Are you planning to sell your apartment in Singapore quick? To be fair, things haven’t been all that great in the housing market in Singapore in 2016. In fact, the market has been struggling since 2014. It’s not difficult to see why.
The housing market in Singapore is a victim of its own incredible success over the last decade and a half. The fact that property prices were growing in double digits for many years led many developers to believe that the party would go on forever. So there was suddenly a glut of new apartment complexes in the city.
Naturally, when the supply is a lot more than demand in the real estate market, you can expect to have a number of unsold units, which drive down the prices for everyone. That’s exactly what has happened in Singapore.
The government has done its bit to cool down the market by increasing interest rates and imposing other cooling measures such as the Additional Buyer’s Stamp Duty, Seller’s Stamp Duty and Total Debt Service Ratio. While this action has helped to reduce speculative buying in the market, it has also acted as a deterrent against foreign investment.
It’s no surprise then that the Real Estate Developers Association (REDAS) has been consistently asking the Singapore government to remove the cooling measures.
So what does this mean for you as someone who has properties for sale in Singapore? Here are three major trends to watch out for.
#1: Property Prices are on the Decline, but that’s Healthy – The reality of the housing market in Singapore is that property prices have been dipping since 2014. They are not in a full blown decline yet, but there’s no question that the demand for new homes and apartments isn’t what it used to be four or five years ago. But this is a good thing as it means that there is no risk of a property bubble in the near future. We are headed for a period of calmness and stability in the housing market.
#2: Tenants Have More Options than Before – One of the biggest changes seen recently is that tenants are now in control in the rental market. Landlords are finding it harder than ever to attract tenants and hold on to them. It’s not hard to see why. Tenants have a number of options available to them and can afford to pick and choose. If you’re the owner of a property, you have no choice but to accept the fact that the days of high rents in Singapore are over. You should brace yourself up for a new situation where the tenants have all the power.
#3: Location is the Most Important Thing – The price of the property depends largely on where it is located. Just because the price of an apartment for sale is low doesn’t mean you should go ahead and invest. The location really matters here. Find out how far are the nearest amenities and how good is the public transportation. The last thing you want is to buy a lemon here.