An unprecedented 2020 – Disappointing GDPs
The pandemic took the world by surprise in 2020 and rocked everyone out of their comfort zones. The GDP of most economies contracted, with USA indicating its worst since 1946 & Singapore recording a -5.8%. Though it was better than what the government forecasted – -6-6.5%, this is Singapore’s worst performing year.
Property Market 2020
While it was a gloomy economy, Singapore Property Market was relatively unfazed, with a neat 2.2% growth in private home prices.
Strong Demand in Singapore Real Estate
Although a small country, Singapore dealt with the unprecedented pandemic in a calm and systematic way which kept the situation under control with low mortality rate.
The government introduced numerous support schemes (Jobs Support Scheme, Care and Support Package, Stabilisation and Support Package etc), successfully maintained an orderly and safe living environment amidst chaotic times. This piqued the interest of many in this small country.
Many firms are also establishing their presence in Singapore eg Amazon, ByteDance etc. Probably attracted by the support rendered by the government at the onset of the pandemic. There have been both residential and commercial real estate acquisitions during this period. This do have rippling effect in attracting the affluent to Singapore Real Estate
Attractive Loan Rates, LTV
The housing loan rates is currently about 1.3%-1.5%. This is much lower than most countries.
For the first loan, residents can loan up to 75%. While non-residents can still take up a housing loan, the LTV may be lower.
No Inheritance or Capital Gain Taxes
For legacy planning, the absence of inheritance and capital gain taxes does have its plus points. In the event if the residential property is being rented out, the rental income is subjected to income tax. Allowable expenses can be deducted.
Strength of Singapore Currency
The stable Singapore Dollar is also another consideration factor. In 2003, 1 SGD is equivalent to about USD0.56. Currently 1SGD can be exchanged for about USD0.76.
Is Singapore Real Estate still worth Investing?
Whether is it for relocation, investing, work, school, Singapore has it all.
