Singapore’s Property in Sweet Spot of Affordability
Singapore’s property is in a sweet spot of affordability, making it a likely target of an investment frenzy. The cue for that may come from so-called en bloc sales, where builders buy out all existing apartment owners and redevelop the land for newer, bigger projects. After a two-year hiatus, the ingredients for this market to spring back to life are in place. A block of 10 terrace homes and a bungalow sold for S$32.8 million ($25 million) in November. Compared with the previous cycle of 2016-2018, when S$19 billion of bulk deals were concluded, it’s still early days. But once homes become ATMs, the government may not wait too long to rein in the fervor. The tiny island is ever-cautious about not letting the price of land — a precious commodity — move too far away from economic fundamentals. It may be extra vigilant this time around. Hong Kong’s future as a global financial center is under a cloud as China tightens its grip on affairs. Post-Brexit London comes with its own uncertainties. At the same time, vast pools of cheap money are sloshing around everywhere, looking for yield in everything from stocks to cryptocurrencies.
Tags : INTERNATIONAL residential Builders affordability Singapore’s Property