For the last couple of years, Singapore has flourished a bountiful property market. It has only changed when its government took the so-called “cooling measures.” If you want to settle in the said country, what are the things that you must remember?
A Closer Look at the Property Market of Singapore
Most analysts would claim that the market stands to be resilient despite the cooling measures being taken by the government. The reality is that it appears to be nearing a tipping point. There is a report done by the UBS which predicts home prices in Singapore. It is claimed that it might have fallen between 10 to 15 percent. This is true most especially in the next 12 months.
There are so many reasons for such. These are the following:
- The economic growth of Singapore is still to be monitored as it is also affected by the global situation.
- There is a slow growth in the population because the government moves so that immigration laws may be tightened.
These factors may cause most foreign buyers to dampen any resale activity in Singapore. As a matter of fact, they may even stay away, if they wanted to. What else may occur?
There are school of thoughts saying that most property agents come with a stronger feel of the market as compared to most research analysts. There has been a shift in the sales in the year 2012 alone. The mass market homes conquered the sales in the quarter. According to the record of the OCR or the Outside Central Office, it has reached almost 69.2 percent of new homes.
The implementation of the additional buyer’s stamp duties, or ABSD might have been one of the reasons for the change. It has been the deciding aspect for most foreigners to stay away from the usual prime areas known to many. Ever since its implementation, there has been a sharp reduction in the foreign demand, most especially for the private residential properties. This has been observed. As a return, the properties in the suburban mass were made to be of segments. They even turned out to be more appealing to the Housing Development Board. Usually, upgrades who purchase come with a longer-term perspective in mind as a goal.
Just to look ahead, the record supply bond for the pipeline can somehow help in the alleviation of the pent-up demand being set by the Outside Central Region. This would prevent spikes most especially in property prices. When it comes to mid to long term, there might be a chance for the global economies to be strengthened. This would prevent the property prices to spike up. When it comes to long-term business, this is meant to boost the sentiments of the investor which may lead to the gradual recovery of the Core Central Region and even the prices of the Rest of Central Region.
Indeed, the purchasing power of the Singapore citizens cannot be denied. When the measures of proper buying are taken, relevant authorities will certainly own the help they deserve. This is for sure!