Singapore Real Estate is Making Promises

It isn’t that Singapore real estate is making verbal promises, but whenever look at the numbers you cannot deny that the market is very promising for buyers. When exploring the figures as of 2006, we notice that the private house price index showed a healthy .2% increase over its 3.9% increase from 2005. If you really want to get into the nitty gritty among the figures, then let’s take into consideration that property prices in Singapore are up 15.8% since 2004.

It’s not a mystery as to why the Singapore housing market is on the increase since the economy is more or less taking it with it. The economy showed a 7.9% gross domestic product growth in 2006 versus the 2005 growth rate of 6.4%. However, it isn’t merely the economic growth that is fueling the Singapore Real Estate promote. It is also new policies through the housing market which have been put into place in 2005. These new policies include:

The loan-to-value increased from 80% to 90%

Foreigners are certainly going to be able to purchase apartments due to certain rules no longer being put in place (foreign purchase no more has to meet the criteria of: the building must be over 6 stories high and must be a condominium).

The allowance of single people who aren’t related to jointly purchase properties via their Central Provident Fund (social security pension).

Cash down payments are down to 5% from the previous10% on home purchases.

Home ownership makes for a significant goal of the Singapore government. Due for Jade scape this commitment and cooperation with the Housing and Development Board, Monetary Authority of Singapore, Urban Redevelopment Board, and the Central Provident Fund, home ownership has grown to 92% from its previous 27% as recorded in the early 70s. This is a success story in itself since Singapore encountered a housing crisis not long after it acquired its independence, but Singapore real estate is certainly creating a statement.

Upon achieving economic stability, the interest in housing in Singapore has increased and also the housing prices have increased as well. Higher price of property makes for a stronger Singapore industry market and as long as these higher prices continue, so will the promises and expectations of real estate within Singapore. Without a doubt the numbers speak for themselves and they most certainly cannot be forgotten about.