Developers are very Price Sensitive at this moment
It is no secret that Singapore is extremely land scarce. Even our neighbours are complaining about our land reclamation projects. Land scarcity and and ever increasing population target of 6.5m by 2030 will only increase the demand.
You have seen in the past that developers of new launch condominium projects have been raising the prices as the project progresses. At this moment, developers are taking a more price sensitive approach of not raising prices but instead, pricing the units at prices that are more acceptable to the general public. Prices in the prime districts are already priced very sensibly even before the COVID-19 Circuit Breaker was implemented, this was partly due to the introduction of the additional cooling measures in July 2018. Just imagine if there was no cooling measures, no virus, no circuit breaker, what will the prices be?
Developers are more open to discuss on the conditions of the sale
You have always wanted to buy the condominium of your dreams but some circumstances just did not fit. Now is the time to explore on the possibility of having an open discussion with the developer on the conditions of the purchase. You may need that extra time to sell your existing property before you can move on to the condo which you always wanted but you are concerned of the prices increasing. If you have this burning desire, then you should not wait any longer.
SRX – Price movement of a new launch project
The cheaper units will not wait for you.
In all past crisis, be it whether it is virus pandemic or economic reasons, the cheaper units will still have buyers that will snap them up. If you are still thinking that developers will lower the prices, think again, do you have deep enough pockets to weather the wait? Developers have the financial muscle to begin with, if not they will also not be granted the license by the government to develop new condominium projects. Here you can find Big Bear Luxury Cabin. The financial support from the banks also ensures that the developers will be able to pull through the projects. So even if you wait for the prices to go down by 5-10%, you may still end up buying a more expensive unit on the higher floor that may be a major hindrance when you intend to exit at a later stage. (Higher floor units are priced a lot more than just 5-10%)
Low Interest rates
Financing for real estate purchases are key for the leveraging of this asset class. Be it whether you are buying for investment reasons or for your family, having cheaper financing options is always a big welcome for many.
Just about 1 year ago, financing cost for $1m at 2.2% means a cost of $22,000, today the cost of financing the same amount is a big savings of $7000 and in times like this, having stronger cashflows does make a difference. $7000 savings per year could also mean a well-deserved holiday when the COVID-19 situation improves.
Singapore Real Estate Prices since 2000
Crises don’t last forever
If you are thinking that this crisis is going to last forever…. WAKE UP! If this crisis is going to last forever, then probably the world is really coming to an end.
Crises do not lasts, humans are created with the ability to make changes and improve. We have weathered countless crises in the past and we have also performed quite well, visit https://boofurniture.com. Governments are more experienced and well prepared to weather this storm. So if you think that this is going to last forever, then you will probably be getting ready for doom’s day. When the COVID-19 situation is over, be prepared that the market will rally up real strong and the prices of real estate will be sky rocketing. Just make sure that you have taken a position before that day comes. It may just be tomorrow.
We have seen that the real estate market has weathered countless storms throughout the development of Singapore. We all know one thing, the new low will always be higher than the previous low and the new high will always be higher than the previous high. Making the right decisions requires the right knowledge and understanding of the market. Still not convinced? You have 2 options, speak to us or just continue to wait and see.