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Singapore Real Estate Market: Is Buying a Property Worth It?
Dec 15, 2023
Singapore Real Estate Market: Is Buying a Property Worth It? Singapore
By   Internet
  • City News
  • Singapore Property Market
  • Home Buying Values
  • Investment Forecasts
Abstract: The real estate market in Singapore has been a focal point, drawing in many homebuyers and investors with its high-quality condominiums, superior quality of life, and a robust market growth trend. However, for many, buying a property is not only a substantial investment but also a place to call home in the future. In this context, the question of whether buying a property is worth it becomes a topic of significant interest.

According to a research report by Cushman & Wakefield, "Singapore Market Outlook 2024," private residential property prices are expected to rise by up to 3% next year. Despite the impact of increased supply and regulatory measures on market sentiment in Singapore, substantial price drops are unlikely due to the high replacement cost of properties.


Additionally, the forecast mentions the potential decrease in borrowing costs and the elasticity of seller holding power and buyer demand, which may also have a positive impact on property purchases.

Singapore Real Estate Market: Is Buying a Property Worth It?

However, the decision to buy a property is not solely based on factors related to price appreciation; it also requires a comprehensive consideration of lifestyle, future planning, and personal financial situations. Especially in Singapore, buying a property involves considering high stamp duties and other acquisition costs. Different individuals face varying additional Buyer's Stamp Duty (ABSD) rates when purchasing property.


For Singapore citizens, there is no ABSD for the first property bought in Singapore. For the second property, an additional 20% of the property price is payable as ABSD, and for the third property and beyond, it increases to 30%.


Permanent residents of Singapore pay 5% ABSD for the first property and 30% for the second property. Foreigners who have not immigrated to Singapore are subject to 20% ABSD for any property purchase.


Given this context, for prospective homebuyers, the decision to purchase should be a comprehensive one, considering various factors and making a prudent choice based on individual financial conditions and future plans.


For those who see long-term investment potential and stability, emphasizing quality of life, buying a property might still be an attractive option. However, for others, renting may provide a more flexible and adaptable choice.

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Singapore Real Estate Market: Is Buying a Property Worth It?
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