Rental returns are relatively high, with unlimited potential to increase house prices
Latest reports show that rental returns for private apartments in Singapore are in the middle of the range of 3 to 4 percent, which is a lot higher than that of the north of the country, compared to Guangzhou and Buddha. As a city-state, Singapore's socio-economic development is dependent on the availability of talented people from outside. The Population Sector Report published by the Singaporean government in 2013 estimated the population of Singapore to be around 6.9 million by 2030, of which around 2.5 million would be foreign nationals.
With the current population replacement rate, Singapore will have to add more than 15,000 to 25,000 new citizens and more than 30,000 new permanent residents every year to ensure steady population growth. In addition, as an island nation, Singapore can only rely on reclamation projects to expand its land resources, but the total demand is very limited. The scarcity of soil resources and the growing population has ensured the value of land. With the current government's intention to curb house prices, Singapore's housing market has a lot of room for growth.
Excellent ecological and environmental protection, and a relatively intelligent big city
Singapore has been crowned Asia's most livable city in a new ranking of the world's most livable cities by consulting and management firm Mercer. For Singapore, which has always been known for its ecological environment and urban planning and construction, the result is no surprise. Long-term fresh air, safe water and food, extensive vegetation cover, and comprehensive transportation and utilities have made it a preferred location for many people to live and work.
In addition to this, the high degree of intelligence in Singapore's urban planning and construction is another attractive flash point. The concepts of networking of services in different social development units and smart settlements have made the lives of the residents easier and more convenient.
World leader in culture, education and medical equipment
According to the latest report of the residence outside the scientific research, in the first half of 2016, more than two thirds of Chinese customers inquiring about Singapore real estate, more than two thirds of the customers indicate that the children's education is their project investment motivation, he chose wisely. The Organization for Global Economic Cooperation (OGEC) ranked Singapore first in the world in its 2015 ranking of the country's education sector. The East-meets-West, all-encompassing yet traditional approach is exactly what many parents want for their children. Singapore's health services are known worldwide for their high quality.
In recent years, government departments have also been vigorously promoting the diagnosis and treatment economy and medical tourism, the classic motivation to build Singapore into a regional medical center. As the most important thing is the ability to compete flexibly, the theory and practice of high-quality diagnosis and treatment of Singapore's level of development and great temptation, will eventually become the property market continues to develop the propellant.
Project quality assurance, complete facilities
Singapore's individual development plans are subject to rigorous review and supervision, all the development design, construction and validation of the entire process of nearly years, the quality can be ensured. The vast majority of condominium projects are fully equipped with facilities such as swimming pools, fitness clubs, spas, barbecue areas, activity areas, etc., which are standard in condominiums, and are rarely found in some countries. In addition, Singapore's property management is also a world leader, regardless of the old and new housing, comprehensive and intelligent service programs to enable investors to fully reflect the peace of mind and profitability.
Low cost of borrowing, low additional taxes
Based on the latest expatriate policy, foreign investors buying property in Singapore are required to pay 18% stamp duty on contracts. For foreign customers, Singapore's lending policy is relatively relaxed, with no threshold and low rates, and a maximum loan amount of 80% for the first home.
Disadvantages of investing in property in SingaporeSingapore property has a tenure
Singapore in the ownership of housing is not attributed to the way of freehold, in Singapore property is divided into three types of ways: the government sector HDB flats only have a home ownership of 99 years, the expiry of the government sector all; real estate developers to land planning for the condominiums purchased after the property rights have only a 99 year old; or 999 years zoning two years. Or with 999 years of zoning two; there is another attributable to the land resources residential property rights 999 years or permanent.
The price tag of land and the scale of business
Despite stagnant earnings, the only way real estate developers can match your affordability price point and still make money is to keep the business small. Consequently, house prices are likely to remain for a long time while the price per square meter continues to rise.
Foreigners need to pay a huge amount of real estate tax
Only local Chinese citizens in Singapore can buy HDB flats, foreign investors can not buy the application, Singapore's HDB flats generally do not have the shortcomings and drawbacks, as in China, the same as the access conditions qualifications and needs to buy. Equivalent to China's affordable housing, many Singaporean locals have settled in HDB flats, which are cheaper than apartment buildings. In addition, buying a home in Singapore is subject to the same huge real estate taxes as in the United States.
Policies and regulations are aimed at limiting or realizing the demand
Property management services can limit the requirements or directly limit, for example, foreigners are prohibited from purchasing land resources in Singapore. "Additional Buyer's Contract Stamp Duty" (ABSD) and other related regulations raise the price barrier for foreigners to purchase second and second assets in Singapore and its Singaporeans with SPR. The SSD, which is used to discourage speculators from buying property for a short period of time, also reduces the "requirement", which is not factually correct. The Total Debt Service Ratio (TDSR) ensures that people who want to buy a property can actually afford it.