Singapore government has put in place several cooling measures that aims to limit the increase in real estate price in Singapore. This move is seen as to provide affordable public housing for Singapore and building a sustainable growth for Singapore. With stricter measures, it is increasing hard for investor to buy into Singapore real estate. However, should you avoid totally?
Indeed, the number of prospective buyers at show flats has noticeably decreased when Singapore government announced the new ruling on 12 Jan 2013. However, low interest rates in Singapore is favorable for investment in Singapore. Because of this, the demands for real estate in Singapore will not tumble and the price will not plunge. Remember, Singapore will not want its real estate price to plunge. But because the prices are increasing uncontrollably, there is a need to place cooling measures to maintain a healthy growth.
The fundamental demand for real estate will not change much unless interest rates go up faster than expected. And there is a remote possibility of US Fed raising rates next year. In Dec 2012, the central bank pledged to keep its key short term rate near zero until the US unemployment rate to dip below 6.5% and inflation to rise above 2.5%. Previously, Fed has said that it will keep the benchmark rate low at least till mid 2015. The current unemployment rate as of Dec 2012 is at 7.8%. However, looking at the US economy now, the chances of raising the interest rates in the near term should not be likely. Hence, the interest rates in Singapore will still continue to remain low for a period of time.
You need to be stricter in your criteria in selecting real estate. New launch development is an option that you can seriously consider. Many developers are now offering discounts to their exist projects and projects to come. I would recommend two of them that is really worth considering. They are Urban Vista as well as D’leedon.
You can feel free to visit the above link to view more details on the property development. His website also feature some of the latest updates in Singapore real estate. There is an old chinese saying that “opportunities arises when there is a crisis”. Many people will just sit around and watch what is the outcome of this crisis. But only those who are willing to make an effort to think about how they can benefit from this “bad times” will taste the fruits of success. So make good use of this opportunity and ride on the wave of success.