It has been seen that although the Singapore property market has actually had the ability to stand up to the tough times regardless of some favorable steps taken by the government, it appears to be reaching the tipping point.
The scenario was actually helpful for the people interested in investing in the Singapore realty market till few years back. Is it good scenario even now? This article will act as a guide for those who are planning to buy realty or are already in the market.
It has been observed that although the marketplace has been able to stand up to the bumpy rides regardless of some favorable steps taken by the government, it appears to be reaching the tipping point. According to a report by UBS, it has been predicted that there could be a fall in the home prices by 10-15 % within the next 12 months.
The market may appear dismal due to the following reasons:
The worldwide scenario is influencing the economic growth of Singapore.As the migration laws have actually been tightened up by the government, it has led to the decreasing of the population growth.These aspects might work as a deterrent to the foreign buyers from entering into the real estate market, therefore dampening the task in the resale market.
The property representatives who understand the pulse of the market much better than the research analysts differ in their opinion. Sales for the first 6 months of 2012 alone fell short by almost 12,000 units. Maximum demand in the first quarter was for mass market houses. As many as 3700 spaces or 69 % new home sales were recorded in the OCR (Outdoors Central Region). Maximum sales were tape-recorded in Flo House, Palm Isles and Ripple bay, which sold 324, 306 and 568 facilities respectively.
This could be due to execution of ABSD (Added Purchaser Stamp Duty) in December 2011, which triggered the foreign buyers to avoid buying in the prime locations. Since this stamp duty was implemented, a sharp plunge in the demand by the foreigners for residential properties was discovered. This element made the financial investment in the realty more appealing to the upgraders in the Housing Development Board, who typically purchase keeping long term objectives in mind.
The enhanced supply in the near future might help to reduce the demand in the OCR, therefore avoiding any synthetic increase in the property rates. In the long term nevertheless, as the worldwide economies get reinforced, it would certainly increase the investor beliefs. It might ultimately help in the recuperation of property costs in almost the entire of the central area.
It is quite evident that the future of the Singapore property market hinges on the buying power of the locals. The sky is the limit for the development of the Singapore property market if the authorities take proper measures to avoid short sighted speculative investments.
Article Tags: Real Estate