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Singapore swing: city’s property market shows signs of recovery
Source: The Financial Times / Dan F Stapleton / 5 May 2017 / Photo by Fraser Hall / www.robertharding.com
Singapore’s Situation: A Housing Market Rebound?
The cooling measures hindering Singapore’s housing market may have run their course with economic and social factors contributing to the upcoming rebound. Singapore’s focus on recreational and cultural inclusivity has driven many individuals into the community. Understanding key factors contributing to the current situation, analyzing prevalent trends during 2017, and what the future holds are critical to fully comprehending the Singapore housing market.
The Facts Leading Up to 2017
Cooling measures implemented by the government were put in place to mitigate the rapid price increases Singapore experienced from 2009 to 2013. During this time period, the housing market saw a 62% increase in price, placing serious restrictions on the market. To offset the high price thresholds, the government put a 16% seller’s stamp duty on houses bought and sold in a specified time frame and an additional 15% on second homes bought. These two added expenses resulted in a 12% drop in house prices by 2013. By 2015 and 2016, prices began to level out with a steady 3.7% and 3.1% drop, respectively.
The Current Situation
All of these factors contributed to the current situation of Singapore’s housing market, leading to a positive outlook. Singapore’s cultural and social initiatives coupled with low taxes and developing areas have attracted a high net worth crowd. New shopping centres and restaurants pop up weekly, giving tourists and those with a home base in Singapore plenty of activities. In addition, diversity and social advancements toward equality further add to the appeal of Singapore.
The growing population in Singapore led the government to reduce the seller’s stamp and second home tax. As a result, during 2017, you can expect a range of $400 to $2,000 per square foot depending on the property type and view. Non-land homes in popular neighborhoods like Tanglin and island views on Sentosa Cove appeal to different areas of consumer demand.
The Future of Singapore’s Housing Market
The future of Singapore’s housing market looks promising due to the reduction in government cooling measures and an increase in recreational and social efforts. High net worth individuals will continue to be attracted to Singapore because of the prime real estate location, offering a combination of luxury and practicality. An offset between interest rates and market prices is bound to happen as a bull market will be seen. In addition, investors will continue to pour money into the market through apartment and other residential developments.
However, despite the promising outlook, Singapore still falls short in equality measures. The conservative culture seems to exclude homophobic individuals, which is bound to have an impact on the market as social movements towards equality gain more traction. Moreover, restrictions surrounding apartment developments will further hinder the growth of Singapore. Nevertheless, the Singapore market will see an upswing in the coming years.
The Singapore housing market rebound will be something to keep an eye on whether you are an investor, developer, or potential future resident. The economic and social strides will prove effective as the market begins to turn around. There’s no definitive answer on where exactly the market will go, but these factors produce a quality prediction.