It isn't that Singapore real estate is making verbal promises, but when you look at the numbers you cannot deny that the market is very promising for buyers. When looking at the figures as of 2006, we see that the private residential property price index showed a healthy 10.2% increase over its 3.9% increase from 2005. If you really want to get into the nitty gritty of the figures, then let's take into consideration that property prices in Singapore are up 15.8% since 2004.
It's not a mystery as to why the Singapore real estate market is on the rise since the economy is more or less taking it with it. The economy showed a 7.9% gross domestic product growth in 2006 versus the 2005 growth rate of 6.4%. However, it isn't just the economic growth that is fueling the Singapore Real Estate market. It is also new policies within the housing market that were put into place in 2005. These new policies include:
The loan-to-value increased from 80% to 90%
Foreigners are more likely to be able to purchase lentor hill residences apartments due to certain rules no longer being put in place (foreign purchase no longer has to meet the criteria of: the building must be over 6 stories high and must be a condominium).
The allowance of single people who are not related to jointly purchase properties via their Central Provident Fund (social security pension).
Cash down payments are down to 5% from the previous10% on home purchases.
Home ownership has become a significant goal of the Singapore government. Due to this commitment and cooperation with the Housing and Development Board, Monetary Authority of Singapore, Urban Redevelopment Board, and the Central Provident Fund, home ownership has increased to 92% from its previous 27% as recorded in 1970. This is a success story in itself since Singapore encountered a housing crisis not long after it acquired its independence, but now Singapore real estate is certainly making a statement.
Upon achieving economic stability, the demand for housing in Singapore has increased and the housing prices have increased as well. The higher price of property makes for a stronger Singapore real estate market and as long as these higher prices continue, so will the promises and high expectations of real estate within Singapore. Without a doubt the numbers speak for themselves and they most certainly cannot be overlooked.
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