{"id":35294,"date":"2016-11-22T11:53:14","date_gmt":"2016-11-22T04:53:14","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/thinking-about-investing-in-singapore-read-this-first\/"},"modified":"2016-11-22T12:04:47","modified_gmt":"2016-11-22T05:04:47","slug":"thinking-about-investing-in-singapore-read-this-first","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/thinking-about-investing-in-singapore-read-this-first\/","title":{"rendered":"Thinking about investing in Singapore? Read this first"},"content":{"rendered":"


\nHow to buy wisely in a difficult climate
\nSingapore National Day celebration. Noppasin\/Shutterstock
\nWhile Singapore has long been South East Asia\u2019s biggest success story (with property prices to match), the current climate poses another, less rosy picture.
\nWith a declining economy and fears of a recession in the air, real estate values have hit new lows, and record numbers of agents are turning their backs on the business entirely. The downturn may seem sudden to some, but for those keeping a beady eye on things, this was to be expected.
\n\u201cSingapore is at a crossroads at this point,\u201d says Dan Toh, founder and CEO of consulting firm RunningStream International. \u201cThe country is facing new challenges that require it to innovate its way through the rise of ASEAN and a very different world economic landscape due to globalization.\u201d
\nSingapore has achieved phenomenal economic progress over the last 50 years. However, as a country reliant on outside resources, its continued success depends on a great many factors outside its immediate control.
\nHenderson Waves bridge at Mount Faber Park, Singapore. NavinTar \/ Shutterstock.com
\n\u201cThe equalization of economies in ASEAN means that the neighboring countries are getting increasingly sophisticated. Infrastructural advantage is being eroded by the pervasiveness of the internet, and its geographical advantage by the progress of regional logistic capabilities,\u201d Toh explains.
\nThis is especially true in light of China\u2019s effort to improve the region through rails, ports and shipping canals. Singapore will likely be collateral damage in the process.
\nWhile in the real estate world, cooling measures may have effectively moderated price growth, the overall declining economy poses a much greater risk. Singapore is seeing a drastic fall in transactions and rental demand as the country becomes less attractive both in terms of costs and infrastructural advantages for business. Fewer jobs and fewer foreigners equate to less overall demand, especially in the luxury segment.
\n\u201cIncreasing unemployment and a weak rental market means that now is not the best time to be investment hunting in Singapore,\u201d Toh says. \u201cThat said, Singapore will remain a key player in ASEAN and will continue to serve as a base for many businesses. The property market will certainly not crash.\u201d
\nIf one has to buy now, Toh suggests bargain hunting in prime zones, citing Districts 1, 2, 6, 9, 10 and 11 as districts to watch, whereas River Valley, Newton, Tanglin, Upper Bukit Timah are all pretty exposed to the mid tier foreigners and thus hold significant market risks.
\nMore: Singapore private home sales hit 15-month high
\nA good bargain, he explains, would be in the area of 20 percent discount. \u201cNaturally, finding such deals will not be easy. But weak rental conditions and potential weakening of the SGD alongside rising interest rates may motivate foreign owners to seek an exit. Locals will hold out better.\u201d
\nIn terms of the kind of properties investors should consider, two bedrooms allows for the best growth potential and balanced yield, Toh advises. Buyers should only consider buying now if they are wanting to live in \u2013 buying a rental property would not be wise given the current outlook.
\nIdeally though, investors would be well advised to wait a couple of years, and late 2017 and early 2018 is when Toh predicts the country\u2019s fortunes may start to change.
\n\u201cCurrently, Singapore prices have escalated to a point where it is non viable,\u201d he says. \u201cGiven the current economic challenges I suspect the government will be happy to let the prices fall to increase the country\u2019s competitiveness, and unless business conditions improve, I wouldn\u2019t see the motivation to let prices rise again just yet.\u201d
\nInvestors should not try to catch a falling knife
\nFor this to happen, Singapore will need to reinvent itself and find a new catalyst for growth. At this point, Toh says, this still seems a little distance away, however, he is confident that Singapore\u2019s star will soon rise again.
\n\u201cThe country\u2019s track record should inspire some amount of investor confidence. Singapore will remain a key market, but for its property to boom again we will need to see some major new directions. Only when that happens would I be keen to call a property bull market.
\n\u201cIn other words, investors should not try to catch a falling knife, and instead wait for signs of new upward economic momentum.\u201d
\nRead next: Developers: How can you stay competitive in Singapore?
\n
\nSource : property-report.com
\nRead more…Thinking about investing in Singapore? Read this first<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

How to buy wisely in a difficult climate Singapore National Day celebration. Noppasin\/Shutterstock While Singapore...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-35294","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9bg","jetpack-related-posts":[{"id":121883,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-buildings-to-meet-higher-standards-under-revised-green-certification-scheme\/","url_meta":{"origin":35294,"position":0},"title":"Singapore buildings to meet higher standards under revised green certification scheme","date":"September 8, 2021","format":false,"excerpt":"\r The BCA Green Mark 2021 scheme is part of the Singapore Green Building Masterplan, with the aim of encouraging the industry and professionals to\u00a0develop green building solutions. 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(Photo: CDL) City Developments Limited (CDL) has received the \u2018Best Sustainability Report for Established Reporters (Mainboard and Catalist)\u2019 at the inaugural Singapore Sustainability Reporting Awards (SSRA) held on Tuesday (12 September). Organised by the Singapore Institute\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":117884,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-median-condo-prices-up-in-june-2020\/","url_meta":{"origin":35294,"position":3},"title":"Singapore Median Condo Prices Up in June 2020","date":"July 21, 2020","format":false,"excerpt":"\r Developers\u2019 condo sales more than doubled in June to 998 units from the previous month, reported Singapore Business Review citing Jefferies. Median prices also registered an increase from prior months during the lockdown. 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