Dylan Will Inform You of the Facts Regarding Singapore Housing Market
The Singapore housing market is trending more towards renters and owners. Prices have fallen at a steady pace, and the prices should level out within the next 12-18 months. There are a lot of excellent properties available at an affordable rate, especially in prime locations.
Now is the much awaited time to buy a home for you and your family, or purchase a house for investments. Are you looking for a home? You can find your dream home for a lot less than in previous years, especially with the growth that Singapore is expecting.
The Qualifying Certificate (QC) listed under the Residential Property Act puts a cap on foreign companies that are seeking large property areas to purchase. The QC allows for international businesses to apply for private housing land in the Singapore area.
If a foreign company any land sales for development, the company must then complete any private residential project within five years and then fill those project within two years. It is an ideal situation for people looking to buy any private housing, because, to prevent a fine to the developers, they may lower the prices to attract buyers and fill those units.
It is fantastic news for buyers looking for a new home, but investors need to use caution before jumping on the lower prices. Not all private properties are the same; various factors needs to consider.
Prices have dropped for home properties, and the cooling measures put into place by the government probably won’t be lifted any time soon. Private residential prices have fallen .7 percent in the first quarter of 2016, and without a timetable to lift the cooling measures, private housing prices should continue to fall.
Without a timeframe to remove the cooling measures, purchasing private property is one of the best ways to protect an investment. Private property units have dropped nearly 9 percent since the peak year of 2013. Luxury property prices have also declined recently, making them more affordable.
Since the cooling measures have put a cap on debt-repayment not to exceed a person’s income, it has allowed for people to obtain private property easier. A higher stamp duty on private home purchases, along with a lower interest rate has led to some concern that prices are starting to rise too fast once again, but this is not the case.
The stamp duties are expected to be lifted by the government to prevent the prices from rising too quickly. Singapore is still considered a high-end housing market, which was the tipping point to enable the cooling measures.
The government had introduced the Total Debt Servicing Ratio (TDSR) on private property housing also placed a 35-year mortgage term, preventing people from getting into a mortgage they cannot afford. The seller’s stamp duty allowed new private property buyers to put in a lower down payment on the private properties.
It is the ideal situation for anyone looking to capitalise on the private real estate sector, and for first time home buyers. Interest rates continue to fall as well, dropping from 3.53 percent in 2013, to 3.1 in May 2015. The housing loan interest rates are worked to help out with inflation, which can help out borrowers who are living in a private property.
Since private residential borrowers are most affected by interest rate changes, viable mortgage rates have been addressed and tweaked. The TDSR has lowered the interest rates enough to compare to the HDB loan, which is the same at 2.6 percent over past ten years. While they are comparable, a bank loan has the better options for getting a lower interest rate.
While the demand is not high right now for private properties, there should soon be a balance between supply and demand. An increase of housing units over the next four years will create more options for private property seekers, dropping prices to fill those units. More people will start to flock to Singapore because of their lower prices, and limited projects after four years, the supply and demand will eventually even out.
Another thing to consider is the population of Singapore. Nearly two million residents are foreigners, with half a million being permanent residents, and nearly 1.5 million being expats. Singapore is a prime location for expats who live there and work elsewhere, which means they help drive the market. They are crucial to the property market, and as prices continue to fall, Singapore is an attractive destination.
If you are in the market for private property housing, you can contact Dylan, who is the person to turn to find your ideal home or investments for your needs. He can advise you through creative financing to assist you with a property purchase. He can take a look at your portfolio, and advise you on your situation, and how you can generate better returns.
His alternative insight to the property market gives him a unique position to stay ahead of the trends. If you are a high-risk/high-reward investor who loves to see some action, be sure to contact Dylan.
You can reach Dylan at 94567022 or firstname.lastname@example.org