5 Reasons To Buy Property In Singapore Right Now
Updated: Nov 19, 2022
1. It's a safe investment.
Singapore has been consistently ranked as one of the top countries in the world for its stability and lack of corruption, making it a very safe place to invest your money. The property market in Singapore is seen as a promising area for investments, luring investors and speculators hoping to capitalize on the dynamic environment of the country. To get started investing in Singapore real estate, there is no shortage of information available. Information on how to prevent traps is also crucial if you want to avoid turning into a property game statistic. While many real estate investors start out with the goal of being successful, very few will ever go past their first investment, and even fewer will build true riches by scaling the property ladder.
2. The government is pro-property ownership.
The Singaporean government understands the importance of property ownership and has made it easier for locals and foreigners alike to buy property through various initiatives such as the Housing Development Board (HDB) Scheme. Singapore is renowned for its political stability, openness to foreign investment, and ease of conducting business—all qualities that investors value.
In addition, Singaporean government policies encourage the development and expansion of sectors, businesses, and the startup ecosystem.
The government put in place financial assistance programs in 2020 to support anyone impacted by the COVID-19 pandemic, including individuals and businesses. The government would provide assistance to those who require longer time to repay their loan, the Monetary Authority of Singapore later reported.
The pandemic will undoubtedly continue to present difficulties for every industry going forward. It is crucial to be ready to capitalize on the expansion and recovery of various industries, especially the Singapore real estate market.
3. Property prices are still relatively affordable.
Compared to other major cities in Asia, Singapore remains one of the most affordable places to own a home with prices only expected to rise in the future. The Urban Land Institute (ULI) stated this in its inaugural study on the housing attainability index when compared to the most populated cities in the area. Data on housing and household income were obtained for Singapore and 28 cities in China, Japan, Australia, and South Korea by the non-profit education and research institute.
Due to the affordable Housing Development Board (HDB) units, with a median cost of US$379,283, the Republic has the highest homeownership rate at almost 90%. Less than 20% of the total housing stock are private dwellings, with a median price of US$1.13 million. With a median monthly rent of US$2,046 in Singapore, non-HDB homes there are the region's most costly to rent. The price for residences in Sydney is then $1,895 USD.
Hong Kong is the most costly city to rent in when comparing rent to income ratios, with monthly rent accounting for roughly 50% of median household income. Given Hong Kong's status as the most expensive city in the world, according to ULI, this is not surprising.
However, a third of the housing stock is made up of heavily subsidized public rental housing, which offers affordable options for renters.
4. There is a high demand for rental properties.
With more than 60% of Singaporeans living in HDB apartments, there is always a high demand for well-maintained private rental properties from tenants looking for better quality homes. However, price is a reflection of the market's mechanics of supply and demand. Price increases are often brought on by either a rise in demand or a fall in supply. The present increase in rents in Singapore's rental market is likely the result of a rise in rental demand as well as a delay in the delivery of new HDB flats and residential developments.
There could be a variety of reasons for the sharp increase in rental prices. The epidemic disrupted international supply chains and created a labor shortage in numerous industries. Public and private residential construction projects were postponed. Additionally, the popularity of working from home has prompted people to seek out larger living quarters.
5. Office space remains relevant.
Despite the fact that many companies now allow employees to work from home, real estate services and investment firm CBRE predicts that despite this trend continuing in 2021, there will still be opportunities in traditional office spaces due to the growth of the hybrid workforce. After all, the office is still crucial for encouraging employee engagement and productivity.
According to CBRE's Singapore Market Outlook 2021, this year's steady economic recovery and increases in employment are expected to help the office market as a whole. In addition, emerging businesses like the technology, financial services, and professional services sectors will sustain office demand in addition to traditional tenants like banks and accounting firms.
Author By:
Brian Loh CN
MSc. Applied Finance, University of Adelaide, Australia