Do you remember back in 2003, when property prices were at a low? When $1,500,000 could get you a landed property? Wow! THAT'S CHEAP RIGHT?
What if I told you there were still people complaining how "expensive" the prices were in 2003?
Because these people were comparing to prices 5-10 years ago in 1993-1998.
In the end, prices had set a New Benchmarkand normalised. Those who made the right call to enter during 2003, saw their properties grow in value, some even doubled! Those who were wanted to "wait out" the market, suffered regret and could only blame themselves.
WHAT IF I TOLD YOU RIGHT NOW WE ARE FACING THE SAME SCENARIO AGAIN?
A NEW BENCHMARK
A recent report done by DBS Research showed that, by 2030, on a per square foot (psf) basis, private property prices in Singapore will average at a range of S$2,300-S$2,900,psf from S$1500 currently.
The reasons noted for this increase of a new benchmark is similar to the factors I raised in a previous posts, here and here.
1. Population Growth
2. Rising Demand, Reducing Supply
3. Aggressive En Bloc and Government Land Sale (GLS) Bids
4. Government Transformations
DBS Research has noted the government's plans to achieve a population of 6.9 Million citizens in order to sustain a GDP growth of 2.5-3% per annum.
With our declining birth rate, by 2030, Singapore is projected to have a Core Singaporean Population Base of 3.6~3.8 million. The rest will be filled with Foreigners and Permanent Residents (PRs)
This would raise the demand for housing from the current 15-year average of 12,000 units per year, to 18,800 units per year!
Aggressive En Bloc and Government Land Sale (GLS) Bids
Due to the shortage of GLS sites available, developers are turning to En Bloc sites to replenish their land banks.
And these developers are not afraid of paying premiums for the land they purchase!
Cuscaden Road site – SC Global consortium testing upper limits. A joint venture between SC Global, FEC Properties and New World Development placed the top bid of S$410m or S$2,377 per square foot (psf), which is the highest ever for a government land sales (GLS) site, and more than 8% higher than the second-highest bidder (Shun Tak Holdings).
Chancery Court, a privatised HUDC estate across the road from Anglo-Chinese School (Barker Road), has fetched $401.78 million or $1610psf in a collective sale tender, 6% higher than its reserve price.
In the first 4 months of 2018 alone, 26 sites amounting to S$8.33 billion have sold, already close to the S$8.79 billion done for the whole of 2017!
Developers will have to sell at significantly higher prices to see profit, and resale owners will match these prices. Thus the market will set a new benchmark for itself!
"Infrastructure and land-use planning comes hand-in-hand with population growth. To support a larger population, the Singapore government has a longer term master plan that involves a more efficient allocation of land use. Based on the 2030 masterplan, the plan was to have up to 76,600ha of land will be needed to support a higher population, an increase from the 71,000ha as of 2013."
Most of the increase in land use by 2030 is planned for housing (30% increase), Industry and commerce (32% increase), most of which, will come from land that are undeveloped.
Which means, if you know how to correct study and identify the Masterplan, you will be able to identify growth areas before others!You'll be able to get good valued properties before prices start to increase.
NOW THAT YOU KNOW WHERE SINGAPORE IS HEADED, WHAT ARE YOU GOING TO DO?
If I told you there is a window of opportunity to multiply your asset with personalised, calculated and safe strategy, are you going to take it?
Don't be like those who regretted and missed the boat towards growing their wealth and assets! The money you grow today, may help with your family in the future.
If you want to have the report or find out more about our strategies for you and your family, please feel free to contact us!
Warmest Regards, TeoDuoProperty
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