Singapore, with a small land size compared to many developed countries, is one of the best places to invest in properties. With a small land area, it is inevitable that the supply of land is limited, and hence, property prices are always on the rise. However, property prices has shot through the roof in the last 4 years, and this has prompted the government to take necessary measures to cool down the market.
This is because of a risk in building up a property bubble, one which we have seen how much damage it can do to cause a financial crisis, such as the infamous one in USA in 2008. As such, the Singapore government has implemented many rounds of cooling measures to make properties more expensive and investment less lucrative.
With that in mind, is Singapore still the right place to invest in properties? This is what our discussion will be on today. But before that, let’s see what the government measures has done to the property market here.
According the statistics by Singapore Real Estate Exchange SRX, private home sales have hit a 21-month low since October 2012. People are now buying the same properties at a lower price compared to few years ago. SRX has also predicted the price will continue to fall.
However, if we look out of the statistics, we can see that land developers are still launching new condo projects in this ‘cooling’ period. One example is the North Park Residences in Yishun, which is an upcoming project to be launched in Dec 2014.
With over 900 units up for grabs, it is still early to say what the response will be. But with all the cooling measures still in place, the psf price for North Park condo might be lower than the previous condo launches are Yishun area.
This can be a great deal for people who are waiting for a drop in price in the property market before entering it. Families who want to upgrade their lifestyle from a HDB apartment to a new condo can grab this chance, before their HDB price falls further.
Other than just the North Park residence condo, there are also many other ‘golden opportunities’ that are yet to be uncovered. Only when you are open to investment, you can find them.
Singapore is still one of the best places for property investment, and good deals can be found everyday. People are still making money when there’s government intervention in the market. Grab that opportunity today.