17/11/2014

Why Properties For Sale in Singapore Are Worth Buying?

Singapore boasts one of the world’s strongest economies, with more and success and growth to further solidify its status as a leading economic model. The Singaporean government has played their cards smartly over the years to transform their island state into a world class business hub.

This sustainable economic boom brought about more foreign investment and interest in Singapore, which was followed by a huge influx of foreign residents interesting in living in this business utopia. Space in Singapore is highly valuable because of its relatively small area, which further contributed to the demand for real estate. Improving economic conditions and increasing living standards reflected on the property market positively as well with more demand for housing and even increasing focus on high end luxury property.

market trend for properties for sale

This boom in the Singaporean real estate market is not a permanent one; as the Singaporean property market goes through its cycle, it has currently reached a declining state after government cooling measures have been put into place to curb excessive expansion. More and more developers are offering properties for sale and are struggling to find buyers, even with declining property prices.

The cooling measures enforced by the Singaporean government were needed to stabilize the real estate market and curb its rapid and excessive growth, drive down property prices and prevent a having a sharp crisis on the horizon. These cooling measures involved more strict foreign ownership regulations, tougher real estate loan requirements and less land sales for construction, among other actions. A direct result of such measures was decreased demand and a gradual decline in the price of properties for sale in Singapore.

As a potential buyer, you could benefit from declining prices and secure the home of your dreams with much less than you would have paid for it just a few years ago. This decline is sharper for luxury real estate, with prices dropping more than 10% so far and continuing to plunge even further!

The smart course of action for you would be to carefully examine the real estate market trends and identify the upcoming stabilization period where prices are at their lowest before you decide to buy. The downside for this is that real estate financing also becomes difficult to obtain.

The real estate market is currently in the declining phase with continuously plummeting prices due to growing supply with very little demand response. The Singaporean government is very likely to enforce new measures to prevent rapid decline and avoid a very low stabilization point for the market before it bounces back to a rising state, so it is advisable that you follow the news carefully to find the perfect time for you to buy before property prices start rising again.

one of the properties for sale in singapore

The government is not just enforcing measures to protect the real estate market; there are numerous plans laid out to improve infrastructure all over Singapore to raise demand for new areas of residential and commercial developments. These plans are strategically designed to create a more balanced distribution of population and provide more accessibility to every part of the island.
It is expected that properties for sale right now will continue to experience decreasing sales as the Singapore market plummets further and further. Despite damping provided by the cooling measures enforced, this decline is inevitable, but so is the following rise!
For property investors, it is still unclear if it is yet the time to invest in residential property. Commercial and industrial properties for sale are considered the best real estate investment options right now owing to the strong economic growth, but there are still some complications as a result of the upcoming real estate market plunge.

In such a dynamic property market as Singapore’s, extra attention must be given to making insightful observations and studying trends to predict the upcoming market state and make sound investment decision. This real estate market can be one of the most lucrative in the world when it is in a boom, but it can also causes investment disasters when you miscalculate!

The onset of the bottom point for this cycle is not very close, as prices have dropped a small amount compared to more than 50% increases since 2010. The government is likely to maintain cooling measures for some time and supplement it with further precautions to oversee a healthy and quick bounce back to a strong rising real estate market.


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