In Singapore, real estate market is really interesting at this point. At the threshold of 2018, many people have begun wondering if this is the right time to invest in land. The entry prices seem good enough, while there are worrisome rumors as to the coming year making things worse. Rumors of the enbloc market and collective sale add to the temptation of buying property early, especially as a form of prudent investment.


Should you invest in the real estate market of Singapore or should you hold on to your money, in anticipation of even better conditions? Will your idleness be proven catastrophic to your plans of maximized profit or not?


What’s the Status Now?


As mentioned above, now there is still the chance to spot some good buys at reasonable entry prices. This is great since developers will be looking forward to buying land pretty soon. So this means that the prices will be increasing, without any indication of when this is going to stop. The upward trajectory of price rates will be continuous, steady and damaging when it comes to investments.


The collective sale is spreading like the plague, taking everyone by storm and affecting real estate market uncontrollably. When there are many buyers interested in limited properties, these properties suddenly become golden. As a result, land bid turns into a goldmine for sellers.


Unfortunately, stocks are already running low. Before you know it, the fever of enbloc market will have taken over Singapore, and such investments will not be available anymore. There is a high likelihood that buyers will search for a private condo or other property and will not find any. And when they do come up with property sale, it will be way over their reach.

Developers are starving for land, without any hint of exaggeration. In search of launching their grandiose projects, they are willing to pay much higher prices. Regardless of the land bid, it will be met due to the increased demand. Due to the great margin of profit at stake in Singapore, they look the other way and pay as much money as is required to acquire the land.

government_land_sales_collective_salesWith land bid premium 29% to some 77% higher than neighboring sites


Buy Now or Wait?

As the title suggests, real estate market in 2018 does not sound optimistic. Instead, the first signs indicate that the prices will skyrocket. So whoever owns the property will become king in Singapore. Developers are already on the lookout, trying to get their hands on the most convenient parts of the country to launch their projects.


But condominiums and other developmental projects are bound to happen in 2018. There is increased demand for land so that it can be transformed into modern establishments. Such high demand is the most eloquent proof of what is going to take place within the next year. The appetite among developers for big sites is insatiable.


So buyers now face a great challenge. They can be prudent and think ahead or go with the flow. If they choose the latter, they might as well be looking for a different destination. In 2018, enbloc market and the overpriced land bid will prevail in Singapore.


16 collective sale done in the year of 2017, with another 12 development pending.


If, however, they choose the former, they may be looking forward to maximized profit. They have the opportunity to buy early and then indulge in the most fruitful collective sale of all time. It is the epitome of great investment to buy low and sell high. Rather than prolonging the market research period and staying idle, buyers are encouraged to act fast.


Property is not unlimited, and if you are interested in the good stuff, you are running out of time. Good buys will not be there forever. Instead, they will be out of the market sooner than later. Developers will have bought them, in order to start building their pipeline of projects.


Risk Assessment

Every decision to invest obviously comes with an amount of risk. Therefore, there’s three steps of consideration before committing yourself into the biggest asset in your life.

  1. Entry Price (Certainly, if an agent tells you, you can just buy any developments, please engage another. With the market’s behavior, we spot only 3 developments that are worth the heart attack today)
  2. 3.5% Credit Assessment (MAS ruling to keep financial prudence in check)
  3. Stress Test (Measurements to make sure that in the event when you’re not able to rent out your place, or when the interest rate rises, would you still be able to handle.)
    —– If all of the above is yes, then you’re safely covered with 3 layers of protection —–


The collective sale will allow you to sell the property that you have bought, at a far higher price. This is of course not a blind guess, rather than a well-structured conclusion. Through the examination of developers’ attitude towards buying properties in Singapore and based on the enbloc sale that is about to launch, there is no actual risk for buyers.


The only thing you should worry about at this time is the determination of reasonable pricing. Ever since analyses of the real estate market have been put in the limelight, offers seem to be heading upwards. It makes perfect sense that all property owners wish to profit from the upcoming trend.


Even if someone is urged to sell right away due to financial problems, the option of profiting more by holding on to the property for a little longer sounds appealing. So the real question is where to come up with good buys at relatively low entry prices.


Bottom Line


Things in Singapore are changing rapidly, as far as real estate market is concerned. Developers are about to launch an unprecedented land hunt, which is going to benefit those who own any type of property in the country. In 2018, predictions call for enbloc market and collective sale to those who really need to buy.


Buyers are indeed intrigued by the current situation. It is going to be a truly beneficial time period, not only for buying land that you can use. Even more than that, 2018 is going to be the perfect time for buying and then selling out your property at higher price rates.


As things seem to progress, the profit margin here is amazingly high. Therefore, any buyer interested in fruitful investments should take the real estate market into consideration and decide accordingly.