Singaporeans have been very vocal recently about property prices in Singapore. In fact, property prices have sky rocketed in recent years after the recovery from the US financial crisis of 2008. In fact, property prices have increased so much that it is pricing out many first time buyers from the market. With cheap financing available all across the world today, there are huge inflow of funds into the Singapore Property Market in Singapore. Singapore is an Investment Haven
Singapore is one of the easiest countries in the world to conduct business. On top of this, it is a country which places emphasis on law and order. There are also strict laws in place to protect buyers and investors. leedon green A country which places emphasis on protecting investors will always attract investments. For property investment, there are heavy restrictions to protect people’s money in the Singapore property market. Demand & Supply of Singapore Property
There are currently 5.1 million people in Singapore. In Feb 2013, Singapore came out with a white paper which projects 6.9 million people in the small city state of Singapore by 2030. Currently, there is not enough housing in Singapore due to the sudden influx of people into Singapore in the past two years. How about in 17 years time? With so much increase in demand for housing, and limited land in Singapore, the property market in Singapore is set to become red hot by 2030. Should one invest in Singapore Property?
In Singapore, only about 15% of properties are private properties. This means there are 85% of the market that foreigners will not be able to buy. Private properties in this case refers to apartments, condominums and landed properties. To use the basic economic terms, if there is limited supply of private properties for investment and with cheap financing providing liquidity for strong demand, property prices is all set to head up north. With the projected population set to rise to 6.9 million, the increase of property prices in Singapore is not finished. There is still room for growth.
The property market in Singapore is set to become very competitive. With a projected 6.9 million people on limited land of only 700 square kilometres, the market will be hotly contested. While economic factors will affect property prices in the short term,. in the long run, demand and supply will dictate how the property market will move. Right now, it looks like demand will outstrip supply.