Will Singapore New Condo Launches Make Money?

by | Sep 22, 2019 | Investment | 0 comments

4 min read

Can I Earn From Investing In New Condo Launches?

With the history of Singapore’s real estate market, it’s no surprise as to why investors repeatedly chose to invest capital into Singapore property projects. Despite the cooling measures being put into place since Jan 2011, the recent new condo launches projects are still garnering plentiful of attention! It’s no shocker to learn that Singapore projects will continue to be popular investments among the locals and foreigners (just look at how the CEO of Dyson snapped up Singapore’s priciest penthouse and Alibaba co-founder who apparently dropped a whopping S$50 million on a Singapore property!)

Let’s take a look why!

The Singapore Government Role’s In The Real Estate Market

To stabilize the property market, it’s known that our government has restrained property prices in the past. In 2010, when Singapore had an intense market, the residential property prices rose around 38%, which is a huge hike in property prices.

As a result? 🤔

The government decided to step in at that time to limit the mortgage to 35 years and lowering the Loan-To-Value (LTV) ratios to 60% for loans younger than 30 years. A seller stamp duty was also enacted on owner-occupied housing sold within a year of purchase.

Between 2012 and 2017, a variety of seller stamp adjustments and caps were made by the government until the market cooled. Why?

It only means one thing.

The Singapore government will step in to intervene when the property market is unstable.

New Condo Launches’ Investment Opportunities In Singapore

The Singapore real estate industry is one of the most developed industries in Asia. It skyrocketed in the past 20 years, rising from 8% of GDP in 1990, to 43.9% of GDP in 2018.

In 2018, there were over 8,000 incomplete residential condo units in Singapore, which is an increase from previous years, 2016 and 2017. While a slow-down is expected from the US-China trade war, Singapore property prices are expected to increase according to the Ministry of Trade and Industry (MTI). With the cooling measures, demand is expected to be subdued this year for Singaporeans.

What do all these actually means?

If the pattern continues, this could be the prime time for investors to step in. A residential boom is definitely possible, and with the careful watch on the property market – investors could see a steady, reliable capital investment!

While more than 38% of Singapore residents are foreign, with tighter immigration laws, Singapore has made it more difficult for foreigners to purchase Singapore property. Foreigners pay a flat rate of 20% Additional Buyer Stamp Duty (ABSD) whereas Singaporeans only have a maximum of 15%. These rules keep the Singapore real estate situation under control, which is good for investors – though yields may not be exceedingly high, they are steady! 👍🏻

Getting Investment Properties Advice

Are you hesitating on property investments?

After all, this isn’t a walk in the supermarket 🛒 where the value of the products you’re buying are low. While many of your friends have made a hefty profit from their property investments and are persuading you to get started too. You’re just hesitant on it.

Well, that’s where we come in!

At Mr Bukit Timah, you get to choose from 3 professional Real Estate Consultants instead of 1! We provide our clients with a plethora of professional services from Market Analysis, to Financial Planning, to Property Wealth Planning. We clearly understand our clients’ needs and such, assessing their current financial status is imperative to us.

While all these may sound like sales prep talk to you, we are sincere in what we provide for our clients. Just arrange a simple coffee session ☕ with us and we will walk you down step-by-step your Property Wealth Planning journey!

Popular New Condo Launches in Singapore?

This year proves to be a big year for Singapore condo launches as developers launched close to 3,000 uncompleted private residential units for sale 2019 Q1 as compared to 1,657 units in the previous quarter. Fourth Avenue Residences and Mayfair Collection are two examples of the newest condo investments.

Nestled amidst the Good Class Bungalows (GCB), the Fourth Avenue Residences will be the tallest development in that area, granting an unblocked view for its residents. Furthermore, the Fourth Avenue Residences is just next to the Sixth Avenue MRT station, which is only 8 minutes away from Orchard and 14 minutes away from the Central Business District (CDB). Just these 2 stunning factors are attracting investors into purchasing multiple units for investments.

As for the Mayfair Collection, it consists of Mayfair Modern and Mayfair Gardens. The Mayfair Collection offers an impressive variety of features as well as its strategic location to various prestigious distinguished schools such as Methodist Girl’s School, Pei Hwa Presbyterian Primary, and Hwa Chong Institution. Located in the heart of Bukit Timah, it has everything you need – from eateries, schools, to shopping centers.

Still unconvinced about the potential of Mayfair Collection? You can read about why it’s one of Bukit Timah’s highest sought-after projects here!

Update: We have recently written an article on “Is Royalgreen The Freehold Condo You Should Look Out For?“. Find out why this particular freehold has so much investment potential that we’ve decided to dedicate an article to it!

These are just a few examples of the many Singapore Condominium available for investment. Simply do a bit of homework to find the ones that make your heart flutter and we will tell you whether it’s a worthy home-stay or investment!

OR, you can just hit us up (please, not with a hammer 🔨) and we will introduce you the most suitable projects for you!

Conclusion?

The Singapore Government will step in to stabilize the property market when needed, ensuring that our economy will continue to flourish. According to market trends, the value of properties over the years has grown exponentially and will continue to surge in the coming years.

Just think of the properties back in the 2000s. How much did they cost? Didn’t we think that the property prices weren’t going to grow anymore back then? But aren’t we thinking the same now?

So what does that signify?

Don’t wait anymore! 🙅🏻‍♂️

If you were thinking about investing in a condominium in Singapore, now may be the perfect time to do so!

We have helped over 300 families to plan their Property Wealth Planning journey in Singapore. If you’re looking to know more and explore more options – we invite you to contact us for a non-obligation discussion.

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