As we know that population is growing enormously and our resource is the same since long, even it is degrading day by day. Same as the population is growing but the land is limited. If we talk about real estate then the land is absolutely important. The demand for real estate in Singapore is really high because the city is just 719 square kilometer which is the home of 5.61 lakh. As we know Singapore is situated in the heart of Asia and has an outstanding attraction among the foreigner. Real estate has a great scope in Singapore; hence government is also allowing a foreign investor to invest in real estate.
Evaluating the real state from the beginning
According to the report, the property value had a greater impact on a population boom, since the population was the main reason for the economic blast in Singapore. When the economy of the world was holding its best pace, Singapore was also doing great side by side. Same as when world economy lowered the value of real estate get collapsed because the real estate in Singapore is highly dependent on the investor. At the time of boom, the real estate was expending flawlessly and when bust arrived the investors decline their money. If we talk about the 2008 financial crises then the real estate had lowered by 17.6% but after some time, it added up to 87.7% in 2013 which was the highest record of real estate in Singapore.
What about the current market
After reaching the highest peak in 2013, real estate has been declined. It shows the continuous slide on land as well as non-landed as 10%, 8% respectively which was the main cause of mortgage loan’s slow growth. As we know that the real estate market was affected during Asian Financial crises in 1990 and again in financial crisis 2008. But in 2009, the property price nearly doubled which catch the concern of many observers regarding real estate in Singapore. All these inflation and depreciation is in government hand if they control the real estate price then there will be stability among investor as well as homeowners. But the beginning of 2018 is promising because the economic growth is on the way which is influencing real estate market. Due to fluctuation in an economy where many inverters had shortened their hand, now they are coming forward to invest in Singapore real estate market.
Recently, the government of Singapore has taken some steps to cool down the real estate market. The government has offered that the cost of repayment debt should not be more than 60% of the monthly income of borrowers. Apart from this, if a buyer owns the property then he will have to pay higher taxes in accordance with this purchase. If a buyer is holding the property on the basis of short terms, he will have to pay more advanced stamp duties or taxes. So the government of Singapore is implementing several rules to slow down the uncertainty of the real estate. Hence, the declination of real estate price will offer a more affordable price, in order to buy a home for the first time.