Singapore’s property market has been a topic of discussion over the past couple of years. The country saw property market prices peak in 2013. This, in turn, led to the government stepping in to curb further price hikes, resulting in a drastic downward trend in the property prices for the next couple of years. What can we expect in the next few months or in 2020 and beyond? Well, to get a good overview of the future of Singapore property market, let’s begin with some of the things that have been happening in the recent past.

Down, Then Upward Price Trend

Singapore’s property market has experienced ups and downs in its pricing. As hinted above, since the property prices peaked in 2013, the government put in place structures to stabilize prices. Government involvement made prices to assume a downtrend. Towards the end of 2017, however, prices started going up after the government softened its stand. Now, available land has become scarce leading to developers fighting fiercely for the little land available. This explains the high prices. Actually, 2018 saw property prices in Singapore reach an imaginable peak that has spilled over to 2019.

Government seems Accommodating

As the saying goes, history tends to repeat itself. Since Singapore’s property market started recovering towards the end of 2017, the prices have been going up. This year, the government has put in place measures to bring down property prices. This has come with fierce opposition from various stakeholders in the property market, especially developers. The good news, nonetheless, is that the move will definitely lead to a drop in prices. On the other hand, uptake of property from buyers will increase due to the drop in prices. In this case, properties that are likely to be in high demand include apartments, offices, and retail shops. Due to the scarcity of available land, we are likely to see land being bought for redevelopment. This will mostly be for high rise buildings and skyscrapers.

Foreign Investment on a Decline

Back in 2010, foreign investment in Singapore’s property market was at 20%. A report published by RHB stated that foreign investment had fallen to 5% in 2018. This is an indication that over the years, foreign investors have been withdrawing their investment from Singapore’s property market.

Bottom-line

Singapore’s property market will likely experience a hit by the end of the year. Measures taken by the government to increase Stamp duty and tax on land purchases is a clear indication that property prices in Singapore are likely to rise. So, investors are in for an exciting ride.