To invest or not to invest, that is the question often at the forefront of people’s minds when it comes to the property market in Singapore. Admittedly it has been a rough time over the last few years, but recent indications are that there may well be improvements along the way, in the shape of some easing of the cooling measures introduced by the government. That is far from guaranteed at this juncture, but regardless of that, several experts are predicting that property prices will bottom out this year. If this is the case it will mean it is the perfect time to invest.
Singapore is unusual in its many different types of housing and properties available, and all of these should be explored by those looking to invest in property. One of the potentially best investments – and admittedly the most expensive – is landed property.
The reason for this comes down to two very basic economic principles: scarcity of product, and a limited number of people who are able to buy it outright. Singapore is a small island. Despite land reclamation efforts, there is only a limited amount of space available to build on, and many of the most desirable areas are already spoken for. The population will continue to rise, even with stringent government measures, and the demand for housing – and good quality, housing will also continue to rise. The vast majority of new projects are for condominium type apartments, so percentage wise the amount of landed properties will become smaller and smaller.
Singapore is a rich country, and it is getting richer. There are currently more than 150,000 millionaires who call the island home, and that number is going to increase. There will always be a demand for landed property, both from Singaporeans and foreigners, but of course, only the former are allowed to buy it. That isn’t strictly true, but the ways and means for non-Singaporeans to buy are laborious, expensive, and far from guaranteed. Foreigners are of course allowed to rent landed property, and that is where the imbalance in demand comes into play.
The types of property classified as “landed” are as follows:
- Terrace houses
- Semi-detached houses
- Detached houses
- Strata Houses that are not cluster houses or town houses (i.e. ones that do not fall within a condominium development as detailed in the Planning Act)
- Shophouses (for non-commercial use)
The guidelines also prohibit the sale of vacant residential land to non-Singaporeans.
Like all investments, particularly when it comes to property investment, you need to go into it with your eyes wide open, to be aware of, and fully understand all of the facts, figures, and nuances of the market. It isn’t an industry where you are guaranteed short term gains. In fact, it should never be seen as something that will bring guaranteed returns, but over the long term if you do your research, it can be – especially when it comes to landed property – one of the best options available.
If you want a landed house and at the same time enjoy condo facilities, you might want to consider some of these cluster houses development below,
New launch condo in the real estate market