The Cost of Housing – Affordability vs Premium?
TLDR The blog post discusses the challenges Singapore faces in housing affordability, particularly the rising costs of private homes compared...
Read More
TLDR
The blog post discusses the recent relaxation of real estate restrictions in Hong Kong, contrasting with Singapore’s stricter regulations. It explores the impact on foreign investors, cultural influences, and potential shifts in the property market. Additionally, it touches on parking issues in both Singapore and Hong Kong, proposing solutions to promote a car-lite society. Lastly, it mentions considerations for buying or selling real estate in the current market.
Well, isn’t it great to see someone finally relaxing their real estate restrictions!
But alas, it’s not us. Nope, it’s happening over in Hong Kong, where they’ve just cut the additional property taxes for foreigners from a whopping 15% down to a more manageable 7.5%.
Fun fact, folks in Hong Kong call these taxes “spicy measures”. Meanwhile, we coolly refer to them as cooling measures. I’d say we win that round, because if you’re going to shake up your real estate market, wouldn’t you rather do it with a ‘chill’ nickname than one that screams discomfort?
But then again, Hong Kong’s in a different ball game than us. With China working hard to boost confidence in its property market and Hong Kong still dusting itself off from political protests and the Covid-19 impact, pulling in investors seems like a smart move.
This has raised some eyebrows back home in Singapore though. For years, Singapore, Hong Kong, and Australia have been the go-to locations for foreign real estate investment. In recent times, Singapore took the lead, thanks to Hong Kong’s hiccups; plus, Chinese property investors feel a cultural draw to Hong Kong and Singapore. But let’s take a moment to assess our current position:
With a 60 per cent ABSD for foreigners, Singapore now boasts the highest stamp duty rates for non-residents. We’re also bracing ourselves for an increase in compliance issues, especially within banks and real estate firms dealing with foreigners. And we can thank the bad apples who tried to funnel more cash through our real estate market than the GDP of some small countries for that!
Some property agents, and even mortgage brokers, are starting to whisper that we’re “handing over” business to Hong Kong. With a 60% Additional Buyer’s Stamp Duty (ABSD), it’s quite possible we might lose a few foreign investors to other places, including Australia.
But honestly, I don’t think it’s that bad.
Firstly, Singapore has largely stayed out of international conflicts, like those between the US or Australia and China. Most would agree that we hold a beautifully neutral position, except for the occasional grumpy old fella at the local café who gets a bit prejudiced after a few beers. We also have a unique culture that somehow resonates with both the East and West.
We’re comfortable enough to share a glass of wine with Americans and Europeans while still enjoying spicy Sichuan cuisine without breaking into a sweat. I really think this is our ace in the hole for drawing in foreign buyers: it’s not just about the numbers, but our global-minded culture that brings us together where statistics can’t.
Still, it’s going to be intriguing to see if Hong Kong’s easing of restrictions will boost their property market – and what kind of impact that might have. This is especially interesting since rules here in Singapore have only gotten stricter, with very few instances of relaxation (the only one I can recall is some improvement in the Seller’s Stamp Duty).
I can’t help but wonder what would happen if our ABSD rules were ever loosened up a bit.
Hey, Guess What? We Share A Surprising Commonality With Hong Kong – Pesky Car Park Issues!
You’ve likely heard the chatter about how parking lots in Hong Kong can cost more than a house. With limited space for cars, just like here in Singapore, the thought of your parking spot being a 20-minute walk from your home is a real downer, right?
Lately, we’re seeing similar property and parking problems popping up in our little red dot. Remember back in 2019 when LTA allowed developers to design properties with fewer car park slots?
Now, condos in CBD areas or within a stone’s throw of an MRT station can reduce their car park allotments. This means no visitor parking for some spots and a real headache for families with multiple cars. However, it does add a touch of charm to older resale condos.
Take a good look at projects from the ’90s and earlier. You’ll find many with two parking spaces per unit. Space wasn’t such a luxury then!
