to unload, first-time buyers gain the freedom to grab a home or condo property previously believed to be out of reach. Thanks to softening prices these homes are a reality. Again, an experienced real estate salesperson offers the best know how in this market.


Location Gains Traction

Investors looking to take advantage of opportunities and possibly paint a new picture in Singapore need to consider more than price. Location boosted property value when amenities and nearness of public transportation included.

An inexpensive price alone does not equate to a wise investment. This concept may be especially true in condo investment. Tenants retain the right to be picky and choose properties with amenities and locations of their choosing.


High-End Housing Status Holds

Despite dropping home prices and looming financial threats, Singapore retains its status. Ranked second to Hong Kong in the region as the most expensive place to purchase a luxury home, this city holds her own, according to a 2016 Knight Frank LLP’s wealth report. While dropping several ranks overall, Singapore fights for her honour in the region.


Investments Rise

While the number of investments continues on the decrease, the value of investments proves to rise. Business leaders believe this holds the promise of encouraging other investors to step into the light and breathe life back into the Singapore economy again.

With an influx of investments, the residential property market could also see stimulation and reap benefits.


Developers Hopeful

While housing sales have dropped to half of their 2013 numbers, developers look for brighter skies. They remain confident that the Singaporean government will not just lift cooling measures this year but calibrate them. This action would bring the market back at a safe pace, allowing the city to flourish.


What to Do?

Get in on the action. Contact a real estate salesperson. Today is the ideal time to invest for the long-term in the Singapore property market. Residential properties still gain an annual yield of two to three percent.

Over the long haul, when the market comes back, you will be sitting confidently in your investment. Alternatively, you could remain paralysed in your hesitation. However, that will just land you in the midst of the heat when the cooling measures lift. Be proactive. Get a jump start, start looking at condos for sale in both primary and secondary market.

I can help you find your golden opportunity in Singapore. Whether a home or a condo, first-time buyer or seasoned investor, young or old, the potential to invest in this city awaits you.

To help you navigate the Singapore property market and find your hidden property gem, contact me today or call me at 9456 7022.