Singapore and business - investment into the future
The real estate of Singapore rose in price all last years and will rise in price, and for this purpose there are several reasons, in many respects, by the way, similar to the reasons affecting the Moscow real estate market.
Singapore is somewhat Moscow for Southeast Asia. Here people and the capitals from all neighboring countries - Malaysia, Indonesia, Philippines, and even China are flown down. The share of the wealthy Chinese investors buying the Singapore apartments especially strongly grew in recent years.
In the next years in Singapore the immigration policy directed to increase in population and generally at the expense of highly paid specialists and businessmen will proceed. For the last 10 years the population increased from 4th to 5 million, and within the next 5-7 years growth of the population up to 6 million persons is expected.
The limitation of the territory of Singapore also does not allow to build too much. Well and, of course, beyond Singapore the status of the financial and business center, and there continues to remain where there is a lot of money - the real estate cannot just be cheap. Business activity strongly warms up the market of a commercial real estate, and it tightens for itself(himself) and residential.
And at all, unlike many neighboring developing countries, the stream of investments into Singapore never stopped. There can be only insignificant fluctuations of dynamics, but in general the city-state firmly holds a proud rank of an Asian tiger.
By the way, according to the Bloomberg agency, the Singapore trusts on real estate administration were shown in 2012 by the highest profitability indicators in the world.
It was promoted by growth of rental rates, the general rise in price and low rates on the credits in the Singapore banks.
So, what prices of the private residential real estate in Singapore in figures?
Realtors conditionally divide the city into 3 zones:
1. Central - the most prestigious areas for accommodation around Orchard Road enter here. There are a lot of streets which are buried in verdure with private ownerships, on some public transport, despite direct proximity to the main trade artery of the city does not go; here the most expensive hotels and embassies are located; exactly there is all exclusive - from magnificent skyscrapers to residences with a bungalow and huge territories. The prices of such housing can reach several tens millions of dollars, but there are also standard projects. The prices - approximately from 35000 dollars for square meter.
2. Adjacent to the center - Holland Village, Bukit Timah, Thompson, Balestier, East Coast, Marine Parade - rather prestigious areas with the prices from 20000 to 35000 for sq.m.
3. All the rest - the West, the East and the North of Singapore, as a rule, this rather recently built housing (condominiums), with very decent quality and all necessary amenities - by and large, this level can be considered as elite in the majority of the countries. The prices for square meter - from 10000 to 20000 dollars for ready housing.
As it was mentioned earlier, it is possible to purchase at the initial stage of construction much cheaper. For the buyer is often long-term investment, for 5-10 years and more, and the developer is interested to sell the project as soon as possible. Therefore the prices at the time of "start" are at such level that having purchased in this point, the buyer was sure that growth of the price and the subsequent rental rate will cover all payments to banks and will make for it profit.
Average expected return from private housing under construction - about 30-40 percent for the first 3 years, so far the project still is under construction. After it is put in operation, profitability for the investor grows as the rent increases.
But in addition to such standard scheme there are also purely speculative resales. Purchase at the earliest stage - is especially appreciated during the so-called VIP-presentation, for the - many specialists of this market earn for few months one hundred thousands of dollars of one such transaction.
Purchase or lease?
As purchase of private housing in Singapore this impressive investment of capital, the majority of transactions are made on credit. Inequality is here too observed: if the citizen of Singapore can count on 80% of borrowed funds of bank, then the foreigner only for 50%.
It is quite obvious that lease of the apartment is the most popular method of the solution of a housing problem in Singapore, working thus both for investors, and on arriving in Singapore on long, but not full-time residence.
If the foreigner can purchase not any housing in Singapore, then on renting there are no restrictions.
At the limited budget it is possible to rent even apartment or the room in HDB.
The room for long term will manage from 600 dollars a month, and the 2-roomed apartment - of 2000.
The apartment in condominium in the lower price range (20-30 minutes from the center by car or 1 hour on public transport) will cost a minimum 2500-3000 dollars a month, and in more prestigious and central regions - 5000-10000 dollars and more.
It is also possible to rent the certain house or a bungalow with the territory - the prices begin from 5-6 thousand dollars here a month.
Keep in mind that when the number of rooms is specified in announcements of apartments, it is only about so-called "sleeping" rooms. That is considering 2 bedroom apartment option it is necessary to understand that the apartment actually three-room as in it there will be also something like the hall or the communicating general room.
Selection of apartments is performed rather simply and quickly - you can address numerous real estate agents, but they, as a rule, do not satisfy the interest of those who did not reach Singapore because the movement in the market rather fast, and nobody will begin to reserve the pleasant apartment it is more, than for several days.
Standard lease terms - 1 or 2 years. Look for agents from owners of housing - then it is not necessary to pay any additional fees. However, duty (stamp duty) for registration of the lease agreement should be paid all the same. It will make about 4% of the amount of monthly lease, but both the owner and the tenant are completely protected, and no fraudulent schemes on leasing practice in Singapore, as well as also cases when housing was not completed are unknown.
See also