So, if we’re serious about pushing a car-lite society in Singapore, maybe real estate holds the answer. It could be as effective as the COE system. I reckon the government should take a leap of faith and encourage developers to build condos or HDB blocks with fewer parking spaces. These could be cheaper due to lower construction costs associated with underground or multi-story car parks.
This might lead us down a path similar to Hong Kong and Shanghai, where each unit doesn’t include a car park space. Instead, you’d have to buy your car park slot separately.
But would anyone bite? I’m betting on yes. Imagine getting an extra room, freehold status, or a centrally located unit just by sacrificing a car. Considering how expensive cars are these days, I reckon more and more Singaporeans might be open to this trade-off.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Should Foreign Buyers Be Deterred By the 30% ABSD?
TLDR Foreign buyers interested in private residential properties in Singapore is a common sight due to the country's positive reputation...
Read More
A Executive Summary Guide to the Singapore Real Estate Market 2023 and Beyond …
TLDR The Singapore real estate market is vibrant, driven by a strong economy, stable business climate, and attractive investment opportunities....
Read More
Buying HDB Resale : How to Minimise COV
TLDR Understanding Cash Over Valuation (COV) is crucial when buying a resale HDB flat in Singapore. COV is the additional...
Read More
5 Qualities to Look for in an Agent to Ensure a Smooth Transaction
5 Qualities to Look for in an Agent to Ensure a Smooth Transaction Here are 5 qualities to look for...
Read More
Unlock The Key To Selling A Home With A Perceived Disadvantage Like Being West-Facing Or Close To A Rubbish Chute – Here’s How!
TLDR When selling your house, turn perceived disadvantages into advantages. For sun-facing homes, use UV sheets and blinds to manage...
Read More
Ouch! Our $1.8 Million Condo Investment Blunder: Unpacking 5 Crucial Takeaways from Our Bad Experience
TLDR The blog post delves into the complexities of real estate investments using Bob's experiences as examples. It highlights the...
Read More
A Guide to Purchasing a New Launch Condo in Singapore in 2023
TLDR When buying a new launch condo in Singapore, start by planning your finances to determine loan and property limits....
Read More
Rising Interest Rates : A Cause for Concern?
TLDR In 2021, the real estate market saw a surge in demand due to low interest rates and supply chain...
Read More
5 Reasons Why Singapore Loves Investing in Properties
Property investing is a popular and lucrative option in Singapore due to several reasons. Firstly, Singapore's stable and growing economy...
Read More
Top 5 Factors to Consider When Choosing a Property in Singapore
The top 5 factors to consider when choosing a property in Singapore. Whether you're a seasoned investor or a first-time...
Read More
Don’t Miss Out: Take Control of Your Life in Your 30s and 40s
TLDR The stages of wealth management vary from ages 30 to 80, with different focuses and considerations at each stage:...
Read More
Top 5 Rooftop Bars in Singapore with Amazing Views
Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...
Read More
Breaking Through the Stalemate of En Bloc Sales
TLDR The Singapore property market faces challenges with the ongoing en bloc stalemate. Lower success rates, higher development risks, and...
Read More
Singapore Private Residential Market Outlook 2023
TLDR The Singapore residential property market has shown resilience in 2022, with price growth in both private housing and HDB...
Read More
Could You Still End Up Losing Money When Buying Property in Singapore During a Market Slump?
TLDR When it comes to property investments, timing is crucial. Buying at the right moment is only half the battle;...
Read More
Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies
TLDR Jayson Ang provides valuable insights on money-saving strategies to achieve the goal of owning a flat before turning 35...
Read More
Introducing Top 5 Power Property Tips
Hello, everyone! We are excited to welcome you to our blog posts! On this blog, we will be sharing daily...
Read More
The Impact of a Real Estate Agent on Your Property’s Selling Price
TLDR In the world of real estate, the value of property agents lies in their ability to create competition among...
Read More
3 Things You Need to Know if You Are Buying a Second Property
TLDR When considering buying a second property in Singapore, ensure eligibility by meeting the Minimum Occupancy Period (MOP) and understanding...
Read More
