Property Investment in Singapore | Real Estate Investment in Singapore

Property | Real Estate | Singapore

Most commonly Singaporeans who aren’t CEOs, ministers, or investment bankers, etc. have two options for getting rich quickly. One is to win the lottery or buy a property in Singapore and hope its value skyrockets. Property investment is one of the most popular ways to grow your money in Singapore. It is one of the important things you can do with your CPF savings. This guide is for those of you who are thinking about buying a second home as an investment property in Singapore. In this blog, we tell you about property investment in Singapore.

Factors that Impact Property Investment in Singapore

Whether you’ve previously invested in stocks, gold, ETFs, or designer handbags, your basic goal is the same as any other investor. And that is to make more money than you put in. In the context of the real estate market, this means purchasing when prices are low or at least reasonable. And selling when prices are higher. For this, you need to understand the six major factors that influence Singapore property prices. Read below to find out…

How Does the Property Look?

The state and condition of the property, particularly if it is old, can have an impact on the purchase price. Landed properties, for example, require a lot of maintenance and can be very expensive to fix up when they fall into disrepair, lowering the selling price. In contrast, if you recently renovated your property in a desirable style, you may be able to increase your asking price.

Infrastructure & Location

Property prices can rise as a result of improved transportation infrastructure or the construction of nearby amenities such as shopping malls, prestigious schools, and public libraries. As a general rule, improved transportation infrastructure, particularly new MRT stations within walking distance, can have a significant impact on property prices.

Lease

Much of Singapore’s residential property is leasehold, with 99-year leases being the most common. As the lease nears its end, the property’s value will plummet dramatically. Although freehold property retains its value much better over time, it is significantly more expensive to purchase upfront.

Policies of the Government

The government can intervene at any time with policies aimed at influencing property prices. Prices have been significantly suppressed as a result of the cooling measures implemented beginning in 2009.

Rates of Interest

Singapore’s interest rates are currently extremely low. That means it will cost you less to obtain a loan when purchasing a home. Higher interest rates, on average, discourage people from purchasing property, which has a negative impact on prices.

Economic Conditions

In a downturn, demand for and prices for real estate will fall as people tighten their belts, whereas, in a boom, the opposite is true. It is not so easy for property investment in Singapore. It is a much more complex process than you may think. Singapore is one of the costliest cities and you need to carefully weigh in all the above-mentioned factors before you purchase a property.


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