We all dream of owning a home. No one wishes to pay rent all their life. A roof over your head is a basic need, hence it is necessary to work towards achieving it. Depending on your financial situation, it’s not easy to have that dream realised. You may decide to either buy or build your home depending on your needs. If you decide to build, well you have the pleasure of creating your design and supervising every step. However, for you to take this route, you must have adequate time at your disposal, to run errands such as buying building materials and checking on the contractors.
The majority of potential homeowners opt to buy due to the inconveniences that come with building their own house. However, you may shy away from buying that dream home you spotted in one of Singapore’s posh neighbourhoods, in the hope that the price tag drops. However, it is more likely that property prices rise instead of fall. Here are a few reasons why.
Demand and supply
All markets are dictated and guided by demand and supply. Whenever there is a need for a commodity or product, the prices are more likely to go up. If demand is low, then the reverse is true. The modern world has given birth to elites who are always willing to take risks, especially in the property market. More and more people are willing to own a home as opposed to renting.
Therefore, this has created an increase in the demand for houses, hence pushing prices up. A larger population not only here in Singapore, but globally, has also created the need for more houses. Over the years, there has been pressure on housing due to the high demand. Developers have taken advantage of the situation to ensure there are adequate housing units for all tastes and choices. The Riverfront Residences Condo is an example of a high-end property targeting potential homeowners looking for a combination of both luxury and affordability.
The economic status of any nation dictates markets such as the property and money markets. A stable economy is a fertile ground for the property market to thrive. If the economy is shaky and unpredictable, the property market suffers and causes a slump in prices. Luckily, Singapore has continued to enjoy a stable and vibrant economy. As a result, property prices have remained high with no sign of dropping soon. Property and financial experts predict that the prices are likely to go higher, which is great news for investors.
Owing to a stable economy and a supportive political environment, foreign investors have confidence in the Singaporean property market. They are willing to take more risks and invest more in the country, allowing the property market to maintain its high price tags. This magnetic attraction is not likely to vanish soon, and it’s unlikely prices will drop soon.
Cost of renting
Renting may appear the cheaper option when compared to buying a home. However, renting is not cheap in Singapore. You’ll spend a fair amount on rent, especially if you’re in a posh estate. The good news is that you will enjoy the neighbourhood as long as you can afford. The bad news is that in case anything happens such as loss of a job or a business, you can no longer sustain such a lifestyle.