Your search results

Top 5 Reasons : Why Investing In Singapore’s Property Market Is Recession-Resistant

Posted by Jayson Ang on August 15, 2024

| 0

Singapore’s property market has long been considered a safe haven for investors, even during times of economic uncertainty. The city-state’s unique combination of political stability, low crime rates, and a robust economy make it an attractive destination for both local and foreign investors.

We will explore the top five reasons why investing in Singapore’s property market is recession-resistant, providing a solid foundation for long-term growth and wealth creation.

1. Political Stability and Low Crime Rates:

One of the key factors contributing to the resilience of Singapore’s property market is its political stability and low crime rates. Investors are drawn to the nation’s strong governance, which ensures a stable environment for businesses and investments to thrive. This stability translates into a secure and predictable real estate market, making it an attractive option for investors during times of economic turbulence.

2. Strong Demand for Housing:

Singapore’s high home ownership rate of nearly 90% as of 2021 is a testament to the strong demand for housing in the city-state. With a growing population and limited land space, there is a constant need for new residential developments. This demand helps to support property prices, even during a recession, as people continue to seek quality housing options.

3. Attraction of Foreign Investment:

Singapore’s property market is known for attracting foreign investors, who see the nation as a safe and stable place to park their assets. In the first eight months of 2022, buyers from China accounted for about one-fifth of the 425 luxury condos sold in Singapore. As global economies face uncertainty, more foreign capital may flow into Singapore’s real estate market, further bolstering its resilience during a recession.

4. Limited Supply of New Developments:

Due to Covid-19 disruptions, net new housing in Singapore has fallen below the 10-year average. As of the third quarter, 78% of planned private residential units were under construction, down from 90% in the same quarter in 2021. This limited supply of new developments helps to maintain property prices, as demand continues to outpace supply.

5. Diversified Economy:

Singapore’s diversified economy, which includes strong export-oriented sectors such as manufacturing, trade, and finance, helps to cushion the impact of a recession on its property market. While the city-state may not be immune to global economic downturns, its diverse economic base provides a level of stability that supports the real estate sector during challenging times.

In conclusion, Singapore’s property market has proven to be recession-resistant due to a combination of factors, including political stability, strong demand for housing, foreign investment, limited supply of new developments, and a diversified economy. These factors make investing in Singapore’s property market an attractive option for those seeking long-term growth and wealth creation, even during times of economic uncertainty.

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 …

All Blog Posts Buying Tips

4 Simple Strategies to Help Future Homeowners Save Money

Jayson Ang – July 15, 2023 –

TLDR When it comes to being a new homeowner, it's essential to prioritize regular maintenance to avoid costly repairs down...

All Blog Posts Buying Tips

How Can Decoupling Help You in Buying a Second Property?

Jayson Ang – July 1, 2023 –

TLDR Decoupling property ownership in Singapore can help you avoid hefty Additional Buyer's Stamp Duty fees when purchasing a second...

Mandarin Top 5

5 Factors : The Benefits Of Investing In A Property With Good Access To Green Spaces In Singapore

Jayson Ang – June 30, 2024 –

Real estate investment has always been considered a sound investment decision, as it offers long-term growth potential and a reliable...

All Opinion

Should We Reconsider the ABSD Rates?

Jayson Ang – January 5, 2025 –

TLDR We explore the need to reevaluate the current Additional Buyer's Stamp Duty (ABSD) rates in Singapore, considering their impact...

Mandarin Top 5

Top 5 Places to Learn About Singapore’s History

Jayson Ang – August 9, 2024 –

Singapore, a thriving metropolis with a rich history and diverse cultural heritage, offers numerous opportunities for visitors and locals alike...

Mandarin Top 5

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds

Jayson Ang – May 21, 2023 –

From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...

All Buying Tips Opinion

Are Early Bird Discounts At New Launches Genuine Or A Marketing Gimmick?

Jayson Ang – November 20, 2023 –

TLDR When considering investing in new property projects, understanding developers' pricing strategies is crucial. Early bird discounts are not just...

Mandarin Top 5

Top 5 Vegetarian Restaurants in Singapore

Jayson Ang – March 14, 2024 –

Singapore, a melting pot of cultures and cuisines, offers a diverse range of dining options for food enthusiasts. For vegetarians,...

All Blog Posts

HDB Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...

All Blog Posts Buying Tips

What is a Tenancy Agreement (TA)

Jayson Ang – July 21, 2023 –

TLDR When it comes to understanding property jargon, it's crucial to familiarize yourself with the specifics of a Tenancy Agreement...

All Buying Tips Opinion

Singapore’s HDB Projects: From Unique Landmarks to Just Another Brick in the Wall?

Jayson Ang – January 12, 2024 –

Take a look at this chill spot in Yew Tee. Someone's gone all out to make it feel like an...

All Blog Posts Buying Tips

6 Essential Factors HDB Upgraders Should Be Aware Of Before Purchasing a Condo in 2023

Jayson Ang – June 12, 2023 –

TLDR When upgrading your property, consider factors like rental rates, Buyer's Stamp Duty adjustments, higher interest rates for bank loans,...

Mandarin Top 5

Singapore’s Property Insights : Where to Find 5 Hidden Gems?

Jayson Ang – June 14, 2023 –

Singapore's Property Insights : Where to Find 5 Hidden Gems? With its booming economy, vibrant culture and attractive regulations, Singapore...

Buying Tips Mandarin Top 5

5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers

Jayson Ang – July 25, 2023 –

TLDR Renting property in Singapore as a foreigner can be challenging due to the high cost of living. To navigate...

Mandarin Top 5

Top 5 Secrets : Foreign Investors Are Rarely Told About Singapore’s Real Estate Market

Jayson Ang – November 19, 2024 –

Singapore's real estate market has been a popular choice for foreign investors due to its stable economy, strategic location, and...

Buying Tips Mandarin Top 5

5 Things to Know About Singapore’s Freehold & Leasehold Properties

Jayson Ang – June 10, 2023 –

5 Things to Know About Singapore's Freehold & Leasehold Properties Here are 5 things you need to know about Singapore's...

All Blog Posts

Singapore Private Residential Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR The Singapore residential property market has shown resilience in 2022, with price growth in both private housing and HDB...

Mandarin Top 5

The Top 5 Factors to Consider When Investing in Industrial Property in Singapore – Expert Insights!

Jayson Ang – September 18, 2024 –

Singapore, a thriving hub of business and commerce in Southeast Asia, offers a robust real estate market with various investment...

All Buying Tips Opinion

Three Singaporeans Share Their Experiences of Co-Owning a Property with Friends

Jayson Ang – March 18, 2025 –

TLDR In Singapore, some individuals venture into property investments with unrelated partners, driven by opportunities and personal circumstances. Jim, leaving...