Property prices Singapore
Singapore’s real estate industry has been rising despite having a smaller land mass compared to its neighboring countries. The country’s robust economy is one of the factors that attract many foreigners to check out the property prices Singapore investment options. As a result, many are looking for profitable Singapore investment house prices.
Before finding a property in Singapore, there are a few property prices Singapore factors that you need to take note of. In this article, we’ll discuss the three factors to take note of in property prices in Singapore.
KEY LEARNINGS & TAKEAWAYS
- Singapore properties are very expensive.
- Property prices in Singapore increase every year.
- The property prices differ depending on whether the property is freehold or leasehold.
- Leasehold means that you will only own the property for 999 year.
3 Things to note about the property prices in Singapore
#1 Expensive Singapore house prices
Singapore is the second country in the world that has the most expensive property prices. Singapore house prices are not far behind the country with the most expensive property prices which is Hong Kong. One of the reasons why is because Singapore has a small landmass. Apart from its continuously growing population, many foreigners, for example expats, are traveling to Singapore either to study, to get employed, or to start a business. As a result, the demand for housing is affecting the property prices Singapore trajectory.
To give you a clear image of how expensive a Singapore property is, you can expect that a lot-only property can cost at least S$1,500 per square foot. That means that a 100 square foot landmass can already cost S$150,000. That price does not include the fees you will pay for buying residential land in Singapore. The other fees include taxes and real estate agent commission. You will need more funds in order to build a house on that lot. Furthermore, if you do build a house in that 100 square foot lot, you will only get a tiny house that may not be spacious enough for one person. Thus, you are expected to pay more than those Singapore house prices if you want to live in a bigger house.
Furthermore, properties in and near the Central Business District are the most expensive in Asia. The property prices Singapore land cannot go below S$20,000 per square foot. This means that a 100 square foot lot only can already cost over S$2 million. Thus, if you are planning to buy a property in Singapore for the first time, it is best to have a lot of savings in the bank.
#2 Constant property prices Singapore increase
Aside from the expensive Singapore house prices, there is also a constant property price increase. That is because of the small landmass of Singapore. In addition, the population of Singapore is not getting smaller.
More and more foreigners are coming to Singapore for many reasons such as work and study. Thus, the demand for real estate increases and pulls the property prices higher. Another reason why there is a property prices Singapore increase is because of the constant developments.
The Urban Redevelopment Authority or URA continuously builds facilities in the developing areas in Singapore. As a result, these facilities consume space in the small land mass of Singapore. Thus, the Singapore house prices continue to increase. In addition, the demand for access to these facilities, such as MRT stations, contributes to the price of all properties in Singapore including rental home options. Thus, properties near these facilities are more expensive.
However, there is currently a property prices Singapore recession because of the effects of the pandemic. As predicted, the Singapore house prices will continue to drop. However, the pandemic will eventually pass and the economy of Singapore will once again be revived. As a result, property prices will once again increase.
#3 – Singapore house prices between freehold and leasehold
There are two main types of property tenure in Singapore. These are freehold and leasehold tenured properties. Freehold properties means that the home buyer can own the property and get a land title. Furthermore, they can be inherited by the next generation. However, there are provisions in a freehold properties contract. This means that the Singapore government can reclaim the freehold property from the owner if it is in the way of a development process. Freehold properties are more expensive than leasehold properties.
Leasehold properties are owned by the Singapore government. They lease these properties for a certain price and period. Once the period is over, the property will be reclaimed by the government. There are two common types of leasehold properties which are the 99-year and the 999-year tenure. A 999-year leasehold is also considered to be as good but less pricey as a freehold. Thus, it is best to research which type of property tenure should you avai that is most beneficial for you.
Trend of property prices in Singapore
The real estate market of Singapore is one of the most well-discussed among its populace. That is because Singapore is one of the countries with the most expensive Singapore house prices. Despite being pricey, Singapore still has potential when it comes to property investments.
As a property investor, it is important that you are updated on the property prices Singapore trends. The coming of the new decade only implies that a new wave of property prices Singapore trends will emerge in the real estate industry. In this article, we’ll cover the current property prices Singapore trends. We will also discuss some predictions of the property prices Singapore trends for the coming years.
Resilient despite COVID-19
The COVID-19 pandemic had hit hard on every industry and market all around the world. That also includes the real estate industry of Singapore.
