facebookYour thoughts on buying investment properties in Singapore? Is the market too small or is it still a good market to have investment properties? - Seedly

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Anonymous

26 Nov 2020

Property

Your thoughts on buying investment properties in Singapore? Is the market too small or is it still a good market to have investment properties?

A lot of people don't like the STI because the Singapore market is too small. Is the case the same for property investing?

AMA Stacked Homes

Discussion (1)

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Ryan Ong

26 Nov 2020

Partner at Stacked Homes

Singapore is still a tried and trusted spot for real estate investment. It's not so much the market size that's the issue, but the Additional Buyers Stamp Duty (ABSD).

12 per cent on the second property, and 15 per cent on the third (assuming you're a citizen), as well as Sellers Stamp Duty, means the old days when you could pick just about any property and "win" are past. Investors today need to be much more discerning.

The other factor is that the rental market is almost wholly dependent on the number of foreigners coming to stay, as few Singaporeans rent. This makes rental prospects more sensitive to factors like economic downturns, when companies may stop bringing in expensive expatriate workers, or slash housing allowances.

To be clear, this is more than made up for by the political stability and clear rule of law here, which makes Singapore one of the safest - if the _the _safest - place to own real estate in SE Asia. Recent difficulties in Hong Kong have also made Singapore investment properties more attractive to some buyers, just as an alternative.

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