Singapore is among top most populated countries in the world where land has become an extremely valuable commodity. Aside too many locals living in the relatively small area and looking for their real estate or land property, Singapore is quite an attractive destination for foreign investors due to its developing industry and requirements for possessing real estates over there. These extreme demands at real estate market altogether with strivings of foreign investors correlating with phases of positive economy fluctuations have created risky and unstable real estate market in Singapore.
Brief overview of the years behind
Approximately a decade ago things started to change drastically. Prices of real estates in Singapore have pretty much doubled in the period since ’98 to 2008. Ever since the increased demands of the market and foreign interest have pumped prices even higher until there was a risk of creating an economic bubble and crowded real estate market with the property that is way too expensive. An obvious declining in prices happened during global financial crises, but once other countries, as well as Singapore itself, has emerged out of it, real estate prices kept raising.
Steady declining over few past years
Since 2013. Apartments, family houses, condos, commercial buildings and other real estates have been showing a continuous declining in market prices. This emerged as the consequence of several economic fluctuations, but the outcome is desired. Declined real estate prices give chances to small businesses, new families and many other investors to take part in real estate market here. As much as the uncontrolled increase was threatening to create an economic bubble, uncontrolled declining might cause the collapse of the market. This is where Singapore’s government intervened by applying some economic models that managed to create the balance of Central Florida real estate market.
Preventing USA scenario
Singapore government is currently enacting several measurements to prevent USA scenario of real estate market collapse. Florida has a good model that proved as effective in protecting landowners of unexpected debts. Namely, if the real estate prices would collapse dramatically, every landowner with a mortgage on the property would face significant debt, since selling value of his property would decline drastically. Government actions focused on higher stamp duties on purchased property, and debt repayment costs are designed to provide slow declining of real estate prices and thus protection of landowners and investors.