Property investment: Is it still worth it in 2020?

Singaporeans have been very vocal in recent years about rising in property prices in Singapore. In fact, prices of new launch condo shown on have skyrocketed in recent years after the recovery from the US financial crisis of 2008. However, the upward rising price of properties in the Singaporean market is becoming so much that it is pricing out many first time buyers from the market. With cheap financing available all across the world today, there is a huge inflow of funds into the Singapore Property Market in Singapore.

Demand & Supply of Singapore Property

There are currently 5.6 million people in Singapore. In Feb 2013, Singapore came out with a white paper which projects 6.9 million people in the small city-state of Singapore by 2030. Currently, there is not enough housing in Singapore due to the sudden influx of people into Singapore in the past two years. How about in 17 years’ time? With so much increase in demand for housing and limited land in Singapore, the property market in Singapore is set to become red hot by 2030.

Singapore is an Investment Haven

Singapore has over the years prove to be one of the easiest countries in the world to do business. On top of this, it is a country which emphasizes law and order. The regulatory bodies have also ensured that there are strict laws in place to protect buyers and investors. One strong reason why Singapore property market will continue to flourish is that any country which emphasizes protecting investors will always attract investments. to protect people’s money in the Singapore property market there are heavy laws and restriction to put the activities of foreign investors at bay.

Singapore has been able to attract indigenous property investors and at the same time investors from other countries of the world during recent years. Property buyers, having a futuristic approach, have been pretty active in this country from many years.

Interest rates and SIBOR (Singapore Interbank Offered Rate) for home buyers are at their lowest level at this point of history, and it is useless to think that they will fall further. Expectations are that they may only rise now in the coming years. Various home planners are actively taking part in building condominiums and flats for the public in Singapore.

Over 30,000 condominiums from private resources and more than 50,000 flats from HDB (Housing & Development Board) have been added to the estate market. For this reason, people have been able to own more homes for their personal use and equally for rental purposes. Since the year 2008, the government of Singapore has realized its duty of providing homes to the public.

The real-estate related strategy analysts have been divided over the issue as they are in a dilemma about the future of property prices. It is difficult for them to make an educated guess over the future of the real-estate business in Singapore. Now, the lowest ever interest rate is luring, and people are of the view that it is the best time to buy condominiums or flats.

Real-estate strategists are also thinking about the coming years when even more residential and commercial properties will be available; many new projects will be completed soon. which provides new prospects for buyers who will get these properties at depressed rates.

This has again led people to believe in the situation when investors from other countries will also decrease their property buying activities in Singapore. The financial analysts say that Chinese investors are finding cash problems even in China, and this problem will further aggravate in the coming years. As the foreign property buyers have mostly been coming from China, it can rightly be guessed that they will not be able to invest in Singapore when they will have money problems for investment even in their own country.

The lowest interest rates, the advantages of having a property, and the lowest prices are compelling people to have, at least, their residential apartments, flats, condominiums or commercial properties. It may prove a blessing in future recession years when they will not have to pay rent on their flats or commercial properties.

Most of the discussions show only the probabilities that are against investment in the property business. The people, with futuristic approach of real-estate, are hopeful about this business; they count a lot many advantages of home loans and properties.

The reason why Singapore property Market will still be worth it in 2020.

Currently, In Singapore, only about 15% of properties are private properties. This means there are 85% of the market that foreigners will not be able to buy. Private properties, in this case, refers to apartments, condominiums and landed properties. To use the basic economic terms, if there is a limited supply of private properties for investment and with cheap financing providing liquidity for strong demand, property prices are all set to head up north. With the projected population set to rise to 6.9 million, the increase in property prices in Singapore is not finished. There is still room for growth.

As it stands right now the property market in Singapore is poised to become really competitive. With a projected 6.9 million people on limited land of only 700 square kilometers, the market will be hotly contested. While economic factors will affect property prices in the short term, in the long run, demand and supply will dictate how the property market will move. Right now, it looks like demand will outstrip supply, and it will be a boom period for the property investor as they will be earning big from their investment.

Peter is a freelance writer with more than eight years of experience covering topics in politics. He was one of the guys that were here when the started.