Singapore and the excess of construction
Who has too much and who has little. The right measure is fundamental in every area, especially in real estate. In fact, it is not always easy to converge demand with supply. People change their needs quickly, the same market innovations affect customer choices.
In short, the forecasts are never too many! But there are situations in which there is an excessive imbalance towards one of the two parts of the market. And that is what is currently happening in Singapore in the construction sector. Considered a fundamental element for real estate, we have decided today to analyze this phenomenon, to better understand both its dimensions but also its hypothetical consequences.
And then, if you are ready, we can start!
The city state of Singapore has 32,000 homes. A crazy number. Too bad, however, that none of these found an interested buyer. But why? We assume that the base price does not seem to be so attractive for an investor's portfolio. In fact I know from 17,500 euros per square meter. Although it is assumed that prices may fall, it is obvious that the market is currently stalled.
If Hong Kong shakes, for the reasons we have already expressly indicated in the previous sections, Singapore is not doing better. The excess of the offer of properties (we remind of a residential nature) will not be able to be disposed of in the next year. However, the real estate market recorded about 1,150 sales regularly in the past month through contracts. A number too low, to cope with the rampant crisis that is suffocating Singapore.
A situation was further weighed down by a general disorder, arising from the fragmented and uncontrolled tourist flows in the city. The increase in taxes also played a decisive role in increasing an already substantial discomfort. More and more salty and numerous. It should be remembered that, in recent years, new types of taxes have been included, obviously not particularly appreciated by the population.
Therefore, the increase in sales was not so consistent, which is why the situation is truly tragic. Another element that certainly does not allow the economic revival in the construction sector before and in the real estate sector by reflex, is that related to the presence of numerous construction sites still open that are completing further apartments. Which means that it is not just about 32,000 unsold properties. To these, in fact, those not yet completed must be added.
How does the situation look for 2020? Not positive, according to statistical surveys. The solution could be represented by the adoption of programs aimed at reducing taxes, to allow easier access to the real estate, by potential investors. Obviously, there are no reliable data. But our only certainty is given by our strong interest in this phenomenon and, in general, in the world real estate. Reason why, to learn more, we invite you to stay updated on our portal!
In short, the forecasts are never too many! But there are situations in which there is an excessive imbalance towards one of the two parts of the market. And that is what is currently happening in Singapore in the construction sector. Considered a fundamental element for real estate, we have decided today to analyze this phenomenon, to better understand both its dimensions but also its hypothetical consequences.
And then, if you are ready, we can start!
The city state of Singapore has 32,000 homes. A crazy number. Too bad, however, that none of these found an interested buyer. But why? We assume that the base price does not seem to be so attractive for an investor's portfolio. In fact I know from 17,500 euros per square meter. Although it is assumed that prices may fall, it is obvious that the market is currently stalled.
If Hong Kong shakes, for the reasons we have already expressly indicated in the previous sections, Singapore is not doing better. The excess of the offer of properties (we remind of a residential nature) will not be able to be disposed of in the next year. However, the real estate market recorded about 1,150 sales regularly in the past month through contracts. A number too low, to cope with the rampant crisis that is suffocating Singapore.
A situation was further weighed down by a general disorder, arising from the fragmented and uncontrolled tourist flows in the city. The increase in taxes also played a decisive role in increasing an already substantial discomfort. More and more salty and numerous. It should be remembered that, in recent years, new types of taxes have been included, obviously not particularly appreciated by the population.
Therefore, the increase in sales was not so consistent, which is why the situation is truly tragic. Another element that certainly does not allow the economic revival in the construction sector before and in the real estate sector by reflex, is that related to the presence of numerous construction sites still open that are completing further apartments. Which means that it is not just about 32,000 unsold properties. To these, in fact, those not yet completed must be added.
How does the situation look for 2020? Not positive, according to statistical surveys. The solution could be represented by the adoption of programs aimed at reducing taxes, to allow easier access to the real estate, by potential investors. Obviously, there are no reliable data. But our only certainty is given by our strong interest in this phenomenon and, in general, in the world real estate. Reason why, to learn more, we invite you to stay updated on our portal!
