Singapore has one of the most complicated property markets in the world. But what is best Time to Buy a Condo in Singapore now?
Singapore has one of the most complicated property markets in the world. It is hard to make your way through its property market as it has complicated processes. Through the years, Singapore has been known to have one of the most expensive living costs as it has one of the highest population densities in the world. The high number of residents in Singapore is due to its economy.
The economy of Singapore and how it affects its real estate industry
Singapore’s economy has been stable and active throughout the years. This makes it attractive to businesses and investors. Investors see Singapore’s economy as a safe zone for businesses. That is why many corporations from around the world try to set up a branch here.
These businesses open new job opportunities and vacancies. These job openings are not only for Singaporeans but for foreigners as well. That is why many individuals from different sectors and industries around the world migrate and move to Singapore.
However, Singapore has a relatively limited land supply, which is why it cannot sustain the number of residents who need decent living space. This situation drives property prices upward.
As the competition for a living space is tight, those who have a bigger buying capacity can easily acquire a property. For example, those that can afford units at The M Condo were prioritized. The same is true when it comes to the units in Penrose Condominium.
What happened in 2020?
These factors have been existing for a long time and have greatly affected the property market. In 2020, the world experienced a pandemic, which further affected the property market of Singapore. Due to the pandemic, a recession was experienced by almost all countries.
Many major industries have been affected economically. One of the things that Singapore residents have seen as financial security is to invest in properties like condos in The M Condo. At the same time, some bought units in Penrose Condominium.
The panic buying of the property has maintained the number of demands. Therefore, it did not affect the property prices; Despite the pandemic, there was no observed dive in the prices of properties like Penrose Condominium in Singapore. Even The M Condo has maintained its unit prices. With this, some analysts showed concern when buying a property in 2020. As this year is coming to an end, the big question is waiting to be answered. Will 2021 be a good time to buy a condo in Singapore?
Analysts say that 2021 will finally be a good time to acquire a condo unit. It can be in Penrose Condominium or other affordable condos. When you purchase a condo in The M Condo or others, it is best to do it during the transition from the first quarter to the second quarter of the year. Here are the top two reasons why it is ideal to buy a condo in 2021.
Reasons why 2021 is a good time to buy a condo
Property analysts are predicting that there will be an oversupply of new condo units in 2021. This is because of the constructions that have started in 2020. Those that are already too late to delay. Those developments expected to finish in the first quarter of 2021 will increase the number of property supply. Since the residents had already acquired a property in 2020, this supply will not be met with enough demand.
This will then force developers to lower property prices and taxes. Thus, making it a good year to acquire a condo at Penrose Condominium. This is also true for The M Condo, so it will also be a good investment to acquire a unit.
Easy bank application and low-interest rates
Since there will be a low demand for these new properties, banks will also be forced to ease their property loan applications. Low loan interest rates will accompany these easy bank applications. This is to make these loans more attractive to their clients. Without individuals availing of loans, the property side of the bank will be stagnant. Thus profit will also be stagnant. These are only two factors why investing in or acquiring a condominium in 2021 is a good time.
The Singapore property market will always be one of the complicated property markets in the world. That is why it is necessary to research and be well-informed before making any purchases. In 2021, acquiring a condo unit from Penrose Condominium or The M Condo will be a good purchase. Visit us in SRX Property today to know more.
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