Located at the Southern tip of the Malay Peninsula, Singapore is one of the original “tiger” economies which has certainly grown over the last few years.  Originally a fishing based country, successive governments have really put the country on the world trade map, with employment levels vastly improved (unemployment is now under 3%).

The country itself is now very dependent on the manufacturing sector, with raw materials imported, and goods produced for export.  Singapore has also diversified into areas such as electronics, petroleum refining, finance and biomedical sciences to offset the manufacturing based emphasis.  The economy grew by 8.3% in 2004, 6.4% in 2005 and 7.9% in 2006.

Singapore country is heavily dependant upon immigration to replenish a natural population which is falling in numbers year on year.  The steady flow of immigrants and Expats living in Singapore has also added to the demand for housing, in a country which only has a population of 4.5 million people.  

Contents: Property Market Performance in Singapore | Property Costs in Singapore

Property Market Performance in Singapore

The Singapore property market is currently in the middle of a major upswing, with very high occupancy rates (in the region of 95% and set to move higher) magnifying the lack of suitable properties for a market which is crying out for extra capacity.  As this extra capacity takes a while to filter through, many analysts are expecting property prices to continue rising for at least the next two years.  Prices are expected to rise by as much as 30% over the period!

The market has been ignited by an economy which is recovering from recent falls of the last few of years.  The upturn in the economy has attracted the interest of property investors from overseas and living in Singapore, with prices rising and activity showing vast improvement on a couple of years ago. While the housing sector rose by over 10% in 2006, it has already shown a rise of some 5% in the first quarter of 2007 and looks set to beat last years annual rise.

Even though the natural population of the country is falling, the steady flow of immigrants is set to continue for some time yet.  The country has also made a name for itself in the world of finance, and is set to over take Japan as one of the major Foreign Exchange markets of the world.  This type of business is attracting wealthy foreign nationals, many of whole are looking to relocate to the country, further increasing the demand for property.

Singapore is an interesting country which now has a number of economic strengths, and a flourishing (if slightly unbalanced) property market.  As more supply comes online, excess demand should be met and price rises should start to slow.  For those looking to relocate for the long term Singapore offers an array of attractions, and the property market still offer good long term value, even if there may be some wild swings along the way!

Please note that non-Singaporean and permanent residence may only acquire properties in buildings with at least six floors, or pre-approved condominium units, without permission from the authorities. They can acquire other properties although permission will be required from the Controller of Residential Property.  This is the countries system of controlling foreign ownership of property, and monitoring possible property speculators.

Property Costs in Singapore

As with any foreign land, you need to arrange the services of a local solicitor who has expertise in the property market. Check the small print on all contracts!

In general you should budget for the following expenses :-

Solicitor fees

Mortgage fees

Stamp Duties

These fees together will add a further 5% to the initial cost of the property.

The government also charge a property tax on all properties, which varies between 4% (for owner occupied homes) to 12% (for non-owner occupied homes).  This is yet another way to discourage the type of property speculation which is not very helpful in a fairly small property market.

It is also essential that you check the local mortgage laws as not all options are open to foreign nationals.