Singapore is becoming a destination of choice for both work and stay. There are a number of factors why the Singapore property market remains very vibrant. It is propelled by our double-digit economic recovery as Singapore rebounded from a low base as well as the strong performance of key economies in Asia and most importantly, it is driven by our nation’s attractiveness as a Global City. As a result, foreigners are making Singapore their home and, therefore, investing in buying flats and condominiums, with some even becoming PRs to enable themselves to purchase landed property. With the economy picking up and the return of market confidence, Singaporeans too are looking to more increased prestige and affluent type of living particularly from the higher-income individuals and household and long-term investors.
Foreigners have often been lured here due to the ease of doing business, political stability, ideal geographical location and efficiency. Besides, Singapore has also managed to successfully reinvent itself to a buzzing place especially with recent events like the Formula One and the opening of its two new IRs- Marina Bay Sands and Resorts World Sentosa. This has helped put our city on the world map and on the radar of foreign investors and Singapore proved to be one of the hottest real estate markets in the world, attracting the rich from far and beyond.
We are confident that the Singapore property market, particularly the luxury segment, will continue to create value for home owners and investors in the long term and the cooling measures are in line with the government’s long horizon objectives to maintain a stable and sustainable property market. This sustainability provides the reason for us to be upbeat on the property market given that Singapore’s economic fundamentals remain strong and steady. With the recent string of host events, Singapore can expect more MICE (meetings, incentives, conventions and exhibitions) business and visitor arrivals. Upcoming projects and events will further position Singapore as a wealth management hub and a global city which will in turn draw more PRs and foreign investors into this tiny red dot island on the map.
The cooling measures have no doubt injected uncertainty in the market. However, we also expect that the high-end residential market would not be severely hit by the government measures due to the reasons that were mentioned earlier in the report. Hence, demand for high-end property should remain buoyant because of investors’ liquidity, dynamic demographic and expected low interest rates for the next few quarters up to Year 2012.
Newspapers & News Cheam, J. (6th September, 2010). Lacklustre property sales as cautious mood prevails. Source: The Straits Times Chen, G. (14th June, 2010). S’pore millionaire club the fastest growing. Source, The Straits Time: http://www.asiaone.com/Business/News/My+Money/Story/A1Story20100614-221959.html Huang, J. (25th October, 2010). Record-low Sibor to hit local bank earnings. Source, TodayOnline | Business: http://www.todayonline.com/Business/EDC101025-0000063/Record-low-Sibor-to-hit-local-bank-earnings Kok, M. (23rd September, 2010). Singapore tops expat income. Source, The Straits Times: http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_582046.html