Singapore Real Estate Market Takes A Battering With New Cooling Measures

Many may ask: “Is Singapore real estate still worth a consideration for investors?”

This came when the Singapore government imposed cooling measure to the real estate market on 5th July 2018 yet again. This round of cooling measure came almost 5 years after the last cooling measure in Dec 2013 where the property market languished after implementing Total Debt Servicing Ratio on the loan that buyers are able to take.

The property sales transactions and prices have been subdued for many years after the last cooling measures, and only picked up steam in the later part of 2017. Developers in Singapore were starving from the lack of government land sale and desperately needed to replenish their land bank, and hence, went into collective sale of older condominium buildings, starting from 2016, engaging a low gear as they are still wary on the market recovery. The collective sale activities sped up only in 2017 and went full steam into 2018, with purchases made at record prices and transactions at high volume, and that worries the government. The Monetary Authority Of Singapore (MAS) has probably been keeping track of the collective sales development in early 2017, and is worried that the rising price that the developers paid and the volume of new houses that will be generated by the collective sale will create bubble in the property market, drives home the swift action from MAS to increase the Additional Buyer Stamp Duty and to decrease the Loan-To-Value limit with almost immediate effect from the day of announcement.

Many investors and buyers are questioning on whether Singapore real estate is still worth investing and buying after those new cooling measures are being implemented. To put things in perspective, if there is no significant growth potential in Singapore’s property market, these measures won’t be implemented by the government. Yes, the new measure is to prevent the “bubbles” from forming, but there has to be liquid for bubbles to form, that is, Singapore must have the substance and fundamentals for these bubbles to form, which bodes well for the mid to long term market.

Investors might want to look at Fourth Avenue Residences condo by Allgreen Properties Ltd, which is a 99 years leasehold project situated at 2 Fourth Avenue, along Bukit Timah Road, and one of the highlight of this project is that it’s conveniently situated besides Sixth Avenue MRT Station (Downtown Line). Fourth Avenue Residences Singapore is of great potential and is poised for great capital appreciation in the mid to long term due to it being situated in the central area of Singapore, nestled in the heart of nature and has access to fantastic transport infrastructure. Meticulous planning from the architect will also ensure that Fourth Avenue Residences floor plan will be one of efficient and caters to various buyers of different demographics, and we can be expecting one bedroom units to 5 bedroom units with quality and luxurious finishing to befit this high end development in District 9, one of the most up-class district of Singapore.

Media Contact
Company Name: ERA Realty Network Pte Ltd
Contact Person: Developer Sales Team
Email: Send Email
Phone: +65 6100 0056
Country: Singapore
Website: https://www.fourth-avenueresidences.com