The property market in Singapore is primarily driven by government policies, land supply, new condo launch rates and economic growth rate of Singapore. The government policies are formed to increase property value as well as to control the property market in Singapore. Land supply of Singapore has increased over the years from new condo launch rates of Singapore have also increased since 2008. In addition to that, economic growth rate of Singapore is at an all-time high at about 2% every year which can be attributed to new condo launch rates of Singapore.
CRBE – Singapore Real Estate Market Outlook 2021
Factors of the property market in Singapore- economic growth rate, residential supply.
The main driving factors for the market are economic growth which can be attributed to new condo launch rates and an increase in land supplies as well as a change in demand from domestic buyers. Domestic buyer behavior has also decreased due to inflation, high living expenses and unemployment within Singapore. Residential supply is driven by three important groups: government policies that favor home ownership; financing schemes like HDB loan caps; low interest rate policy carried out by NDBs (National Development Bank) that has helped increase residential supply.
Factors of the property market in Singapore- demand, new home construction rate, population growth rate.
Demand for housing can be attributed to a number of factors such as low interest rates implemented by city governments; increases in wages and other incomes that enable people to buy more expensive homes with higher average value per square foot than before; increasing immigration numbers due to foreign investment into Singapore leading to an increase in domestic demand which is driven primarily by existing households. On top of that, new home construction rates have increased along with NDBs Housing Scheme Policy since 2008 which has increased land supplies in Singapore.
Factors of the property market in Singapore- population growth rate, new home construction rate.
Singapore’s population is growing at a high pace due to immigration and an increase in domestic fertility rates since 2008, this has led to higher demand for houses both foreign and local that have helped keep prices elevated for residences with lower point on average value per square foot than before.
Factors of the property market in Singapore- education policies, foreign workers.
Singapore’s public education system remains crucial to domestic demand due to its high quality and access for graduates from certain universities overseas who often need jobs that require advanced training or degrees that Singaporean institutions do not provide. Those unskilled Singaporeans are educated into skilled laborers at an affordable cost with a rapid increase in settlements in wealthy places like Orchard Road where these new immigrants can afford homes on lower priced properties than demander local buyers which also limits competition with established residents of this area as well as other parts of
Singapore’s 4% population increase after its independence till 1997, then high immigration and increased fertility rates since 2008 have all incited the growth of the housing market which has led to a steady rise in home prices due to demand for homes across various residential areas because of Singaporean policies that encourage new arrivals over established citizens like offshore immigrants who may not be able justify buying expensive property on lower priced properties while they are still doing well as skilled laborers with access to public education benefiting from NDBs Housing Scheme policy implemented by The Prime Minister Lee Hsien Loong which provided loans and Subsidies for low-income Singaporeans to make their first home purchase.
Singapore’s high immigration and fertility rates leading to rising demand has also contributed to an increase in property values because foreign workers often have family members who can afford a property on the island, which adds artificially high liquidity or even price appreciation.
Culturally, there is a lot of diversity with housing preferences across different races and ethnicities in Singapore. Some places have particular architecture styles that are more preferred by some groups than others. A good example would be the major black-majority areas like Chinatown which has a densely packed row of three-story buildings with projections instead of balconies or high ceilings that could rise over 100 feet into the sky called “chimneys” like most other Southeast Asian cities; whereas in Orchard Road where Singapore’s new immigrants tend to settle, homes’ exterior and interior design as well as architectural
features like the higher ceilings are more European-inspired with balconies that allow for an unobstructed outlook in all directions.
“To some people, it is worth paying a premium to live near good schools or riverside homes.” The prices of housing have been increasing at a faster rate than most other places because of demand from both foreigners and locals due to Singaporean policies which encourage foreign workers to move over established citizens like offshore immigrants who may not be able justify buying expensive property on lower priced properties as they are still doing well as skilled laborers with access to public education benefiting from NDBs Housing and the elderly who may be more inclined to pass down their property to children instead of selling. This has led some Singaporean citizens to claim that these policies have made housing unaffordable for them, hence this is why there was an influx in foreign workers as a consequence.