Housing Market Singapore
After announcement of anti-speculation measures to cool the property prices down in Singapore it was expected that the prices would remain affordable for the middle and low income class. The government yet again intervened in the real estate market to ensure the implementation of the rules announced. Earlier in Feb this year government took certain corrective measures to have the market stabilized. The government’s interventions in the real estate business have received a mix response from different quarters.
It is said that if the official involvement continues it badly affects the growth of any market as the people will be unsure of what the government wants and what may be there the next day. Contrary to these views the other side takes the government involvement in a positive sense. This is being viewed as the government’s resolve and political commitment to ensure the implementation of the corrective measures announced on Aug 30. The government is actually in pursuance of its aim to bring the property prices to realistic and bearable levels. The price should remain affordable to all the classes of the society.
In fact there are two most prominent factors in driving the high prices of the property in the region especially in China, Hong Kong and Singapore. One being the actual economic growth rate and the second could be the temporary hype due to investments by the investors, builders and the buyers.
An important question arises that how common people are tempted to invest in the real estate business in Singapore. It has a simple answer that the returns being paid by the banks are low once compared with the dividends being earned by investment in the real estate business. That is the one of the main causes of this ever growing price hike trends in housing and other property related businesses.
The property prices are said to be highly unpredictable and the government’s time and again intervention is indicative of the sincere efforts to cool the prices down.
The funds keep flowing in the market. One source is even said to have been the government’s permission to divert some amount of the provident funds into the private businesses. Even after the retirement people tend to invest their hard earned money into the real estate for living a comfortable life. This practice is not free from the dangers of collapse of the market thereby risking the entire investment in a matter of days. It is advised by the experts on real estate business to refrain from such like short term investments.
Year 1997 witnessed the slump in real estate prices. Yet again it could go to the new heights leaving the 1996 prices far behind. Recent down trend of the property business in US has been critically viewed by the experts to compare with the other markets around the globe. Once the market prices are dropped the house owners have no option for selling their home and go for better job opportunities in other cities.
Besides taking remedial measures it remains the government’s sole responsibility to ensure availability of cost effective business opportunities to all classes of the society.
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