Even though there can be events that direct the movement of property pricing, given Singapore with its limited land size, with high ratio of Citizen earning decent income, policy that welcome foreigner and a stable government, all these factors contribute to higher demand for property in Singapore as compare to most neighbouring countries. Singapore property […]
Even though there can be events that direct the movement of property pricing, given Singapore with its limited land size, with high ratio of Citizen earning decent income, policy that welcome foreigner and a stable government, all these factors contribute to higher demand for property in Singapore as compare to most neighbouring countries. Singapore property prices in the long run is still heading north and a good hedge against inflation and secure.
There are 2 major factors that will affect property pricing in Singapore, i.e., controlled factors and uncontrolled factors.
Uncontrolled Factors
Any Financial Crisis will definitely have a great impact on everything, including property prices. The financial crisis will slow down the price upward trend but often is temporary as people still believe in property as a better hedge against inflation and security. Without financial cycles, property prices today may be too high for reach for most people. Looking at the bigger picture, this is actually something good, with market correction, avoiding big bubbles in property market.
Before the Asia Financial crisis in 1997, property price is heading North, this create believed in people to invest property.
After event like Asia Financial crisis, the trend is supposed to move upwards rapidly but due to SARS, prices was suppress for few years. With confident coming back slightly before 2007, another crisis struck during the Global Financial Crisis in 2007/8, which pushed the prices down again. This time after the sharp downturn, the price went up pretty fast, without event like SARS to suppress the price from moving upwards. Therefore, “Controlled Factors” was implemented.
Controlled Factors
This is mainly government intervention which happens in 1996 and 2009 onwards. The most effective will be the more drastic regulation with the ABSD (Additional Buyer Stamp Duty), SSD (Seller Stamp Duty) and the implementation of TDSR (Total Debt Servicing Ratio).
Many people are complaining of the higher tax when the measures was introduced, as time goes by, people tends to forget and accepted this as part of the deal when purchasing property, therefore “Controlled Factors” don’t have a sharp downturn effect, as the regulation is often not to crash the market, instead is to have a soft landing.
In March 2017, Government had very slight adjustment on Singapore property regulation. The move may be insignificant but it does show the government does felt the plane had touches on the runway, although they are not admitting on the fact that property price had reach its resistant level, I believe their intention is also not to create a rush for people buying property thus pushing the prices up by too much, defeating their effective effort since 2013.
Other than regulation on consumer, another contributing factors will be from the developer. They are running a business, they need profit, so they need to acquire land in order to do so. With limited land sales from Government, they also look at En-bloc, biding at higher value in order to get the deals. Developers are not ordinary businessman, the investments are in hundreds of millions of dollars and can reach billion mark. They hire top brains to calculate the right amount of bidding and still a profitable business. So, with calibrated moves, will developers go wrong? Often, they don’t, because the calculated launched prices today has been extrapolated to match the dynamic market price movement. What seems high priced today, will look cheap tomorrow. Looking at the chart you will understand why. Property is a long term investment, in long run, investing in property will not let you down.
Disclaimer:
The above article are personal opinions of the author and reader discretion is advised.
Other News and Article
Why Kallang might just be the perfect place to stay
This news was 1st published on www.99.co, on JANUARY 5, 2017 Ever thought of staying in Kallang? Kallang is located in Central Singapore – and the neighbourhood has been seeing many exciting F&B concepts and businesses pop up in the vicinity. Check out our list of cool things to do if you’re planning to live […]
Paya Lebar versus Jurong
Paya Lebar versus Jurong: which will be the hottest business hub? This news is 1st publish in 99.co, on APRIL 11, 2016 Jurong Town Singapore | Photo for Paya Lebar & Jurong Town Article on 99.co About 30 years ago, if you bought property in Jurong, people were not sure whether to laugh at you […]
Removal of ABSD
Will it happen? Additional Buyer Stamp Duty, in short we call it ABSD, the aim is to cool down the property market. It was first introduced back in 2011 and thereafter there are few adjustments. However, all are not effective enough in bringing down the property prices to the expected level. It is only after the […]
Analysis – What kind of investor are you
The Opportunist These group of people look out for a smile in the chart, so is their life, full of smile. They observed, they take action, they have the holding power. They will definitely see their flower blossom. Since buying property in Singapore needs to hold, not because we want to but because the regulation […]
International school Effect
New campus for German European School Singapore ? According to 25th September 2014 letter to parents, student and member of their school community from German European School Singapore, they are waiting for final approval by our President, Dr Tony Tan on settling their new campus along Dairy Farm Road in Upper Bukit Timah. How will it affect […]
News – Analysis of Government land sale 2014
Government Land Sale 2014/2015 Out of the 19 government land sales, 2 plots are executive condo (EC). The most interesting plot of GLS land is at Toa Payoh, located at Toa Payoh Lorong 4 (previous Mobil petrol kiosk) is considered geographically centre of Singapore. Since the completion of Trevista in 2011, there is no new […]
Discover SIMS
Sims is Transforming From a sequestered street off Aljunied Road, to the next iconic lifestyle enclave. Sims Urban Oasis, situated at Sims Drive, transforms the ease and is set to be the future of residential districts. With it excellent connectivity, you’re never more chan minutes from everything popular. From the trendiest cafes to the hippest bars and more. […]
News – Sims drive – GuccoLand hopes project will enliven Sims Drive area
News on Sims drive on 3rd December 2014 Article on – GuccoLand hopes project will enliven Sims Drive area 1st appear in press on 3rd December 2014. Please take note on some of the points mentioned in the article, total number of units, it should be 1024 and not 1042 Price mentioned is from 3rd party point […]
Development in Yishun
Things in Yishun Yishun is like a forgotten child until recently, when our government starts to plan for the North. Shopping and Dining Frasers Centrepoint released statement regarding Northpoint City on 1 August 2014 (scroll down for the article) Main point in the article is to introduce Northpoint City to the residence of Yishun. After a long […]
News – More usage for industrial property 2014
URA had approve more usage for industrial property With effect from 24 November 2014, due to outlying industrial estates which are located far from existing commercial nodes, in order to facilitate the needs of people working in such area, saving times for individuals and businesses, Urban Redevelopment Authority (URA) had open up change of use to banking hall/ATM, […]
News – Developers show caution in bids for Sims Drive site
Developers show caution in bids for Sims Drive site First Changi Development, a unit of GuocoLand had secure a piece of 99 years leasehold land with a top bid of S$530.9 million. Located at Sims Drive, this land had maximum gross floor area of 771,775sqf; is indeed a very big plot land land. Such big development […]
Share this wonderful property Facebook, Twitter and Google+.