Singapore real estate market – A quick overview

Singapore luxury property

Singapore, an island city, located in South-east Asia is well known for its growth and developments.  After Independence, widespread land repossession has increased gradually and it is renowned for the drastic transition from the status of developing into a well-developed country in a sole generation.

This city is a global center for various different activities like education, industry, health-care, finance, logistics, tourism, trade, technology and a lot more.   The climatic condition of this city has a normal temperature throughout the year with high humidity and plentiful rainfall.

The economy of this country is greatly developed and this city well-known for freest, dynamic, innovative, as well as the competitive environment for the business.  Singapore not only boosts and supports the business but also gives economic freedom as this city is one of the easiest places where one can start the business freely.

The growth of the different sectors is tremendously making this place an ideal place for investment.  Many investors across the globe are interested to invest wherein they can earn enough benefits as well as enjoy the beauty of this lovely city.

Singapore has attracted many investors to invest and few appealing factors which make the investors pool their money in the real estate field are a stable government, independent city and business-friendly atmosphere making it a congenial environment to work, to do business, as well as to live.  These are the contributing factors for attracting investors all over the world inflow of money and wealth constantly.

The Singapore real estate market especially the central region market value is high and many prosperous investors focus to invest in this central region of the city.  However, in recent years, this city has remarked high land prices making the citizen think a lot about before buying a property.  The land prices are still at an increased rate due to the rapidly growing economy and the asset market making it hard for the local people to buy a property within the heart of the city.

One can observe both fluctuations as well as growth in the real estate market due to various factors like government tax policy, property-owners and developers actions to boost the trade and so on. However one can buy a condominium freely in this city with only a few restrictions.

This city government has taken adequate measures to cool down the land prices and few among them are as follows;

  • An individual can borrow a home loan when the debt repayment costs are below 60% and not more than that of the monthly income. The government action will stop the borrowers to raise money and invest in more than two properties.
  • Increasing the stamp duties of the property making the buyer pay for it. This stringent action by the government is to discourage the property owners buying in new properties.
  • Increasing the stamp duties for the short-term ownership encouraging the property owners to hold the property for not less than four years. Those who buy and sell the property within the four years need to pay the appropriate tax amount to the government.

Conclusion:

This city government has taken many measures to cool down the land prices and making it ideal for the foreign direct investment, holding the property for long-term possession. The real estate market will become affordable in this city when the prices continue to decline, making this city the best place to invest for first-time investors.