Learn how the Singapore Property Market Affects You and Your Family
The Singapore property market is in flux, but the trends do show promise. When the Singapore real estate market peaked in 2013, many people had reported over leveraged without considering the possibility of a hike in bank interest rate. It put the Singapore government to put programs into effect to create more affordable housing.
Now that a few years have gone by, the property market is starting to make a recovery. You can find the right property with an agent like Dylan, who will lay out all the information about how the housing market will affect you and your family.
The cooling measures created by the government were to help ease the real estate market. The programs will remain in effect for 2016, allowing families to afford a better property. There are calls by developers to lift the cooling measures, but only if the market fell to between 13 and 15 percent.
This cooling measure is being introduced just timely for a family that is looking to upgrade or move into a new home. Prices have remained high in areas like Hong Kong, Malaysia, and Thailand, and Singapore’s property markets are starting to become more affordable compared to those regions.
According to the Real Estate Sentiment Index (RESI), conducted by the Real Estate Developers’ Association of Singapore (REDAS) and the National University of Singapore (NUS), a majority of developer’s expect a decrease in residential property.
Buyers do not want to pay the higher prices and they know that the market should work in their favour. The low rental yields in Singapore also lend itself to allow prices to drop further. The cooling measures have had the positive effect of curb on household debt, preventing landlords from extracting too much money from a family who cannot afford their home.
This cooling measures also meant good news for investors who had sought properties that they can turn around further down the line.
Higher Mortgage Rates
If a family is living in a house, their mortgage rates are going to rise. The US Federal Reserve made the decision to raise borrowing costs by.25 percent in December. The interest rate could increase this year, raising mortgage rates even further. For a family who has a mortgage right now, their payments may increase by 2 percent by the end of the year.
If the trend continues, households may have up to 70 percent of their monthly income dedicated to paying for their home. It would surpass the 60 percent limit set by the government and put the pressure back onto homeowners.
Investors can look at the market and realise that they can purchase a home at a lower price now, and then turn it around down the line.
Decline of Supply
While there is a bountiful amount of condos and apartments available, government land sales are starting to take a backseat. While developers are feeling the pressure to sell their backlog before purchasing more land, it is a benefit for home-seekers.
There is land that may go into “sell mode” around the Margaret Drive and Bartley location where the sales have been strong recently.
The decline of land sales by the government means that homeowners can expect prices to drop even further, due to the amount of empty units available. It is news that any new owner or investor wants to hear.
The Stock Market
Stock market unpredictability is a key factor in the Singapore property market. Based on the recent housing market crash, default property sales may increase in the coming year. Prices on homes may also decrease property value, even more, allowing for new tenants to move into those properties.
The stock market expects to recover whenever there is a pitfall, so the market should be able to bounce back. Low crude oil prices have affected businesses in the area, but it is not all bad news for families who are seeking to purchase homes in the area.
There are new opportunities that will continue to arise as the market continues to bounce back. People have begun to shift their focus on how they spend their money. The property market is starting to come back around, so the effects on the stock market should not linger.
The strength of the Singapore real estate market driven by the demand in the area. If you are an investor or a homeowner, this dark period since the market crash should soon start to recover when the government lifts their cooling measures. Since the measures are only a temporary solution, the question remains of when the government lifts the measures.
In the meantime, property seekers are looking at the prices in Singapore and noticing the abundance of real estates. The measures put into place by the government has allowed families to start looking for property they can afford, allowing the housing market to start to make a turnaround.
He can assist you to ensure that you and your family find your dream home, you can go through some of the condos for sale that is currently marketed by him. He is the agent you will want to talk to when you are ready to start looking for your new home. Your family will be glad that you decided to hire Dylan for your needs.