Singapore’s real estate market has long been an area of keen interest due to its steady changes and government efforts to promote equilibrium and sustainability. For corporate world professionals and potential investors, staying abreast of changes within this sector is critical.
Recent Market Fluctuations
Over the last year, Singaporean property market has shown great resilience, witnessing an upturn in transaction volumes and prices after initially feeling the effects of Covid-19 pandemic. Urban Redevelopment Authority reports a 7% annual price rise among private residential properties since 2018, due mainly to low interest rates coupled with reduced property purchases demand.
As we approach the end of pandemic and an increase in interest rates, Singapore’s property market could face challenges in the coming months. Industry experts anticipate a potential downturn and anticipate government action to maintain stability within this sector.
Examining Government Interventions
To maintain the stability and sustainability of its property market, Singapore government has taken an aggressive stance. They have introduced numerous regulations in order to counter rising property prices and thwart any real estate bubbles from forming.
One notable policy is Additional Buyer’s Stamp Duty (ABSD), a tax levied on buyers of additional properties. When ABSD rates increased in 2018, it led to reduced property market activity and the government implemented restrictions on how many units in any one project can be sold off to foreign investors.
Additionally, the Singapore government has instituted initiatives like the Green Mark Scheme to promote sustainability in property market development, encouraging developers to build eco-friendly buildings thereby supporting Singapore’s goal of becoming a green city.
Scouting Business Prospects
Singapore’s property industry provides numerous opportunities for businesses, despite any possible barriers. Rental properties present one such source of growth.
Due to Singapore’s exorbitant property ownership costs, many individuals and families opt for rental properties instead. This has created an increased demand for rentals in premium areas like the Central Business District; businesses offering high-quality rentals with desirable amenities could see significant upside from this expanding market.
Sustainable and green property developments provide another promising path. Thanks to government commitments to sustainability, companies who can design green buildings such as Grand Dunman will likely reap benefits from an increasing demand for such properties.
Government plans for developing new townships and estates such as Greater Southern Waterfront and Punggol Digital District present numerous opportunities for businesses in the property sector such as developers, architects, and construction companies.
Singapore’s property market is constantly shifting and requires an informed business audience in order to stay abreast of new trends and shifts. While hurdles exist for growth opportunities within rental properties and sustainable real estate projects, growth opportunities also exist within these two segments.