As with all large cities, geographical expansion drives land prices up. Consequently, real estate prices, in general, go up. This need to house the growing human population is one of the main reasons real estate prices tend to go up. Singapore is no exception. The high demand for real estate caused a major pricing boom in Singapore during the last decade.
It was not unexpected. Singapore is a small, geographically limited country, without a lot of room for expansion. This town is among the most densely populated areas of the world. The rising demand if fueled not only by the need of Singaporeans to find their own home but with the desire of global companies to set up their business here.
After a few decades of constant growth (1974-2015), marked by several sharp ups and downs, real estate prices in Singapore have stabilized in the past three years. Even more, reports acknowledge a slight fall in prices. Since 2013 Q3, real estate values have been on the decline, which makes up for the longest period of falling prices in Singapore. This has led to a major slowdown in the number of mortgage loans, as well.
This, however, is a good thing, for many reasons. Two major crises’, the Asian Financial Crises of the late 1990’s and the 2008 Financial crises struck upon Singapore heavily. After the second one, real estate prices started to bubble up in Singapore since 2009, almost doubling in size, and everybody is preparing for a burst. The government started to act upon this problem and propose and enact measures to rein in the galloping prices.
The measures which Singaporean government started to enact gave excellent results. Some steps have been prepared to battle the rapid growth of real estate prices. Experts predict that prices will continue to fall in 2017 and 2018.
The measures are still being applied, and this will help young couples and families to buy their own homes. If the prices go down enough, investors will see their interest as well.