Singapore Properties In 2014 | The Future Of Singapore Real Estate

REALESTATE_SERVICES

Singapore Properties In 2014 | The Future Of Singapore Real Estate

Even though the Singapore property market has been cooling down for a while now, there is still room for gaining advantages in the future. In 2014, there was a 50% decrease in the number of private residential units sold. As of November, 2014, only 7137 homes had been sold. However, even in the face of weakened demand, prices for these units have remained quite resilient. This is largely due to the fact that sellers and developers alike have been refusing to budge much.

 

 

Pricing for Singapore properties in 2014 has fallen, slightly, for the past four quarters straight. There was a 0.7% decrease between July and September alone; and over the past 12 months, they have fallen just about 3% in total.

Caution from buyers and suppliers both will continue to fuel the headwinds of the market moving into 2015. Many experts agree that even though the slow downward spiral will continue, there will not be a market crash. Industry insiders know that 2015 is a very important year for the country of Singapore for 2 good reasons:

  1. Singapore celebrates its 50th year of independence;
  2. It is very likely to be an election year;

The Singapore government will keep property pricing cooling protocols intact, making sure that RE prices do not fall or rise on a meaningful level. One of the most powerful elements of household wealth in Singapore is property. In fact, about 47% of all household assets are being allocated to procuring and then maintaining real estate.

And it follows that the government will not be interested in sacrificing all this household wealth, even and especially in the face of a possible election. In fact, last year, the government initiated a steep stamp duty increase for foreign buyers in order to further cool the demand for Singapore properties. Duties were increased from 10% to 15%.

If you are considering your options for buying Singapore properties in 2015 and beyond, you should focus on those with enhanced offerings, such as properties located nearer to Mass Rapid Transit (MRT) stations and the like. You should also focus on smaller properties. Statistics are showing a more severe decline in sales of properties with three or more bedrooms, and increases in sales for smaller units.

 

singapore-mrt

Mass Rapid Transit (MRT) stations

You may also consider the fact that, because of decreased demands coupled with burgeoning supplies, Singapore developers and sellers are going to be expecting foreign buyers to be approaching them with lower price points in mind.

 

Leave a reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

4 × one =