Top 5 reasons to buy real estate in Singapore

Top 5 reasons to buy real estate in Singapore

The New Futura project is one of the many residential buildings pinning their fortune on the growing real estate market in Singapore. It is estimated that there are close to a dozen planned projects for 2018 and beyond.

Just last week the URA’s report revealed during the third quarter of 2017, the private residential property index had increased by 0.5%. This is the first we’ve seen on paper since 15 quarters.

Projects like the New Futura condo, are banking on the soon to be booming market which is hot on the heels of a 4-year downturn. Though the question on everyone’s mind is should you invest or wait till it takes off?

Buying it now means that when prices rise, and there is reason for it to, many will make a lot of money. Alternatively, some investors may want to sit through it till the market is in full bloom.

Our suggestion is to buy right now and below are five reasons we suggest this.

Reason no. 1: Common consensus is that the market will boom

After enduring 15 quarters of decline, it makes sense that the market will rebound. There are already signs of a rebound starting in January 2018.

The prices are pretty low at the moment, and so investors would want to take advantage of it. For instance, the New Futura Price has not been updated with the current uptick in prices considered.

Many property experts believe that the decline was artificially induced as part of cooling measures. The measures were injected by the government to stop price speculation and help with a soft landing.

Some of the cooling measures expected to be removed are the Additional Buyer Stamp Duty and Total Debt Servicing Ratio. Once these are removed prices are expected to explode.

Reason no. 2: Projects like New Futura are great for local buyers

In the past bull runs were caused by foreign speculators or investors. Though it is expected that the majority of buyers in the next couple of years will be locals.

The Number of locals who want to live in the space they buy is expected to rise steadily. Once the government imposed hurdles are removed locals are expected to start investing.

Reason no. 3: It is and continues to be an investor-friendly market

Projects like freehold New Futura are highly attractive to local investors. Since real estate is one of the most established Singaporean sectors, it has a whopping 108 companies listed.

The real estate companies combined make for a market capitalization of well over $196 billion. Plus, investors have the ability to pick which of the 43 professionally managed REITs they want to invest in.

Reason no. 4: Real estate is cheaper today

Real estate in Singapore in cheaper today than it was for many years. That’s given the fact that the country has not been struck by increased inflation.

Singaporeans have a lot of buying power and so the property is relatively cheap. It’s a great time to own a second or third property.

The only drawback perhaps is that rental yields are still low. However, with still a few more years till the completion of some projects you can be assured that things will improve significantly by then.

Reason no. 5: Residential buildings are always in demand

If you look at the trend from the past thirty years, it's evident that residential property value has on the whole increased. Plus, this makes it easier to get a return on investment via rental income.

The latest residential buildings are a lot more spacious, iconic and comfortable than they ever were. Making them an excellent investment today but geared towards tomorrow.

Author: Robert Lamp
Position: Ghost writer in New Property Guide, Blogger
Email: robertlamp10@gmail.com