If you intend to join the real estate industry, do not just look at the face value of a property. After doing your due diligence to ensure the property is legitimate and meets your standards, the work does not stop there. Whether you intend to use the property with your family, rent it out, or even put it on sale, there are market trends that will affect its value.
For some, you may need expert advice when making such a decision. The financial analysis will come in handy when making such a decision. Therefore, it is advisable to talk to an expert before investing in a property.
If, for instance, you wish to invest in a condominium like Martin Modern, take your time and analyze market trends that may shape the property today and in future. To start you off, here are top trends that will affect your investment in Singapore.
The Economic boom and bust cycles
Singaporeans’ desire to own real estate has seen significant interest from foreign investors. The influx of foreign investors in real estate will affect the value of your property positively especially if it is within the location of their interest. Whenever the global economy is in crisis, the real estate value in Singapore is prone to collapse. In equal measure, when the world economy is surging higher the property value increases as well. The increase is due to investor appetite, which heavily influences real estate’s demand. During booms, the investor mania drives up the property prices while during busts, the excess demand from investors disappears as their wallets are tighter thus your investment decline in value.
Exponential growth in human population
When an area experiences high population growth, there is likely to be a high demand for land and housing. If you have plans of investing in real estate in such an area, you are likely to spend more due to the high demand. The law of demand and supply applies to every economy. Therefore, it is wise to conduct your research and invest in property that is within a region that shows signs of growth. Go for areas that will attract tenants within a short period. That way, you will enjoy a return on investment.
Government policies and measures that control the prices.
Since 2013, the Singapore government has been enacting measures to slow down growth and help provide a “soft landing” to the current market prices. The current market reached its peak in the third quarter of 2013, resulting in a slow growth in mortgage loans for Singaporean households. If the government enacts measures that gradually, rein in real estate prices as opposed to a collapse in housing prices, the environment will become favourable for property owners; hence helping both investors and homeowners by providing some stability in their balance sheets.
Location of the property
The value of a location increases vastly when everything important within reach. Every seasoned home buyer and investor know that the key to acquiring value is location. If you intend to invest in the real estate industry, target an area that has a good road network. It would be difficult to sell a property that will take you ages to access due to its poor roads or transport reach. However, if you invest in an easy to access area with lots of public amenities, potential buyers will come knocking. Head down to the condo showflat location itself to find out if the area is easily accessible by bus, train and car. The result of such an advantage is an increase in the value of the property.
For any business venture to flourish, the political stability of a country plays a significant role. Singapore is no exception. Once the political environment is conducive, investors are likely to stream in and will be willing to invest in the country. The stability will increase the value of property and sellers will have a field day disposing of their assets.
Type of property
The kind of property you intend to invest in will determine your bottom line. There are types of properties that attract buyers faster than others. Therefore, when choosing a property to invest in, analyze market trends and align your investment with customer interests in mind. If you intend to put up your property for resale later, think about the buyer. If potential buyers wish to live in condominiums, you may consider investing in one.
Use these tips when investing in real estate for an objective approach towards the industry. When looking for property to invest in, remember to deal with reputable dealers to ensure you recoup value for money and get property in prime areas and with high-quality materials.