Singapore is a bustling economic hub. The country contributes heavily to the region’s landscape of growth and prosperity. Those who are landing in Singapore as expats, have a lot of investment opportunities. In this write-up, we will take a look at the real estate investment opportunities in Singapore. Our suggestion is you should consult with an expert to get financial advice for British expats.
Real Estate Market in Singapore
The real estate market in Singapore is known as one of the costliest and most prosperous in the world. This is due to the scarcity of land and high demand for the same. To manage the gap between limited land supply and increasing demand for land, the government has adopted different cooling measures including restriction imposition and increased transfer taxes on foreign real estate investors and multiple home buyers.
Compared to other buyers, multiple home buyers and prospective foreign investors are obliged to pay at least 25% higher taxes. However, foreign investors are allowed to own condominium units with a freehold title.
They have government approvals to buy and own houses, properties and bungalows. However, the one condition is the property must be under six stories tall. If ownership contributes positively to Singapore’s economy, it is most likely to get approval.
In certain areas of Singapore, it requires more effort to find developers who intend to sell freehold condos. Many properties in the Central Region and other key locations are sold on a longstanding basis because developers are more willing to retain the valuable real estate assets. If you can manage to get a freehold property, expect to pay a costly premium.
Properties in posh areas are highly expensive though Singapore’s efficient system makes purchasing a property quite straightforward. Moreover, English is the prevalent official language. This effectively eliminates the need for translation.
Singapore has a well-developed dual housing market – subsidized and unsubsidized housing. The real estate market in Singapore is costly and the price is continuously spiking up. In such a scenario, the government intervenes and contributes a significant amount as subsidies. Foreign investors are not permitted to buy subsidized housing. However, this restriction does not hold good for permanent residents and Singaporean citizens.
Real estate investment in Singapore is pricy and profitable as well. Rental yields range from 2-3%, which is considerably low. Capital appreciation is highly likely. Continued population explosion has sustained and increased demand whereas land scarcity will restrict supply, pushing property values upward further.
Final Words
Does all this information leave you in more doubt? Consider talking to an expert and get smart advice on prospective investments for expats in Singapore.
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