Is investing in real estate in Singapore a good idea?
Singapore’s property market is a haven for foreign investors, and property values appear to be growing steadily. The Singapore property market registered growth in 2021 during the COVID-19 pandemic. According to specialists, there were over 28,000 residential transactions during that year, reaching $2 billion in sales. This represents an increase of 57% when compared to 2020, when the total transaction volume reached 18,295.
You can find affordable projects in Singapore, with nine of the top 10 best-selling projects in the Outside Central Region (OCR). This is mainly due to the good performance of launches in the last two years and the preference for larger residences brought by long-lasting home office contracts.
In the hospitality industry, the Singapore Tourism Board (STB) has launched BOOST (Building On Opportunities to Strengthen Tourism), a $90 million initiative to increase tourism. Business travel, meetings, conventions, and exhibitions are some of the main sources of revenue for the country’s hotel real estate sector. This huge investment in the industry shows that investing in real estate can give quick results for short-term stays.
Besides tourism, Singapore has been attracting investors and speculators thanks to its vibrant economy. The number of unique family offices in the city-state has doubled since the end of 2019 to around 400, including companies recently created by Google co-founder Sergey Brin and Shu Ping, the billionaire behind the Chinese empire Haidilao International Holding. Singapore is considered one of the safest and best places in the world for the rich. Also, there is an important internal demand for bigger and better urban houses, considering that the region’s middle class is expanding and getting richer.
If you are thinking of investing in Singapore’s real estate and don’t know where to start, take a look at these strategies we carefully studied for you:
Renting Out Properties
From a financial standpoint, you will need to calculate a rental income that exceeds the monthly amount of your mortgage to ensure that you will make a profit. Of course, before you invest, it is indispensable to have some money set aside to cover the costs of any possible renovations and repairs. Consider renting through platforms like Airbnb or Booking or hiring a short-term rental management company.
Investing in REITs (Real Estate Investment Trusts)
One of the biggest drawbacks to selling or buying a rental property is the enormous capital required to get started. Often, investors will need a long mortgage and a hefty up-front deposit before taking advantage of the property. This is where Real Estate Investment Trusts (REITs) come in as a viable investment alternative. REITs hold or finance income-producing real estate across a spectrum of property sectors.
Flipping Properties
Flipping houses is a good option for profit from real estate investment. It means quickly holding onto a new place and reselling it for a higher price. Instead of buying a home to live in as a residence, you’re buying a home as a speculator. Just don’t forget to calculate how much money you may need for renovations, taxes, and other government bureaucracies.
Singapore has a lot to offer! Suppose you have never been to Singapore and would like to visit the city-state before investing there. In that case, you shouldn’t miss these spots: Civic Center, Orchard Road, Marina Bay, Chinatown, Little India, and Arab Quarter, as well as Singapore’s other islands: Sentosa and Pulau Ubin. And, as we want you to focus on enjoying and identifying real estate opportunities, we recommend you look at iVisa.com before getting your flight tickets. This way, you won’t miss out on any travel requirements and can safely request your Singapore Electronic Visa Online.
Have a nice trip! Singapore waits for you.
