We all know that Singapore’s Real Estate industry is one of the most expensive in the world. It is not just a rumour but a fact, as several high-ranking reports have shown that Singapore is only second to Hong Kong on the list of the most expensive Cities to live in the world. This has been the trend within the last decade. The Prices of the Singaporean real estate have increased steadily over the years.  The landscape of the City continues to support new developments such as the Avenir for individuals and families who are on the search for luxurious homes.

With this in mind, virtually all visitors or even Singaporeans may strive to decipher why Singapore is sitting atop this list. Singapore has always been a go-to City for Millions of investors. In Singapore, Properties are not easy to come by, but it is better to be at the centre of it all. What then are the reasons for the constant increase in the Price of Properties in Singapore? These questions will be answered in this Article.

• Changes in Demography

People outside Singapore would sit back and imagine how they could survive in a City as expensive as Singapore. But it wasn’t so in the past because, back then average Singapore families were satisfied and content with a single house and they planned to live there till they die. It didn’t matter whether the building was a private Condo or HBD. It used to be a long-term plan knowing that one of the Children will continue living there after the demise of the parents. As time went on, there were gradual changes in this demographic trend. Singapore became more industrialized, the education system was heavily boosted and the percentage of top-notch professionals increased. Today, Families no longer plan to live in one house for a long time. They would either buy a new house or choose to upgrade the old one. This led to an increase in the value of landed properties and the real estate Market has been evolving since then.

• Scarcity of Landed Properties

Virtually everyone wants to live within the Heart of the City so that they can easily navigate to work and have access to other Amenities. As a result, it became very challenging to find the right apartment close to the city centre. Of course, the closer the Property to the city centre, the higher the Price. With this, the demand for properties increased. People were already ready to buy any property once it is listed by the real Estate Agents. Buyers are always available and this leads to serious scarcity; hence, the sellers keep increasing the price so that they can sell to the highest bidder.

• Buyers are more Business-minded

Gone are the days when people in Singapore would buy a House for just residential purposes. Nowadays, virtually everyone is on the lookout for Houses that are Multi-purpose and have a high resale value.  Most Buyers are now looking for Profits once they decide to upgrade and sell the House. In a nutshell, a greater percentage of potential buyers are now investors, as they only buy for investment purposes. This is also applicable to potential purchasers of investment properties. Fine, they are looking for properties where they can bring in tenants. But then, most of them are interested in properties that would appreciate in value so that they can re-sell to buy a bigger and more profitable property.

• Safeness from corruption

Singapore is a safe haven for Business and it has become a hub for a plethora of multinational companies. The well-organized, innovative, and corruption-free Government has made Singapore attractive to a plethora of investors. More so, the process of registration of Business is straightforward in Singapore. Foreigners can just register and begin their business enterprise with minimal fuss. As a result of these, millions of foreigners have relocated to Singapore. Majority of them prefer to buy a house instead of renting; hence, the demand for housing has increased in the City. Of course, an increase in demand will instigate an increase in Price.

• High living standards

The living condition and general well-being of people in Singapore is excellent. With an excellent education system and low poverty rate, the majority of the populace are highly-skilled. They can afford to cater to their needs compared to people in other countries around them. A greater percentage of Singapore natives are highly educated and they are very versatile. With a high buying power, they constantly enjoy their lives by spending time in Bars and restaurants. It is good, though, but this has increased the price of virtually every item in the Market, including the Real estate. 

• High Population

Singapore has almost the same size with New York, but it serves as home to about six million people. Considering the size of this City, the constant growth and developments in Singapore can better be described as miraculous. With a very small size, yet large population, it is clear that the gargantuan population has impacted on the hike in price of properties. In terms of Population density, Singapore ranks third in the world and the population keeps increasing. As a result, the populace are always on the lookout for new residential space. The Government is usually pressurized when meeting this huge demand by squeezing every square metre of land for new developments. Despite the Singaporean Government striving to develop new areas, the demand for landed properties is usually more than the supply. One of the latest developments is the Avenir; visit https://theavenircondo.sg/ to see the available apartments.

Wrapping up:

Singapore’s Real Estate industry stands tall as one of the most pricey real estate industries in the world. Nowadays, every family wants to build their own house instead of living in their parent’s house. The number of permanent immigrants have been ever-increasing in Singapore and these expatriates are always on the lookout for new homes. More so, buyers are now focused on investments, as they buy just to sell at a higher price. To crown it all, the population density of Singapore contributes to the constant increase in demand for landed properties. On the whole, if you are planning to relocate to Singapore, you are assured of luxury and innovative housing, but you should be ready to spend a huge sum of money on your new apartment.