Singapore’s property market has gone through a lot in the last couple of years. 2019 was not particularly an excellent year, especially the first two quarters. However, if we look at some stats and data from the last quarter, the Singapore property is set for a positive change.
Here are all the good things we expect to see in 2020.
Harmony Between Demand and Supply
The simple truth is that there hasn’t been any harmony between demand and development in the recent few years. Developers were all over the place, and they weren’t putting too much attention on how big the demand was. At that time, they thought that it would catch up with them as it did in the past years. Troubles started when it didn’t.
That is why they have committed to a more analytical approach, hired more data scientists, and started looking at the bigger picture instead of what’s directly in front of them. That way, they can easily predict in which direction the property market will glow and how to make the most of it.
Fixed Interest Rates
Banks and other financial institutions have said that they don’t expect any major shifts in 2020 and that the current interest rates will remain the same. This is good news because the current interest rates are pretty decent, and there is any real need to make waves in this department.
Home Prices Will Remain Stabile
This is something that we’ve seen throughout the last quarter of this year, and that trend will most likely go throughout the entire 2020. Again, this is common after a shaky period in which the residential property market was pretty shaken.
Uncertainty with Commercial Properties
The trading war between the US and China is not looking good, and it affects businesses all over the world. Singapore is home to many international businesses that do business with both China and the US.
As a result, the demand for commercial space might take a hit. Otherwise, it can be on the rise if China-based businesses start mowing abroad in cities like Singapore. The point is, the commercial property market can go both ways, and that’s what creates uncertainty.
Renting > Buying
This is already becoming a thing with young people. A good chunk of them are more interested in the nomadic lifestyle and constantly traveling, exploring, experiencing.
That is a new situation and a specific type of demand to which both investors and developers need to adapt. Singapore is one of the most attractive cities in Asia, and probably the world, so there will always be significant interest from young people to spend time there. Not to mention, it is a city full of various business opportunities and exciting startups.
The year 2020 won’t be a spectacular year for the property market in Singapore. But at the same time, there aren’t any predictions that there will be any decline or lower demand. There is a consensus among experts that 2020 will be a year in which the property market will be in “quiet waters,” and there won’t be any big waves in any direction.