Singapore Might Become a Safe Haven for Real Estate Investment Thanks to COVID-19

13.01.21 07:26 PM Comment(s) By Akan

Singapore might become a safe haven for real estate investment

Singapore Might Become a Safe Haven for Real Estate Investment Thanks to COVID-19

As the world seemed to go down in flames during the crisis, few safe havens have sprung to life. Singapore is easily one of these locations. It has curbed the COVID crisis, especially its financial repercussions, in a way that very few countries have achieved. 

 

Unsurprisingly, it has become a favorite destination for real estate investors. The combination of safety measures, economic prosperity, and excellent property deals makes it an easy choice. 

 

But, how well have things really gone for Singapore amid the crisis? Why is its situation so unique? What can we learn from them? And, most importantly, how can you take advantage of this information? 

COVID-19 Hasn't Been as Bad for Everyone 

Lockdowns, job loss, and health hazards have been common topics for most people around the world. While many wealthy individuals looked to save their money, others turned their eyes toward Singapore. That’s despite the need to travel privately and to endure a two-week quarantine. 

 

Not many have heard about this opportunity, and it’s for a good reason. As Yahoo! Finance reports, most of these investors come from neighboring regions: Indonesia, Cambodia, Vietnam, and the like. While Singapore isn’t a standard news header for Americans and Europeans, its COVID strategy has been exemplary, to say the least. 

 

Not all of them are looking for housing, either. Investment opportunities in real estate are plentiful right now. The COVID crisis has also spurred lower mortgage rates and other measures that make real estate investment an ideal opportunity. 

 

From the Yahoo! Finance article, we have to focus on five main aspects. 

The Core Central Region is Still Strong 

The CCR has been a traditional favorite for foreign investment in real estate. It’s composed of the best districts: from 9 to 11, covering the city’s center and Marina Bay. It was also the first sign that the Singapore real estate market wasn’t going to slow down with the virus. 

 

Interestingly, this sector barely suffered any damage from traveling restrictions. Property purchases didn’t even flinch. Quite the opposite, they increased during the start of the year, especially compared to the previous year’s quarter. 

Traditional Supply Limits Drive Interest  

Many investors are waiting for new development (or older properties now available) in the most popular districts. The most popular area is District 9, thanks to its elevation, calm ambiance, and accessibility to nearby amenities. 

 

A vital reason for its popularity is also the lack of new construction projects. There’s simply not enough development to meet demand, thus driving prices noticeably. In fact, only a couple of developments are currently known of. 

No Need to Give Up the View 

Of course, the main reason for this market demand is more important than supply. The views from these districts are simply astounding. They offer sights you wouldn’t expect from a city, coupled with unexpectedly calm neighborhoods and nearby attractions. 

 

You can find different types of condominium blocks in the same sector. That includes terrace houses, luxurious apartments, and more. You can also walk long stretches without putting up with disturbance from the traffic. Emerald Hill, in particular, offers a great cobblestone path to walk your pets. 

The Two-Tier Market

Newer property projects come with prices around $3,000 PSF, according to the article. As such, older developments come with the same peace of mind of significant upsides for land value. 

 

Developments like Carinhill 16 and Klimt Cairnhill offer solid opportunities for property owners. Projects will try to accommodate the increased demand, and that means the land will become a precious commodity. 

Great Prices

Finally, the deals for said developments are still seemingly adapting to market demand. That means it’s still not too difficult to fetch excellent rates for your investments. As developments last for longer, prices naturally become less affordable, but it doesn’t change its promises. 

 

Just make sure to look out for investors from the neighboring countries. Chinese investment has been rampant, fetching many of these deals. 

Singapore Has Been Setting An Example Since the Beginning 

We’d recommend reading this article from Technology Review if you’re interested in learning more about Singapore’s measures. However, we must summarize its contents in this report if we want readers to understand why Singapore is an exceptional case. 

 

Most importantly, Singapore was one of the first victims of COVID-19. We must remember how its trade with China is vital for its economy, and it already had several cases before the first news became official. The country took immediate action, tracking and isolating cases to prevent transmission chains. 

 

Ironically, its immediate risk—along with a strong preemptive mentality—was Singapore’s main advantage in comparison to countries like the US. Their ability to act as soon as possible, instead of making up theories about how dangerous it really was, allowed them to shut down the risk as effectively as possible. 

 

As such, their main edge was never finding themselves in the same situation as other countries. 

What do we Think? 

Singapore is easily one of the hottest markets during the COVID pandemic. However, it’s likely to remain that way even after the crisis has subdued. Just like with the virus, neighboring countries have realized the opportunity first, and other potential investors overseas might miss out on the initial chance. 

 

If you’re interested in investing, now it’s probably the best time to do so. As supply keeps decreasing, prices will only go up with demand. The latter will increase inevitably as other investors realize the potential of the market. 

 

That means a chance for noticeable profits from your investment if you do decide to sell later on. Nevertheless, the views and financial stability of the country as a whole already make it an attractive destination. 

 

Regardless of what you decide to do, make sure to stay on top of all investment opportunities within the real estate industry. We curate all the news you need to read to make an informed decision. All you need to do is subscribe to our newsletter and receive everything in your inbox. 

Akan

Share -