Known for its strong economic growth, job stability, superb educational system, conducive business environment and world-class healthcare, Singapore is considered by many as a prime location to invest in. Singapore’s positive reputation attracts an influx of foreign immigrants and investors. Singapore’s overall real estate market has grown over the years.

Singapore’s commercial real estate is expected to reach $140B this 2015 with a transaction volume of $43 billion in the last quarter of 2014.

Reasons to invest in Singapore Real Estate 

Singapore Real Estate: Residential use

Are you a single person looking for a place where you can settle in and enjoy your independence? Perhaps you are looking for a house where your family could live in? Most people dream of having their own house to settle in.

Owning your own house gives you security, stability and flexibility. You have a roof over your head and a permanent place to call home. You also get the choice to decorate your place the way you want to. Financial wise, Singapore’s rental is still higher than mortgage based on the current rates. Hence, it makes more sense for most people to invest in their own homes.

For those who are looking to buy a residential property, it is vital for you to know that prices fell by 4% last year according to the reports. Property analysts predict that you can expect a double-digit decline in the price of residential real estate this year, especially the high-end ones.

Read: 5 Property Websites In Singapore To Buy, Rent & Sell Houses

Singapore Real Estate: Investment

Buy low, sell high– a motto that will benefit anyone, including real estate investors.  A boom, a slump and a recovery will always happen in Singapore’s real estate property values.

The current trend indicates that the price of the residential real estate has been declining over the last few years. However, in the long term, property prices are mostly expected to appreciate. The value of Singapore’s property had increased significantly over the last 25 years.

To some, buying a property is also a hedge against inflation.

  • Rental
    For some investors, collecting rents is the first immediate return they enjoy. Most buyers rent throughout their ownership period before realizing the capital appreciation of their property. Rental generates a passive source of income for its owners. Regardless of industrial, commercial or a residential property, the rental market in Singapore has become promising given its economic openness to foreigners.Although renting is a practical mean of profiting from your assets, the gross rental yields in Singapore remain poor, ranging between 2.35% to 3%, lowest it has been in decades.However, if you look at leasehold property in the mass market district where your initial capital outlay is smaller, you can get a rental yield above 5%.If you are looking to buy a property to rent, do note that rental rates are influenced by demand, economic situation, Singapore’s growth, number of foreigners inflow and supply.

Singapore Real Estate: Different Kinds of Properties

Residential, industrial and office properties are options that individuals and companies can choose from. It is important to have a basic idea about the nature of each type of real estate property that you could purchase in Singapore given the fact that real estate is a serious long-term investment.

Singapore had optimized space efficiently through proper urban planning. Almost 82% of the current population is living in public housing managed by the Housing and Development Board. These are affordable housing options located in areas with a hospital, school, supermarket and even sports as well as recreational centres.

According to reports, there will be 1.4 million flats in Singapore by 2018. If these numbers are correct, that is an 11% jump from the current number of flats.

  • Industrial

As a business centre in Asia, Singapore needs to cater to enterprises of all sizes. Singapore has a healthy market for leasing industrial real estate properties. Renewals and commitments of companies aiming for expansion all contributed to growth in the industrial real estate sector.

Industrial properties are mainly used for productions, warehouses, storages, workshops and business parks. Most industrial properties have 30-60 years of the lease. Rare but there are some that have a 99-year lease or are freehold. It is rare but there are some that have a 99-year lease or are freehold.

Industrial lands are categorized into 3 categories:
Business users are intended for industries, warehouses, utilities and telecommunication uses.

  • Commercial

Office real estate is promising in Singapore due to the myriad of businesses attracted to Singapore.  A main differentiating factor between commercial and industrial properties is that the commercial properties do not cause disturbance to the surrounding environment.

This includes air pollution, loud noises and safety hazards. Some examples of commercial developments: office blocks, shopping centre, shop houses, development buildings that have shops on the first storey and mixed, commercial as well as residential buildings.

Locations are labelled as Grade A or Grade B.  Occupancy rate is mostly above 80% in different parts of Singapore regardless of it being a premium, a Grade A or a Grade B location. Office real estate yield experienced a 6.1% jump in its yield from the third quarter of 2014 to its 2014’s 4th quarter, springing momentum for the first quarter of 2015.

As of the 4th quarter of 2014, the highest average rent in Singapore’s office space for Grade A location is at $11.9 per square foot monthly in New Downtown area. The cheapest average rent in a Grade B location is a suburban area at $4.38 per square foot monthly.

Infographic: Buying Private Property In Singapore

Recommend0 recommendationsPublished in Property
Previous articleTips For Success: How To Make Your First Million Dollar
Next articleCan’t pursue that MBA? 4 Alternative Career-Advancing Choices You Can Take
Founder @ The New Savvy
Anna Haotanto is the Advisor (former CEO) of The New Savvy. She is currently the COO of ABZD Capital and the CMO of Gourmet Food Holdings, an investment firm focusing on opportunities in the global F&B industry. She is part of the founding committee of the Singapore FinTech Association and heads the Women In FinTech and Partnership Committee. Anna is the President of the Singapore Management University Women Alumni. Anna invests and sits on the board of a few startups. Anna is also part of the Singapore Chinese Chamber of Commerce & Industry Career Women’s Group executive committee. Anna’s story is featured on Millionaire Minds on Channel NewsAsia. She hosts TV shows and events, namely for Channel NewsAsia’s “The Millennial Investor” and “Challenge Tomorrow”, a FinTech documentary. Anna was awarded “Her Times Youth Award” at the Rising50 Women Empowerment Gala, organised by the Indonesian Embassy of Singapore. The award was presented by His Excellency Ngurah Swajaya. She was also awarded Founder of the Year for ASEAN Rice Bowl Startup Awards. She was also awarded the Women Empowerment Award by the Asian Business & Social Forum. Anna has been awarded LinkedIn Power Profiles for founders (2018, 2017), Tatler Gen T, The Peak’s Trailblazers under 40 and a nominee for the Women of The Future award by Aviva


Please enter your comment!
Please enter your name here