3 Reasons Why Property Prices In Singapore Keeps On Rising

By Author: Rae20
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With the Covid-19 pandemic hitting almost every country at the start of this year, economies all over the world are facing a tough time. Many establishments and businesses had to halt operations as they cannot sustain operations anymore. Lockdown after lockdown has been observed in almost every country across the globe. Even the most stable countries with the biggest economies were not spared by the effects of the pandemic. A pandemic-induced recession has been felt in covid-affected countries. The virus had literally made the world stop. Even the city that never sleeps, New York City, has turned its lights off. Even up until this moment, the bad economic effects of the virus can be felt as the pandemic is still not over. These economic effects can be felt by local citizens through the prices of every commodity or necessities. For example, if a certain city is in lockdown, it will be harder to import goods such as meat and vegetables. The majority of the population consumes meat and vegetables on a daily basis, so the demand for these goods is high. Therefore, the price of these necessities currently available in the city currently ...
... in lockdown will be high because of limited supply.

The same idea is applied to housing prices in Singapore. It is no secret that Singapore has one of the highest costs of living in Asia. With an economy as big as Singapore, the working class is squirming to be in it. Singapore with only 725.7 km² land area lacks land supply. That is why the cost of buying a house in Singapore is relatively higher than its neighboring countries. Singapore was not spared the many ill-effects of the pandemic. It faces a pandemic-induced recession too. However, for some reason, the cost of buying a house in Singapore still remains the same and is unaffected by the pandemic. In this article, we will talk about the 3 reasons why housing prices in Singapore keeps on rising.

Adequate government support

It is not news that many lost their livelihood or source of income because of the pandemic. Following this, the working class who relies on their monthly salary had a hard time adjusting and paying monthly wages like housing rent. However, the government has been in full support of cases like this allowing tenants to pay their housing mortgages at later time. For example, the Housing and Development Board Singapore has extended late payments until March 2021. This extension is the second one given by the board. This has been a huge factor when it comes to the cost of buying a house in Singapore remaining high despite the pandemic. Citizens are not pressured to sell their houses as they are secured with government support thus not affecting the housing supply in the market.

New investors

Some analysts have noted that even though the pandemic has affected Singapore’s all over the economy, some industries are still holding up. These notable industries are those involved in technology, precision manufacturing, healthcare, and biomed. With this, there is still a number of demand for housing in Singapore. Therefore, helping the property prices Singapore choices to stay just as it was before the pandemic. Following this is the noticeable number of foreign buyers that almost doubled in the third quarter of 2020 with 225 from 199 in the second quarter of 2020.

Demand

Singapore has one of the richest economies, not just in Asia, but in the world. A great number of its population is the working force. Given that the economy is still up and running the workforce still stays the same or even continues to grow. That is why there is also still a huge demand for housing. The law of demand and supply is Economics 101. Since Singapore’s workforce number was barely affected or is resilient enough to still be running, the surge in demand stayed the same. Thus the cost of buying a house in Singapore remained the same and still increasing.

One more thing that affects the demand and property prices Singapore offers is the willingness of banks to loan money. This still can be attributed to the fact that Singapore’s economy remained resilient despite the pandemic-induced recession. With the willingness of these banks to loan the masses money in order to afford the cost of buying a house in Singapore, then there will still be a constant and rising demand for property despite the increasing property prices Singapore options.

Know more with us.

There are different things and many economic factors contributing to commodity prices especially in property prices Singapore options. Know more about these topics when you visit SRX Property. Be well-informed about your next property purchase and make smart decisions. In SRX Property we have everything from the cost of buying a house Singapore details to which realtor is the best fit for your house hunt.

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