Ever since the implementation of the latest cooling strategy of additional buyer stamp duty, numerous property professionals forsee in the future that private home sales will drop by about 5-10% , some even predict that the sales can drop as much as 20%. By the end of 2011, the URA’s most recent approximation for private residential property index showed a much sluggish trend in prices. Price index growth was 5.9% lower in 2011 compared to 2010.
At the beginning of 2012, the euro economy appears to be crumbling with financial expects foreseeing that the Euro debt crisis as well as US unfavourable economy situation might lead to a worldwide downtown in 2012 or beyond. Now, lets analyse on the property outlook in the Asia area– predominantly China and Hong Kong. The real estate market in Hong Kong is forecasted to be soften in 2012 , mainly due to a more sluggish 2011 sales transaction record. In year 2011, the governing bodies have implemented new taxes, increased the stamp duty as well as hold a sequence of land auctions , in hope of increasing supply significantly and to decrease the prices.
All these measures were being introduced to make housing in Hong Kong more affordable. After all , Hong Kong has one of the world’s most expensive property markets. According to the latest Reuters polls, the average home prices in China drop between 10-20% in the year 2012. Furthermore, China has reported that property tax might be imposed in more cities and this measure could bring another negative impact on the property market.
Evidently, the slow down in Hong Kong and China property market will attract more investors to invest in Singapore Properties, disregarding the recent cooling measures introduced in Singapore. Moreover, those rich tycoons are more than willing to pay for the additional 10% tax to invest in a peaceful country . Their investment funds will be in a safe area and these funds will eventually bring about long term appreciation. All these years, Singapore which has one of the lowest corruption rate in the world, has been globally recognised as the most peaceful place to reside in .
Typically , foreign investors are only allowed to purchase private housing as well as condominiums. Furthermore, local bank are providing very low interest rates of 1-1.5% for home loans currently as compared to 3-5% in the past few years, and this low interest rate will most likely be stable until 2013. Therefore, neighbouring countries are viewing Singapore as a safe and attractive country to put their funds in.
Where To Invest In Singapore Property
Over the last 2 years, the Singapore real estate market has been thriving significantly. Prices of property located in the central regions have increased by as much as 30%.Typically, foreigner investors are interested in buying properties located in the better locations such as district 9,10 and 11. Numerous properties in district 11 will get the Temporary Occupation Permit(TOP) in the year 2012. One good example is the Lincoln Residences situated at 28 Surrey Road off Newton. It is very near to United Square Shopping Mall as well as Novena MRT. This is quite an exclusive private condominium with a total of 99 units, comprising of 3/3+study/4/penthouse layout , and situated away from the main road with a serene environment. In addition, this is a freehold status which makes prices less volatile with economy changes.
Another project Rochelle which is situated at Keng Lee Road is anticipated to TOP in the year 2012/2013. This project comprises a combination of 2/3/3+study/penthouse units and is situated very near to the Newton MRT station, attracting numerous Singaporean and foreign buyers. Typically, Foreigners who buy Singapore condo originate from Indonesia or Malaysia, although there is an increasing trend of Chinese and Indian buyers as well. All in all, foreigners can easily source for different types of properties for either own family usage or for investment purposes in various district across Singapore.