However, overall, Singapore remains resilient and steady despite the negative effects of the pandemic. Even before the pandemic striked, the second half of the year 2019 has been a good year for many developers in Singapore. Furthermore, many more houses were recorded to be sold towards the end of 2019.
Aside from that, the Urban Redevelopment Agency or URA reported property growth in the middle quarters of 2019.
This happened even if market cooling measures were applied. It is predicted that this growth will continue to progress in the coming years as long as the economy of Singapore does not plummet. Furthermore, if the economy recovers well from the pandemic, a higher projection of growth in the property prices Singapore industry will be set in the coming months.
If the COVID-19 pandemic will last for another year, most real estate developers will most likely cease operations. That is because it is expected that the demand for housing in Singapore will plummet. Reducing the Singapore house prices won’t be helpful if there is a lack of demand among home buyers. Thus, there will be a decrease in real estate sales in the coming years. However, once the virus has ceased and the economy of Singapore has recovered, the real estate industry will once again rise.
Singapore house prices rising
Singapore has always been a country with the most expensive Singapore house prices. That is because the land mass is very limited. As for Singapore house prices, a rise in prices is to be expected in the years 2020 and 2021. A growth rate of at least 2% is expected to manifest in the Singapore house prices. This rate is relatively minor compared to the expectations of the property investors. As a result, more Singaporean property investors have been looking for overseas property investments.
The property prices Singapore rise is said to be caused by the many condominium developments that have been launched during the pandemic. Some of these condominiums are the M condominium, the Penrose, and the Verdale. The M condo in particular was able to sell more than 70% of its units during the launch date even in the middle of the pandemic. Thus, there are still many home buyers that bought condo units this year. This will cause a relative rise on the demand for real estate that will subsequently affect the Singapore house prices.
Rise in foreign buyers
Singapore is known for building many luxurious condominiums. Moreover, its luxury market had passed all the expectations set for 2019. It is expected that more growth in performance will also be seen in 2021 and beyond despite the current situation of 2020. That is because new property developments will rise in the coming years.
Since there will be new developments that will enter the real estate market, it will result in a positive competition among the property developers. The need to build high-end properties will rise among the developers. These luxurious properties will garner attention from foreign Singapore property buyers.
Most foreign property buyers, such as Chinese nationals, prefer the ultra-luxury condominiums offered in Singapore. They are also very particular with the safe and stable environment that the country has to offer. This means that the country has high potential in cultivating wealth preservation for many generations. With more of these high-end and profitable properties in the real estate market, more foreigners will become interested in purchasing a property in Singapore despite the expensive Singapore house prices. This brings us to the last property prices Singapore trend…
The worrisome economic issues
Singapore still remains as the second most high-priced property market in the world right after Hong Kong. The Singapore house prices had risen by 12 percent compared to the past decade. However, the monthly gross income of the Singaporean working class only increased by 7 percent. As a result, a large margin of the affordability gap had occurred for purchasing of private properties.
Furthermore, Singapore properties still remain exclusive despite being able to attract foreign investors. Only a few portions of landed properties are permitted to be owned by a foreigner in Singapore. Requirements for foreign property ownership exceptions had remained strict with no signs of loosening. For these reasons, many predicted that there is great possibility of a decline in property ownership in Singapore.
Moreover, local Singaporeans had been searching for affordable properties overseas to invest on. That is because of the large affordability gap that can potentially grow in the following years. Many had been seeking properties in high-performing and stable countries such as the United Kingdom. As long as Singapore house prices do not decrease, overseas property investment will soon become a prominent property prices Singapore trend.
Be updated on the property prices Singapore trends
Those are the recent trends of the property prices in Singapore. As what you have read, the real estate industry has been relatively stable amidst the pandemic.
Furthemore, foreigners are still interested in buying luxury properties in Singapore. The high Singapore house prices may have turned the attention of investors to overseas properties. However, property investment in Singapore still had the potential to profit.
Learn more about property prices in Singapore
Those are the three factors that you need to know about property prices in Singapore. As you have read, properties in Singapore are really expensive.
In addition, there is a great chance that the Singapore government can reclaim the property even if it is a freehold tenure. Do you want to learn more about property prices in Singapore? Check out our latest article updates, here at SRX Property.