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Oct 14

Singapore Real Estate is Making Promises

It isn’t that Singapore real estate is making verbal promises, but in case you look at tinier businesses you cannot deny that the sector Jade scape is very promising for buyers. When looking at the figures as of 2006, we make it a point the private house price index showed a healthy 10.2% increase over its 3.9% increase from 2005. If you really want to get in the nitty gritty on the figures, then let us take into consideration that property prices in Singapore are up 15.8% since 2005.

It’s not mysterious as to why the Singapore housing market is on the growth since the economy is more or less taking it with it. The economy showed a 7.9% gross domestic product growth in 2006 versus the 2005 growth rate of 6.4%. However, it isn’t just the economic growth in the area fueling the Singapore Real Estate market. It is also new policies into the housing market which are put into invest 2005. These new policies include:

The loan-to-value increased from 80% to 90%

Foreigners are about to be able to purchase apartments due specific rules no longer being put in position (foreign purchase no longer has to meet the criteria of: the building must be over 6 stories high and must be a condominium).

The allowance of single people that aren’t related to jointly purchase properties via their Central Provident Fund (social security pension).

Cash down payments are down to 5% from the previous10% on home purchases.

Home ownership became a significant goal of the Singapore government. Due for this commitment and cooperation with the Housing and Development Board, Monetary Authority of Singapore, Urban Redevelopment Board, and the Central Provident Fund, home ownership has increased to 92% from its previous 27% as recorded in 1970. This is a success story in itself since Singapore encountered a housing crisis not long after it acquired its independence, however now Singapore real estate is certainly creating a statement.

Upon achieving economic stability, the require for the housing in Singapore has increased and also the housing prices have increased as well. The higher price of property makes for a stronger Singapore real estate market and very long as as these higher prices continue, so will the promises and expectations of industry within Singapore. Without a doubt the numbers speak for themselves and they definitely cannot be unnoticed.