While the overwhelming majority of the Singapore economy has been growing significantly – especially in new business and startup sectors – the real estate market in Singapore has been a bit of a disappointment, with home and property prices lagging and declining over the last five years or so.
However, real estate experts the world over believe that the Singapore real estate market is in store for a significant turnaround and major forward. Many experts agree that the Singapore property values right now are almost unbelievably low and depressed, and that double-digit growth by the end of 2018 is nowhere near unreasonable.
Many agree that the reason behind the low cost of Singapore real estate right now has a lot to do with the “property cooling” measures that have been put in place by the Singapore government and continue to remain in place, but the major influx of cash and capital, not to mention a huge boost in the population of Singapore from outsiders looking to capitalize on the potential this nation offers is driving the prices of properties up significantly.
Morgan Stanley believe that property prices will rise between 5% and 10% before the end of 2017, and by the time the end of 2018 rolls around we could be looking at property value prices that jump anywhere between 15% and 20% compared to where they are today.
A lot of experts think that the properties that are going to be most impacted by these price increases are the mid-range and high-end segments of the market, with the lower end segment of the market climbing as well just not nearly as rapidly. Of course, once the mid-range and high-end properties begin to become exhausted the lower end is going to become much more in demand – and that’s when the “tail end” of this real estate boom is going to go into full effect.
There’s a lot of evidence behind this optimism, as the Singapore government, Singapore businesses, and Singapore capital organizations have been pumping a tremendous amount of investment into the Australian and Chinese property markets. Now that those opportunities are starting to dry up, these Singapore operations are starting to look closer to home to invest their capital and Singapore properties represents a perfect opportunity.
On top of that, outside investment into Singapore real estate is starting to pour in at a much faster rate as well. For one reason or another, outside investment into the Singapore real estate market wasn’t really that attractive to operations around the world, but nothing could be further from the truth today.
As Singapore cements itself and its reputation as the place to build a business in the new global economy, and a hotbed for startups the same way that Silicon Valley is in the United States, more and more people globally are going to start to pay attention to the Singapore real estate market and get as involved as possible.
We could be looking at the new “gold rush” in the Singapore real estate market very soon!